粤高速Ｂ:2022年半年度报告（英文版）

Guangdong Provincial Expressway Development Co. Ltd.The Semi-Annual Report 2022

August 2022I. Important Notice Table of Contents and Definitions

The Board of Directors the Supervisory Committee as well as all directors supervisors and senior management

staff of the Company warrant that this Report is factual accurate and complete without any false record

misleading statement or material omission. And they shall be jointly and severally liable for that.Mr.Miao Deshan Company principal Mr. Wang Chunhua General Manager Mr. Lu Ming Chief of the

accounting work Ms.Zhou Fang Chief of the accounting organ (chief of accounting ) hereby confirm the

authenticity and completeness of the financial report enclosed in this Semi-annual report.All the directors have attended the meeting of the board meeting at which this report was examined.The Company has no plan of cash dividends carried out bonus issued and capitalizing of common reserves either.Table of Contents

I.Important Notice Table of contents and Definitions

II. Company Profile & Financial Highlights.III. Management Discussion & Analysis

IV. Corporate Governance

V. Environmental & Social Responsibility

VI. Important Events

VII. Change of share capital and shareholding of Principal Shareholders

VIII. Situation of the Preferred Shares

IX. Corporate Bond

X. Financial ReportDocuments available for inspection

1. Accounting statements carried with personal signatures and seals of legal representative Chief Financial officer

and Financial Principal.

2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures

of certified Public accountants.Definition

Terms to be defined Refers to Definition

Reporting period Refers to January 1 2022 to June 302022

The semi-annual report of the company

Reporting date Refers to was approved by the board of directors

of 2022 that is August 26 2022

YOY Refers to Compared with January-June 2021

The Company /This Company Refers to Guangdong Provincial ExpresswayDevelopment Co.Ltd.Fokai Branch Refers to Guangdong Provincial ExpresswayDevelopment Co.Ltd.Fokai Branch

Guangfo Company Refers to Guangdong Guangfo Expressway Co.Ltd.Guanghui Company Refers to Guangdong Guanghui Expressway Co.Ltd.II. Company Profile & Financial Highlights.

1.Company Profile

Stock abbreviation: Expressway A Expressway B Stock code： 000429200429

Stock exchange for listing Shenzhen Stock Exchange

Name in Chinese 广东省高速公路发展股份有限公司

Abbreviation of Registered

Company (if any) 粤高速

English name (If any) Guangdong Provincial Expressway Development Co.Ltd

English abbreviation (If any) GPED

Legal Representative Miao Deshan

2. Contact person and contact manner

Board secretary Securities affairs Representative

Name Yang Hanming Liang Jirong

46/F Litong Plaza No.32 Zhujiang East 45/F Litong Plaza No.32 Zhujiang East

Contact address Road Zhujiang New City Tianhe Road Zhujiang New City Tianhe

District Guangzhou District Guangzhou

Tel 020-29004619 020-29004523

Fax 020-38787002 020-38787002

E-mail Hmy69@126.com 139221590@qq.com

3. Other

1). Way of contact

Whether registrations address offices address and codes as well as website and email of the Company changed in

reporting period or not

□ Applicable √ Not applicable

Registrations address offices address and codes as well as website and email of the Company has no change in

reporting period found more details in annual report 2021.

2). Information inquiry

Whether information disclosure and preparation place changed in reporting period or not

□ Applicable √ Not applicable

None of the official presses website and place of enquiry has been changed in the semi report period. For details

please find the Annual Report 2021.

3). Other relevant information

Did any change occur to other relevant information during the reporting period?

□ Applicable √ Not applicable

4. Summary of Accounting Data and Financial Indicators

Whether it has retroactive adjustment or re-statement on previous accounting data

□ Yes √No

Reporting period Same period of last year YoY+/-（%）

Operating income（yuan） 2057420809.68 2488474669.81 -17.32%

Net profit attributable to the

shareholders of the listed 773786851.68 848860350.64 -8.84%

company（yuan）Net profit after deducting of

non-recurring gain/loss

attributable to the 743090095.19 842743158.64 -11.82%

shareholders of listed

company（yuan）

Cash flow generated by

business operation net 1443551266.30 1815293217.25 -20.48%（yuan）

Basic earning per

share(yuan/Share) 0.37 0.41 -9.76%

Diluted gains per

share(yuan/Share) 0.37 0.41 -9.76%

Weighted average

income/asset ratio % 8.45% 10.16% -1.71%（）

As at the end of the reporting As at the end of last year YoY+/-（%）

period

Gross assets（yuan） 19737220017.64 18875766799.31 4.56%

Shareholders’ equity

attributable to shareholders of 8549301415.60 8982437985.17 -4.82%

the listed company（yuan）

5. Differences between accounting data under domestic and overseas accounting standards

1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed

in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable

None

2).Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese

accounting standards.□ Applicable √Not applicable

None

6.Items and amount of non-current gains and losses

√Applicable □Not applicable

In RMB

Items Amount Note

Non-current asset disposal

gain/loss(including the write-off part for

which assets impairment provision is 447880.54

made)

Government subsidies recognized in

current gain and loss(excluding those

closely related to the Company’s 7349285.08

business and granted under the state’s

policies)

Net amount of non-operating income and

expense except the aforesaid items 2881455.61

Other non-recurring Gains/loss items 14393329.63

Less :Influenced amount of income tax -8354389.12

Influenced amount of minor

shareholders’ equity (after tax) 2729583.49

Total 30696756.49Details of other profit and loss items that meet the non-recurring profit and loss definition

□ Applicable√ Not applicable

None

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on

information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and

its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure

for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as

recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable

None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information

disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

III. Management Discussion & Analysis

Ⅰ.Main Business the Company is Engaged in During the Report Period

The Company's main business in developing and operating expressway and big bridges. It is one of the main

institutions of developing expressway and big bridge in Guangdong Expressway System. The expressway industry

is the industry helped by government.The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai Expressway Jingzhu

Expressway Guangzhu Section and Guanghui Expressway investment in technological industries

and provision of relevant consultation while investing in

Shenzhen Huiyan Expressway Co. Ltd. Guangdong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao Expre

ssway Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke

Technology Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd.Hunan Lianzhi Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and CMST

Nanjing Intelligent Logistics Technology Co. Ltd.As of the end of the reporting period the company’s share-controlled expressway is 306.78 km and the share-

participation expressway is 295.88 km.II. Analysis On core Competitiveness

The toll revenue of expressway industry mainly depends on the regional economic development. The

regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokaiexpressway controlled by the company are part of the National Expressway Network Planning-“Five vertical andseven horizontal” Jingzhu Expressway Guangzhu Section is a fast and convenient expressway Guanghui

Expressway is an important section of the national key highway-the 15th Hengshanwei to Yunnan Qingshuihe

highway And many of the company’s equity-participation expressways that are part of the main skeleton of the

Guangdong Provincial Expressway Planning-“Ten vertical and five horizontal” which provides a strong

guarantee for stable traffic volume. Meanwhile the regional economy is the critical factor that influences the

traffic volume as Guangdong province is the economically developed region with years’ continuous high growth

of GDP so that provides the stable rising demand for the company.III. Main business analysis

Ⅰ. General

Whether the same as the main business disclosure engaged in the company during the reporting period

□ Yes √No

Volume of vehicle traffic Toll income in Toll income in the first half year Increase

in the first half year of the first half year of 2022（Ten thousand） /Decrease(%）

2022 of 2022

Guangfo Expressway 36349485 -4.69% 6478.10 -69.88%

Fokai Expressway 37500754 -8.92% 63696.56 -7.31%

Jingzhu Expressway

Guangzhu East Section 27536144 -21.64% 43747.12 -20.00%

Guanghui Expressway 36098312 -7.20% 88041.38 -11.22%

Huiyan Expressway 21272389 -17.25% 9689.71 -16.91%

Yuezhao Expressway 16371410 -11.35% 22496.53 -14.39%

Jiangzhong 26079442 -20.08% 17686.08 -24.39%

9Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Volume of vehicle traffic Toll income in Toll income in the first half year Increase

in the first half year of the first half year of 2022（Ten thousand） /Decrease(%）

2022 of 2022

Expressway

Guangle Expressway 18846126 -4.96% 154513.17 -5.50%

Kangda Expressway 590955 -20.49% 13786.32 -8.14%

Gangkang Expressway 1917372 -21.25% 9019.62 -8.89%

Note：Guangfo Expressway stopped toll collection from 00:00 on March 3 2022.During the reporting period the traffic flow from January to April declined by varying degrees due to the

slowdown in economic growth the epidemic prevention and control measures in Shenzhen Dongguan and

Zhuhai in Guangdong Province the extreme weather and other factors. The traffic volume of Guanghui

Expressway and Jingzhu Expressway Guangzhu Section that are the Company's holdings-are adjacent to

Shenzhen and Dongguan decreased significantly. With the effective control to the epidemic in May the Dragon

Boat Festival holiday and the college entrance examination and the senior high school entrance examination

ended the willingness of the masses for travel has increased and the traffic flow of various sections has shown

a trend of recovery.Year-on-year change of main financial data

In RMB

This report period Same period last

YOY

year change Cause change

（%）

Guangfo Expressway stopped toll

collection from 00:00 on March 3

2022 and the tolls decreased YOY; due

Operating income 2057420809.68 2488474669.81 -17.32% to the impact of the epidemic the

traffic flow on the expressway

decreased YOY and the tolls decreased

YOY.Fokai Expressway had adjust extended

the toll period since June last year and

in the first half of 2022 the

Operating cost 696143722.50 889127742.43 -21.70% depreciation of Fokai Expressway had

decreased YOY; the decline in toll

revenue had led to a decline in road

depreciation.Administrative

expenses 85773267.04 93357035.39 -8.12%

The double impact of the YOY decline

Financial expenses 87302056.62 120868584.07 -27.77% in borrowings and the decline in

interest rates.Income tax expenses 290240426.63 354025065.47 -18.02%

Mainly due to the labor costs and relate

d expenses of project developers such a

s "Research on the Unattended System

of Expressway Smart Toll Stations" "R

R & D Investment 1368887.22

esearch and Development of Key Tech

nologies for Remixed In-

Place Heat Regeneration in Expresswa

y Covered and Overpaved Roads" etc.Cash flow generated by Mainly due to the decline in toll

business operation net 1443551266.30 1815293217.25 -20.48% revenue.Net cash flow

generated by Dispose of 100% equity of Guangdong-274972125.19 -158820398.94 -73.13%

investment Expressway Technology Investment

10Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Co. Ltd. the cash dividends of the

participating companies

are distributed earlier than the same pe

riodand the new external equity

investment in this period.Mainly due to the payment of the

remaining 21% equity purchase

Net cash flow payment of Guangdong Guanghui

generated by financing -80767682.59 -936574211.78 91.38% Expressway Co. Ltd. in the same

period last year but there was none of

this in this year.The combined effect of operating

Net increasing of cash

1087811458.52 719898606.53 51.11% activities investment activities and

and cash equivalents

financing activities.Major changes to the profit structure or sources of the Company in the reporting period

□ Applicable √Not applicable

None.Component of Business Income

In RMB

This report period Same period last year

Increase /decrease

Amount Proportion Amount Proportion

Total operating

2057420809.68100%2488474669.81100%-17.32%

revenue

Industry

Highway

transportations 2019631631.41 98.16% 2440717934.74 98.08% -17.25%

Other 37789178.27 1.84% 47756735.07 1.92% -20.87%

Product

Highway

transportations 2019631631.41 98.16% 2440717934.74 98.08% -17.25%

Other 37789178.27 1.84% 47756735.07 1.92% -20.87%

Area

Guangfo

Expressway 64781007.00 3.15% 215068229.34 8.64% -69.88%

Fokai Expressway 636965610.55 30.96% 687165042.12 27.61% -7.31%

Jingzhu

Expressway 437471193.16 21.26% 546816777.61 21.98% -20.00%

Guangzhu Section

Guanghui

Expressway 880413820.70 42.79% 991667885.67 39.85% -11.22%

Other 37789178.27 1.84% 47756735.07 1.92% -20.87%

Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit

with Profit over 10%

√ Applicable □Not applicable

In RMB

Increase/decrea Increase/decrea Increase/decrea

Gross se of revenue in se of business se of gross

Turnover Operation cost profit the same period cost over the profit rate over

rate(%) of the previous same period of the same period

year(%) previous year of the previous(%) year (%)

Industry

Highway

2019631631.41678568987.9966.40%-17.25%-21.12%1.65%

transportations

Product

11Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Highway

2019631631.41678568987.9966.40%-17.25%-21.12%1.65%

transportations

Area

Fokai

Expressway 636965610.55 248227488.15 61.03% -7.31% -31.90% 14.07%

Jingzhu

Expressway

Guangzhu 437471193.16 144124522.57 67.06% -20.00% -1.95% -6.06%

Section

Guanghui

Expressway 880413820.70 269464772.31 69.39% -11.22% -11.66% 0.15%

Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main

business based on latest on year’s scope of period-end.□ Applicable √Not applicable

Any over 30% YoY Movements in the data above and why

√ Applicable □ Not applicable

1. According to the informal letter No. 24-[2022] Yue Transportation Operation-"Notice of the Department

of Transportation of Guangdong Province on Issues Concerning the Expiration of Toll Collection of Guangfo

Expressway" issued by Guangdong Provincial Department of Transportation Guangfo Expressway shall stop

toll collection from 0:00 on March 3 2022. The operating income of Guangfo Company had dropped by

69.88% YOY.

2. The toll period of Fokai Expressway has been extended since June last year. In the first half of 2022 the

depreciation of Fokai Expressway decreased YOY. Meanwhile the toll revenue declined and the road property

depreciation also decreased. To sum up the operating cost of Fokai Branch decreased by 31.90% YOY.IV. Non-core business analysis

√ Applicable □Not applicable

In RMB

Amount Ratio in totalprofit Note Whether be sustainable

Except for the disposal gains

It is due to the operation

Investment obtained from the disposal of

162384354.53 12.01% accumulation of participant

Income subsidiaries others were

companies

sustainable.Non-

operating Mainly insurance claims and road5821631.65 0.43% Not sustainable

income property claims

Non-

operating 2955659.39 0.22% Mainly road property repair expenses Not sustainable

expenses

Mainly is amortization and

Other income 8178352.38 0.61% cancellation of provincial boundary Sustainable

Toll station subsidies.V. Condition of Asset and Liabilities

1.Condition of Asset Causing Significant Change

In RMB

End of Reporting period End of same period of last year Change in Reason for

Amount As a percentage As a

percentage significant

of total Amount percentage of (%) change

12Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

assets(%) total assets(%)

Monetary fund 4044215849.0 20.49% 2956404390.55 15.66% 4.83%

Accounts

receivable 125230522.84 0.63% 159053399.87 0.84% -0.21%

Contract assets 5286462.45 0.03% -0.03%

Inventories 640079.66 0.00% 0.00%

Investment real

estate 2778704.17 0.01% 2889263.41 0.02% -0.01%

Long-term

equity 2820130077.4 14.29% 2627130681.24 13.92% 0.37%

investment 0

Fixed assets 10148446100. 51.42% 10639272192.02 56.36% -4.94%

Construction in

process 475554879.75 2.41% 351130455.06 1.86% 0.55%

Use right assets 8937861.63 0.05% 14100325.01 0.07% -0.02%

Shore-term

loans 320266666.67 1.62% 1.62%

Contract

liabilities 22000.00 0.00% 0.00%

Long-term 4534385100.0

borrowing 22.97% 4572621200.00 24.22% -1.25%0

Lease liabilities 222305.08 0.00% 2773459.76 0.01% -0.01%

2.Main assets overseas

□ Applicable √Not applicable

3.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

13Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

In RMB

Gain/Loss on fair Cumulative fair Impairment Sold

Items Opening amount value change in value change provisions in

Purchased amount in Other

the reporting recorded into the reporting amount in the the chang Closing amount

period equity period reporting period reporting eperiod

Financial assets

1. Trading financial assets (excluding derivative

91000000.0091000000.00

financial assets

4.Other equity instrument investment 1577175826.05 208999143.47 1524908322.00

Subtotal of financial assets 1577175826.05 208999143.47 91000000.00 1615908322.00

Total of the above 1577175826.05 208999143.47 91000000.00 1615908322.00

Financial liabilities 0.00 0.00

Other change

Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?

□ Yes √No

14Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

3. Assets right restriction till end of reporting period

The balance of restricted bank deposits at the end of the period was RMB 1221200.00 which was the land reclamation fund deposited into the fund custody account

for the reconstruction and expansion project of sanbao to shuikou section of Fokai Expressway.VI. Investment situation

1. General

√ Applicable □ Not applicable

Current Investment Amount(Yuan) Same period of last year (Yuan) Change rate

250000000.000.000.00%

2.Condition of Acquiring Significant Share Right Investment during the Report Period

□ Applicable √ Not applicable

3.Situation of the Significant Non-equity Investment Undergoing in the Report Period

□ Applicable √ Not applicable

4.Investment of Financial Asset

（1）Securities investment

√ Applicable □ Not applicable

15Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

In RMB

Purch Sale

Stock Mode of Book value

Changes ase amou Sour

Security Securit Initial investment accounting balance at the in fair Cumulative fair amou nt in Book value balance ces

category y code Abbreviati cost measureme beginning of the value of value changes in nt in the

Gain/loss of the Accounti

reporting period at the end of the ng items ofon: nt reporting period the this equity the this reporting period fundperiod this perio s

period d

Other

equity

Domestic and

foreign stocks 601818

Everbright instrumen

Bank 517560876.80 FVM 781046414.08 190556504.64 47286243.74 708117381.44 Selft

investme

nts

Total 517560876.80 -- 781046414.08 0.00 190556504.64 0.00 0.00 47286243.74 708117381.44 -- --

Disclosure Date of Announcement on

Securities Investment Approved by the July 222009

Board of Directors

Disclosure Date of Announcement on

Securities Investment Approved by the August 72009

Shareholders Meeting(If any)

16Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

（2）Investment in Derivatives

□ Applicable √ Not applicable

The Company had no investment in derivatives in the reporting period.

5.Application of the raised capital

□ Applicable √ Not applicable

The Company had no application of the raised capital in the reporting period.VII. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable

The Company had no sales of major assets in the reporting period.

2.Sales of major equity

□ Applicable √ Not applicable

17Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

VIII. Analysis of the Main Share Holding Companies and Share Participating Companies

√ Applicable □ Not applicable

Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company

In RMB

Company Company

Name type Leading products and services

Registered

capital Total assets Net assets Operating Income Operating profit Net Profit

Jingzhu

Expresswa The operation and management of

y Guangzhu Expressway and provision

Guangzhu Subsidiary of supporting services including

RMB 580 2193057129.55 850830359.39 452938785.68 259757572.13 193087643.23

Section fueling salvage and supply of parts

million

Co. Ltd. and components

Investment in and construction of

Guanghui Expressway Co. Ltd. and

Guangdong supporting facilities the toll collection

Guanghui Sharing and maintenance management of

Expresswa company Guanghui Expressway The Guanghui

RMB 2.352

billion 4679611380.04 4138588813.90 893298497.64 625554983.27 469177363.59

y Co. Ltd. Expressway's supporting gas stationsalvation vehicle maintenance vehicle

transport catering warehousing

investment and development

18Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Subsidiaries obtained or disposed in the reporting period

√ Applicable □ Not applicable

Way of acquiring and disposing of

Company name subsidiary corporations within the Impact on the whole producing operation

reporting period and performance

This transaction does not have a

significant impact on the overall

Guangdong Expressway Technology

Sales production and operation of the

Investment Co. Ltd.company and increases the company's

current net profit by 24.89 million yuan.Particulars about the Mutual holding companies

1. According to the informal letter No. 24-[2022] Yue Transportation Operation-"Notice of the Department

of Transportation of Guangdong Province on Issues Concerning the Expiration of Toll Collection of Guangfo

Expressway" issued by Guangdong Provincial Department of Transportation Guangfo Expressway shall stop toll

collection from 0:00 on March 3 2022. Retain the existing toll facilities and operate as usual in a zero-rate

manner exempt vehicle tolls for all vehicles passing this road section and collect vehicle tolls on behalf for other

road sections. After the toll collection is stopped Guangfo Expressway Co. Ltd shall continue to be responsible

for the management and maintenance of Guangfo Expressway.IX．Structured vehicle controlled by the Company

□ Applicable √ Not applicable

X. Risks facing the Company and countermeasures

The company’s profits mainly come from the expressway tolls revenue and the toll charging standards shall

be examined by the traffic authority of the provincial autonomous region and the direct-controlled municipality

people’s governments together with the same-level pricing authority and then submitted to the same-level

people’s government for approval. Therefore the charging price adjustment trend and the possibility of the

charging price adjustment upon rising of the commodity price and the company cost in the future are still subject

to relevant national policies and the approval of the governmental department. And the company can’t adjust the

charging standards promptly based on its own operation cost or the market supply-demand changes. In conclusion

the charging policies change and the charging standards adjustment have the influence on the expressway business

of the company to some extent.

19Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

IV. Corporate Governance

I. Annual General Meeting and Provisional Shareholders’Meetings in the Reporting Period

1.Annual General Meeting

Investor

Meeting Type participation Convened Disclosuredate date Index to disclosed informationratio

1.The meeting examined and adopted the

Proposal Concerning Final Accounting Report for

2021.2.The meeting examined and adopted the

Proposal Concerning Preplan for Profit

Distribution for 2021.3. The meeting examined

and adopted the Proposal Concerning Overall

budget report of the Company for 2022.4.The

meeting examined and adopted the Work Report

of the Board of Directors for 2021.5.The meeting

examined and adopted the Work Report of the

2021 Annual supervisory Committee for 2021.6.The meeting

Shareholders’ Sharehold May examined and adopted Annual Report for 2021

general ers’ 66.50% May 182022172022 and its summary.7. The meeting examined and

meeting General adopted the Proposal for Hiring the 2022 AnnualMeeting Financial Report Audit Agency.8. The meeting

examined and adopted the Proposal for Hiring the

2022 Internal Control Audit Institution.9.The

meeting examined and adopted the Proposal

regarding the election of Mr. Kuang Yu

as director of the ninth board of directors of the C

ompany.10.The meeting examined and adopted

the Proposal regarding the election of Ms. Wang

Xiaobing as Supervisor of the ninth board of

supervisors of the Company.

2. Preferred shareholders with the restoration of voting rights made a request for the Special Meeting of

Shareholders

□ Applicable √ Not applicable

II. Change in shares held by directors supervisors and senior executives

√ Applicable □Not applicable

Name Positions Types Date Reason

Huang Hai Director Left February 242022 Job change

Zheng Renfa Chairman Left April 262022 Job change

Cheng Rui Deputy General Dismiss June 172022 Job change

Elected by the

Kuang Yu Director Elected May 172022 shareholders' general

meeting

Elected by the

Wang Xiaobing Supervisor Elected May 172022 shareholders' general

meeting

III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period

□ Applicable √ Not applicable

The Company planned not to distribute cash dividend and bonus share and not to convert capital reserves into

share capital in half year.

20Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

IV. Implementation of any equity incentive plan employee stock ownership plan or other incentive

measures for employees

□ Applicable √ Not applicable

None.

21Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

V. Environmental & Social Responsibility

I. Significant environmental issues

Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities

□ Yes √ No

Administrative penalties for environmental problems during the reporting period

Impact on the

Company or Reason of Violation of Company's

subsidiary name punishment regulations Punishment result

production and

operation of listed rectification

companies measures

No No No No No No

Other environmental information that should be disclosed

None

Measures and effects taken to reduce its carbon emissions during the reporting period

□Applicable √ Not applicable

Reasons for not disclosing other environmental information

None

II. Social responsibilities

In the first half of 2022 the Company actively fulfilled its social responsibilities strived to overcome the

adverse impact of the epidemic strictly implemented the requirements of local epidemic prevention and control

and did a good job in ensuring the safety of road sections.

1. In order to do well in epidemic prevention and control the Company's participation and holding expressway

companies actively responded to higher-level policies and the Company's party committee and management

team actively mobilized volunteers from the party and labor groups to participate in the epidemic prevention

and control work effectively promoted the normalized epidemic prevention and control work.

2. The policy of exempting tolls for passenger cars with less than seven seats and by intermittent free release

and the preferential policies for green passages will continue to be implemented on major holidays and soundly

implemented that "knowledge is in place personnel are in place responsibilities are in place and measures are

in place" to successfully complete the various tasks of ensuring safety and smooth flow.

3. Actively responded to government policies provided preferential reduction and exemption of vehicle tolls in

accordance with laws and regulations for reducing corporate transportation costs and public travel costs.

4. Well performed in road condition detection inquiries and responses from drivers and passengers and

smoothed road surface protection after the toll collection of Guangfo Expressway was stopped.

22Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

VI. Important Events

I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of

the reporting period made by the company shareholder actual controller acquirer director supervisor

senior management personnel and other related parities.□ Applicable √Not applicable

There is no commitment that has not been fulfilled by actual controller shareholders related parties acquirers

of the Company

II. Particulars about the non-operating occupation of funds by the controlling shareholder

□ Applicable √ Not applicable

None

III. Illegal provision of guarantees for external parties

□ Applicable √ Not applicable

None

IV. Engagement and disengagement of CPAs firm

Whether the semi-annual financial report has been audited

□ Yes √ No

The semi-annual financial report of the Company has not been audited

V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of

directors and supervisory board

□ Applicable √ Not applicable

VI. Notes for the related information of“non-standard audit reports” last year by board of directors

□ Applicable √ Not applicable

VII. Bankruptcy and restructuring

□ Applicable √ Not applicable

No such cases in the reporting period.

23Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

VIII. Litigations and arbitrations

Significant litigations and arbitrations

□ Applicable √ Not applicable

No such cases in the reporting period.Other lawsuits

□ Applicable √ Not applicable

IX. Punishments and rectifications

□ Applicable √ Not applicable

X. Credit conditions of the Company as well as its controlling shareholder and actual controller

□ Applicable √ Not applicable

XI.Material related transactions

1. Related transactions in connection with daily operation

□ Applicable √ Not applicable

No such cases in the reporting period.

2. Related-party transactions arising from asset acquisition or sold

□Applicable √ Not applicable

No such cases in the reporting period.

3. Related-party transitions with joint investments

□Applicable √ Not applicable

No such cases in the reporting period.

4. Credits and liabilities with related parties

□Applicable √ Not applicable

No such cases in the reporting period.

5. Transactions with related finance company especially one that is controlled by the Company

√ Applicable □Not applicable

Deposit business

Related party Relationship Maximum Deposit Beginning The amount incurred Ending

daily deposit interest rate balance balancelimitd（Ten range （Ten Total deposit Total amount （Tenthousand thousand amount of withdrawn in thousandyuan） yuan） the current the current yuan）period（Ten period（Tenthousand thousandyuan） yuan）

Guangdong

Communicati Controlled

ons Group by the same 0.35%-parent 300000 152100.35 113736.7 0 265837.05Finance Co. 2.85%

Ltd company

Loan business

24Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Related party Relationship Beginning The amount incurred Ending

balance balance

（Ten TotalLoan limit Total loan

（TenLoant thousand repaymentamount for thousand（Ten interest rate yuan） amount of yuan）thousand the currentrange this periodyuan） period（Ten （Tenthousand

thousandyuan）yuan）

Guangdong

Communicati Controlled

ons Group by the sameparent 400000 3%-3.75% 20000 32000 100 51900Finance Co.Ltd company

Credit extension or other financial servicesRelated party Relationship Business type Total amount（Ten Actual amount incurredthousand yuan）（Ten thousandyuan）

Guangdong

Communications Controlled by the same

Group Finance Co. parent company Credit extension 220000 51900

Ltd

6. Transactions with related finance company controlled by the Company

□ Applicable √ Not applicable

No such cases in the reporting period.

7. Other significant related-party transactions

√ Applicable □Not applicable

1. The "Proposal on the Transfer of 100% Equity of the Wholly-owned Subsidiary-GuangdongExpressway Technology Investment Co. Ltd” was reviewed and approved in the 27th meeting of the ninth

board of directors of the Company. It’s agreed that the Company will transfer 100% of the equity of Guangdong

Expressway Technology Investment Co. Ltd to Guangdong Litong Technology Investment Co. Ltd by means

of non-public agreement transfer based on the asset evaluation results that have been filed as the pricing basis.The transfer price is 50623900 yuan. It’s authorized the management team of the Company to handle matters

related to this equity transfer.

2. The "Proposal on the Company's Expected Routine Connected Transactions in 2022" was reviewed and

approved in the twenty-seventh meeting of the ninth board of directors of the Company and agreed to the

Company's headquarters branches and wholly-owned and controlled subsidiaries’ expected routine connected

transactions in 2022 with the transaction amount totaled in 69034100 yuan.The website to disclose the interim announcements on significant related-party transactions

Description of provisional announcement Date of disclosing provisional Description of the website for disclosingannouncement provisional announcements

Announcement of Resolutions of the

27th (Provisional) Meeting of the Ninth March 162022 www.cninfo.com.cn

Board of Directors

Estimates announcement of the Daily

March 162022 www.cninfo.com.cn

Related Party Transaction of 2022

Announcement of related party

March 162022 www.cninfo.com.cn

transaction

25Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

XII. Significant contracts and execution

1.Entrustments contracting and leasing

（1）Entrustment

□Applicable √ Not applicable

No such cases in the reporting period.

（2）Contracting

□Applicable √ Not applicable

No such cases in the reporting period.

（3）Leasing

□Applicable √ Not applicable

No such cases in the reporting period.

2.Significant Guarantees

□Applicable √ Not applicable

No such cases in the reporting period.

3. Finance management on commission

□Applicable √ Not applicable

No such cases in the reporting period.

4. Other significant contract

□ Applicable √ Not applicable

No such cases in the reporting period.XIII. Explanation on other significant events

□ Applicable √ Not applicable

No such cases in the reporting period.XIV. Significant event of subsidiary of the Company

√ Applicable □Not applicable

Guangdong Provincial Expressway Development Co. Ltd received the informal letter No. 24-[2022] Yue

Transportation Operation-"Notice of the Department of Transportation of Guangdong Province on Issues

Concerning the Expiration of Toll Collection of Guangfo Expressway" issued by Guangdong Provincial

Department of Transportation" with the main content as follows:

1. Guangfo Expressway shall stop toll collection from 0:00 on March 3 2022 retain the existing toll facilities

and operate as usual in a zero-rate manner exempt vehicle tolls for all vehicles passing this road section and

collect vehicle tolls on behalf for other road sections.

2. After the toll collection is stopped Guangfo Expressway Co. Ltd shall continue to be responsible for

the management and maintenance of Guangfo Expressway.Guangfo Expressway Co. Ltd is a holding subsidiary to the Company and the Company holds 75% of its

equity. The Company and Guangfo Company will conduct timely inspection maintenance and management of

Guangfo Expressway and its ancillary facilities as well as communication monitoring network toll collection

and other systems in strict accordance with the national and provincial standards and specifications thus to

ensure that they are in good technical conditions and to ensure the order of network toll collection operation. It

26Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

will do a good job in traffic flow monitoring and traffic guidance after the toll collection of Guangfo

Expressway is stopped and will provide high-quality services for passing vehicles and personnel.Notice on Issues Concerning the Expiration of Toll Collection of Guangfo Expressway

Date of disclosing

Description of provisional announcement provisional Description of the website for disclosing

announcement provisional announcements

Notice on Issues Concerning the Expiration of

Toll Collection of Guangfo Expressway 2022-02-23 www.cninfo.com.cn

27Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

VII. Change of share capital and shareholding of Principal Shareholders

I. Changes in share capital

1. Changes in share capital

In shares

Before the change Increase/decrease（+，-） After the ChangeAmount Proportion Capit

Bo alizat

Shar nu ion of

e s com

allot sh mon Other Subtotal Quantity

Proportio

ment ar reser

es ve

fund

1.Shares with conditional

subscription 439254717 21.01% -421322 -421322 438833395 20.98%

1.State-owned shares 410105738 19.61% 0 0 410105738 19.61%

2.State-owned legal person

shares 21712738 1.04% 0 0 21712738 1.04%

3.Other domestic shares 7436241 0.36% -421322 -421322 7014919 0.33%

Including：Domestic Legal

person shares 6863511 0.33% -319575 -319575 6543936 0.31%

Domestic natural person

shares 572730 0.03% -101747 -101747 470983 0.02%

4.Foreign shares 0 0.00% 0 0 0 0.00%

Including：Foreign legal

person shares 0 0.00% 0 0 0 0.00%

Foreign natural person

shares 0 0.00% 0 0 0 0.00%

II.Shares with unconditional

subscription 1651551409 78.99% 421322 421322 1651972731 79.02%

1.Common shares in RMB 1302902734 62.32% 421322 421322 1303324056 62.34%

2.Foreign shares in domestic

market 348648675 16.68% 0 0 348648675 16.68%

3.Foreign shares in foreign

market 0 0.00% 0 0 0 0.00%

4.Other 0 0.00% 0 0 0 0.00%

III. Total of capital shares 2090806126 100.00% 0 0 2090806126 100.00%

Reasons for share changed

□Applicable √Not applicable

Approval of Change of Shares

□Applicable √Not applicable

Ownership transfer of share changes

□Applicable √Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable

to common shareholders of Company in latest year and period

□Applicable √Not applicable

Other information necessary to disclose for the company or need to disclosed under requirement from security

regulators

□Applicable √Not applicable

Progress on any share repurchase:

□ Applicable √ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable

28Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

to common shareholders of Company in latest year and period

□ Applicable √ Not applicable

Other information necessary to disclose for the company or need to disclosed under requirement from security

regulators

□ Applicable √Not applicable

2. Change of shares with limited sales condition

√ Applicable □Not applicable

In shares

Initial Number of

Number of Restricte

Shareholder Name Restricted Unrestricted

Increased d Shares

Shares This Restricted in the

Reason for Date of Restriction

Shares Shares End of Restricted Shares RemovalTerm This Term the Term

Kong Lingbin and other 35 Share reform

shareholders 99797 99797 0 0 January 192022restricted share

Foshan Shunde Yunlong Share reform

Development Co. Ltd. 319575 319575 0 0 January 192022restricted share

Outgoing executives

Du Jun 7800 1950 5850 January 42022

locked up shares

Total 427172 421322 0 5850 -- --

II. Securities issue and listing

□ Applicable √Not applicable

III. Shareholders and actual controlling shareholder

1. Number of shareholders and shareholding

In Shares

Total number of common Total number of preferred shareholders

shareholders at the end of the 47944 that had restored the voting right at the end 0

reporting period of the reporting period (if any) (note 8)

Particulars about shares held above 5% by shareholders or top ten shareholders

Proporti Number of share

Nature of on of Number of Changes in Amount of Amount of un- pledged/frozen

Shareholders sharehold shares shares held at reporting restricted restricted shares

er held period -end period shares held held State of Amo

% share unt（）

Guangdong State-

Communication ownedlegal 24.56% 513485480 410105738 103379742Group Co.Ltd person

Guangdong Highway State-

Construction Co. ownedlegal 22.30% 466325020 466325020Ltd person

Shangdong

Expressway State-

Investment ownedlegal 9.68% 202429149 202429149Development Co.Ltd. person

Tibet Hetai State-

Enterprise owned

legal 4.84% 101214574 101214574Management Co.Ltd. person

Guangdong State- 2.53% 52937491 19582228 33355263

29Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Provincial Freeway owned

Co.Ltd. legal

person

Domestic

Feng Wuchu naturalperson 1.04% 21646105 58134 21646105

Overseas

HKSCC legal 0.87% 18112455 -1417176 18112455

person

Happy life insurance

Co. Ltd.-Dividend Other 0.81% 16928878 86400 16928878

China Life Insurance

Co. Ltd.－Dividend

－Personal dividend Other 0.75% 15640085 -222080 15640085

-005L-FH002 Shen

Overseas

Xinyue Co. Ltd. legal 0.63% 13201086 13201086

person

Strategic investor or general legal

person becoming top-10 ordinary

shareholder due to rights issue (if None

any) (see note 3)

Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway

Related or acting-in-concert Construction Co. Ltd.，Guangdong Provincial Freeway Co.Ltd. and Xinyue Co. Ltd. It is unknownparties among shareholders above whether there is relationship between other shareholders and whether they are persons takingconcerted action specified in the Regulations on Disclosure of Information about Change in

Shareholding of Shareholders of Listed Companies.Above shareholders entrusting or

entrusted with voting rights or None

waiving voting rights

Top 10 shareholders including the

special account for repurchase (if None

any) (see note 10)

Shareholding of top 10 shareholders of unrestricted shares

Name of the shareholder Quantity of unrestricted shares held at the end of

Share type

the reporting period Share type Quantity

Guangdong Highway

Construction Co. Ltd 466325020 RMB Common shares 466325020

Shangdong Expressway

Investment Development Co. Ltd. 202429149 RMB Common shares 202429149

Guangdong Communication

Group Co.Ltd 103379742 RMB Common shares 103379742

Tibet Hetai Enterprise

101214574 RMB Common shares 101214574

Management Co. Ltd.Guangdong Provincial Freeway

Co.Ltd. 33355263 RMB Common shares 33355263

RMB Common shares 19187242

Feng Wuchu 21646105 Foreign shares placed

2458863

in domestic

HKSCC 18112455 RMB Common shares 18112455

Happy life insurance Co. Ltd.-

Dividend 16928878 RMB Common shares 16928878

China Life Insurance Co. Ltd.－

Dividend－Personal dividend - 15640085 RMB Common shares 15640085

005L-FH002 Shen

Foreign shares placed

Xinyue Co. Ltd. 13201086 13201086

in domestic

Explanation on associated Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway

relationship or consistent action

among the top 10 shareholders of Construction Co. Ltd. ，Guangdong Provincial Freeway Co.Ltd. and Xinyue Co. Ltd. It isnon-restricted negotiable shares unknown whether there is relationship between other shareholders and whether they are persons

and that between the top 10 taking concerted action specified in the Regulations on Disclosure of Information about Change in

shareholders of non-restricted Shareholding of Shareholders of Listed Companies.

30Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

negotiable shares and top 10

shareholders

Top 10 ordinary shareholders

conducting securities margin None

trading (if any) (see note 4)

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-

back agreement dealing in reporting period.□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company

have no buy –back agreement dealing in reporting period.IV. Changes in shareholdings of directors supervisors and executive officers

□ Applicable √Not applicable

There was no change in shareholding of directors supervisors and senior management staffs for the specific

information please refer to the 2021 Annual Report

V. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period

□ Applicable √ Not Applicable

There was no any change of the controlling shareholder of the Company in the reporting period.Change of the actual controller in the reporting period

□ Applicable √ Not applicable

There was no any change of the actual controller of the Company in the reporting period.

31Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

VIII. Situation of the Preferred Shares

□Applicable √Not applicable

The Company had no preferred shares in the reporting period

32Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

IX. Corporate Bond

√Applicable □ Not applicable

I. Enterprise bond

□ Applicable √ Not applicable

No such cases in the reporting period.II. Corporate bond

□ Applicable √ Not applicable

No such cases in the reporting period.

33Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

III. Debt financing instruments of non-financial enterprises

√Applicable □ Not applicable

1.Basic information

In RMB

Inte

Bond name Bond shortname Bond code Issue day Value date Due day Bond balance rest Servicing way

Tradin

rate g

Guangdong Provincial 19 Due payments once a

Expressway Developme Guangdong year The principal and the las Interba

nt Co. Ltd. 2019 first p Expressway 101900252 February 272019 March 12019 March 12024 679249314.45 4% t instalment interest are paid in nk mar

hase medium-term notes MTN001 one lump sum on the redempti keton date.Guangdong Provincial 20 Due payments once a

Expressway Developme Guangdong year The principal and the las Interba

nt Co. Ltd. 2020 first p Expressway 102000367 March 132020 March 172020 March 172025 748654443.53 3% t instalment interest are paid in nk mar

hase medium-term notes MTN001 one lump sum on the redempti keton date.Overdue and unpaid bonds

□ Applicable √ Not applicable

2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor

□ Applicable √ Not applicable

3.Adjustment of credit rating results during the reporting period

□ Applicable √ Not applicable

4 The implementation and changes of guarantee debt repayment plan and other debt repayment guarantee measures during the reporting period and their impact on

the rights and interests of bond investors

□ Applicable √ Not applicable

34Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

IV. Convertible bond

□ Applicable √ Not applicable

No such cases in the reporting period

V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net

assets at the end of the previous year

□ Applicable √ Not applicable

VI. Main accounting data and financial indicators of the Company in recent two years by the end of the

reporting period

In RMB10000

Items At the end of the At the end of lastreporting period year At the same time rate of change

Current ratio 1.66 2.70 -38.52%

Debt ratio 44.89% 40.02% 4.87%

Quick ratio 1.66 2.70 -38.52%

Amount of this Amount of last

period period At the same time rate of change

Net profit after deducting non-recurring

profit and loss 74309.01 84274.32 -11.82%

EBITDA total debt ratio 29.29% 30.89% -1.60%

Time interest earned ratio 11.94 11.13 7.28%

Cash interest guarantee times 12.62 12.29 2.69%

EBITDATime interest earned ratio 15.96 15.46 3.23%

Repayment of debt (%) 100.00% 100.00% ——

Payment of interest (%) 100.00% 100.00% ——

35Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

X. Financial Report

I. Audit report

Has this semi-annual report been audited?

□Yes √No

The semi-annual report was not audited.II. Financial statements

Currency unit for the statements in the notes to these financial statements: RMB

1. Consolidated balance sheet

Prepared by: Guangdong Provincial Expressway Development Co. Ltd.June 302022

In RMB

Items June 302022 January 12022

Current asset：

Monetary fund 4044215849.07 2956404390.55

Settlement provision

Outgoing call loan

Transactional financial assets

Derivative financial assets

Notes receivable

Account receivable 125230522.84 159053399.87

Financing of receivables

Prepayments 5721764.07 5227647.09

Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts

receivable

Other account receivable 13847533.70 13761124.23

Including：Interest receivable

Dividend receivable 1205472.90 1205472.90

Other receivable 12642060.80 12555651.33

Repurchasing of financial assets

Inventories 640079.66

Contract assets 5286462.45

Assets held for sales

Non-current asset due within 1 year 3413274.50 2782974.53

Other current asset 22047193.48 21213.96

Total of current assets 4214476137.66 3143177292.34

Non-current assets：

Loans and payment on other’s behalf

disbursed

Creditor's right investment

Other creditor's right investment

Long-term receivable

Long term share equity investment 2820130077.40 2627130681.24

36Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Items June 302022 January 12022

Other equity instruments investment 1524908322.00 1577175826.05

Other non-current financial assets 91000000.00

Property investment 2778704.17 2889263.41

Fixed assets 10148446100.45 10639272192.02

Construction in progress 475554879.75 351130455.06

Production physical assets

Oil & gas assets

Use right assets 8937861.63 14100325.01

Intangible assets 256314659.97 268504176.43

Development expenses

Goodwill

Long-germ expenses to be amortized 2103750.00

Deferred income tax asset 170626707.99 225243885.27

Other non-current asset 24046566.62 25038952.48

Total of non-current assets 15522743879.98 15732589506.97

Total of assets 19737220017.64 18875766799.31

Current liabilities

Short-term loans 320266666.67

Loan from Central Bank

Borrowing funds

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 133068489.27 264487139.44

Advance receipts 3744384.23 10660208.51

Contract liabilities 22000.00

Selling of repurchased financial assets

Deposit taking and interbank deposit

Entrusted trading of securities

Entrusted selling of securities

Employees’ wage payable 19696314.69 19213631.91

Tax payable 136183035.82 164612512.99

Other account payable 1454190361.08 177970483.76

Including：Interest payable

Dividend payable 1312635476.59 22941943.24

Other payable 141554884.49 155028540.52

Fees and commissions payable

Reinsurance fee payable

Liabilities held for sales

Non-current liability due within 1 year 469749328.35 525644368.26

Other current liability 1133695.05 726336.48

Total of current liability 2538032275.16 1163336681.35

Non-current liabilities：

Reserve fund for insurance contracts

Long-term loan 4534385100.00 4572621200.00

Bond payable 1427903757.98 1427434086.58

Including：preferred stock

Sustainable debt

Lease liability 222305.08 2773459.76

Long-term payable 2517493.12 3461832.74

Long-term remuneration payable to staff

Expected liabilities

Deferred income 69833092.84 69228093.11

Deferred income tax liability 286609571.34 315922287.64

Other non-current liabilities

37Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Items June 302022 January 12022

Total non-current liabilities 6321471320.36 6391440959.83

Total of liability 8859503595.52 7554777641.18

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 733168659.66 713460518.49

Less：Shares in stock

Other comprehensive income 157305395.74 192177466.34

Special reserve

Surplus reserves 1225375330.56 1225375330.56

Common risk provision

Retained profit 4342645903.64 4760618543.78

Total of owner’s equity belong to the

parent company 8549301415.60 8982437985.17

Minority shareholders’ equity 2328415006.52 2338551172.96

Total of owners’ equity 10877716422.12 11320989158.13

Total of liabilities and owners’ equity 19737220017.64 18875766799.31

Legal Representative: Miao Deshan

General Manager: Wang Chunhua

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Zhou Fang

38Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

2.Parent Company Balance Sheet

In RMB

Items June 302022 January 12022

Current asset：

Monetary fund 2503652138.67 1860836127.30

Transactional financial assets

Derivative financial assets

Notes receivable

Account receivable 23382037.78 24208692.49

Financing of receivables

Prepayments 1513664.00 4311419.00

Other account receivable 109927575.03 6885982.60

Including：Interest receivable

Dividend receivable 103205472.90 1205472.90

Other receivable 6722102.13 5680509.70

Inventories

Contract assets

Assets held for sales

Non-current asset due within 1 year 279177659.24 278562652.27

Other current asset 380399.40 11067.41

Total of current assets 2918033474.12 2174815941.07

Non-current assets：

Creditor's right investment

Other creditor's right investment

Long-term receivable

Long term share equity investment 5973677507.66 5792610802.46

Other equity instruments investment 1524908322.00 1577175826.05

Other non-current financial assets

Property investment 2526565.92 2637125.16

Fixed assets 5502957671.60 5707608552.14

Construction in progress 71591095.39 43594243.12

Production physical assets

Oil & gas assets

Use right assets 7840662.26 12611748.50

Intangible assets 136752374.21 140756147.03

Development expenses

Goodwill

Long-germ expenses to be amortized

Deferred income tax asset 164802202.16 218624401.07

Other non-current asset 14434283.48

Total of non-current assets 13385056401.20 13510053129.01

Total of assets 16303089875.32 15684869070.08

Current liabilities

Short-term loans

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 86315059.08 105685908.27

Advance receipts 752954.28 250984.75

Contract Liabilities

Employees’ wage payable 6798097.51 6825973.81

Tax payable 5588770.60 7330856.79

Other account payable 1653510704.37 690062820.89

Including：Interest payable

Dividend payable

39Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Items June 302022 January 12022

Liabilities held for sales

Non-current liability due within 1 year 401413978.99 456996690.91

Other current liability 638149.43 37299.97

Total of current liability 2155017714.26 1267190535.39

Non-current liabilities：

Long-term loan 4053695100.00 4058096200.00

Bond payable 1427903757.98 1427434086.58

Including：preferred stock

Sustainable debt

Lease liability 2445724.58

Long-term payable 2517493.12 3461832.74

Long-term remuneration payable to staff

Expected liabilities

Deferred income 8479655.90 10120879.64

Deferred income tax liability 48353580.55 66399854.20

Other non-current liabilities

Total non-current liabilities 5540949587.55 5567958577.74

Total of liability 7695967301.81 6835149113.13

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 934939522.68 934851285.51

Less：Shares in stock

Other comprehensive income 157305395.74 192177466.34

Special reserve

Surplus reserves 1045403063.00 1045403063.00

Retained profit 4378668466.09 4586482016.10

Total of owners’ equity 8607122573.51 8849719956.95

Total of liabilities and owners’ equity 16303089875.32 15684869070.08

40Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

3.Consolidated Income statement

In RMB

Items The first half year of 2022 The first half year of 2021

I. Income from the key business 2057420809.68 2488474669.81

Incl：Business income 2057420809.68 2488474669.81

Interest income

Insurance fee earned

Fee and commission received

II. Total business cost 879520254.68 1114434707.99

Incl：Business cost 696143722.50 889127742.43

Interest expense

Fee and commission paid

Insurance discharge payment

Net claim amount paid

Net amount of withdrawal of insurance contract reserve

Insurance policy dividend paid

Reinsurance expenses

Business tax and surcharge 8932321.30 11081346.10

Sales expense

Administrative expense 85773267.04 93357035.39

R & D costs 1368887.22

Financial expenses 87302056.62 120868584.07

Including：Interest expense 123517238.10 149343110.61

Interest income 36907508.27 29751089.44

Add: Other income 8178352.38 9922369.03

Investment gain（“-”for loss） 162384354.53 172050127.56

Incl: investment gains from affiliates 101624848.46 122646589.32

Financial assets measured at amortized cost cease to be

recognized as income

Gains from currency exchange

Net exposure hedging income

Changing income of fair value

Credit impairment loss -1310999.95

Impairment loss of assets -2889394.16

Assets disposal income 463363.89

III. Operational profit（“-”for loss） 1348926625.80 1551812064.30

Add：Non-operational income 5821631.65 4011220.05

Less: Non-operating expense 2955659.39 1811321.13

IV. Total profit(“-”for loss) 1351792598.06 1554011963.22

Less：Income tax expenses 290240426.63 354025065.47

V. Net profit 1061552171.43 1199986897.75

(I) Classification by business continuity

1.Net continuing operating profit 1061552171.43 1199986897.75

2.Termination of operating net profit

(II) Classification by ownership

1.Net profit attributable to the owners of parent company 773786851.68 848860350.64

2.Minority shareholders’ equity 287765319.75 351126547.11

VI. Net after-tax of other comprehensive income -34872070.60 -35057445.36

Net of profit of other comprehensive income attributable to own -34872070.60 -35057445.36

ers of the parent company.（I）Other comprehensive income items that will not be

reclassified into gains/losses in the subsequent accounting -34035245.89 -37052653.68

period

1.Re-

measurement of defined benefit plans of changes in net debt or n

et assets

41Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

2.Other comprehensive income under the equity method investe

e can not be reclassified into profit or loss.

