Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Report 2018
August 2018
I. Important Notice, Table of Contents and Definitions
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of theCompany hereby warrant that at the year , there are no misstatement, misleading representation or importantomissions in this report and shall assume joint and several liability for the authenticity, accuracy and completenessof the contents hereof.
Mr.Zheng Renfa, Compant principal , Mr. Wang Chunhua, General Manager ,Mr.Fang Zhi, Chief of theaccounting owrk, Ms.Zhou Fang, Chief of the accounting organ (chief of accounting ) hereby confirm theauthenticity and completeness of the financial report enclosed in this Semi-annual report.All the directors have attended the meeting of the board meeting at which this report was examined.The toll revenues of Expressway is main source of the major business income of the company , The chargestandard of vehicle toll must be submitted to the same level people's government for review and approval after thetransport regulatory department of province, autonomous region or municipality directly under the centralgovernment in conjunction with the price regulatory department at the same level consented upon examination.Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in thefuture price level when the cost of the company rises still depend on the approval of relevant national policies andgovernment departments, and the company isn't able to make timely adjustment to the charge standard inaccordance with the its own operation cost or the change of market supply demand. So, the change of chargepolicy and the adjustment of charge standard also have influence on the expressways operated by the company tosome extent. So, the charging policy changes and charges adjustment will affect the highways operation of thecompany.The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Table of Contents
I. Important Notice, Table of Contents and DefinitionsII. Corporate Profile and Key Financial Indicators
III. Business ProfileIV. Performance Discussion and AnalysisV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Situation of the Preferred SharesVIII .Information about Directors, Supervisors and Senior ExecutivesIX. Corporate BondsX. Financial ReportXI. Documents available for inspection
Definition
| Terms to be defined | Refers to | Definition |
| Reporting period | Refers to | January 1, 2018 to June 30,2018 |
| Reporting date | Refers to | The semi annual report of the company was approved by the board of directors on 2018, that is, August 27, 2018 |
| YOY | Refers to | Compared with January-June 2017 |
| The Company /This Company | Refers to | Guangdong Provincial Expressway Development Co.,Ltd. |
| Technology Company | Refers to | Guangdong Expressway Technology Investment Co., Ltd |
| Fokai Company | Refers to | Guangdong Provincial Expressway Development Co.,Ltd.Fokai Branch |
| Guangfo Company | Refers to | Guangdong Guangfo Expressway Co., Ltd. |
| Guangzhu East Company | Refers to | Jingzhu Expressway Guangzhu Section Co., Ltd. |
II. Corporate Profile and Key Financial Indicators1.Company Information
| Stock abbreviation: | Expressway A, Expressway B | Stock code： | 000429、200429 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name in Chinese | 广东省高速公路发展股份有限公司 | ||
| Abbreviation of Registered Company (if any) | 粤高速 | ||
| English name (If any) | Guangdong Provincial Expressway Development Co.Ltd. | ||
| English abbreviation (If any) | GPED | ||
| Legal Representative | \Zheng Renfa | ||
2. Contact person and contact manner
| Board secretary | Securities affairs Representative | |
| Name | Yang Hanming | Liang Jirong |
| Contact address | 46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou | 45/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou |
| Tel | 020-29004619 | 020-29004523 |
| Fax | 020-38787002 | 020-38787002 |
| Hmy69@126.com | 139221590@qq.com |
3. Other1. Way of contactWhether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change inreporting period, found more details in annual report 2017.2. Information inquiryWhether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For detailsplease find the Annual Report 2017.
4. Summary of Accounting Data and Financial IndicatorsIndicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No
| Reporting period | Same period of last year | YoY+/-（%） | |
| Operating income（yuan） | 1,535,864,145.14 | 1,440,222,563.74 | 6.64% |
| Net profit attributable to the shareholders of the listed company（yuan） | 779,002,246.98 | 892,848,012.53 | -12.75% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（yuan） | 752,917,711.53 | 641,933,600.43 | 17.29% |
| Cash flow generated by business operation, net（yuan） | 817,279,588.10 | 1,022,392,235.37 | -20.06% |
| Basic earning per share(yuan/Share) | 0.37 | 0.43 | -13.95% |
| Diluted gains per share(yuan/Share) | 0.37 | 0.43 | -13.95% |
| Weighted average income/asset ratio（%） | 8.60% | 10.55% | -1.95% |
| As at the end of the reporting period | As at the end of last year | YoY+/-（%） | |
| Gross assets（yuan） | 15,867,983,183.17 | 16,523,315,093.72 | -3.97% |
| Shareholders’ equity attributable to shareholders of the listed company（yuan） | 8,674,276,291.67 | 9,023,071,118.45 | -3.87% |
5. Differences between accounting data under domestic and overseas accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards.
□ Applicable √Not applicable
Nil6.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | 44,464,720.82 |
| Items | Amount | Notes |
| Other non-business income and expenditures other than the above | 1,075,059.00 | |
| Less: Amount of influence of income tax | 11,126,311.84 | |
| Amount of influence of minority interests(after tax) | 8,328,932.53 | |
| Total | 26,084,535.45 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses 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
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industryNo
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong ExpresswaySystem. The expressway industry is the industry helped by government.The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway andJingzhu Expressway Guangzhu Section investment in technological industries and provision of relevantconsultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co.,Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.and
Guangdong Guangle Expressway Co.,Ltd. As of the end of the reporting period, the company’s share-controlled
expressway is 158.12 km, and the share-participation expressway is 684.20 km, and according to the equity ratio,after the conversion calculation, the total mileage is 273.05 km.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
| Main assets | Major changes |
| Equity assets | The increase of 3.91% by the end of the period compared with that of the beginning, Mainly due to the combined influence of the operation accumulation and profit distribution of the participating units. |
| Fixed assets | The decrease of 6.58% by the end of the period compared with that of the beginning, Mainly due to the Zhuhai Municipal People's Government taking back the 4.213 km expressway of the Zhuhai section of the Guang'ao Expressway, the reduction of the road production of the Guangzhu East Company, and the depreciation of the road production. |
| Intangible assets | The decrease of 19.99% by the end of the period compared with that of the beginning, Mainly due to the impact of amortization of intangible assets. |
| Construction in process | The increase of 76.79% by the end of the period compared with that of the beginning, Mainly due to the increase in the construction of the southern section of Fokai Company. |
| Other receivable | The increase of 699.69% by the end of the period compared with that of the beginning,，Mainly due to the Zhuhai Municipal People's Government recovering the 4.213 km expressway of the Zhuhai section of the Guang'ao Expressway, and the increase in the receivables of the Guangzhu East Company by 106 million yuan. The amount was withdrawn on July 3, 2018. |
| Available for sale financial assets | The decrease of 5.24% by the end of the period compared with that of the beginning, Mainly due to the decline in the stock price of Everbright Bank, the value of |
| available-for-sale financial assets measured at fair value. | |
| Other Non-current assets | The increase of 95.29% by the end of the period compared with that of the beginning, Mainly due to the increase and decrease of the prepaid project payment and the increase of the input tax to be deducted in the southern section of Fokai Company. |
| Deferred income tax assets | The decrease of 16.14% by the end of the period compared with that of the beginning, Mainly after the parent company absorbed the wholly-owned subsidiary, it made up for some deductible losses and the deferred income tax assets decreased accordingly |
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicableⅢ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industryNo
The toll revenue of expressway industry mainly depends on the regional economic development. The
regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokai
expressway, controlled by the company, are part of the National Expressway Network Planning-“Five vertical andseven horizontal”, The share-controlled Beijing-Zhuhai Guangzhu Section Expressway is a fast and convenientexpressway.and many of the company’s equity-participation expressways that are part of the main skeleton of theGuangdong Provincial Expressway Planning-“Ten vertical and five horizontal”, which provides a strong
guarantee for stable traffic volume. Meanwhile, the regional economy is the critical factor that influences the
traffic volume, as Guangdong province is the economically developed region, with years’ continuous high
growth of GDP, so that provides the stable rising demand for the company.
IV. Performance Discussion and Analysis
Ⅰ.General
The Company is an infrastructure industry, with main business in developing and operating expressway and bigbridges. It is one of the main institutions of developing expressway and big bridge in Guangdong ExpresswaySystem. The expressway industry is the industry helped by government.In the first half of 2018, the company, according to the annual business plan established by the board of directors,soundly did a good job of each work. . In the first half of 2018, the main business income was 1.536 billion yuan,up by 6.64% over the same period of last year, meaning 47.60% of the annual plan was completed; and theoperating costs was 534 million yuan, Flat year-on-year, representing completed 40.27% of the annual plan.
In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures ofthe Company are as follows:
| Volume of vehicle | Increase | Toll income in the | Increase |
| traffic in the first half year of 2018（Ten thousand vehicles） | /Decrease(%) | first half year of 2018（Ten thousand） | /Decrease(% | |
| Guangfo Expressway | 2,953.85 | 1.50% | 22,523.45 | 13.30% |
| Fokai Expressway | 3,281.51 | 17.32% | 63,859.17 | 8.37% |
| Jingzhu Expressway Guangzhu East Section | 3,642.16 | 2.99% | 63,529.98 | 2.40% |
| Huiyan Expressway | 2,046.44 | 11.95% | 12,174.57 | 9.14% |
| Guanghui Expressway | 2,783.87 | 10.83% | 86,784.97 | 2.54% |
| Yuezhao Expressway | 1,454.50 | 7.42% | 26,279.69 | 7.14% |
| Jiangzhong Expressway | 2,574.42 | 2.84% | 22,967.71 | 5.92% |
| Guangle Expressway | 1,151.82 | 18.54% | 152,842.70 | 6.41% |
| Kangda Expressway | 127.01 | 0.02% | 11,305.54 | -6.73% |
| Gangkang Expressway | 187.22 | 35.72% | 7,677.39 | 18.87% |
Overall situation: During the reporting period, the participating and controlled expressways in GuangdongProvince continued to maintain a steady growth trend, with traffic volume and toll revenue increasingyear-on-year; the traffic volume of two expressways in Jiangxi increased, but the toll revenue increasedyear-on-year and one year decreased.1. Guangfo Expressway was affected by the implementation of restricted trucks in Foshan First Ring Road. Thenumber of trucks increased year-on-year, so the increase in toll revenue was higher than the increase in trafficvolume;2. Guangzhu Section of Jingzhu Expressway. In September 2017, the National Road Hongqili Bridge was restoredto traffic. Affected by this, the traffic volume and toll revenue increased slightly year-on-year;3. Kangda Expressway was closed by the renovation project of the 323 National Road, and some of the truckswere diverted. The toll revenue decreased.
II.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”
Year-on-year change of main financial data
In RMB
| This report period | Same period last year | YOY change（%） | Cause change | |
| Operating income | 1,535,864,145.14 | 1,440,222,563.74 | 6.64% | Mainly due to the growth of Guangfo, Fokai and Guangzhu East Company Toll revenue |
| Operating cost | 533,736,566.35 | 533,689,845.16 | 0.01% | |
| Administrative expenses | 75,594,633.97 | 77,693,914.84 | -2.70% | |
| Financial expenses | 112,780,215.47 | 133,804,359.02 | -15.71% | Mainly to repay the upfront borrowings and |
| This report period | Same period last year | YOY change（%） | Cause change | |
| increase the capitalization of the loan expansion and expansion of the southern part of the Fokai Expressway, and reduce the interest expense on financial expenses for the current period. | ||||
| Income tax expenses | 213,221,718.85 | -19,940,081.98 | 1,169.31% | Mainly in the previous period, the merger and acquisition of Fokai subsidiary confirmed the deferred income tax assets, and the current income tax expense is relatively large. |
| Cash flow generated by business operation, net | 817,279,588.10 | 1,022,392,235.37 | -20.06% | Mainly due to the increase in toll income; the Department absorbed the merger of Fokai Company, Fokai Company to pay the assessed value of assets and the difference between the previous road production accounting and tax depreciation. |
| Net cash flow generated by investment | -138,624,695.43 | -3,331,892.02 | -4,060.54% | Mainly due to the payment of the reconstruction and expansion project of the southern section of Fokai Expressway. |
| Net cash flow generated by financing | -1,217,963,569.09 | -1,027,513,171.72 | -18.54% | Mainly due to distribution of dividends for the period increased compared with the same period last year. |
| Net increasing of cash and cash equivalents | -541,576,561.05 | -7,005,743.86 | -7,630.47% | Net cash from operating activities by the inflow and outflow from investing activities due to the combined effects |
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Nil
Breakdown of main business
In RMB
| Operating revenue | operating costs | Gross profit rate(%) | Increase/decrease of reverse in the same period of the previous year(%) | Increase/decrease of principal business cost over the same period of previous year (%) | Increase/decrease of gross profit rate over the same period of the previous year (%) | |
| Industry | ||||||
| Highway transportations | 1,499,126,119.71 | 504,925,795.77 | 66.32% | 6.44% | -2.52% | 3.09% |
| Other | 19,749,732.85 | 17,392,198.77 | 11.94% | 92.62% | 216.42% | -34.46% |
| Total | 1,518,875,852.56 | 522,317,994.54 | 65.61% | 7.06% | -0.22% | 2.51% |
| Product | ||||||
| Highway transportations | 1,499,126,119.71 | 504,925,795.77 | 66.32% | 6.44% | -2.52% | 3.09% |
| Other | 19,749,732.85 | 17,392,198.77 | 11.94% | 92.62% | 216.42% | -34.46% |
| Total | 1,518,875,852.56 | 522,317,994.54 | 65.61% | 7.06% | -0.22% | 2.51% |
| Area | ||||||
| Guangfo Expressway | 225,234,633.20 | 27,776,820.78 | 87.67% | 13.30% | -53.54% | 17.74% |
| Fokai Expressway | 638,591,636.62 | 306,517,460.99 | 52.00% | 8.37% | 5.28% | 1.41% |
| Jingzhu Expressway Guangzhu section | 635,299,849.89 | 170,631,514.00 | 73.14% | 2.40% | 2.15% | 0.06% |
| Other | 19,749,732.85 | 17,392,198.77 | 11.94% | 92.62% | 216.42% | -34.46% |
| Total | 1,518,875,852.56 | 522,317,994.54 | 65.61% | 7.06% | -0.22% | 2.51% |
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
| Amount | Ratio in total profit | Note | Whether be sustainable | |
| Investment income | 259,358,302.20 | 23.33% | It is due to the operation accumulation of participant companies | Yes |
| Asset impairment | -57,890.35 | -0.01% | It is due to the provision of impairment for receivables surplus and aging changes | No |
| Non-operating income | 2,687,560.58 | 0.24% | Mainly due to the compensation for the demolition of the office of the technology company and the income of the road production claim of Fokai Branch | No |
| Non-operating expenses | 2,007,967.43 | 0.18% | Mainly due to the damage repair of civil facilities of Guangzhu East Company and the scrapping expenses of other companies' fixed | No |
| assets | ||||
| Assets disposal income | 44,860,186.67 | 4.03% | The proporty of Guangzhou-Zhuhai East Company has decreased mainly due to the Zhuhai Government has recovered the 4.213 kilometers expressway of Guangzhou-Macao Expressway of Zhuhai Section. | No |
IV.Analysis of assets and liabilities1.Significant changes in asset composition
In RMB
| End of Reporting period | End of same period of last year | Change in percentage(%) | Reason for significant change | |||
| Amount | As a percentage of total assets(%) | Amount | As a percentage of total assets(%) | |||
| Monetary fund | 1,821,466,139.37 | 11.48% | 2,363,042,700.42 | 14.30% | -2.82% | Net cash from operating activities by the inflow and outflow from investing activities due to the combined effects |
| Accounts receivable | 94,111,175.70 | 0.59% | 92,642,625.45 | 0.56% | 0.03% | |
| Inventories | 139,076.49 | 0.001% | 0.00% | 0.001% | ||
| Real estate Investment | 2,523,650.98 | 0.02% | 2,755,757.68 | 0.02% | 0.00% | |
| Long-term equity investment | 3,166,390,849.09 | 19.95% | 3,047,275,000.00 | 18.44% | 1.51% | |
| Fixed assets | 7,945,714,512.39 | 50.07% | 8,505,434,890.71 | 51.48% | -1.41% | It is mainly due to the Zhuhai Municipal People's Government taking back the 4.213 km expressway of the Zhuhai section of the Guang'ao Expressway, the reduction of the road production of the Guangzhu East Company |
| Construction in process | 629,469,949.60 | 3.97% | 356,062,655.95 | 2.15% | 1.82% | Mainly due to the increase in the construction of the south section of Fokai |
| Company. | ||||||
| Short-term loans | 0.00% | 0.00% | 0.00% | |||
| Long-term loans | 4,391,170,000.00 | 27.67% | 4,744,170,000.00 | 28.71% | -1.04% |
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
| Items | Opening amount | Gain/Loss on fair value change in the reporting period | Cumulative fair value change recorded into equity | Impairment provisions in the repoting period | Purchanased amount in the reporting period | Sold amount in the reporting period | Closing mount |
| Financial assets | |||||||
| 3.Available-for-sale financial assets | 952,782,523.20 | -91,749,428.16 | 343,472,218.24 | 861,033,095.04 | |||
| Subtotal of financial assets | 952,782,523.20 | -91,749,428.16 | 343,472,218.24 | 861,033,095.04 | |||
| Total of the above | 952,782,523.20 | -91,749,428.16 | 343,472,218.24 | 861,033,095.04 | |||
| Financial liabilities | 0.00 | 0.00 | |||||
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting
period?
