Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Financial Report 2020
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
I. Audit reportHas this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.II. Financial statementsCurrency 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 30,2020
In RMB
| Items | June 30,2020 | December 30,2019 |
| Current asset： | ||
| Monetary fund | 3,059,496,742.46 | 2,817,920,894.50 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Account receivable | 134,069,638.15 | 125,343,724.66 |
| Financing of receivables | ||
| Prepayments | 3,072,462.33 | 10,894,246.41 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 22,983,175.46 | 26,618,178.57 |
| Including：Interest receivable | ||
| Dividend receivable | 10,955,472.90 | 7,205,472.90 |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | June 30,2020 | December 30,2019 |
| Repurchasing of financial assets | ||
| Inventories | 111,683.22 | 111,683.22 |
| Contract assets | 5,246,547.77 | |
| Assets held for sales | ||
| Non-current asset due within 1 year | 51,745.32 | 51,745.32 |
| Other current asset | 310,673.32 | |
| Total of current assets | 3,225,342,668.03 | 2,980,940,472.68 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Creditor's right investment | ||
| Other investment on bonds | ||
| Long-term receivable | ||
| Long term share equity investment | 3,311,674,455.49 | 3,255,739,898.36 |
| Other equity instruments investment | 1,640,561,001.25 | 1,835,822,604.77 |
| Other non-current financial assets | ||
| Property investment | 3,220,941.13 | 3,331,500.37 |
| Fixed assets | 8,709,189,223.95 | 8,925,700,473.65 |
| Construction in progress | 169,594,866.22 | 229,098,299.48 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 5,394,247.13 | 6,393,895.17 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 1,061,255.72 | 1,114,764.44 |
| Deferred income tax asset | 372,498,584.43 | 385,494,106.13 |
| Other non-current asset | 34,923,769.57 | 50,909,325.73 |
| Total of non-current assets | 14,248,118,344.89 | 14,693,604,868.10 |
| Total of assets | 17,473,461,012.92 | 17,674,545,340.78 |
| Current liabilities | ||
| Short-term loans | ||
| Loan from Central Bank |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | June 30,2020 | December 30,2019 |
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 304,813,240.45 | 290,657,734.31 |
| Advance receipts | 11,199,716.35 | 15,605,094.69 |
| Contract liabilities | 108,100.88 | |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 20,189,767.97 | 14,822,524.70 |
| Tax payable | 37,853,454.17 | 84,257,586.94 |
| Other account payable | 1,425,833,813.99 | 626,180,586.92 |
| Including：Interest payable | ||
| Dividend payable | 954,302,889.90 | 20,020,119.31 |
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 159,172,771.75 | 795,861,958.07 |
| Other current liability | 1,603,872.74 | 189,628.17 |
| Total of current liability | 1,960,774,738.30 | 1,827,575,113.80 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | 4,704,892,500.00 | 4,640,425,000.00 |
| Bond payable | 1,426,014,144.87 | 678,124,972.89 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | 40,406,172.36 | 39,369,379.91 |
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 32,279,824.81 |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | June 30,2020 | December 30,2019 |
| Deferred income tax liability | 192,395,432.59 | 238,453,976.29 |
| Other non-current liabilities | ||
| Total non-current liabilities | 6,395,988,074.63 | 5,596,373,329.09 |
| Total of liability | 8,356,762,812.93 | 7,423,948,442.89 |
| Owners’ equity | ||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 2,566,524,645.31 | 2,562,570,465.31 |
| Less：Shares in stock | ||
| Other comprehensive income | 238,280,420.37 | 382,193,344.90 |
| Special reserve | ||
| Surplus reserves | 910,425,068.90 | 910,425,068.90 |
| Common risk provision | ||
| Retained profit | 2,989,281,402.29 | 3,877,431,844.64 |
| Total of owner’s equity belong to the parent company | 8,795,317,662.87 | 9,823,426,849.75 |
| Minority shareholders’ equity | 321,380,537.12 | 427,170,048.14 |
| Total of owners’ equity | 9,116,698,199.99 | 10,250,596,897.89 |
| Total of liabilities and owners’ equity | 17,473,461,012.92 | 17,674,545,340.78 |
Legal Representative: Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang ZhiAccounting Dept Leader: Zhou Fang
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
2.Parent Company Balance Sheet
In RMB
| Items | June 30,2020 | December 31,2019 |
| Current asset： | ||
| Monetary fund | 3,009,059,379.39 | 2,791,384,501.78 |
| Transactional financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Account receivable | 21,134,758.62 | 21,864,051.27 |
| Financing of receivables | ||
| Prepayments | 1,477,900.00 | 1,737,598.88 |
| Other account receivable | 173,590,519.85 | 13,435,651.19 |
| Including：Interest receivable | ||
| Dividend receivable | 166,906,851.62 | 7,205,472.90 |
| Inventories | ||
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | 178,335,084.79 | 151,637,139.08 |
| Other current asset | 310,673.32 | |
| Total of current assets | 3,383,908,315.97 | 2,980,058,942.20 |
| Non-current assets： | ||
| Debt investment | 539,903,684.98 | 537,903,684.98 |
| Other investment on bonds | ||
| Long-term receivable | ||
| Long term share equity investment | 4,845,339,464.30 | 4,789,404,907.17 |
| Other equity instruments investment | 1,640,561,001.25 | 1,835,822,604.77 |
| Other non-current financial assets | ||
| Property investment | 2,968,802.88 | 3,079,362.12 |
| Fixed assets | 6,600,491,692.05 | 6,818,701,482.08 |
| Construction in progress | 21,047,579.91 | 46,952,925.08 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 2,151,767.67 | 2,533,878.12 |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | June 30,2020 | December 31,2019 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 372,284,373.89 | 385,296,935.33 |
| Other non-current asset | 20,941,346.07 | 36,901,029.57 |
| Total of non-current assets | 14,045,689,713.00 | 14,456,596,809.22 |
| Total of assets | 17,429,598,028.97 | 17,436,655,751.42 |
| Current liabilities | ||
| Short-term loans | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 176,971,650.64 | 129,930,285.56 |
| Advance receipts | ||
| Contract Liabilities | ||
| Employees’ wage payable | 5,941,810.21 | 6,340,740.61 |
| Tax payable | 5,063,328.85 | 8,704,510.83 |
| Other account payable | 1,330,815,068.94 | 582,131,356.01 |
| Including：Interest payable | ||
| Dividend payable | 902,319,096.99 | 20,020,119.31 |
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 121,198,409.74 | 744,589,133.72 |
| Other current liability | 660,427,825.56 | 821,133,339.57 |
| Total of current liability | 2,300,418,093.94 | 2,292,829,366.30 |
| Non-current liabilities： | ||
| Long-term loan | 4,223,862,500.00 | 4,243,730,000.00 |
| Bond payable | 1,426,014,144.87 | 678,124,972.89 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | 40,406,172.36 | 39,369,379.91 |
| Long-term remuneration payable to staff |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | June 30,2020 | December 31,2019 |
| Expected liabilities | ||
| Deferred income | 15,044,550.85 | |
| Deferred income tax liability | 81,162,955.68 | 129,978,356.56 |
| Other non-current liabilities | ||
| Total non-current liabilities | 5,786,490,323.76 | 5,091,202,709.36 |
| Total of liability | 8,086,908,417.70 | 7,384,032,075.66 |
| Owners’ equity | ||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 2,978,412,876.93 | 2,974,458,696.93 |
| Less：Shares in stock | ||
| Other comprehensive income | 238,280,420.37 | 382,193,344.90 |
| Special reserve | ||
| Surplus reserves | 894,580,785.25 | 894,580,785.25 |
| Retained profit | 3,140,609,402.72 | 3,710,584,722.68 |
| Total of owners’ equity | 9,342,689,611.27 | 10,052,623,675.76 |
| Total of liabilities and owners’ equity | 17,429,598,028.97 | 17,436,655,751.42 |
Legal Representative :Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang ZhiAccounting Dept Leader: Zhou Fang
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
3.Consolidated Income statement
In RMB
| Items | The first half year of 2020 | The first half year of 2019 |
| I. Income from the key business | 660,898,961.79 | 1,483,673,245.21 |
| Incl：Business income | 660,898,961.79 | 1,483,673,245.21 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 714,453,628.80 | 736,685,807.33 |
| Incl：Business cost | 524,175,125.06 | 549,623,810.49 |
| 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 | 3,673,803.97 | 6,557,023.97 |
| Sales expense | ||
| Administrative expense | 67,990,919.48 | 76,975,210.47 |
| R & D costs | ||
| Financial expenses | 118,613,780.29 | 103,529,762.40 |
| Including：Interest expense | 131,774,768.90 | 115,040,857.71 |
| Interest income | 14,760,756.18 | 15,761,707.69 |
| Add: Other income | 3,871,289.20 | 420,227.62 |
| Investment gain（“-”for loss） | 106,638,564.53 | 276,241,866.32 |
| Incl: investment gains from affiliates | 55,853,351.49 | 237,712,998.09 |
| 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 |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | The first half year of 2019 |
| Credit impairment loss | -236,683.81 | |
| Impairment loss of assets | ||
| Assets disposal income | 4.37 | 13,129,094.29 |
| III. Operational profit（“-”for loss） | 56,718,507.28 | 1,036,778,626.11 |
| Add ：Non-operational income | 4,077,676.95 | 735,359.76 |
| Less: Non-operating expense | 2,192,008.48 | 4,231,407.95 |
| IV. Total profit(“-”for loss) | 58,604,175.75 | 1,033,282,577.92 |
| Less：Income tax expenses | 43,240,151.04 | 189,696,774.05 |
| V. Net profit | 15,364,024.71 | 843,585,803.87 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | ||
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | -5,830,257.18 | 736,486,112.30 |
| 2.Minority shareholders’ equity | 21,194,281.89 | 107,099,691.57 |
| VI. Net after-tax of other comprehensive income | -143,912,924.53 | 18,938,083.74 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | -143,912,924.53 | 18,938,083.74 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | -146,446,202.64 | 19,408,532.88 |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | -146,446,202.64 | 19,408,532.88 |
| 4. Changes in the fair value of the company’s credit risks |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | The first half year of 2019 |
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 2,533,278.11 | -470,449.14 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | 2,533,278.11 | -470,449.14 |
| 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 Minority shareholders’ equity | ||
| VII. Total comprehensive income | -128,548,899.82 | 862,523,887.61 |
| Total comprehensive income attributable to the owner of the parent company | -149,743,181.71 | 755,424,196.04 |
| Total comprehensive income attributable minority shareholders | 21,194,281.89 | 107,099,691.57 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | -0.0028 | 0.35 |
| (II)Diluted earnings per share | -0.0028 | 0.35 |
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: Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang ZhiAccounting Dept Leader: Zhou Fang
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
4. Income statement of the Parent Company
In RMB
| Items | The first half year of 2020 | The first half year of 2019 |
| I. Income from the key business | 293,579,730.04 | 623,126,517.35 |
| Incl：Business cost | 328,657,958.84 | 329,190,674.52 |
| Business tax and surcharge | 2,414,928.72 | 3,486,292.37 |
| Sales expense | ||
| Administrative expense | 40,263,656.49 | 46,996,060.64 |
| R & D expense | ||
| Financial expenses | 111,941,828.19 | 96,377,160.24 |
| Including：Interest expenses | 126,623,134.06 | 109,559,414.30 |
| Interest income | 14,718,213.69 | 15,652,128.26 |
| Add：Other income | 1,348,815.87 | 70,758.72 |
| Investment gain（“-”for loss） | 513,084,202.15 | 975,659,501.70 |
| Including: investment gains from affiliates | 55,853,351.49 | 237,712,998.09 |
| 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 | ||
| Assets disposal income | 4.37 | |
| II. Operational profit（“-”for loss） | 324,734,380.19 | 1,122,806,590.00 |
| Add ：Non-operational income | 1,033,092.43 | 298,935.96 |
| Less：Non -operational expenses | 410,045.97 | 370,829.17 |
| III. Total profit(“-”for loss) | 325,357,426.65 | 1,122,734,696.79 |
| Less：Income tax expenses | 13,012,561.44 | 44,083,178.65 |
| IV. Net profit | 312,344,865.21 | 1,078,651,518.14 |
| 1.Net continuing operating profit | 312,344,865.21 | 1,078,651,518.14 |
| 2.Termination of operating net profit | ||
| V. Net after-tax of other comprehensive income | -143,912,924.53 | 18,938,083.74 |
| （I）Other comprehensive income | -146,446,202.64 | 19,408,532.88 |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | The first half year of 2019 |
| items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | -146,446,202.64 | 19,408,532.88 |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| (II)Other comprehensive income that will be reclassified into profit or loss | 2,533,278.11 | -470,449.14 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | 2,533,278.11 | -470,449.14 |
| 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 | 168,431,940.68 | 1,097,589,601.88 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
Legal Representative: Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang ZhiAccounting Dept Leader: Zhou Fang
5. Consolidated Cash flow statement
In RMB
| Items | The first half year of 2020 | The first half year of 2019 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 663,862,643.34 | 1,509,571,069.40 |
| 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 | 77,578.62 | |
| Other cash received from business operation | 72,322,240.45 | 25,618,718.28 |
| Sub-total of cash inflow | 736,262,462.41 | 1,535,189,787.68 |
| Cash paid for purchasing of merchandise and services | 67,174,129.05 | 92,703,135.93 |
| Net increase of client trade and advance |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | The first half year of 2019 |
| 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 | 131,184,471.77 | 143,256,732.77 |
| Taxes paid | 99,376,789.76 | 210,497,035.66 |
| Other cash paid for business activities | 20,620,967.49 | 37,921,786.09 |
| Sub-total of cash outflow from business activities | 318,356,358.07 | 484,378,690.45 |
| Net cash generated from /used in operating activities | 417,906,104.34 | 1,050,811,097.23 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 133,441,465.51 | 176,375,388.78 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 17,625.00 | 13,961,500.00 |
| 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 | 133,459,090.51 | 190,336,888.78 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 191,735,294.09 | 414,305,542.74 |
| Cash paid as investment | 80,000,000.00 | |
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | The first half year of 2019 |
| activities | ||
| Sub-total of cash outflow due to investment activities | 271,735,294.09 | 414,305,542.74 |
| Net cash flow generated by investment | -138,276,203.58 | -223,968,653.96 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders | ||
| Cash received as loans | 1,195,000,000.00 | 2,231,700,000.00 |
| Other financing –related cash received | ||
| Sub-total of cash inflow from financing activities | 1,195,000,000.00 | 2,231,700,000.00 |
| Cash to repay debts | 1,083,917,500.00 | 1,620,130,000.00 |
| Cash paid as dividend, profit, or interests | 148,014,375.80 | 1,522,586,583.81 |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | 75,000,000.00 | 220,140,964.92 |
| Other cash paid for financing activities | 1,122,177.00 | 791,384.00 |
| Sub-total of cash outflow due to financing activities | 1,233,054,052.80 | 3,143,507,967.81 |
| Net cash flow generated by financing | -38,054,052.80 | -911,807,967.81 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -1,534,520.73 | |
| V.Net increase of cash and cash equivalents | 241,575,847.96 | -86,500,045.27 |
| Add: balance of cash and cash equivalents at the beginning of term | 2,816,699,694.50 | 2,123,303,796.32 |
| VI ..Balance of cash and cash equivalents at the end of term | 3,058,275,542.46 | 2,036,803,751.05 |
Legal Representative: Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang Zhi
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
Accounting Dept Leader: Zhou Fang
6. Cash Flow Statement of the Parent Company
In RMB
| Items | The first half year of 2020 | The first half year of 2019 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 302,123,119.55 | 641,027,153.33 |
| Tax returned | ||
| Other cash received from business operation | 63,304,430.86 | 24,885,810.30 |
| Sub-total of cash inflow | 365,427,550.41 | 665,912,963.63 |
| Cash paid for purchasing of merchandise and services | 15,346,627.62 | 24,226,244.52 |
| Cash paid to staffs or paid for staffs | 52,390,979.85 | 56,174,438.87 |
| Taxes paid | 13,428,897.71 | 24,543,436.06 |
| Other cash paid for business activities | 201,770,756.58 | 444,674,884.91 |
| Sub-total of cash outflow from business activities | 282,937,261.76 | 549,619,004.36 |
| Net cash generated from /used in operating activities | 82,490,288.65 | 116,293,959.27 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 358,767,434.26 | 846,967,754.67 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 6,300.00 | 3,700.00 |
| 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 | 358,773,734.26 | 846,971,454.67 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 118,535,092.50 | 399,081,697.08 |
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | The first half year of 2019 |
| Cash paid as investment | 82,000,000.00 | |
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | ||
| Sub-total of cash outflow due to investment activities | 200,535,092.50 | 399,081,697.08 |
| Net cash flow generated by investment | 158,238,641.76 | 447,889,757.59 |
| III. Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | 1,135,000,000.00 | 1,845,000,000.00 |
| Other financing –related ash received | ||
| Sub-total of cash inflow from financing activities | 1,135,000,000.00 | 1,845,000,000.00 |
| Cash to repay debts | 1,083,917,500.00 | 1,197,780,000.00 |
| Cash paid as dividend, profit, or interests | 73,014,375.80 | 1,289,730,502.83 |
| Other cash paid for financing activities | 1,122,177.00 | 791,384.00 |
| Sub-total of cash outflow due to financing activities | 1,158,054,052.80 | 2,488,301,886.83 |
| Net cash flow generated by financing | -23,054,052.80 | -643,301,886.83 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -1,534,520.73 | |
| V.Net increase of cash and cash equivalents | 217,674,877.61 | -80,652,690.70 |
| Add: balance of cash and cash equivalents at the beginning of term | 2,790,163,301.78 | 2,095,376,368.04 |
| VI ..Balance of cash and cash equivalents at the end of term | 3,007,838,179.39 | 2,014,723,677.34 |
Legal Representative: Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang ZhiAccounting Dept Leader: Zhou Fang
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | The first half year of 2020 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,562,570,465.31 | 382,193,344.90 | 910,425,068.90 | 3,877,431,844.64 | 9,823,426,849.75 | 427,170,048.14 | 10,250,596,897.89 | |||||||
| Add: Change of accounting policy | |||||||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II.Balance at the beginning of current year | 2,090,806,126.00 | 2,562,570,465.31 | 382,193,344.90 | 910,425,068.90 | 3,877,431,844.64 | 9,823,426,849.75 | 427,170,048.14 | 10,250,596,897.89 | |||||||
| III.Changed in the current year | 3,954,180.00 | -143,912,924.53 | -888,150,442.35 | -1,028,109,186.88 | -105,789,511.02 | -1,133,898,697.90 | |||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| （1）Total comprehensive income | -143,912,924.53 | -5,830,257.18 | -149,743,181.71 | 21,194,281.89 | -128,548,899.82 | ||||||||||
| （II）Investment or decreasing of capital by owners | |||||||||||||||
| 1Ordinary Shares invested by shareholders | |||||||||||||||
| 2Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | |||||||||||||||
| （III）Profit allotment | -882,320,185.17 | -882,320,185.17 | -126,983,792.91 | -1,009,303,978.08 | |||||||||||
| 1.Providing of surplus reserves | |||||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -882,320,185.17 | -882,320,185.17 | -126,983,792.91 | -1,009,303,978.08 | |||||||||||
| 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. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| 5．Other comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | 3,954,180.00 | 3,954,180.00 | 3,954,180.00 | ||||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,566,524,645.31 | 238,280,420.37 | 910,425,068.90 | 2,989,281,402.29 | 8,795,317,662.87 | 321,380,537.12 | 9,116,698,199.99 | |||||||
Amount in last year
In RMB
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,536,774,965.31 | 245,109,114.81 | 775,402,561.35 | 3,938,609,136.59 | 9,586,701,904.06 | 459,599,723.87 | 10,046,301,627.93 | |||||||
| Add: Change of accounting policy | 11,064,350.29 | -11,353,413.48 | -289,063.19 | -289,063.19 | |||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II.Balance at the beginning of current year | 2,090,806,126.00 | 2,536,774,965.31 | 256,173,465.10 | 775,402,561.35 | 3,927,255,723.11 | 9,586,412,840.87 | 459,599,723.87 | 10,046,012,564.74 | |||||||
| III.Changed in the current year | 25,795,500.00 | 18,938,083.74 | -438,546,930.51 | -393,813,346.77 | -116,287,013.72 | -510,100,360.49 | |||||||||
| （1）Total comprehensive income | 18,938,083.74 | 736,486,112.30 | 755,424,196.04 | 107,099,691.57 | 862,523,887.61 | ||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| （II）Investment or decreasing of capital by owners | |||||||||||||||
| 1Ordinary Shares invested by shareholders | |||||||||||||||
| 2Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | |||||||||||||||
| （III）Profit allotment | -1,175,033,042.81 | -1,175,033,042.81 | -223,386,705.29 | -1,398,419,748.10 | |||||||||||
| 1.Providing of surplus reserves | |||||||||||||||
| 2.Providing of common | |||||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -1,175,033,042.81 | -1,175,033,042.81 | -223,386,705.29 | -1,398,419,748.10 | |||||||||||
| 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. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward | |||||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| 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 | 25,795,500.00 | 25,795,500.00 | 25,795,500.00 | ||||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,562,570,465.31 | 275,111,548.84 | 775,402,561.35 | 3,488,708,792.60 | 9,192,599,494.10 | 343,312,710.15 | 9,535,912,204.25 | |||||||
Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
8.Statement of change in owner’s Equity of the Parent Company
Amount in this periodIn RMB
| Items | The first half year of 2020 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,974,458,696.93 | 382,193,344.90 | 894,580,785.25 | 3,710,584,722.68 | 10,052,623,675.76 | ||||||
| Add: Change of accounting policy | ||||||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II.Balance at the beginning of current year | 2,090,806,126.00 | 2,974,458,696.93 | 382,193,344.90 | 894,580,785.25 | 3,710,584,722.68 | 10,052,623,675.76 | ||||||
| III.Changed in the current year | 3,954,180.00 | -143,912,924.53 | -569,975,319.96 | -709,934,064.49 | ||||||||
| （I）Total comprehensive income | -143,912,924.53 | 312,344,865.21 | 168,431,940.68 | |||||||||
| (II) Investment or decreasing of capital by owners | ||||||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments i | ||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| nvested capital | ||||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profit allotment | -882,320,185.17 | -882,320,185.17 | ||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | ||||||||||||
| 3．Other | -882,320,185.17 | -882,320,185.17 | ||||||||||
| (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 | ||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2020 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| 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 | 3,954,180.00 | 3,954,180.00 | ||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,978,412,876.93 | 238,280,420.37 | 894,580,785.25 | 3,140,609,402.72 | 9,342,689,611.27 | ||||||
Amount in last year
In RMB
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2019 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,948,663,196.93 | 245,109,114.81 | 759,558,277.70 | 3,680,165,040.86 | 9,724,301,756.30 | ||||||
| Add: Change of accounting policy | 11,064,350.29 | -11,353,413.48 | -289,063.19 | |||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II.Balance at the beginning of current year | 2,090,806,126.00 | 2,948,663,196.93 | 256,173,465.10 | 759,558,277.70 | 3,668,811,627.38 | 9,724,012,693.11 | ||||||
| III.Changed in the current year | 25,795,500.00 | 18,938,083.74 | -96,381,524.67 | -51,647,940.93 | ||||||||
| （I）Total comprehensive income | 18,938,083.74 | 1,078,651,518.14 | 1,097,589,601.88 | |||||||||
| (II) Investment or decreasing of capital by owners | ||||||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | ||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2019 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| 4．Other | ||||||||||||
| （III）Profit allotment | -1,175,033,042.81 | -1,175,033,042.81 | ||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | ||||||||||||
| 3．Other | -1,175,033,042.81 | -1,175,033,042.81 | ||||||||||
| (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 | ||||||||||||
Guangdong Provincial Expressway Development Co., Ltd. The Semi-Annual Financial Report 2020
| Items | The first half year of 2019 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | 25,795,500.00 | 25,795,500.00 | ||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,974,458,696.93 | 275,111,548.84 | 759,558,277.70 | 3,572,430,102.71 | 9,672,364,752.18 | ||||||
Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
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 ExpresswayCo., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co., Ltd. afterreorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of ShareHolding 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 BridgeCo. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong State-owned AssetManagement Dept., i.e.,RMB 418.2136 million, was converted into 155.025 million shares. GuangdongExpressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal personsinvested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company investedRMB 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 SecuritiesRegulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legalperson 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 approvaldocument and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document, theCompany issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at theprice of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic ofChina with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested jointstock company limited.5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the followingmanner: 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 beingRMB 1 in January 1998.7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuantto the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that ofCSRC with ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249 millionshares at the price of RMB 11 per Right.73,822,250 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.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722shares 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 capitalizedcapital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000,i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May22, 2001.11．On March 8, 2004,As approved by China Securities Regulatory Commission by documentZheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 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”.