3. Changes in the fair value of investments in other equity

instruments -34035245.89 -37052653.68

4. Changes in the fair value of the company’s credit risks

5.Other（II）

Other comprehensive income that will be reclassified into profit -836824.71 1995208.32

or loss.

1.Other comprehensive income under the equity method investe -836824.71 1995208.32

e can be reclassified into profit or loss.

2. Changes in the fair value of investments in other debt

obligations

3. Other comprehensive income arising from the reclassification

of financial assets

4.Allowance for credit impairments in investments in other debt

obligations

5. Reserve for cash flow hedges

6.Translation differences in currency financial statements

7.Other

Net of profit of other comprehensive income attributable to Min

ority shareholders’ equity

VII. Total comprehensive income 1026680100.83 1164929452.39

Total comprehensive income attributable to the owner of the

parent company 738914781.08 813802905.28

Total comprehensive income attributable minority shareholders 287765319.75 351126547.11

VIII. Earnings per share

（I）Basic earnings per share 0.37 0.41

(II)Diluted earnings per share 0.37 0.41

The current business combination under common control the net profits of the combined party before achieved

net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Miao Deshan

General Manager：Wang Chunhua

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Zhou Fang

4. Income statement of the Parent Company

In RMB

Items The first half year of 2022 The first half year of 2021

I. Income from the key business 642655502.74 692634698.13

Incl：Business cost 251072086.53 367240160.93

Business tax and surcharge 3509918.91 3738582.05

Sales expense

Administrative expense 49546552.29 47922792.66

R & D expense

Financial expenses 95640651.97 127541297.15

Including：Interest expenses 115831785.91 145100046.47

Interest income 20217007.24 17596981.65

Add：Other income 2295878.36 2125443.39

Investment gain（“-”for loss） 791745612.18 844032026.57

Including: investment gains from affiliates 98424039.92 119611129.91

Financial assets measured at amortized cost cease to be

recognized as income

Net exposure hedging income

Changing income of fair value

Credit impairment loss

Impairment loss of assets -2889394.16

42Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Assets disposal income 463363.89

II. Operational profit（“-”for loss） 1037391147.47 989459941.14

Add：Non-operational income 562977.76 655426.85

Less：Non -operational expenses 22733.31

III. Total profit(“-”for loss) 1037954125.23 990092634.68

Less：Income tax expenses 54008183.42 42194605.52

IV. Net profit 983945941.81 947898029.16

1.Net continuing operating profit 983945941.81 947898029.16

2.Termination of operating net profit

V. Net after-tax of other comprehensive income -34872070.60 -35057445.36

（I）Other comprehensive income items that will not be

reclassified into gains/losses in the subsequent accounting -34035245.89 -37052653.68

period

1.Re-

measurement of defined benefit plans of changes in net debt

or net assets

2.Other comprehensive income under the equity method inve

stee can not be reclassified into profit or loss.

3. Changes in the fair value of investments in other equity

instruments -34035245.89 -37052653.68

4. Changes in the fair value of the company’s credit risks

5.Other

(II)Other comprehensive income that will be reclassified into -836824.71 1995208.32

profit or loss

1.Other comprehensive income under the equity method inve -836824.71 1995208.32

stee can be reclassified into profit or loss.

2. Changes in the fair value of investments in other debt

obligations

3. Other comprehensive income arising from the

reclassification of financial assets

4.Allowance for credit impairments in investments in other

debt obligations

5. Reserve for cash flow hedges

6.Translation differences in currency financial statements

7.Other

VI. Total comprehensive income 949073871.21 912840583.80

VII. Earnings per share

（I）Basic earnings per share

(II)Diluted earnings per share

Legal Representative: Miao Deshan

General Manager: Wang Chunhua

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Zhou Fang

43Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

5. Consolidated Cash flow statement

In RMB

Items The first half year of 2022 The first half year of 2021

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 2100682366.85 2575650836.44

Net increase of customer deposits and capital kept for brother

company

Net increase of loans from central bank

Net increase of inter-bank loans from other financial bodies

Cash received against original insurance contract

Net cash received from reinsurance business

Net increase of client deposit and investment

Cash received from interest commission charge and commission

Net increase of inter-bank fund received

Net increase of repurchasing business

Net cash received by agent in securities trading

Tax returned

Other cash received from business operation 67435536.39 62165772.17

Sub-total of cash inflow 2168117903.24 2637816608.61

Cash paid for purchasing of merchandise and services 131225559.09 153110239.80

Net increase of client trade and advance

Net increase of savings in central bank and brother company

Cash paid for original contract claim

Net increase in financial assets held for trading purposes

Net increase for Outgoing call loan

Cash paid for interest processing fee and commission

Cash paid to staffs or paid for staffs 201663653.64 195340890.00

Taxes paid 344543903.69 448200872.16

Other cash paid for business activities 47133520.52 25871389.40

Sub-total of cash outflow from business activities 724566636.94 822523391.36

Net cash generated from /used in operating activities 1443551266.30 1815293217.25

II. Cash flow generated by investing

Cash received from investment retrieving 22500000.00

Cash received as investment gains 114163108.50 51523258.20

Net cash retrieved from disposal of fixed assets intangible assets

and other long-term assets 522436.84 9900.00

Net cash received from disposal of subsidiaries or other operational

units 28514496.27

Other investment-related cash received

Sub-total of cash inflow due to investment activities 143200041.61 74033158.20

Cash paid for construction of fixed assets intangible assets and

other long-term assets 168081166.80 232853557.14

Cash paid as investment 250091000.00

Net increase of loan against pledge

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities

Sub-total of cash outflow due to investment activities 418172166.80 232853557.14

Net cash flow generated by investment -274972125.19 -158820398.94

III.Cash flow generated by financing

Cash received as investment

Including: Cash received as investment from minor shareholders

Cash received as loans 320000000.00 1166930000.00

Other financing –related cash received 38470400.00 97731650.00

Sub-total of cash inflow from financing activities 358470400.00 1264661650.00

Cash to repay debts 65836100.00 363908100.00

Cash paid as dividend profit or interests 367159468.70 609553626.92

Including: Dividend and profit paid by subsidiaries to minor 218751982.19 417577776.30

44Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Items The first half year of 2022 The first half year of 2021

shareholders

Other cash paid for financing activities 6242513.89 1227774134.86

Sub-total of cash outflow due to financing activities 439238082.59 2201235861.78

Net cash flow generated by financing -80767682.59 -936574211.78

IV. Influence of exchange rate alternation on cash and cash

equivalents

V.Net increase of cash and cash equivalents 1087811458.52 719898606.53

Add: balance of cash and cash equivalents at the beginning of term 2955183190.55 2846176803.89

VI ..Balance of cash and cash equivalents at the end of term 4042994649.07 3566075410.42

Legal Representative: Miao Deshan

General Manager: Wang Chunhua

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Zhou Fang

45Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

6. Cash Flow Statement of the Parent Company

In RMB

Items The first half year of 2022 The first half year of 2021

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 661912004.69 720086995.35

Tax returned

Other cash received from business operation 24521728.95 44973397.60

Sub-total of cash inflow 686433733.64 765060392.95

Cash paid for purchasing of merchandise and services 13570674.87 17069701.31

Cash paid to staffs or paid for staffs 60633887.05 61391499.13

Taxes paid 23470841.12 27826685.08

Other cash paid for business activities 236627095.73 73534284.42

Sub-total of cash outflow from business activities 334302498.77 179822169.94

Net cash generated from /used in operating activities 352131234.87 585238223.01

II. Cash flow generated by investing

Cash received from investment retrieving 60623900.00 37500000.00

Cash received as investment gains 693296160.51 707197026.42

Net cash retrieved from disposal of fixed assets intangible assets and

other long-term assets 517888.00 2600.00

Net cash received from disposal of subsidiaries or other operational

units

Other investment-related cash received

Sub-total of cash inflow due to investment activities 754437948.51 744699626.42

Cash paid for construction of fixed assets intangible assets and other

long-term assets 43488728.78 94360520.74

Cash paid as investment 246000000.00 1246839292.00

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities

Sub-total of cash outflow due to investment activities 289488728.78 1341199812.74

Net cash flow generated by investment 464949219.73 -596500186.32

III. Cash flow generated by financing

Cash received as investment

Cash received as loans 1166930000.00

Other financing –related ash received

Sub-total of cash inflow from financing activities 1166930000.00

Cash to repay debts 32001100.00 322573100.00

Cash paid as dividend profit or interests 136048729.34 178730958.24

Other cash paid for financing activities 6214613.89 5916242.86

Sub-total of cash outflow due to financing activities 174264443.23 507220301.10

Net cash flow generated by financing -174264443.23 659709698.90

IV. Influence of exchange rate alternation on cash and cash

equivalents

V.Net increase of cash and cash equivalents 642816011.37 648447735.59

Add: balance of cash and cash equivalents at the beginning of term 1859614927.30 1780543319.09

VI ..Balance of cash and cash equivalents at the end of term 2502430938.67 2428991054.68

Legal Representative: Miao Deshan

General Manager: Wang Chunhua

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Zhou Fang

46Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

Items instrument Less: Other Spec Com Minor Total of owners’

Share Prefer Sust Capital Shar Comprehen

ialize Surplus mon shareholders’ equity

Capital red aina Othe reserves es in sive

d reserves risk Retained profit Other Subtotal equity

stock r stock Income

reser provis

ble ve ion

debt

I.Balance at the 20908061 7134605 19217746 1225375330. 4760618543. 8982437

end of last year 2338551172.96 11320989158.1326.00 18.49 6.34 56 78 985.17

Add: Change of

accounting

policy

Correcting of

previous errors

Merger of entities

under common

control

Other

II.Balance at the

beginning of 20908061 7134605 19217746 1225375330. 4760618543. 8982437 2338551172.96 11320989158.13

current year 26.00 18.49 6.34 56 78 985.17

III.Changed in the 1970814 -

current year 34872070. 43313656 -10136166.44 -443272736.011.17 417972640.14

609.57

（1）Total - 73891478

comprehensive 34872070. 773786851.68 287765319.75 1026680100.83

income 1.0860（II）Investment

or decreasing of

capital by owners

1．Ordinary Shar

es invested by sha

reholders

2．Holders of oth

er equity instrume

47Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

Items instrument Less: Other Spec Com Minor Total of owners’

Share Prefer Sust Capital Shar Comprehen

ialize

d Surplus

mon shareholders’

Capital Othe reserves es in sive reserves risk Retained profit Other Subtotal equity

equity

red aina

stock r stock Income

reser provis

ble ve ion

debt

nts invested capit

3．Amount of

shares paid and

accounted as

owners’ equity

4．Other

--（III）Profit

allotment 1191759491. 1191759 -316751982.19 -1508511474.01

82491.82

1.Providing of

surplus reserves

2.Providing of

common risk

provisions

3．Allotment to - -

the owners (or 1191759491. 1191759 -316751982.19 -1508511474.01

shareholders) 82 491.82

4．Other

(IV) Internal

transferring of

owners’ equity

1. Capitalizing of

capital reserves

(or to capital

shares)

2. Capitalizing of

surplus reserves

(or to capital

shares)

3．Making up

losses by surplus

reserves.

48Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

Items instrument Less: Other Spec Com Minor Total of owners’

Share Prefer Sust Capital Shar Comprehen

ialize Surplus mon shareholders’

Capital Othe reserves es in sive d reserves risk Retained profit Other Subtotal equity

equity

red aina r stock Income reser provisstock ble ve ion

debt

4.Change amount

of defined benefit

plans that carry

forward

Retained earnings

5．Other

comprehensive

income carry-over

retained earnings

6．Other

(V). Special

reserves

1. Provided this

year

2．Used this term

VI Other 1970814 19708141（） 18850496.00 38558637.17

1.17.17

IV. Balance at the 20908061 7331686 15730539 1225375330. 4342645903. 8549301

end of this term 2328415006.52 10877716422.1226.00 59.66 5.74 56 64 415.60

Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang

49Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Amount in last year

In RMB

The first half year of 2021

Owner’s equity Attributable to the Parent Company

Other Equity instrument Co

Items Less: Other mm Minor Total of owners’

Share Prefer Sust Capital Shar Comprehen

Special on shareholders’

Capital ized

Surplus equity

red aina Other reserves es in sive reserve reserves

risk Retained profit Other Subtotal equity

pro

stock ble stock Income visi

debt on

I.Balance at the 20908061 6459692 30289587 11677859 3725679319.3 79331364

end of last year 2299180085.17 10232316584.2826.00 10.48 7.65 65.63 5 99.11

Add: Change of

accounting -433859.42 -433859.42 -433859.42

policy

Correcting of

previous errors

Merger of

entities under

common

control

Other

II.Balance at

the beginning 20908061 6459692 30289587 11677859 3725245459.9 79327026 2299180085.17 10231882724.86

of current year 26.00 10.48 7.65 65.63 3 39.69

III.Changed in 4606492 251443244

the current year 35057445 240435767.97 -18562720.69 232880524.172.25 .86.36

（1）Total -

813802905

comprehensive 35057445 848860350.64 351126547.11 1164929452.39

income .28.36（II）

Investment or

decreasing of

capital by

owners

1．Ordinary Sh

ares invested by

shareholders

2．Holders of

50Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

The first half year of 2021

Owner’s equity Attributable to the Parent Company

Other Equity instrument Co

Items Less: Other mm Minor

Share Capital Shar Comprehen Special

Total of owners’

Prefer Sust ized Surplus

on shareholders’

Capital reserves es in sive reserves risk Retained profit Other Subtotal

equity

red aina Other equityreserve pro

stock ble stock Income visi

debt on

other equity ins

truments invest

ed capital

3．Amount of

shares paid and

accounted as

owners’ equity

4．Other

-（III）Profit

allotment -608424582.67 608424582 -417577776.30 -1026002358.97.67

1.Providing of

surplus reserves

2.Providing of

common risk

provisions

3．Allotment

to the owners

(or -608424582.67 608424582 -417577776.30 -1026002358.97

shareholders) .67

4．Other

(IV) Internal

transferring of

owners’ equity

1. Capitalizing

of capital

reserves (or to

capital shares)

2. Capitalizing

of surplus

reserves (or to

capital shares)

3．Making up

losses by

51Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

The first half year of 2021

Owner’s equity Attributable to the Parent Company

Other Equity instrument Co

Items Less: Other mm Minor

Share Capital Shar Comprehen Special Surplus on shareholders’

Total of owners’

Prefer Sust equity

Capital reserves es in sive ized reserves risk Retained profit Other Subtotalred aina Other equity

stock Income reserve prostock ble visi

debt on

surplus

reserves.

4.Change

amount of

defined benefit

plans that carry

forward

Retained

earnings

5．Other

comprehensive

income carry-

over retained

earnings

6．Other

(V). Special

reserves

1. Provided this

year

2．Used this

term

VI Other 4606492 46064922.（） 47888508.50 93953430.75

2.2525

IV. Balance at

the end of this 20908061 6920341 26783843 11677859 3965681227.9 81841458 2280617364.48 10464763249.03

term 26.00 32.73 2.29 65.63 0 84.55

52Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang

53Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

8.Statement of change in owner’s Equity of the Parent Company

Amount in this period

In RMB

The first half year of 2022

Other Equity

instrument

Less

Items Su Other

Speci

Share capital Prefe sta Othe Capital reserves

Shar

es in Comprehensive

alized

reserv Surplus reserves Retained profit Other Total of owners’ equityrred ina stoc Incomer e

stock ble k

I.Balance at the end of 2090806126.00 934851285.51 192177466.34 1045403063.00 4586482016.10 8849719956.95

last year

Add: Change of

accounting policy

Correcting of previous

errors

Other

II.Balance at the 2090806126.00 934851285.51 192177466.34 1045403063.00 4586482016.10 8849719956.95

beginning of current year

III.Changed in the 88237.17 -34872070.60 -207813550.01 -242597383.44

current year

（I）Total

comprehensive income -34872070.60 983945941.81 949073871.21

(II) Investment or

decreasing of capital by

owners

1．Ordinary Shares inve

sted by shareholders

2．Holders of other equi

ty instruments invested c

apital

3.Amount of shares paid

and accounted as

owners’ equity

4．Other

54Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

The first half year of 2022

Other Equity

instrument

Less

Items Su

Shar Other

Speci

Share capital Prefe sta Othe Capital reserves es in Comprehensive

alized

reserv Surplus reserves Retained profit Other Total of owners’ equityrred ina

r stoc

Income e

stock ble k

bt（III）Profit allotment -1191759491.82 -1191759491.82

1.Providing of surplus

reserves

2．Allotment to the

owners (or shareholders) -1191759491.82 -1191759491.82

3．Other

(IV) Internal transferring

of owners’ equity

1. Capitalizing of capital

reserves (or to capital

shares)

2. Capitalizing of surplus

reserves (or to capital

shares)

3．Making up losses by

surplus reserves.

4.Change amount of

defined benefit plans that

carry forward

Retained earnings

5．Other comprehensive

income carry-over

retained earnings

6．Other

(V) Special reserves

1. Provided this year

2．Used this term（VI）Other 88237.17 88237.17

IV. Balance at the end of

this term 2090806126.00 934939522.68 157305395.74 1045403063.00 4378668466.09 8607122573.51

55Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang

56Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Amount in last year

In RMB

The first half year of 2021

Other Equity

instrument

Pref Less:

Spec

Items Other ializ

Share Capital erre Ot Capital reserves Share Comprehensive ed Surplus reserves Retained profit Other Total of owners’Sustai

d he s in Income reser equity

nable stock

stoc r ve

debt

7988028411.8

I.Balance at the end of last year 2090806126.00 938969546.79 302895877.65 987813698.07 3667543163.36 7

Add: Change of accounting policy -433859.42 -433859.42

Correcting of previous errors

Other

II.Balance at the beginning of 7987594552.42090806126.00 938969546.79 302895877.65 987813698.07 3667109303.94

current year 5

III.Changed in the current year -3778219.25 -35057445.36 339473446.49 300637781.88

（I）Total comprehensive income -35057445.36 947898029.16 912840583.80

(II) Investment or decreasing of

capital by owners

1．Ordinary Shares invested by sh

areholders

2．Holders of other equity instrum

ents invested capital

3.Amount of shares paid and

accounted as owners’ equity

4．Other（III）Profit allotment -608424582.67 -608424582.67

1.Providing of surplus reserves

2．Allotment to the owners (or

shareholders) -608424582.67 -608424582.67

3．Other

(IV) Internal transferring of

owners’ equity

1. Capitalizing of capital reserves

(or to capital shares)

2. Capitalizing of surplus reserves

(or to capital shares)

57Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

The first half year of 2021

Other Equity

instrument

Less: Spec

Items Pref

Share Capital erre Ot Capital reserves Share

Other ializ

Comprehensive ed Surplus reserves Retained profit Other Total of owners’Sustai

d he s instock Income reser

equity

nable

stoc r ve

debt

3．Making up losses by surplus

reserves.

4.Change amount of defined

benefit plans that carry forward

Retained earnings

5．Other comprehensive income

carry-over retained earnings

6．Other

(V) Special reserves

1. Provided this year

2．Used this term（VI）Other -3778219.25 -3778219.25

IV. Balance at the end of this term 8288232334.32090806126.00 935191327.54 267838432.29 987813698.07 4006582750.43

Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang

58Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

III. Company Profile

1. Basic information of the IPO and share capital of the company

1.The Company was established in February 1993 which was originally named as Guangdong Fokai Expressway

Co. Ltd. On June 30 1993 it was renamed as Guangdong Provincial Expressway Development Co. Ltd. after

reorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of Share

Holding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows:

Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge

Co. and Guangfo Expressway Co. Ltd. as of January 31 1993 confirmed by Guangdong State-owned Asset

Management Dept. i.e.RMB 418.2136 million was converted into 155.025 million shares. Guangdong

Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons

invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested

RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.

2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities

Regulatory Commission with YTG (1996) No. 67 document part of the shareholders of non-state-owned legal

person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co. Ltd.in June 1996.

3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval

document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document the

Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at the

price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July

1996.

4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of

China with (1996) WJMZYHZ No. 606 document the Company was approved to be a foreign-invested joint

stock company limited.

5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following

manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on 3.3-

for-10 basis.

6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.

487 document the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of

“payable in full on application pro-rate placing and subject to refund” with the par value of each share being

RMB 1 in January 1998.

7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant

to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of

CSRC with ZJGSZ (2000) No. 98 the Company offered 3 Rights for every 10 shares of 764.256249 million

shares at the price of RMB 11 per Right.73822250 ordinary shares were actually placed to all .

8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH

(2000) No. 574 document the state-owned shares were transferred to Guangdong Communication Group Co.

Ltd. (Group Co.) for holding and management without compensation.

59Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

9.Pursuant to the approval of Shenzhen Stock Exchange 53.0205 million staff shares of the Company (132722

shares held by directors supervisors and senior executives are temporarily frozen) were listed on February 5 2001.

10.In accordance with the resolutions of 2000 annual shareholders’ general meeting the Company capitalized

capital common reserve into 419039249 shares on 5-for-10 basis with the total share capital as of the end of

2000 i.e. 838078499 shares as base. The date of stock right registration was May 21 2001. The ex-right date

was May 22 2001.

11．On March 8 2004As approved by China Securities Regulatory Commission by document Zheng-Jian-Gong-

Si-Zi [2003]No.3 the 45000000 non-negotiable foreign shares were placed in Shenzhen Stock

12. On December 21 2005 the Company's plan for share holding structure reform was voted through at theshareholders' meeting concerning A shares. On January 26 2006 The Ministry of Commerce of PRC issued “Theapproval on share converting of Guangdong Provincial Expressway Development Co. Ltd.” to approve the shareequity relocation and transformation. On October 9 2006 according to the “Circular about implementing of shareequity relocation and relative trading” issued by Shenzhen Stock Exchange the abbreviation ID of the Company’s

A shares was restored from “G-Expressway” “Expressway A”.Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties

such as Guangdong Provincial Expressway Co. Ltd to Purchase Assets and Raise Matching Funds by Guangdong

Provincial Expressway Development Co. Ltd in June 2016 the company issued 33355263 shares and paid RMB

803.50 million to Guangdong Provincial Expressway Co. Ltd for purchasing the 25% stake of Guangdong

Provincial Fokai Expressway Co. Ltd held by Guangdong Provincial Expressway Co. Ltd; and issued

466325020 shares to Guangdong Provincial Highway Construction Co. Ltd for purchasing the 100% stake of

Guangzhou Guangzhu Traffic Investment Management Co. Ltd held by Guangdong Provincial Highway

Construction Co. Ltd. On June 21 2016 the company directionally issued 334008095 A-shares to Yadong

Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and Guangfa Securities

Co.Ltd. The issuance of shares have been registered on July 7 2016 the new shares will be listed on July 8 2016.

1. Company's registered place and headquarters address

Company name：Guangdong Provincial Expressway Development Co. Ltd.Registration placeNo.85 Baiyun Road Yuexiu District Guangzhou.Headquarters Office ：45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tihe Disrtict

Guangzhou

2. Business nature and main business activities

Industry and main products of the company: highway management and maintenance.General business items: investment construction charging maintenance and service management of

expressways grade roads and bridges; Automobile rescue service maintenance and cleaning; Parking lot charges;

Design production release and agency of all kinds of advertisements at home and abroad; Land development

along the highway; Warehousing business; Intelligent transportation technology research and development and

service; Equity investment management and consultation. (Projects that must be approved according to law can

be operated only after being approved by relevant departments).The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu

Expressway Guangzhu Section and Guanghui Expressway investment in technological industries

and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou

Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway

Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology

60Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi

Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and Shenzhen Garage Electric Pile

Technology Co. Ltd.

3. Scope and changes of consolidated financial statements in the current period

(1) Scope of current consolidated financial statements

The consolidated scope of the current financial statements invovles Guangdong Expressway Technology

Investment Co. Ltd. Yuegao Capital Holding (Guangzhou) Co. Ltd. its holding subsidiaries Guangfo

Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. and Guanghui Expressway Co. Ltd..

(2) Changes in the scope of consolidated financial statements in the current period

In the current period the 100% equity of Guangdong Expressway Technology Investment Co. Ltd-a wholly-

owned subsidiary-was transferred to Guangdong Litong Technology Investment Co. Ltd and the equity delivery

date was March 29 2022. Therefore it will no longer be included in the scope of the consolidated financial

statements at the end of the current period.

4. Approval and submission date of financial report

The financial statements have been authorized for issuance by the 32th(Provisional) meeting of the Ninth Board of

Directors of the Group on August 26 2022.

(1) Scope of current consolidated financial statements

The consolidated scope of the current financial statements invovles Guangdong Expressway Technology

Investment Co. Ltd. Yuegao Capital Holding (Guangzhou) Co. Ltd. its holding subsidiaries Guangfo

Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. and Guanghui Expressway Co. Ltd..