□ Yes √No
3. Assets right restriction till end of reporting periodNilV.Investment situation1. General
√ Applicable □ Not applicable
| Investments made in the reporting period | Investments made in same period of last year | +/- % |
| 273,407,293.65 | 51,617,786.58 | 429.68% |
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □ Not applicable
In RMB
| Name | Form of investment | Fixed assets investment or not | Industry in which the investment project operates | Investment amount during the reporting period | Accumulated actual amount invested as of the end of reporting period | Source of und | Progress | Estimated return | Accumulated realized return as of the end of the end of the reporting period | Reasons for failure in meeting scheduled progress and estimated return | Date of Disclosure(If any) | Disclosure Index(If any) |
| Sanbao To Shuikou Section Extension project | Self | Yes | Expressway | 273,407,293.65 | 1,000,061,046.58 | Self and Borrowing | 29.19% | 0.00 | 0.00 | Nil | June 17,2016 | Announcement of the 29th (Provisional) Meeting of the seventh Board of Directors, Announcement of External Investment |
| Total | -- | -- | -- | 273,407,293.65 | 1,000,061,046.58 | -- | -- | 0.00 | 0.00 | -- | -- | -- |
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
| Security category | Security code | Stock Abbreviation: | Initial investment cost | Mode of accounting measurement | Book value balance at the beginning of the reporting period | Changes in fair value of the this period | Cumulative fair value changes in equity | Purchase amount in the this period | Sale amount in the this period | Gain/loss of the reporting period | Book value balance at the end of the reporting period | Accounting items | Sauce of the shares |
| Domestic and foreign stocks | 601818 | Everbright Bank | 517,560,876.80 | FVM | 952,782,523.20 | -91,749,428.16 | 343,472,218.24 | 42,581,144.86 | 861,033,095.04 | Financial assets available for sale | Self | ||
| Total | 517,560,876.80 | -- | 952,782,523.20 | -91,749,428.16 | 343,472,218.24 | 0.00 | 0.00 | 42,581,144.86 | 861,033,095.04 | -- | -- | ||
| Disclosure Date of Announcement on Securities Investment Approved by the Board of Directors | July 22, 2009 | ||||||||||||
| Disclosure Date of Announcement on Securities Investment Approved by the Shareholders Meeting(If any) | August 7,2009 | ||||||||||||
（2）Investment in Derivatives□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.2.Sales of major equity
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
| Company Name | Company type | Leading products and services | Registered capital | Total assets | Net assets | Operating Income | Operating profit | Net Profit |
| Guangfo Expressway | Subsidiary | Operating Guangfo Expressway Co., Ltd.(starts from Hengsha, Guangzhou, ends in Xiebian, Foshan. Total length 15.7 kilometers | 200 million yuan | 493,251,686.30 | 437,494,174.52 | 226,325,833.32 | 187,512,995.52 | 142,435,343.71 |
| Guangzhu Traffic Investment Management Co., Ltd. | Subsidiary | Highway investment management and consultation; highway maintenance | 3 million yuan | 2,744,739,947.35 | 540,806,925.21 | 645,871,184.09 | 453,365,316.41 | 184,814,435.35 |
| Jingzhu Expressway Guangzhu Section Co., Ltd. | Subsidiary | The operation and management of Jiangzhu Expressway Guangzhu Section | 580 million yuan | 2,679,733,292.93 | 974,182,310.50 | 645,871,184.09 | 453,401,008.00 | 336,091,139.89 |
| Guangdong Guanghui Expressway Co., Ltd. | Sharing company | Investment in and construction of Guanghui Expressway Co., Ltd. and supporting facilities, the toll collection and maintenance management of Guanghui Expressway, The Guanghui Expressway's supporting gas station, salvation, vehicle maintenance, vehicle transport, catering, warehousing investment and development | 2.352 billion yuan | 4,869,370,504.08 | 3,500,636,180.02 | 878,931,209.54 | 598,371,964.24 | 447,126,957.50 |
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Particulars about the Mutual holding companies1.The Company holds a 75% equity interest in the Guangfo company, the construction and operation of theGuangzhou-Foshan Expressway, including road maintenance, charges, signs, marking and other transport facilitiesmaintenance, Vehicle rescue and other business. The current net profit increased by 44.0569 million yuan, anincrease of 44.78%, the increasing is due to natural income growth and financial costs to reduce the combinedimpact.The main reason for the increase is the combined effect of the following factors: （1）The number of trucks hasincreased and the toll revenue has increased; (2) The depreciation of Guangfo Expressway has been fully drawn inthe current reporting period, so that led to a decrease in depreciation.2. The main reason for the increase was the combined effect of the natural increase of the toll revenue and thereduction of the financial costs. The net profits in the current period increased 48.8131million yuan and 14.99%compared with the last period,The main reason for the increase is the following factors: (1) According to theCompensation and Asset Transfer Agreement of Zhuhai Municipal People's Government's Recovery of theGuang-ao Expressway Zhuhai Section (Pile No. K0+945---K5+158), Guangzhu Dong Company has received allthe compensation of 206 million yuan for the equity value compensation of the asset transfer and has completedthe transfer of the asset with the Zhuhai High-tech Zone Management Committee in accordance with the
“Compensation and Asset Transfer Agreement”;(2) the natural growth of toll income; (3) the interest-bearing debt
repayment led to reduced financial costs.
VIII．Structured vehicle controlled by the Company□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2018Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year andexplanation of reason.
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
The company’s profits mainly come from the expressway tolls revenue and the toll charging standards
shall be examined by the traffic authority of the provincial, autonomous region and the direct-controlled
municipality people’s governments together with the same-level pricing authority and then submitted to thesame-level people’s government for approval. Therefore, the charging price adjustment trend and the possibility
of the charging price adjustment upon rising of the commodity price and the company cost in the future are still
subject to relevant national policies and the approval of the governmental department. And the company can’t
adjust the charging standards promptly based on its own operation cost or the market supply-demand changes. Inconclusion, the charging policies change and the charging standards adjustment have the influence on theexpressway business of the company to some extent.
V. Important Events
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Index to disclosed information |
| 2017 Shareholders’ general meeting | Annual Shareholders’ General Meeting | 66.27% | April 26,2018 | April 27,2018 | www.cinfo.com.cn |
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capitalreserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of thereporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,senior management personnel and other related parities.
□ Applicable √Not applicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers ofthe Company
IV. Particulars about engagement and disengagement of CPAs firmWhether the semi-annual financial report had been audited?
□ Yes √ No
Not been audited.
V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s”
Issued by CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.VIII. Legal mattersSignifieant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.Other legal matters
√ Applicable □ Not applicable
| Basic conditions of litigation (arbitration) | Amount involved （Ten thousand yuan ） | Forming of the predicted debt | Litigation (arbitration) progress | Litigation (arbitration) judgement result and influence | Litigation (arbitration) judgement execution condition | Date of disclosure | Index of disclosure |
| On August 22, 2007, Guangdong Fokai Expressway Co., Ltd. filed a lawsuit with Guangzhou Maritime Court officially requiring Foshan Nanhai Yuhang Shipping Co., Ltd. and Yang Xiong to undertake the joint and several liabilities for the toll losses of Fokai company due to the Jiujiang collapse. On March 7, 2014, the court made the first instance judgement requiring the defendants Foshan Nanhai Yuhang Shipping Co., Ltd. and Yang Xiong to compensate the defendant Guangdong Fokai Expressway Co., Ltd. jointly for the vehicle toll revenue loss totaling 19,357,500.96 yuan. Guangdong Higher People's Court entered a judgement on June 5, 2014 and the lawsuit terminated. By the end of the report period, the abatement of action causes are already removed and the provincial higher court restores the hearing and conducts the investigation on April 21, 2017. Now it’s still the time waiting for the court judgement. | 1,935.75 | No | Waiting for the court judgement result | No major influence on the company asset conditions and the operation results. | None |
| On June 12, 2009, the 6.15 accident-causing boat owner Yang Xiong filed a lawsuit with Guangzhou Maritime Court requiring Fokai company to compensate for the boat loss and interest totaling 7.28 million yuan. On December 20, 2013, the court made the first instance judgement rejecting all litigation claims of Yang Xiong. He filed a lawsuit with Guangdong Higher People's Court against such sentence above, and the second instance terminated the lawsuit in May 2015. By the end of the report period, the lawsuit is still suspended without any notice from the provincial higher court. | 728.00 | No | During abatement of action by the second instance | No major influence on the company asset conditions and the operation results. | None |
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
□ Applicable √ Not applicable
No such cases in the reporting period.XII.Material related transactions1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
No such cases in the reporting period.2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.4. Credits and liabilities with related parties
√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √ No
No such cases in the reporting period.5. Other significant related-party transactions
√ Applicable □Not applicable
1.The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted theProposal about Singing the Contract of Entrustment of Operation and Management of 2018-2020 of GuangzhuNorth Section of Guangdong Jingzhu Expressway between the Guangzhu Section Company and the GuangzhuNorth Section Company.Agreed that Jingzhu Expressway Guangzhu Section Co., Ltd signs the Contract ofEntrustment of Operation and Management of 2018-2020 of Guangzhu North Section of Guangdong JingzhuExpressway with the Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd, with the total contractamount not exceeding 60 million yuan.
2. The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted theProposal of Signing the Contract of Operation Entrustment of Un-Pillar Advertisement between the JingzhuExpressway Guangzhu Section Co., Ltd and the Guangdong High Speed Media Co., Ltd.Agreed that JingzhuExpressway Guangzhu Section Co., Ltd signs the Contract of Operation Entrustment of Un-Pillar Advertisementof Guangzhu Section of Beijing-Zhuhai Expressway with Guangdong High Speed Media Co., Ltd.
3. The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted theProposal about the Entrustment of Lease and Operation of Communication Pipe along the Expressways of
Guangdong Provincial Expressway Development Co.,Ltd’s Holding Subsidiaries and Branch Company.Agreed
that Our subsidiaries-Guangfo Expressway Co., Ltd and Jingzhu Expressway Guangzhu Section Co., Ltd and ourbranch company-Guangdong Provincial Expressway Development Co., Ltd Fokai Branch sign theCommunication Pipeline Lease Contract with the Guangdong Litong Technology Investment Co., Ltd, which is toentrust the communication pipeline ( including main line , ramp , structure and auxiliary facilities ) along theexpressway under the jurisdiction to Guangdong Litong Technology Investment Co.,Ltd for external lease and
maintenance, with the total lease income of about 79.27 million yuan.4. The 17th (provisional) meeting of the Eighth board of directors of the Company Examined and Adopted of the
Proposal on Borrowing Entrusted Loans to Guangdong Guanghui Expressway Co., Ltd.Agreed that the companyborrowed entrusted loans from Guangdong Guanghui Expressway Co., Ltd. The total amount of loans was 180million yuan. According to the actual needs of the company, withdrawals were made for a period of 1 year, andthe interest rate was lowered by 10% according to the benchmark interest rate of the People's Bank of China forthe same period. Used to supplement working capital. After the entrusted loan expires, it can be renewedaccording to the original conditions.
5. The 17th (provisional) meeting of the Eighth board of directors of the Company examined and adopted theProposal Concerning the Company Daily Associated Transactions Predicted of 2018. Agree on the predicted dailyassociated transactions for the company headquarters, wholly-owned and holding subsidiaries of 2018, whoseamount in total is 63.1779 million yuan.
The website to disclose the interim announcements on significant related-party transactions
| Description of provisional announcement | Date of disclosing provisional announcement | Description of the website for disclosing provisional announcements |
| Announcement of Resolutions of the 16th (provisional)Meeting of the Eighth Board of Directors | January 31,2018 | www.cninfo.com.cn |
| Announcement on related party transactions entrusted by subsidiaries | January 31,2018 | www.cninfo.com.cn |
| Announcement on Related Transactions of Entrusted Leasing Operation of Communication Pipeline along the Expressway of Guangdong Expressway Holding Subsidiary and Branch | January 31,2018 | www.cninfo.com.cn |
| Announcement on Related Transactions of Non-column Advertising Entrusted Operation of Holding Subsidiary Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd. | January 31,2018 | www.cninfo.com.cn |
| Announcement of Resolutions of the 17th (provisional) Meeting of the Eighth Board of Directors | March 29,2018 | www.cninfo.com.cn |
| Related transaction announcement | March 29,2018 | www.cninfo.com.cn |
| Announcement of Daily Associated Transactions Predicted of 2018 | March 29,2018 | www.cninfo.com.cn |
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and otherrelated parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing□Applicable √ Not applicable
No such cases in the reporting period.2.Contracting
□Applicable √ Not applicable
2.Guarantees
√Applicable□Not applicable（1）Guarantees
Ten thousand yuan
| Extemal guarantess made by the Company（Exclude those made for subsidiaries） | ||||||||
| Name of the Company | Relevant disclosure | Amount of Guarantee | Date of happening | Actual mount of | Guarantee type | Guarantee term | Complete implementa | Guarantee for |
| date/No. of the guaranteed amount | (Date of signing agreement) | guarantee | tion or not | associated parties (Yes or no) | |||||
| Guangdong Communication Group Co.,Ltd | May 11,2012 | 172,500 | May 31,2013 | 172,500 | Martgage | 2012.9.25-2021.7.25 | No | Yes | |
| Total of external guarantee approved at Period-end(A3) | 172,500 | Total balance of actual external guarantee at Period-end(A4) | 172,500 | ||||||
| Guarantee of the Company for the controlling subsidiaries | |||||||||
| Name of the Company guaranteed | Relevant disclosure date/No. of the guaranteed amount | Amount of guarantee | Date of happening (Date o signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) | |
| Guarantee of the subsidiaries for the controlling subsidiaries | |||||||||
| Name of the Company guaranteed | Relevant disclosure date/No. of the guaranteed amount | Amount of guarantee | Date of happening (Date o signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) | |
| Total of Company’s guarantee（namely total of the large three aforementioned） | |||||||||
| Total of guarantee at Period-end（A3+B3+C3） | 172,500 | Total of actual guarantee at Period-end （A4+B4+C4） | 172,500 | ||||||
| The proportion of the total amount of actually guarantee in the net assets of the Company(that is A4+B4+C4) | 19.89% | ||||||||
| Including | |||||||||
| Amount of guarantee for shareholders, actual controller and its associated parties（D） | 172,500 | ||||||||
Description of the guarantee with complex method
（2）Illegal external guarantee□ Applicable √ Not applicable
Nil3. Other significant contract
□ Applicable √ Not applicable
Nil
XV.Social responsibilities
1.Major environmental protectionThe Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection departmentNo2.Overview of the annual targeted poverty alleviationThe company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up planeither.
XVI.Other material events
□Applicable √ Not applicable
No such cases in the reporting period.
XVII. Material events of subsidiaries
√Applicable□Not applicable
The 15th (provisional) meeting of the Eighth board of directors of the Company examined and adopted theProposal of matters relevant to the Zhuhai Municipal People's Government's Taking-back of Guangzhou-MacaoExpressway Zhuhai Section's 4.213 km Expressway asset compensation and asset transfer" was examined andapproved.
1. Agreed that Zhuhai High-tech Zone Management Committee uses 206 million yuan of compensation(excluding the relevant taxes and fees, and the taxes and fees compensation subjecting to the actual amount ofpayment) to take back the Guangdong-Macao Expressway Zhuhai Section's 4.213 km (Pile Number K0 +945-K5+158)Expressway Asset.
2. Agreed that Jingzhu Expressway Guangzhu section Co., Ltd-the company's holding subsidiary-shall, afterperformed the relevant decision-making procedures, enter into the Compensation and Asset transfer Agreementwith Zhuhai High-Tech Zone Management Committee.
On January 31, 2018, Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd. received the firstcompensation of RMB 100 million from Zhuhai High-tech Zone Management Committee.