13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing toParties such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds byGuangdong Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 sharesand paid RMB 803.50 million to Guangdong Provincial Expressway Co., Ltd for purchasing the 25% stake ofGuangdong Provincial Fokai Expressway Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; andissued 466,325,020 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 HighwayConstruction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095 A-shares to YadongFuxing Yalian Investment Co.,Ltd, Tibet Yinyue Investment Management Co.,Ltd and GF Securities Co.,Ltd.The issuance of shares have been registered on July 7, 2016, the new shares will be listed on July 8, 2016.
2. 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
3. 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 ofexpressways, 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 developmentalong the highway; Warehousing business; Intelligent transportation technology research and development andservice; Equity investment, management and consultation. (Projects that must be approved according to law canbe operated only after being approved by relevant departments).The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway andJingzhu Expressway GuangzhuSection , investment in technological industries and provision of relevant consultation while investing in Shenzhen
Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co., Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,GuangdongGuangle Expressway Co.,Ltd.， Guoyuan Securities Co., Ltd.and Hunan Lianzhi Technology Co., Ltd.
4. 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 TechnologyInvestment Co., Ltd., Guangzhou Guangzhu Transportation Investment Management Co., Ltd., Yuegao CapitalInvestment (Hengqin) Co., Ltd., its holding subsidiaries Guangfo Expressway Co., Ltd. and Jingzhu ExpresswayGuangzhu Section Co., Ltd..
(2) Changes in the scope of consolidated financial statements in the current period
None
5. Approval and submission date of financial report
The financial statements have been authorized for issuance by the Board of Directors of the Group on August25 ,2020.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 withChinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprisesissued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33, theMinistry of Finance revised order No.76) on February 15, 2006, and revised Accounting Standards (order 42 ofthe Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities tothe Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China SecuritiesRegulatory 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 thelower of its book value at its classification date and fair value minus expected disposal costs. Where assets areimpaired, 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 causematerial doubts as to the continuation capability of the Company.V. Significant Accounting Policies and Accounting Estimates
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 inthe Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financialposition, business result and cash flow of the Company as of June 30, 2020 and from January to June 2020,. In
addition, the financial statements of the Company comply, in all material respects, with the revised disclosingrequirements for financial statements and the Compilation Rules for Information Disclosure by CompaniesOffering Securities to the Public No.15—General Provisions on Financial Reports (2014 Revision) issued byChina Securities Regulatory Commission (CSRC) in 2014.
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim periodrefers to the reporting period shorter than a complete annual period. The accounting period of the Company is thecalendar 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 tothe time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses itas 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 SameControl
1.Business Combinations under the Same Control
If business participating in the combination are ultimately controlled by the same party or parties before andafter 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 samebusiness, 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 shallbe measured according to the book value of the combined party in the consolidated financial statements of theultimate controlling party on the combination date. For the long-term equity investment formed by holdingcombination under the same control, the company takes the share of the book owner's equity of the combinedparty on the combination date as the initial investment cost for forming the long-term equity investment. See thelong-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorptionand combination under the same control shall be recorded by the Company according to the original book value ofthe related assets and liabilities in the combined party. The company adjusts the capital reserve according to thedifference between the book value of the net assets obtained and the book value of the combination considerationpaid (or the total par value of the issued shares); If the capital reserve is insufficient to offset, the retained earningsshall 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 whenincurred.
Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initialmeasurement amount of bonds and other debts issued. Fees, commissions and other expenses incurred in issuingequity securities in business combination shall be offset against the premium income of equity securities, and ifthe 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 parentcompany shall prepare consolidated financial statements on the consolidation date, including consolidated balancesheet, consolidated income statement and consolidated cash flow statement.
For the consolidated balance sheet, the book value of the combined party in the consolidated financialstatements of the ultimate controlling party shall be incorporated into the consolidated financial statements, andthe transactions between the combining party and the combined party on the consolidation date and the previousperiod shall be regarded as internal transactions and offset according to the relevant principles of "ConsolidatedFinancial Statements"; The consolidated income statement and cash flow statement include the net profit and cashflow realized by the combining party and the combined party from the beginning of the current consolidationperiod to the consolidation date, and involve the cash flow generated by the transactions and internal transactionsbetween the two parties in the current period, which shall be offset according to the relevant principles of theconsolidated financial statements.
2. If the parties involved in the combination are not ultimately controlled by the same party or parties beforeand 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 cashor non-cash assets paid by the purchaser for business combination, debts issued or assumed, and equity securitiesissued on the purchase date.
In the business combination not under the same control, the intermediary expenses such as auditing, legalservices, evaluation and consultation and other related management expenses incurred by the purchaser for thebusiness combination shall be included in the current profits and losses when they occur; Transaction costs ofequity securities or debt securities issued by the purchaser as combination consideration shall be included in theinitial recognized amount of equity securities or debt securities.
For the long-term equity investment obtained by holding combination not under the same control, thecompany takes the combination cost determined on the purchase date (excluding cash dividends and profits thatshould be collected from the investee) as the initial investment cost for the long-term equity investment of thepurchaser; All identifiable assets and liabilities obtained by absorption and combination under different controlthat meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value onthe date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of thepurchaser or various identifiable assets and liabilities, the difference between the fair value of the relevantnon-monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of theassets 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 businesscombination and the fair value share of identifiable net assets of the purchaser obtained in the combination isrecognized as goodwill; In the case of absorption and combination, the difference is recognized as goodwill in theindividual financial statements of the parent company; In the case of holding combination, the difference is listedas goodwill in the consolidated financial statements.
The cost of business combination is less than the difference between the fair value share of identifiable netassets acquired during the combination, which is included in the profits and losses (non-operating income) of thecurrent combination period after review by the Company. In the case of absorption and combination, thedifference 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 currentcombination 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 itis not a package transaction, the equity of the purchased party held before the purchase date shall be re-measuredaccording to the fair value of the equity on the purchase date, and the difference between the fair value and itsbook value shall be included in the current investment income; If the equity of the purchased party held before thepurchase date involves other comprehensive income, other comprehensive income related to it shall be convertedinto the investment income of the current period on the purchase date, except for other comprehensive incomearising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by theinvested 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. Controlmeans that the Company has the power over the investee, is entitled to variable returns by participating in therelated activities of the investee, and has the ability to use the power over the investee to influence its returnamount. Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts ofinvestee(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 parentcompany and its subsidiaries, and are prepared according to other relevant information. When compiling, theimportant 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 theminority shareholders' rights and interests and the current income of minority shareholders are calculated. If theaccounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company, theaccounting statements of subsidiaries shall be adjusted according to the accounting policies and accountingperiods 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 ofthe consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the samecontrol. When preparing the consolidated balance sheet, the balance at the beginning of the year of theconsolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under thesame control. During the reporting period, the subsidiaries are disposed of and the balance at the beginning of theconsolidated 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 combinationunder the same control from the beginning to the end of the reporting period are included in the consolidatedincome statement, and the cash flows from the beginning to the end of the reporting period are included in theconsolidated 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 areincluded in the consolidated income statement, and their cash flow from the purchase date to the end of thereporting period is included in the consolidated cash flow statement. During the reporting period, the subsidiary isdisposed of, and the income, expenses and profits from the beginning of the period to the disposal date areincluded in the consolidated income statement, and the cash flow from the beginning of the period to the disposaldate 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 onthe date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fairvalue of the remaining equity, minus the difference between the share of the original subsidiary's net assetscalculated continuously from the purchase date and the sum of goodwill calculated according to the originalshareholding ratio, is included in the investment income in the current period when the control right is lost. Othercomprehensive income related to the original subsidiary's equity investment is converted into current investmentincome when the control right is lost, except for other comprehensive income generated by the investee'sre-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 minorityshares 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 subsidiariesand the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used toadjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in thecapital 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 rightsIf the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of apackage transaction, the transactions shall be treated as transactions that dispose of subsidiaries and lose controlrights; However, the difference between the disposal price and the share of the subsidiary's net assets related to thedisposal investment before the loss of control right is recognized as other comprehensive income in theconsolidated financial statements, which will be transferred to the current profit and loss when the control right islost, except for other comprehensive income arising from the re-measurement of the net liabilities or changes innet assets of the set income plan by the investee. If it is not a package transaction, before the loss of control, thedifference between the disposal price and the corresponding net assets continuously calculated by the subsidiaryfrom the purchase date will be adjusted to the capital reserve, and if the capital reserve is insufficient to offset, theretained earnings will be adjusted; In case of loss of control right, the accounting treatment shall be carried outaccording to the above accounting policy when the control right over the original subsidiary is lost.
7.Joint venture arrangements classification and Co-operation accounting treatment
A joint arrangement is an arrangement of which two or more parties have joint control. A joint arrangementis either a joint operation or a joint venture, depending on the rights and obligation of the Company in the jointarrangement. A joint operation is a joint arrangement whereby the Company has rights to the assets, andobligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby theCompany has rights to the net assets of the arrangement.
(1) Identification of joint venture arrangement
As long as two or more participants exercise joint control over an arrangement, such arrangement can beregarded as a joint venture arrangement, and all participants are not required to be entitled to joint control over thearrangement.
(2) Reassessment
If the legal form, contract terms and other relevant facts and circumstances change, the participants in thejoint venture arrangement shall reassess the joint venture arrangement: First, assess whether the original jointventure party still has joint control over the arrangement; Second, assess whether the type of joint venturearrangement has changed.
(3) Accounting treatment of participants in joint operation
① Accounting treatment of the joint venture in joint operation
A. General accounting principles
The joint venture shall recognize the following items related to its share of interests in the joint operation andcarry out accounting treatment in accordance with the relevant accounting standards for enterprises: Firstly,recognize the assets held separately and recognize the assets held jointly according to their share; Secondly,recognize the liabilities undertaken separately and recognize the liabilities jointly undertaken according to theirshare; Thirdly, recognize the income generated from the sale of its share of joint operating output; Fourthly,recognize the income generated by the joint operation due to the sale of output according to its share; Fifthly,recognize the expenses incurred separately, and recognize the expenses incurred in joint operation according to itsshare.The joint venture may use its own assets for joint operations. If the joint venture retains all ownership orcontrol over these assets, the accounting treatment of these assets is no different from the accounting treatment ofthe joint venture's own assets.
The joint venture may also purchase assets together with other joint ventures to invest in joint operations, andjointly bear the liabilities of joint operations. In this case, the joint venture shall recognize the interest share inthese assets and liabilities in accordance with the relevant provisions of the Accounting Standards for BusinessEnterprises. For example, according to the Accounting Standards for Business Enterprises No.4-Fixed Assets, theinterest share in related fixed assets is recognized, and the share in related financial assets and financial liabilitiesis recognized according to the financial instrument recognition and measurement standards.
When the joint operation is achieved through a separate entity, the joint venture shall recognize the liabilitiesundertaken separately according to the above principles, and recognize the liabilities jointly undertaken accordingto the share of the enterprise. However, if the joint venture is jointly and severally liable in accordance with therelevant laws of China or the relevant contractual stipulations due to the failure of other shareholders to providefunds to the joint venture arrangement as agreed, its accounting treatment shall be subject to the AccountingStandards for Business Enterprises No.13-Contingencies.
B. Accounting treatment for the joint venture to invest or sell assets that do not constitute business.
When the joint venture invests or sells assets for joint operation (except that the assets constitute business),before the joint operation sells the related assets to a third party or the related assets are consumed (i.e. theunrealized internal profits are still included in the book value of the assets held by the joint venture), only thegains or losses attributable to other participants in the joint venture shall be recognized. If the transaction showsthat the assets invested or sold meet the asset impairment losses specified in Accounting Standards for BusinessEnterprises No.8-Asset Impairment (hereinafter referred to as "Asset Impairment Loss Standards"), the jointventure shall fully recognize the losses.
C. Accounting treatment of assets purchased by the joint venture from joint operation that do not constitutebusiness
Before the joint venture buys assets from joint operation (except that the assets constitute business) and sellsthe assets to a third party (i.e., when unrealized internal profits are still included in the book value of assets heldby the joint venture), the share of profits and losses arising from the transaction that the joint venture is entitled toshall not be recognized. That is, at this time, only the part of the profit and loss arising from the transaction thatbelongs to other participants in the joint operation shall be recognized.
D. Accounting treatment of the joint venture's share of the interests of the joint operation that constitutes thebusiness
When the joint venture obtains the share of interests in the joint operation, and the joint operation constitutesbusiness, the corresponding accounting treatment shall be carried out in accordance with the relevant standardssuch as business combination standards, however the provisions of other relevant standards cannot conflict withthe provisions of the joint venture arrangement standards. The enterprise shall judge whether the joint operation
constitutes a business in accordance with the relevant provisions of the business combination standards. Thistreatment principle is not only applicable to the acquisition of the share of interests in the existing joint operationthat constitutes business, but also to the establishment of joint operation with other participants, and because otherparticipants introduce the existing business, the joint operation constitutes business when it is established.
② Accounting principles for participants who do not enjoy joint control over joint operationsParticipants (non-joint ventures) who are not entitled to joint control of the joint operation shall be treated asthe joint ventures if they are entitled to the assets related to the joint operation and bear the liabilities related to thejoint operation. That is, the participants in the joint operation, regardless of whether they are entitled to jointcontrol or not, will be subject to the same accounting treatment as the joint ventures as long as they are entitled tothe right to jointly operate related assets and undertake the liabilities obligation related to joint operation.Otherwise, its profit share shall be accounted for in accordance with the relevant accounting standards forenterprises.（(4) Accounting treatment of participants in a joint ventureIn a joint venture, the participants shall account for their investment in the joint venture in accordance withthe Accounting Standards for Business Enterprises No.2-Long-term Equity Investment.Participants (non-parties) who are not entitled to joint control over the joint venture shall carry out relevantaccounting treatment according to their influence on the joint venture: if they have significant influence on thejoint venture, their investment in the joint venture shall be accounted for in accordance with the provisions of thelong-term equity investment standards; If it has no significant impact on the joint venture, its investment in thejoint venture shall be accounted for in accordance with the provisions of the Standards for Recognition andMeasurement of Financial Instruments.
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investmentshaving short holding term (normally will be due within three months from the day of purchase), with strongliquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks ofchange.
9.Foreign Currency Transaction
(1) Foreign currency business
Foreign currency transactions of the Company are converted into the amount of bookkeeping base currencyaccording to the spot rate on the transaction date.
On the balance sheet date, foreign currency monetary items and foreign currency non-monetary items shallbe treated according to the following provisions: foreign currency monetary items shall be converted at the spotrate on the balance sheet date. Exchange differences arising from the difference between the spot rate on thebalance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date areincluded in the current profits and losses; Foreign currency non-monetary items measured at historical cost arestill 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 valuedetermination date, and the difference between the converted bookkeeping base currency amount and the originalbookkeeping base currency amount shall be treated as changes in fair value (including exchange rate changes) andincluded in the current profits and losses; During the capitalization period, the exchange difference between theprincipal and interest of foreign currency special loans is capitalized and included in the cost of assets that meetthe capitalization conditions.
(2) Translation of foreign currency financial statements
When converting foreign currency financial statements, the Company shall comply with the followingregulations: 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 ofoccurrence; The income and expense items in the income statement shall be converted at the spot rate on thetransaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spotrate on the transaction date). The translation difference of foreign currency financial statements generatedaccording to the above translation is recognized as other comprehensive income. The conversion of comparativefinancial statements shall be handled according to the above provisions.
10.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 contractualcash flow of financial assets, the Company classifies financial assets into: financial assets measured in amortizedcost; 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 atfair value, whose changes are included in current profits and losses, relevant transaction costs are directly includedin current profits and losses; For other types of financial assets, relevant transaction costs are included in theinitial recognition amount.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimedat collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets areconsistent with the basic lending arrangements, that is, the cash flow generated on a specific date is only thepayment of principal and interest based on the amount of outstanding principal. For such financial assets, theCompany adopts the method of real interest rate and makes subsequent measurement according to the cost ofamortization. The profits or losses resulting from amortization or impairment are included in current profits andlosses.
②Financial 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 lendingarrangements. The Company measures such financial assets at fair value and their changes are included in othercomprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculatedaccording to the actual interest rate method are included in current profits and losses.
In addition, the Company designated some non-trading equity instrument investments as financial assetsmeasured at fair value with changes included in other comprehensive income. The Company includes the relevantdividend income of such financial assets in current profits and losses, and the changes in fair value in othercomprehensive gains. When the financial asset ceases to be recognized, the accumulated gains or lossespreviously included in other comprehensive gains shall be transferred into retained income from othercomprehensive income, and not be included in current profit and loss.
③Financial 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 andclassifies them as financial assets measured at fair value and their's changes that are included in current profits andlosses. In addition, the Company designates some financial assets as financial assets measured at fair value andincludes their changes in current profits and losses in order to eliminate or significantly reduce accountingmismatches during initial recognition. In regard with such financial assets, the Company adopts fair value forsubsequent 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 valuethrough 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 costsrelating to other financial liabilities are included in the initial recognition amounts.1 Financial liabilities measured by the fair value and the changes recorded in profit or lossThe classification by which financial liabilities held-for-trade and financial liabilities designed at the initialrecognition to be measured by the fair value follows the same criteria as the classification by which financialassets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value andtheir changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequentlymeasured according to fair value. Except for hedging accounting, changes in fair value are included in currentprofits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes areincluded in current profits and losses. The liabilities are included in other comprehensive gains due to changes infair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, thechanges in fair value caused by changes in its own credit risk of other comprehensive gains are included in thecumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. Theamount is transferred to retained earnings. The remaining changes in fair value are included in current profits andlosses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financialliabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include allthe profits or losses of such financial liabilities (including the amount of the impact of the changes in the creditrisk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognitionor formed by its continuous involvement in the transferred financial asset, financial liabilities and financialguarantee 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 theprofit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: ①Thecontractual right to collect the cash flow of the financial asset is terminated; ②The financial asset has beentransferred, and almost all the risks and rewards in the ownership of the financial asset have been transferred tothe transferee; ③The financial asset has been transferred, although the enterprise neither transfers nor retainsalmost all the risks and rewards in the ownership of the financial asset, but it abandoned control of the financialassets.
In case that the enterprise does not transfer or retain almost all risks and rewards on financial assetsownership 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 recognizedcorrespondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to therisk 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 thebook value of the transferred financial assets and the sum of the consideration received from transfer andcumulative change in fair value previously recognized in other comprehensive income is accounted into thecurrent profit or loss.In case that the partial transfer of financial assets meets de-recognition conditions, the book value offinancial assets transferred shall be allocated as per respective fair value between de-recognized or notde-recognized parts, and the difference between the sum of the consideration received due to transfer with theaccumulated amount of fair value changes that is previously included in other comprehensive income and shall beallocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit orloss.
The Company shall determine whether almost all the risks and rewards of the ownership of the financialassets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. Ifalmost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee, theconfirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of thefinancial asset have been retained, the confirmation of the financial asset shall not be terminated; if neither thetransfer 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 assetsand 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 shallterminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs anagreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and thecontract terms of the new financial liabilities are substantially different from those of the original financialliabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a newfinancial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (orpart thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm anew financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and theconsideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profitsand 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 assetsand financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle thefinancial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount ispresented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shallbe 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 orderlytransaction that occurs on the measurement date. The fair value of financial instruments existing in an activemarket is determined by the Company according to its quoted price in this market. westbank The quoted prices inthe 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 actuallyoccurred market transactions are made under fair conditions.?¨ In can a financial instrument does not exist inactive markets, its fair value shall be determined by the Company with assessment techniques. The value appraisaltechniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latestmarket transaction upon their own free will, the current fair value obtained by referring to other financialinstruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc. Invaluation, the Company adopts valuation techniques that are applicable in the current situation and supported bysufficient data and other information to select input values consistent with the characteristics of assets or liabilitiesconsidered by market participants in the transactions of related assets or liabilities, and give priority to the use ofrelevant observable input values as far as possible. Unallowable values are used if the relevant observable inputvalues 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 afterdeducting 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 toholders of equity instruments are deducted from shareholders’ equity.The dividends (including "interest" generated by the tools classified as equity instruments) distributed by theCompany's equity instruments during the period of their existence shall be treated as profit distribution.
11. Impairment of financial instruments
The Company requires to confirm that the financial assets lost by impairment are financial assets measuredby amortized cost, investment in debt instruments and lease receivables which are measured at fair value andwhose 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 contractassets 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 creditimpairment loss according to the applicable anticipated credit loss measurement method (general method orsimplified method).
Credit loss refers to the difference between the cash flow of all contracts discounted according to the originalreal interest rate and the expected cash flow of all contracts receivable according to the contract, that is, thepresent value of all cash shortages. Among them, the Company discounts the financial assets purchased ororiginated 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'sfinancial assets (including other applicable items such as contract assets, similarly hereinafter) has increasedsignificantly since the initial recognition on each balance sheet day. If the credit risk has increased significantlysince the initial recognition, the Company shall measure the loss preparation according to the amount equivalentto the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initialrecognition, the Company shall measure the loss preparation according to the amount equivalent to the expectedcredit 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 maychoose 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 recognitionIf the probability of default of a financial asset on the estimated duration of the balance sheet is significantlyhigher than the probability of default during the estimated duration of the initial recognition, the credit risk of thefinancial asset is significantly increased. Except for special circumstances, the Company uses the change ofdefault risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration todetermine 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 asthe 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 financialassets 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 financialassets. If the anticipated credit losses are greater than the book value of its current impairment provision, thedifference is deemed as impairment loss. If the balance is less than the book value of the current impairmentprovision, the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
①Receivable Account and Contract assets
In regard to receivables without significant financing components, the Company shall measure losspreparation 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 tomeasure loss preparation according to the amount equivalent to the expected credit loss within the duration all thetime.
In addition to the accounts receivable that assesses the credit risk individually, receivables are divided intodifferent 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 portfolio | This portfolio is the contract quality guarantee fund and other funds |
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 |
| 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 isobjective evidence that the money cannot be recovered according to the original terms of accounts receivable and
contract assets.
②Other receivable
The Company has measured the impairment loss based on the amount of expected credit losses in the next12 months or the entire duration, based on whether the credit risk of other receivables has increased significantlysince 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 forobjective evidence that the Group will not be able to recover the amount according to the original terms ofreceivables, will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves forother combinations is aging analysis, and the accrual proportion is the same as accounts receivable.
③ Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. TheCompany has measured the impairment loss based on the amount of expected credit losses in the next 12 monthsor the entire duration, based on whether the credit risk has increased significantly since the initial recognition. TheCompany adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
12.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 theweighted 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 thecost of inventory is higher than its net realizable value, provision for inventory depreciation shall be accrued andrecorded 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 realizablevalue refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurredupon completion, estimated sales expenses and related taxes and fees.
4. Physical inventories are managed by the perpetual inventory taking system.
13.Contract assets
The Company lists the customer's unpaid contract consideration for which the Company has fulfilled itsperformance obligations according to the contract, and which is not the right to collect money from customersunconditionally (that is, only depending on the passage of time) as a contract asset in the balance sheet. Contractassets and liabilities under the same contract are listed in net amount, while contract assets and liabilities under
different contracts are not offset.
See Note III. 11, Impairment of Financial Instruments for the determination method and accounting treatmentmethod of expected credit loss of contract assets.
14. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
① The initial investment cost of long-term equity investment formed by business combination shall bedetermined in accordance with the following provisions:
A. In a business combination under the same control, if the combining party pays cash, transfers non-cashassets or assumes debts as the combination consideration, the share of the book value of the owner's equity of themerged party in the consolidated financial statements of the final controlling party shall be taken as the initialinvestment cost of long-term equity investment on the combination date. The difference between the initialinvestment cost of long-term equity investment and the cash paid, the transferred non-cash assets and the bookvalue 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, includingaudit 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 bydistinguishing the following situations:
a) For business combination realized by one exchange transaction, the cost of combination is the fair value ofassets 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 thebook value of the equity investment of the purchased party held before the purchase date and the new investmentcost 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 relatedmanagement expenses incurred for business combination are included in the current profits and losses when theyoccur;
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 thecombination cost can be reliably measured, they will be included in the combination cost.
② Except for the long-term equity investment formed by business combination, the initial investment costof long-term equity investment obtained by other means shall be determined in accordance with the followingprovisions:
A. For the long-term equity investment obtained by cash payment, the actual purchase price shall be taken asthe initial investment cost. Initial investment cost includes expenses, taxes and other necessary expendituresdirectly related to obtaining long-term equity investment.
B. For long-term equity investment obtained through exchange of non-monetary assets, the initial investmentcost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange ofNon-monetary Assets.
C. For long-term equity investment obtained through debt restructuring, the initial investment cost shall bedetermined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.
③ No matter how the long-term equity investment is obtained, when the investment is obtained, the cashdividends or profits included in the paid consideration that have been declared but not yet issued by the investeeare separately accounted as receivable items, which does not constitute the initial investment cost of obtaining the
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 inindividual financial statements. Long-term equity investments that have joint control or significant influence onthe investee shall be accounted by equity method.
① 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 profitsdeclared 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 thefair value share of identifiable net assets of the investee, the initial investment cost of long-term equity investmentshall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value shareof the identifiable net assets of the investee at the time of investment, the difference shall be included in thecurrent 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 incomeshall be recognized respectively according to the share of the net profit and loss and other comprehensive incomerealized by the invested unit, and the book value of the long-term equity investment shall be adjusted at the sametime; According to the profit or cash dividend declared and distributed by the investee, the book value oflong-term equity investment shall be reduced accordingly; The book value of the long-term equity investment isadjusted and included in the owner's equity for other changes in the owner's equity of the investee except netprofit and loss, other comprehensive income and profit distribution. When recognizing the share of the net profitand loss of the investee, the net profit of the investee is recognized after adjustment based on the fair value of theidentifiable net assets of the investee at the time of obtaining the investment. If the accounting policies andaccounting periods adopted by the investee are inconsistent with those of the Company, the financial statements ofthe investee shall be adjusted according to the accounting policies and accounting periods of the Company, andthe investment income and other comprehensive income shall be recognized accordingly. The net loss incurred bythe investee is recognized to be written down to zero by the book value of long-term equity investment and otherlong-term interests that substantially constitute the net investment of the investee, unless the Company is obligatedto bear additional losses. If the investee achieves net profit in the future, the Company will resume the recognitionof the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharingamount.
When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee, theunrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculatedaccording to the proportion that should be enjoyed, and the part attributable to the Company shall be offset, andthe investment income shall be recognized on this basis. Unrealized internal transaction losses between theCompany 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 capitalinstitutions, 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 Companychooses to measure this part of indirect investment at fair value and its change is included in profit or loss inaccordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition andMeasurement of Financial Instruments, and the rest is accounted for by equity method.
③ When the Company disposes of long-term equity investment, the difference between its book value andthe actual purchase price shall be included in the current profits and losses. For long-term equity investmentaccounted by equity method, when disposing of the investment, it adopts the same basis as the investee's direct
disposal of related assets or liabilities, and accounts for the part originally included in other comprehensiveincome 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, andthe relevant activities of such arrangement must be unanimously agreed by the participants who share the controlrights before making decisions. Significant influence means that the investor has the right to participate in thedecision-making on the financial and operating policies of the investee, but cannot control or jointly control theformulation of these policies with other parties. When determining whether the investee can be controlled or exertsignificant influence, the potential voting rights factors such as current convertible bonds and current executablewarrants of the investee held by the Company and other parties shall be considered at the same time.
15.Investment Property
The measurement mode of investment propertyThe measurement by the cost methodDepreciation or amortization methodInvestment property is held to earn rentals or for capital appreciation or for both. Investment propertyincludes leased or ready to transfer after capital appreciation land use rights and leased buildings.
（1）The measurement mode of investment property
①Depreciation or amortization method
The estimated service life, net salvage value rate and annual depreciation (amortization) rate of investmentreal estate are listed as follows:
| Type | Estimated service life (years) | Estimated net salvage value rate | Annual depreciation (amortization) rate |
| Land use right | Remaining useful life |
| Houses and buildings | 20-30 years | 3%-10% | 3%-4.85% |
② Impairment test method and accounting treatment method
See "30. Asset Impairment" for details of impairment test methods and impairment provision accrualmethods 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 investmentreal estate into self-use real estate or inventory, the fair value on the day of conversion is taken as the book valueof self-use real estate, and the difference between fair value and original book value is included in current profitsand losses. When self-use real estate or inventory is converted into investment real estate measured by fair valuemodel, the investment real estate is priced according to the fair value on the conversion day. If the fair value onthe 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 inother comprehensive income.
16.Fixed assets
（1）Confirmation conditions
The Company's fixed assets refer to tangible assets held for the production of commodities, provision oflabor services, leasing or operation management, which have a service life of more than one year, and whoseeconomic benefits are likely to be included into the Company and whose costs can be reliably measured.
The Company's fixed assets include roads and bridges, houses and buildings, machinery and equipment,electronic equipment, transportation tools and other equipment.
（2）Depreciation method
| Type | Depreciation method | Expected useful life(Year) | Residual rate（%） | Annual depreciation 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 | 30 years | 0% | |
| Jingzhu Expressway Guangzhu Section | Working flow basis | 30 years | 0% | |
| House Building | The straight-line method | 20-30 years | 3%-10% | 3%-4.85% |
| Machine Equipment | The straight-line method | 10 years | 3%-10% | 9%-9.7% |
| Electric Equipment | The straight-line method | 5-15 years | 3%-10% | 6%-19.4% |
| Transportation Equipment | The straight-line method | 5-8 years | 3%-10% | 11.25%-19.4% |
| Other | The straight-line method | 5-15 years | 3%-10% | 6%-19.4% |
Except for the fixed assets that have been fully depreciated and continue to be used, the depreciation of fixedassets is classified and accrued by the life average method and workload method, and the depreciation rate isdetermined according to the category of fixed assets, estimated service life and estimated net salvage value rate.
For the fixed assets formed by special reserve expenditure, the special reserve shall be offset according to thecost to form the fixed assets, and the accumulated depreciation of the same amount shall be recognized. The fixedassets will not be depreciated in future periods.
According to the nature and usage of fixed assets, the Company determines the service life and estimated netsalvage value of fixed assets. At the end of the year, the service life, estimated net salvage value and depreciationmethod of fixed assets shall be rechecked, and if there is any difference with the original estimate, correspondingadjustments shall be made.
(3) Identification basis, valuation and depreciation method of fixed assets leased by financing
When the leased fixed assets have substantially transferred all risks and rewards related to the assets, theCompany recognizes that the lease of the fixed assets is a financial lease.
The cost of fixed assets acquired by finance lease shall be determined according to the lower of the fair valueof the leased assets on the lease start date and the present value of the minimum lease payment.
The depreciation policy consistent with their own depreciated assets is adopted for fixed assets leased by
financing. If it can be reasonably determined that the ownership of the leased asset is acquired at the expiration ofthe lease term, depreciation shall be accrued within the serviceable life of the leased asset; If it is impossible toreasonably determine that the ownership of the leased asset can be acquired at the expiration of the lease term,depreciation shall be accrued within the shorter period of the lease term and the serviceable life of the leased asset.
17.Construction-in process
The construction in progress of the Company refers to the plant, equipment and other fixed assets underconstruction, 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 bytemporary estimation, stop interest capitalization, and start to accrue depreciation according to the determineddepreciation method of fixed assets. After the project is completed and final accounts are made, the originalestimated amount will be adjusted according to the amount of final accounts, but the original accrued depreciationamount will not be adjusted.
18.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 orproduction of assets that meet the capitalization conditions, and shall be capitalized when the following conditionsare met at the same time and included in the relevant asset costs:
① Production and expenditure have occurred;
② Borrowing costs have already occurred;
③ The purchase, construction or production activities required to make the assets reach the intended usableor saleable state have started.
Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions areabnormally interrupted in the process of purchase, construction or production, and the interruption timecontinuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized asexpenses and included in the current profits and losses until the purchase and construction of assets or theresumption of production activities. If the interruption is a necessary procedure for the purchased, built orproduced assets that meet the capitalization conditions to reach the intended usable or saleable state, thecapitalization of borrowing costs will continue.
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased, builtor produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized asexpenses 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 thecapitalization conditions, it shall be determined by deducting the interest income obtained by depositing unusedloan funds into the bank from the interest expenses actually incurred in the current period of special loan or by theinvestment income obtained by temporary investment.
If the general loan is occupied for the purpose of purchasing, building or producing assets that meet thecapitalization conditions, the interest amount of the general loan that should be capitalized shall be calculated anddetermined according to the weighted average of the accumulated asset expenditure exceeding the special loanportion 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.
19.Intangible assets
(1) Pricing method, useful life and impairment test
The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise asintangible assets, which have no physical form, and the estimated future economic benefits related to the assetsare 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 determinedvalue.
(1) If the purchase price of intangible assets exceeds the normal credit conditions, which is of financingnature in essence, the cost of intangible assets is determined based on the present value of the purchase price. Thedifference between the actual paid price and the present value of the purchase price shall be included in the currentprofits and losses within the credit period, except that it should be capitalized according to the regulations.
(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in theinvestment contract or agreement, unless the value agreed in the contract or agreement is unfair.
(3) The expenditure of internal research and development projects of the Company is divided into researchstage expenditure and development stage expenditure. Research refers to an original and planned investigation toacquire and understand new scientific or technical knowledge. Development refers to the application of researchresults or other knowledge to a plan or design to produce new or substantially improved materials, devices andproducts before commercial production or use.
Expenditures during the research phase of internal research and development projects are included in thecurrent profits and losses when they occur. Expenditures in the development stage of internal research anddevelopment projects that meet the following conditions are recognized as intangible assets: it is technicallyfeasible to complete the intangible assets so that they can be used or sold; Have the intention to complete theintangible assets and use or sell them; The ways in which intangible assets generate economic benefits, includingthose that can prove that there is a market for products produced by using the intangible assets or that theintangible assets themselves exist in the market, and that the intangible assets will be used internally, should provetheir usefulness; Have sufficient technical, financial and other resources to complete the development of theintangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to thedevelopment 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 servicelife 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 itscost. For intangible assets for which impairment provision has been made, the accumulated amount of impairmentprovision 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 |
20. Long-term amortizable expenses
Long-term deferred expenses are recorded according to the actual amount incurred, and are amortizedequally in installments during the benefit period or within the prescribed period. If the long-term prepaid expenseitem 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.
21. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer goods to customers for the received orreceivable consideration from customers. If the customer has paid the contract consideration or the Group hasobtained the unconditional collection right before the Group transfers the goods to the customer, the Group willlist the received or receivable amount as the contract liability at the earlier of the actual payment made by thecustomer and the due date for payment. Contract assets and liabilities under the same contract are listed in netamount, while contract assets and liabilities under different contracts are not offset.
22. Employee Benefits
Employee compensation refers to various forms of remuneration or compensation given by the Company forobtaining services provided by employees or dissolving labor relations. Employee compensation includesshort-term salary, post-employment benefits, dismissal benefits and other long-term employee benefits. Benefitsprovided by the Company to spouses, children, dependents, survivors of deceased employees and otherbeneficiaries 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 actualshort-term salary as a liability, which is included in the current profits and losses, except that other accountingstandards 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 benefitplans. Post-employment benefit plan refers to the agreement reached between the Company and employees onpost-employment benefits, or the rules or measures formulated by the Company to provide post-employmentbenefits to employees, among which the set deposit plan refers to the post-employment welfare plan in which theCompany 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 fromthe dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: whenthe company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relationsplan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganizationinvolving 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 setdeposit plan, they shall be handled according to the accounting policies of the set deposit plan mentioned above;Otherwise, the net liabilities or net assets of other long-term employee benefits shall be recognized and measuredin accordance with the accounting policies of defined benefit plans mentioned above.
23.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:
① The obligations are the current obligations undertaken by the enterprise;
② Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
③ 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 fulfillrelevant current obligations. There is a continuous range of required expenditure, and the possibility of occurrenceof various results in this range is the same, and the best estimate is determined according to the intermediate valuein this range. In other cases, the best estimates are treated as follows:
① Contingencies involving a single item shall be determined according to the most probable amount.
② Contingencies involving multiple items shall be calculated and determined according to various possibleresults and relevant probabilities.
When determining the best estimate, the risk, uncertainty and time value of money related to contingenciesshall be considered comprehensively. If the time value of money has great influence, the best estimate isdetermined 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 becompensated by a third party, the compensation amount can be recognized as an asset only when it is basicallyconfirmed that it can be received. The recognized compensation amount shall not exceed the book value of theestimated liabilities.
The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there isconclusive evidence that the book value cannot truly reflect the current best estimate, the book value shall beadjusted according to the current best estimate.
24. Revenues
Accounting policies adopted for income recognition and measurement
Income is the total inflow of economic benefits formed in the daily activities of the Company, which willlead to the increase of shareholders' equity and has nothing to do with the capital invested by shareholders.Revenue is recognized when its amount and related costs can be reliably measured, the related economic benefitsare likely to flow into the company, and other recognition conditions of the following different types of incomeare met at the same time.
The Company's main income includes: income from traffic service fees and provision of labor services.
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable byvehicles when passing through.
(2) Income from providing labor services
For services started and completed in the same fiscal year, income is recognized when the services arecompleted. 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, providedthat the result of the labor service transaction can be reliably estimated. When the following conditions can besatisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of laborservices can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;
③ 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 arecompleted. 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, providedthat the result of the labor service transaction can be reliably estimated. When the following conditions can besatisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of laborservices can be reliably measured; ② the economic benefits related to the transaction can flow into theenterprise;If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably, thefollowing situations shall be dealt with respectively:
① If the labor cost already incurred is expected to be compensated, the income from the service shall berecognized according to the amount of the labor cost already incurred, and the labor cost shall be carried over atthe same amount.
② If the incurred labor cost is not expected to be compensated, the incurred labor cost shall be included inthe profits and losses of the current period, and the income from the provision of labor service shall not berecognized.
When the contracts or agreements signed between the Company and other enterprises include selling goodsand providing services, if the part for selling goods and the part for providing services can be distinguished andmeasured separately, the part for selling goods will be treated as goods sales and the part for providing serviceswill be treated as service provision. Sales of goods and services can not be distinguished, or although they can bedistinguished, they can not be measured separately. All parts for the selling goods and providing services will betreated as sales of goods.The adoption of different business models in similar businesses leads to differences in accounting policies forincome recognition
25.Contract cost
If the incremental cost incurred by the Company for obtaining the contract is expected to be recovered, itshall be recognized as an asset as the contract acquisition cost. However, if the amortization period of the assetdoes not exceed one year, it will be included in the current profits and losses when it occurs.
If the cost incurred for the performance of the contract does not fall within the scope of other accountingstandards for business enterprises other than Accounting Standards for Business Enterprises No.14-Revenue(Revised in 2017) and meets the following conditions at the same time, it will be recognized as an asset forcontract performance cost: ① The cost is directly related to a current or expected contract, including direct labor,direct materials, manufacturing expenses (or similar expenses), costs explicitly borne by customers, and othercosts incurred only because of the contract; ② This cost increases the resources of the Company for fulfilling itsperformance obligations in the future; ③ The cost is expected to be recovered.
Assets related to the contract cost are amortized on the same basis as the recognition of commodity incomerelated to the assets, and are included in the current profits and losses.
26. Government Grants
Government subsidies are recognized when they meet the conditions attached to government subsidies andcan 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 obtainedreliably, 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 forpurchasing 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 formlong-term assets, the part of the government subsidy corresponding to the value of the assets shall be regarded asthe government subsidy related to the assets, and the rest shall be regarded as the government subsidy related tothe income; Where it is difficult to be distinguished, government subsidies as a whole are treated asincome-related government subsidies.Government subsidies related to assets offset the book value of related assets, or are recognized as deferredrevenue and included in profits and losses by stages according to a reasonable and systematic method within theservice life of related assets. Government subsidies related to income, which are used to compensate related costsor losses that have occurred, shall be included in current profits and losses or offset related costs; If they are usedto compensate related costs or losses in later periods, they will be included in the deferred revenue, and they willbe included in the current profits and losses or offset related costs during the recognition period of related costs orlosses. Government subsidies measured in nominal amount are directly included in current profits and losses. TheCompany 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 includedin other income or offset related costs. Government subsidies irrelevant to routine activities shall be included intothe non-operating receipt and disbursement.When the recognized government subsidy needs to be returned, if the book value of related assets is offsetduring 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 currentprofits and losses; In other cases, it is directly included in the current profits and losses.For the discount interest of preferential policy loans, if the finance allocates the discount interest funds to thelending bank, the actually received loan amount is taken as the recorded value of the loan, and the borrowing costis calculated according to the loan principal and preferential policy interest rate. If the finance directly allocatesthe discount interest funds to the Company, the discount interest will offset the borrowing costs.
27.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
① If there is a deductible temporary difference between the book value of an asset or liability and its taxbasis, the deferred income tax assets generated by the deductible temporary difference shall be calculated andconfirmed according to the applicable tax rate during the expected period of recovering the asset or paying off theliability.
② On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to beobtained in the future period to offset the deductible temporary difference, the unrecognized deferred income taxassets in the previous period shall be recognized.
③ On the balance sheet date, the book value of deferred income tax assets shall be reviewed. If it is unlikelythat enough taxable income will be obtained in the future period to offset the benefits of deferred income taxassets, the book value of deferred income tax assets will be written down. When sufficient taxable income is likelyto 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 tothe applicable tax rate during the expected period of recovering the assets or paying off the liabilities.
28.Lease
(1) Accounting methods for operating leases
As the lessee, the Company's operating lease rent is included in the relevant asset cost or current profit andloss according to the straight-line method in each period of the lease term; The initial direct expenses incurred areincluded in the current profits and losses; Contingent rents are included in current profits and losses when theyactually occur.As the lessor, the Company includes the assets used as operating leases in the relevant items in the balancesheet according to the nature of the assets; For the rent of operating lease, it is recognized as the current profit andloss according to the straight-line method in each period of the lease term; The initial direct expenses incurred areincluded in the current profits and losses; For the fixed assets in the operating lease assets, the depreciation policyof similar assets is adopted for depreciation; For other operating lease assets, a systematic and reasonable methodis adopted for amortization; Contingent rents are included in current profits and losses when they actually occur.
(2) Accounting methods for financial leasing
① As the lessee
On the start date of the lease term, the Company takes the lower of the fair value of the leased assets on thelease start date and the present value of the minimum lease payment as the recorded value of the leased assets, andthe minimum lease payment as the recorded value of the long-term payables, with the difference as theunrecognized financing expenses; Initial direct expenses such as handling fees, attorney fees, travel expenses,stamp duty, etc., which occur during the lease negotiation and signing of the lease contract, are included in thevalue of the leased assets; Unrecognized financing expenses are allocated in each period of the lease term, and thecurrent financing expenses are calculated and recognized by the effective interest rate method; Contingent rentsare included in current profits and losses when they actually occur.
When calculating the present value of the minimum lease payment, if the lessor's lease inclusive interest ratecan be obtained, the lease inclusive interest rate shall be used as the discount rate; Otherwise, the interest ratestipulated in the lease contract shall be used as the discount rate. If the lessor's lease interest rate cannot beobtained and the lease contract does not stipulate the interest rate, the bank loan interest rate of the same periodshall be used as the discount rate.
The Company adopts the depreciation policy consistent with that of the self-owned fixed assets to withdrawthe depreciation of the leased assets. If it can be reasonably determined that the ownership of the leased asset isacquired at the expiration of the lease term, depreciation shall be accrued within the 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 expirationof the lease term, depreciation shall be accrued within the shorter period of the lease term and the service life ofthe leased asset.
② As the lessor
On the start date of the lease term, the Company shall take the sum of the minimum lease receipt amount andthe initial direct expenses on the lease start date as the recorded value of the financial lease receivable, and recordsthe unsecured residual value; Recognize the difference between the sum of the minimum lease payment amount,initial direct expenses and unsecured residual value and its present value as unrealized financing income;Distribute unrealized financing income in each period of the lease term; Calculate and confirm the financingincome of the current period by using the effective interest rate method; And include contingent rents in currentprofits and losses when they actually occur.
29. Held-for-sale non-current assets, disposal group and termination of operation
(1) Classification and measurement of held-for-sale non-current assets or disposal groupsWhen the book value is recovered mainly by selling (including the exchange of non-monetary assets withcommercial substance) rather than continuously using a non-current asset or disposal group, the non-current assetor disposal group is classified as held for sale.The above-mentioned non-current assets do not include investment real estate measured by fair value model,biological assets measured by net amount of fair value minus selling expenses, assets formed by employeecompensation, financial assets, deferred income tax assets and rights arising from insurance contracts.
The disposal group refers to a group of assets disposed of together by sale or other means in a transaction asa whole, and liabilities directly related to these assets transferred in the transaction. Under certain circumstances,the disposal group includes goodwill obtained in business combination, etc.
At the same time, non-current assets or disposal groups that meet the following conditions are classified asheld for sale: according to the practice of selling such assets or disposal groups in similar transactions, thenon-current assets or disposal groups can be sold immediately under the current situation; The sale is very likelyto happen, that is, a resolution has been made on a sale plan and a firm purchase commitment has been obtained,and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to thesale of investments in subsidiaries, whether or not the Company retains part of the equity investments after thesale, when the investment in subsidiaries to be sold meets the classification conditions of held-for-sale, theinvestment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements, and allassets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.
When the non-current assets or disposal groups held for sale are initially measured or re-measured on thebalance sheet date, the difference between the book value and the net amount after deducting the selling expensesfrom the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss recognizedfor the held-for-sale disposal group, the book value of goodwill in the disposal group is offset first, and then thebook value of non-current assets in the disposal group is offset proportionally.
If the net amount of non-current assets held for sale or disposal group's fair value minus selling expensesincreases on the subsequent balance sheet date, the previously written-down amount will be restored and reversedwithin the amount of asset impairment loss recognized after being classified as held-for-sale, and the reversedamount will be included in the current profits and losses. The book value of offset goodwill shall not be reversed.
Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part ofthe investments of affiliated enterprises or joint ventures classified as held-for-sale shall be accounted for by theequity method for those classified as held for sale, while those retained (not classified as held-for-sale) shallcontinue to be accounted for by the equity method; When the Company loses significant influence on the affiliatedenterprise and joint venture due to the sale, it shall stop using the equity method.
If a certain non-current asset or disposal group is classified as held for sale, but the classification conditionsof held for sale are no longer met, the Company will stop classifying it as held for sale and measure it according tothe lower of the following two amounts:
① For the book value of the asset or disposal group before it is classified as held for sale, the amountadjusted according to the depreciation, amortization or impairment which should have been recognized withoutbeing classified as held for sale;
② Recoverable amount.
(2) Termination of operation
Termination of operation refers to the components that have been disposed of by the Company or classifiedas held for sale by the Company and can be distinguished separately, which meet one of the following conditions:
① This component represents an independent main business or a separate main business area.
② This component is part of an associated plan to dispose of an independent main business or a separatemain business area.
③ This component is a subsidiary acquired for resale.