(2) Changes in the scope of consolidated financial statements in the current period

In the current period the 100% equity of Guangdong Expressway Technology Investment Co. Ltd-a wholly-

owned subsidiary-was transferred to Guangdong Litong Technology Investment Co. Ltd and the equity delivery

date was March 29 2022. Therefore it will no longer be included in the scope of the consolidated financial

statements at the end of the current period.IV. Basis for the preparation of financial statements

1.Preparation basis

The financial statements of the Company have been prepared on basis of going concern in conformity with

Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises

issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33 the

Ministry of Finance revised order No.76) on February 15 2006 and revised Accounting Standards (order 42 of

the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to

the Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China Securities

Regulatory Commission (CSRC).According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises

the Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the

lower of its book value at its classification date and fair value minus expected disposal costs. Where assets are

impaired provisions for asset impairment are made in accordance with relevant requirements

2.Continuation

There will be no such events or situations in the 12 months from the end of the reporting period that will cause

material doubts as to the continuation capability of the Company.

61Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

V. Significant Accounting Policies and Accounting Estimates

Specific accounting policies and accounting estimates are indicated as follows:

None

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements of the Company are recognized and measured in accordance with the regulations in

the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial

position business result and cash flow of the Company. In addition the financial statements of the Company

comply in all material respects with the revised disclosing requirements for financial statements and the

Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—General

Provisions on Financial Reports (2014 Revision) issued by China Securities Regulatory Commission (CSRC) in

2014.

2. Accounting period

The accounting period of the Company is classified as interim period and annual period. Interim period

refers to the reporting period shorter than a complete annual period. The accounting period of the Company is the

calendar year from January 1 to December 31.

3.Operating cycle

The normal operating cycle refers to the period from the time when the Group purchases assets for

processing to the time when cash or cash equivalents are realized. The Company takes 12 months as a business

cycle and uses it as a criterion for liquidity classification of assets and liabilities.

4.Standard currency for bookkeeping

The Company adopts CNY to prepare its functional statements.

5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same

Control

1.Business Combinations under the Same Control

If business participating in the combination are ultimately controlled by the same party or parties before and

after the combination and the control is not temporary it is an business combination under the same control.Usually business combination under the same control refers to the combination between business within the same

business except which it is generally not regarded as business combination under the same control.The assets and liabilities obtained by the Company as the combining party in the business combination shall

be measured according to the book value of the combined party in the consolidated financial statements of the

ultimate controlling party on the combination date. For the long-term equity investment formed by holding

combination under the same control the company takes the share of the book owner's equity of the combined

party on the combination date as the initial investment cost for forming the long-term equity investment. See the

long-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorption

and combination under the same control shall be recorded by the Company according to the original book value of

the related assets and liabilities in the combined party. The company adjusts the capital reserve according to the

difference between the book value of the net assets obtained and the book value of the combination consideration

paid (or the total par value of the issued shares); If the capital reserve is insufficient to offset the retained earnings

shall be adjusted.All directly related expenses incurred by the Company as a combining party for business combination

including audit fees evaluation fees legal service fees etc. are included in the current profits and losses when

62Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

incurred.Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial

measurement amount of bonds and other debts issued. Fees commissions and other expenses incurred in issuing

equity securities in business combination shall be offset against the premium income of equity securities and if

the premium income is insufficient to offset the retained earnings shall be offset.If the holding under the same control is combined to form a parent-subsidiary relationship the parent

company shall prepare consolidated financial statements on the consolidation date including consolidated balance

sheet consolidated income statement and consolidated cash flow statement.For the consolidated balance sheet the book value of the combined party in the consolidated financial

statements of the ultimate controlling party shall be incorporated into the consolidated financial statements and

the transactions between the combining party and the combined party on the consolidation date and the previous

period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated

Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash

flow realized by the combining party and the combined party from the beginning of the current consolidation

period to the consolidation date and involve the cash flow generated by the transactions and internal transactions

between the two parties in the current period which shall be offset according to the relevant principles of the

consolidated financial statements.

2. If the parties involved in the combination are not ultimately controlled by the same party or parties before

and after the combination it is a business combination not under the same control.Business Combinations not under the Same Control

Determine the cost of business combination: the cost of business combination includes the fair value of cash

or non-cash assets paid by the purchaser for business combination debts issued or assumed and equity securities

issued on the purchase date.In the business combination not under the same control the intermediary expenses such as auditing legal

services evaluation and consultation and other related management expenses incurred by the purchaser for the

business combination shall be included in the current profits and losses when they occur; Transaction costs of

equity securities or debt securities issued by the purchaser as combination consideration shall be included in the

initial recognized amount of equity securities or debt securities.For the long-term equity investment obtained by holding combination not under the same control the

company takes the combination cost determined on the purchase date (excluding cash dividends and profits that

should be collected from the investee) as the initial investment cost for the long-term equity investment of the

purchaser; All identifiable assets and liabilities obtained by absorption and combination under different control

that meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on

the date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the

purchaser or various identifiable assets and liabilities the difference between the fair value of the relevant non-

monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of the

assets and recorded in the income statement of the current consolidation period.In a business combination not under the same control the difference between the cost of business

combination and the fair value share of identifiable net assets of the purchaser obtained in the combination is

recognized as goodwill; In the case of absorption and combination the difference is recognized as goodwill in the

individual financial statements of the parent company; In the case of holding combination the difference is listed

as goodwill in the consolidated financial statements.The cost of business combination is less than the difference between the fair value share of identifiable net

assets acquired during the combination which is included in the profits and losses (non-operating income) of the

63Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

current combination period after review by the Company. In the case of absorption and combination the

difference is included in the individual income statement of the parent company in the current combination period;

In the case of holding combination the difference is included in the consolidated income statement of the current

combination period.If the business combination not under the same control realized step by step through multiple exchange

transactions is a package transaction each transaction will be treated as a transaction to obtain control rights; If it

is not a package transaction the equity of the purchased party held before the purchase date shall be re-measured

according to the fair value of the equity on the purchase date and the difference between the fair value and its

book value shall be included in the current investment income; If the equity of the purchased party held before the

purchase date involves other comprehensive income other comprehensive income related to it shall be converted

into the investment income of the current period on the purchase date except for other comprehensive income

arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the

invested party.

6. Compilation method of consolidated financial statements

(1) Consolidation scope

The consolidation scope of consolidated financial statements is determined on the basis of control. Control

means that the Company has the power over the investee is entitled to variable returns by participating in the

related activities of the investee and has the ability to use the power over the investee to influence its return

amount. Subsidiaries refer to subjects controlled by the Company (including enterprises divisible parts of

investee(s) structured subjects etc.).

(2) Compilation method of consolidated financial statements

The consolidated financial statements of the Company are based on the financial statements of the parent

company and its subsidiaries and are prepared according to other relevant information. When compiling the

important internal transactions between the parent company and its subsidiaries such as investment transactions

purchase and sale of inventories and their unrealized profits are offset and combined item by item and the

minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the

accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company the

accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting

periods of the parent company before combination.

(3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period

During the reporting period when preparing the consolidated balance sheet the balance at the beginning of

the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same

control. When preparing the consolidated balance sheet the balance at the beginning of the year of the

consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the

same control. During the reporting period the subsidiaries are disposed of and the balance at the beginning of the

consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.During the reporting period the income expenses and profits of subsidiaries added by business combination

under the same control from the beginning to the end of the reporting period are included in the consolidated

income statement and the cash flows from the beginning to the end of the reporting period are included in the

consolidated cash flow statement. For subsidiaries added due to business combination not under the same control

the income expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are

included in the consolidated income statement and their cash flow from the purchase date to the end of the

reporting period is included in the consolidated cash flow statement. During the reporting period the subsidiary is

disposed of and the income expenses and profits from the beginning of the period to the disposal date are

64Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

included in the consolidated income statement and the cash flow from the beginning of the period to the disposal

date is included in the consolidated cash flow statement.When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or

other reasons the remaining equity investment after disposal shall be re-measured according to its fair value on

the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair

value of the remaining equity minus the difference between the share of the original subsidiary's net assets

calculated continuously from the purchase date and the sum of goodwill calculated according to the original

shareholding ratio is included in the investment income in the current period when the control right is lost. Other

comprehensive income related to the original subsidiary's equity investment is converted into current investment

income when the control right is lost except for other comprehensive income generated by the investee's re-

measurement of net liabilities or changes in net assets of the set income plan.The difference between the newly acquired long-term equity investment due to the purchase of minority

shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio

and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries

and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to

adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the

capital reserve is insufficient to offset the retained earnings will be adjusted.

(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights

If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a

package transaction the transactions shall be treated as transactions that dispose of subsidiaries and lose control

rights; However the difference between the disposal price and the share of the subsidiary's net assets related to the

disposal investment before the loss of control right is recognized as other comprehensive income in the

consolidated financial statements which will be transferred to the current profit and loss when the control right is

lost except for other comprehensive income arising from the re-measurement of the net liabilities or changes in

net assets of the set income plan by the investee. If it is not a package transaction before the loss of control the

difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary

from the purchase date will be adjusted to the capital reserve and if the capital reserve is insufficient to offset the

retained earnings will be adjusted; In case of loss of control right the accounting treatment shall be carried out

according to the above accounting policy when the control right over the original subsidiary is lost.

7.Recognition Standard of Cash & Cash Equivalents

Cash and cash equivalents of the Company include cash on hand ready usable deposits and investments

having short holding term (normally will be due within three months from the day of purchase) with strong

liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of

change.

8.Foreign Currency Transaction

(1) Foreign currency business

Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency

according to the spot rate on the transaction date.On the balance sheet date foreign currency monetary items and foreign currency non-monetary items shall

be treated according to the following provisions: foreign currency monetary items shall be converted at the spot

rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the

balance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are

65Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

included in the current profits and losses; Foreign currency non-monetary items measured at historical cost are

still converted at the spot rate on the transaction date without changing their bookkeeping base currency amount;

Foreign currency non-monetary items measured at fair value shall be converted at the spot rate on the fair value

determination date and the difference between the converted bookkeeping base currency amount and the original

bookkeeping base currency amount shall be treated as changes in fair value (including exchange rate changes) and

included in the current profits and losses; During the capitalization period the exchange difference between the

principal and interest of foreign currency special loans is capitalized and included in the cost of assets that meet

the capitalization conditions.

(2) Translation of foreign currency financial statements

When converting foreign currency financial statements the Company shall comply with the following

regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date

and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of

occurrence; The income and expense items in the income statement shall be converted at the spot rate on the

transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot

rate on the transaction date). The translation difference of foreign currency financial statements generated

according to the above translation is recognized as other comprehensive income. The conversion of comparative

financial statements shall be handled according to the above provisions.

9.Financial instruments

The Company recognizes the financial assets or liabilities when involved in financial instruments’

agreements.

（1）Classification recognition and measurement of financial assets

In accordance with the characteristics of business model for managing financial assets and the contractual

cash flow of financial assets the Company classifies financial assets into: financial assets measured in amortized

cost; financial assets measured at fair value and their's changes are included in other comprehensive income;

financial assets measured at fair value and their's changes are included in current profits and losses.The initial measurement of financial assets is calculated by using fair value. For financial assets measured at

fair value whose changes are included in current profits and losses relevant transaction costs are directly included

in current profits and losses; For other types of financial assets relevant transaction costs are included in the

initial recognition amount.* Financial assets measured at amortized cost

The business model of the Company's management of financial assets measured by amortized cost is aimed

at collecting the contractual cash flow and the contractual cash flow characteristics of such financial assets are

consistent with the basic lending arrangements that is the cash flow generated on a specific date is only the

payment of principal and interest based on the amount of outstanding principal. For such financial assets the

Company adopts the method of real interest rate and makes subsequent measurement according to the cost of

amortization. The profits or losses resulting from amortization or impairment are included in current profits and

losses.* Financial assets measured at fair value and changes included in other comprehensive income

The Company's business model for managing such financial assets is to collect the contractual cash flow

and the contractual cash flow characteristics of such financial assets are consistent with the basic lending

arrangements. The Company measures such financial assets at fair value and their changes are included in other

comprehensive gains but impairment losses or gains exchange gains and losses and interest income calculated

according to the actual interest rate method are included in current profits and losses.

66Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

In addition the Company designated some non-trading equity instrument investments as financial assets

measured at fair value with changes included in other comprehensive income. The Company includes the relevant

dividend income of such financial assets in current profits and losses and the changes in fair value in other

comprehensive gains. When the financial asset ceases to be recognized the accumulated gains or losses

previously included in other comprehensive gains shall be transferred into retained income from other

comprehensive income and not be included in current profit and loss.* Financial assets measured at fair value and changes included in current profits and losses

The Company includes the above-mentioned financial assets measured at amortized cost and those measured

at fair value and their's changes in financial assets other than financial assets of comprehensive income and

classifies them as financial assets measured at fair value and their's changes that are included in current profits and

losses. In addition the Company designates some financial assets as financial assets measured at fair value and

includes their changes in current profits and losses in order to eliminate or significantly reduce accounting

mismatches during initial recognition. In regard with such financial assets the Company adopts fair value for

subsequent measurement and includes changes in fair value into current profits and losses.

（2）Classification recognition and measurement of financial liabilities

The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value

through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss

relevant transaction costs are immediately recognized in profit or loss for the current period and transaction costs

relating to other financial liabilities are included in the initial recognition amounts.* Financial liabilities measured by the fair value and the changes recorded in profit or loss

The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial

recognition to be measured by the fair value follows the same criteria as the classification by which financial

assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and

their changes are recorded in the current profit or loss

Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently

measured according to fair value. Except for hedging accounting changes in fair value are included in current

profits and losses.Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are

included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in

fair value caused by changes in the Company's own credit risk and when the liabilities are terminated the

changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the

cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The

amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and

losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial

liabilities will result in or expand the accounting mismatch in the profits and losses the Company shall include all

the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit

risk of the enterprise itself) into the current profits and losses.* Other financial liabilities

In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition

or formed by its continuous involvement in the transferred financial asset financial liabilities and financial

guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost

measured at the amortized cost for subsequent measurement recognition has been stopped or amortization of the

profit or loss is included in the current profits and losses.

(3) Recognition basis and measurement methods for transfer of financial assets

67Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Financial assets satisfying one of the following conditions shall be terminated and recognized: * The

contractual right to collect the cash flow of the financial asset is terminated; * The financial asset has been

transferred and almost all the risks and rewards in the ownership of the financial asset have been transferred to

the transferee; * The financial asset has been transferred although the enterprise neither transfers nor retains

almost all the risks and rewards in the ownership of the financial asset but it abandoned control of the financial

assets.In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets

ownership nor waive to control these assets relevant financial assets shall be recognized in accordance with the

degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized

correspondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to the

risk level that the enterprise faces resulting from the change of the value of the financial asset.If the overall transfer of the financial assets satisfies the derecognition criteria the difference between the

book value of the transferred financial assets and the sum of the consideration received from transfer and

cumulative change in fair value previously recognized in other comprehensive income is accounted into the

current profit or loss.In case that the partial transfer of financial assets meets de-recognition conditions the book value of

financial assets transferred shall be allocated as per respective fair value between de-recognized or not de-

recognized parts and the difference between the sum of the consideration received due to transfer with the

accumulated amount of fair value changes that is previously included in other comprehensive income and shall be

allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or

loss.The Company shall determine whether almost all the risks and rewards of the ownership of the financial

assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If

almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee the

confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the

financial asset have been retained the confirmation of the financial asset shall not be terminated; if neither the

transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.In case of remuneration it shall continue to determine whether the enterprise has retained control over the assets

and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.

(4) Termination confirmation of financial liabilities

If the current obligation of a financial liability (or part thereof) has been discharged the Company shall

terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an

agreement with the lender to replace the original financial liabilities by assuming new financial liabilities and the

contract terms of the new financial liabilities are substantially different from those of the original financial

liabilities it shall terminate the recognition of the original financial liabilities and at the same time confirm a new

financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or

part thereof) it shall terminate the confirmation of the original financial liabilities and at the same time confirm a

new financial liabilities in accordance with the revised terms.If the financial liabilities (or part thereof) are terminated the difference between their book value and the

consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits

and losses of the current period.

（5）Offsetting financial assets and financial liabilities

When the Company has a legal right that is currently enforceable to set off the recognized financial assets

and financial liabilities and intends either to settle on a net basis or to realize the financial asset and settle the

68Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

financial liability simultaneously a financial asset and a financial liability shall be offset and the net amount is

presented in the balance sheet. Except for the above circumstances financial assets and financial liabilities shall

be presented separately in the balance sheet and shall not be offset.

(6) Method for determining the fair value of financial assets and financial liabilities

Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly

transaction that occurs on the measurement date. The fair value of financial instruments existing in an active

market is determined by the Company according to its quoted price in this market. westbank The quoted prices in

the active market refer to the prices which are easily available from the stock exchanges brokers industry

associations pricing service institutions and etc. at a fixed term and which represent the prices at which actually

occurred market transactions are made under fair conditions.￡¨ In can a financial instrument does not exist in

active markets its fair value shall be determined by the Company with assessment techniques. The value appraisal

techniques mainly include the prices adopted by the parties who are familiar with the condition in the latest

market transaction upon their own free will the current fair value obtained by referring to other financial

instruments of the same essential nature the cash flow capitalization method and the option pricing model etc. In

valuation the Company adopts valuation techniques that are applicable in the current situation and supported by

sufficient data and other information to select input values consistent with the characteristics of assets or liabilities

considered by market participants in the transactions of related assets or liabilities and give priority to the use of

relevant observable input values as far as possible. Unallowable values are used if the relevant observable input

values are not available or are not practicable.

（7）Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after

deducting all of its liabilities. The consideration received from issuing equity instruments net of transaction costs

are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to

holders of equity instruments are deducted from shareholders’ equity.The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the

Company's equity instruments during the period of their existence shall be treated as profit distribution.

10. Impairment of financial instruments

The Company requires to confirm that the financial assets lost by impairment are financial assets measured

by amortized cost investment in debt instruments and lease receivables which are measured at fair value and

whose changes are included in other comprehensive gains mainly including notes receivable accounts receivable

other receivables creditor's rights investment other creditor's rights investment and long-term receivables and etc.In addition provision for impairment and confirmation of credit impairment losses are also made for contract

assets and some financial guarantee contracts in accordance with the accounting policies described in this section.

(1) Method of confirming impairment provision

Based on anticipated credit loss the Company calculates impairment preparation and confirms credit

impairment loss according to the applicable anticipated credit loss measurement method (general method or

simplified method).Credit loss refers to the difference between the cash flow of all contracts discounted according to the

original real interest rate and the expected cash flow of all contracts receivable according to the contract that is

the present value of all cash shortages. Among them the Company discounts the financial assets purchased or

originated with credit impairment at the actual interest rate adjusted by credit.The general method of measuring anticipated credit loss is whether the credit risk of the Company's

financial assets (including other applicable items such as contract assets similarly hereinafter) has increased

69Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly

since the initial recognition the Company shall measure the loss preparation according to the amount equivalent

to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial

recognition the Company shall measure the loss preparation according to the amount equivalent to the expected

credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information

including forward-looking information when evaluating expected credit losses.Assuming that their credit risk has not increased significantly since the initial recognition the Company may

choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial

instruments with low credit risk on the balance sheet date.

(2) Criteria for judging whether credit risk has increased significantly since the initial recognition

If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly

higher than the probability of default during the estimated duration of the initial recognition the credit risk of the

financial asset is significantly increased. Except for special circumstances the Company uses the change of

default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to

determine whether the credit risk has increased significantly since the initial recognition.

(3) A portfolio-based approach to assessing expected credit risk

The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk such as

the related party's receivables the receivables in dispute with the other party or involving litigation and arbitration

and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment etc.In addition to the financial assets that assess credit risk individually the Company shall divide financial

assets into different groups based on common risk characteristics and assess credit risk on the basis of portfolio.

(4) Accounting treatment of impairment of financial assets

At the end of the duration the Company shall calculate the anticipated credit losses of various financial

assets. If the anticipated credit losses are greater than the book value of its current impairment provision the

difference is deemed as impairment loss. If the balance is less than the book value of the current impairment

provision the difference is deemed as impairment profit.

(5) Method of determining credit losses of various financial assets

* Receivable Account and Contract assets

In regard to receivables without significant financing components the Company shall measure loss

preparation according to the amount of anticipated credit loss equivalent to the entire duration.In regard to accounts receivable with significant financing components the Company shall choose to

measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the

time.In addition to the accounts receivable that assesses the credit risk individually receivables are divided into

different portfolios based on their credit risk characteristics:

Items Basis for determining combination:

Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit risk.Portfolio 2 ： Quality Guarantee This portfolio is the contract quality guarantee fund and other funds

portfolio

For the above portfolio 1 the measurement method of bad debts reserve is the aging analysis method

specifically as follows：

Aging Proportion（%）

Within 1 year（Including 1 year） 0

1-2 years 10

2-3 years 30

3-4 years 50

70Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

4-5 years 90

Over 5 years 100

For the guarantee fund portfolio of portfolio 2 no provision for bad debts shall be made unless there is

objective evidence that the money cannot be recovered according to the original terms of accounts receivable and

contract assets.* Other receivable

The Company has measured the impairment loss based on the amount of expected credit losses in the next

12 months or the entire duration based on whether the credit risk of other receivables has increased significantly

since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually

they are divided into different portfolios based on their credit risk characteristics:

Items Basis for determining combination:

Protfolio 1 This portfolio is a collection of various deposits advances pledges and other

receivables in daily activities.Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business

activities.Protfolio 3 Other receivables other than the above portfolio.Combination of deposit quality assurance fund and deposit and reserve fund combination except for

objective evidence that the Group will not be able to recover the amount according to the original terms of

receivables will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for

other combinations is aging analysis and the accrual proportion is the same as accounts receivable.* Creditor's rights investment

Creditor's rights investment mainly accounts for bond investment measured by amortized cost etc. The

Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months

or the entire duration based on whether the credit risk has increased significantly since the initial recognition. The

Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.

11.Inventory

1.Investories class:

The company’s stocks can be classified as: raw materials etc.

2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the

weighted averages method or the first-in first-out method.

3 Measurement of ending inventory

On the balance sheet date inventory shall be measured at the lower of cost and net realizable value. If the

cost of inventory is higher than its net realizable value provision for inventory depreciation shall be accrued and

recorded into the current profits and losses.If the difference between the cost calculated by a single inventory item and its net realizable value is higher

the inventory depreciation reserve shall be accrued and recorded into the current profits and losses. Net realizable

value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred

upon completion estimated sales expenses and related taxes and fees.

4. Physical inventories are managed by the perpetual inventory taking system.

12.Contract assets and Contract liabilities

In the contract between the Company and customers the Company has the right to charge the contract price

for the goods and related services that have been transferred to customers and meanwhile undertake the

performance obligation of transferring the goods or services to customers. When the customer actually pays the

71Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

contract consideration or the enterprise has transferred the goods or services to the customer before the

consideration becomes due and payable the right to receive the consideration due to the transferred goods or

services shall be listed as contract assets and recognized as accounts receivable or long-term receivables when the

unconditional right of collection is obtained. `

13. Long-term equity investments

(1) Initial measurement

The Company makes initial measurement of long-term equity investment in the following two situations:

* The initial investment cost of long-term equity investment formed by business combination shall be

determined in accordance with the following provisions:

A. In a business combination under the same control if the combining party pays cash transfers non-cash

assets or assumes debts as the combination consideration the share of the book value of the owner's equity of the

merged party in the consolidated financial statements of the final controlling party shall be taken as the initial

investment cost of long-term equity investment on the combination date. The difference between the initial

investment cost of long-term equity investment and the cash paid the transferred non-cash assets and the book

value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset

the retained earnings shall be adjusted. All directly related expenses incurred for business combination including

audit fees evaluation fees legal service fees etc. are included in the current profits and losses when they occur.B. In the business combination not under the same control the Company determines the combination cost by

distinguishing the following situations:

a) For business combination realized by one exchange transaction the cost of combination is the fair value of

assets paid liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;

b) For business combination realized step by step through multiple exchange transactions the sum of the

book value of the equity investment of the purchased party held before the purchase date and the new investment

cost on the purchase date shall be taken as the initial investment cost of the investment;

c) Intermediary expenses such as auditing legal services evaluation and consultation and other related

management expenses incurred for business combination are included in the current profits and losses when they

occur;

d) If future events that may affect the combination cost are agreed in the combination contract or agreement

if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the

combination cost can be reliably measured they will be included in the combination cost.* Except for the long-term equity investment formed by business combination the initial investment cost of

long-term equity investment obtained by other means shall be determined in accordance with the following

provisions:

A. For the long-term equity investment obtained by cash payment the actual purchase price shall be taken as

the initial investment cost. Initial investment cost includes expenses taxes and other necessary expenditures

directly related to obtaining long-term equity investment.B. For long-term equity investment obtained through exchange of non-monetary assets the initial investment

cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of Non-

monetary Assets.C. For long-term equity investment obtained through debt restructuring the initial investment cost shall be

determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.* No matter how the long-term equity investment is obtained when the investment is obtained the cash

dividends or profits included in the paid consideration that have been declared but not yet issued by the investee

are separately accounted as receivable items which does not constitute the initial investment cost of obtaining the

72Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

long-term equity investment.