On July 3, 2018, Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd. received the equity valuecompensation amount of RMB 106 million for the asset transfer from Zhuhai High-tech Zone ManagementCommittee. As of that date, Guangzhu Dong Company has received all the compensation of RMB 260 million forthe equity value compensation of the asset transfer and has completed the transfer of the asset with the Zhuhai
High-tech Zone Management Committee in accordance with the “Compensation and Asset Transfer Agreement”.
| Description of provisional announcement | Date of disclosing provisional announcement | Description of the website for disclosing provisional announcements |
| Announcement of Resolutions of the 15th (Provisional) Meeting of the Eighth Board of Directors | December 30,2017 | www.cninfo.com.cn |
| Announcement of matters relevant to the Zhuhai Municipal People's Government's Taking-back of Guangzhou-Macao Expressway Zhuhai Section's 4.213 km Expressway asset compensation and asset transfer" | December 30,2017 | www.cninfo.com.cn |
| Progress Announcement of matters relevant to the Zhuhai Municipal People's Government's Taking-back of Guangzhou-Macao Expressway Zhuhai Section's 4.213 km Expressway asset compensation and asset transfer" | February 2,2018 | www.cninfo.com.cn |
| Progress Announcement of matters relevant to the Zhuhai Municipal People's Government's Taking-back of Guangzhou-Macao Expressway Zhuhai Section's 4.213 km Expressway asset compensation and asset transfer" | July 5,2018 | www.cninfo.com.cn |
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital1. Changes in share capital
In shares
| Before the change | Increase/decrease（+，-） | After the Change | |||||||
| Amount | Proportion | Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | Quantity | Proportion | |
| 1.Shares with conditional subscription | 1,273,170,302 | 60.88% | 132,126 | 132,126 | 1,273,302,428 | 60.90% | |||
| 1.State-owned shares | 410,002,853 | 19.61% | 410,002,853 | 19.61% | |||||
| 2.State-owned legal person shares | 521,393,021 | 24.94% | 521,393,021 | 24.94% | |||||
| 3.Other domestic shares | 341,774,428 | 16.34% | 132,126 | 132,126 | 341,906,554 | 16.35% | |||
| Including ：Domestic Legal person shares | 341,225,786 | 16.32% | -120,440 | -120,440 | 341,105,346 | 16.31% | |||
| Domestic natural person shares | 548,642 | 0.03% | 252,566 | 252,566 | 801,208 | 0.04% | |||
| II.Shares with unconditional subscription | 817,635,824 | 39.11% | -132,126 | -132,126 | 817,503,698 | 39.10% | |||
| 1.Common shares in RMB | 468,885,824 | 22.43% | -30,801 | -30,801 | 468,855,023 | 22.42% | |||
| 2.Foreign shares in domestic market | 348,750,000 | 16.68% | -101,325 | -101,325 | 348,648,675 | 16.68% | |||
| III. Total of capital shares | 2,090,806,126 | 100.00% | 0 | 0 | 2,090,806,126 | 100.00% | |||
Reasons for share changed
√ Applicable □Not applicable
1. During the reporting period, 120,440 “domestic legal-person holding shares” were turned into “domesticnatural-person holding shares” through judicial confirmation.
2. During the reporting period, due to changes in the appointments of directors, supervisors and senior executivesand changes in shareholdings in the previous year, 30,801 A shares and 101,325 B shares were converted from"unlimited conditional shares" to "limited conditional shares".Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from securityregulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
| Shareholder Name | Initial Restricted Shares | Number of Unrestricted Shares This Term | Number of Increased Restricted Shares This Term | Restricted Shares in the End of the Term | Reason for Restricted Shares | Date of Restriction Removal |
| Wang Chunhua | 0 | 0 | 101,325 | 101,325 | Executive locking stock | Unknown |
| Li Mei | 92,494 | 0 | 30,801 | 123,205 | Executive locking stock | September 30,2018 |
| Total | 92,494 | 0 | 132,126 | 224,530 | -- | -- |
II.Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
| Total number of common shareholders at the end of the reporting period | 61,104 | Total number of preferred shareholders that had restored the voting right at the end of the reporting period (if any) (note 8) | 0 | |||||||
| Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||
| Shareholders | Nature of shareholder | Proportion of shares held（%） | Number of shares held at period -end | Changes in reporting period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||
| State of share | Amount | |||||||||
| Guangdong Communication Group | State-owned legal person | 24.55% | 513,382,595 | 410,002,853 | 103,379,742 | |||||
| Co.,Ltd | |||||||||
| Guangdong Highway Construction Co., Ltd, | State-owned legal person | 22.30% | 466,325,020 | 466,325,020 | |||||
| Yadong Fuxing Yalian Investment Co., Ltd. | Domestic non State-owned Legal person | 9.68% | 202,429,149 | 202,429,149 | Pledge | 156,652,500 | |||
| Tibet Yingyue Investment Management Co., Ltd. | Domestic non State-owned Legal person | 4.84% | 101,214,574 | 101,214,574 | |||||
| Guangdong Expressway Co., Ltd. | State-owned legal person | 2.53% | 52,937,491 | 52,937,491 | |||||
| Guangfa Securities Co., Ltd. | Domestic non State-owned Legal person | 1.45% | 30,364,372 | 30,364,372 | |||||
| Feng Wuchu | Domestic natural person shares | 1.08% | 22,593,729 | 1175773 | |||||
| Agricultural Bank of China－Jingshun Great Wall Energy Infrastructure Mixed Securities Investment Fund | Domestic non State-owned Legal person | 0.69% | 14,381,528 | 7403434 | |||||
| Xinyue Co., Ltd. | Foreign legal person | 0.63% | 13,201,086 | ||||||
| PRUSIK UMBRELLA UCITS FUND PLC | Foreign legal person | 0.62% | 12,999,871 | 1000000 | |||||
| Explanation on associated relationship or concerted action of the above shareholders | Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway Construction Co., Ltd, Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is relationship between other shareholders and whether they are persons taking concerted action specified in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed Companies. | ||||||||
| Shareholding of top 10 shareholders of unrestricted shares | |||||||||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | |||||||
| Share type | Quantity | ||||||||
| Guangdong Communication Group Co.,Ltd | 103,379,742 | RMB Common shares | 103,379,742 | ||||||
| Feng Wuchu | 22,593,729 | RMB Common shares | 20,686,390 | ||||||
| Foreign shares | 1,907,339 | ||||||||
| placed in domestic exchange | |||
| Agricultural Bank of China－Jingshun Great Wall Energy Infrastructure Mixed Securities Investment Fund | 14,381,528 | RMB Common shares | 14,381,528 |
| Xinyue Co., Ltd. | 13,201,086 | Foreign shares placed in domestic exchange | 13,201,086 |
| PRUSIK UMBRELLA UCITS FUND PLC | 12,999,871 | Foreign shares placed in domestic exchange | 12,999,871 |
| MATTHEWS CHINA DIVIDEND FUND | 11,565,121 | Foreign shares placed in domestic exchange | 11,565,121 |
| Khazanah Nasional Berhad－self fund | 10,522,779 | Foreign shares placed in domestic exchange | 10,522,779 |
| UBS AG LONDON BRANCH | 9,129,156 | Foreign shares placed in domestic exchange | 9,129,156 |
| Guotai Junan securities co., Ltd. | 7,600,000 | RMB Common shares | 7,600,000 |
| Yongan Guofu Asset Management Co., Ltd.－Yongan Guofu－Yongfu No.10 Private Securities Investment Fund | 7,255,301 | RMB Common shares | 7,255,301 |
| Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted negotiable shares and that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholders | Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway Construction Co., Ltd, Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is relationship between other shareholders and whether they are persons taking concerted action specified in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed Companies. | ||
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controllerChange of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable√Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specificinformation please refer to the 2017 Annual Report
II. Change in shares held by directors, supervisors and senior executives
√ Appicable □Not applicable
| Name | Positions | Types | Date | Reason |
| Li Mei | Supervisor | Dimission | January 6,2018 | Resignation |
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual reportNo
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB1. Consolidated balance sheet
Prepared by:：Guangdong Provincial Expressway Development Co., Ltd.
In RMB
| Items | At the end of term | Beginning of term |
| Current asset： | ||
| Monetary fund | 1,821,466,139.37 | 2,363,042,700.42 |
| Settlement provision | ||
| Outgoing call loan | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 94,111,175.70 | 92,642,625.45 |
| Prepayments | 1,734,012.97 | 4,451,901.75 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Interest receivable | ||
| Dividend receivable | 54,521,442.76 | |
| Other account receivable | 123,275,981.57 | 15,415,512.07 |
| Items | At the end of term | Beginning of term |
| Repurchasing of financial assets | ||
| Inventories | 139,076.49 | |
| Assets held for sales | ||
| Non-current asset due in 1 year | 51,745.32 | 55,669.14 |
| Other current asset | 921,856.82 | 76,576.08 |
| Total of current assets | 2,096,221,431.00 | 2,475,684,984.91 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Disposable financial asset | 1,659,608,196.77 | 1,751,357,624.93 |
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 3,166,390,849.09 | 3,047,275,000.00 |
| Property investment | 2,523,650.98 | 2,755,757.68 |
| Fixed assets | 7,945,714,512.39 | 8,505,434,890.71 |
| Construction in progress | 629,469,949.60 | 356,062,655.95 |
| Engineering material | 1,549,556.00 | 1,549,556.00 |
| Fixed asset disposal | 99,127.90 | |
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | 5,677,752.19 | 7,096,435.17 |
| R & D petrol | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 37,107.43 | 92,768.83 |
| Differed income tax asset | 281,196,704.39 | 335,299,025.28 |
| Other non-current asset | 79,494,345.43 | 40,706,394.26 |
| Total of non-current assets | 13,771,761,752.17 | 14,047,630,108.81 |
| Total of assets | 15,867,983,183.17 | 16,523,315,093.72 |
| Current liabilities | ||
| Short-term loans | ||
| Loan from Central Bank | ||
| Deposit received and hold for others | ||
| Call loan received |
| Items | At the end of term | Beginning of term |
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Note payable | ||
| Account payable | 185,313,470.18 | 266,934,026.99 |
| Advance payment | 13,605,059.97 | 14,856,113.90 |
| Selling of repurchased financial assets | ||
| Fees and commissions receivable | ||
| Employees’ wage payable | 15,529,808.87 | 11,334,182.16 |
| Tax payable | 122,832,730.78 | 428,647,394.29 |
| Interest payable | 9,332,172.79 | 8,494,355.93 |
| Dividend payable | 43,193,409.32 | 26,840,792.20 |
| Other account payable | 255,598,874.65 | 86,663,237.94 |
| Reinsurance fee payable | ||
| Insurance contract provision | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 1,583,780,000.00 | 1,218,610,000.00 |
| Other current liability | 689,978.75 | |
| Total of current liability | 2,229,875,505.31 | 2,062,380,103.41 |
| Non-current liabilities： | ||
| Long-term loan | 4,391,170,000.00 | 4,744,170,000.00 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | 2,022,210.11 | 2,022,210.11 |
| Long-term payable employees’s remuneration | ||
| Special payable | ||
| Expected liabilities | ||
| Deferred income | ||
| Deferred income tax liability | 217,720,054.84 | 260,632,098.75 |
| Items | At the end of term | Beginning of term |
| Other non-current liabilities | ||
| Total non-current liabilities | 4,610,912,264.95 | 5,006,824,308.86 |
| Total of liability | 6,840,787,770.26 | 7,069,204,412.27 |
| Owners’ equity | ||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 2,514,016,125.31 | 2,510,069,749.76 |
| Less：Shares in stock | ||
| Other comprehensive income | 253,468,274.62 | 327,263,824.17 |
| Special reserves | ||
| Surplus reserves | 544,821,130.03 | 544,821,130.03 |
| Common risk provision | ||
| Undistributed profit | 3,271,164,635.71 | 3,550,110,288.49 |
| Total of owner’s equity belong to the parent company | 8,674,276,291.67 | 9,023,071,118.45 |
| Minority shareholders’ equity | 352,919,121.24 | 431,039,563.00 |
| Total of owners’ equity | 9,027,195,412.91 | 9,454,110,681.45 |
| Total of liabilities and owners’ equity | 15,867,983,183.17 | 16,523,315,093.72 |
Legal Representative:Zheng RenfaGeneral Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
2.Parent Company Balance Sheet
In RMB
| Items | At the end of term | Beginning of term |
| Current asset： | ||
| Monetary fund | 1,708,673,405.68 | 2,130,475,892.67 |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 18,091,636.66 | 19,001,899.29 |
| Prepayments | 764,205.44 | 1,520,014.23 |
| Interest receivable | 35,705,395.50 | 2,070,385.95 |
| Dividend receivable | 189,521,442.76 | 10,000,000.00 |
| Other account receivable | 171,173,507.07 | 5,298,202.17 |
| Inventories | ||
| Assets held for sales | ||
| Non-current asset due in 1 year | 80,000,000.00 | 80,000,000.00 |
| Other current asset | ||
| Total of current assets | 2,203,929,593.11 | 2,248,366,394.31 |
| Non-current assets： | ||
| Disposable financial asset | 1,659,608,196.77 | 1,751,357,624.93 |
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 8,336,053,068.75 | 8,216,937,219.66 |
| Property investment | 2,271,512.73 | 2,503,619.43 |
| Fixed assets | 5,516,223,107.41 | 5,784,192,105.58 |
| Construction in progress | 627,266,163.60 | 353,858,869.95 |
| Engineering material | ||
| Fixed asset disposal | ||
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | 2,220,339.19 | 2,856,323.67 |
| Items | At the end of term | Beginning of term |
| R & D petrol | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Differed income tax asset | 280,995,263.90 | 335,050,091.31 |
| Other non-current asset | 866,288,609.57 | 827,775,329.66 |
| Total of non-current assets | 17,290,926,261.92 | 17,274,531,184.19 |
| Total of assets | 19,494,855,855.03 | 19,522,897,578.50 |
| Current liabilities | ||
| Short-term loans | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Note payable | ||
| Account payable | 148,300,692.93 | 200,070,986.17 |
| Advance payment | ||
| Employees’ wage payable | 4,267,948.00 | 5,419,848.48 |
| Tax payable | 6,843,982.81 | 12,893,797.03 |
| Interest payable | 8,793,589.48 | 7,901,914.26 |
| Dividend payable | 18,193,409.32 | 14,340,792.20 |
| Other account payable | 4,671,807,377.66 | 4,481,086,033.30 |
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 1,333,780,000.00 | 968,610,000.00 |
| Other current liability | 575,976,776.28 | 644,691,748.64 |
| Total of current liability | 6,767,963,776.48 | 6,335,015,120.08 |
| Non-current liabilities： | ||
| Long-term loan | 4,192,170,000.00 | 4,545,170,000.00 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | 2,022,210.11 | 2,022,210.11 |
| Employees’ wage payable | ||
| Special payable | ||
| Expected liabilities |
| Items | At the end of term | Beginning of term |
| Deferred income | ||
| Deferred income tax liability | 85,868,054.56 | 108,805,411.60 |
| Other non-current liabilities | ||
| Total of Non-current liabilities | 4,280,060,264.67 | 4,655,997,621.71 |
| Total of liability | 11,048,024,041.15 | 10,991,012,741.79 |
| Owners’ equity | ||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 |
| Other equity instrument | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 2,925,904,356.93 | 2,921,957,981.38 |
| Less：Shares in stock | ||
| Other comprehensive income | 253,468,274.62 | 327,263,824.17 |
| Special reserves | ||
| Surplus reserves | 528,976,846.38 | 528,976,846.38 |
| Undistributed profit | 2,647,676,209.95 | 2,662,880,058.78 |
| Total of owners’ equity | 8,446,831,813.88 | 8,531,884,836.71 |
| Total of liabilities and owners’ equity | 19,494,855,855.03 | 19,522,897,578.50 |
Legal Representative:Zheng RenfaGeneral Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang3.Consolidated Income statement
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 1,535,864,145.14 | 1,440,222,563.74 |
| Incl：Business income | 1,535,864,145.14 | 1,440,222,563.74 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received |
| Items | Report period | Same period of the previous year |
| II. Total business cost | 728,906,640.43 | 752,280,475.16 |
| Incl：Business cost | 533,736,566.35 | 533,689,845.16 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Insurance policy dividend paid | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 6,853,114.99 | 6,895,775.06 |
| Sales expense | ||
| Administrative expense | 75,594,633.97 | 77,693,914.84 |
| Financial expenses | 112,780,215.47 | 133,804,359.02 |
| Asset impairment loss | -57,890.35 | 196,581.08 |
| Add：Gains from change of fir value （“-”for loss） | ||
| Investment gain（“-”for loss） | 259,358,302.20 | 223,430,364.44 |
| Incl: investment gains from affiliates | 216,777,157.34 | 199,376,107.62 |
| Gains from currency exchange（“-”for loss） | ||
| Assets disposal income | 44,860,186.67 | |
| Other income | ||
| III. Operational profit（“-”for loss） | 1,111,175,993.58 | 911,372,453.02 |
| Add ：Non-operational income | 2,687,560.58 | 62,299,078.58 |
| Less：Non business expenses | 2,007,967.43 | 3,099,474.26 |
| IV.Total profit(“-”for loss) | 1,111,855,586.73 | 970,572,057.34 |
| Less：Income tax expenses | 213,221,718.85 | -19,940,081.98 |
| V. Net profit | 898,633,867.88 | 990,512,139.32 |
| 1.Net continuing operating profit | 898,633,867.88 | 990,512,139.32 |
| 2.Termination of operating net profit | ||
| Net profit attributable to the owners of parent company | 779,002,246.98 | 892,848,012.53 |
| Minority shareholders’ equity | 119,631,620.90 | 97,664,126.79 |
| VI. Other comprehensive income | -73,795,549.55 | -75,869,719.44 |
| Items | Report period | Same period of the previous year |
| Net of profit of other comprehensive income attributable to owners of the parent company. | -73,795,549.55 | -75,869,719.44 |
| （I）Other comprehensive income 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. | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | -73,795,549.55 | -75,869,719.44 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | -4,983,478.43 | |
| 2.Gains and losses from changes in fair value available for sale financial assets | -68,812,071.12 | -75,869,719.44 |
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | ||
| 6.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 824,838,318.33 | 914,642,419.88 |
| Total comprehensive income attributable to the owner of the parent company | 705,206,697.43 | 816,978,293.09 |
| Total comprehensive income attributable minority shareholders | 119,631,620.90 | 97,664,126.79 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.37 | 0.43 |
| Items | Report period | Same period of the previous year |
| (II)Diluted earnings per share | 0.37 | 0.43 |
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 Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang4. Income statement of the Parent Company
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 675,894,267.74 | 38,224,276.41 |
| Incl：Business cost | 310,310,687.32 | 232,106.70 |
| Business tax and surcharge | 3,493,775.90 | 45,569.27 |
| Sales expense | ||
| Administrative expense | 42,233,003.03 | 26,557,947.35 |
| Financial expenses | 104,206,424.94 | 66,857,722.21 |
| Asset impairment loss | ||