(3) Presentation
In the balance sheet, the Company lists the non-current assets held for sale or the assets in the disposal groupheld for sale as "assets held for sale", and lists the liabilities in the disposal group held for sale as "liabilities heldfor sale".
The Company separately lists the profit and loss from continuing operations and the profit and loss fromtermination of operations in the income statement. For non-current assets or disposal groups held for sale that donot meet the definition of termination of operation, the impairment loss, reversal amount and disposal profit andloss are listed as the profit and loss of continuing operations. Operating profit and loss and disposal profit and losssuch as impairment loss and reversal amount of discontinued operation are listed as discontinued operation profitand loss.
A disposal group that intends to terminate its use instead of selling and meets the conditions of relevantcomponents in the definition of operation termination shall be listed as operation termination from the date whenit ceases to use.
For the discontinued operations listed in the current period, in the current financial statements, theinformation originally listed as the profit and loss of continuing operations is re-listed as the profit and loss ofdiscontinued operations in the comparable accounting period. If the termination of operation no longer meets theclassification conditions for held-for-sale, the information originally listed as the profit and loss of operationtermination in the current financial statements will be listed again as the profit and loss of continuing operation inthe comparable accounting period.
30. 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 theexpected 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 whichthe assets are located have undergone major changes in the current period or in the near future, which will haveadverse effects on the Company.
(3) The market interest rate or other market return on investment has increased in the current period, whichaffects the discount rate used by enterprises to calculate the present value of the estimated future cash flow ofassets, 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 willbe lower than expected, such as the net cash flow created by assets or the realized operating profit (or loss) is farlower 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 Standardsfor 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 conductsimpairment test when there are signs of impairment-estimating their recoverable amount. The recoverable amountis determined by the higher of the net amount of the fair value of the asset minus the disposal expenses and thepresent value of the estimated future cash flow of the asset. If the recoverable amount of an asset is lower than itsbook value, the book value of the asset shall be written down to the recoverable amount, and the written-downamount 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 thebasis of individual assets. When it is difficult to estimate the recoverable amount of a single asset, the recoverableamount of the asset group is determined based on the asset group to which the asset belongs.Asset group is the smallest asset portfolio that can be recognized by the Company, and its cash inflow isbasically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. Theidentification of asset group is based on whether the main cash inflow generated by asset group is independent ofother assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and servicelife formed by business combination and not yet in serviceable condition, regardless of whether there is any signof impairment. The impairment test of goodwill is carried out in combination with its related asset group orcombination of asset groups.Once the asset impairment loss is confirmed, it will not be reversed in the following accounting period.
31.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □ Not applicable
| Contents and causes for changes of accounting policy | Approval procedures | Remarks |
| On July 5, 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprises No.14-Income (Revised in 2017) (CK [2017] No.22) (hereinafter referred to as the "New Income Standards"). | It was adopted at the 4th meeting of the 9th Board of Directors of the Company on April 3, 2020 | The Company began to implement the aforementioned new income standards from January 1, 2020 |
On July 5, 2017, the Ministry of Finance issued the Accounting Standards for Business EnterprisesNo.14-Income (Revised in 2017) (CK [2017] No.22) (hereinafter referred to as the "New Income Standards").After the fourth meeting of the ninth board of directors of the company approved the resolution on April 3, 2020,the company will implement the aforesaid New Income Standards from January 1, 2020.The New Income Standards establish a new income recognition model for regulating the income generatedby contracts with customers. In order to implement the new revenue standard, the Company re-evaluated therecognition, measurement, accounting and presentation of main contract income. According to the new incomestandards, only the cumulative impact of unfinished contracts on January 1, 2020 are adjusted. The accumulatedimpact amount of the first implementation is adjusted. The amount of retained earnings at the beginning of thefirst implementation period (i.e. January 1, 2020) and other related items in the financial statements will not beadjusted for the information of comparable periods.
Influence of implementing new income standards on financial statements on January 1, 2020:
| Items | December 31,2019（Before change） | January 1,2020（After change） | ||
| Consolidated statements | Parent statement | Consolidated statements | Parent statement | |
| Account receivable | 125,343,724.66 | 21,864,051.27 | 127,694,377.99 | 21,864,051.27 |
| Other account receivable | 26,618,178.57 | 13,435,651.19 | 19,172,247.47 | 13,435,651.19 |
| Contract assets | 5,095,277.77 | |||
| Inventories | 111,683.22 | 111,683.22 | ||
| Other Non-current assets | 50,909,325.73 | 36,901,029.57 | 50,909,325.73 | 36,901,029.57 |
| Advance receipts | 15,605,094.69 | 12,817,484.06 | ||
| Contract liabilities | 2,787,610.63 | |||
| Retained profit | 3,877,431,844.64 | 3,710,584,722.68 | 3,877,431,844.64 | 3,710,584,722.68 |
| Surplus reserves | 910,425,068.90 | 894,580,785.25 | 910,425,068.90 | 894,580,785.25 |
（2）Significant accounting policy changes
√ Applicable □ Not applicable
| Contents and causes of changes in accounting estimates | Approval procedure | Time point at which the application begins | Remarks |
| From January 1, 2020, the Traffic Volume Forecast and Charge Revenue Report of Foshan-Kaiping Expressway and the Traffic Volume Forecast and Charge Revenue Report of Guangzhu Section of Jiangzhu Expressway issued by Guangdong Transportation Planning and Design Institute Co., Ltd. in 2019 for the Fokai Branch of Guangdong Expressway Development Co., Ltd., a branch of the Company, and Jingzhu Expressway Guangzhu Section Co., Ltd., a holding subsidiary are used as depreciation basis | On December 31, 2019, the third (temporary) meeting of the ninth board of directors was held, and the meeting passed the Proposal on Changes in Accounting Estimates | January 1,2020 |
On December 31, 2019, the Company held the 3rd (provisional) meeting of the ninth board of directors,which passed the Proposal on Changes in Accounting Estimates, and agreed to adopt the Traffic Volume Forecastand Charge Revenue Report of Foshan-Kaiping Expressway and the Traffic Volume Forecast and Charge RevenueReport of Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway issued by Guangdong TransportationPlanning and Design Institute Co., Ltd. in 2019 for the Fokai Branch of Guangdong Expressway Development Co.,Ltd., a branch of the Company, and Jingzhu Expressway Guangzhu Section Co., Ltd., a holding subsidiary fromJanuary 1, 2020. The Company adopts the future applicable method for this item. This change in accountingestimate results in a decrease of RMB 84,060,742.83 in depreciation of fixed assets in the current period than theoriginal accounting estimate, a decrease of RMB 84,060,742.83 in operating cost, an increase of RMB63,045,557.12 in net profit attributable to the shareholders of the parent company, and an increase of RMB60,150,595.41 in net profit attributable to the minority shareholders of the parent company.
| Contents and causes of changes in accounting estimates | Approval procedure | Time point at which the application begins | Affected report items | Impact amount |
| Forecast traffic volume of expressway | Resolution of the board of directors | January 1, 2020 | Fixed assets | 84,060,742.83 |
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New StandardsGoverning Financial Instruments, Revenue or Leases from year 2020
ApplicableWhether need to adjust the balance sheet account at the beginning of the year
√ Yes □No
Consolidated balance sheet
In RMB
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| Current asset： | |||
| Monetary fund | 2,817,920,894.50 | 2,817,920,894.50 | |
| Settlement provision | |||
| Outgoing call loan | |||
| Transactional financial assets | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Account receivable | 125,343,724.66 | 127,694,377.99 | 2,350,653.33 |
| Financing of receivables | |||
| Prepayments | 10,894,246.41 | 10,894,246.41 | |
| Insurance receivable | |||
| Reinsurance receivable | |||
| Provisions of Reinsurance contracts receivable | |||
| Other account receivable | 26,618,178.57 | 19,172,247.47 | -7,445,931.10 |
| Including：Interest receivable | |||
| Dividend receivable | 7,205,472.90 | 7,205,472.90 | |
| Repurchasing of financial assets | |||
| Inventories | 111,683.22 | 111,683.22 | |
| Contract assets | 5,095,277.77 | 5,095,277.77 | |
| Assets held for sales |
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| Non-current asset due within 1 year | 51,745.32 | 51,745.32 | |
| Other current asset | |||
| Total of current assets | 2,980,940,472.68 | 2,980,940,472.68 | |
| Non-current assets | |||
| Loans and payment on other’s behalf disbursed | |||
| Debt investment | |||
| Other investment on bonds | |||
| Long-term receivable | |||
| Long term share equity investment | 3,255,739,898.36 | 3,255,739,898.36 | |
| Other equity instruments investment | 1,835,822,604.77 | 1,835,822,604.77 | |
| Other non-current financial assets | |||
| Property investment | 3,331,500.37 | 3,331,500.37 | |
| Fixed assets | 8,925,700,473.65 | 8,925,700,473.65 | |
| Construction in progress | 229,098,299.48 | 229,098,299.48 | |
| Production physical assets | |||
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 6,393,895.17 | 6,393,895.17 | |
| Development expenses | |||
| Goodwill | |||
| Long-germ expenses to be amortized | 1,114,764.44 | 1,114,764.44 | |
| Deferred income tax asset | 385,494,106.13 | 385,494,106.13 | |
| Other non-current asset | 50,909,325.73 | 50,909,325.73 | |
| Total of non-current assets | 14,693,604,868.10 | 14,693,604,868.10 | |
| Total of assets | 17,674,545,340.78 | 17,674,545,340.78 | |
| Current liabilities | |||
| Short-term loans | |||
| Loan from Central Bank | |||
| Borrowing funds |
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| Transactional financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Account payable | 290,657,734.31 | 290,657,734.31 | |
| Advance receipts | 15,605,094.69 | 12,817,484.06 | -2,787,610.63 |
| Contract liabilities | 2,787,610.63 | 2,787,610.63 | |
| Selling of repurchased financial assets | |||
| Deposit taking and interbank deposit | |||
| Entrusted trading of securities | |||
| Entrusted selling of securities | |||
| Employees’ wage payable | 14,822,524.70 | 14,822,524.70 | |
| Tax payable | 84,257,586.94 | 84,257,586.94 | |
| Other account payable | 626,180,586.92 | 626,180,586.92 | |
| Including：Interest payable | |||
| Dividend payable | 20,020,119.31 | 20,020,119.31 | |
| Fees and commissions payable | |||
| Reinsurance fee payable | |||
| Liabilities held for sales | |||
| Non-current liability due within 1 year | 795,861,958.07 | 795,861,958.07 | |
| Other current liability | 189,628.17 | 189,628.17 | |
| Total of current liability | 1,827,575,113.80 | 1,827,575,113.80 | |
| Non-current liabilities： | |||
| Reserve fund for insurance contracts | |||
| Long-term loan | 4,640,425,000.00 | 4,640,425,000.00 | |
| Bond payable | 678,124,972.89 | 678,124,972.89 |
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| Including：preferred stock | |||
| Sustainable debt | |||
| Lease liability | |||
| Long-term payable | 39,369,379.91 | 39,369,379.91 | |
| Long-term remuneration payable to staff | |||
| Expected liabilities | |||
| Deferred income | |||
| Deferred income tax liability | 238,453,976.29 | 238,453,976.29 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 5,596,373,329.09 | 5,596,373,329.09 | |
| Total of liability | 7,423,948,442.89 | 7,423,948,442.89 | |
| Owners’ equity | |||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 | |
| Other equity instruments | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Capital reserves | 2,562,570,465.31 | 2,562,570,465.31 | |
| Less：Shares in stock | |||
| Other comprehensive income | 382,193,344.90 | 382,193,344.90 | |
| Special reserve | |||
| Surplus reserves | 910,425,068.90 | 910,425,068.90 | |
| Common risk provision | |||
| Retained profit | 3,877,431,844.64 | 3,877,431,844.64 | |
| Total of owner’s equity belong to the parent company | 9,823,426,849.75 | 9,823,426,849.75 | |
| Minority shareholders’ equity | 427,170,048.14 | 427,170,048.14 | |
| Total of owners’ equity | 10,250,596,897.89 | 10,250,596,897.89 | |
| Total of liabilities and | 17,674,545,340.78 | 17,674,545,340.78 |
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| owners’ equity |
Adjustment statementParent Company Balance Sheet
In RMB
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| Current asset： | |||
| Monetary fund | 2,791,384,501.78 | 2,791,384,501.78 | |
| Transactional financial assets | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Account receivable | 21,864,051.27 | 21,864,051.27 | |
| Financing of receivables | |||
| Prepayments | 1,737,598.88 | 1,737,598.88 | |
| Other account receivable | 13,435,651.19 | 13,435,651.19 | |
| Including：Interest receivable | |||
| Dividend receivable | 7,205,472.90 | 7,205,472.90 | |
| Inventories | |||
| Contract assets | |||
| Assets held for sales | |||
| Non-current asset due within 1 year | 151,637,139.08 | 151,637,139.08 | |
| Other current asset | |||
| Total of current assets | 2,980,058,942.20 | 2,980,058,942.20 | |
| Non-current assets： | |||
| Debt investment | 537,903,684.98 | 537,903,684.98 | |
| Other investment on bonds | |||
| Long-term receivable | |||
| Long term share equity | 4,789,404,907.17 | 4,789,404,907.17 |
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| investment | |||
| Other equity instruments investment | 1,835,822,604.77 | 1,835,822,604.77 | |
| Other non-current financial assets | |||
| Property investment | 3,079,362.12 | 3,079,362.12 | |
| Fixed assets | 6,818,701,482.08 | 6,818,701,482.08 | |
| Construction in progress | 46,952,925.08 | 46,952,925.08 | |
| Production physical assets | |||
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 2,533,878.12 | 2,533,878.12 | |
| Development expenses | |||
| Goodwill | |||
| Long-germ expenses to be amortized | |||
| Deferred income tax asset | 385,296,935.33 | 385,296,935.33 | |
| Other non-current asset | 36,901,029.57 | 36,901,029.57 | |
| Total of non-current assets | 14,456,596,809.22 | 14,456,596,809.22 | |
| Total of assets | 17,436,655,751.42 | 17,436,655,751.42 | |
| Current liabilities | |||
| Short-term loans | |||
| Transactional financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Account payable | 129,930,285.56 | 129,930,285.56 | |
| Advance receipts | |||
| Contract Liabilities | |||
| Employees’ wage payable | 6,340,740.61 | 6,340,740.61 | |
| Tax payable | 8,704,510.83 | 8,704,510.83 | |
| Other account payable | 582,131,356.01 | 582,131,356.01 |
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| Including：Interest payable | |||
| Dividend payable | 20,020,119.31 | 20,020,119.31 | |
| Liabilities held for sales | |||
| Non-current liability due within 1 year | 744,589,133.72 | 744,589,133.72 | |
| Other current liability | 821,133,339.57 | 821,133,339.57 | |
| Total of current liability | 2,292,829,366.30 | 2,292,829,366.30 | |
| Non-current liabilities： | |||
| Long-term loan | 4,243,730,000.00 | 4,243,730,000.00 | |
| Bond payable | 678,124,972.89 | 678,124,972.89 | |
| Including：preferred stock | |||
| Sustainable debt | |||
| Lease liability | |||
| Long-term payable | 39,369,379.91 | 39,369,379.91 | |
| Long-term remuneration payable to staff | |||
| Expected liabilities | |||
| Deferred income | |||
| Deferred income tax liability | 129,978,356.56 | 129,978,356.56 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 5,091,202,709.36 | 5,091,202,709.36 | |
| Total of liability | 7,384,032,075.66 | 7,384,032,075.66 | |
| Owners’ equity | |||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 | |
| Other equity instruments | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Capital reserves | 2,974,458,696.93 | 2,974,458,696.93 | |
| Less：Shares in stock | |||
| Other comprehensive income | 382,193,344.90 | 382,193,344.90 | |
| Special reserve |
| Items | December 31,2019 | January 1,2020 | Amount involved in the adjustment |
| Surplus reserves | 894,580,785.25 | 894,580,785.25 | |
| Retained profit | 3,710,584,722.68 | 3,710,584,722.68 | |
| Total of owners’ equity | 10,052,623,675.76 | 10,052,623,675.76 | |
| Total of liabilities and owners’ equity | 17,436,655,751.42 | 17,436,655,751.42 |
Note
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New StandardsGoverning Financial Instruments or Leases from year 2020
□ Applicable √ Not applicable
32. Fair value measurement
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderlytransaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value, assuming that the orderly transaction ofselling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is nomajor market, the Company assumes that the transaction will be conducted in the most favorable market of relatedassets or liabilities. The main market (or the most favorable market) is the trading market that the Company canenter on the measurement day. The Company adopts the assumptions used by market participants to maximizetheir 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 thebest purpose to generate economic benefits or the ability to sell the assets to other market participants for the bestpurpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported bysufficient available data and other information, and gives priority to the relevant observable input values, and onlyuses 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 fairvalue level according to the lowest level input value which is of great significance to fair value measurement as awhole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtainedon the measurement date in an active market; The second-level input value is directly or indirectly observableinput values of related assets or liabilities except the first-level input value; The third level input value is theunobservable input value of related assets or liabilities.On each balance sheet date, the Company reassesses the assets and liabilities recognized in the financialstatements that are continuously measured at fair value to determine whether there is a conversion between thefair value measurement levels.
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 | 7%、5% |
| 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
According to the Notice of the Ministry of Finance and the State Administration of Taxation on FullyOpening the Pilot of Changing Business Tax to VAT (CS [2016] No.36), the qualified contract energymanagement services of the subsidiary Guangdong High-speed Technology Investment Co., Ltd. are exempt fromVAT.VII. Notes to the major items of consolidated financial statementUnless otherwise specified, in the following notes (including the notes to main items in the financialstatements of the parent company) "the beginning of the period" refers to January 1, 2020, "the end of the period"refers to June 30, 2020, "current period" refers to January-June, 2020, and "last period" refers to January-June,2019.(unless otherwise specified)
1.Monetary Capital
In RMB
| Items | Amount in year-end | Balance Year-beginning |
| Cash | 92,943.37 | 20,587.32 |
| Bank deposit | 3,058,886,322.31 | 2,817,384,626.65 |
| Other | 517,476.78 | 515,680.53 |
| Total | 3,059,496,742.46 | 2,817,920,894.50 |
Other noteOn January 30,2020,The balance of restricted bank deposits at the end of the period was 1,221,200.00 yuan, whichwas the land reclamation fund deposited into the fund custody account for the reconstruction and expansion projectof Sanbao to Shuikou section of Fokai Expressway.
2. Account receivable
1.Classification account receivables.