(2) Subsequent measurement

Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in

individual financial statements. Long-term equity investments that have joint control or significant influence on

the investee shall be accounted by equity method.* Long-term equity investment accounted by cost method is priced according to the initial investment cost。

Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits

declared and distributed by the investee shall be recognized as current investment income.If the initial investment cost of long-term equity investment accounted by equity method is greater than the

fair value share of identifiable net assets of the investee the initial investment cost of long-term equity investment

shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share

of the identifiable net assets of the investee at the time of investment the difference shall be included in the

current profits and losses and the cost of long-term equity investment shall be adjusted at the same time.After obtaining the long-term equity investment the investment income and other comprehensive income

shall be recognized respectively according to the share of the net profit and loss and other comprehensive income

realized by the invested unit and the book value of the long-term equity investment shall be adjusted at the same

time; According to the profit or cash dividend declared and distributed by the investee the book value of long-

term equity investment shall be reduced accordingly; The book value of the long-term equity investment is

adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net

profit and loss other comprehensive income and profit distribution. When recognizing the share of the net profit

and loss of the investee the net profit of the investee is recognized after adjustment based on the fair value of the

identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and

accounting periods adopted by the investee are inconsistent with those of the Company the financial statements of

the investee shall be adjusted according to the accounting policies and accounting periods of the Company and

the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by

the investee is recognized to be written down to zero by the book value of long-term equity investment and other

long-term interests that substantially constitute the net investment of the investee unless the Company is obligated

to bear additional losses. If the investee achieves net profit in the future the Company will resume the recognition

of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing

amount.When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee the

unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated

according to the proportion that should be enjoyed and the part attributable to the Company shall be offset and

the investment income shall be recognized on this basis. Unrealized internal transaction losses between the

Company and the investee are asset impairment losses which shall be fully recognized.Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital

institutions mutual funds trust companies or similar entities including investment-linked insurance funds.Regardless of whether the above entities have a significant impact on this part of investment the Company

chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in

accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and

Measurement of Financial Instruments and the rest is accounted for by equity method.* When the Company disposes of long-term equity investment the difference between its book value and

the actual purchase price shall be included in the current profits and losses. For long-term equity investment

accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct

73Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

disposal of related assets or liabilities and accounts for the part originally included in other comprehensive

income according to the corresponding proportion.

(3) Basis to determine joint control over and significant influence on the investee

Joint control refers to the common control of an arrangement in accordance with the relevant agreement and

the relevant activities of such arrangement must be unanimously agreed by the participants who share the control

rights before making decisions. Significant influence means that the investor has the right to participate in the

decision-making on the financial and operating policies of the investee but cannot control or jointly control the

formulation of these policies with other parties. When determining whether the investee can be controlled or exert

significant influence the potential voting rights factors such as current convertible bonds and current executable

warrants of the investee held by the Company and other parties shall be considered at the same time.

14.Investment Property

The measurement mode of investment property

The measurement by the cost method

Depreciation or amortization method

Investment property is held to earn rentals or for capital appreciation or for both. Investment property

includes leased or ready to transfer after capital appreciation land use rights and leased buildings.

（1）The measurement mode of investment property

* Depreciation or amortization method

The estimated service life net salvage value rate and annual depreciation (amortization) rate of investment

real estate are listed as follows:

Type Estimated service lifeEstimated net salvage valueAnnual depreciation

(years) rate (amortization) rate

Land use right Remaining useful life

Houses and buildings 20-30 years 3%-10% 3%-4.85%

* Impairment test method and accounting treatment method

See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual

methods of investment real estate.

(2) Conversion of investment real estate

The Company has conclusive evidence that the use of real estate has changed. When converting investment

real estate into self-use real estate or inventory the fair value on the day of conversion is taken as the book value

of self-use real estate and the difference between fair value and original book value is included in current profits

and losses. When self-use real estate or inventory is converted into investment real estate measured by fair value

model the investment real estate is priced according to the fair value on the conversion day. If the fair value on

the conversion day is less than the original book value the difference is included in the current profits and losses;

If the fair value on the conversion date is greater than the original book value the difference shall be included in

other comprehensive income.

15.Fixed assets

（1）Confirmation conditions

The Company's fixed assets refer to tangible assets held for the production of commodities provision of

labor services leasing or operation management which have a service life of more than one year and whose

economic benefits are likely to be included into the Company and whose costs can be reliably measured.

（2）Depreciation method

Type Depreciation Expected useful Residual Annual depreciation

74Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

method life(Year) rate（%） rate(%)

Guangfo Expressway Working flow basis 28 years 0%

Fokai Expressway-Xiebian to Sanbao

Section Working flow basis 40 years 0%

Fokai Expressway-Sanbao to Shuikou

Section Working flow basis 47.5 years 0%

Jingzhu Expressway Guangzhu Section Working flow basis 30 years 0%

Guanghui Expressway Co. Ltd. Working flow basis 23 years 0%

House Building The straight-line

method 20-30 years 3%-5% 3.17%-4.85%

Machine Equipment The straight-linemethod 3-10 years 3%-5% 9.50%-32.33%

Transportation Equipment The straight-linemethod 5-8 years 3%-5% 11.88%-19.40%

Other The straight-linemethod 5 years 3%-5% 19.00%-19.40%

* The Company's fixed assets include roads and bridges houses and buildings machinery and equipment

electronic equipment transportation tools and other equipment.* For the fixed assets formed by special reserve expenditure the special reserve shall be offset according to

the cost to form the fixed assets and the accumulated depreciation of the same amount shall be recognized. The

fixed assets will not be depreciated in future periods.According to the nature and usage of fixed assets the Company determines the service life and estimated net

salvage value of fixed assets. At the end of the year the service life estimated net salvage value and depreciation

method of fixed assets shall be rechecked and if there is any difference with the original estimate corresponding

adjustments shall be made.

16.Construction-in process

The construction in progress of the Company refers to the plant equipment and other fixed assets under

construction which are accounted for in detail according to the project and recorded according to the actual cost

including direct construction and installation costs and borrowing costs that meet the capitalization conditions.When the construction in progress reaches the scheduled usable state it will be carried over to fixed assets by

temporary estimation stop interest capitalization and start to accrue depreciation according to the determined

depreciation method of fixed assets. After the project is completed and final accounts are made the original

estimated amount will be adjusted according to the amount of final accounts but the original accrued depreciation

amount will not be adjusted.

17.Borrowing cost

(1) Recognition principle and capitalization period of borrowing cost capitalization

Borrowing costs incurred by the Company can be directly attributed to the purchase construction or

production of assets that meet the capitalization conditions and shall be capitalized when the following conditions

are met at the same time and included in the relevant asset costs:

* Production and expenditure have occurred;

* Borrowing costs have already occurred;

* The purchase construction or production activities required to make the assets reach the intended usable

or saleable state have started.Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are

abnormally interrupted in the process of purchase construction or production and the interruption time

continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as

75Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

expenses and included in the current profits and losses until the purchase and construction of assets or the

resumption of production activities. If the interruption is a necessary procedure for the purchased built or

produced assets that meet the capitalization conditions to reach the intended usable or saleable state the

capitalization of borrowing costs will continue.Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built

or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as

expenses in the current period.

(2) Calculation method of capitalization amount of borrowing costs

Where a special loan is borrowed for the purpose of purchasing building or producing assets that meet the

capitalization conditions it shall be determined by deducting the interest income obtained by depositing unused

loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the

investment income obtained by temporary investment.If the general loan is occupied for the purpose of purchasing building or producing assets that meet the

capitalization conditions the interest amount of the general loan that should be capitalized shall be calculated and

determined according to the weighted average of the accumulated asset expenditure exceeding the special loan

portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and

determined according to the weighted average interest rate of general borrowings.

18.Intangible assets

(1) Pricing method useful life and impairment test

The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as

intangible assets which have no physical form and the estimated future economic benefits related to the assets

are likely to flow into the enterprise and the cost of the assets can be reliably measured.The intangible assets of the Company are recorded according to the amount actually paid or the determined

value.

(2) If the purchase price of intangible assets exceeds the normal credit conditions which is of financing

nature in essence the cost of intangible assets is determined based on the present value of the purchase price. The

difference between the actual paid price and the present value of the purchase price shall be included in the

current profits and losses within the credit period except that it should be capitalized according to the regulations.

(3) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the

investment contract or agreement unless the value agreed in the contract or agreement is unfair.

(4) The expenditure of internal research and development projects of the Company is divided into research

stage expenditure and development stage expenditure. Research refers to an original and planned investigation to

acquire and understand new scientific or technical knowledge. Development refers to the application of research

results or other knowledge to a plan or design to produce new or substantially improved materials devices and

products before commercial production or use.Expenditures during the research phase of internal research and development projects are included in the

current profits and losses when they occur. Expenditures in the development stage of internal research and

development projects that meet the following conditions are recognized as intangible assets: it is technically

feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the

intangible assets and use or sell them; The ways in which intangible assets generate economic benefits including

those that can prove that there is a market for products produced by using the intangible assets or that the

intangible assets themselves exist in the market and that the intangible assets will be used internally should prove

their usefulness; Have sufficient technical financial and other resources to complete the development of the

76Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the

development stage of the intangible assets can be measured reliably.Intangible assets with limited service life of the Company shall be amortized on average within the service

life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its

cost. For intangible assets for which impairment provision has been made the accumulated amount of impairment

provision for intangible assets has to be deducted.The amortization period of intangible assets with limited service life is as follows:

Type Amortization period

Land use right Remaining useful life

Software 3-5 years

Toll road franchises Operating period for residual charges

19. Long-term amortizable expenses

Long-term deferred expenses are recorded according to the actual amount incurred and are amortized

equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense

item cannot benefit the future accounting period the amortized value of the item that has not been amortized will

be transferred to the current profits and losses.

20. Employee Benefits

Employee compensation refers to various forms of remuneration or compensation given by the Company for

obtaining services provided by employees or dissolving labor relations. Employee compensation includes short-

term salary post-employment benefits dismissal benefits and other long-term employee benefits. Benefits

provided by the Company to spouses children dependents survivors of deceased employees and other

beneficiaries of employees are also employee compensation.

（1）Accounting methods of short-term benefits

During the accounting period when employees provide services the Company recognizes the actual short-term

salary as a liability which is included in the current profits and losses except that other accounting standards

require or allow it to be included in the cost of assets.

(2) Accounting methods for post-employment benefits

The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit

plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on

post-employment benefits or the rules or measures formulated by the Company to provide post-employment

benefits to employees among which the set deposit plan refers to the post-employment welfare plan in which the

Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;

Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.

(3) Accounting Treatment Method of Demission Welfare

If the Company provides dismissal benefits to employees the employee compensation liabilities arising from

the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when

the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations

plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization

involving the payment of dismissal benefits.

（4）Other long-term employee benefits

If other long-term employee benefits provided by the Company to employees meet the conditions of the set

deposit plan they shall be handled according to the accounting policies of the set deposit plan mentioned above;

77Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Otherwise the net liabilities or net assets of other long-term employee benefits shall be recognized and measured

in accordance with the accounting policies of defined benefit plans mentioned above.

21.Estimated liabilities

(1) Recognition criteria of estimated liabilities

If the obligations related to contingencies stipulated by the Company meet the following conditions at the

same time they are recognized as estimated liabilities:

* The obligations are the current obligations undertaken by the enterprise;

* Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;

* The amount of the obligations can be measured reliably.

(2) Measurement method of estimated liabilities

Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill

relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence

of various results in this range is the same and the best estimate is determined according to the intermediate value

in this range. In other cases the best estimates are treated as follows:

* Contingencies involving a single item shall be determined according to the most probable amount.* Contingencies involving multiple items shall be calculated and determined according to various possible

results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies

shall be considered comprehensively. If the time value of money has great influence the best estimate is

determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be

compensated by a third party the compensation amount can be recognized as an asset only when it is basically

confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the

estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is

conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be

adjusted according to the current best estimate.

22. Revenues

Accounting policies adopted for income recognition and measurement

(1) Revenue recognition principle

Since the starting date of the contract the company shall evaluate the contract identifies each individual

performance obligation contained in and determines whether each individual performance obligation is

performed within a certain period of time or at a certain point of time.The performance obligation is defined as fulfillment within a certain period of time if one of the following

conditions is met otherwise it is defined as fulfilled at a certain point in time: * The customer obtains and

consumes the economic benefits brought by the company's performance while the company performs the contract;

* The customer can control the goods under manufacturing or services during the company's performance; *

The goods or services produced during the company's performance have irreplaceable uses and the company has

the right to accumulate for the completed performances during the entire contract period.For obligations performed within a certain period of time the company recognizes revenue in accordance

with the performance progress in that period. If the performance progress cannot be reasonably determined and

78Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

the cost incurred is expected to be compensated the revenue shall be recognized according to the amount of the

cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain

point in time revenue shall be recognized at the point when the customer obtains control of the relevant goods or

services. When judging whether the customer has obtained control of the product the company shall consider the

following points: * The company has the current right to receive payment for the product that is the customer

has the current payment obligation for the product; * The company has transferred the legal ownership of the

product to the customer that is the customer has the legal ownership of the product; * The company has

transferred the physical product to the customer that is the customer has physically taken possession of the

product; * The company has transferred the main risks and rewards on the ownership of the product to the

customer that is the customer has obtained the main risks and rewards on the ownership of the product; * The

customer has accepted the product;* Other signs that the customer has obtained control of the product.

(2) Principle of revenue measurement

* The company shall measure revenue based on the transaction price allocated to each individual

performance obligation. The transaction price is the amount of consideration that the company expects to be

entitled to receive due to the transfer of goods or services to customers while does not include payments received

on behalf of third parties and payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine its best estimate according

to the expected value or the most likely amount but the transaction price including the variable consideration shall

not exceed the accumulated amount that if relevant uncertainty is eliminated will most likely have no significant

reversal.* If there is any significant financing component in the contract the company shall determine the

transaction price based on the amount payable in cash when the customer assumes control of the goods or services.The difference between transaction price and contract consideration shall be amortized through effective interest

method during the contract period. On the starting date of contract if the company expects that the customer will

obtain control of the goods or services and pays the price within one year the significant financing component in

contract shall not be considered.* If the contract contains two or more performance obligations the company shall on date of the contract

allocate the transaction price to each individual obligation item in accordance with the relative proportion of the

separate selling price of promised goods.The adoption of different business models in similar businesses leads to differences in accounting policies for

revenue recognition

(3) Specific methods of revenue recognition

* Toll service fee income

The toll income of roads and bridges is determined according to the amount collected and receivable by

vehicles when passing through.* Income from providing labor services

For services started and completed in the same fiscal year income is recognized when the services are

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor

services can be reliably measured; * the economic benefits related to the transaction can flow into the enterprise;

* the degree of completion of labor services can be reliably determined.For services started and completed in the same fiscal year income is recognized when the services are

79Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor

services can be reliably measured;* the economic benefits related to the transaction can flow into the enterprise;

If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably the

following situations shall be dealt with respectively:

* If the labor cost already incurred is expected to be compensated the income from the service shall be

recognized according to the amount of the labor cost already incurred and the labor cost shall be carried over at

the same amount.* If the incurred labor cost is not expected to be compensated the incurred labor cost shall be included in the

profits and losses of the current period and the income from the provision of labor service shall not be recognized.When the contracts or agreements signed between the Company and other enterprises include selling goods

and providing services if the part for selling goods and the part for providing services can be distinguished and

measured separately the part for selling goods will be treated as goods sales and the part for providing services

will be treated as service provision. Sales of goods and services can not be distinguished or although they can be

distinguished they can not be measured separately. All parts for the selling goods and providing services will be

treated as sales of goods.The adoption of different business models in similar businesses leads to differences in accounting policies for

income recognition

23. Government Grants

Government subsidies are recognized when they meet the conditions attached to government subsidies and

can be received.Government subsidies for monetary assets shall be measured according to the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained

reliably it shall be measured according to the nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Company for

purchasing and building or forming long-term assets in other ways; Otherwise as a government subsidy related to

income.Where the government documents do not specify the object of the subsidy and the subsidy can form long-

term assets the part of the government subsidy corresponding to the value of the assets shall be regarded as the

government subsidy related to the assets and the rest shall be regarded as the government subsidy related to the

income; Where it is difficult to be distinguished government subsidies as a whole are treated as income-related

government subsidies.Government subsidies related to assets offset the book value of related assets or are recognized as deferred

revenue and included in profits and losses by stages according to a reasonable and systematic method within the

service life of related assets. Government subsidies related to income which are used to compensate related costs

or losses that have occurred shall be included in current profits and losses or offset related costs; If they are used

to compensate related costs or losses in later periods they will be included in the deferred revenue and they will

be included in the current profits and losses or offset related costs during the recognition period of related costs or

losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The

Company adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities according to the essence of economic business are included

80Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into

the non-operating receipt and disbursement.When the recognized government subsidy needs to be returned if the book value of related assets is offset

during initial recognition the book value of assets will be adjusted; If there is a relevant deferred revenue balance

the book balance of the relevant deferred revenue will be offset and the excess will be included in the current

profits and losses; In other cases it is directly included in the current profits and losses.

24.Deferred income tax assets and deferred income tax liabilities

The Company adopts the balance sheet liability method for income tax accounting treatment.

(1) Deferred tax assets

* If there is a deductible temporary difference between the book value of an asset or liability and its tax

basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and

confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the

liability.* On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be

obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax

assets in the previous period shall be recognized.* On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely

that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax

assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely

to be obtained the written-down amount will be reversed.

(2) Deferred income tax liabilities

If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis

the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to

the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.

25.Lease

(1) Identification of lease

On the commencement date of the contract the Company as the lessee or lessor evaluates whether the

customers in the contract have the right to obtain almost all economic benefits arising from the use of the

identified assets during the use period and has the right to lead the use of the identified assets during the use

period. If one party to the contract transfers the right to control the use of one or multiple identified assets within a

certain period of time in exchange for consideration the Company will consider the contract as lease or lease-

included.

（2）The Company as the lessee

On the start date of the lease term the Company recognizes the right-to-use assets and lease liabilities for all

leases except for short-term leases and low-value asset leases that are simplified.The accounting policy of the right-to-use assets is shown in Note V. 26.Lease liabilities are initially measured according to the unpaid lease payment amount on the start date of the

lease term and the present value calculated according to the implied interest rate of the lease or the incremental

borrowing interest rate. The lease payment amount includes: fixed payment amount and substantial fixed payment

amount. If there is lease incentive the related amount of lease incentive shall be deducted; variable lease

payments depending on index or ratio; the exercise price of the option provided that the lessee reasonably

determines that the option will be exercised; payment for exercising the option to terminate the lease provided

81Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

that the lease period reflects that the lessee will exercise the option to terminate the lease; and the amount

expected to be paid according to the residual guarantee value provided by the lessee. The interest expense of the

lease liability in each period of the lease term shall be calculated subsequently according to the fixed periodic

interest rate and included in the current profit and loss. Variable lease payments that are not included in the

measurement of lease liabilities are included in the current profits and losses when actually incurred.Short-term lease

Short-term lease refers to the lease with a lease term of no more than 12 months on the start date of the lease

term except for the lease with purchase option.The Company includes the lease payment of short-term lease into the related asset cost or current profit and

loss according to the straight-line method in each period of the lease term.Low-value asset lease

Low-value asset lease refers to the lease in which the value of a single leased asset is less than RMB 100000

when it is brand new.The Company includes the lease payment of low-value assets into the related asset cost or current profit and

loss according to the straight-line method in each period of the lease term.For the lease of low-value assets the Company chooses to adopt the simplified treatment method mentioned

above according to the specific conditions of each lease.

(3) The Company serves as the lessor

The Company when as the lessor recognizes the leases that have substantially transferred all risks and

rewards related to asset ownership as financial leases and other leases except financial leases as operating leases.Accounting methods for operating leases

For the rent in the operating lease the Company recognizes the current profits and losses according to the

straight-line method in each period of the lease term. The initial direct expenses incurred in connection with the

operating lease shall be capitalized allocated on the same basis as the rental income recognition during the lease

term and included in the current profits and losses by stages. The variable lease payments obtained related to

operating leases that are not included in the lease receipts are included in the current profits and losses when they

actually occur.Accounting treatment method of leasing

In financing lease at the beginning of the lease term Japanese companies take the net investment in leasing

as the recorded value of the financing lease receivable and the net investment in leasing is the sum of the

unsecured residual value and the present value of the lease proceeds that have not yet been received on the start

date of the lease term discounted according to the implied interest rate of the lease. As the lessor the Company

calculates and recognizes the interest income of each period in the lease term according to the fixed periodic

interest rate. The variable lease payments obtained by the Company as the lessor that are not included in the

measurement of net lease investment are recorded into the current profits and losses when they actually occur.The derecognition and impairment of financial lease receivables shall be treated according to the provisions

of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments

and Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.

26.The right to use assets

(1) Conditions for recognition of the right-to-use assets

The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets

during the lease term.On the start date of the lease term the right-to-use assets are initially measured at cost. The cost includes:

82Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

The initial measurement amount of lease liabilities; if there is lease incentive for the lease payment issued on or

before the start date of the lease term the amount related to the lease incentive enjoyed shall be deducted; initial

direct expenses incurred by the Company as the lessee; the estimated costs that the Company as the lessee will

incur for dismantling and removing the leased assets restoring the leased assets' site or restoring the leased assets

to the state agreed in the lease terms. The Company as the lessee recognizes and measures the demolition and

restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. It

makes subsequent adjustments to any remeasurement of lease liabilities.

(2) Depreciation method of right-to-use assets

The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can be

reasonably determined that the ownership of the leased asset is acquired at the expiration of the lease term it shall

accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine

that the ownership of the leased asset can be acquired at the expiration of the lease term it shall accrue

depreciation within the shorter of the lease term and the remaining service life of the leased asset.

(3) See "27. Impairment of Assets" in "Section V Important Accounting Policies and Accounting Estimates"

for the impairment test method and the provision method for impairment of right-to-use assets.

27. Impairment of assets

The following signs indicate that the assets may be impaired:

(1) The market price of assets fell sharply in the current period which was significantly higher than the

expected decline due to the passage of time or normal use.

(2) The economic technical or legal environment in which the Company operates and the market in which

the assets are located have undergone major changes in the current period or in the near future which will have

adverse effects on the Company.

(3) The market interest rate or other market return on investment has increased in the current period which

affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of

assets resulting in a significant decrease in the recoverable amount of assets.

(4) There is evidence that the assets are outdated or their entities have been damaged.

(5) Assets have been or will be idle terminated or planned to be disposed of in advance.

(6) The evidence reported by the company shows that the economic performance of assets has been or will

be lower than expected such as the net cash flow created by assets or the realized operating profit (or loss) is far

lower than the expected amount.

(7) Other indications that assets may have been impaired.

On the balance sheet date the Company judges various assets that are applicable to the Accounting

Standards for Business Enterprises No.8-Impairment of Assets such as long-term equity investment fixed assets

engineering materials construction in progress intangible assets (except those with uncertain service life) and

conducts impairment test when there are signs of impairment-estimating their recoverable amount. The

recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal

expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset

is lower than its book value the book value of the asset shall be written down to the recoverable amount and the

written-down amount shall be recognized as the asset impairment loss which shall be included in the current

profits and losses and the corresponding asset impairment reserve shall be accrued at the same time.If there are signs that an asset may be impaired the Company usually estimates its recoverable amount on the

basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset the recoverable

amount of the asset group is determined based on the asset group to which the asset belongs.

83Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Asset group is the smallest asset portfolio that can be recognized by the Company and its cash inflow is

basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The

identification of asset group is based on whether the main cash inflow generated by asset group is independent of

other assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and service

life formed by business combination and not yet in serviceable condition regardless of whether there is any sign

of impairment. The impairment test of goodwill is carried out in combination with its related asset group or

combination of asset groups.Once the asset impairment loss is confirmed it will not be reversed in the following accounting period.

28. Fair value measurement

Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly

transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of

selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no

major market the Company assumes that the transaction will be conducted in the most favorable market of related

assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can

enter on the measurement day. The Company adopts the assumptions used by market participants to maximize

their economic benefits when pricing the assets or liabilities.When measuring non-financial assets at fair value the ability of market participants to use the assets for the

best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best

purpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by

sufficient available data and other information and gives priority to the relevant observable input values and only

uses the unobservable input values when the observable input values are unavailable or impractical.For assets and liabilities measured or disclosed at fair value in financial statements it shall determine the fair

value level according to the lowest level input value which is of great significance to fair value measurement as a

whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained

on the measurement date in an active market; The second-level input value is directly or indirectly observable

input values of related assets or liabilities except the first-level input value; The third level input value is the

unobservable input value of related assets or liabilities.On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial

statements that are continuously measured at fair value to determine whether there is a conversion between the

fair value measurement levels.

29.Change of main accounting policies and estimations

(1)Change of main accounting policies

□Applicable√ Not applicable

（2）Significant estimates changes

□Applicable√ Not applicable

84Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

VI. Taxation

1. Major category of taxes and tax rates

Tax category Tax basis Tax rate

VAT Taxable income 3%5%6%9%13%

City maintenance and construction tax The actual payment of turnover tax 5%7%

Enterprise income tax Taxable income 25%

Education Fee Surcharge The actual payment of turnover tax 3%

Local education surcharge The actual payment of turnover tax 2%

2.Preferential tax

None

VII. Notes to the major items of consolidated financial statement

1.Monetary Capital

In RMB

Items Amount in year-end Balance Year-beginning

Cash 48820.81 38214.02

Bank deposit 3996364772.14 2955850944.81

Including：Money deposited with a

finance Company 2658370523.01 1521003542.69

Other 47802256.12 515231.72

Total 4044215849.07 2956404390.55

Other note

As of June 302022The balance of restricted bank deposits at the end of the period was 1221200.00 yuan which

was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion

project of Sanbao to Shuikou section of Fokai Expressway.

85Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

2. Account receivable

1.Classification account receivables.

In RMB

Amount in year-end Balance Year-beginning

Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value

Amount Proporti Amount Proporti Amount Proporti Amount Proport

on(%) on(%) on(%) ion(%)

Accrual of bad debt 25.62

6259752.004.88%3143664.0050.22%3116088.0012268880.607.44%3143664.009125216.60

provision by single %

Including：

Other receivables for bad

debt provision according to

122114434.8495.12%122114434.84152527300.1792.56%2599116.901.70%149928183.27

the combination of credit

risk characteristics

Including：

Total 128374186.84 3143664.00 125230522.84 164796180.77 5742780.90 159053399.87

86Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(1)Accrual of bad debt provision by single：

In RMB

Balance in year-end

Name Bad debt WithdrawalBook balance Reason

provision proportion

There is a dispute in the

Guangdong Taiheng Expressway

6259752.00 3143664.00 50.22 second instance of

Development Co. Ltd.litigation

Total 6259752.00 3143664.00 /

Accounts receivables with bad debt provision are recognised by portfolio by age

In RMB

Balance in year-end

Aging Expected credit loss rate

Account receivable Bad debt provision

Within 1 year 122114434.84

Total 122114434.84

Where the current bad debts back or recover significant amounts:None

Disclosure by aging

In RMB

Aging Balance in year-end

Within 1 year 123153130.84

1-2 years 2077392.00

2-3 years 2077392.00

3-4 years 1066272.00

Subtotal 128374186.84

Bad debt provision 3143664.00

Total 125230522.84

(2) Accounts receivable withdraw reversed or collected during the reporting period

The provision for bad debts in the current period is RMB 0.60; and the amount of bad debt reserve recovered

or reversed in the current period is RMB0.

（3）The current accounts receivable write-offs situation

None

（4）The ending balance of other receivables owed by the imputation of the top five parties

In RMB

Name Amount Aging Proportion(%) Bad debt

provision

Guangdong Union Electronic 74737143.16 Within 1 year 58.22%

87Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Services Co. Ltd.Guangdong Humen Bridge Co. Ltd. 20346943.38 Within 1 year 15.85%

Guangdong Lulutong Traffic Development Within 1 year

19458333.3115.16%

Co. Ltd.

1038696.00 Within 1 year 0.81%

Guangdong Taiheng Expressway 2077392.00 1-2 years 1.62%

Development Co. Ltd. 2077392.00 2-3 years 1.62% 2077392.00

1066272.00 3-4 years 0.83% 1066272.00

Guangdong Jingzhu Expressway Guangzhu Within 1 year

5484999.994.27%

North Section Co. Ltd.Total 126287171.84 98.38%

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets

None

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts

receivable

None

3. Prepayments

（1）Aging analysis

In RMB

Balance in year-end Balance Year-beginning

Aging Amount Proportion（%） Amount Proportion（%）

Within 1 year 5581764.07 97.55% 5087647.09 97.32%

1-2 years 140000.00 2.45% 140000.00 2.68%

Total 5721764.07 5227647.09

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:

None

(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target

In RMB

Name Relations with Amount Aging Reasons for non- Proportion %

the Company settlement

Within 1 year No settlement

Guangdong Lulutong Co.Related party 1775852.40 conditions have 31.04

Ltd.been reached

China Ping An Property Non- Related Within 1 year No settlement

Insurance Co. Ltd. party

Guangdong Branch 1695053.75 conditions have 29.62

been reached

Within 1 year No settlement

Guangzhou Automobile Non- Related

675288.00 conditions have 11.80

Trading Co. Ltd. party

been reached

Within 1 year No settlement

China Insurance Non- Related

640454.00 conditions have 11.19

Guangdong Branch party

been reached

Within 1 year No settlement

Guangzhou Peak Grid Non- Related

523717.92 conditions have 9.15

Power Equipment Co. Ltd. party

been reached

88Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Total 5310366.07 92.80

4.Other accounts receivable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend receivable 1205472.90 1205472.90

Other receivable 12642060.80 12555651.33

Total 13847533.70 13761124.23

（1）Interest receivable：None

（2）Dividend receivable

1) Dividend receivable

In RMB

Items Balance in year-end Balance Year-beginning

Guangdong Radio and Television Networks

investment No.1 Limited partnership enterprise 1205472.90 1205472.90

Total 1205472.90 1205472.90

2）Significant dividend receivable aged over 1 year

In RMB

Items Balance in year-end Aging Reasons for non-

Whether with

recovery impairment andthe judgment basis

The partnership

Guangdong Radio and Television agreement expires and No it can be

Networks investment No.1 Limited 1205472.90 3-4 years can be recovered after

partnership enterprise the extension

recovered in the

procedures are future

completed

Total 1205472.90

3）The bad debt provision

□ Applicable √ Not applicable

89Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

（3） Other accounts receivable

1) Other accounts receivable classified

In RMB

Balance in year-end Balance Year-beginning

Category Book balance Bad debt provision Book balance Bad debt provision

Amount Proporti Amount Proporti Book value Amount Proporti Amount Proport Book valueon (%) on (%) on (%) ion (%)

Other receivables for

individual bad debt 30844110.43 70.93 30844110.43 100.00 0.00 51535736.09 80.37 51535736.09 100.00 0.00

provision

Other receivables for bad

debt provision according to

the combination of credit 12642060.80 29.07 12642060.80 12588109.31 19.63 32457.98 0.26 12555651.33

risk characteristics

Total 43486171.23 30844110.43 12642060.80 64123845.40 51568194.07 12555651.33

90Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Disclosure by aging

In RMB

Aging Balance in year-endOther receivable Bad debt provision Expected credit loss rate(%)

Within 1 year 4932468.66

1-2 years 2761370.09

2-3 years 3465247.71

3-4 years 29980.70

4-5 years 575651.76

Over 5 years 31721452.31 30844110.43 97.23%

Total 43486171.23 30844110.43

Accrual of bad debt provision by single：

In RMB

Closing book balance

Bad Debt Reserves Book balance Bad debt Expected credit lossprovision rate(%) Reason

Bad debts have been

Kunlun Securities Co. Ltd（Note 1） 30844110.43 30844110.43 100.00% fully withdrawn in

bankruptcy

Total 30844110.43 30844110.43 100.00%

Disclosure by aging

In RMB

Balance in year-end Balance Year-beginning

Aging Book balance Book balance Bad debt

Amount Proportion % Bad debt（） provision Amount Proportion（%） provision

Within 1 year 3829032.21 100.00% 2959338.22 98.92%

1-2 years

2-3 years

3-4 years

4-5 years

Over 5 years 32457.98 1.08% 32457.98

Total 3829032.21 2991796.20 32457.98

In the portfolio other receivables with bad debt provision by other methods:

In RMB

Balance in year-end Balance Year-beginning

Name Book balance Bad debt Expected credit Bad debt

Expected

provision loss rate(%) Book balance provision credit lossrate(%)

Deposit money and

quality guarantee 7493571.63 8815245.54

fund combination

Other 1319456.96 781067.57

Total 8813028.59 9596313.11

2）The withdrawal amount of the bad debt provision：

In RMB

Stage 1 Stage 2 Stage 3

Bad Debt Reserves Expected credit losses Expected credit loss Expected credit losses Total

over the next 12 over life (no credit for the entire duration

months impairment) (credit impairment

91Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

occurred)

Balance as at January 12022 32457.98 51535736.09 51568194.07

Balance as at January 12022 in

current

Other change -32457.98 -20691625.66 -20724083.64

Balance as at June 302022 30844110.43 30844110.43

Note 1：The parent company once paid 33683774.79 yuan into Kunlun Securities Co. Ltd Guangdong

Expressway technology investment Co. Ltd once paid 18000000.00 yuan into Kunlun Securities Co. Ltd.Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun

Securities Co. Ltd went bankrupt and repaid debt in November 11 2006. On March 2007 The Company and

Guangdong Expressway Technology Investment Co. Ltd had switched the money that paid into Kunlun

Securities Co. Ltd to other account receivable and follow the careful principle to doubtful debts provision.As of

June 302022 The 2839664.36 yuan Credit was recovered and the provision for had deb.

3） Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

The provision for bad debts in the current period is RMB 0.00; and the amount of bad debt reserve recovered or

reversed in the current period is RMB0.00.

4）The actual write-off other accounts receivable: None

5） Other receivables are classified according to the nature

In RMB

Nature Closing balance Balance Year-beginning

Securities trading settlement funds 30844110.43 47528056.18

Petty cash 5069923.89 4538885.93

Current account 4007679.91

Deposit 2772847.74 3469880.18

Other 4799289.17 4579343.20

Subtotal 43486171.23 64123845.40

Less：Bad debt provision 30844110.43 51568194.07

Total 12642060.80 12555651.33

6） Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

In RMB

Proportion of the

total year end

Name Nature Closing balance Aging balance of the Closing balance of

accounts bad debt provision

receivable(%)

Kunlun Securities Securities trading s

Co.Ltd ettlement funds 30844110.43 Over 5 years 69.02% 30844110.43

Guangdong Litong 22980.00 1-2 years 3.70%

Real Estates Vehicle parking

Investment Co. deposit 1630467.36 2-3 years

Ltd.China Railway

No.18 Bureau Surrogate payment 1099991.00 Within 1 year 2.46%

Group Co. Ltd.China Railway

Surrogate payment 559388.80 Within 1 year 1.25%

Tunnel Group

Guangdong Current account 463491.88 Over 5 years 1.04%

92Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Provincial

Freeway Co.Ltd.Total 34620429.47 77.47% 30844110.43

7） Accounts receivable involved with government subsidies

None

8） Other account receivable which terminate the recognition owning to the transfer of the financial assets None

9） The amount of the assets and liabilities formed by the transfer and the continues involvement of other

accounts receivable

None

5. Inventories

Whether the company need to comply with the disclosure requirements of the real estate industry

（1）Category of Inventory

In RMB

Closing book balance Opening book balance

Provision for Provision for

Items

Book balance inventory Book value Book balance inventory Book value

impairment impairment

Raw materials 257831.85 257831.85

Stock goods 382247.81 382247.81

Total 640079.66 640079.66

(2) Inventory depreciation reserve

None

(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized

None

（4）Description of amortization amount of contract performance cost in the current period

None

6.Contract assets

（1）Situation

In RMB

Year-end balance Year-beginning balance

Items

Bad debt Bad debt

Book balance Book value Book balance Book value

provision provision

Quality

guarantee 5286462.45 5286462.45

Total 5286462.45 5286462.45

Amount and reason of material change of book value of contract assets in the current period::None

The impairment provision of the contract assets in the current period

None

7.Non-current asset due within 1 year

In RMB

93Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Items Year-end balance Year-beginning balance

Pre-payment of business tax before

replacing business tax with VAT 402370.32 51745.32

7 days notice of deposit interest 3010904.18 2731229.21

Total 3413274.50 2782974.53

8.Other current assets

I n RMB

Items Year-end balance Year-beginning balance

Input tax to be certified 62672.86 21213.96

VAT retention tax credits 326647.68

Contract acquisition cost 20706348.52

Advance payment of enterprise income

943590.79

tax

Pay other taxes in advance 7933.63

Total 22047193.48 21213.96

94Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

9. Long-term equity investment

In RMB

Increase/decrease

Investment profit With

draw ClosingNegative Adjustment of Cash bonus or

Investees Opening balance Additional and loss other Changes of profits al of Closing balance

balance of

investme impairmentcomprehensiv other equity announced to impai Other

investment recognized under rment provisione income issue

nt provi

the equity method sion

I. Joint venture

2. Affiliated Company

Zhaoqing Yuezhao

Highway Co. Ltd. 315837951.35 24596394.70 48250000.00 292184346.05

Guangdong

Jiangzhong 318091639.29 60000000.00 7786931.71 31228.99 385909799.99

Expressway Co. Ltd.Ganzhou Gankang

Expressway Co. Ltd. 154118397.12 5447568.74 159565965.86

Ganzhou Kangda

Expressway Co. Ltd. 238101017.69 18635759.71 256736777.40

Shenzhen Huiyan

Expressway Co. Ltd. 320966384.17 18574112.50 339540496.67

Guoyuan Securities

Co. Ltd. 972089465.72 18673979.80 -836824.71 18626864.76 971299756.05

Guangdong Yuepu

Small Refinancing 216343601.27 4709292.76 57008.18 221109902.21

Co. Ltd(Note)

Hunnan Lianzhi

Technology Co. .Ltd. 90617427.28 2547901.15 93165328.43

SPIC Yuetong

Qiyuan Chip Power 964797.35 4000000.00 -221892.64 4742904.71

Technology Co. Ltd.Shenzhen Garage

Electric Pile 95000000.00 874800.03 95874800.03

Technology Co. Ltd

95Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Subtotal 159000000.02627130681.24 101624848.46 -836824.71 88237.17 66876864.76 2820130077.40

Total 159000000.02627130681.24 101624848.46 -836824.71 88237.17 66876864.76 2820130077.40

Other note

96Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

10.Other Equity instrument investment

In RMB

Items Closing balance Opening balance

Guangle Expressway Co. Ltd. 766790940.56 746129411.97

Guangdong Radio and Television Networks

investment No.1 Limited partnership 50000000.00 50000000.00

enterprise

China Everbright Bank Co. Ltd. 708117381.44 781046414.08

Huaxia Securities Co. Ltd.（Notes1）

Huazheng Asset Management Co. Ltd.（Notes2）

Total 1524908322.00 1577175826.05

Breakdown disclosure of investment in non-tradable equity instruments in the current period

In RMB

Amount of Reasons for Reasons for

other designation as other

Items Dividend income Cumulative gain Cumulative

consolidated measured at fair consolidated

recognized loss income value and changes incometransferred to included in other transferred

retained comprehensive to retained

earnings income earnings

Guangle Non-transactional

Expressway Co. 18442638.83 purpose for

Ltd. shareholding

Guangdong

Radio and

Television

Networks Non-transactional

investment No.1 8455606.40 purpose for

Limited shareholding

partnership

enterprise

China Everbright Non-transactional

Bank Co. Ltd. 47286243.74 190556504.64 purpose forshareholding

Huaxia Non-transactional

Securities Co. 5400000.00 purpose for

Ltd. shareholding

Huazheng Asset Non-transactional

Management 1620000.00 purpose for

Co. Ltd. shareholding

Total 47286243.74 217454749.87 7020000.00

Note 1: The owner's equity of Huaxia Securities Co. Ltd. was negative and it entered liquidation procedure in

December 2005. The Company made full provision for impairment in respect of this long-term equity investment of

RMB 5.4 million.Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co. Ltd.As the June 30 2005 the amount of net assets of Huazheng Asset Management Co. Ltd. in book was 279.132 million

yuan and the appraised value was - 2299.5486 million yuan On October 14 2005 Jianyin CITIC Asset Management

Co. Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset

Management Co. Ltd. was willing to pay the price of not more than 42 million yuan to acquire 100% equity of

Huazheng Asset Management Co. Ltd. and solicited the Company's opinions. The Company replied on December 5

2005 abandoning the preemptive right under the same conditions. The Company made provision of 1.62 million yuan

for impairment in respect of this long-term equity investment of 1.62 million yuan.

97Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

11.Other non-current financial assets

In RMB

Items Closing balance Opening balance

Classified as financial assets measured at

fair value and whose changes are 91000000.00

included in the current profit and loss

Total 91000000.00

Other note：

12. Investment property

(1) Investment property adopted the cost measurement mode

√ Applicable □Not applicable

In RMB

Items Houses and buildings Land use right Total

I. Original value

1.Opening balance 12664698.25 2971831.10 15636529.35

2.Increased amount of the period

（1）Outsourcing

(2)Inventory Fixed assets and Construction project into

(3) )Increased of Enterprise consolidation

3.Decreased amount of the period

（1）Disposal

（2）Other Out

4.Closing balance 12664698.25 2971831.10 15636529.35

II.Accumulated depreciation accumulated amortization

1.Opening balance 10842190.02 1905075.92 12747265.94

2.Increased amount of the period 73774.56 36784.68 110559.24

(1)Withdrawal or amortization 73774.56 36784.68 110559.24

3.Decreased amount of the period

（1）Disposal

（2）Other Out

4.Closing balance 10915964.58 1941860.60 12857825.18

III. Impairment provision

1.Opening balance

98Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

2.Increased amount of the period

（1）Withdrawal

3.Decreased amount of the period

（1）Disposal

（2）Other Out

4.Closing balance

IV. Book value

1.Closing book value 1748733.67 1029970.50 2778704.17

2.Opening book 1822508.23 1066755.18 2889263.41

(2) Investment property adopted fair value measurement mode

□Applicable√ Not applicable

(3) Details of investment property failed to accomplish certification of property

In RMB

Items Book balance Reason

Transportation and other ancillary facilities Not

Houses and Building 1071423.06 accreditation

Total 1071423.06

Other note

13. Fixed assets

In RMB

Items Year-end balance Year-beginning balance

Fixed assets 10148415374.03 10639272192.02

liquidation of fixed assets 30726.42

Total 10148446100.45 10639272192.02

99Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(1) List of fixed assets

In RMB

Jingzhu Expressway Electricity

Items Guangfo Fokai Guanghui House and Machinery TransportationExpressway Guangzhu section buildings equipment equipment equipment and Total

Expressway Expressway

other

I. Original price

1.Opening balance 10892817927.31460270190.66 6477849977.48 5135987691.45 669836729.92 1782537704.16 62110614.95 133644602.58 26615055438.50

2.Increased

amount of the 483543.00 383593.00 1556245.00 507923.49 1608988.10 4540292.59

period

（1）Purchase 991499.00 507923.49 1608988.10 3108410.59

（2）Transfer of

project under 383593.00 590000.00 973593.00

construction

(3)Increased of

Enterprise

consolidation

（4）Other 483543.00 -25254.00 458289.00

3.Decreased

amount of the 147662.97 19524138.58 22418321.27 1685667.76 2704496.12 46480286.70

period

（1）Disposal or

scrap 147662.97 249936.00 869052.96 1266651.93

（2）Disposition

19274202.5822418321.271685667.761835443.1645213634.77

subsidiary

10892670264.3

4.Closing balance 1460270190.66 6477849977.48 5136471234.45 650696184.34 1761675627.89 60932870.68 132549094.56 26573115444.39

II. Accumulated

depreciation

1.Opening balance 1460270190.66 5486082815.59 3950515659.85 3164580817.91 461466902.63 1313881686.26 49780181.86 85083678.62 15971661933.38

2.Increased amount

of the period 172016724.19 154616928.05 75065187.78 14621404.46 56968816.16 1031062.02 5676372.23 479996494.89

（1）Withdrawal 172016724.19 154616928.05 75065187.78 14621404.46 56968816.16 1031062.02 5676372.23 479996494.89

100Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

（2）Other

3.Decreased

amount of the 98638.86 10020897.41 17513652.87 1601384.37 1845097.50 31079671.01

period

(1)Disposal or scrap 98638.86 9220.96 825724.31 933584.13

（2）Disposition

10011676.4517513652.871601384.371019373.1930146086.88

subsidiary

4.Closing balance 1460270190.66 5658000900.92 4105132587.90 3239646005.69 466067409.68 1353336849.55 49209859.51 88914953.35 16420578757.26

III. Impairment

provision

1.Opening balance 2889394.16 1231918.94 4121313.10

2.Increased amount

of the period

（1）

Withdrawal

（2）Other

3.Decreased

amount of the

period

(1)Disposal or scrap

（2）Disposition

subsidiary

4.Closing balance 2889394.16 1231918.94 4121313.10

IV. Book value

1.Closing book value 5234669363.41 2372717389.58 1896825228.76 181739380.50 407106859.40 11723011.17 43634141.21 10148415374.03

2.Opening book 5406735111.71 2527334317.63 1971406873.54 205480433.13 467424098.96 12330433.09 48560923.96 10639272192.02

101Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(2)Temporarily idle fixed assets

In RMB

Items Original price Accumulated Impairmentdepreciation provision Book value Remark

House and

6176339.214523128.501653210.71

buildings

Machinery

2322167.001090248.061231918.94

equipment

(3) Fixed assets leased out from operation lease

None

（4） Details of fixed assets failed to accomplish certification of property

In RMB

Items Book balance Reason

Transportation and other ancillary

House and buildings 174825065.82

facilities，Not accreditation.Other note

Note

（5）liquidation of fixed assets

In RMB

Items Year-end balance Year-beginning balance

Office equipment and other 30726.42

Total 30726.42

Other note

None

14. Project under construction

In RMB

Items Year-end balance Year-beginning balance

Project under construction 475554879.75 351130455.06

Total 475554879.75 351130455.06

（1）Project under construction

In RMB

Year-end balance Year-beginning balance

Book balance Provision Book value Book balance Provisio Book value

Items for n for

devaluati devaluati

on on

Gualvhu 160502763.

173515217.94173515217.94160502763.61

Interchange project 61

Huizhou North 105046556.Interchange Project 164750114.70 164750114.70 105046556.00 00

Reconstruction and

Expansion of 42058703.170055555.39 70055555.39 42058703.12

Sanbao to Shuikou 2

Jiangxi-Shenzhen

high-speed railway 14470943.9

14800073.9814800073.9814470943.98

cross-section 8

expansion project

Tanwei Bridge Ship

Collision Prevention 1749246.00 1749246.00 1749246.00 1749246.00

Project

102Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Intelligent

Transformation

Project for

Monitoring System 1535540.00 1535540.00 1535540.00 1535540.00

of Foshan-Kaiping

Expressway (Phase

II)

Guangzhou-Shantou

Railway Crossing 10573552.43 10573552.43 700943.43 700943.43

project

25065758.9

Other 38575579.31 38575579.31 25065758.92

351130455.