| Add：Gains from change of fir value （“-”for loss） | ||
| Investment gain（“-”for loss） | 880,579,568.71 | 930,734,790.73 |
| Incl: investment gains from affiliates | 216,777,157.34 | 199,376,107.62 |
| Assets disposal income | 138,427.18 | |
| Other income | ||
| II. Operational profit（“-”for loss） | 1,096,368,372.44 | 875,265,721.61 |
| Add ：Non-operational income | 916,331.99 | 73,878.42 |
| Less：Non business expenses | 485,826.09 | |
| III.Total profit(“-”for loss) | 1,096,798,878.34 | 875,339,600.03 |
| Less：Income tax expenses | 54,054,827.41 | -220,270,567.14 |
| IV. Net profit（“-”for net loss） | 1,042,744,050.93 | 1,095,610,167.17 |
| 1.Net continuing operating profit | 1,042,744,050.93 | 1,095,610,167.17 |
| 2.Termination of operating net profit |
| Items | Report period | Same period of the previous year |
| 5. After-tax net amount of other misc. incomes | -73,795,549.55 | -75,869,719.44 |
| （I）Other comprehensive income 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. | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | -73,795,549.55 | -75,869,719.44 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | -4,983,478.43 | |
| 2.Gains and losses from changes in fair value available for sale financial assets | -68,812,071.12 | -75,869,719.44 |
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | ||
| 6.Other | ||
| VI. Total comprehensive income | 968,948,501.38 | 1,019,740,447.73 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
Legal Representative:Zheng RenfaGeneral Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
5. Consolidated Cash flow statement
In RMB
| Items | Report period | Same period of the previous year |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 1,567,523,150.21 | 1,437,384,420.88 |
| 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 | ||
| Net increase of trade financial asset disposal | ||
| Cash received as interest, processing fee and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Tax returned | ||
| Other cash received from business operation | 39,446,329.98 | 60,818,976.35 |
| Sub-total of cash inflow | 1,606,969,480.19 | 1,498,203,397.23 |
| Cash paid for purchasing of merchandise and services | 96,705,259.73 | 65,216,674.54 |
| Net increase of client trade and advance | ||
| Net increase of savings n central bank and brother company | ||
| Cash paid for original contract claim | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend |
| Items | Report period | Same period of the previous year |
| Cash paid to staffs or paid for staffs | 138,291,293.37 | 132,850,018.53 |
| Taxes paid | 532,821,606.22 | 241,335,946.56 |
| Other cash paid for business activities | 21,871,732.77 | 36,408,522.23 |
| Sub-total of cash outflow from business activities | 789,689,892.09 | 475,811,161.86 |
| Cash flow generated by business operation, net | 817,279,588.10 | 1,022,392,235.37 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 84,683,907.47 | 137,278,324.19 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 100,573,025.00 | 6,250.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 59,995,667.68 | |
| Sub-total of cash inflow due to investment activities | 185,256,932.47 | 197,280,241.87 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 323,881,627.90 | 200,612,133.89 |
| Cash paid as investment | ||
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | ||
| Sub-total of cash outflow due to investment activities | 323,881,627.90 | 200,612,133.89 |
| Net cash flow generated by investment | -138,624,695.43 | -3,331,892.02 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Incl: Cash received as investment from minor shareholders | ||
| Cash received as loans | 800,000,000.00 | 499,000,000.00 |
| Items | Report period | Same period of the previous year |
| Cash received from bond placing | ||
| Other financing –related ash received | 2,500,000.00 | |
| Sub-total of cash inflow from financing activities | 802,500,000.00 | 499,000,000.00 |
| Cash to repay debts | 637,830,000.00 | 678,100,000.00 |
| Cash paid as dividend, profit, or interests | 1,382,633,569.09 | 848,413,171.72 |
| Incl: Dividend and profit paid by subsidiaries to minor shareholders | 185,252,062.66 | |
| Other cash paid for financing activities | ||
| Sub-total of cash outflow due to financing activities | 2,020,463,569.09 | 1,526,513,171.72 |
| Net cash flow generated by financing | -1,217,963,569.09 | -1,027,513,171.72 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -2,267,884.63 | 1,447,084.51 |
| V.Net increase of cash and cash equivalents | -541,576,561.05 | -7,005,743.86 |
| Add: balance of cash and cash equivalents at the beginning of term | 2,363,042,700.42 | 2,603,279,644.25 |
| VI ..Balance of cash and cash equivalents at the end of term | 1,821,466,139.37 | 2,596,273,900.39 |
Legal Representative:Zheng RenfaGeneral Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang6. Cash Flow Statement of the Parent Company
In RMB
| Items | Amount in this period | Amount in last period |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 661,994,572.24 | 3,621,896.95 |
| Tax returned |
| Items | Amount in this period | Amount in last period |
| Other cash received from business operation | 46,329,459.08 | 616,912,385.89 |
| Sub-total of cash inflow | 708,324,031.32 | 620,534,282.84 |
| Cash paid for purchasing of merchandise and services | 39,912,969.27 | |
| Cash paid to staffs or paid for staffs | 55,205,264.99 | 16,270,436.06 |
| Taxes paid | 25,922,199.03 | 550,122.41 |
| Other cash paid for business activities | 402,529,977.62 | 27,384,975.76 |
| Sub-total of cash outflow from business activities | 523,570,410.91 | 44,205,534.23 |
| Cash flow generated by business operation, net | 184,753,620.41 | 576,328,748.61 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 580,905,173.98 | 718,997,791.68 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 195,540.00 | |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 432,250.00 | 70,491,251.01 |
| Sub-total of cash inflow due to investment activities | 581,532,963.98 | 789,489,042.69 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 312,406,878.23 | |
| Cash paid as investment | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 10,000,000.00 | |
| Sub-total of cash outflow due to investment activities | 312,406,878.23 | 10,000,000.00 |
| Net cash flow generated by investment | 269,126,085.75 | 779,489,042.69 |
| III.Cash flow generated by financing |
| Items | Amount in this period | Amount in last period |
| Cash received as investment | ||
| Cash received as loans | 400,000,000.00 | |
| Cash received from bond placing | ||
| Other financing –related ash received | 293,500,000.00 | |
| Sub-total of cash inflow from financing activities | 693,500,000.00 | |
| Cash to repay debts | 50,100,000.00 | 50,100,000.00 |
| Cash paid as dividend, profit, or interests | 1,142,614,308.52 | 775,861,281.94 |
| Other cash paid for financing activities | 374,200,000.00 | |
| Sub-total of cash outflow due to financing activities | 1,566,914,308.52 | 825,961,281.94 |
| Net cash flow generated by financing | -873,414,308.52 | -825,961,281.94 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -2,267,884.63 | 1,447,084.51 |
| V.Net increase of cash and cash equivalents | -421,802,486.99 | 531,303,593.87 |
| Add: balance of cash and cash equivalents at the beginning of term | 2,130,475,892.67 | 1,795,455,123.88 |
| VI ..Balance of cash and cash equivalents at the end of term | 1,708,673,405.68 | 2,326,758,717.75 |
Legal Representative:Zheng RenfaGeneral Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | Amount in this period | ||||||||||||
| 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 | Attributable profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,510,069,749.76 | 327,263,824.17 | 544,821,130.03 | 3,550,110,288.49 | 431,039,563.00 | 9,454,110,681.45 | ||||||
| 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 | 2,510,069,749.76 | 327,263,824.17 | 544,821,130.03 | 3,550,110,288.49 | 431,039,563.00 | 9,454,110,681.45 | ||||||
| III.Changed in the current year | 3,946,375.55 | -73,795,549.55 | -278,945,652.78 | -78,120,441.76 | -426,915,268.54 | ||||||||
| （1）Total comprehensive income | -73,795,549.55 | 779,002,246.98 | 119,631,620.90 | 824,838,318.33 | |||||||||
| （II）Investment or | |||||||||||||
| Items | Amount in this period | ||||||||||||
| 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 | Attributable profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| 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 | |||||||||||||
| 4．Other | |||||||||||||
| （III）Profit allotment | -1,057,947,899.76 | -197,752,062.66 | -1,255,699,962.42 | ||||||||||
| 1.Providing of surplus reserves | |||||||||||||
| 2.Providing of common risk provisions | |||||||||||||
| 3．Allotment to the owners (or shareholders) | -1,057,947,899.76 | -197,752,062.66 | -1,255,699,962.42 | ||||||||||
| 4．Other | |||||||||||||
| (IV) Internal transferring of | |||||||||||||
| Items | Amount in this period | ||||||||||||
| 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 | Attributable profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| 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. Other | |||||||||||||
| (V). Special reserves | |||||||||||||
| 1. Provided this year | |||||||||||||
| 2．Used this term | |||||||||||||
| （VI）Other | 3,946,375.55 | 3,946,375.55 | |||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,514,016,125.31 | 253,468,274.62 | 544,821,130.03 | 3,271,164,635.71 | 352,919,121.24 | 9,027,195,412.91 | ||||||
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||||
| 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 | Attributable profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,508,408,342.99 | 402,285,954.24 | 366,956,549.89 | 2,920,563,328.27 | 554,495,287.40 | 8,843,515,588.79 | ||||||
| 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 | 2,508,408,342.99 | 402,285,954.24 | 366,956,549.89 | 2,920,563,328.27 | 554,495,287.40 | 8,843,515,588.79 | ||||||
| III.Changed in the current year | 1,661,406.77 | -75,022,130.07 | 177,864,580.14 | 629,546,960.22 | -123,455,724.40 | 610,595,092.66 | |||||||
| （1）Total comprehensive income | -75,022,130.07 | 1,509,922,398.70 | 200,301,288.72 | 1,635,201,557.35 | |||||||||
| Items | Amount in last year | ||||||||||||
| 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 | Attributable profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| （II）Investment or decreasing of capital by owners | |||||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Allotment to the owners (or shareholders) | |||||||||||||
| 4．Other | |||||||||||||
| (IV) Internal transferring of owners’ equity | 177,864,580.14 | -880,375,438.48 | -323,757,013.12 | -1,026,267,871.46 | |||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | 177,864,580.14 | -177,864,580.14 | |||||||||||
| 2. Capitalizing of | |||||||||||||
| Items | Amount in last year | ||||||||||||
| 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 | Attributable profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| surplus reserves (or to capital shares) | |||||||||||||
| 3．Making up losses by surplus reserves. | -702,510,858.34 | -323,757,013.12 | -1,026,267,871.46 | ||||||||||
| 4. Other | |||||||||||||
| (VI )Special reserves | |||||||||||||
| 1. Provided this year | |||||||||||||
| 2．Used this term | |||||||||||||
| （VII）Other | |||||||||||||
| IV. Balance at the end of this term | |||||||||||||
| (V) Special reserves | |||||||||||||
| 1. Provided this year | |||||||||||||
| 2．Used this term | |||||||||||||
| （VI）Other | 1,661,406.77 | 1,661,406.77 | |||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,510,069,749.76 | 327,263,824.17 | 544,821,130.03 | 3,550,110,288.49 | 431,039,563.00 | 9,454,110,681.45 | ||||||
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
| Items | Amount in this period | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Attributable profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,921,957,981.38 | 327,263,824.17 | 528,976,846.38 | 2,662,880,058.78 | 8,531,884,836.71 | |||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 2,090,806,126.00 | 2,921,957,981.38 | 327,263,824.17 | 528,976,846.38 | 2,662,880,058.78 | 8,531,884,836.71 | |||||
| III.Changed in the current year | 3,946,375.55 | -73,795,549.55 | -15,203,848.83 | -85,053,022.83 | |||||||
| （I）Total comprehensive income | -73,795,549.55 | 1,042,744,050.93 | 968,948,501.38 | ||||||||
| (II) Investment or decreasing of capital by owners | |||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||
| Items | Amount in this period | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Attributable profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | |||||||||||
| 4．Other | |||||||||||
| （III）Profit allotment | -1,057,947,899.76 | -1,057,947,899.76 | |||||||||
| 1.Providing of surplus reserves | |||||||||||
| 2．Allotment to the owners (or shareholders) | -1,057,947,899.76 | -1,057,947,899.76 | |||||||||
| 3．Other | |||||||||||
| (IV)Internal transferring of owners’ equity | |||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||
| 2. Capitalizing of surplus reserves (or to | |||||||||||
| Items | Amount in this period | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Attributable profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| capital shares) | |||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||
| 4. Other | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Provided this year | |||||||||||
| 2．Used this term | |||||||||||
| （VI）Other | 3,946,375.55 | 3,946,375.55 | |||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,925,904,356.93 | 253,468,274.62 | 528,976,846.38 | 2,647,676,209.95 | 8,446,831,813.88 | |||||
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Attributable profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last | 2,090,806,126.00 | 3,359,791,693.12 | 402,285,954.24 | 351,112,266.24 | 1,764,609,695.85 | 7,968,605,735.45 | |||||
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Attributable profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| year | |||||||||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 2,090,806,126.00 | 3,359,791,693.12 | 402,285,954.24 | 351,112,266.24 | 1,764,609,695.85 | 7,968,605,735.45 | |||||
| III.Changed in the current year | -437,833,711.74 | -75,022,130.07 | 177,864,580.14 | 898,270,362.93 | 563,279,101.26 | ||||||
| （I）Total comprehensive income | -75,022,130.07 | 1,778,645,801.41 | 1,703,623,671.34 | ||||||||
| (II) Investment or decreasing of capital by owners | -437,833,711.74 | -437,833,711.74 | |||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ | |||||||||||
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Attributable profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| equity | |||||||||||
| 4．Other | -437,833,711.74 | -437,833,711.74 | |||||||||
| （III）Profit allotment | 177,864,580.14 | -880,375,438.48 | -702,510,858.34 | ||||||||
| 1.Providing of surplus reserves | 177,864,580.14 | -177,864,580.14 | |||||||||
| 2．Allotment to the owners (or shareholders) | -702,510,858.34 | -702,510,858.34 | |||||||||
| 3．Other | |||||||||||
| (IV)Internal transferring of owners’ equity | |||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||
| 4. Other | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Provided this year | |||||||||||
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Attributable profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| 2．Used this term | |||||||||||
| （VI）Other | |||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,921,957,981.38 | 327,263,824.17 | 528,976,846.38 | 2,662,880,058.78 | 8,531,884,836.71 | |||||
III.Company Profile(1)HistoryThe 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., 418.2136 million yuan, was converted into 155.025 million shares. GuangdongExpressway Co. invested cash of 115 million yuan to subscribe for 35.9375 million shares. Other legal personsinvested cash of 286.992 million yuan to subscribe for 89.685 million shares. Staff of the Company invested87.008 million yuan to subscribe for 27.19 million shares. The total is 307.8375 million shares.
．Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned 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 3.8 yuan) with the par value of each share being 1 yuan during June to July1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of
China with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested jointstock company limited.
．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following
manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.487 document, the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of
“payable in full on application, pro-rate placing and subject to refund”with the par value of each share being
RMB 1 in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant
to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that 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 capitalized
capital 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 document
Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at the
shareholders' 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)Organization structure and the actual controller of the Company
As of June 30, 2018，Registration capital:RMB2,090,806,126，Legal representative：Zheng Renfa,Registration
place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32, Zhujiang East Road,
Zhujiang New City, Tihe Disrtict , Guangzhou，The company has set up: Investment Development Dept, Security
Affairs Department, Management Department, Financial Management Department, Base construction Department,
Audit and Supervise Department, Affairs Department, Personnel Department , Party Work Department, Lawaffairs Department , Project Office and Labour union etc.
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: DengXiaohua. Date of establishment: June 23, 2000. As of June 30, 2018,Registered capital: RMB 26.8 billion. It is a
solely state-owned limited company. Business scope：equity management, organization of asset reorganization and
optimized allocation, raising funds by means including mortgage, transfer of property rights and joint 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.
（3）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Management fees andmaintenance of roads, bridges, and car rescue, maintenance, cleaning, concurrently with the company's business supporting motor transport, warehousing operations.The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway, 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.,Guangdong GuangleExpressway Co.,Ltd. and Guoyuan Securities Co., Ltd.
（4）Scope of consolidated financial statements
The company's 2018(Jan-June) annual consolidated subsidiaries of total 6 companies, The scope of consolidatedfinancial statements is consistent with the previous period. Refer to Notes X(8), Notes of financialstatements ,Change of consolidation scope and NotesX(9), Notes of financial statements, Equity in other entitiesfor more details.
（5）Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group on August27,2018.
IV. Basis for the preparation of financial statements1.Preparation basisThe company prepares the financial statements on the basis of a continuous operation, the actual transactions,
“Accounting Standards for Enterprises – Basic Standards”, other accounting standards & related regulations.