In RMB
| Category | Amount in year-end | Balance Year-beginning | |||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | ||||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | |||
| Of which： | |||||||||||
| Accrual of bad debt provision by portfolio | 135,661,315.25 | 100% | 1,591,677.10 | 1.17% | 134,069,638.15 | 129,049,371.28 | 100% | 1,354,993.29 | 1.05% | 127,694,377.99 | |
| Of which： | |||||||||||
| Aging portfolio | 133,863,918.46 | 98.68% | 1,591,677.10 | 1.19% | 132,272,241.36 | 126,698,717.95 | 98.18% | 1,354,993.29 | 1.07% | 125,343,724.66 | |
| Quality guarantee portfolio | 1,797,396.79 | 1.32% | 1,797,396.79 | 2,350,653.33 | 1.82% | 2,350,653.33 | |||||
| Total | 135,661,315.25 | 100% | 1,591,677.10 | 1.17% | 134,069,638.15 | 129,049,371.28 | 1,354,993.29 | 127,694,377.99 | |||
Accrual of bad debt provision by portfolio：Accrual of bad debt provision by aging portfolioIn RMB
| Name | Balance in year-end | ||
| Receivable accounts | Bad debt provision | Withdrawal proportion | |
| Within 1 year | 124,471,086.67 | 0.00% | |
| 1-2 years | 8,465,399.40 | 846,539.95 | 10.00% |
| 2-3 years | 75,000.00 | 22,500.00 | 30.00% |
| 3-4 years | 123,880.00 | 61,940.00 | 50.00% |
| 4-5 years | 678,552.39 | 610,697.15 | 90.00% |
| Over 5 years | 50,000.00 | 50,000.00 | 100.00% |
| Total | 133,863,918.46 | 1,591,677.10 | -- |
Note of the basis of recognizing the portfolio:
Provision for bad debts according to the age portfolioAccrual of bad debt provision by portfolio: Notes of the basis of Quality guarantee the group
In RMB
| Name | Balance in year-end | ||
| Receivable accounts | Bad debt provision | Withdrawal proportion | |
| Quality guarantee | 1,797,396.79 | ||
| Total | 1,797,396.79 | -- | |
Notes of the basis of recognizing the portfolio:
Provision for bad debts according to Quality guarantee portfolioRelevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 124,471,086.67 |
| 1-2 years | 8,590,178.95 |
| 2-3 years | 116,508.25 |
| Over 3 years | 2,483,541.38 |
| 3-4 years | 638,877.60 |
| 4-5 years | 1,093,218.84 |
| Over 5 years | 751,444.94 |
| Aging | Closing balance |
| Total | 135,661,315.25 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Aging portfolio | 1,354,993.29 | 236,683.81 | 1,591,677.10 | |||
| Total | 1,354,993.29 | 236,683.81 | 1,591,677.10 | |||
Of which the significant amount of the reversed or collected part during the reporting period :None
（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 | Proportion(%) | Bad debt provision |
| Guangdong Union Electronic Services Co., Ltd. | 51,964,979.29 | 38.30% | |
| Guangzhou Lingte Electronic Co.,Ltd. | 19,955,000.00 | 14.71% | |
| Guangdong Humen Bridge Co., Ltd. | 16,318,549.64 | 12.03% | |
| Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 10,324,414.00 | 7.61% | |
| Shandong Boan Intelligent Technology Co., Ltd | 7,409,966.25 | 5.46% | 740,996.63 |
| Total | 105,972,909.18 | 78.11% |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNone
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivableNone
3. Prepayments
（1）Age analysis
In RMB
| Age | Balance in year-end | Balance Year-beginning | ||
| Amount | Proportion（%） | Amount | Proportion（%） | |
| Within 1 year | 2,902,724.33 | 94.48% | 10,724,508.41 | 98.44% |
| Over 3 years | 169,738.00 | 5.52% | 169,738.00 | 1.56% |
| Total | 3,072,462.33 | -- | 10,894,246.41 | -- |
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 the Company | Amount | Aging | Reasons for non-settlement | Proportion % |
| China Pacific Property Insurance Co. Ltd. Guangdong Branch | Non- Related party | 838,016.00 | Within 1 year | Prepaid insurance | 27.28 |
| Xingning Hongda Subcontracting Co., Ltd. | Non- Related party | 648,970.00 | Within 1 year | Outstanding period | 21.12 |
| Guangdong Feida Traffic Engineering Co., Ltd. | Non- Related party | 595,546.00 | Within 1 year | Prepaid Engineering funds | 19.38 |
| China Ping An Property Insurance Co. Ltd. Guangdong Branch | Non- Related party | 300,247.50 | 1 Within 1 year | Prepaid insurance | 9.77 |
| Guangzhou ITS Communications Equipment Co., Ltd. | Non- Related party | 226,200.00 | Within 1 year | Unfinished works, outstanding | 7.36 |
| Total | / | 2,608,979.50 | / | / | 84.91 |
4.Other accounts receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Dividend receivable | 10,955,472.90 | 7,205,472.90 |
| Other receivable | 12,027,702.56 | 11,966,774.57 |
| Total | 22,983,175.46 | 19,172,247.47 |
（1）Dividend receivable
1)Dividend receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Guangdong Radio and Television Networks investment | 1,205,472.90 | 1,205,472.90 |
| Items | Balance in year-end | Balance Year-beginning |
| No.1 Limited partnership enterprise | ||
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 6,000,000.00 | |
| Zhaoqing Yuezhao Higyway Co., Ltd. | 9,750,000.00 | |
| Total | 10,955,472.90 | 7,205,472.90 |
2）Significant dividend receivable aged over 1 year
None3）Bad-debt provision
□ Applicable √ Not applicable
（2） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Balance of settlement funds for securities transactions | 47,528,056.18 | 47,528,056.18 |
| Cash deposit | 2,401,147.29 | 3,435,633.29 |
| Gelin Enze Account | 4,007,679.91 | 4,007,679.91 |
| Petty cash | 4,206,145.37 | 3,580,634.57 |
| Tran Other safer of long-term assets receivable | 935,820.00 | 935,820.00 |
| Other | 4,513,802.08 | 4,043,898.89 |
| Total | 63,592,650.83 | 63,531,722.84 |
2）The withdrawal amount of the bad debt provision：
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2020 | 29,212.18 | 51,535,736.09 | 51,564,948.27 | |
| Balance as at January 1, 2020 in current | —— | —— | —— | —— |
| Balance as at January 30, 2020 | 29,212.18 | 51,535,736.09 | 51,564,948.27 |
Of which the significant amount of the reversed or collected part during the reporting period :NoneNote 1：The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd, GuangdongExpressway technology investment Co., Ltd once paid 18,000,000.00 yuan into Kunlun Securities Co., Ltd.Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that KunlunSecurities Co., Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007, The Company andGuangdong Expressway Technology Investment Co., Ltd had switched the money that paid into Kunlun SecuritiesCo., Ltd to other account receivable, and follow the careful principle to doubtful debts provision. The 710,349.92yuan Credit was Recovered in 2008, The 977,527.77 yuan credit was recovered in 2011, The 652,012.00 yuanCredit was recovered in 2014, The 1,815,828.92 yuan Credit was recovered in 2018, and the provision for had debNote 2：Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze OrganicFertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it was entrust loan, three million was temporaryborrowing 12,400.00 yuan is the commission loan interest, the rest of it was advance money for another, BeijingGelin Enze Organic Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly,the controlling subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full provisionfor Bad debt 12,220,079.91 yuan provision. The company in 2014 recovered arrears of 8,000,000.00yuan, rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tThe settlement agreement of 212,400.00 yuan.Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 6,692,782.19 |
| 1-2 years | 1,401,091.99 |
| 2-3 years | 446,715.70 |
| Over 3 years | 55,052,060.95 |
| 3-4 years | 1,492,984.00 |
| 4-5 years | 503,491.88 |
| Over 5 years | 53,055,585.07 |
| Total | 63,592,650.83 |
3） Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Amount of change in the current period | Closing balance | ||||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of single item | 51,535,736.09 | 51,535,736.09 | ||||
| Accrual of portfolio-Aging portfolio | 29,212.18 | 29,212.18 | ||||
| Accrual of portfolio-Other portfolio | ||||||
| Total | 51,564,948.27 | 51,564,948.27 |
Where the current bad debts back or recover significant amounts:None
4)The actual write-off other accounts receivable:None
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
| Name | Nature | Closing balance | Aging | Proportion of the total year end balance of the accounts receivable(%) | Closing balance of bad debt provision |
| Kunlun Securities Co.,Ltd | Securities trading settlement funds | 47,528,056.18 | Over 5 years | 74.74% | 47,528,056.18 |
| Beijing Gelin Enze | Current account | 4,007,679.91 | Over 5 years | 6.30% | 4,007,679.91 |
| Guangdong Litong Real Estates Investment Co., Ltd. | Deposit | 1,505,864.00 | 3-4 years | 2.37% | |
| Guangdong Litong Real Estates Investment Co., Ltd. | Deposit | 9,213.22 | 1-2 years | 0.01% | |
| Foshan Hezhan Yinghui Property Management Co., Ltd. | Disposal of fixed assets | 935,820.00 | Within 1 year | 1.47% | |
| Guangdong Guanghui Expressway Co., Ltd. | Deposit | 560,000.00 | Over 5 years | 0.88% | |
| Total | -- | 54,546,633.31 | -- | 85.77% | 51,535,736.09 |
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accountsreceivableNone
5. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industryNo
（1）Category of Inventory
In RMB
| Items | Closing book balance | Opening book balance | ||||
| Book balance | Provision for inventory impairment | Book value | Book balance | Provision for inventory impairment | Book value | |
| Raw materials | 111,683.22 | 111,683.22 | 111,683.22 | 111,683.22 | ||
| Total | 111,683.22 | 111,683.22 | 111,683.22 | 111,683.22 | ||
(2) Inventory depreciation reserve
None
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalizedNone
（4）Description of amortization amount of contract performance cost in the current periodNone
6.Contract assets
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
| Quality guarantee | 5,246,547.77 | 5,246,547.77 | 5,095,277.77 | 5,095,277.77 | ||
| Total | 5,246,547.77 | 5,246,547.77 | 5,095,277.77 | 5,095,277.77 | ||
Amount and reason of material change of book value of contract assets in the current period::NoneRelevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of contract assets is accrued according to the general model ofexpected credit loss:
Provision for impairment of contract assets in the current period
□ Applicable √Not applicable
None
7.Non-current asset due within 1 year
In RMB
| Items | Year-end balance | Year-beginning balance |
| Pre-payment of business tax before replacing business tax with VAT | 51,745.32 | 51,745.32 |
| Total | 51,745.32 | 51,745.32 |
Important creditor's rights Investment/other creditor's rights investment:
8.Other current assets
I n RMB
| Items | Year-end balance | Year-beginning balance |
| Income tax to be deducted | 204,007.47 | |
| Income tax to be certified | 106,665.85 | |
| Total | 310,673.32 |
9. Long-term equity investment
In RMB
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||||
| I. Joint venture | |||||||||||
| Guangdong Guanghui Expressway Co., Ltd. | 1,048,473,573.52 | 43,495,261.34 | 3,954,180.00 | 24,715,954.57 | 1,071,207,060.29 | ||||||
| Subtotal | 1,048,473,573.52 | 43,495,261.34 | 3,954,180.00 | 24,715,954.57 | 1,071,207,060.29 | ||||||
| 2. Affiliated Company | |||||||||||
| Guangdong Jiangzhong Expressway Co.,. Ltd. | 179,491,516.98 | -2,474,550.29 | 177,016,966.69 | ||||||||
| Ganzhou Gankang Expressway Co., Ltd. | 213,672,650.90 | -18,334,081.49 | 195,338,569.41 | ||||||||
| Ganzhou Kangda Expressway Co., | 234,733,526.86 | 5,693,920.94 | 240,427,447.80 | ||||||||
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||||
| Ltd. | |||||||||||
| Shenzhen Huiyan Expressway Co., Ltd. | 262,682,427.44 | 916,998.38 | 263,599,425.82 | ||||||||
| Guoyuan Securities Co., Ltd. | 793,926,807.52 | 14,629,008.65 | 2,533,278.11 | 11,940,297.90 | 799,148,796.38 | ||||||
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 214,637,335.45 | 4,318,117.99 | 218,955,453.44 | ||||||||
| Hunan Lianzhi Technology Co., Ltd. | 80,000,000.00 | 80,000,000.00 | |||||||||
| Zhaoqing Yuezhao Highway Co., Ltd. | 308,122,059.69 | 7,608,675.97 | 49,750,000.00 | 265,980,735.66 | |||||||
| Subtotal | 2,207,266,324.84 | 80,000,000.00 | 12,358,090.15 | 2,533,278.11 | 61,690,297.90 | 2,240,467,395.20 | |||||
| Total | 3,255,739,898.36 | 80,000,000.00 | 55,853,351.49 | 2,533,278.11 | 3,954,180.00 | 86,406,252.47 | 3,311,674,455.49 | ||||
Other note
10.Other Equity instrument investment
In RMB
| Items | Closing balance | Opening balance |
| Guangle Expressway Co., Ltd. | 748,348,301.73 | 748,348,301.73 |
| Guangdong Radio and Television Networks investment No.1 Limited partnership enterprise | 50,000,000.00 | 50,000,000.00 |
| China Everbright Bank Co., Ltd. | 842,212,699.52 | 1,037,474,303.04 |
| Huaxia Securities Co., Ltd.（Notes1） | ||
| Huazheng Asset Management Co., Ltd.（Notes2） | ||
| Kunlun Securities Co., Ltd.（Notes3） | ||
| Total | 1,640,561,001.25 | 1,835,822,604.77 |
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
| Items | Dividend income recognized | Cumulative gain | Cumulative loss | Amount of other consolidated income transferred to retained earnings | Reasons for designation as measured at fair value and changes included in other comprehensive income | Reasons for other consolidated income transferred to retained earnings |
| Guangle Expressway Co., Ltd. | Non-transactional purpose for shareholding | |||||
| Guangdong Radio and Television Networks investment No.1 Limited partnership enterprise | 440,655.02 | 7,802,784.15 | Non-transactional purpose for shareholding | |||
| China Everbright Bank Co., Ltd. | 50,344,558.02 | 324,651,822.72 | Non-transactional purpose for shareholding | |||
| Huaxia Securities Co., Ltd. | 5,400,000.00 | Non-transactional purpose for shareholding | ||||
| Huazheng Asset Management Co., Ltd. | 1,620,000.00 | Non-transactional purpose for shareholding | ||||
| Kunlun Securities Co., Ltd. | 30,000,000.00 | Non-transactional |
Other note：
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 June30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was 279.132 million yuan and the appraisedvalue was - 2299.5486 million yuan ,On October 14, 2005, Jianyin CITIC Asset Management Co., Ltd. issued the Letter ofSoliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset Management Co., Ltd. was willing to pay theprice of not more than 42 million yuanto acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited theCompany's opinions. The Company replied on December 5, 2005, abandoning the preemptive right under the same conditions.The Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62million yuan.Note 3.The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered liquidation procedure in October 2005. Awholly owned subsidiary of Guangdong Expressway Technology Investment Co., Ltd. Will investKunlun Securities Co., Ltd.'s full provision for impairment of 30 million yuan.
11. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
purpose forshareholding
Items
| Items | Houses and buildings | Land use right | Construction in progress | Total |
| I. Original value | ||||
| 1.Opening balance | 12,664,698.25 | 2,971,831.10 | 15,636,529.35 | |
| 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 | 12,664,698.25 | 2,971,831.10 | 15,636,529.35 |
| Items | Houses and buildings | Land use right | Construction in progress | Total |
| II.Accumulated depreciation accumulated amortization | ||||
| 1.Opening balance | 10,547,091.78 | 1,757,937.20 | 12,305,028.98 | |
| 2.Increased amount of the period | 73,774.56 | 36,784.68 | 110,559.24 | |
| (1)Withdrawal or amortization | 73,774.56 | 36,784.68 | 110,559.24 | |
| 3.Decreased amount of the period | ||||
| （1）Disposal | ||||
| （2）Other Out | ||||
| 4.Closing balance | 10,620,866.34 | 1,794,721.88 | 12,415,588.22 | |
| III. Impairment provision | ||||
| 1.Opening balance | ||||
| 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 | 2,043,831.91 | 1,177,109.22 | 3,220,941.13 | |
| 2.Opening book | 2,117,606.47 | 1,213,893.90 | 3,331,500.37 |
(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 |
| Houses and Building | 1,366,521.30 | Transportation and other ancillary facilities, Not accreditation |
Other note
12. Fixed assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Fixed assets | 8,709,189,223.95 | 8,925,700,473.65 |
| Total | 8,709,189,223.95 | 8,925,700,473.65 |
(1) List of fixed assets
In RMB
| Items | Guangfo Expressway | Fokai Expressway | Jingzhu Expressway Guangzhu section | House and buildings | Machinery equipment | Transportation equipment | Electricity equipment and other | Total |
| I. Original price | ||||||||
| 1.Opening balance | 1,460,270,190.66 | 10,935,058,609.66 | 4,816,156,616.45 | 362,192,894.64 | 260,560,603.98 | 48,644,014.84 | 658,113,290.64 | 18,540,996,220.87 |
| 2.Increased amount of the period | 774,778.00 | 165,231,518.56 | 166,006,296.56 | |||||
| （1）Purchase | 584,179.63 | 584,179.63 | ||||||
| （2）Transfer of project under construction | 774,778.00 | 164,647,338.93 | 165,422,116.93 | |||||
| (3)Increased of Enterprise consolidation | ||||||||
| 3.Decreased amount of the period | 16,205.00 | 864,000.00 | 3,321,533.40 | 4,201,738.40 | ||||
| （1）Disposal or scrap | 16,205.00 | 864,000.00 | 3,321,533.40 | 4,201,738.40 | ||||
| （2）Government subsidy offset | ||||||||
| 4.Closing balance | 1,460,270,190.66 | 10,935,058,609.66 | 4,816,156,616.45 | 362,967,672.64 | 260,544,398.98 | 47,780,014.84 | 820,023,275.80 | 18,702,800,779.03 |
| II. Accumulated depreciation | ||||||||
| 1.Opening balance | 1,460,270,190.66 | 4,494,205,215.58 | 2,841,639,585.51 | 252,883,785.76 | 84,814,297.41 | 39,174,447.40 | 435,070,029.06 | 9,608,057,551.38 |
| Items | Guangfo Expressway | Fokai Expressway | Jingzhu Expressway Guangzhu section | House and buildings | Machinery equipment | Transportation equipment | Electricity equipment and other | Total |
| 2.Increased amount of the period | 252,003,690.67 | 69,596,901.68 | 6,505,633.72 | 15,628,796.47 | 1,231,400.55 | 37,350,892.55 | 382,317,315.64 | |
| （1）Withdrawal | 252,003,690.67 | 69,596,901.68 | 6,505,633.72 | 15,628,796.47 | 1,231,400.55 | 37,350,892.55 | 382,317,315.64 | |
| 3.Decreased amount of the period | 15,556.80 | 777,600.00 | 3,208,350.98 | 4,001,507.78 | ||||
| （1）Disposal or scrap | 15,556.80 | 777,600.00 | 3,208,350.98 | 4,001,507.78 | ||||
| 4.Closing balance | 1,460,270,190.66 | 4,746,208,906.25 | 2,911,236,487.19 | 259,389,419.48 | 100,427,537.08 | 39,628,247.95 | 469,212,570.63 | 9,986,373,359.24 |
| II. Accumulated depreciation | ||||||||
| 1.Opening balance | 7,238,195.84 | 7,238,195.84 | ||||||
| 2.Increased amount of the period | ||||||||
| （1）Withdrawal | ||||||||
| 3.Decreased amount of the period | ||||||||
| （1）Disposal or scrap | ||||||||
| 4.Closing balance | 7,238,195.84 | 7,238,195.84 |
| Items | Guangfo Expressway | Fokai Expressway | Jingzhu Expressway Guangzhu section | House and buildings | Machinery equipment | Transportation equipment | Electricity equipment and other | Total |
| IV. Book value | ||||||||
| 1.Closing book value | 6,188,849,703.41 | 1,904,920,129.26 | 103,578,253.16 | 160,116,861.90 | 8,151,766.89 | 343,572,509.33 | 8,709,189,223.95 | |
| 2.Opening book | 6,440,853,394.08 | 1,974,517,030.94 | 109,309,108.88 | 175,746,306.57 | 9,469,567.44 | 215,805,065.74 | 8,925,700,473.65 |
⑵Temporarily idle fixed assets
None
（3）Details of fixed assets failed to accomplish certification of property
In RMB
| Items | Book value | Reason |
| Transportation and other ancillary facilities | 86,957,266.64 | Not accreditation |
Other note
13. Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance |
| Project under construction | 169,594,866.22 | 229,098,299.48 |
| Total | 169,594,866.22 | 229,098,299.48 |
（1）Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Cancellation of Expressway Provincial Toll Station Project | 66,534,825.51 | 66,534,825.51 | ||||
| Reconstruction and Expansion of Sanbao to Shuikou | 20,812,651.91 | 20,812,651.91 | 15,943,015.38 | 15,943,015.38 | ||
| Bridge deck pavement project of hailong Bridge | 1,382,928.49 | 1,382,928.49 | 1,382,928.49 | 1,382,928.49 | ||
| Urban toll station project | 9,013,081.45 | 9,013,081.45 | 9,013,081.45 | 9,013,081.45 | ||
| Pavement Treatment Project | 47,513,858.97 | 47,513,858.97 | 46,573,355.85 | 46,573,355.85 | ||
| Bridge Deck Treatment Project of Dayong Viaduct | 69,200,820.99 | 69,200,820.99 | 67,204,790.39 | 67,204,790.39 | ||
| Improvement Project of Drainage Pipes Across River Reach of Bridge | 5,933,146.00 | 5,933,146.00 | 5,933,146.00 | 5,933,146.00 | ||
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Bridge Drainage Improvement Project Across Centralized Drinking Water Sources | 7,000,000.00 | 7,000,000.00 | 7,000,000.00 | 7,000,000.00 | ||
| Monitoring Hall Migration Project | 7,167,718.98 | 7,167,718.98 | 7,167,718.98 | 7,167,718.98 | ||
| Odd project | 1,570,659.43 | 1,570,659.43 | 2,345,437.43 | 2,345,437.43 | ||
| Total | 169,594,866.22 | 169,594,866.22 | 229,098,299.48 | 229,098,299.48 | ||
(2) Changes of significant construction in progress
In RMB
| Name of project | Budget | Opening balance | Increase | Transferred to fixed assets | Other decrease | End balance | Proportion % | Project process | Capitalization of interest | Including: capitalization of interest this period | Capitalization of interest rate (%) | Source of funding |
| Cancellation of Expressway Provincial Toll Station Project | 178,291,911.00 | 66,534,825.51 | 98,112,513.42 | 164,647,338.93 | 93.59% | 100.00% | Others | |||||
| Reconstruction and Expansion of Sanbao to Shuikou | 3,426,210,000.00 | 15,943,015.38 | 4,869,636.53 | 20,812,651.91 | 75.51% | 75.51% | 72,779,504.82 | Others | ||||
| Pavement Treatment Project | 186,809,600.00 | 46,573,355.85 | 940,503.12 | 47,513,858.97 | 25.43% | 25.43% | 1,118,693.61 | 940,503.12 | 4.31% | Others | ||
| Bridge Deck Treatment Project of Dayong Viaduct | 122,940,000.00 | 67,204,790.39 | 1,996,030.60 | 69,200,820.99 | 56.29% | 56.29% | 2,683,619.99 | 1,996,030.60 | 4.31% | Others | ||
| Total | 3,914,251,511.00 | 196,255,987.13 | 105,918,683.67 | 164,647,338.93 | 137,527,331.87 | -- | -- | 76,581,818.42 | 2,936,533.72 | -- |
(3)Provision for impairment of construction projects in the current period
None
14. Intangible assets
(1) List of intangible assets
In RMB
| Items | Land use right | Patent right | Non-patent right | Software | Total |
| I. Original price | |||||
| 1.Opening balance | 1,311,658.00 | 31,328,839.81 | 32,640,497.81 | ||
| 2.Increased amount of the period | 62,517.57 | 62,517.57 | |||
| (1) Purchase | 62,517.57 | 62,517.57 | |||
| (2)Internal Development | |||||
| (3)Increased of Enterprise Combination | |||||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4.Closing balance | 1,311,658.00 | 31,391,357.38 | 32,703,015.38 | ||
| II.Accumulated amortization | |||||
| 1.Opening balance | 1,311,658.00 | 24,934,944.64 | 26,246,602.64 | ||
| 2.Increased amount of the period | 1,062,165.61 | 1,062,165.61 | |||
| (1) Withdrawal | 1,062,165.61 | 1,062,165.61 | |||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| Items | Land use right | Patent right | Non-patent right | Software | Total |
| 4.Closing balance | 1,311,658.00 | 25,997,110.25 | 27,308,768.25 | ||
| 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 | 5,394,247.13 | 5,394,247.13 | |||
| 2.Opening book value | 6,393,895.17 | 6,393,895.17 |
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion ofthe balance of intangible assets⑵Details of Land use right failed to accomplish certification of propertyNone
15. Long-term amortize expenses
In RMB
| Items | Balance in year-begin | Increase in this period | Amortized expenses | Other loss | Balance in year-end |
| Rental fee for plant | 1,114,764.44 | 53,508.72 | 1,061,255.72 | ||
| Total | 1,114,764.44 | 53,508.72 | 1,061,255.72 |
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets impairment provisions | 7,238,195.84 | 1,809,548.96 | 7,238,195.84 | 1,809,548.96 |
| Deductible loss | 1,120,134,827.88 | 280,033,706.98 | 1,054,468,552.04 | 263,617,138.01 |
| Amortization of intangible assets | 16,370,675.77 | 4,092,668.94 | 100,250,984.24 | 25,062,746.06 |
| Asset valuation appreciation | 346,250,638.18 | 86,562,659.55 | 380,018,692.41 | 95,004,673.10 |
| Total | 1,489,994,337.67 | 372,498,584.43 | 1,541,976,424.53 | 385,494,106.13 |
(2) Deferred income tax liabilities had not been off-set
In RMB
| Items | Balance in year-end | Balance Year-beginning | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Changes in the fair value of other equity instruments | 324,651,822.72 | 81,162,955.68 | 519,913,426.24 | 129,978,356.56 |
| Deductible temporary differences in the formation of asset impairment | 444,929,907.64 | 111,232,476.91 | 433,902,478.92 | 108,475,619.73 |
| Total | 769,581,730.36 | 192,395,432.59 | 953,815,905.16 | 238,453,976.29 |
（3）Details of unrecognized deferred tax assets
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Deductible loss | 9,751,378.66 | 8,013,102.87 |
| Assets impairment provisions | 90,176,625.37 | 89,939,941.56 |
| Cost of outstanding invoices | 1,941,115.68 | |
| Total | 99,928,004.03 | 99,894,160.11 |
（4）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 |
| 2020 |
| 2021 | |||
| 2022 | 1,133,109.04 | 1,133,109.04 | |
| 2023 | 3,210,991.23 | 3,210,991.23 | |
| 2024 | 3,669,002.60 | 3,669,002.60 | |
| 2025 | 1,738,275.79 | ||
| Total | 9,751,378.66 | 8,013,102.87 | -- |
Other note：
17. Other Non-current assets
In RMB
| Items | Balance in year-end | Balance Year-beginning | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Prepaid fixed assets engineering fees | 34,482,614.47 | 34,482,614.47 | 50,442,297.97 | 50,442,297.97 | ||
| Prepaid business tax | 492,900.42 | 492,900.42 | 518,773.08 | 518,773.08 | ||
| Less：Part due within 1 year | -51,745.32 | -51,745.32 | -51,745.32 | -51,745.32 | ||
| Total | 34,923,769.57 | 34,923,769.57 | 50,909,325.73 | 50,909,325.73 | ||
Other note：
18.Account payable
（1） List of account payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Within 1 year（Including 1 year） | 162,774,472.04 | 177,823,526.35 |
| 1-2 years（including2 years） | 34,995,823.93 | 11,710,703.48 |
| 2-3 years（including 3 years） | 8,648,550.00 | 2,468,424.00 |
| Over 3 years | 98,394,394.48 | 98,655,080.48 |
| Total | 304,813,240.45 | 290,657,734.31 |
（2）Significant payable aging more than 1 year
In RMB
| Items | Balance in year-end | Reason |
| Foshan Land and resources Bureau. | 30,507,598.21 | Unsettled |
| Guang Zhongjiang Expressway project Management Dept | 28,000,000.00 | Unsettled |
| Heshan Land and resources Bureau | 27,186,893.60 | Unsettled |
| Guangdong Highway Construction Co., Ltd. | 25,630,651.00 | Unsettled |
| Guangdong Provincial Freeway Co.,Ltd. | 8,746,491.18 | Unsettled |
| Total | 120,071,633.99 | -- |
19. Prepayment received
(1) List of Prepayment received
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Within 1 year（Including 1 year） | 806,015.98 | 1,865,984.63 |
| 1-2 years（Including 2 years） | ||
| 2-3 years（Including 3 years） | ||
| Over 3 years | 10,393,700.37 | 10,951,499.43 |
| Total | 11,199,716.35 | 12,817,484.06 |
(2) Significant advance from customers aging over one year
In RMB
| Items | Balance in year-end | Unpaid/Uncarry over reason |
| Guangzhou Huanlong Expressway Co., Ltd. | 8,383,879.82 | The Rental is not in the settlement period |
| Guanghdong Xinle Technology Development Co., Ltd. | 1,537,523.81 | The Rental is not in the settlement period |
| Total | 9,921,403.63 | -- |
20. Payable Employee wage
（1）Payable Employee wage
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| I. Short-term compensation | 14,822,524.70 | 128,500,655.48 | 124,544,037.99 | 18,779,142.19 |
| II.Post-employment benefits - defined contribution plans | 11,175,489.25 | 9,764,863.47 | 1,410,625.78 | |
| III. Dismissal benefits | 80,117.63 | 80,117.63 | ||
| Total | 14,822,524.70 | 139,756,262.36 | 134,389,019.09 | 20,189,767.97 |
（2）Short-term Remuneration
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| 1.Wages, bonuses, allowances and subsidies | 642,463.49 | 94,813,014.04 | 90,952,413.30 | 4,503,064.23 |
| 2.Employee welfare | 9,303,364.42 | 9,211,545.43 | 91,818.99 | |
| 3. Social insurance premiums | 6,471,924.55 | 6,468,331.84 | 3,592.71 | |
| Including ：Medical insurance | 3,725,818.90 | 3,722,909.27 | 2,909.63 | |
| Work injury insurance | 19,532.24 | 19,532.24 | ||
| Maternity insurance | 873,658.04 | 872,974.96 | 683.08 | |
| Other | 1,852,915.37 | 1,852,915.37 | ||
| 4.Public reserves for housing | 14,000,113.00 | 13,989,322.00 | 10,791.00 | |
| 5.Union funds and staff education fee | 12,865,407.64 | 3,381,179.63 | 3,284,605.58 | 12,961,981.69 |
| 8.Other | 1,314,653.57 | 531,059.84 | 637,819.84 | 1,207,893.57 |
| Total | 14,822,524.70 | 128,500,655.48 | 124,544,037.99 | 18,779,142.19 |
（3）Defined contribution plans listed
In RMB
| Items | Balance Year-beginning | Increase in this period | Payable in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 2,003,693.48 | 2,003,693.48 | ||
| 2.Unemployment insurance | 56,693.56 | 56,693.56 | ||
| 3.Enterprise annuity payment | 9,115,102.21 | 7,704,476.43 | 1,410,625.78 | |
| Total | 11,175,489.25 | 9,764,863.47 | 1,410,625.78 |
Other notes：
21. Tax Payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| VAT | 12,245,948.76 | 14,195,480.90 |
| Enterprise Income tax | 23,310,669.09 | 65,145,885.17 |
| Individual Income tax | 108,161.34 | 2,866,768.16 |
| City Construction tax | 480,762.03 | 957,991.34 |
| Education subjoin | 234,125.43 | 431,482.48 |
| Locality Education subjoin | 142,025.15 | 273,333.04 |
| Land use tax | 606,620.40 | |
| Property tax | 680,454.25 | 17,061.15 |
| Stamp tax | 44,687.72 | 218,722.91 |
| Construction costs for cultural undertaking | 31,200.00 | |
| Other | 119,661.79 | |
| Total | 37,853,454.17 | 84,257,586.94 |
Other note：
22.Other accounts payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Dividend payable | 954,302,889.90 | 20,020,119.31 |
| Other account payable | 471,530,924.09 | 606,160,467.61 |
| Total | 1,425,833,813.99 | 626,180,586.92 |
（1）Dividends payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Common stock dividends | 954,302,889.90 | 20,020,119.31 |
| Total | 954,302,889.90 | 20,020,119.31 |
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 19,998,911.82yuan 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, didnot share reform of shareholders to receive dividends or provide application to receive dividends the bank information is incorrect, resulting in failure to pay a dividend or refund.