Total 475554879.75 475554879.75 351130455.06

103Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(2) Changes of significant construction in progress

In RMB

Includin

g: Capit

capitali alizati Sourc

Name of Budget Opening balance Increase Transferred to Other End balance Proportio Project Capitalization of zation

on of e

project fixed assets decrease n % process interest of intere of

interest st fundin

this rate g

period (%)

Reconstruction

and Expansion

of Sanbao to 3426210000.00 42058703.12 27996852.27 70055555.39 76.95% 83.01 72779504.82 Other

Shuikou

Gualuhu

Interchange 203460000.00 160502763.61 13012454.33 173515217.94 85.28% 85.28 Other

project

Guangzhou-

Shantou

Railway 18811100.00 700943.43 9872609.00 10573552.43 56.21% 56.21 Other

Crossing

project

Jiangxi-

Shenzhen high-

speed railway

15730000.00 14470943.98 329130.00 14800073.98 94.09% 94.09 Other

cross-section

expansion

project

Huizhou North

Interchange 239170000.00 105046556.00 59703558.70 164750114.70 68.88% 68.88 Other

Project

Tanwei Bridge

Ship Collision

50000000.00 1749246.00 1749246.00 3.50% 3.50 Other

Prevention

Project

Total 3953381100.00 324529156.14 110914604.30 435443760.44 72779504.82

104Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(3)Provision for impairment of construction projects in the current period

None

（4）Engineering Materials：None

15.Use right assets

In RMB

Items House and Machinery Transportation Otherbuildings equipment equipment Total

I. Original price

1.Opening balance 21487031.29 357112.19 1163391.05 1007747.00 24015281.53

2.Increased amount of the

period

3.Decreased amount of the

496501.35496501.35

period

（1）Transfer or hold for

sale

（2）Disposal subsidiary 496501.35 496501.35

4.Closing balance 21487031.29 357112.19 666889.70 1007747.00 23518780.18

II. Accumulated

depreciation

1.Opening balance 9208727.65 71422.44 527788.99 107017.44 9914956.52

2.Increased amount of the

period 4604363.82 35711.22 217233.69 53508.72 4910817.45

（1）Withdrawal 4604363.82 35711.22 217233.69 53508.72 4910817.45

3.Decreased amount of

244855.42244855.42

the period

（1）Disposition

（2）Disposal subsidiary 244855.42 244855.42

4.Closing balance 13813091.47 107133.66 500167.26 160526.16 14580918.55

III. Impairment provision

1.Opening balance

2.Increased amount of the

period

（1）Withdrawal

3.Decreased amount of

the period

（1）Disposition

4.Closing balance

IV. Book value

1.Closing book value 7673939.82 249978.53 166722.44 847220.84 8937861.63

2.Opening book value 12278303.64 285689.75 635602.06 900729.56 14100325.01

16. Intangible assets

(1) List of intangible assets

In RMB

105Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Items Land use right Software The Turnpike franchise Total

I. Original price

1.Opening balance 1311658.00 42063790.16 318348741.86 361724190.02

2.Increased amount of the period 5760.00 5760.00

(1) Purchase 5760.00 5760.00

(2)Internal Development

(3)Increased of Enterprise

Combination

3.Decreased amount of the period 1537371.23 1537371.23

（1）Disposal 58000.00 58000.00

（2）Government subsidies cut

（3）Disposal subsidiary 1479371.23 1479371.23

4.Closing balance 1311658.00 40532178.93 318348741.86 360192578.79

II.Accumulated amortization

1.Opening balance 1311658.00 34803392.38 57104963.21 93220013.59

2.Increased amount of the period 1346606.80 10041478.18 11388084.98

(1) Withdrawal 1346606.80 10041478.18 11388084.98

3.Decreased amount of the period 730179.75 730179.75

（1）Disposal 58000.00 58000.00

（2）Disposal subsidiary 672179.75 672179.75

4.Closing balance 1311658.00 35419819.43 67146441.39 103877918.82

III. Impairment provision

1.Opening balance

2.Increased amount of the period

(1) Withdrawal

3.Decreased amount of the period

（1）Disposal

4.Closing balance

IV. Book value

1.Closing book value 5112359.50 251202300.47 256314659.97

2.Opening book value 7260397.78 261243778.65 268504176.43

The intangible assets by the end of the formation of the company's internal R & D accounted 0.00% of the

proportion of the balance of intangible assets

106Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

⑵Details of Land use right failed to accomplish certification of property

None

17. Long-term amortize expenses

In RMB

Balance in year- Increase in this Amortized Balance in year-

Items begin period expenses Other loss

end

Prepaid business

tax and surcharges

before replacement

of business tax 2103750.00 2103750.00

with value-added

tax

Total 2103750.00 2103750.00

18. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets had not been off-set

In RMB

Balance in year-end Balance Year-beginning

Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax

difference assets difference assets

Assets impairment

provisions 7264977.10 1816244.28 7264977.10 1816244.28

Deductible loss 506439537.12 126609884.28 671918486.05 167979621.51

Amortization of

intangible assets 142847699.24 35711924.81 190813984.60 47703496.15

Deferred income 25954618.49 6488654.62 30978093.11 7744523.33

Total 682506831.95 170626707.99 900975540.86 225243885.27

(2) Deferred income tax liabilities had not been off-set

In RMB

Balance in year-end Balance Year-beginning

Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax

difference liabilities difference liabilities

Changes in the fair

value of other equity 190556504.64 47639126.16 263485537.28 65871384.32

instruments

Deductible temporary

differences in the

formation of asset 948354397.89 237088599.48 995623507.00 248905876.75

impairment

Difference of

amortization method of 7527382.78 1881845.70 4580106.28 1145026.57

franchise of toll road

Total 1146438285.31 286609571.34 1263689150.56 315922287.64

（3）Deferred income tax assets or liabilities listed as net after offset：None

（4）Details of unrecognized deferred tax assets

In RMB

Items Balance in year-end Balance Year-beginning

Deductible temporary difference 37864110.43 93406200.73

Deductible loss 16491381.27 15342382.11

107Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Total 54355491.70 108748582.84

（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years

In RMB

Year Balance in year-end Balance Year-beginning Remark

20221133109.04

20233129535.723129535.72

20243618779.073618779.07

20253571100.293571100.29

20263889857.993889857.99

20272282108.20

Total 16491381.27 15342382.11

Other note

19. Other Non-current assets

In RMB

Balance in year-end Balance Year-beginning

Book balance Provision Book value Book balance Provision Book value

Items for for

devaluatio devaluation

Prepaid fixed assets

engineering fees 8763006.33 8763006.33 24675415.36 24675415.36

Prepaid business tax 2317847.28 2317847.28 415282.44 415282.44

Fixed deposit interest 13368083.33 13368083.33

Less：Part due within

1 year 402370.32 402370.32 51745.32 51745.32

Total 24046566.62 24046566.62 25038952.48 25038952.48

20. Short-term Borrowing

（1）Short-term Borrowing

In RMB

Total Balance in year-end Balance Year-beginning

Credit Borrowing 320000000.00

Interest accrued on short-term borrowing 266666.67

Total 320266666.67

（2）Overdue short-term borrowings

None

21.Account payable

（1） List of account payable

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 49349432.03 137346075.15

1-2 years（including2 years） 22596734.53 32260718.56

2-3 years（including 3 years） 2470428.84 30239953.68

Over 3 years 58651893.87 64640392.05

Total 133068489.27 264487139.44

（2）Significant payable aging more than 1 year

In RMB

108Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Items Balance in year-end Reason

Foshan Land and resources Bureau. 30507598.21 Unsettled

Guang Zhongjiang Expressway project

Management Dept 17466700.00 Unsettled

Heshan Land and resources Bureau 9186893.60 Unsettled

Poly Changda Engineering Co. Ltd. 5914675.30 Unsettled

Foshan Chancheng District Zhang Cha

4626817.32 Unsettled

Sub-district Office

Total 67702684.43

22. Prepayment received

(1) List of Prepayment received

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 3744384.23 1937127.54

1-2 years（Including 2 years） 2777.78

2-3 years（Including 3 years）

Over 3 years 8720303.19

Total 3744384.23 10660208.51

(2) Significant advance from customers aging over one year

None

23.Contract liabilities

In RMB

Items Balance in year-end Balance Year-beginning

Advances on sales 22000.00

Total 22000.00

24. Payable Employee wage

（1）Payable Employee wage

In RMB

Items Year-beginning Increase in the Decrease in the Year-end balance

balance current period current period

I. Short-term compensation 19213631.91 179052323.99 180498035.02 17767920.88

II.Post-employment benefits -

defined contribution plans 32990072.18 31061678.37 1928393.81

III. Dismissal benefits 319422.79 319422.79

Total 19213631.91 212361818.96 211879136.18 19696314.69

（2）Short-term Remuneration

In RMB

Items Year-beginning Increase in the Decrease in the Year-end balance

balance current period current period

109Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

1.Wages bonuses allowances

and subsidies 505563.47 131722644.01 131763143.99 465063.49

2.Employee welfare 10930352.42 10930352.42

3. Social insurance premiums 13198412.76 13198412.76

Including：Medical

insurance 8684902.55 8684902.55

Work injury insurance 391109.89 391109.89

Maternity insurance 858405.91 858405.91

Other 3263994.41 3263994.41

4.Public reserves for housing 18335320.08 18335320.08

5.Union funds and staff

education fee 16483121.80 4123622.20 5528833.25 15077910.75

6.Other 2224946.64 741972.52 741972.52 2224946.64

Total 19213631.91 179052323.99 180498035.02 17767920.88

（3）Defined contribution plans listed

In RMB

Balance Year- Increase in this period Payable in this period Balance in year-end

Items

beginning

1. Basic old-age

insurance premiums 19423171.07 19423171.07

2.Unemployment

insurance 545032.26 545032.26

3.Enterprise annuity

payment 13021868.85 11093475.04 1928393.81

Total 32990072.18 31061678.37 1928393.81

25. Tax Payable

In RMB

Items Balance in year-end Balance Year-beginning

VAT 11690299.91 15734725.35

121481902.80143478849.99

Enterprise Income tax

Individual Income tax 382458.23 3202322.06

City Construction tax 758949.20 1044325.22

Education subjoin 367292.89 492391.84

Locality Education subjoin 226426.42 308823.69

Vehicle and vessel tax

Land use tax 523762.40

Property tax 724952.77 110493.45

Stamp tax 26991.20 240581.39

Total 136183035.82 164612512.99

26.Other accounts payable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend payable 1312635476.59 22941943.24

Other account payable 141554884.49 155028540.52

Total 1454190361.08 177970483.76

（1）Interest payable：None

（2）Dividends payable

In RMB

Items Balance in year-end Balance Year-beginning

Common stock dividends 1214635476.59 22941943.24

110Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Dividends payable- Guangdong Provincial

33000000.00

Freeway Co.Ltd.Dividends payable-Guangdong Zhujiang

60000000.00

Highway and Bridge Investment Co. Ltd

Dividends payable-HZCI 5000000.00

Total 1312635476.59 22941943.24

Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:

Final dividend payable 22875984.77

yuan for more than a year in unpaid dividends to shareholders over the year was mainly due to non-

payment of shareholder dividends did not provide information on interest-

bearing bank did not share reform of shareholders to receive dividends or provide application to receive divide

nds the bank information is incorrect resulting in failure to pay a dividend or refund.

（3）Other accounts payable

(1) Other accounts payable listed by nature of the account

In RMB

Items Year-end balance Year-Beginning balance

Estimated project cost 42437693.41 42394262.23

Deposit warranty and security deposit 66199711.17 77685535.90

Other 32917479.91 34948742.39

Total 141554884.49 155028540.52

(2) Other significant accounts payable with aging over one year

In RMB

Items Closing balance Unpaid/un-carry over reason

Yayao to Xiebian extension 12499448.48 The settlement conditions are not met

Poly Changda Highway Engineering Co.

11148264.73 The settlement conditions are not met

Ltd.Guangdong Guanyue Road & Bridge

7334064.80 The settlement conditions are not met

Co. Ltd.Guangdong Nengda High Grade

3911297.10 The settlement conditions are not met

Highway Maintenance Co. Ltd.Guangdong Xinyue Traffic Investment

3664337.93 The settlement conditions are not met

Co. Ltd.Total 38557413.04

27. Non-current liabilities due within 1 year

In RMB

Items Balance year-end Year-beginning balance

Long-term loans due within 1 year 437976600.00 465576600.00

Long-term payable due within 1 year 944339.62 944339.62

Lease liabilities due within 1 year 9973785.52 12474474.87

Payable interest due within 1 year 20854603.21 46648953.77

Total 469749328.35 525644368.26

28.Other current liabilities

In RMB

Items Balance year-end Year-beginning balance

Tax to be rewritten 1133695.05 726336.48

Total 1133695.05 726336.48

111Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

29. Long-term loan

(1) Category of long-term loan

In RMB

Items Balance year-end Year-beginning balance

Pledge loan 548360000.00 582195000.00

Credit loan 4424001700.00 4456002800.00

Less:Long-term loans due within one

year -437976600.00 -465576600.00

Total 4534385100.00 4572621200.00

Other notes，including interest rate range：The interest rate of pledge loan is 3.8% - -3.95%; the interest rateof credit loan is 3.35% - -4.1%.

30.Bond payable

（1）Bond payable

In RMB

Items Balance year-end Year-beginning balance

Medium- term note 1427903757.98 1427434086.58

Total 1427903757.98 1427434086.58

112Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability

In RMB

Pay

The

Name of the Withdraw Overflow

bond Book value Issue date Period Issue amount Opening balance

curre

nt interest at discount

curre Closing balance

issue par amount

perio

Guangdong 2019.3.1-

Expressway 680000000.00 2019.2.27 680000000.00 679025866.59 -223447.86 679249314.452024.3.1

MTN001

Guangdong 2020.3.17-

Expressway 750000000.00 2020.3.13 750000000.00 748408219.99 -246223.54 748654443.532025.3.17

MTN001

Total —— 1430000000.00 1427434086.58 -469671.40 1427903757.98

113Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(3) Note to conditions and time of share transfer of convertible bonds

None

（4）Other financial instruments that are classified as financial liabilities

None

31.Lease liabilities

In RMB

Items Balance year-end Year-beginning balance

Long-term lease liabilities 10196090.60 15247934.63

Including： Financing costs are not

recognized 180417.29 423662.82

Less：Lease liabilities due within 1 year 9973785.52 12474474.87

Total 222305.08 2773459.76

32. Long-term payable

In RMB

Items Balance year-end Year-beginning balance

Long-term payable 2517493.12 3461832.74

Total 2517493.12 3461832.74

(1) Long-term payable listed by nature of the account

In RMB

Items Balance year-end Year-beginning balance

Non-operating asset payable 2022210.11 2022210.11

Medium term bill underwriting fee 1439622.63 2383962.25

Less：Part due within 1 year 944339.62 944339.62

Total 2517493.12 3461832.74

33. Deferred income

In RMB

Items Opening balance Increase Decrease Closing balance Cause

Government

subsidy 30978093.11 5023474.62 25954618.49

Lease income 38250000.00 9094873.88 3466399.53 43878474.35

Total 69228093.11 9094873.88 8489874.15 69833092.84

Details of government subsidies：

In RMB

New Amount Other Amount of

subsidy transferre income cost End Asset-

Items Beginning of in d to non- recorded deductedterm Other changes of

related or

current operation in the in the term income-

period al income current current relatedperiod period

Cancellatio

n of

2595

Expressway 5023474 Related to

30978093.114618.

Provincial .62 assets

Toll Station

Project

34. Stock capital

In RMB

Balance Year- Changed（+，-）beginning Issuance of Bonu Subtot

Balance in year-end

new share s Capitalizatio Other al

114Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

shares n of public

reserve

Total of

capital shares 2090806126.00 2090806126.00

35. Capital reserves

In RMB

Items Year-beginning Increase in the Decrease in Year-end balance

balance current period the current

period

Share premium 508711146.99 508711146.99

(1) Capital invested by investors 2508408342.99 2508408342.99

(2) Influence of business combination

under the same control -1999697196.00 -1999697196.00

Other capital reserves 204749371.50 19708141.17 224457512.67

(1) Changes in other equity of the

investee under the equity -3457667.20 88237.17 -3369430.03

accounting(Note12)

（2）Other（Note3） 208207038.70 19619904.00 227826942.70

Total 713460518.49 19708141.17 733168659.66

- The situation of change in the current capital reserve is as follows:

Note 1: Guangdong Yuepu Small Refinancing Co. Ltd - an associate company-adjusted the statement

numbers. The Company adjusted the book value of long-term equity investment before equity dilution

according to the shareholding ratio resulting in an increase in capital reserve of RMB 57008.18 due to changes

in equity diluted equity.Note 2: Guangdong Jiangzhong Expressway Co. Ltd-an associate company-made provision for special

reserves and the Company adjusted the book value of long-term equity investment according to the

shareholding ratio resulting in an increase of capital reserve of RMB 31228.99.Note 3. The agreement signed by Guangzhou-Huizhou Company and Zengcheng District Government to

add Zengcheng Road Interchange on Guangzhou-Huizhou Expressway which stipulates that Guangzhou-

Huizhou Company will build Shaning Interchange and Xincheng Road Interchange and all the expenses

incurred in the construction of Interchange will be borne by Zengcheng District Government .The agreement signed by Guangzhou-Huizhou Company and Huizhou Transportation Bureau to add

Changkeng Interchange (tentative name) on Guangzhou-Huizhou Expressway which stipulates that

Guangzhou-Huizhou Company will build Changkeng Interchange (renamed Huizhou North Interchange) and

all the expenses incurred in the construction of Interchange will be borne by Guangzhou-Huizhou Company.Huizhou Municipal Transportation Bureau will give Guanghui Company a financial subsidy for this agreed

project. The Huizhou Municipal Transportation Bureau will give Guanghui Company a financial subsidy for the

project under this agreement.After the above project is completed it will be managed by Guangzhou-Huizhou Company. A total of RMB

408249095.50 was received from Government at the beginning of the period of which the opening balance of

capital reserve attributable to the parent company-other capital reserve was RMB 208207038.70 and RMB

38470400.00 was newly received in this period of which capital reserve attributable to the parent company-

other capital reserve increased by RMB19619904.00 in this period.

115Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

36. Other comprehensive income

In RMB

Amount of current period

Less：Prior

Less：Amount period

transferred into included in After-

profit and loss in other tax

Items Year-beginning Amount incurred the current period composite After-tax attribute

attribut

balance Year-end balance

before income tax that recognied income

Less：Income tax to the parent e to

into other expenses company minorittransfer to

comprehensive retained y

income in prior income in shareho

period the current lder

period

1.Other comprehensive income will be

reclassified into income or loss in the future 195395263.20 -52267504.05 -18232258.16 -34035245.89 161360017.31

Changes in fair value of investments in other

equity instruments 195395263.20 -52267504.05 -18232258.16 -34035245.89 161360017.31

2.Other comprehensive income reclassifiable

to profit or loss in subsequent periods -3217796.86 -836824.71 -836824.71 -4054621.57

Including：Share of other comprehensive

income of the investee that cannot be

transferred to profit or loss accounted for -3217796.86 -836824.71 -836824.71 -4054621.57

using the equity method

Total of other comprehensive income 192177466.34 -53104328.76 -18232258.16 -34872070.60 157305395.74

116Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

37. Surplus reserve

In RMB

Items Year-beginning Increase in the current Decrease in the current Year-end balance

balance period period

Statutory surplus

reserve 1225375330.56 1225375330.56

Total 1225375330.56 1225375330.56

38. Retained profits

In RMB

Items Amount of this period Amount of last period

Before adjustments: Retained profits in last period end 4760618543.78 3725679319.35

Adjust the total undistributed profits at the beginning of

the period 546190.04

After adjustments: Retained profits at the period

beginning 4760618543.78 3726225509.39

Add：Net profit belonging to the owner of the parent

company 773786851.68 1700406981.99

Less: Statutory surplus reserve 57589364.93

Common stock dividend payable 1191759491.82 608424582.67

Retained profit at the end of this term 4342645903.64 4760618543.78

Note: The last issue refers to January-December 2021.As regards the details of adjusted the beginning undistributed profits

(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the

affected beginning undistributed profits are RMB 0.00.

(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.

(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .

(4) As the change of consolidation scope caused by the same control the affected beginning undistributed

profits are RMB 0.00.

(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .

39.Operation income and operation cost

In RMB

Amount of this period Amount of last period

Items

Income Cost Income Cost

Main operation 2022637008.32 682014744.35 2448927494.46 868560892.48

Other operation 34783801.36 14128978.15 39547175.35 20566849.95

Total 2057420809.68 696143722.50 2488474669.81 889127742.43

40. Business tax and subjoin

In RMB

Items Amount of this period Amount of last period

Urban construction tax 3906433.43 4707823.03

Education surcharge 1870308.46 2248134.09

Property tax 1026637.79 1328788.22

Land use tax 523762.40 875697.88

Vehicle use tax 43285.07 43697.47

Stamp tax 132962.51 196890.20

117Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Business tax 185247.66 185247.66

Locality Education surcharge 1243683.98 1495067.55

Total 8932321.30 11081346.10

Other note：

41. Administrative expenses

In RMB

Items Amount of this period Amount of last period

Wage 58799341.19 66423609.15

Depreciation and Amortization 6814076.61 5724413.26

Intangible assets amortization 953099.24 1081305.76

Low consumables amortization 259600.97 324317.77

Rental fee 6027123.06 6032852.02

Business fee 282100.73 372403.60

Office expenses 4275751.24 4187689.42

Travel expenses 114358.72 325420.94

Consultation expenses 100000.00 117000.00

The fee for hiring agency 3376068.01 3076580.06

Repairs cost 189544.16 342887.00

Vehicle fee 1304983.31 1504032.85

Listing fee 11320.75 11320.75

Information cost and maintenance fee 961765.47 507982.88

Other 2304133.58 3325219.93

Total 85773267.04 93357035.39

Other note

42.R& D expenses

In RMB

Items Amount of this period Amount of last period

Wage 945204.60

Material cost 412566.35

Depreciation 5521.90

Low consumables amortization 885.00

Office expenses 4318.22

Repairs cost 391.15

Total 1368887.22

Other note

43.Financial expenses

In RMB

Items Amount of this period Amount of last period

Interest expenses 123517238.10 149343110.61

Deposit interest income（-） -36907508.27 -29751089.44

Bank commission charge 84179.23 93344.30

Other 608147.56 1183218.60

Total 87302056.62 120868584.07

44.Other gains

In RMB

Items Amount of this Amount of last Asset-related or income-

118Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

period period related

Government Subsidy-Cancel the Special Subsidy for

Provincial Toll Station Project of Expressway 5023474.62 6783738.24 Related to assets

Government subsidy- Stable job subsidies 1250935.46 932076.28 Relate to income

Government subsidy-Enterprises subsidies 1074875.00 1243500.00 Relate to income

Government subsidy-- Enterprises with industrial training

subsidies 339000.00 Relate to income

Maternity allowance 435454.91 149069.16 Relate to income

Veterans' VAT reduction and exemption 156133.38 136670.84 Relate to income

Withholding and remitting enterprise prepaid income tax

fees 159544.67 322529.07 Relate to income

Veterans' VAT reduction and exemption 15009.81 15785.44 Relate to income

Withhold and pay the advance of enterprise income tax

62924.53 Relate to income

handling fee refund

Total 8178352.38 9922369.03

45. Investment income

In RMB

Items Amount of this period Amount of last period

Long-term equity investment income by equity

method 101624848.46 122646589.32

Dividends earned during the holding period on

investments in other equity instrument 47286243.74 49403538.24

The investment income generated by the disposal of

13564262.33

the subsidiaries

Other -91000.00

Total 162384354.53 172050127.56

46. Credit impairment losses

In RMB

Items Amount of this period Amount of last period

Impairment losses on other receivable -1310999.95

Total -1310999.95

47. Asset impairment loss

In RMB

Items Amount of this period Amount of last period

Loss on impairment of fixed assets -2889394.16

Total -2889394.16

48.Assets disposal income

In RMB

Items Amount of current Amount of previous The amount of non-operatinggains & losses

period period

Non-current assets disposal gains 463363.89 463363.89

Including：Income from disposal of

Fixed assets 463363.89 463363.89

Total 463363.89 463363.89

49. Non-Operation income

In RMB

Items The amount of non-operating

Amount of current period Amount of previous period gains & losses

Non-current assets are 237412.50 237412.50

119Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

damaged and scrapped for

profit

Including：Fixed assets 237412.50 237412.50

Insurance claim income 4141948.49 2494015.56 4141948.49

Road property claim income 1419966.31 1436421.01 1419966.31

Other 22304.35 80783.48 22304.35

Total 5821631.65 4011220.05 5821631.65

50. Non-Operation expense

In RMB

Items The amount of non-operating

Amount of current period Amount of previous period gains & losses

Non-current assets are

damaged and scrapped for 252895.85 135447.06 252895.85

profit

Including：Fixed assets 252895.85 135447.06 252895.85

Road rehabilitation

2624379.661567847.872624379.66

expenditure

Fine 2254.33 153.62 2254.33

Other 76129.55 107872.58 76129.55

Total 2955659.39 1811321.13 2955659.39

51. Income tax expense

(1) Lists of income tax expense

In RMB

Items Amount of current period Amount of previous period

Current income tax expense 246703707.49 323321325.12

Deferred income tax expense 43536719.14 30703740.35

Total 290240426.63 354025065.47

(2) Adjustment process of accounting profit and income tax expense

In RMB

Items Amount of current period

Total 1351792598.06

Current income tax expense accounted by tax and relevant

regulations 337948149.52

Influence of income tax before adjustment 85070.05

Influence of non taxable income -51942863.64

Impact of non-deductible costs expenses and losses 4741431.37

Effect of deductible losses from using previously unrecognized deferred

-591360.67

income tax assets

Income tax expense 290240426.63

52.Items of Cash flow statement

（1）Other cash received from business operation

In RMB

Items Amount of current period Amount of previous period

Interest income 20528520.76 23613918.60

Unit current account 46907015.63 38551853.57

Total 67435536.39 62165772.17

120Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

（2）Other cash paid related to operating activities

In RMB

Items Amount of current period Amount of previous period

Management expense 14342965.21 14914357.27

Unit current account 32790555.31 10957032.13

Total 47133520.52 25871389.40

(3).Cash receivable related to other Financing activities

In RMB

Items Amount of current period Amount of previous period

Government infrastructure investment

subsidies 38470400.00 97731650.00

Total 38470400.00 97731650.00

（4）Cash paid related to other Financing activities

In RMB

Items Amount of current period Amount of previous period

Issuance fee of medium-term notes 1001869.75 776869.75

Purchase of 21% equity consideration of

Guanghui 1221839292.00

Cash paid for the lease liabilities 5240644.14 5157973.11

Total 6242513.89 1227774134.86

53. Supplement Information for cash flow statement

（1）Supplement Information for cash flow statement

In RMB

Supplement Information Amount of current period Amount of previous

period

I. Adjusting net profit to cash flow from operating activities

Net profit 1061552171.43 1199986897.75

Add：Credit loss preparation 2889394.16

Depreciation of fixed assets oil and gas assets and consumable

biological assets 479906745.78 640158205.26

Depreciation of Use right assets 4910817.45 4917916.58

Amortization of intangible assets 11410277.66 18687606.48

Amortization of Long-term deferred expenses 175312.50

Loss on disposal of fixed assets intangible assets and other long-term

deferred assets -463363.89

Fixed assets scrap loss 15483.35 135447.06

Loss on fair value changes

Financial cost 123517238.10 149343110.61

Loss on investment -162384354.53 -172050127.56

Decrease of deferred income tax assets 54617177.28 43283161.23

Increased of deferred income tax liabilities -11080458.14 -12579420.88

Decrease of inventories -321592.91

Decease of operating receivables -46196406.71 19900483.49

121Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Increased of operating Payable -72254061.48 -80544176.47

Credit impairment loss 1310999.95

Net cash flows arising from operating activities 1443551266.30 1815293217.25

II. Significant investment and financing activities that without cash

flows:

Conversion of debt into capital

Convertible corporate bonds maturing within one year

Financing of fixed assets leased

3．Movement of cash and cash equivalents：

Ending balance of cash 4042994649.07 3566075410.42

Less: Beginning balance of cash equivalents 2955183190.55 2846176803.89

Add：End balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase of cash and cash equivalent 1087811458.52 719898606.53

（2）Composition of cash and cash equivalents

In RMB

Items Balance in year-end Balance in year-Beginning

4042994649.072955183190.55

Cash

48820.8138214.02

Of which: Cash in stock

Bank savings could be used at any time 3995143572.14 2954629744.81

Other monetary capital could be used at any time 47802256.12 515231.72

Balance of cash and cash equivalents at the

period end 4042994649.07 2955183190.55

54. The assets with the ownership or use right restricted

In RMB

Items Book value at the end of the period Restricted reason

Monetary fund 1221200.00 Land reclamation funds in the fundescrow account

Total 1221200.00 --

Other note：

As of June 30 2022 the Company's subsidiary Jingzhu Expressway Guangzhu Section Co. Ltd borrowed

548360000.00 yuan from Wuyang Sub-branch of Industrial and Commercial Bank of China (including

67670000.00 yuan in non-current liabilities due within one year and 480690000.00 yuan in long-term loans)

and provided a pledge guarantee of 19.2% of the project's toll interest (the right to collect tolls for vehicles

traveling on the Guangzhu section of Jingzhu Expressway and the revenue generated by owning such right).

122Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

VIII. Changes of merge scope

1. The disposal of subsidiary

Whether there is a single disposal of the investment to subsidiary and lost control

√ Yes □No

In RMB

The difference

between the Amount

Determinatio

disposal price and Percenta transferred from

Book value Fair value Gain or loss n method and

Determina the share of the ge of other

of of from main

tion basis subsidiary's net remainin comprehensive

Equity Equity point of remaining remaining remeasurem assumptions

Subsidiary Equity disposal for the assets at the g equity income related

disposal disposal loss of equity on equity at ent of of fair value

name price point of consolidated at the to equity

ratio method control the date of the date of remaining of remaining

loss of financial statement date of investment in

loss of loss of equity at equity on the

control level loss of atomic company

control control fair value date of loss

corresponding to control to investment

of control

the disposal profit and loss

investment

Complete

d the

Guangdong Sale of

equity

Expressway shares

March transfer

Technology 50623900.00 100.00% under 13564262.33 0.00% 0.00 0.00 0.00 0.00

292022 the

Investment common

transfer of

Co. Ltd. control

control

right

Other note：

Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period

□ Yes √ No

123Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

IX. Equity in other entities

1. Equity in subsidiary

(1) The structure of the enterprise group

Main Shareholding Ratio

Registrat Nature of

Name of Subsidiary Places of (%) Obtaining Method

ion Place Business

Operation direct indirect

Guangfo Expressway Co. Ltd. Guangzh Guangzh Expressway

Under the same

75.00% control businessou ou Management combination

Under the same

Guanghui Expressway Co. Ltd. Guangzh Guangzh Expressway control businessou ou Management 51.00% combination

Jingzhu Expressway Guangzhu Zhongsha Guangzh Expressway Under the same

Section Co.Ltd. n ou Management 75.00% control businesscombination

Yuegao Capital Guangzh Guangzh Investment

Investment(Guangzhou)Co. Ltd. ou ou management 100.00% Investment

Notes: holding proportion in subsidiary different from voting proportion: None

Basis of holding half or less voting rights but still been controlled investee and holding more than half of the

voting rights not been controlled investee: None

Significant structure entities and controlling basis in the scope of combination: None

Basis of determine whether the Company is the agent or the principal: None

(2) Important Non-wholly-owned Subsidiary

In RMB

Shareholdin

Profit or Loss Owned Dividends Distributed Equity Balance of the

g Ratio of

by the Minority to the Minority Minority Shareholders

Name of Subsidiary Minority

Shareholders in the Shareholders in the in the End of the

Shareholder

Current Period Current Period Period

s (%)

Guangfo Expressway Co. Ltd. 25.00% 9596500.78 53112309.95 87798897.85

Guangdong Guanghui

Expressway Co. Ltd. 49.00% 229896908.16 137399965.71 2027908518.81

Jingzhu Expressway Guangzhu

Section Co.Ltd. 25.00% 48271910.81 126239706.53 212707589.86

Holding proportion of minority shareholder in subsidiary different from voting proportion

None

124Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(3) The main financial information of significant not wholly owned subsidiary

In RMB

Year-end balance

Name Current Non- current

Current assets Non- current assets Total assets Total liabilities

Liabilities liabilities

Guangfo Expressway Co. Ltd. 363399371.15 16241271.51 379640642.66 28445051.27 28445051.27

Guangdong Guanghui Expressway Co. Ltd. 1574142897.11 3105468482.93 4679611380.04 355809782.98 185212783.16 541022566.14

Jingzhu Expressway Guangzhu Section Co.Ltd. 100405966.86 2092651162.69 2193057129.55 746917820.51 595308949.65 1342226770.16

Year-beginning balance

Name Current Non- current

Current assets Non- current assets Total assets Total liabilities

Liabilities liabilities

Guangfo Expressway Co. Ltd. 539508987.55 17935998.96 557444986.51 32186158.45 32186158.45

Guangdong Guanghui Expressway Co. Ltd. 1106203367.94 3200915171.31 4307118539.25 199770257.66 195999137.99 395769395.65

Jingzhu Expressway Guangzhu Section Co.Ltd. 78321084.79 2167316422.40 2245637507.19 455558150.91 627377814.00 1082935964.91

In RMB

Amount of current period Amount of previous period

Name Total Total Cash flows fromCash flows from

Business income Net profit Comprehensive Business income Net profit Comprehensive operating

operating activities

income income activities

Guangfo Expressway Co. Ltd. 66566527.45 38386003.12 38386003.12 200857877.57 223491338.35 125126708.37 125126708.37 156814439.07

Guangdong Guanghui

Expressway Co. Ltd. 893298497.64 469177363.59 469177363.59 591588578.50 1004523049.04 516820409.74 516820409.74 680781673.26

Jingzhu Expressway Guangzhu

Section Co.Ltd. 452938785.68 193087643.23 193087643.23 271398716.46 560521671.83 266411477.01 266411477.01 409250398.13

Other note：

125Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt

None

(5) Provide financial support or other support for structure entities incorporate into the scope of

consolidated financial statements

None

2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary

(1) Significant joint venture arrangement or associated enterprise

None

（2）Affect of the transaction on the minority equity and owner's equity attributable to the parent company

None

3. Equity in joint venture arrangement or associated enterprise

(1) Significant joint venture arrangement or associated enterprise

Proportion Accounting

Main treatment of the

Name operating Registratio Business nature investment ofn place Directly Indirectlplace joint venture ory associated

enterprise

Zhaoqing

Zhaoqing Yuezhao Highway Zhaoqing Expressway

Co. Ltd. Guangdon Management 25.00% Equity method

Guangdong

Shenzhen Huiyan Expressway

Co. Ltd. Shenzhen Shenzhen

Expressway

Management 33.33% Equity method

Guangdong Jiangzhong Zhongsha Expressway

Expressway Co. Ltd. Zhongshan n Management 15.00% Equity method

Ganzhou kangda Expressway Gangzhou Ganzhou ExpresswayCo. Ltd. Management 30.00% Equity method

Ganzhou Gankang Expressway

Co. Ltd. Gangzhou Ganzhou

Expressway

Management 30.00% Equity method

Guangdong Yuepu Small Guangzhou Guangzho Hand all kinds ofRefinancing Co. Ltd u small loans 15.48% Equity method

Guangyuan Securities Co. Ltd. Hefei Hefei Security business 2.37% Equity method

Hunan Lianzhi Technology Research and

Co. Ltd. Changsha Changsha experimental 10.10% Equity methoddevelopment

SPIC Yuetong Qiyuan Chip Guangzho

Guangzhou New Energy service 5.00% Equity method

Power Technology Co. Ltd u

Software and

Shenzhen Garage Electric Pile

Shenzhen Shenzhen Information 17.40% Equity method

Technology Co. Ltd

technology

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

None

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting

rights but does not have a significant impact:

Guangdong Jiangzhong Expressway Co. Ltd. Guangyuan Securities Co. Ltd.，Yuepu Small Refinancing Co.Ltd.and Hunan Lianzhi Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and

Shenzhen Garage Electric Pile Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and o

perating decisions and therefore deemed to be able to exert significant influence over the investee.

126Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(2) Main financial information of significant joint venture

None

(3) Main financial information of significant associated enterprise

In RMB

Year-end balance/ Amount of current Year-beginning balance/ Amount of

period previous period

Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.Current assets

Non-current assets

Total assets 131830386370.82 114683858604.22

Current liabilities

Non-current Liabilities

Total liabilities

Minority Shareholders’ Equity

Shareholders’ equity attributable to

shareholders of the parent 32225877958.60 32259179385.22

Pro rata share of the net assets calculated 764204123.51 764993833.19

Adjustment items

--Goodwill 207095632.54 207095632.54

-- Internal transactions did not achieve

profits

--Other

The book value of equity investments in j

oint ventures 971299756.05 972089465.73

Fair value of equity investment of

associated enterprises with open 643661660.04 796815881.40

quotation

Buinsess incme 2474031036.38 2275384578.36

Net profit 749499017.55 846756168.54

Net profit from terminated operations

Other comprehensive income -35288230.26 84942800.98

Total comprehensive income 714210787.29 931698969.52

Dividends received from associates durin

18626864.7610348258.20

g the year

(4) Summary financial information of insignificant joint venture or associated enterprise

In RMB

Year-end balance/ Amount of current Year-beginning balance/ Amount of

period previous period

Joint venture：

Total amount of the pro rata calculation

of the following items

Associated enterprise：

Total book value of the investment 1848830321.35 1655041215.52

Total amount of the pro rata calculation

of the following--Net profit ms

-Nit profit 82950868.66 102343851.05

--Total comprehensive income 82950868.66 102343851.05

Other note

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the

Company

127Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

None

(6) The excess loss of joint venture or associated enterprise

None

(7) The unrecognized commitment related to joint venture investment

None

(8) Contingent liabilities related to joint venture or associated enterprise investment

None

4. Significant common operation

None

5. Equity of structure entity not including in the scope of consolidated financial statements

None

6.Other

None

X. Risks Related to Financial Instruments

The company has the main financial instruments such as bank deposits receivables and payables investments

loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these

financial instruments mainly include credit risk market risk and liquidity risk. The company’s management

shall manage and monitor these risks and ensure above risks to be controlled within certain scope.The targets and policies of risk management

The target of risk management is to obtain the proper balance between the risk and benefit to reduce the

negative impact that is caused by the risk of the Company to the lowest level and to maximize the benefits of

shareholders and other equity investors. Based on the targets of risk management the basic strategy of the

Company’s risk management is to identify and analyze the risks which are faced by the Company establish

suitable risk tolerance baseline and proceed the risk management and supervise a variety of risks timely and

reliably and control the risks within a limited range.

1.Market risk

（1）Foreign exchange risk

Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign

exchange risk is mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder

dividends other major business activities of our Company are settled in RMB. During the reporting period due to

the short credit period of the Company's income and expenditure related to foreign currency it was not affected

by foreign exchange risk.

（2）Interest rate risk

The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly

related to floating rate bank borrowings. The Company's policy is to maintain the floating interest rate of these

borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by shortening the term

of a single loan and specifically agreeing on prepayment terms.

（3）Other price risk

The investments held by the Company are classified as financial assets measured at fair value and whose

changes are included in other comprehensive income and are measured at fair value on the balance sheet date.Therefore the Company bears the risk of changes in the securities market.

2.Credit risk

As of June 30 2022 the largest credit risk exposure that may cause financial losses of the Company mainly

128Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

comes from the loss of financial assets of the Company caused by the failure of the other party to perform its

obligations.In order to reduce credit risk the Company only deals with recognized and reputable customers. In addition

the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate

bad debt provisions are made for unrecoverable amounts. Consequently the Company's management believes that

the Company's credit risk has been greatly reduced.The Group's working capital is deposited in banks with higher credit rating so the credit risk of working

capital is relatively low.Financial assets overdue or impaired;

(1) Aging analysis of financial assets with overdue impairment: Not existed

(2) Analysis of financial assets that have suffered single impairment: Refer to "4 Other Receivables" in VII

and "10 Investment in Other Equity Instruments" in VII of this section for details.

3.Liquidity risk

When managing liquidity risks the Company maintains sufficient cash and cash equivalents as deemed by

the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow

fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the

loan agreement.XI. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

In RMB

Closing fair value

Items Fir value Fir value Fir value

measurement items measurement measurement items at Total

at level 1 items at level 2 level 3

I. Consistent fair value

measurement -- -- -- --

(I) Trading financial assets 91000000.00 91000000.00

（2）Equity instrument investment 91000000.00 91000000.00（II）Other equity instrument

708117381.44766790940.561474908322.00

investment

Total assets continuously measured

708117381.44857790940.561565908322.00

at fair value

II. Non –persistent measure -- -- -- --

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.

As at the end of the period the company holds shares 235254944 shares of China Everbright Bank

According to the closing price of June 30 2022 of 3.01 yuan the final calculation of fair value was

708117381.44 yuan.

3. Fair value of financial assets and liabilities not measured at fair value The valuation techniques adopted and

the qualitative and quantitative information of important parameters for continuous and non-continuous level 2

fair value measurement items

Items Fair value as of June 30 2022 Valuation technology Unobservable input

value

Unlisted equity 857790940.56 Hire a third party for evaluation or enjoy the

129Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

investment share of the net book assets of the investee

based on the shareholding ratio

4. Fair value of financial assets and liabilities not measured at fair value

The Company's financial assets and liabilities measured in amortized cost mainly include: accounts

receivable other receivables contract assets short-term loans accounts payable other payables non-current

liabilities due within one year long-term loans bonds payable and long-term payables.There is no significant difference between the book value of financial assets and liabilities not measured at

fair value and the fair value.XII. Related parties and related-party transactions

1. Parent company information of the enterprise

The parent The parent

company of the company of the

Name Registered address Nature Redistrictedcapital Company's Company’s vote

shareholding ratio ratio

Equity

management

Guangdong traffic

communication Guangzhou infrastructure 26.8 billion yuan 24.56% 50.12%

Group Co. Ltd construction and

railway project

operation

Notes：

Guangdong Communication Group Co. Ltd. is the largest shareholder of the Company. legal representative:

Deng Xiaohua. Date of establishment: June 23 2000. As of June 30 2022Registered capital: 26.8 billion yuan.It is a solely state-owned limited company. Business scope ： equity management organization of asset

reorganization and optimized allocation raising funds by means including mortgage transfer of property rights

and joint stock system transformation project investment operation and management traffic infrastructure

construction highway and railway project operation and relevant industries technological development

application consultation and services highway and railway passenger and cargo transport ship industry

relevant overseas businesses; The value-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission of

Guangdong Provincial People's Government.Other note：

2.Subsidiaries of the Company

Subsidiaries of this enterprise see IX(1) the rights of other entity

3. Information on the joint ventures and associated enterprises of the Company

Details refer to the IX-3 Interests in joint ventures or associates

Information on other joint venture and associated enterprise of occurring related party transactions with the

Company in reporting period or form balance due to related party transactions in previous period:

Name Relation with the Company

130Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company

Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company

Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company

Ganzhou Gankang Expressway Co. Ltd. Associated enterprises of the Company

Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company

Hunan Lianke Technology Co. Ltd. Associated enterprises of the Company

4. Other Related parties

Name Relation with the Company

Guangdong Boda Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Chaohui Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong East Thinking Management Technology

Development Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Guangzhu West Line Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Humen Bridge Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Hualu Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Development Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Union Electron Service Information technology

Co. ltd. Fully owned subsidiary of the parent company

Guangdong Lulutong Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Luoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company

Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Communication Group Finance Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Read & Bridge Construction Development Co.Ltd. Fully owned subsidiary of the parent company

Guangdong Tongyi Expressway Service Area Co. Ltd Fully owned subsidiary of the parent company

Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yueyun Traffic Rescue Co. Ltd. Fully owned subsidiary of the parent company

Guangshenzhu Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Xinyue Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Xinyue Asphalt Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company

Xinyue Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Communication Planning & Design Institute Co.Shares of parent company

Ltd.Guangzhongjiang Expressway Project Management Dept Managed by the parent company

Guangzhou Aitesi Communication equipment Co. Ltd. Associated enterprises controlled by the same parent company

Guangdong Jingzhu Expressway Guangzhu North Section Co.Ltd. Associated enterprises controlled by the same parent company

Guangdong Feida Traffic Engineering Co. Ltd. Associated enterprises controlled by the same parent company

Poly Changda Engineering Co. Ltd. Shares of parent company

Guangdong Changda Road Conservation Co. Ltd. Shares of parent company

Guangdong Road Network Digital Media Information

Technology Co. Ltd Fully owned subsidiary of the parent company

Guangdong Xiangfei Highway Engineering Supervision Co.Ltd Subsidiary of the parent company

Guangdong Expressway Technology Co. Ltd. Fully owned subsidiary of the parent company

Hunan Lianzhi Technology Co. Ltd. A wholly owned subsidiary of the Company

131Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Guangdong Zhujiang Road bridge Investment Co. Ltd. It has a significant impact on important subsidiaries

Guangdong Xinyue Traffic Qingyun Expressway Management

Managed by the parent company

Office

5. List of related-party transactions

(1)Information on acquisition of goods and reception of labor service

Acquisition of goods and reception of labor service

In RMB

Related parties Content of related Amount of current Amount of previoustransaction

period period

1.Business cost

Guangdong Union electronic services co. Ltd. Service 12021733.95 14427549.75

Boly Changda Engineering Co. Ltd. Service 11772757.00 4459339.00

Mechanical and electrical

Guangdong Feida Traffic Engineering Co. Ltd. daily maintenance 2003201.04 2066264.07

payment

Guangdong Yueyun Traffic Rescue Co. Ltd. Rescue service fee 494700.00

Guangdong Humen Bridge Co. Ltd. Service 310411.02

Guangdong Communication Planning & Design

Institute Co. Ltd. Project labour service 178243.00

Guangdong Lulutong Co. Ltd. Maintenance Projectfunds 52598.00

Guangdong Tongyi Expressway Service Area Co.Ltd Service 40808.70

Guangdong Jingzhu Expressway Guangzhu North

Section Co. Ltd. Service 8551.20

Guangzhou Aitesi Communication Equipment Co. Maintenance of charging

2400.00

Ltd. facilities

Guangdong East Thinking Management Technology Service 30000.00

Development Co. Ltd.Subtotal 26885403.91 20983152.82

2.Financial cost

Guangdong Communication Group Finance Co.Ltd. Deposit interest income -24475843.25 -15349444.97

Guangdong Communication Group Finance Co. Borrowing Interest

Ltd. expresses 5112347.24 3167500.00

Guangdong Communication Group Finance Co.Ltd. Commission charge 920.00

Guangdong Jiangzhong Expressway Co. Ltd. Interest 27405.00

Subtotal -19362576.01 -12154539.97

3.Administrative expenses

Information cost and

Guangdong Union electronic services co. Ltd. 288500.00

maintenance fee

Guangdong East Thinking Management Technology

Development Co. Ltd. OA Maintenance，Service 10000.00 60000.00Subtotal 298500.00 60000.00

4.Non-Operating expensess

Boly Changda Engineering Co. Ltd. Damfor damaged repair of 1009397.00

civil facilities

Subtotal 1009397.00

5. Construction in process

Guangdong Communication Planning & Design

Institute Co. Ltd. Purchase assets 5973981.00 7455615.00

Poly Changda Engineering Co. Ltd. Purchase assets 26630344.47 141402869.60

Guangdong Xinyue Traffic Investment Co. Ltd. Purchase assets 6127813.56 584557.32

132Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Guangdong Highway Construction Co. Ltd. Purchase assets 9089990.48

Guangdong Hualu Traffic Technology Co. Ltd. Purchase assets 907894.50

Guangdong Xiangfei Highway Engineering

Supervision Co. Ltd Purchase assets 208829.00

Subtotal 48730024.01 149651870.92

6.Fixed assets

Guangdong Expressway Technology Investment

Purchase assets 82895.00

Co. Ltd.Guangdong Communication Planning & Design

Institute Co. Ltd. Purchase assets 483543.00

Subtotal 566438.00

7.Other current assets

Guangdong Feida Traffic Engineering Co. Ltd. Contract acquisition cost 182274.01

Subtotal 182274.01

Related transactions on sale goods and receiving services

In RMB

Related party Content Amount of current Amount of previous

period period

1.Business income

Jingzhu Expressway Guangzhu North Commission management

section Co. Ltd. fee 10603632.04 9622924.52

Guangdong Provincial Freeway Co.Ltd. Project fund 886950.00 1773900.00

Ganzhou Gankang Expressway Co. Ltd. Salaries of expatriate staff 525660.83 450262.64

Zhaoqing Yuezhao Highway Co. Ltd. Salaries of expatriate staff 512977.97 514314.09

Guangdong Tongyi Expressway Service

Area Co. Ltd water and electricity 486716.96 577014.73

Guangdong Traffic Development Co. Ltd. electricity 336290.97

Shenzhen Huiyan Expressway Co. Ltd. Salaries of expatriate staff 260849.89 254219.25

Ganzhou Kangda Expressway Co. Ltd. Salaries of expatriate staff 138547.02 162691.45

Guangdong Jiangzhong Expressway Co.Salaries of expatriate staff 176119.41 81447.20

Ltd.Guangdong Luoyang Expressway Co. Ltd. Test 58490.57

Bidding documents income

Poly Changda Engineering Co. Ltd. 1000.00 103082.55

water and electricity bills

Guangdong Feida Traffic Engineering Co.Ltd CPC card sales revenue 56991.15

Guangdong Xinyue Traffic Investment Co.Project 52187.72

Ltd.Guangdong Expressway Media Co. Ltd. Water and electricity 49750.19

Guangdong Yueyun Traffic Rescue Co.Ltd. Water and electricity 18905.54

Subtotal 13987235.66 13717691.03

(2) Information of related lease

The Company was lessor：

In RMB

Name of lessee Category of lease assets The lease income The lease incomeconfirmed in this year confirmed in last year

Guangdong Expressway Media Co. Advertising lease

Ltd. 1379412.57 842169.89

Poly Changda Engineering Co. Ltd. Rental income 555557.14

Guangdong Litong Technology

Investment Co. Ltd. Communication Piping 522034.27 819439.23

Guangdong Traffic Development Rental income of charging

149850.34

Co. Ltd. pile

Guangdong Road Nework Digital

Media Information Technology Co. Advertising 2777.78

133Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

Ltd.Total 2609632.10 1661609.12

134Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

- The company was lessee：

In RMB

Variable lease

Rental charges for Interest expenses on

payments not included Increased use right

short-term and low- Rent paid lease liabilities

in lease liabilities assets

value assets (if any) assumed

measurement (if any)

Lessor Category of Amount of Amount Amount of Amount Amount of Amount of Amount Amount Amount Amountleased assets

current of current of current period previous period of of of current of

period previous period previous current previous period previous

period period period period period

Guangdong Litong

Decelopment Investment Co. Office space 4604363.82 4604363.83

Ltd

Jingzhu Expressway

Guangzhu North section Co. Activity

Ltd. place

53508.7253508.72

Guangdong Litong Property Office space 50321.3

27586.0027586.0050321.37

Development Co. Ltd. 7

50321.3

Total 27586.00 4685458.54 4708193.92

135Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

(3）Rewards for the key management personnel

In RMB

Items

Amount of current period Amount of previous period

Rewards for the key management

2834900.002935600.00

personnel

（4） Other significant related-party transactions

√ Applicable □Not applicable

（1）Deposit business

Related party Relationship Maximum Deposit Beginning The amount of this period

daily deposit interest rate balancelimit （ Ten range Ten Ending（ Total amount Total amountthousand thousand balancefor this period is withdrawnyuan） yuan）（ Ten for this period（ TenTen thousandthousand （yuan） thousandyuan）yuan）

Guangdong

Communications Controlled by the

Group Finance Co. same parent company 300000.00 0.35%-2.85% 152100.35 113736.70 265837.05

Ltd

（2）Loan business

Related party Relationship Beginning The amount of this period

balance

（ TenLoan limit Total loan Total Endingthousand

（ Ten amount of the repayment balancethousand Loant interestyuan） current （ Ten amount of the （ Tenyuan rate range thousand current period thousand）yuan）（ Ten yuan）

thousandyuan）

Guangdong

Communications Controlled by the

Group Finance Co. same parent company 400000.00 3.00%-3.75% 20000.00 32000.00 100.00 51900.00

Ltd

(3)Credit extension or other financial servicesRelated party Relationship Business type Total amount（10， Actual amount000） incurred（10，000)Guangdong Communications Controlled by the same Credit extension

Group Finance Co. Ltd parent company 220000.00 51900.00

The Company respectively signed the "Cash Management Business Cooperation Agreement" with

Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial

Bank of China on December 25 2017; and signed the "Cash Management Business Cooperation Agreement" with

Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial

Bank of China on December 22 2017 respectively joined the cash pool of Guangdong Communications Group

Finance Co. Ltd.Guangdong Guanghui Expressway Co. Ltd respectively signed the "Cash Management Business

Cooperation Agreement" with Guangdong Communications Group Finance Co. Ltd and Agricultural Bank of

China Co. Ltd Guangdong Branch on May 19 2020 joined the cash pool of Guangdong Communications Group

Finance Co. Ltd.

136Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2022

（5）Asset transfer and debt restructuring of related parties

Amount of current Amount of previous

行情