Furthermore, all the materials of financial statements of the company meet the relevant disclosure requirements of
financial statements and notes on the “Editing and Reporting Rules Regarding Information Disclosure forCompanies Publicly Issuing Securities No. 15 – General Regulations for Financial Reporting (revised in 2014)
by China Securities Regulatory Commission.2.ContinuationThere will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.V. Significant Accounting Policies and Accounting EstimatesSpecific accounting policies and accounting estimates are indicated as follows:
Nil1. Statement of Compliance with the Accounting Standards for Business EnterprisesThe financial statements prepared by the Company comply with the requirements of corporate accounting
standards. They truly and completely reflect the financial situations, operating results, equity changes and cashflow, and other relevant information of the company.2.Fiscal YearThe Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the
fiscal year.
3.Operating cycleAn operating cycle for the Company is 12 months, which is also the classification criteria for the liquidity of its
assets and liabilities.4.Standard currency for bookkeepingThe Company takes RMB as the standard currency for bookkeeping.5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control
1.Business Combinations under the Same ControlThe assets and liabilities acquired by the company in the business combination shall be measured as per the
obtained book value of owner’s equity of the combined party in the consolidated financial statements. As for the
balance between the carrying amount of the net assets obtained by the combining party & the carrying amount ofthe consideration paid by it (or the total par value of the shares issued), the additional paid-in capital shall beadjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.The direct costs for the business combination of the company, including the expenses for audit, assessment andlegal services, shall be recorded into the profits & losses at the current period.The handling fees, commissions & other expenses for the issuance of equity securities for the businesscombination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retainedearnings shall be offset.Where the accounting policies adopted by the combined parties are different from those adopted by the company,the company shall adjust them on the combining date according to the accounting policy it adopts, and shall,pursuant to the Accounting Standards for Enterprises, recognize them on the basis of such adjustments.2. Business Combinations not under the Same Control
The assets paid as the consideration for the business combination & the liabilities assumed on the acquisition dateshall be measured in accordance with the fair value. The difference between the fair value & its carrying amountshall be recorded into the profits & losses at the current period.The company will distribute the combination costs on the acquisition date.The company shall recognize the positive balance between the combination costs & the fair value of theidentifiable net assets it obtains from the acquire as Goodwill while it shall record the negative balance betweenthe combination costs & the fair value of the identifiable net assets it obtains from the acquire into the profits &losses of the current period.As for the assets other than intangible assets acquired from the acquire in a business combination (not limited tothe assets which have been recognized by the acquire), if the economic benefits brought by them are likely to flowinto the enterprise and their fair values can be measured reliably, they shall be separately recognized and measuredin light of their fair values. As for any intangible asset acquired in a combination, if its fair value can be measuredreliably, it shall be separately recognized as an intangible asset and shall measured in light of its fair value. As forthe liabilities other than contingent liabilities acquired from the acquire, if the performances of the relevantobligations are likely to result in any out-flow of economic benefits from the enterprise, and their fair values canbe measured reliably, they shall be separately recognized and measured in light of their fair values. As for thecontingent liabilities of the acquire obtained in a combination, if their fair values can be measured reliably, theyshall be separately recognized as liabilities and shall be measured in light of their fair values.6.Methods for Preparing the Consolidated Financial Statements
The scope of the consolidated financial statements will be recognized on the basis of controlling. All thesubsidiaries will be included into the consolidated financial statements.The accounting policies & accounting periods adopted by all the subsidiaries that have been included into thescope of the consolidated financial statements should be consistent with those adopted by the company. If theaccounting policies & accounting periods adopted by the subsidiaries are different from those adopted by thecompany, the company shall make necessary adjustments according to the accounting policies & accountingperiods it adopts when preparing the consolidated financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity method, the companyshall prepare the consolidated financial statements based on the financial statements of the company & itssubsidiaries, and other related documents.The influences of the internal transactions between the company & its subsidiaries, and its subsidiaries themselveson the consolidated balance sheet, consolidated profit statement, consolidated cash flow statement &
consolidated statement of changes in owner’s equity will be counteracted at the preparation of the consolidated
financial statements.
The portion of a subsidiary’s equity that is not attributable to the parent is treated as minority shareholders’interest and presented as “minority interest” in the consolidated balance sheet within owners’ equity. The
portion of net profits or losses of subsidiaries for the period attributable to minority interest is presented in the
consolidated income statement below the “net profit” line item as “minority interest”. In the consolidated
financial statements, when the amount of loss for the period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ portion of the opening balance of owners’ equity of the subsidiary,
the excess amount should be still allocated against minority interest.In the report period, If the subsidiary is added through the business combination under the same control, thebeginning balance of the consolidated balance sheet shall be adjusted. The incomes, expenses & profits of thesubsidiary incurred from the beginning of the current period to the end of the reporting period shall be includedinto the consolidated profit statement. The cash flow from the beginning of the current period to the end of thereporting period shall be included into the consolidated cash flow statement.For purchase of minority interests held by the minority shareholders of a subsidiary, when preparing theconsolidated financial statements, the difference between the long-term equity investment newly gained by buyingminority interests and the portion of net assets consistently calculated from the acquisition date (or theconsolidation date) pursuant to newly added shareholding percentage entitled by the subsidiary should be adjusted
to the owners’ equity (the capital reserve). If the capital reserve is not sufficient to absorb the difference, any
excess is adjusted against retained earnings.In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from thebeginning of the subsidiary to the disposal date shall be included into the consolidated profit statement. The cashflow from the beginning of the subsidiary to the disposal date shall be included into the consolidated cash flowstatement.
7.Joint venture arrangements classification and Co-operation accounting treatment
⑴A joint arrangement refers to an arrangement jointly controlled by two participants or above.，the joint venture
arrangements include co-operation and joint ventures.
(2)When the joint venture company for joint operations, confirm the following items and share common business
interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;（2）Confirm individual liabilities and shared liabilities held based on shareholdings;（3）Confirm the income from the sales revenue of co-operate business output（4）Confirm the income from the sales of the co-operate business output based on shareholdings;（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.⑶
When a company is a joint ventures, joint venture investment will be recognized as long-term equity investmentsand long-term equity investments are accounted for in accordance with the method of the Notes to Financial Statements.8.Recognition Standard of Cash & Cash EquivalentsThe company recognizes its cash in vault & the deposits that are ready for payment at any time as cash whenpreparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.Equity investment are not recognized as cash equivalents.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
For the company with non-functional currency business, the middle rate of the market exchange rate published by
People’s Bank of China on the date of occurrence of business are recorded as the functional currency, and the
balances of foreign currency shall be adjusted by the end of the month according to the middle rate of the market
exchange rate published by People’s Bank of China at the end of period. The differences between the recording
currency amount converted by the exchange rate at the end of period and the carrying currency amount are as
“Finance Costs – Exchange Gains and Losses” and recorded into the current profits or losses. The exchange
gains and losses related to borrowings on the fixed assets shall be made treatment according to the principles ofborrowing costs capitalization.
（2）Conversion of Foreign Financial statement
If overseas subsidiaries, cooperative enterprises, joint ventures, branches of the company adopt the differentfunctional recording currency and record the overseas business of the company into the financial statementsthrough the consolidated statements and the accounting by the equity method, the overseas financial statementsshall be translated as the recording functional currency. Before the translation, the company shall adjust theaccounting period and policy of overseas business in order to make the consistent adjustment, and translate theoverseas financial statements according to the financial statements of the preparation of corresponding currencyafter the accounting policy and period adjusted and as per the following methods:
① For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is adopted
as the translation exchange rate. For the owner’s equity, the shot exchange rate on the transaction date isadopted as the translation exchange rate, with the exception of “undistributed profits”.② The incomes and expenses in the income statement shall be translated at the spot exchange rate or the
approximate exchange rate on the transaction date.
③ The translation gap of financial statement of foreign currency shall be listed under the owner’s equity in the
consolidated balance sheet in the preparation of the consolidated financial statements.10.Financial tools
1. Categories of financial Tools
The Company divides the financial assets into four categories: financial assets measured at fair value andtheir variations are recognized as current gain/loss, including trade financial assets or financial liabilities andrecognized directly as financial assets measured at fair value and their variations are recognized as currentgain/loss; Investment hold till expiration; loans and account receivable; saleable financial assets .The companydivides the financial liabilities into two categories: financial liabilities measured at fair value and their variations
are recognized as current gain/loss; other financial liabilities.2. Recognition and measurement of financial tools(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thusadjust the gain/loss of fair value.
2. Recognition and measurement of financial tools(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thusadjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses is
recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when thedifference between the actual rate and face rate is minor) during the period of holding, and accounted asinvestment gains. Actual rate is recognized when obtained, and is not changed in the predictable holding period or
applicable shorter period.When disposed, the difference between the obtained price and book value is accounted as investment gains.
If the company sells or reclassifies large-amount due investments before the expired date (large amount refers tocomparing with the amount before the selling or reclassifying the investments), the company will reclassify therest of the investments as financial assets for sale, and in the current accounting period or within two completeaccounting years, no financial assets will be classified as holding due assets, except for the following situations:
the sale date or reclassification date is close to the expired date of the investment (such as three months before theexpired), and the change of interest rate has no significant influence on the fair value of the investment; after allthe initial principal is mostly recovered according to periodic payments or repay in advance regulated in thecontract, the rest part will be sold or reclassified; the sale and reclassification is caused by the independent eventswhich are uncontrollable and unexpected and will not happen any more.
(3) Account receivable
The receivable debts of selling goods or providing services, and the credits of other company hold by thecompany not including the debt which has price in active market, including accounts receivable, notes receivable,prepaid accounts, other receivables, long-term receivables, etc. The contract or agreement price charging frompurchaser should be taken as the initial confirmation amount; if it has the nature of financing, it should beconfirmed according its current value.When retrieved or disposed of, the difference between the actual received amount and the book value is accounted
as current gain/loss.(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) plus the related trade expenses is recognized as initial amount when obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment gains. Change of fair
value is accounted as capital reserves (other capital reserves) at the end of term.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
Meanwhile, the corresponding part of accumulated change of fair value accounted as owners’ equity istransferred into investment gain/loss.(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade expenses. Successive
measurement will be on the basis of amortized costs.3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is terminated ifalmost all risks and rewards attached to the asset have been transferred to the acceptor. If retain all the risks andrewards of ownership of financial assets, the financial assets can be confirmed.When determi ne whether the transfer of financial assets meet the conditions of confirmation of the above financialassets, the principle of substance being more important than form should be adopted. The transfer of financialassets can be divided into overall transfer and part transfer of financial assets. If the transfer of financial assetsmeet the conditions of terminating confirmation, the following the difference of the two amounts will be includedin the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally
accounted as owners’ equity (when the asset to be transposed is saleable financial asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book value of thetransferred financial assts, the difference between the confirmed part and the unconfirmed part (in this case, theservice assets retained should be deemed as the part of unconfirmed financial assets), should be amortized inaccordance with their relative fair value, and the difference between the following two amount should be includedcurrent profit and loss:
① Book value of the confirmed part;②All fair values of financial assets and financial liabilities are recognized with reference to the price in the active
market.If the transfer of financial assets does not meet the conditions of terminating confirmation, the financial assets
should be confirmed again, the prices received will recognized as financial liabilities.4.The conditions to stopping the financial liabilitiesThe obligation of financial liabilities are already cancelled which should be stopped confirming the financialliability or the part of it. Our company could stop confirming the currently financial liability and begin to confirmthe newly financial liability if the loaner made an agreement that they would assume the new way of financialliability which replace the current one, and make sure the newly financial liability is totally different from the oldone in contract with our company.Stop admitting the financial liability or a part of it, and at mean time we could admit the newly financial liability
which is in new insertions of contract as the newly financial liability if the current financial liability has beenrevised.Stop admitting the balance of value of financial liability and consideration (Including the roll-out of non-cashassets or financial liabilities) which could be consider as current profits and losses.Stop and continue admitting a part of value, and distribute the value of financial liability, if our companyrepurchased the part of financial liability. And the balance of value of which distributed to the part of stoppingadmitting and paid (Including the roll-out of non-cash assets or financial liabilities) which could be consider ascurrent profits and losses.
5.Recognition basis of financial assets and financial liabilities
All fair values of financial assets and financial liabilities are recognized with reference to the price in the active
market（Using valuation technique, etc）.
6. Impairment provision for financial assets
①Impairment provision for financial assets for sale:
If the fair value of financial assets for sale greatly drops at the end of the period, or after considering all therelevant factors and expecting decrease trend is non-temporary, the impairment should be confirmed, and the
accumulative loss formed by the decrease of fair value of owner’s equity originally included should be transferredout altogether and confirmed as impairment loss.
②Holding the impairment provision of expired investments:
The measurement of holding the impairment provision of expired investment will be according to the method ofthe measurement of impairment provision for receivables.
11.Accounts Receivable
（1）Accounts receivable with material specific amount and specific provisioned bad debt preparation.
| Judgment criteria or amount standard of material specific amount or amount criterial： | The accounts receivable whose single amount is over RMB 1 million & accounts for over 10% of the accounts receivable amount. |
| Provision method with material specific amount and provision of specific bad debt preparation： | Conduct the devalue test separately. Set up the bad debt reserve according to the shortfall of the present value of expected future cash flows against its carrying amount and record it into the profits & losses at the current period. |
(2)The accounts receivable of bad debt provisions made by credit risk Group
The basis for determining the combination of Credit risk：The accounts receivable whose single amount is
over RMB 1 million & accounts for over 10% of the accounts receivable amount. Conduct the devalue testseparately. Set up the bad debt reserve according to the shortfall of the present value of expected future cash flowsagainst its carrying amount and record it into the profits & losses at the current period.
In the Groups, adopting aging analysis method to withdraw bad debt provision
√ Applicable □ Not applicable
| Aging | Rate for receivables(%) | Rate for other receivables(%) |
| Within 1 year（Included 1 year） | 0.00% | 0.00% |
| 1－2 years | 10.00% | 10.00% |
| 2－3 years | 30.00% | 30.00% |
| 3－4 years | 50.00% | 50.00% |
| 4－5 years | 90.00% | 90.00% |
| Over 5 years | 100.00% | 100.00% |
Accounts on percentage basis in group：
□ applicable √not applicableAccounts on other basis in group：
√ Applicable □ Not applicable
Separately carry out the impairment test, prepare the bad debt according to the expected future cash flowpresent value below the balance of its book value, and take account of the current profit and loss.
(3)Account receivable with non-material specific amount but specific bad debt preparation
| Reason of individually withdrawing bad debt provision | The accounts receivable under 5 years of age which are not significant without any business connections any more. |
| Witharawal method for boad debt provision | Conduct the devalue test separately. Set up the bad debt reserve according to the shortfall of the present value of expected future cash flows against its carrying amount and record it into the profits & losses at the current period. |
12.InventoryWhether the Company needs to comply with the disclosure requirements for specific industrie
No
1.Investories class: The company’s stocks can be classified as: raw materials, inventory goods, low-value
consumables & other materials, etc.2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the
weighted averages method or the first-in first-out method.
3. Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method of Obsolete
Inventory Reserves:After taking stock at the end of the period,4. Inventory System:Adopts the Perpetual Inventory System
13. Divided as assets held for saleIn the presence of the following conditions are satisfied when non-current assets or a part of the company is classi
fied as held for sale:
(1) The components should be immediately sold under the current condition only according to the usual terms of
the parts sold.(2) The sale is highly probable, that is, the company has already made a resolution on a sale plan and obtained a
certain purchase commitment, which is expected to be completed within one year. Where the relevant regulationsrequire the approval of the relevant authority of the company or the regulatory authority before it can be sold, theapproval has been gained.The determined purchase commitment refers to the legally binding purchase agreement signed between thecompany and other parties. The agreement includes important terms such as transaction price, time andsufficiently severe penaltybreach of penalty, making the agreement unlikely to be significantly adjusted orcancelled.
14. Long-term equity investment(1) The Classification of Long-term Equity Investments
The long-term equity investments of the company should include the investments in the subsidiaries and theinvestments in cooperative enterprises and joint ventures.(2) The Recognition of Investment Cost
① For the business combination under common control and the combining party paying in cash, transferring
non-monetary assets, bearing debts or issuing the equity securities as the consideration, the initial investment costshall be recognized according to the shares of the book value in the consolidated financial statement of theultimate controlling party that acquired by the combined party on the combination date. The capital reserves shallbe adjusted for the difference between the initial investment cost of long-term equity investment and the bookvalue of the paid cash, the transferred non-monetary assets and the borne debts. The retained earnings shall beadjusted if the capital reserves are insufficient to offset.For the long-term equity investment after the business combination under common control realized step-by-step
through multiple transactions, the shares of the book value of the owner’s equity of the combined party shall be as
the initial investment cost in the individual financial statements and the consolidated financial statements as perthe shareholding proportion. The capital reserves shall be adjusted for the balance between the sums of the bookvalue of the equity investment of the combined party held on the combination date and the new investment costincreased on the combination date minus the initial investment cost of long-term equity investment. The retainedearnings shall be adjusted if the capital reserves are insufficient to offset.