（2）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
| Items | Year-end balance | Year-Beginning balance |
| Quality guarantee fund | 42,938,220.28 | 55,789,027.50 |
| Borrowing | 182,161,406.25 | 184,505,512.50 |
| Provisional estimate of project cost | 199,761,484.19 | 305,588,291.39 |
| Other | 46,669,813.37 | 60,277,636.22 |
| Total | 471,530,924.09 | 606,160,467.61 |
(2) Other significant accounts payable with aging over one year
In RMB
| Items | Closing balance | Unpaid/un-carry over reason |
| Yayao to Xiebian extension | 12,499,448.48 | Outstanding |
| CCCC First Harbor Engineering Co., Ltd. | 8,339,501.22 | Project Quality guarantees,constract liquidated damages |
| Poly Changda Highway Engineering Co., Ltd. | 4,103,645.00 | Contract liquidated damages, project withholding |
| Guangdong Longda Superhighway Maintenance Co., Ltd. | 3,184,244.10 | Project Quality guarantees, contract liquidated damages, Wage margin for migrant workers |
| China Railway 18 Bureau Group Co., Ltd. | 2,501,500.00 | Contract liquidated damages, Wage margin for migrant workers |
| Total | 30,628,338.80 | -- |
23.Contract liabilities
（1）Contract liabilities
In RMB
| Items | Balance year-end | Year-beginning balance |
| Advances on sale | 108,100.88 | 2,787,610.63 |
| Less：Other non-current liabilities | ||
| Total | 108,100.88 | 2,787,610.63 |
24. Non-current liabilities due within 1 year
In RMB
| Long-term loans due within 1 year | Balance year-end | Year-beginning balance |
| Long-term payable due within 1 year | 62,060,000.00 | 765,445,000.00 |
| Interest payable due within 1 year | 732,075.47 | 256,603.77 |
| Total | 96,380,696.28 | 30,160,354.30 |
| Long-term loans due within 1 year | 159,172,771.75 | 795,861,958.07 |
Other note：
25.Other current liabilities
In RMB
| Items | Balance year-end | Year-beginning balance |
| Tax to be rewritten | 1,603,872.74 | 189,628.17 |
| Total | 1,603,872.74 | 189,628.17 |
26. Long-term loan
(1) Category of long-term loan
In RMB
| Items | Balance year-end | Year-beginning balance |
| Pledge loan | 507,365,000.00 | 447,365,000.00 |
| Guaranteed loan | 375,000,000.00 | |
| Credit loan | 4,259,587,500.00 | 4,583,505,000.00 |
| Long-term loans due within one year | -62,060,000.00 | -765,445,000.00 |
| Total | 4,704,892,500.00 | 4,640,425,000.00 |
Other notes including interest rate range：
The Pledge loan rate is 4.15%-4.41%; the guaranteed loan interest rate is 5.6%; the credit interest rate is
3.95%-4.41%.
27.Bond payable
（1）Bond payable
In RMB
| Items | Balance year-end | Year-beginning balance |
| Medium- term note | 1,426,014,144.87 | 678,124,972.89 |
| Total | 1,426,014,144.87 | 678,124,972.89 |
（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
| Name of the bond | Book value | Issue date | Period | Issue amount | Opening balance | The current issue | Withdraw interest at par | Overflow discount amount | Pay in current period | Closing balance |
| 19 Guangdong ExpresswayMTN001 | 680,000,000.00 | 2019.2.27 | 2019.3.1-2024.3.1 | 680,000,000.00 | 678,124,972.89 | -223,241.92 | 678,348,214.81 | |||
| 20 Guangdong ExpresswayMTN001 | 750,000,000.00 | 2020.3.13 | 2020.3.17-2025.3.17 | 750,000,000.00 | 750,000,000.00 | 2,334,069.94 | 747,665,930.06 | |||
| Total | -- | -- | -- | 1,430,000,000.00 | 678,124,972.89 | 750,000,000.00 | 2,110,828.02 | 1,426,014,144.87 |
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
28. Long-term payable
In RMB
| Items | Balance year-end | Year-beginning balance |
| Long-term payable | 40,406,172.36 | 39,369,379.91 |
| Total | 40,406,172.36 | 39,369,379.91 |
(1) Long-term payable listed by nature of the account
In RMB
| Items | Balance year-end | Year-beginning balance |
| Non-operating asset payable | 2,022,210.11 | 2,022,210.11 |
| Entrust loans | 36,000,000.00 | 36,000,000.00 |
| Medium term bill underwriting fee | 3,116,037.72 | 1,603,773.57 |
| Less：Part due within 1 year | 732,075.47 | 256,603.77 |
| Total | 40,406,172.36 | 39,369,379.91 |
Other note：
29. Deferred income
In RMB
| Items | Opening balance | Increase | Decrease | Closing balance | Cause |
| Government subsidy | 37,916,900.00 | 5,637,075.19 | 32,279,824.81 | ||
| Total | 37,916,900.00 | 5,637,075.19 | 32,279,824.81 | -- |
Details of government subsidies：
In RMB
| Items | Beginning of term | New subsidy in current period | Amount transferred to non-operational income | Other income recorded in the current period | Amount of cost deducted in the current period | Other changes | End of term | Asset-related or income-related |
| Cancellation of Expressway Provincial | 35,416,900.00 | 3,137,075.19 | 32,279,824.81 | Asset-related |
| Items | Beginning of term | New subsidy in current period | Amount transferred to non-operational income | Other income recorded in the current period | Amount of cost deducted in the current period | Other changes | End of term | Asset-related or income-related |
| Toll Station Project | ||||||||
| Financial discount | 2,500,000.00 | 2,500,000.00 | Related to income |
30. Stock capital
In RMB
| Changed（+，-） | |||||||
| Balance Year-beginning | Issuance of new share | Bonus shares | Capitalization of public reserve | Other | Subtotal | Balance in year-end | |
| Total of capital shares | 2,090,806,126.00 | 2,090,806,126.00 | |||||
31. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 2,508,408,342.99 | 2,508,408,342.99 | ||
| Other capital reserves | 54,162,122.32 | 3,954,180.00 | 58,116,302.32 | |
| Total | 2,562,570,465.31 | 3,954,180.00 | 2,566,524,645.31 |
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 3,954,180.00 yuan due to the change of the owner's equity of thejoint-stock company
32. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | |||||
| Amount incurred before income tax | Less：Amount transferred into profit and loss in the current period that recognied into other comprehensive income in prior period | Less：Prior period included in other composite income transfer to retained income in the current period | Less：Income tax expenses | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| 1.Other comprehensive income will be reclassified into income or loss in the future | 389,935,069.68 | -195,261,603.52 | -48,815,400.88 | -146,446,202.64 | 243,488,867.04 | |||
| Including: Share of other comprehensive income of the investee that cannot be transferred to profit or loss accounted for using the equity method | 389,935,069.68 | -195,261,603.52 | -48,815,400.88 | -146,446,202.64 | 243,488,867.04 | |||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent periods | -7,741,724.78 | 2,533,278.11 | 2,533,278.11 | -5,208,446.67 | ||||
| Including：Share of other comprehensive income of the investee that cannot be transferred to profit or loss accounted for using the equity method | -7,741,724.78 | 2,533,278.11 | 2,533,278.11 | -5,208,446.67 | ||||
| Total of other comprehensive income | 382,193,344.90 | -192,728,325.41 | -48,815,400.88 | -143,912,924.53 | 238,280,420.37 |
33. Surplus reserve
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 910,425,068.90 | 910,425,068.90 | ||
| Total | 910,425,068.90 | 910,425,068.90 |
Note
34. Retained profits
In RMB
| Items | Amount of this period | Amount of last period |
| Before adjustments: Retained profits in last period end | 3,877,431,844.64 | 3,938,609,136.59 |
| Adjust the total undistributed profits at the beginning of the period | -9,749,843.30 | |
| After adjustments: Retained profits at the period beginning | 3,877,431,844.64 | 3,928,859,293.29 |
| Add：Net profit belonging to the owner of the parent company | -5,830,257.18 | 1,258,628,101.71 |
| Less: Statutory surplus reserve | 135,022,507.55 | |
| Common stock dividend payable | 882,320,185.17 | 1,175,033,042.81 |
| Retained profit at the end of this term | 2,989,281,402.29 | 3,877,431,844.64 |
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 affectedbeginning 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 profitsare RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
35.Operation income and operation cost
In RMB
| Items | Amount of this period | Amount of last period | ||
| Income | Cost | Income | Cost | |
| Main operation | 642,155,230.52 | 514,556,931.18 | 1,465,140,817.31 | 536,808,262.05 |
| Other operation | 18,743,731.27 | 9,618,193.88 | 18,532,427.90 | 12,815,548.44 |
| Total | 660,898,961.79 | 524,175,125.06 | 1,483,673,245.21 | 549,623,810.49 |
36. Business tax and subjoin
In RMB
| Items | Amount of this period | Amount of last period |
| Urban construction tax | 1,233,837.65 | 2,826,207.50 |
| Education surcharge | 582,429.79 | 1,334,286.59 |
| Property tax | 712,301.65 | 653,603.50 |
| Land use tax | 606,620.40 | 607,742.40 |
| Vehicle use tax | 27,905.63 | 27,413.99 |
| Stamp tax | 96,237.31 | 151,645.56 |
| Business tax | 25,872.66 | 25,872.66 |
| Locality Education surcharge | 388,598.88 | 889,523.37 |
| Other | 40,728.40 | |
| Total | 3,673,803.97 | 6,557,023.97 |
Other note
37. Administrative expenses
In RMB
| Items | Amount of this period | Amount of last period |
| Wage | 47,810,529.06 | 51,876,703.42 |
| Depreciation and Amortization | 4,677,507.48 | 5,426,970.90 |
| Low consumables amortization | 234,921.36 | 270,716.05 |
| Travel expenses | 83,119.53 | 425,060.93 |
| Office expenses | 2,457,800.02 | 4,046,634.57 |
| Leased expenses | 5,183,189.17 | 5,621,607.68 |
| The fee for hiring agency | 3,113,424.31 | 4,459,697.91 |
| Consultation expenses | 63,000.00 | 1,186,300.00 |
| Listing fee | 11,320.75 | 11,320.75 |
| Information cost and maintenance fee | 247,597.56 | 180,975.14 |
| Other | 4,108,510.24 | 3,469,223.12 |
| Total | 67,990,919.48 | 76,975,210.47 |
Other note：
38.Financial expenses
In RMB
| Items | Amount of this period | Amount of last period |
| Interest expenses | 131,774,768.90 | 115,040,857.71 |
| Deposit interest income（-） | -14,760,756.18 | -15,761,707.69 |
| Exchange Income and loss（Gain-） | 1,590,432.88 | |
| Bank commission charge | 65,706.01 | 904,728.33 |
| Other | 1,534,061.56 | 1,755,451.17 |
| Total | 118,613,780.29 | 103,529,762.40 |
39.Other gains
In RMB
| Items | Amount of this period | Amount of last period |
| Government subsidy- Cancellation of Expressway Provincial Toll Station Project | 3,137,075.19 | |
| Government subsidy- Stable job subsidies | 398,471.22 | |
| Return of personal tax handing fee | 173,223.75 | 40,043.40 |
| Maternity allowance | 149,747.43 | 377,218.29 |
| Input tax plus deduction | 12,771.61 | 2,965.93 |
| Total | 3,871,289.20 | 420,227.62 |
40. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment income by equity | 55,853,351.49 | 237,712,998.09 |
| method | ||
| Dividends earned during the holding period on investments in other equity instrument | 50,785,213.04 | 38,528,868.23 |
| Total | 106,638,564.53 | 276,241,866.32 |
41. Credit impairment losses
In RMB
| Items | Amount of this period | Amount of last period |
| Impairment losses on accounts receivable | -236,683.81 | |
| Total | -236,683.81 |
Other note：
42.Assets disposal income
In RMB
| Source | Amount of this period | Amount of last period |
| Non-current assets disposal gains | 13,129,094.29 | |
| Including：Income from disposal of Fixed assets | ||
| Income from disposal of Intangible assets | 13,129,094.29 | |
| Other | 4.37 | |
| Total | 4.37 | 13,129,094.29 |
43.Non-Operation income
In RMB
| Items | Amount of this period | Amount of last period | Recorded in the amount of the non-recurring gains and losses |
| Charges | 1,493.01 | 14,676.65 | 1,493.01 |
| Relocation compensation income | 1,549,865.12 | 1,549,865.12 | |
| Insurance indemnity income | 1,824,272.37 | 133,339.72 | 1,824,272.37 |
| Road property claim income | 416,820.42 | 543,754.07 | 416,820.42 |
| Other income | 285,226.03 | 43,589.32 | 285,226.03 |
| Total | 4,077,676.95 | 735,359.76 | 4,077,676.95 |
- Government subsidy reckoned into current gains/losses: None
44. Non-Operation expense
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & losses |
| Loss & abandonment of non-current assets | 184,878.43 | 2,591,350.52 | 184,878.43 |
| Fine | 25,472.76 | 207.98 | 25,472.76 |
| Road property claim expenses | 1,411,624.28 | 1,633,084.45 | 1,411,624.28 |
| Other income( | 570,033.01 | 6,765.00 | 570,033.01 |
| Total | 2,192,008.48 | 4,231,407.95 | 2,192,008.48 |
45. Income tax expense
(1) Lists of income tax expense
In RMB
| Items | Amount of current period | Amount of previous period |
| Current income tax expense | 27,487,772.16 | 154,541,370.84 |
| Deferred income tax expense | 15,752,378.88 | 35,155,403.21 |
| Total | 43,240,151.04 | 189,696,774.05 |
(2) Adjustment process of accounting profit and income tax expense
In RMB
| Items | Amount of current period |
| Total | 58,604,175.75 |
| Current income tax expense accounted by tax and relevant regulations | 14,651,043.94 |
| Influence of income tax before adjustment | 19,910.76 |
| Influence of non taxable income | -27,333,746.18 |
| Impact of non-deductible costs, expenses and losses | 4,097,052.91 |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | -744,912.67 |
| Other | 52,550,802.28 |
| Income tax expense | 43,240,151.04 |
46.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 | 14,760,756.18 | 15,761,707.69 |
| Unit current account | 22,144,584.27 | 9,857,010.59 |
| Cancellation of Expressway Provincial Toll Station Project | 35,416,900.00 | |
| Total | 72,322,240.45 | 25,618,718.28 |
（2）Other cash paid related to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Management expense | 15,271,520.58 | 16,677,364.01 |
| Network received toll income | 6,999,980.83 | |
| Unit current account | 5,349,446.91 | 14,244,441.25 |
| Total | 20,620,967.49 | 37,921,786.09 |
(3)Cash received related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Medium-term bill issuance fee | 1,122,177.00 | 791,384.00 |
| Total | 1,122,177.00 | 791,384.00 |
47. 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 | -- | -- |
| Supplement Information | Amount of current period | Amount of previous period |
| Net profit | 15,364,024.71 | 843,585,803.87 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 382,391,090.20 | 402,575,984.69 |
| Amortization of intangible assets | 1,098,950.29 | 1,184,929.43 |
| Amortization of Long-term deferred expenses | 53,508.72 | 53,508.72 |
| Loss on disposal of fixed assets, intangible assets and other long-term deferred assets | -13,129,094.29 | |
| Fixed assets scrap loss | 184,878.43 | 2,591,350.52 |
| Financial cost | 134,274,768.90 | 116,631,290.59 |
| Loss on investment | -106,638,564.53 | -276,241,866.32 |
| Decrease of deferred income tax assets | 12,995,521.70 | 44,118,004.31 |
| Increased of deferred income tax liabilities | 2,756,857.18 | -8,962,601.10 |
| Decrease of inventories | -29,124.58 | |
| Decease of operating receivables | -37,061,244.28 | -16,566,898.76 |
| Increased of operating Payable | 12,249,629.21 | -45,000,189.85 |
| Other | 236,683.81 | |
| Net cash flows arising from operating activities | 417,906,104.34 | 1,050,811,097.23 |
| II. Significant investment and financing activities that without cash flows: | -- | -- |
| 3．Movement of cash and cash equivalents： | -- | -- |
| Ending balance of cash | 3,058,275,542.46 | 2,036,803,751.05 |
| Less: Beginning balance of cash equivalents | 2,816,699,694.50 | 2,123,303,796.32 |
| Net increase of cash and cash equivalents | 241,575,847.96 | -86,500,045.27 |
（2）Composition of cash and cash equivalents
In RMB
| Items | Balance in year-end | Balance in year-Beginning |
| Items | Balance in year-end | Balance in year-Beginning |
| Cash | 3,058,275,542.46 | 2,816,699,694.50 |
| Of which: Cash in stock | 92,943.37 | 20,587.32 |
| Bank savings could be used at any time | 3,057,665,122.31 | 2,816,163,426.65 |
| Other monetary capital could be used at any time | 517,476.78 | 515,680.53 |
| Balance of cash and cash equivalents at the period end | 3,058,275,542.46 | 2,816,699,694.50 |
Other note：
48. The assets with the ownership or use right restricted
In RMB
| Items | Book value at the end of the period | Restricted reason |
| Monetary fund | 1,221,200.00 | Land reclamation funds in the fund escrow account |
| Total | 1,221,200.00 | -- |
Other note：
As of June 30, 2020, the Company's subsidiary Jingzhu Expressway Guangzhu Section Co., Ltd borrowed507,365,000.00 yuan from Wuyang Sub-branch of Industrial and Commercial Bank of China (including26,335,000.00 yuan in non-current liabilities due within one year and 481,030,000.00 yuan in long-term loans), andprovided a pledge guarantee of 19.2% of the project's toll interest (the right to collect tolls for vehicles travelingon the Guangzhu section of Jingzhu Expressway and the revenue generated by owning such right).VIII. Changes of merge scopeNoneIX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
| Name of Subsidiary | Main Places of Operation | Registration Place | Nature of Business | Shareholding Ratio (%) | Obtaining Method | |
| direct | indirect | |||||
| Guangfo Expressway Co., Ltd. | Guangz | Guan | Expressway Management | 75.00% | Under the same control business | |
| hou | gzhou | combination | ||||
| Guangdong Expressway Technology Investment Co., Ltd. | Guangzhou | Guangzhou | Investment in technical industries and provision of relevant | 100.00% | Investment | |
| Guangzhuo Guangzhu Traffic Investment Management Co., Ltd. | Guangzhou | Guangzhou | Investment management | 100.00% | Under the same control business combination | |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | Zhongshan | Guangzhou | Expressway Management | 20.00% | 55.00% | Under the same control business combination |
| Yuegao Capital Investment(Hengqin)Co., Ltd. | Guangzhou | Zhuhai | Investment management | 100.00% | Investment |
Notes: holding proportion in subsidiary different from voting proportion:NoneBasis of holding half or less voting rights but still been controlled investee and holding more than half of thevoting rights not been controlled investee:NoneSignificant structure entities and controlling basis in the scope of combination:NoneBasis of determine whether the Company is the agent or the principal: NoneOther notes：
Guangzhou Guangzhu Traffic Investment Management Co., Ltd. holds 55% equity in Guangzhu Section Co.,Ltd. of Jingzhu Expressway.