②For the business combination under non-common control, the initial investment cost shall be recognized
according to the fair value of the merger consideration paid on the purchase date. For the long-term equityinvestment after the business combination under non-common control realized step-by-step through multipletransactions, the relevant accounting treatment should be respectively conducted for the individual financialstatement and the consolidated financial statements: 1) In the individual financial statements, the sum of the bookvalue of equity investment from the purchased party held before the purchase date and the new investment cost atthe purchase date shall be as the initial investment cost of the investment. Other comprehensive incomes related tothe equity of the purchased party held before the purchase date shall be transferred into the current investmentincomes in the disposal of the investment. 2) In the consolidated financial statements, the equity of the purchasedparty held before the purchase date should be measured again according to the fair value of the equity on thepurchase date, and the gap of the fair value and the book value should be recorded into the current investmentincomes. Other comprehensive incomes related to the equity of the purchased party held before the purchase dateshall be transferred into the current investment incomes on the purchase date.
③With the exception of the business combination:
The long-term equity investment acquired by the payment in cash should be as the investment cost as per theactual purchase payment. The investment costs include fees, taxes and other necessary expenses directly related tothe achieved long-term equity investment.The long-term equity investment acquired by the issuance of equity securities should be as the investment cost asper the fair value of the issued equity securities.The long-term equity investment acquired by the non-monetary assets exchange (the exchange with thecommercial substance) should be as the investment cost as per the fair value of the investment and the payabletaxes.For the long-term equity investment acquired by the debt reorganization, the creditors shall recognize the fairvalue of the enjoyed shares as the investment of the debtors.(3) Subsequent Measurement and Recognition Method of Profit and LossThe cost method shall be adopted to account the long-term equity investment controlled by the invested party andthe equity method shall be adopted to account the long-term equity investment with joint control or significantinfluence.(4) Recognition Criteria for the Invested Party with Joint Control or Significant InfluenceThe joint control on the economic activity appointed as per the contract shall exist when the major finance and theoperating decision related to the economic activity are agreed by the invested party sharing the control right,which shall be regarded as the joint control on the invested party implemented by other parties. The decisionpower to participate in the finance and operating decision on the enterprise, but without control or joint controlwith other parties to formulate these policies, shall be regarded as the significant influence on the invested partyimplemented by the investment enterprise.(5) Impairment Test Method and Withdrawing MethodFor the impairment test method and the withdrawing method of the long-term equity investment, please refer to
“Long-term Assets Impairment in Article 10 of Important Accounting Policies and Accounting Estimates 21 inNotes 5 of Financial Statements”.
15. Entrusted LoansThe entrusted loans shall be made bookkeeping according to the actually entrusted loan amount. The receivable
interests shall be withdrawn according to the interest rate stated in the entrusted loans.For the impairment test method and the impairment provision withdrawing method of the entrusted loans, please
refer to “Long-term Assets Impairment in Article 10 of Important Accounting Policies and Accounting Estimates21 in Notes 5 of Financial Statements”.
16..Investment Real EstatesThe measurement mode of investment property
The measurement by the cost methodDepreciation or amortization method
The term “Investment real estates” refers to the real estates held for generating rentand/orcapital appreciation,
including the right to use any land which has already been rented, the right to use any land which is held andprepared for transfer after appreciation & the right to use any building which has already been rented.
The company shall make a measurement to the investment real estate through the cost pattern.The company shalladopt the same depreciation policy as its fixed assets for the investment real estates measured by the costpattern-buildings for renting & the same amortization policy as its intangible assets for the right to use any landfor renting.
For the impairment test method and the impairment provision withdrawing method of the .Investment Real
Estates, please refer to “Long-term Assets Impairment in Article 10 of Important Accounting Policies andAccounting Estimates 21 in Notes 5 of Financial Statements”.
17.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management,and operation with service life of more than one year. Fixed assets are recognized when all of the following
conditions are satisfied：Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2)
The cost of the fixed asset can be reliable measured.
（2）Depreciation method
| Type | Depreciation methnod | Evpected 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% |
| Transportation Equipment | The straight-line method | 5-8 years | 3%-10% | 11.25%-19.4% |
| Electric Equipment and other | The straight-line method | 5-15 years | 3%-10% | 6 %-19.4% |
Provision for depreciation of highways and bridges is made with work amount method. Estimatednet residualvalue rate is zero. Estimated useful life is determined according to the period of peration right in respect ofcharge collection. The concrete calculation method is as follows: The amount of provision for depreciation perstandard vehicle traffic volume is to be calculated based on the estimated total standard vehicle traffic volumewithin expected useful life of highways and bridges and the original value or book value of highways andBridges. Then provision for depreciation is made according to the actual standard vehicle traffic volume in each
fiscal period.
The company regularly rechecks the estimate total standard vehicle traffc volume withintheremaining operationperiod of highways and bridges. When there is big difference between actual standard vehicle traffic volume andestimated standard vehicle traffic volume, the Company will re-estimate future total standard vehicle trafficvolume and adjust the provision for depreciation per standard vehicle traffic volume to ensure that the book valueof relevant highways and bridges will be completely amortized within useful life.
The company adopts the straight line method for the depreciation of fixed assets excepthighways & bridges,and recognizes the depreciation rate according to the fixed asset group, expected useful life & the expected netsalvage value rate.
(3) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset Impairment
ReservesFor the impairment test method and the impairment provision withdrawing method of the Fixed assets, please
refer to “Long-term Assets Impairment in Article 10 of Important Accounting Policies and AccountingEstimates 21 in Notes 5 of Financial Statements”。
18.Construction-in process1. Calculation of Construction-in -process:The constructions in process are classified & accounted according to the
established projects.2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed AssetsAll the expenditures that bring the construction in process to the expected condition for use shall be the creditvalue of the fixed asset. If the fixed asset construction in process has already reached the expected condition for
use, but hasn’t been made the final account; it shall be carried forward to a fixed asset according to its estimated
value based on the budget, cost or actual cost of the construction starting from the date when it reaches the
expected condition for use, and the fixed asset shall be depreciated according to the company’s depreciation
policy for fixed assets. After the final account has been made, the original provisional estimated value shall beadjusted according to the actual cost, but the depreciation which has originally been counted & drawn shall not beadjusted.
3．Test Method for Construction-in-Process Impairment and Counting & Drawing Method
For the impairment test method and the impairment provision withdrawing method of the Construction-in process ,
please refer to “Long-term Assets Impairment in Article 10 of Important Accounting Policies and AccountingEstimates 21 in Notes 5 of Financial Statements”。
19.Loan expenses1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of assetsatisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowingexpenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of currentterm.
The assets meeting capital conditions refer to the fixed assets, investment real estates and inventories whichare constructed or produced in a long time to reach the predicted use or sale state.
When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct or produce theassets which meet the capitalization conditions, and expend by cash or transferring non-cash assets or bearinginterest debt;2. Loan costs have taken place;3. The construction or production activities to make assets to reach the intended use or sale of state have begun.2. Duration of capitalization of Loan costsThe capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization,the period of the break of capitalization of Loan costs is not included.When the construction or production meets the intended use or sale of state of capitalization conditions, the Loancosts should stop capitalization.When the construction or production meets the conditions of capitalization and can be used individually, thecapitalization of the loan costs of the assets should be stopped.Where each part of a asset under acquisition and construction or production is completed separately and is readyfor use or sale during the continuing construction of other parts, but it can not be used or sold until the asset isentirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.
3．Capitalization Suspension Period
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and theinterruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. Ifthe interruption is a necessary step for making the qualified asset under acquisition and construction or productionready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costsincurred during such period shall be recorded into the profits & losses at the current period, till the acquisition andconstruction or production of the asset restarts.4. Calculation of the amount of capitalization of Loan costsInterest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the asset whichsatisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less weightedaverage of specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied.Capitalizing rate is determined according to weighted average interest of common Loan.
If the Loan has discount or premium, the discount or premium amount should be determined according toactual interests in each accounting period. The interest amount should be adjusted in each period.
20.Intangible assets
(1) Pricing method, useful life and impairment test
1. The valuation methods of intangible assets(1)The initial measurement is conducted according to the actual cost when the intangible assets are acquiredThe cost of the purchased intangible assets includes its buying price, relevant tax and the othe expenses thatare directly attributed to this assets meeting its predetermined objective and other expenses that occur. The buyingprice of intangible assets is over the deferred payment under normal credit conditions, which has the nature offinancing materially, the cost of intangible assets is determined on the basis of the present value of its buyingprice.
We acquire the mortgaged intangible assets from debtors through debt restructuring and determine the entryvalue on the basis of the fair value of the intangible assets,we have the balance between the book value of debtrestructuring and the fair value of intangible assets used for mortgage charged to the current profit and loss.
The entry value of the non-monetary assets exchanged into by the non-monetary assets are determined on thebasis of the fair value of the assets exchanged out if the exchange of non-monetary assets has commercial natureand the assets exchanged into or out can be reliably measured, unless there is authentic evidence indicating thatthe fair value of assets exchanged into are more reliable; if the non-monetary assets that cannot meet the aboveprerequisite use the book value of the assets exchanged out and relevant taxes payable as the cost of thenon-monetary assets, the profit and loss is not confirmed.The entry value of the intangible assets acquired by the absorption merger under the control of one company isdetermined by the book value of the merged party;the entry value of the intangible assets acquired by theabsorption merger that is not under the control of one company is determined by the fair value.The cost of the intangible assets developed internally includes the materials consumed in developing the assets,cost of service, registration fees, other patent used in developing, amortization of concession and interest chargesmeeting the capitalization conditions and othe direct costs that occur before the intangible assets meeting thepredetermined objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.The intangible assets that have limited serviceable life are amortized by the straight-line method during the periodwhen the assets can bring about economic interests;The intangible assets are deemed as uncertain serviceable lifeand are not amortized if it is impossible to expect the period when the assets could bring about economic interests.At the end of period, the Group shall check the service life and amortization method of intangible assets withfinite service life, if there is any change, it shall be regarded as a change of the accounting estimates. Besides, theGroup shall check the service life of intangible assets without certain service life, if there is any evidence showingthat the period of intangible assets to bring the economic benefits to the enterprise can be prospected, it shall beestimated the service life and amortized in accordance with the amortization policies for intangible assets withfinite service life.
（2） Provision for the depreciation of value of the intangible assets
For the impairment test method and the impairment provision withdrawing method of the Intangible assets, please
refer to “Long-term Assets Impairment of Important Accounting Policies and Accounting Estimates in Notes 5 ofFinancial Statements”.
21.Impairment of Long-term assets(1) ScopeThe assets Impairment main includes long-term equity investment, investment property (the investment propertymeasured by the fair value excluded), fixed assets, projects under construction, engineering material, intangibleassets (the capitalized development expenditure included), asset group, combination of asset group, businessreputation, etc..(2) Recognition of Possible Impairment AssetsThe company makes judgment of the assets if there exists the possible impairment at the balance sheet date. Theintangible assets with indefinite goodwill and service life due to the combination of enterprise, shall be conductedthe impairment test every year regardless of the impairment. The impairment may occurs for the assets if there isthe following status:
① The market price of assets fall sharply in the current period, and the decline is obviously beyond that estimated
due to the passage of time or normal use.
② The significant changes in the economy, technology or legal environment operated by the company and the
assets market in the current or the near future adversely affect the company.
③ The improvement of the market interest rates or other market investment returns in the current period,
influence the company to calculate assets estimating the discount rate of the present value of future cash flow andresult in the sharp drop of the recoverable amount of the assets.
④ There is evidence that shows the assets have become obsolete or the entities have been damaged.⑤ The assets have been or will be idle, terminated the use or planned to dispose in advance.⑥ The evidence in the internal report of the company shows that the economic performance of assets has been
less than or lower than the expected, such as the net cash flow created by assets or the achieved operating profit(or loss) is far below (or above) the estimated amount.
⑦ Other evidences indicate the impairment of assets may have occurred.
(3) Measurement of the Recoverable Amount of the AssetsThe recoverable amount shall be estimated if there exists the impairment for the assets. The recoverable amountshould be recognized according to the higher one between the net amount of the fair value minus the disposalcosts and the present value of the cash flow of assets expected in the future.(4) Determination of Asset Impairment LossThe measurement results of the recoverable amount show that the book value of assets shall be reduced to therecoverable amount and the reduced amount shall be recognized as the impairment loss of assets and recorded intothe current profits and losses, and the impairment provisions of the relevant assets are withdrawn if therecoverable amount of the assets is less than the book value. After the recognition of the assets impairment loss,the depreciation or amortization costs of the impairment assets should be made adjustment accordingly in thefuture period in order to make the assets to systematically amortize the book value of the assets after adjustedwithin the remaining service life (the estimated residual value deducted). The impairment loss of assets after
recognized shouldn’t be reversed in the future accounting period.
(5) Recognition and Impairment Treatment of Assets GroupIf there is the impairment for one asset, the company shall estimate the recoverable amount based on theindividual asset. If it is difficult for the company to estimate the recoverable amount of the individual asset, therecoverable amount of asset group shall be recognized on the basis of the asset group which the asset is belong to.The recognition of the asset group should be made on the basis of the main cash inflow generated by the assetsgroup that if is independent to the cash inflow of other assets or assets group.The corresponding impairment loss shall be recognized if the recoverable amount of the assets group or the assetsgroup combination is less the book value (the book value of the assets group or the assets group combinationshould include the amortization quota relevant to corporate assets and goodwill for the assets group or the assetsgroup combination amortized by the corporate assets and the goodwill). The book value of goodwill in theamortized assets group or assets group combination shall be firstly offset for the impairment losses, and the bookvalue of other assets shall be offset in proportion according to the proportion of the book value of other assets inthe assets group or the assets group combination, with the exception of the goodwill.(6) The Goodwill ImpairmentThe company has conducted the impairment test at least every year for the goodwill established by the businesscombination. The book value of the goodwill generated by the combination shall be amortized into the relatedasset group from the purchase date. If difficult to amortize into the relevant asset group, the book value shall beamortized into the relevant asset group combination. The relevant asset group or asset group combination refers tothat benefitting from the synergistic effect of the business combination and is not more than the report portionrecognized by the company.
When the relevant asset group or the asset group combination including the goodwill are conducted theimpairment test, the impairment test should be firstly conducted for the asset group without the goodwill or theasset group combination, the recoverable amount shall be calculated and the corresponding impairment loss shallbe recognized by comparison with the relevant book value if there exists the impairment for the asset grouprelevant to the goodwill or the asset group combination. Then the impairment test should be conducted for theasset group with the goodwill or the asset group combination, the impairment loss of the goodwill shall berecognized and made the treatment according to the provisions of the asset group impairment stated in the notes ifthe recoverable amount of the relevant asset group or the asset group combination is less than the book value bycomparison of the book value of these relevant asset group or the asset group combination (including the bookvalue of the goodwill amortized) with the recoverable amount.22.Long-term amortizable expensesLong-term prepaid expenses refer to that enterprises have already spent, and amortization periods of all expensesare more than one year (excluding 1 year), they should be amortized in the regulated years.
23.Remuneration
（1）Accounting treatment of short-term remuneration
Remuneration refers to all kinds of rewards or compensation that the Company gives to get in return for theservices its employees provide or employment termination. It includes short-term compensation, post-employmentbenefits, demission benefits and other long-term employee benefits.Enterprises to provide employees spouse, child welfare, dependents, survivors and other beneficiariesof deceased employees, etc., also belong to payroll.During the company's accounting staff to provide services, the actual wages, bonuses, allowances and subsidies, welfare, medical insurance, work injury insurance and maternity insurance and other social insurance, housing fundconfirmed, labor union funds, employee education funds and as a liability profit or loss or costs related assets. If the debt is expected to provide services after the end of the annual reporting period in which an employee can not be fully paid within twelve months, and the financial impact is material, the amount will be discounted liabilities measured after.(2) Accounting methods for post-employment benefitsPost-employment benefits refer to the compensation and benefits that the Company gives to get in return for
employees’ services for their retirement or employment termination, excluding short-term compensation and
demission benefits. It falls into two categories, defined contribution plans and defined benefit plans.
① The defined contribution plan: the company shall no longer bear the further obligation to pay severance
benefit plans after the company deposits the fixed costs to the independent funds. The basic pension insurance andthe unemployment insurance shall be recognized as the liability according to the payable amount accounted by thedefined contribution plans and recorded onto the current profits and losses or the relevant asset costs during theaccounting period of the services provided by the staffs.
② The defined benefit plan: the severance benefit plans with the exception of the defined contribution plans.
(3) Accounting Treatment Method of Demission WelfareThe Company offers compensation to terminate employment with its employees before it expires or encouragethem to accept lay-off. Such compensation is demission benefits and counted in current profit and loss. Theemployee compensation liabilities generated by the demission welfare shall be recognized on the early date and
recorded into the current profits and losses: (1) when the company can’t withdraw the demission welfare provided
due to the rundown suggestion or the termination of labor relations plans. (2) when the enterprise recognizes thecosts or the expenses related to the reorganization of demission welfare payment.The economic compensation before the official retirement date shall be belong to the demission welfare when theimplementation of the internal retirement plan for workers. During the period from the termination of service dateto the normal retirement date, the paid internal retirement payroll and social insurance charges shall be oncerecorded into the current profits and losses. The economic compensation after the official retirement date (such asthe normal retirement pension) should be handled according to the welfares after the demission.
24.Estimated liabilitiesThe company should recognize the related obligation as a provision for liability when the obligation meets the
following conditions:
(1) That obligation is a present obligation of the enterprise;(2) It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;(3) A reliable estimate can be made of the amount of the obligation.On the balance sheet date, an enterprise shalltake into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to theContingencies to measure the estimated liabilities in accordance with the best estimate of the necessary expensesfor the performance of the current obligation.When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterprise isexpected to be compensated by a third party, the compensation should be separately recognized as an asset onlywhen it is virtually certain that the reimbursement will be obtained. Besides, the amount recognized for thereimbursement should not exceed the book value of the estimated liabilities
25.Bond payable
When the company is issuing bonds, the total price issued should be included in the “Payable bonds” subject.
The difference between bond issuance total amount and the total amount of bond face valueshould be workedas bond premium or discount and be amortized within the bond period according to actual interest rate andvertical line method, and be treated according to borrowing costs described below.
26.Other Comprehensive Incomes
Other comprehensive incomes refer to the profits and losses unrecognized in the current profits and lossesaccording to other provisions of accounting standards. There are two reports:
(1) Other comprehensive incomes that unable to be reclassified into the profits and losses in the future accountingperiod, mainly including the changes caused by the net liabilities and the net assets of the defined benefit plan thatre-measured and the shares of other comprehensive incomes that accounted and unable to be reclassified into theprofits and losses for the invested party in the future accounting period according to the equity method.(2) Other comprehensive incomes that reclassified into the profits and losses in the future accounting period whenthe requirements are met, the shares of other comprehensive incomes that accounted and reclassified into theprofits and losses for the invested party in the future accounting period according to the equity method when therequirements are met, the profits or losses caused by the fair value changes of the sellable financial assets, theprofits or losses generated by the sellable financial assets reclassified for the held-to-maturity investment, theeffective hedging portion of the profits and losses issued by the cash flow hedging instruments, and the translation
differences of foreign financial statements.27. RevenuesWhether the Company needs to comply with the disclosure requirements for specific industrie
No
The company’s incomes mainly include the toll service revenues and the services provision.
(1) The recognition principle of the toll service revenues is that the toll revenues refer to the charges of operatingthe toll roads and shall be recognized in the actual charge.(2) The recognition principle of the services provision is as follows:
The labor services started and completed within the same fiscal year shall be recognized as the revenues when thelabor services finished. If the labor services started and completed in the different fiscal year and under thereliable estimation of the provided services transaction results, the company shall recognize the relevant serviceincomes according to the completion percentage method at the balance sheet date. The results of the transactioncan be estimated reliably when the following requirements are all met: (1) total revenues and total labor costs canbe measured reliably. (2) the economic benefits relevant to the transaction will flow into the enterprise. (3) thecompetition degree of the labor services can be reliably determined.
28. Government Grants
（1）Government Grants
Government grants means that the Company obtains monetary or non monetary assets free of charge fromthe government, excluding the capital invested by the government as an owner.
The company recognizes the government grants when the company can meet the conditions of governmentgrants and be able to receive the government grants. Thereinto:
(1) If the government grant is a monetary asset, it shall be measured according to the amount received orreceivable; If the government grant is a non-monetary asset, it shall be measured at fair value, and if the fair valuecannot be obtained reliably, it shall be measured according to the nominal amount.
⑵The government grants pertinent to assets are used to write down the carrying value of the underlying
assets or are recognized as deferred income. If the government grants pertinent to assets are recognized as deferredgains, it shall be included in the profits and losses in a reasonable and systematic manner within the useful life ofthe underlying asset. The Government grants, measured in nominal amounts, are directly included in currentprofits and losses. The government grants pertinent to income that are used to compensate the relevant costs orlosses of the subsequent period of the enterprise are recognized as deferred income and are credited to the currentprofit or loss or are written down to offset the costs for the period when the relevant expenses are recognized;those government grants used for compensating the related expenses or losses incurred shall be directly included inthe current profits and losses.
⑶ Government grants related to the daily activities of the enterprise are included in other income or are
written down to offset costs in accordance with the economic business nature. Government grants that are notrelated to the day-to-day activities of the enterprise are included in non-operating income and expenditure.
Where the recognized government grant needs to be refunded, then the accounting treatment shall be carried
out in the period that it needs to be refunded according to the following stipulations: (1) Where it was writtendown the book value of the underlying assets at the time of initial recognition, then the book value of the assetsshall be adjusted; (2) Where there is a related deferred income, it shall write-down the book balance of relateddeferred income and the excess part shall be included in the current profit and loss; (3) Where belongs to othercases, that shall be directly included in the current profits and losses.
29.Deferred income tax assets and deferred income tax liabilities
The company is likely to determine the deferred income tax assets produced from deductible temporarydifferences with the limit of offsetting the taxable income of temporary difference.The Company confirms the temporary differences of the taxable that is not paid in the current and prior periods asthe deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger andthose will affect either accounting profit or the temporary differences of the taxable income when the transactionsoccur are not included in the deferred income tax liabilities.
30.Accounting Methods of Income tax
The company’s income tax is accounted in Balance sheet liability approach.
The company recognizes the sum of current income tax and deferred tax as the income tax expenses(or income) in
the income statement on the basis of calculating and determining the income tax of the current period(namelythe current taxes payable) and the deferred tax (the deferred tax expenses or income ), but excluding theeffects of the business combination and the income taxes related to the transactions or events directly recorded
in the owner’s rights and interests.
31.Change of main accounting policies and estimations
⑴Change of accounting policies□ Applicable √Not applicable
⑵Change of accounting estimations□ Applicable √ Not applicable
VI. Taxation
1. Major category of taxes and tax rates
| Tax category | Tax basis | Tax rate |
| VAT | Sales by sale of goods or provision of taxable services | 3%、5%、6%、10%、11%、16%、17% |
| City maintenance and construction tax | The actual payment of turnover tax | 7%、5% |
| Enterprise income tax | Taxable income | 25% |
| .Education surcharges | The actual payment of turnover tax | 3% |
| Local Education surcharges | The actual payment of turnover tax | 2% |
2.Preferential tax
Nil
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Cash | 82,371.11 | 66,065.04 |
| Bank deposit | 1,820,722,446.96 | 2,362,279,050.70 |
| Other | 661,321.30 | 697,584.68 |
| Total | 1,821,466,139.37 | 2,363,042,700.42 |
2. Account receivable
1.Classification account receivables.
In RMB
| Category | Amount in year-end | Amount in year- begin | ||||||||
| Book Balance | Bad debt provision | Book valu | Book Balance | Bad debt provision | Book valu | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Account receivable with single major amount and withdrawal bad debt provision for single item | 43,102,039.46 | 45.54% | 43,102,039.46 | 65,760,470.23 | 70.64% | 65,760,470.23 | ||||
| Account receivable withdrawalbad debt | 51,551,743.98 | 54.46% | 542,607.74 | 1.05% | 51,009,136.24 | 27,331,295.37 | 29.36% | 449,140.15 | 1.64% | 26,882,155.22 |
| provision by group of credit risk characterstics | ||||||||||
| Total | 94,653,783.44 | 100.00% | 542,607.74 | 0.57% | 94,111,175.70 | 93,091,765.60 | 100.00% | 449,140.15 | 0.48% | 92,642,625.45 |
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable □Not applicable
In RMB
| Receivable accounts（Unit） | Amount in year-end | |||
| Receivable accounts | Bad debt provision | Proportion | Reason | |
| Guangdong Union Electronic Services Co., Ltd. | 43,102,039.46 | Been recovered after the period | ||
| Total | 43,102,039.46 | -- | -- | |
Account receivable on which bad debt provisions are provided on age basis in the group：
√ Applicable □Not applicable
In RMB
| Aging | Balance in year-end | ||
| Receivable accounts | Bad debt provision | Withdrawal proportion | |
| Subitem within 1 year | |||
| Subtotal within 1 year | 48,765,342.11 | 0.00% | |
| 1-2 years | 1,646,564.11 | 164,656.41 | 10.00% |
| 2-3 years | 1,079,837.76 | 323,951.33 | 30.00% |
| 3-4 years | 50.00% | ||
| 4-5 years | 60,000.00 | 54,000.00 | 90.00% |
| Total | 51,551,743.98 | 542,607.74 | 1.05% |
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicableIn the groups, accounts receivable adopting other methods to accrue bad debt provision:：
Nil
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB1.00 ; recovery or payback for bad debts Amount is
RMB0.00.
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of other receivables owed by the imputation of the top five parties
| Name | Amount | Aging | Proportion(%) | Bad debt provision |
| Guangdong Union Electronic Services Co., Ltd. | 43,102,039.46 | Within 1 year | 45.54 | |
| Guangdong Humen Bridge Co., Ltd. | 27,048,223.47 | Within 1 year | 28.58 | |
| Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 4,447,474.99 | Within 1 year | 4.70 | |
| Shandong Boan Intelligent Technology Co., Ltd. | 3,393,474.35 | Within 1 year | 3.59 | |
| Guangdong Qinglian Highway Development Co., Ltd. | 3,130,000.00 | Within 1 year | 3.31 | |
| Total | 81,121,212.27 | -- | 85.72 |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivableNil
3. Prepayments
（1）Age analysis
In RMB
| Age | Balance in year-end | Balance in year-begin | ||
| Amount | Proportion（%） | Amount | Proportion（%） | |
| Within 1 year | 1,527,512.44 | 88.09% | 4,238,442.26 | 95.21% |
| 1-2 years | 1,762.53 | 0.10% | 8,721.49 | 0.20% |
| 2-3 years | 35,000.00 | 0.79% | ||
| Over 3 years | 204,738.00 | 11.81% | 169,738.00 | 3.80% |
| Total | 1,734,012.97 | -- | 4,451,901.75 | -- |
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
Nil
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
| Name | Amount | Time | Proportion(%) |
| Guangzhou Tuzhiling Computer Technology Co., Ltd. | 624,469.35 | Within 1 year | 36.01 |
| China pacific property insurance co., Ltd. | 594,467.44 | Within 1 year | 34.28 |
| Guangzhou Maritime Court | 169,738.00 | Over 5 years | 9.79 |
| Guangzhou Haohang Electronic Technology Co., Ltd. | 110,990.40 | Within 1 year | 6.40 |
| Shenzhen Gonglian Construction Engineering Co., Ltd. | 62,575.50 | Within 1 year | 3.61 |
| Total | 1,562,240.69 | -- | 90.09 |
4.Dividend receivable
（1）Dividend receivable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| China Everbright Bank Co., Ltd. | 42,581,144.86 | |
| Guoyuan Securities Co., Ltd. | 11,940,297.90 | |
| Total | 54,521,442.76 |
（2）Significant dividend receivable aged over 1 year
Nil
5.Other accounts receivable(1) Other accounts receivable disclosed by category
In RMB
| Category | Balance in year-end | Balance in year-begin | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other Account | 53,351,565.01 | 29.94% | 53,351,565.01 | 100.00% | 53,351,565.01 | 75.72% | 53,351,565.01 | 100.00% | ||
| receivable with single major amount and withdrawal bad debt provision for single item | ||||||||||
| Other Account receivable withdrawal bad debt provision by group of credit risk characteristics | 124,819,706.22 | 70.06% | 1,543,724.65 | 1.24% | 123,275,981.57 | 17,110,594.66 | 24.28% | 1,695,082.59 | 9.91% | 15,415,512.07 |
| Other Account receivable with minor individual amount but bad debt provision is provided | 178,171,271.23 | 100.00% | 54,895,289.66 | 30.81% | 123,275,981.57 | 70,462,159.67 | 100.00% | 55,046,647.60 | 78.12% | 15,415,512.07 |
| Total |
- Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □Not applicable
In RMB
| Other receivable（Unit） | Balance in year-end | |||
| Other receivable | Bad debt provision | Proportion | Reason | |
| Kunlun Securities Co.,Ltd. | 49,343,885.10 | 49,343,885.10 | 100.00% | The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd, Guangdong Expressway 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 Kunlun Securities Co., Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007, The Company and Guangdong Expressway Technology Investment Co., Ltd had switched the money that paid into Kunlun Securities Co., Ltd to other account receivable, and follow the careful principle to doubtful debts provision. The RMB 710,349.92 Credit was Recovered in 2008, and the provision for bad debt is deducted, The 977,527.77 yuan credit was recovered in 2011, and the provision for had debt is deducted. The 652,012.00 yuan Credit was recovered in 2014, and the provision for had debt is deducted. |
| Beijing Gelin Enze Organic Fertilizer Co., Ltd. | 4,007,679.91 | 4,007,679.91 | 100.00% | Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze Organic Fertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it was entrust loan, three million was temporary borrowing 12,400.00 yuan is the commission loan interest, the rest of it was advance money for another, Beijing Gelin 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 provision for Bad debt 12,220,079.91 yuan provision. The company in 2014 recovered arrears of 8,000,000.00 yuan, rushed back to the provision for bad debts and write off uncollected interest ent |
| Other receivable（Unit） | Balance in year-end | |||
| Other receivable | Bad debt provision | Proportion | Reason | |
| rusted loans according to tThe settlement agreement of 212,400.00 yuan. | ||||
| Total | 53,351,565.01 | 53,351,565.01 | -- | -- |
Other receivable accounts in Group on which bad debt provisions were provided on age analyze
basis：
√ Applicable □Not applicable
In RMB
| Age | Amount in year-end | ||
| Other receivable | Bad debt provision | Withdrawal proportion | |
| Subitem Withn 1 year | |||
| Subtotal within 1 year | 117,023,751.56 | ||
| 1-2 years | 10.00% | ||
| 2-3 years | 32,457.98 | 9,737.39 | 30.00% |
| 3-4 years | 50.00% | ||
| 4-5 years | 90.00% | ||
| Over 5 years | 1,533,987.26 | 1,533,987.26 | 100.00% |
| Total | 118,590,196.80 | 1,543,724.65 | 1.30% |
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debtprovision
□ Applicable √Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
√ Applicable □Not applicable
| Name | Amount in year-end | |||
| Other account receivable | Bad debt provision | Withdrawal proportion（%） | Reason | |
| Guangdong Litong Real estate Investment Co., Ltd | 1,505,864.00 | Deposit | ||
| Guangdong Guanghui Expressway Co., Ltd | 1,413,708.90 | Deposit | ||
| Guangdong Expressway Co., Ltd. | 575,630.98 | Administration expenses,Quality guarantees fund | ||
| Zhaoqing Yuezhao Highway Co., Ltd. | 415,614.00 | Deposit |
| Guangdong Xinyue Traffic Investment Co.,Ltd. | 415,442.60 | Quality guarantees | ||
| Beijing Shibang Weilishi Property Management Services Co., Ltd. | 393,331.00 | Deposit | ||
| Guangdong Guangzhu West Line Expressway Co., Ltd. | 185,366.60 | Quality guarantees | ||
| Guangshen Zhu Expressway Co., Ltd. | 185,014.40 | Quality guarantees |
| Name | Amount in year-end | |||
| Other account receivable | Bad debt provision | Withdrawal proportion（%） | Reason | |
| CRCC Harbour & Channel Engineering Bureau Group Co., Ltd. | 165,169.25 | Quality guarantees | ||