(2) Important Non-wholly-owned Subsidiary
In RMB
| Name of Subsidiary | Shareholding Ratio of Minority Shareholders (%) | Profit or Loss Owned by the Minority Shareholders in the Current Period | Dividends Distributed to the Minority Shareholders in the Current Period | Equity Balance of the Minority Shareholders in the End of the Period |
| Guangfo Expressway Co., Ltd. | 25.00% | 11,076,201.29 | 148,856,273.05 | |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 25.00% | 10,118,080.60 | 126,983,792.91 | 172,524,264.07 |
Holding proportion of minority shareholder in subsidiary different from voting proportion
None
(3) The main financial information of significant not wholly owned subsidiary
In RMB
| Name | Year-end balance | Year-beginning balance | ||||||||||
| Current assets | Non- current assets | Total assets | Current Liabilities | Non- current liabilities | Total liabilities | Current assets | Non- current assets | Total assets | Current Liabilities | Non- current liabilities | Total liabilities | |
| Guangfo Expressway Co., Ltd. | 617,279,005.86 | 61,712,506.29 | 678,991,512.15 | 78,285,629.03 | 5,280,790.91 | 83,566,419.94 | 560,965,221.56 | 47,173,764.91 | 608,138,986.47 | 57,018,699.42 | 57,018,699.42 | |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 120,244,803.02 | 2,212,641,148.22 | 2,332,885,951.24 | 520,668,250.01 | 1,122,120,644.94 | 1,642,788,894.95 | 301,043,906.12 | 2,257,506,902.82 | 2,558,550,808.94 | 377,916,598.72 | 1,023,074,304.71 | 1,400,990,903.43 |
In RMB
| Name | Amount of current period | Amount of previous period | ||||||
| Business income | Net profit | Total Comprehensive income | Cash flows from operating activities | Business income | Net profit | Total Comprehensive income | Cash flows from operating activities | |
| Guangfo Expressway Co., Ltd. | 102,043,817.63 | 44,304,805.16 | 44,304,805.16 | 59,016,009.03 | 231,359,875.86 | 142,527,223.05 | 142,527,223.05 | 146,829,390.44 |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 232,123,838.11 | 40,472,322.41 | 40,472,322.41 | 136,327,743.66 | 613,528,787.18 | 285,871,543.23 | 285,871,543.23 | 390,248,834.50 |
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debtNone
(5) Provide financial support or other support for structure entities incorporate into the scope ofconsolidated financial statementsNoneOther note：
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 companyNone
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
| Name | Main operating place | Registration place | Business nature | Proportion | Accounting treatment of the investment of joint venture or associated enterprise | |
| Directly | Indirectly | |||||
| Guangdong Guanghui Expressway Co., Ltd. | Guangzhou, Guangdong | Guangzhou, Guangdong | Expressway Management | 30.00% | Equity method | |
| Zhaoqing Yuezhao Highway Co., Ltd. | Zhaoqing, Guangdong | Zhaoqing, Guangdong | Expressway Management | 25.00% | Equity method | |
| Shenzhen Huiyan Expressway Co., Ltd. | Shenzhen Guangdong | Shenzhen Guangdong | Expressway Management | 33.33% | Equity method | |
| Guangdong Jiangzhong Expressway Co., Ltd. | Zhongshan , Guangdong | Guangzhou,Guangdong | Expressway Management | 15.00% | Equity method | |
| Ganzhou kangda Expressway Co., Ltd. | Gangzhou, | Gangzh | Expressway | 30.00% | Equity method | |
| Name | Main operating place | Registration place | Business nature | Proportion | Accounting treatment of the investment of joint venture or associated enterprise | |
| Directly | Indirectly | |||||
| Jiangxi | ou, Jiangxi | Management | ||||
| Ganzhou Gankang Expressway Co., Ltd. | Gangzhou, Jiangxi | Gangzhou, Jiangxi | Expressway Management | 30.00% | Equity method | |
| Guangdong Yueke Technology Petty Loan Co., Ltd. | Guangzhou, Guangdong | Guangzhou, Guangdong | Hande all kinds of small loans | 20.00% | Equity method | |
| Guangyuan Securities Co., Ltd. | Hefei, Anhui | Hefei, Anhui | Security business | 2.37% | Equity method | |
| Hunan Lianzhi Technology Co., Ltd. | Changsha | Changsha | Research and experimental development | 11.45% | Equity method | |
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
NoneBasis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more votingrights but does not have a significant impact:
Guangdong, Jiangzhong Expressway Co., Ltd., Guangyuan Securities Co., Ltd..and Hunan Lianzhi Technology Co.,Ltd. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and operating decisions, and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Guangdong Guanghui Expressway Co., Ltd. | Guangdong Guanghui Expressway Co., Ltd. | |
| Current assets | 894,836,795.76 | 676,535,557.27 |
| Including：Cash and cash equivalent | 434,237,396.95 | 236,277,469.65 |
| Non-current assets | 3,407,727,377.88 | 3,551,486,914.85 |
| Total assets | 4,302,564,173.64 | 4,228,022,472.12 |
| Current liabilities | 246,407,371.86 | 212,427,396.61 |
| Non-current liabilities | 485,466,600.82 | 520,683,163.79 |
| Total liabilities | 731,873,972.68 | 733,110,560.40 |
| Attributable to shareholders of the parent company | 3,570,690,200.96 | 3,494,911,911.72 |
| Share of net assets calculated by stake | 1,071,207,060.29 | 1,048,473,573.52 |
| Book value of equity investment in joint ventures | 1,071,207,060.29 | 1,048,473,573.52 |
| Operating income | 457,060,461.67 | 917,898,192.73 |
| Financial expenses | 4,947,161.57 | 10,890,126.55 |
| Income tax expenses | 50,887,862.70 | 159,573,250.38 |
| Net profit | 144,984,204.47 | 478,273,173.41 |
| Total comprehensive income | 144,984,204.47 | 478,273,173.41 |
| Dividends received from joint ventures this year | 24,715,954.57 | 84,638,655.14 |
(3) Main financial information of significant associated enterprise
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Guoyuan Securities Co., Ltd. | Guoyuan Securities Co., Ltd. | |
| Current assets | 45,654,244,848.74 | 57,918,624,287.41 |
| Non-current assets | 42,446,606,690.61 | 26,015,472,537.63 |
| Total assets | 88,100,851,539.35 | 83,934,096,825.04 |
| Current liabilities | 47,226,615,144.21 | 46,206,352,399.19 |
| Non-current Liabilities | 15,815,525,400.14 | 12,890,023,021.47 |
| Total liabilities | 63,042,140,544.35 | 59,096,375,420.66 |
| Minority Shareholders’ Equity | 11,997,171.96 | 11,785,075.26 |
| Shareholders’ equity attributable to shareholders of the parent | 25,046,713,823.04 | 24,825,936,329.12 |
| Pro rata share of the net assets calculated | 592,422,978.36 | 587,200,989.50 |
| --Goodwill | 206,725,818.02 | 206,725,818.02 |
| The book value of equity investments in joint ventures | 799,148,796.38 | 793,926,807.52 |
| Fair value of equity investment of associated enterprises with open quotation | 668,656,682.40 | 737,910,410.22 |
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Guoyuan Securities Co., Ltd. | Guoyuan Securities Co., Ltd. | |
| Buinsess incme | 2,115,128,481.79 | 1,616,521,271.21 |
| Net profit | 617,902,373.05 | 432,745,658.33 |
| Other comprehensive income | 99,219,704.73 | 6,888,669.24 |
| Total comprehensive income | 717,122,077.78 | 439,634,327.57 |
| Dividends received from associates during the year | 11,940,297.90 |
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Joint venture： | -- | -- |
| Total amount of the pro rata calculation of the following items | -- | -- |
| Associated enterprise： | -- | -- |
| Total book value of the investment | 1,441,318,598.82 | 1,413,339,517.32 |
| Total amount of the pro rata calculation of the following ite--Net profit ms | -- | -- |
| -2,270,918.50 | 84,320,844.64 | |
| --Total comprehensive income | -2,270,918.50 | 84,320,844.64 |
Other noteAs the book value of long-term equity investment in joint ventures and joint ventures other than those listed in (2) and (3) in thecurrent period and in 2018 and 2019 are not higher than 5% of the total owner's equity of the Company attributable to the parentcompany. The company considers that except for the important joint ventures and associated enterprises listed in (2) and (3), otherjoint ventures and associated enterprises are non important joint ventures and associates Business.
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to theCompanyNone
(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
NoneX. Risks Related to Financial InstrumentsThe 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 thesefinancial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shallmanage and monitor these risks and ensure above risks to be controlled within certain scope.(I)The targets and policies of risk managementThe target of risk management is to obtain the proper balance between the risk and benefit, to reduce thenegative impact that is caused by the risk of the Company to the lowest level, and to maximize the benefits ofshareholders and other equity investors. Based on the targets of risk management, the basic strategy of theCompany’s risk management is to identify and analyze the risks which are faced by the Company, establishsuitable risk tolerance baseline and proceed the risk management, and supervise a variety of risks timely andreliably, 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 majorbusiness activities of our Company are settled in RMB. During the reporting period, due to the short credit periodof the Company's income and expenditure related to foreign currency, it was not affected by foreign exchangerisk.
（2）Interest rate risk
The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainlyrelated to floating rate bank borrowings (see this Section VII 23). The Company's policy is to maintain the floatinginterest rate of these borrowings, and at the same time to reasonably reduce the risk of interest rate fluctuation byshortening 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 whosechanges are included in other comprehensive income (financial assets available for sale on or before December 31,2018) and are measured at fair value on the balance sheet date. Therefore, the Company bears the risk of changesin the securities market.
2.Credit risk
On January 30, 2020, the largest credit risk exposure that may cause financial losses of the Company mainlycomes from the loss of financial assets of the Company caused by the failure of the other party to perform itsobligations.
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 adequatebad debt provisions are made for unrecoverable amounts. Consequently, the Company's management believes thatthe 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 workingcapital 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 VIIand "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 bythe management and monitor them to meet the Company's operational needs and reduce the impact of cash flowfluctuations. The management of the Company monitors the use of bank loans and ensures compliance with theloan agreement.XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
| Items | Closing fair value | |||
| Fir value measurement items at level 1 | Fir value measurement items at level 2 | Fir value measurement items at level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| （3）Other equity instrument investment | 842,212,699.52 | 842,212,699.52 | ||
| Total assets continuously measured at fair value | 842,212,699.52 | 842,212,699.52 | ||
| 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 235,254,944 shares of China Everbright BankAccording to the closing price of January 30, 2020 of 3.58 yuan, the final calculation of fair value was842,212,699.52 yuan.
3. Fair value of financial assets and liabilities not measured at fair value
At the end of the period, the fair value of financial assets and financial liabilities held by the Company thatare not measured at fair value is as follows:
| Items | Book value | Fair values | Remark | ||
| Balance at Beginning of the Year | Ending amount | Affiliated hierarchy | |||
| Financial assets not measured at fair value | |||||
| Other eqiuty instrument investment | 798,348,301.73 | 798,348,301.73 | 798,348,301.73 | ||
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
| Name | Registered address | Nature | Redistricted capital | The parent company of the Company's shareholding ratio | The parent company of the Company’s vote ratio |
| Guangdong communication Group Co., Ltd | Guangzhou | Equity management, traffic infrastructure construction and railway project operation | 26.8 billion yuan | 24.56% | 50.12% |
Notes ：
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: DengXiaohua. Date of establishment: June 23, 2000. As of January 30, 2020,Registered capital: 26.8 billion yuan. Itis a solely state-owned limited company. Business scope：equity management, organization of asset reorganizationand optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stocksystem transformation, project investment, operation and management, traffic infrastructure construction, highwayand railway project operation and relevant industries, technological development, application, consultation andservices, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; Thevalue-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission ofGuangdong Provincial People's Government.
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see Note IX(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-3, Interests in joint ventures or associatesInformation on other joint venture and associated enterprise of occurring related party transactions with theCompany in reporting period, or form balance due to related party transactions in previous period:
| Name | Relation with the Company |
| 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 |
| Guangdong Jiangzhong Expressway Co., Ltd. | Associated enterprises of the Company |
| Guangdong Yueke Technology Petty Loan Co., Ltd. | Associated enterprises of the Company |
| Guangdong Guanghui Expressway Co., Ltd. | Joint ventures of the Company |
4. Other Related parties
| Name | Relation with the Company |
| Poly Changda Engineering Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Hongkong- Zhuhai-Macao Connection line management center | Managed by the parent company |
| Guangdong Boda 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 Feida Traffic Engineering Co., ltd. | Fully owned subsidiary of the parent company |
| Guangdong Gaoda Property Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Expressway Media Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Guangle Expressway 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 Traffic Industry Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Guangdong Kaiyang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Litong Technology Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Real Estate Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Union Electron Service Co., ltd. | Fully owned subsidiary of the parent company |
| Guangdong Lulutong Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Maozhan Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Shanfen Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Shenshan Expressway East Section Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Name | Relation with the 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 Planning & Design Institute Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Traffic Development 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.公司 | Fully owned subsidiary of the parent company |
| Guangdong Xinyue Traffic Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Yuedong Expressway Industry Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Yueyun Traffic Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangshenzhu Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangzhongjiang Expressway Project Management Dept | 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 |
| Jiangmen Jianghe Expressway Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Xinyue Co., Ltd. | Fully owned subsidiary of the parent company |
| Yunfo Guangyun Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
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 transaction | Amount of current period | Amount of previous period | Over the trading limit or not? | Amount of last period |
| Guangdong Union electronic services co., Ltd. | Service | 3,066,900.10 | 3,767,825.78 | ||
| Guangdong Feida Traffic Engineering Co., Ltd. | Electrical and mechanical | 494,467.97 |
| Related parties | Content of related transaction | Amount of current period | Amount of previous period | Over the trading limit or not? | Amount of last period |
| maintenance | |||||
| Guangdong Humen Bridge Co., Ltd. | Elecctric charge | 20,981.64 | |||
| Guangdong Guanghui Expressway Co., Ltd. | Advertising Electricity | 3,937.74 | |||
| Guangdong Lulutong Co., Ltd. | Maintenance charges | 715,406.99 | |||
| Guangdong Tongyi Expressway Service Area Co., Ltd | Service | 103,076.37 | |||
| Guangdong Expressway Media Co., Ltd. | Electric charge | 6,431.59 | |||
| Poly Changda Engineering Co., Ltd. | Service charge | 2,440.62 | |||
| Guangdong Guanghui Expressway Co., Ltd. | Interest | 3,029,231.25 | 2,014,593.75 | ||
| Guangdong Jiangzhong Expressway Co., Ltd. | Interest | 712,530.00 | 708,615.00 | ||
| Guangdong East Thinking Management Technology Development Co., Ltd. | Service | 60,000.00 | 60,000.00 | ||
| Guangdong Union electronic services co., Ltd. | OA system maintenance | 17,094.71 | |||
| Poly Changda Engineering Co., Ltd. | Purchase assets | 47,564,260.01 | 183,277,074.35 | ||
| Guangdong Xinyue traffic Investment Co., Ltd. | Purchase assets | 1,908,423.62 | 6,688,119.43 | ||
| uangdong Hualu Traffic Technology Co., Ltd. | Purchase assets | 459,346.00 |
Related transactions on sale goods and receiving services
In RMB
| Related party | Content | Amount of current period | Amount of previous period |
| Jingzhu Expressway Guangzhu North section Co., Ltd. | Commission management fee | 9,734,292.46 | 9,516,226.40 |
| Guangdong Provincial Freeway Co.,Ltd. | Project fund | 1,773,900.00 | 2,052,036.80 |
| Related party | Content | Amount of current period | Amount of previous period |
| Guangdong Union electronic services co., Ltd. | Promotion fees | 1,525,613.18 | |
| Guangdong Guanghui Expressway Co., Ltd. | Revenue from heavy maintenance services | 522,123.89 | |
| Guangdong Tongyi Expressway Service Area Co., Ltd | water and electricity | 427,637.49 | |
| Guangdong Feida Traffic Engineering Co., Ltd | CPC card sales revenue | 138,053.09 | |
| Poly Changda Engineering Co., Ltd. | water and electricity | 16,894.60 | |
| Guangdong Xinyue traffic Investment Co., Ltd. | Purchase assets | 15,840.71 | 32,212.39 |
| Guangzhenzhu Expressway Co., Ltd. | Project fund | 8,407.08 | 114,655.17 |
| Guangdong Highway Construction Co., ltd. | Project fund | 603,570.34 | |
| Guangdong Road & Bridge Construction Development Co., Ltd. | Project fund | 120,550.07 | |
| Guangdong Boda Expressway Co., Ltd. | Project fund | 107,547.17 | |
| Guangdong Kaiyang Expressway Co., Ltd. | Project fund | 89,142.85 | |
| Yunfo Guangyun Expressway Co., Ltd. | Project fund | 69,535.81 | |
| Guangdong Traffic Industry Investment Co., Ltd. | Project fund | 59,433.96 | |
| Guangdong Humen Bridge Co., Ltd. | Project fund | 29,716.98 | |
| Zhaoqing Yuezhao Highway Co., Ltd. | Project fund | 123,113.21 | |
| Guangdong Jiangzhong Expressway Co., Ltd. | Project fund | 169,001.14 | |
| Shenzhen Huiyan Expressway Co., Ltd. | Project fund | 663,319.81 |
(2) Information of related lease
The Company was lessor：
In RMB
| Name of lessee | Category of lease assets | The lease income confirmed in this year | The lease income confirmed in last year |
| Guangdong Litong Technology Investment Co., Ltd. | Land lease | 37,690.80 | |
| Guangdong Expressway | Advertising lease | 12,905.92 | 195,542.86 |
| Media Co., Ltd. | |||
| Total | 50,596.72 | 195,542.86 |
- The company was lessee：
In RMB
| Lessor | Category of leased assets | The lease income confirmed in this year | Category of leased assets |
| Guangdong Litong Real Eatate Investment Co., Ltd | Office space | 4,450,575.83 | 4,469,957.38 |
| Zhaoqing Yuezhao Highway Co., Ltd. | Advertising column lease | 124,031.00 | |
| Guangzhou Yueyun Traffic Co., Ltd. | Car rental fee | 59,601.00 | 42,400.00 |
| Guangdong Gaoda Property Development Co., Ltd. | Office space | 49,582.73 | 52,686.57 |
| Total | 4,683,790.56 | 4,565,043.95 |
Note
(3) Inter-bank lending of capital of related parties
In RMB
| Related party | Amount borrowed and loaned | Initial date | Due date | Notes |
| Borrowed | ||||
| Guangdong Guanghui Expressway Co., Ltd. | 30,000,000.00 | April 2,2019 | April 1,2020 | |
| Guangdong Guanghui Expressway Co., Ltd. | 105,000,000.00 | April 1,2019 | March 31,2020 | |
| Guangdong Guanghui Expressway Co., Ltd. | 45,000,000.00 | September 25,2019 | September 24,2020 | |
| Guangdong Guanghui Expressway Co., Ltd. | 105,000,000.00 | May 13,2020 | May 12,2021 | |
| Guangdong Guanghui Expressway Co., Ltd. | 30,000,000.00 | April 21,2020 | April 20,2021 | |
| Guangdong Jiangzhong Expressway Co Loaned., Ltd. | 36,000,000.00 | November 14,2018 | November 13,2023 | |
| Loaned | ||||
(4) Rewards for the key management personnel
In RMB
| Items | Amount of current period | Amount of previous period |
| Rewards for the key management personnel | 218.30 | 241.78 |
(5) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
In RMB
| Items | Amount of current period | Amount of previous period |
| Balance of Deposit | 680,793,735.15 | 189,879,309.18 |
| Interest Income | 3,962,970.38 | 6,226,669.02 |
| Pricing Principle | Reference to the deposit rate of the people's Bank of China for the same period | |
On December 25, 2017 and December 22, 2017, the Company signed the Cash Management BusinessCooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and Industrial andCommercial Bank of China Guangdong Branch and signed the Cash Management Business CooperationAgreement with Guangdong Communications Group Finance Co., Ltd. and China Construction Bank Corporation.Guangdong Branch respectively, to join in the cash pool of Guangdong Communications Group Finance Co., Ltd.
-On June 15, 2016,The company’s 29th meeting (Provisional) of the seventh board of directors wasconvened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project ofSanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting, agreedthat Guangdong Provincial Fokai Expressway Co., Ltd entrusts Guangdong Provincial Highway Construction Co.,Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section ofShengyang-to-Haikou National Expressway, and handling the related matters of the entrustment of theconstruction management.
6. Receivables and payables of related parties
（1）Receivables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Contract assets | Guangdong Xinyue Traffic Investment Co., Ltd. | 127,567.50 | 127,567.50 | ||
| Contract assets | Guangdong Road & Bridge Construction | 83,391.05 | 83,391.05 | ||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Development Co., ltd. | |||||
| Contract assets | Guangdong Guanghui Expressway Co., Ltd. | 48,880.00 | 48,880.00 | ||
| Contract assets | Guangdong Feida Traffic Engineering Co.,Ltd. | 48,230.00 | 48,230.00 | ||
| Contract assets | Zhaoqing Yuezhao Highway Co., Ltd. | 41,442.48 | 41,442.48 | ||
| Contract assets | Guangdong Provincial Freeway Co.,Ltd. | 21,232.00 | 41,377.00 | ||
| Contract assets | Guangdong Guangzhu West Line Expressway Co., Ltd. | 18,781.60 | 18,781.60 | ||
| Contract assets | Guangshenzhu Expressway Co., Ltd. | 9,096.00 | 9,096.00 | ||
| Contract assets | Guangdong Jiangzhong Expressway Co., Ltd. | 8,412.00 | 8,412.00 | ||
| Contract assets | Guangdong Highway Construction Co., Ltd. | 7,200.00 | 7,200.00 | ||
| Contract assets | Guangdong Boda Expressway Co., Ltd. | 4,531.00 | 4,531.00 | ||
| Contract assets | Guangdong Humen Bridge Co., Ltd. | 2,700.00 | 2,700.00 | ||
| Contract assets | Guangdong Shenshan Expressway East Section Co., Ltd. | 12,000.00 | |||
| Contract assets | Guangdong Litong Technology Investment Co., ltd. | 5,273.00 | |||
| Account receivable | Guangdong Union electron Service Co., Ltd. | 51,964,979.29 | 57,172,014.20 | ||
| Account receivable | Guangdong Humen Bridge Co., Ltd. | 16,318,549.64 | 16,698,073.73 | ||
| Account receivable | Jingzhu Expressway Guangzhu North Section Co., Ltd. | 10,324,414.00 | 6,174,264.00 | 4,450.00 | |
| Account receivable | Guangdong Provincial Freeway Co.,Ltd. | 1,834,743.30 | 175,248.90 | ||
| Account receivable | Guangdong Guanghui Expressway Co., Ltd. | 1,490,227.95 | 2,112.57 | 1,355,473.55 | 2,112.57 |
| Account receivable | Guangdong Feida Traffic Engineering Co., Ltd. | 1,166,085.25 | 115,108.90 | 1,423,875.25 | 103,072.45 |
| Account receivable | Guangdong Xinyue Traffic Investment Co., ltd. | 680,652.70 | 220,555.94 | 2,334,682.70 | 160,715.94 |
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Account receivable | Guangdong Road & Bridge Construction Development Co., Ltd. | 567,957.47 | 567,957.47 | ||
| Account receivable | Guangdong Boda Expressway Co., Ltd. | 537,848.00 | 463,491.88 | ||
| Account receivable | Guangdong Highway Construction Co., Ltd. | 287,020.85 | 166,960.46 | 336,946.45 | 3,818.00 |
| Account receivable | Guangzhenzhu Expressway Co., Ltd. | 79,236.00 | 950.00 | 115,278.40 | |
| Account receivable | Guangdong Guangzhu West Line Expressway Co., Ltd. | 65,946.00 | 65,946.00 | 384,226.00 | |
| Account receivable | Guangdong Jiangzhong Expressway Co., Ltd. | 19,708.00 | 19,708.00 | ||
| Account receivable | Guangdong Shenshan Expressway Co., Ltd. | 12,000.00 | |||
| Account receivable | Guangdong Yuedong Expressway Industry Development Co., Ltd. | 7,367.20 | 736.72 | 7,367.20 | |
| Account receivable | Guangdong Guangle Expressway Co., Ltd. | 7,248.00 | 7,248.00 | ||
| Account receivable | Guangdong Yueyun Traffic Co., Ltd. | 3,032.00 | 3,032.00 | ||
| Account receivable | Guangdong Expressway Media Co., Ltd. | 1,909,300.00 | |||
| Account receivable | Guangdong Litong Technology Co., ltd. | 68,542.00 | |||
| Account receivable | Guangdong Maozhan Expressway Co., Ltd. | 8,747.20 | |||
| Account receivable | Guangdong Shanfen Expressway Co., Ltd. | 8,028.80 | |||
| Account receivable | Jiangmen Jianghe Expressway Co.,Ltd. | 2,539.20 | |||
| Advanced payment | Guangdong Feida Traffic Engineering Co., Ltd. | 595,546.00 | |||
| Advanced payment | Zhaoqing Yuezhao Highway Co., Ltd. | 20,672.00 | 144,703.00 | ||
| Advanced | Guangdong Litong Real Estate | 735,092.38 | |||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| payment | Investment Co., Ltd. | ||||
| Dividend Receivable | Zhaoqing Yuezhao Highway Co., Ltd. | 9,750,000.00 | |||
| Dividend Receivable | Guangdong Yueke Technology Petty Loan Co., Ltd. | 6,000,000.00 | |||
| Other Account receivable | Guangdong Litong Real Estate Investment Co., Ltd. | 1,515,077.22 | 1,515,077.22 | ||
| Other Account receivable | Guangdong Guanghui Expressway Co., Ltd. | 560,000.00 | 560,000.00 | ||
| Other Account receivable | Guangdong Provincial Freeway Co.,Ltd. | 463,491.88 | 566,447.18 | ||
| Other Account receivable | Zhaoqing Yuezhao Highway Co., Ltd. | 390,000.00 | 390,000.00 | ||
| Other Account receivable | Guangdong Expressway Media Co., Ltd. | 120,655.99 | 896,321.01 | ||
| Other Account receivable | Guangdong Tongyi Expressway Service Area Co., Ltd. | 94,029.95 | |||
| Other Account receivable | Gaungshenzhu Expressway Co., Ltd. | 60,640.00 | 60,640.00 | ||
| Other Account receivable | Guangdong Gaoda Property Development Co., ltd. | 29,462.00 | 15,906.00 | ||
| Other Account receivable | Guangdong Boda Expressway Co., Ltd. | 22,740.00 | 22,740.00 | ||
| Other Account receivable | Guangdong Gufangzhu West Line Expressway Co., Ltd. | 20,000.00 | 20,000.00 | ||
| Other Account receivable | Poly Changda Engineering Co., Ltd. | 8,346.18 | |||
| Other Account receivable | Hongkong Zhuhai Macao Bridge Connection line management center | 3,000.00 | 3,000.00 | ||
| Other Non-Current Assets | Poly Changda Engineering Co., Ltd. | 34,218,249.49 | 48,400,293.16 | ||
| Other Non-Current Assets | Guangdong Hualu Traffic Technology Co., Ltd. | 277,117.00 | |||
| Long-term amortization costs | Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 1,061,255.72 | 1,114,764.44 | ||
（2）Payables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning |
| Account payable | Guangzhongjiang Expressway Project Management Dept | 28,000,000.00 | 28,000,000.00 |
| Account payable | Guangdong Highway Construction Co., Ltd. | 25,630,651.00 | 25,630,651.00 |
| Account payable | Guangdong Provincial Freeway Co.,Ltd. | 8,746,491.18 | 8,746,491.18 |
| Account payable | Guangdong Feida Traffic Engineering Co., Ltd. | 5,054,211.99 | 7,588,881.23 |
| Account payable | Guangdong Litong Technology Investment Co., Ltd. | 2,663,010.00 | 2,663,010.00 |
| Account payable | Guangdong Litong Real Estate Investment Co., Ltd. | 1,481,776.94 | |
| Account payable | Guangdong Xinyue Traffic Investment Co., Ltd. | 1,237,761.42 | 1,237,761.42 |
| Account payable | Guangdong Union Electron Service Co.,Ltd. | 859,831.41 | |
| Account payable | Guangdong Guanghui Expressway Co., Ltd. | 727,200.00 | 742,051.92 |
| Account payable | Poly Changda Engineering Co., Ltd. | 16,685,096.00 | |
| Account payable | Guangdong Lulutong Co., ltd. | 852,623.59 | |
| Account payable | Guangdong Hualu Traffic Technology Co., Ltd. | 276,371.00 | |
| Other Payable account | Guangdong Guanghui Expressway Co., Ltd. | 182,161,406.25 | 184,505,512.50 |
| Other Payable account | Poly Changda Engineering Co., Ltd. | 4,665,296.00 | 19,879,471.19 |
| Other Payable account | Guangdong Union Electron Service Co.,Ltd. | 3,071,938.39 | 367,300.00 |
| Other Payable account | Guangdong Feida Traffic Engineering Co., Ltd. | 1,758,080.11 | 2,092,641.20 |
| Other Payable account | Guangdong Hualu Traffic Technology Co., Ltd. | 1,156,567.00 | 1,077,965.88 |
| Other Payable account | Guangdong Xinyue Traffic Investment Co., Ltd. | 986,279.22 | 1,331,893.22 |
| Other Payable account | Guangdong East Thinking Management Technology Development Co., Ltd. | 439,523.40 | 416,398.40 |
| Other Payable account | Guangdong Litong Technology Investment Co., Ltd. | 247,070.50 | 247,070.50 |
| Other Payable account | Guangzhongjiang Expressway Project | 200,000.00 | 200,000.00 |
| Name | Related party | Amount at year end | Amount at year beginning |
| Management Dept | |||
| Other Payable account | Guangdong Tongyi Expressway Service Area Co., Ltd. | 120,000.00 | 120,000.00 |
| Other Payable account | Guangdong Communication Planning & Design Institute Co., Ltd. | 158,049.70 | 158,049.70 |
| Other Payable account | Guangzhou Xinyue Traffic Technology Co., Ltd. | 101,323.00 | 101,323.00 |
| Other Payable account | Guangdong Expressway Media Co., Ltd. | 70,000.00 | 70,000.00 |
| Other Payable account | Ganzhou Kangda Expressway Co., Ltd. | 72,121.23 | |
| Other Payable account | Guangdong Litong Real Estate Investment Co., Ltd. | 28,429.38 | |
| Other Payable account | Guangdong Lulutong Co., Ltd. | 10,912.41 | 10,912.41 |
| Dividend payable | Guangdong Communication Group Co., Ltd. | 216,663,424.84 | |
| Dividend Payable | Guangdong Highway Construction Co., Ltd. | 196,789,158.44 | |
| Dividend payable | Guangdong Provincial Freeway Co.,Ltd. | 22,339,621.20 | |
| Dividend payable | Xinyue Co., Ltd. | 5,570,858.29 | |
| Dividend Payable | Guangdong Traffic Development Co., Ltd. | 899,075.22 | |
| Contract Liabilities | Guangdong Xinyue Traffic Investment Co., Ltd. | 22,300.88 | |
| Non-current liabilities due 1 year | Guangdong Jiangzhong Expressway Co., Ltd. | 39,150.00 | 43,065.00 |
| Long-term payable | Guangdong Jiangzhong Expressway Co., Ltd. | 36,000,000.00 | 36,000,000.00 |
7. Related party commitment
NoneXIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
NoneXIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
（1）Capital commitment
On June 15, 2016, the Company’s 29th meeting (Provisional) of the seventh board of directors wasconvened. In the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltdpertaining to the Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-HaikouNational Expressway was examined and approved, agreed that based on the approved total investment amount byrelevant government department, then the company’s subsidiary- Guangdong Fokai Expressway Co., Ltd carriesout the investment and construction of the renovation and expansion project of Sanbao-to-Shuikou Section ofShengyang-to-Haikou National Expressway; the company increases funding for Guangdong Provincial FokaiExpressway Co., Ltd pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section ofShengyang-to-Haikou National Expressway, with the contributed funds as a proportion of 35% of the totalinvestment amount approved by relevant government department. The afore-said item had been examined andapproved in the first extraordinary general shareholder meeting, The Company had received the approval of theNational Development and Reform comission about the uandongProvincial Santbao-Shuikou Expressway SectionRebubuilding and Expansion Project(NO.1874-2016-NDRC Infrastructure Document)from Guangdong ProvincelDevelopment and reform Commission On October 11, 2016, agreed with the implementation of the GuangdongProvincial Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the totalinvestment of this project is about 3.513 billion yuan(the static investment is about 3.289 billion yuan), of whichthe project capital is 1.23 billion yuan that accounts for 35% of the total investment and such amount of theproject capital will be provided by Guangdong Provincial Fokai Expressway Co., Ltd, and the rest amount of2,283 billion yuan will be solved by using bank loans. According to the "Official Reply to the preliminary designof reconstruction and extension project of Guangdong Sanbao to Shuikou Road by Ministry of Transport"(No.73-2017 Transport Road Document) issued by Guangdong Provincial Department of Transport, the Ministryof Transport checked and ratified that the general estimate of the preliminary design of reconstruction andextension project of Guangdong Sanbao to Shuikou Road is RMB 3.426 billion As of June 30,2020, Theaccumulated expenses occurred of Sanboto Shuikou Highway extension project was 2.587 billion yuan.
| No | Contract Counterparty | Economic Content | Contract Amount | Fulfilled as of June 30, 2020 |
| 1 | China Railway Tunnel Group Co., Ltd. | Civil Engineering | 251,026,485.00 | 247,327,027.72 |
| 2 | Boli Changda Engineering Co., Ltd. | Civil Engineering | 624,878,240.00 | 579,422,527.93 |
| 3 | China Railway 18th Bureau Group Co., Ltd. | Civil Engineering | 219,974,609.00 | 205,366,454.48 |
| 4 | CCCC First Navigation Engineering Bureau Co., Ltd | Civil Engineering | 355,014,108.00 | 300,078,345.44 |
2. Contingency
(1) Significant contingency at balance sheet date
As of June 30,2020,The company does not disclose the pension plan undisclosed matter should exist.
(2) The Company have no significant contingency to disclose, also should be stated
NoneXV. Events after balance sheet date
1.Profit distribution
On April 3, 2020, the ninth board of directors of the Company held its fourth meeting, approved the profitdistribution plan for 2019, and distributed cash dividends of RMB 882,320,185.17. On June 29, 2020, theCompany convened the 2019 Annual General Meeting of Shareholders, reviewed and approved the profitdistribution plan, and distributed cash dividends of RMB 882,320,185.17.On August 6, 2020, the cash dividend of A shareholders entrusted by the Company to China ClearingShenzhen Branch will be directly transferred to its capital account through the shareholder custody securitiescompany (or other custodian institutions); Dividends of restricted shares before the initial offering of A shares andcash dividends of Guangdong Provincial Freeway Co.,Ltd., a shareholder of A shares, are distributed by the Companyitself. On August 10, 2020, the cash dividends of B shareholders were directly transferred to their capital accountsthrough the custodian securities companies or custodian banks through shareholders.
In RMB
| Profits or dividends declared upon examination and approval | 882,320,185.17 |
XVI.Other significant events
1. Segment information
The company's business for the Guangfo Expressway , the Fokai Expressway and Jingzhu Expressway Guangzhu
Section toll collection and maintenance work, the technology industry and provide investment advice, no othernature of the business, no reportable segment.
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
| Subsidy item | Category | Opening balance | New subsidy amount in current period | The carry-over in current period is included in profit and loss amount | Other changes | Closing balance | Presentation items carried over into profit or loss in the current period | Asset-related/revenue-related |
| Cancel the special subsidy for the expressway provincial toll station project | Financial appropriation | 35,416,900.00 | 3,137,075.19 | 32,279,824.81 | Other income | Assets related | ||
| Discount interest fund | Discount interest fund | 2,500,000.00 | 2,500,000.00 | Financial Expreses | Income related |
(2) Government subsidies included in current profits and losses using the total amount method
| Subsidy item | Category | Amount included in profit or loss in the current period | Presentation items included in profit or loss in the current period | Asset-related/revenue-related |
| Subsidy for post stabilization | Subsidy for post stabilization | 398,471.22 | Other income | Income related |
3.Other important transactions and events have an impact on investors decision-making
(1)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii 035#collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads thecollapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10, 2009, Jiujiang Bridge openedto traffic has been restored.
On June 19,2007， The Ministry of Communications, the State Production Safety Supervision andAdministration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15"Jiujiang Bridge Collision Accident", initially determined the causes of the accident are: the incident shipsuddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain neglected looking out, did nottake proper measures and deviated from the main channel, touched the 325 National Road Jiujiang Bridge thenon-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an unnaturalOn July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea ShippingCompany Limited and Yang Xiong to undertake the compensation 25,587,684 yuan for the loss caused bycollapsing of Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According tothe (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case
was suspended.After the court accepted the case, the incident investigation team of Guangdong Provincial Government hadnot made the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend theproceeding. In September 2008, Jiujiang Bridge accident investigation report was officially reported and resumedthe proceedings. On December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case.Currently, Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide,therefore, on January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. On September 17,2013, the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings,the court decided to resume the trial. On December 19, 2013, the Guangzhou Maritime Court opened a courtsession, has not yet made the first-instance judgment. On March 7, 2014 the Court made the first instance verdict:
the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong compensated the plaintiff FokaiExpressway Co., Ltd. toll revenue losses of 19,357,500.96 yuan; the court dismissed the plaintiff other aspirations.The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong Provincial HigherPeople's Court ruled on June 5, 2014, the case discontinued proceedings. By the end of the report period, theabatement of action causes are already removed and the provincial higher court restores the hearing and conductsthe investigation on April 21, 2017. On 27 February 2020, the company received a court decision of secondinstance, which rejected the appeal and upheld the original sentence. Because the defendant failed to perform theeffective judgment, the company applied to Guangzhou Maritime Court for compulsory execution. On July 27,2020, the company received the enforcement ruling of Guangzhou Maritime Court ([2020] Y 72 Z No.247 - 3rd);A total execution payment of RMB 657,219.33 was transferred to our company by the court, and the executionprocedure was terminated according to law.
(2)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial ExpresswayDevelopment Co., Ltd. was held of May 10, 2012. The meeting examined and adopted the proposal Concerningthe Company’s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. TheCompany was approved to accept the insurance bond investment plan made by Pacific Asset Management Co.,Ltd. The amount of proceeds to be raised is not more than 1.5 billion yuan . Floating interest rate plus guaranteedbase interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate ofRMB loan with a term of over five years on the day when the investment fund of the insureance company istransferred into the Company’s account and the corresponding days of the future years, which shall be adjustedonce each year. The guaranteed base interest rate is 5.6%. The concrete amount of raised proceeds shall bewithin maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to theCompany shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan betweenPacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of theCompany to implement the above-mentioned matters.The Company was approved to provide counter guarantee to Guangdong Communication GroupCo.,Ltd.with 75% equity of Guangdong Fokai Expressway Co., Ltd. Held by it . As of the end of this period, thecompany has returned all the raised funds to Pacific Asset Management Co., Ltd. On May 22, 2020, the companycompleted the cancellation registration of equity pledge of Guangzhou Guangzhu Transportation InvestmentManagement Co., Ltd.
（3）The 19th (Provisional)Meeting of the Eighth board of directors of Guangdong Provincial ExpresswayDevelopment Co., Ltd. was held of August 7, 2018. The meeting examined and approved the Proposal on IssuingMedium-Term Notes，Agree that the company intends to register in the China Interbank Market DealersAssociation with a quota of not more than 3.4 billion yuan (inclusive), which is within 40% of the company's
latest audited net assets. Apply for a one-time or installment in a timely manner, with a term of no less than 5years (including 5 years), and raise funds to repay the loan and replenish working capital; The matter has beenpassed by the resolution of the first interim shareholders' meeting in 2018.On January 4, 2019, the dealers association issued a Notice of Acceptance of Registration (ZSXZ [2019]MTN 9). The amount of acceptance of the company's medium-term notes is 3.4 billion yuan, and the amount ofregistration is valid for 2 years from the date of receipt of the notice of acceptance, and it is jointly underwrittenby Industrial and Commercial Bank of China Limited and China Construction Bank Limited. The companyborrowed 680 million yuan on March 1, 2019.
XVII..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Of which | ||||||||||
| Accrual of bad debt provision by portfolio | 21,134,758.62 | 100.00% | 21,134,758.62 | 21,864,051.27 | 100.00% | 21,864,051.27 | ||||
| Of which： | ||||||||||
| Aging portfolio | 21,134,758.62 | 100.00% | 21,134,758.62 | 21,864,051.27 | 100.00% | 21,864,051.27 | ||||
| Total | 21,134,758.62 | 100.00% | 21,134,758.62 | 21,864,051.27 | 100.00% | 21,864,051.27 | ||||
Accrual of bad debt provision by single item: NoneRelevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other receivables if the provision for bad debts ofbills receivable is accrued according to the general model of expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 21,134,758.62 |
| Total | 21,134,758.62 |
(2) Accounts receivable withdraw, reversed or collected during the reporting period
None
（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 | Proportion(%) | Bad debt provision |
| Guangdong Union Electronic Services Co., Ltd. | 21,134,758.62 | 100.00% | |
| Total | 21,134,758.62 | 100.00% |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNone
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivableNoneOther note：
2.Other accounts receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Dividend receivable | 166,906,851.62 | 7,205,472.90 |
| Other receivable | 6,683,668.23 | 6,230,178.29 |
| Total | 173,590,519.85 | 13,435,651.19 |
（1）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 | 1,205,472.90 | 1,205,472.90 |
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 6,000,000.00 | |
| Jingzhu Expressway Guangzhu Section Co., Ltd. | 41,587,034.32 | |
| Guangzhou Guangzhu Traffic Investment Mangement Co., Ltd. | 114,364,344.40 | |
| Zhaoqing Yuezhao Highway Co., Ltd. | 9,750,000.00 | |
| Total | 166,906,851.62 | 7,205,472.90 |
2）Significant dividend receivable aged over 1 yearNone
（2） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Balance of settlement funds for securities transactions | 30,844,110.43 | 30,844,110.43 |
| Cash deposit | 1,953,995.00 | 1,935,101.00 |
| Petty cash | 2,582,145.37 | 1,700,634.57 |
| Other | 2,147,527.86 | 2,594,442.72 |
| Total | 37,527,778.66 | 37,074,288.72 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2020 | 30,844,110.43 | 30,844,110.43 |
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2020 in current | —— | —— | —— | —— |
| Balance as at June 30,2020 | 30,844,110.43 | 30,844,110.43 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year | 2,846,525.95 |
| 1-2 years | 1,010,739.70 |
| 2-3 years | 443,715.70 |
| Over 3 years | 33,226,797.31 |
| 3-4 years | 1,490,184.00 |
| 4-5 years | 463,491.88 |
| Over 5 years | 31,273,121.43 |
| Total | 37,527,778.66 |
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | write - off | Other | |||
| Accrual of bad debt provision by single item: | 30,844,110.43 | 30,844,110.43 | ||||
| Total | 30,844,110.43 | 30,844,110.43 | ||||
Of which the significant amount of the reversed or collected part during the reporting period :None
4)The actual write-off other accounts receivable: None
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
| Name | Nature | Closing balance | Aging | Proportion of the total year end balance of the accounts receivable(%) | Closing balance of bad debt provision |
| Kunlun Securities Co.,Ltd | Securities trading settlement funds | 30,844,110.43 | Over 5 years | 82.19% | 30,844,110.43 |
| Petty cash | Petty cash | 2,429,631.37 | Within 1 year | 6.47% | |
| Guangdong Litong Real Estates Investment Co., Ltd. | Deposit | 1,505,864.00 | 3-4 years | 4.01% | |
| Foshan Hezhan Yinghui Property Management Co., Ltd. | Disposal of fixed assets | 935,820.00 | Within 1 year | 2.49% | |
| Guangdong Provincial Freeway Co.,Ltd. | Entrustment management fee | 463,491.88 | 4-5 year | 1.24% | |
| Total | -- | 36,178,917.68 | -- | 96.40% | 30,844,110.43 |
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accountsreceivable
None
3. Long-term equity investment
In RMB
| Items | End of term | Beginning of term | ||||
| Book Balance | Impairment | Book value | Book Balance | Impairment | Book value | |
| provision | provision | |||||
| Investment in subsidiaries | 1,613,665,008.81 | 1,613,665,008.81 | 1,533,665,008.81 | 1,533,665,008.81 | ||
| Investment in joint ventures and associates | 3,231,674,455.49 | 3,231,674,455.49 | 3,255,739,898.36 | 3,255,739,898.36 | ||
| Total | 4,845,339,464.30 | 4,845,339,464.30 | 4,789,404,907.17 | 4,789,404,907.17 |
（1）Investment to the subsidiary
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||
| Add investment | Decreased investment | Withdrawn impairment provision | Other | ||||
| Jingzhu Expressway Guangzhu Section Co., Ltd. | 419,105,446.88 | 419,105,446.88 | |||||
| Guangzhou Guangzhu Traffic Investment Management Co., Ltd. | 859,345,204.26 | 859,345,204.26 | |||||
| Guangfo Expressway Co., ltd. | 154,982,475.25 | 154,982,475.25 | |||||
| Guangdong Expressway Technology Investment Co., Ltd. | 95,731,882.42 | 95,731,882.42 | |||||
| Yuegao Capital Investment (Hengqin) Co., Ltd. | 4,500,000.00 | 80,000,000.00 | 84,500,000.00 | ||||
| Total | 1,533,665,008.81 | 80,000,000.00 | 1,613,665,008.81 | ||||
（2）Investment to joint ventures and associated enterprises
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Guangdong Guanghui Expressway Co., Ltd. | 1,048,473,573.52 | 43,495,261.34 | 3,954,180.00 | 24,715,954.57 | 1,071,207,060.29 | ||||||
| Subtotal | 1,048,473,573.52 | 43,495,261.34 | 3,954,180.00 | 24,715,954.57 | 1,071,207,060.29 | ||||||
| II. Associated enterprises | |||||||||||
| Guangdong Jiangzhong Expressway Co., Ltd. | 179,491,516.98 | -2,474,550.29 | 177,016,966.69 | ||||||||
| Ganzhou Gankang Expressway Co., Ltd. | 213,672,650.90 | -18,334,081.49 | 195,338,569.41 | ||||||||
| Ganzhou Kangda Expressway Co., Ltd. | 234,733,526.86 | 5,693,920.94 | 240,427,447.80 | ||||||||
| ShenzhenHuiyan Expressway Co., Ltd. | 262,682,427.44 | 916,998.38 | 263,599,425.82 | ||||||||
| Guoyuan Securities Co.,Ltd. | 793,926,807.52 | 14,629,008.65 | 2,533,278.11 | 11,940,297.90 | 799,148,796.38 | ||||||
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 214,637,335.45 | 4,318,117.99 | 218,955,453.44 | ||||||||
| Zhaoqing Yuezhao Highway Co., Ltd. | 308,122,059.69 | 7,608,675.97 | 49,750,000.00 | 265,980,735.66 | |||||||
| Subtotal | 2,207,266,324.84 | 12,358,090.15 | 2,533,278.11 | 61,690,297.90 | 2,160,467,395.20 | ||||||
| Total | 3,255,739,898.36 | 55,853,351.49 | 2,533,278.11 | 3,954,180.00 | 86,406,252.47 | 3,231,674,455.49 |
4. Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 288,021,522.60 | 326,653,026.85 | 617,314,121.48 | 325,665,097.11 |
| Other | 5,558,207.44 | 2,004,931.99 | 5,812,395.87 | 3,525,577.41 |
| Total | 293,579,730.04 | 328,657,958.84 | 623,126,517.35 | 329,190,674.52 |
5.Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Long-term equity investment income accounted by cost method | 380,951,378.72 | 670,160,115.89 |
| Long-term equity investment income accounted by equity method | 55,853,351.49 | 237,712,998.09 |
| Investment return on investments held to maturity during the holding period | 50,785,213.04 | 38,528,868.23 |
| Interest income from debt investment during holding period. | 25,494,258.90 | 29,257,519.49 |
| Total | 513,084,202.15 | 975,659,501.70 |
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Gains/Losses on the disposal of non-current assets | -184,874.06 | |
| Government grants recognized in the current period, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the country’s unified standards | 3,535,546.41 | |
| Net amount of non-operating income and expense except the aforesaid items | 2,070,546.90 | |
| Other non-recurring Gains/loss items | 335,742.79 |
| Items | Amount | Notes |
| Less :Influenced amount of income tax | 1,440,123.12 | |
| Influenced amount of minor shareholders’ equity (after tax) | 632,378.68 | |
| Total | 3,684,460.24 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
| Profit as of reporting period | Weighted average ROE (%) | EPS（Yuan/share） | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to common shareholders of the Company | -0.06% | -0.0028 | -0.0028 |
| Net profit attributable to common shareholders of the Company after deduction of non-recurring profit and loss | -0.10% | -0.0046 | -0.0046 |
3.Other
XII. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, Chief Financial officerand Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signaturesof certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated byChina Securities Regulatory Commission in the report period.