| Beijing Gongke Feida Transport Engineering Development Co., Ltd. | 115,475.20 | Quality guarantees | ||
| Guangdong Feida Transportation Engineering Development Co., Ltd. | 90,920.75 | Quality guarantees | ||
| Guangdong Highway Construction Co., Ltd. | 76,563.00 | Quality guarantees | ||
| Chengdu Shuguang Fibre-optical Metwork Co., ltd. | 59,758.09 | Quality guarantees | ||
| Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 55,694.00 | Quality guarantees | ||
| Guangdong Boda Expressway Co., Ltd. | 51,808.80 | Quality guarantees | ||
| Shenzhen Expressway Engineering consulting Co.,ltd. | 50,000.00 | Bid security | ||
| Guangdong West Coastal Expressway Zhuhai Section Co., Ltd. | 40,967.05 | Quality guarantees | ||
| Guangzhou Chengcheng Auto Leasing Service Co., ltd. | 30,000.00 | Deposit | ||
| Guangdong Jiangzhong Expressway Co., Ltd. | 28,120.00 | Quality guarantees | ||
| Pengjiang Shunfeng Auto Leasing Service Center | 25,500.00 | Deposit | ||
| Guangzhou Tuzhiling Computer Technology Co., Ltd. | 25,438.80 | Quality guarantees | ||
| Guangdong Road & Bridge Construction Development Co., Ltd. | 24,972.70 | Quality guarantees | ||
| Guangzhou Express Transportation Construction Co., Ltd. | 22,094.40 | Quality guarantees | ||
| Guangzhou Longfeng Auto Leasing Co., Ltd. | 20,000.00 | Deposit | ||
| Guangzhou Beihuan Expressway Co., Ltd. | 16,590.40 | Quality guarantees |
| Guangzhou Huanan Road & Bridge Co., Ltd. | 16,000.00 | Quality guarantees | ||
| Guangzhou Saitisi Electromechanical Installation Engineering Co., Ltd. | 15,875.00 | Quality guarantees | ||
| Shanxi Hantang Computer Co., Ltd. | 14,250.00 | Quality guarantees |
| Guangdong Shenshanxi Expressway Co., Ltd. | 13,246.40 | Quality guarantees | ||
| Guangzhou Daguang Expressway Co., Ltd. | 12,749.60 | Quality guarantees | ||
| Guangdong Shenshan Expressway East Section Co., Ltd. | 12,000.00 | Quality guarantees |
| Name | Amount in year-end | |||
| Other account receivable | Bad debt provision | Withdrawal proportion（%） | Reason | |
| Guangdong Humen Bridge Co., Ltd. | 11,107.50 | Quality guarantees | ||
| Guangzhou Dingrong Information Technology Co., Ltd. | 10,950.00 | Quality guarantees | ||
| Guangzhou Suihua Expressway Co., Ltd. | 10,400.00 | Quality guarantees | ||
| Zhongshan Global Environmental Engineering Co., Ltd. | 10,000.00 | Deposit | ||
| Guangdong Gaoda Property Development Co.,ltd. | 9,940.70 | Deposit | ||
| Guangdong Zhonglin Electrical Installation Engineering Co., Ltd. | 8,820.00 | Quality guarantees | ||
| Guangdong Maozhan Expressway Co., Ltd. | 8,747.20 | Quality guarantees | ||
| Guangdong Shanfen Expressway Co., Ltd. | 8,028.80 | Quality guarantees |
| Guangdong Baomao Expressway Co., Ltd. | 7,633.60 | Quality guarantees | ||
| Guangdong Yuedong Expressway Industry Development Co., Ltd. | 7,367.20 | Quality guarantees | ||
| Guangdong Guangle Expressway Co., Ltd. | 7,248.00 | Quality guarantees |
| Foshan Guangsan Expressway Co., Ltd. | 6,492.00 | Quality guarantees | ||
| Guangdong Yangmao Expressway Co., Ltd. | 6,004.80 | Quality guarantees | ||
| Guangdong West Coastal Expressway Xinhui Section Co., Ltd. | 5,753.20 | Quality guarantees | ||
| Huishen(Yantian)Expressway Huizhou Co., Ltd. | 5,600.00 | Quality guarantees | ||
| Guangzhou Expressway Co., Ltd. | 5,528.80 | Quality guarantees | ||
| Guangdong Litong Technology Investment Co., Ltd. | 5,273.00 | Quality guarantees | ||
| Guangdong Maoming Nanda Electric Power Construction Co., ltd. Huizhou Branch | 5,000.00 | Quality guarantees | ||
| Guangdong Zhaoyang Expressway Co., Ltd. | 4,304.00 | Quality guarantees |
| Guangdong Yueyun Traffic Co., Ltd. | 3,032.00 | Quality guarantees | ||
| Jiangmen Jianghe Expressway Co., Ltd. | 2,539.20 | Quality guarantees | ||
| Guangzhou Guangcong Expressway Co., Ltd. | 2,027.20 | Quality guarantees |
| Foshan Nanhai Jiasheng Drinking Water Chain | 1,800.00 | Deposit | ||
| Shanxi Sihe Traffic Engineering Co., Ltd. | 1,600.00 | Quality guarantees | ||
| Beijing Zhonghe Tianxia Management Consultation Co., Ltd. | 1,000.00 | Guarantees | ||
| Guangdong Weishi Highway Engineering Co., | 146.30 | Quality guarantees |
| Name | Amount in year-end | |||
| Other account receivable | Bad debt provision | Withdrawal proportion（%） | Reason | |
| Ltd. | ||||
| Total | 6,229,509.42 |
- Other receivable accounts withno large amount and were provided had debt provisions
individually at end of period.:Nil
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB0.00 ; recovery or payback for bad debts Amount is 151,357.94 yuan.Where the current bad debts back or recover significant amounts:Nil
(3)The actual write-off other accounts receivableNil
(4) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Securities trading settlement funds balance | 49,343,885.10 | 49,343,885.10 |
| Guarantee deposit | 5,946,185.54 | Disposit 5,973,582.34 |
| Current account of gelin enze | 4,007,679.91 | 4,007,679.91 |
| Pretty cash | 3,540,100.00 | 3,950,100.00 |
| Advertising and service fee | 1,045,029.88 | 2,187,578.36 |
| Assets Disposit | 106,000,000.00 | |
| Other | 8,288,390.80 | 4,999,333.96 |
| Total | 178,171,271.23 | 70,462,159.67 |
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrearsparty
In RMB
| Name | Nature | Closing balance | Aging | Proportion of the total year end balance of the accounts receivable(%) | Closing balance of bad debt provision |
| Zhuhai (National) High-tech Industrial Development Zone Management Committee Planning and Construction Environmental Protection Bureau | Assets Disposit | 106,000,000.00 | Within 1 year | 59.49% | |
| Kunlun Securities Co.,Ltd | Securities trading settlement funds | 49,343,885.10 | Over 5 years | 27.69% | 49,343,885.10 |
| Beijing Gelin Enze | Current account | 4,007,679.91 | Over 5 years | 2.25% | 4,007,679.91 |
| Guangdong Litong Real estate Investment Co., ltd. | Guarantees fund | 1,505,864.00 | 1-2 years, Over 5 years | 0.85% | |
| Heshan Communication Real estate Development Company | Current account | 1,470,000.00 | Over 5 year | 0.83% | 1,470,000.00 |
| Total | -- | 162,327,429.01 | -- | 91.11% | 54,821,565.01 |
Notes：Zhuhai (National) High-tech Industrial Development Zone Management Committee
Planning and Construction Environmental Protection Bureau of 106 million yuan assets disposalamount was recovered on July 3, 2018. Relevant matters have been announced by the company onJuly 4, 2018.
(6) Accounts receivable involved with government subsidiesNil(7) Other account receivable which terminate the recognition owning to the transfer of the
financial assets Nil(8) The amount of the assets and liabilities formed by the transfer and the continues involvement
of other accounts receivableNil
6.Inventory
（1）Inventory types
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book Balance | Provision for bad debts | Book value | Book Balance | Provision for bad debts | Book value | |
| Raw material | 139,076.49 | 139,076.49 | ||||
| Total | 139,076.49 | 139,076.49 | ||||
Whether the company is required to comply with the "Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 4 - listed companies engaged in seed industry, plantingbusiness" disclosure requirements
No
（2）Inventory falling price reserves
Nil(3) Description of The closing balance of inventories contain the amount of borrowing costs capitalized(4) Completed unsettled assets formed from the construction contact at the period-end
Nil7.Non-current asset due within 1 year
In RMB
| Items | Year-end balance | Year-beginning balance |
| Advance business tax | 51,745.32 | 55,669.14 |
| Total | 51,745.32 | 55,669.14 |
Other notes8.Other current assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Input tax to be deducted | 921,856.82 | 76,576.08 |
| Total | 921,856.82 | 76,576.08 |
Other notes
9. Available-for-sale financial assets(1) List of available-for-sale financial assets
In RMB
| Items | Amount in year-end | Amount in year- begin | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
| Available-for-sale equity Instruments | 1,696,401,396.77 | 36,793,200.00 | 1,659,608,196.77 | 1,788,150,824.93 | 36,793,200.00 | 1,751,357,624.93 |
| Measured by fair value | 861,033,095.04 | 861,033,095.04 | 952,782,523.20 | 952,782,523.20 | ||
| Measured by cost | 835,368,301.73 | 36,793,200.00 | 798,575,101.73 | 835,368,301.73 | 36,793,200.00 | 798,575,101.73 |
| Total | 1,696,401,396.77 | 36,793,200.00 | 1,659,608,196.77 | 1,788,150,824.93 | 36,793,200.00 | 1,751,357,624.93 |
(2) Available-for-sale financial assets measured by fair value at the period-end
In RMB
| Type | Available-for-sale equity instruments | Available-for-sale Debt instruments | Total | |
| Cost of the equity instruments/amortized cost of the liabilities instruments | 517,560,876.80 | 517,560,876.80 | ||
| Fair value | 861,033,095.04 | 861,033,095.04 | ||
| Changed amount of the fair value accumulatively included in other comprehensive income | 343,472,218.24 | 343,472,218.24 |
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank According to the closing price of June 30, 2018 of 3.66 yuan, the final calculation of fair valuewas 861,033,095.04 yuan.
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
| Investee | Book balance | Impairment provision | Shareholding proportion among the | Cash bonus of the reporting | ||||||
| Period-begin | Increase | Decrease | Period -end | Period-begin | Increase | Decrease | Period -end | |||
| investees | period | |||||||||
| Guangdong Radio and Television Networks investment No.1 Limited partnership enterprise | 50,000,000.00 | 50,000,000.00 | 3.11% | |||||||
| Kunlun Securities Co., Ltd.（Notes1） | 30,000,000.00 | 30,000,000.00 | 30,000,000.00 | 30,000,000.00 | 5.74% | |||||
| Huaxia Securities Co., Ltd.（Notes 2） | 5,400,000.00 | 5,400,000.00 | 5,400,000.00 | 5,400,000.00 | 0.27% | |||||
| Huazheng Assets Management Co. Ltd.（Notes3） | 1,620,000.00 | 1,620,000.00 | 1,393,200.00 | 1,393,200.00 | 0.54% | |||||
| Guangdong Guangle Expressway Co., Ltd. | 748,348,301.73 | 748,348,301.73 | 9.00% | |||||||
| Total | 835,368,301.73 | 835,368,301.73 | 36,793,200.00 | 36,793,200.00 | -- |
Notes 1.The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered liquidation procedure inOctober 2005. A wholly owned subsidiary of Guangdong Expressway Technology Investment Co., Ltd. Willinvest Kunlun Securities Co., Ltd.'s full provision for impairment of 30 million yuan.Notes 2: The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure inDecember 2005. The Company made full provision for impairment in respect of this long-term equity investmentof RMB 5.4 million.Notes 3: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co.,Ltd. As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was279.132 million yuan and the appraised value was - 2299.5486 million yuan ,On October 14, 2005, JianyinCITIC Asset Management Co., Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to theCompany. Jianyin CITIC Asset Management Co., Ltd. was willing to pay the price of not more than RMB 42million to acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions.The Company replied on December 5, 2005, abandoning the preemptive right under the same conditions. TheCompany made provision of 1.3932 million yuan for impairment in respect of this long-term equity investm entof 1.62 million yuan.
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
| Type | Available-for-sale Equity instruments | Available-for-sale Debt instruments | Total | |
| Balance of the withdrawn impairment at the period-begin | 36,793,200.00 | 36,793,200.00 | ||
| Balance of the withdrawn impairment at the period-end | 36,793,200.00 | 36,793,200.00 |
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious
decline in fair value or non temporary decline but not related to impairment provision
Nil
10. Long-term equity investment
In RMB
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Negative investment | Investment profit and loss recognized under the equity method | 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. | 949,906,833.96 | 134,138,087.25 | 3,951,780.00 | 37,805,847.20 | 1,050,190,854.01 | ||||||
| Zhaoqing Yuezhao Highway Co., Ltd. | 291,906,117.18 | 28,635,945.38 | 43,088,859.48 | 277,453,203.08 | |||||||
| Subtotal | 1,241,812,951.14 | 162,774,032.63 | 3,951,780.00 | 80,894,706.68 | 1,327,644,057.09 | ||||||
| 2. Affiliated Company | |||||||||||
| Shenzhen Huiyan Expressway | 196,197,198.21 | 17,813,868.36 | 214,011,066.57 | ||||||||
| Guangdong Jiangzhong Expressway Co.,. Ltd. | 173,502,304.11 | 6,897,600.54 | 3,789,200.79 | 176,610,703.86 | |||||||
| Ganzhou Kangda Expressway | 208,768,922.86 | 13,838,738.80 | 222,607,661.66 | ||||||||
| Gan Ganzhou Gankang Expressway | 204,404,703.35 | 3,050,213.53 | 207,454,916.88 | ||||||||
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Negative investment | Investment profit and loss recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 215,548,332.90 | 7,397,846.46 | 222,946,179.36 | ||||||||
| Guoyuan Securities Co., Ltd. | 807,040,587.43 | 5,004,857.02 | -4,983,478.43 | -5,404.45 | 11,940,297.90 | 795,116,263.67 | |||||
| Subtotal | 1,805,462,048.86 | 54,003,124.71 | -4,983,478.43 | -5,404.45 | 15,729,498.69 | 1,838,746,792.00 | |||||
| Total | 3,047,275,000.00 | 216,777,157.34 | -4,983,478.43 | 3,946,375.55 | 96,624,205.37 | 3,166,390,849.09 | |||||
11. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
| Items | Houses and buildings | Land use right | Construction in progress | Total |
| I.Original value | ||||
| 1.Opening balance | 12,664,698.25 | 12,664,698.25 | ||
| 2.Increased amount of the period | ||||
| （1）Outsourcing | ||||
| (2)Inventory, Fixed assets and Construction project into | ||||
| (3)Enterprise consolidation |
| Items | Houses and buildings | Land use right | Construction in progress | Total |
| 3.Decreased amount of the period | ||||
| （1）Disposal | ||||
| （2）Other Out | ||||
| 4.Closing balance | 12,664,698.25 | 12,664,698.25 | ||
| II.Accumulated depreciation accumulated amortization | ||||
| 1.Opening balance | 9,908,940.57 | 9,908,940.57 | ||
| 2.Increased amount of the period | 232,106.70 | 232,106.70 | ||
| (1)Withdrawal or amortization | 232,106.70 | 232,106.70 | ||
| 3.Decreased amount of the period | ||||
| （1）Disposal | ||||
| （2）Other Out | ||||
| 4.Closing balance | 10,141,047.27 | 10,141,047.27 | ||
| III. Impairment provision | ||||
| 1.Opening balance | ||||
| 2.Increased amount of the period | ||||
| （1）Withdrawal | ||||
| 3.Decreased amount of the period | ||||
| （1）Disposal |
| Items | Houses and buildings | Land use right | Construction in progress | Total |
| （2）Other Out | ||||
| 4.Closing balance | ||||
| IV. Book value | ||||
| 1.Closing book value | 2,523,650.98 | 2,523,650.98 | ||
| 2.Opening book | 2,755,757.68 | 2,755,757.68 |
(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 balue | Reason |
| Transportation and other ancillary facilities | 1,661,619.56 | Transportation and other ancillary facilities, Not accreditation |
12. Fixed assets(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 | 8,947,295,870.80 | 5,130,574,408.53 | 351,864,147.46 | 126,486,080.83 | 60,529,297.78 | 640,530,500.31 | 16,717,550,496.37 |
| 2.Increased amount of the period | 442,475.45 | 735,013.97 | 1,177,489.42 | |||||
| （1）Purchase | 442,475.45 | 735,013.97 | 1,177,489.42 | |||||
| （2）Transfer of project under construction | ||||||||
| (3)Increased of Enterprise consolidation | ||||||||
| 3.Decreased amount of the period | 332,304,199.42 | 5,806,302.94 | 7,500.00 | 11,248,529.50 | 2,005,831.87 | 351,372,363.73 | ||
| （1）Disposal or scrap | 332,304,199.42 | 64,392.90 | 7,500.00 | 11,248,529.50 | 7,747,741.91 | 351,372,363.73 | ||
| （2）Reclassification adjustment | 5,741,910.04 | -5,741,910.04 | ||||||
| 4.Closing balance | 1,460,270,190.66 | 8,947,295,870.80 | 4,798,270,209.11 | 346,057,844.52 | 126,478,580.83 | 49,723,243.73 | 639,259,682.41 | 16,367,355,622.06 |
| II. Accumulated depreciation | ||||||||
| 1.Opening balance | 1,460,270,190.66 | 3,440,540,410.91 | 2,553,720,215.76 | 224,291,495.10 | 60,384,283.80 | 48,027,809.99 | 424,881,199.44 | 8,212,115,605.66 |
| 2.Increased amount of the period | 248,113,498.44 | 119,192,484.76 | 7,015,995.01 | 5,610,652.80 | 1,364,344.73 | 17,456,629.29 | 398,753,605.03 | |
| （1）Withdrawal | 248,113,498.44 | 119,192,484.76 | 7,015,995.01 | 5,610,652.80 | 1,364,344.73 | 17,456,629.29 | 398,753,605.03 |
| Items | Guangfo Expressway | Fokai Expressway | Jingzhu Expressway Guangzhu section | House and buildings | Machinery equipment | Transportation equipment | Electricity equipment and other | Total |
| （2）Reclassification adjustmen | ||||||||
| 3.Decreased amount of the period | 171,593,287.96 | 4,639,971.00 | 7,200.00 | 10,573,293.09 | 2,414,348.97 | 189,228,101.02 | ||
| （1）Disposal or scrap | 171,593,287.96 | 61,817.18 | 7,200.00 | 10,573,293.09 | 6,992,502.79 | 189,228,101.02 | ||
| （2）Reclassification adjustmen | 4,578,153.82 | -4,578,153.82 | ||||||
| 4.Closing balance | 1,460,270,190.66 | 3,688,653,909.35 | 2,501,319,412.56 | 226,667,519.11 | 65,987,736.60 | 38,818,861.63 | 439,923,479.76 | 8,421,641,109.67 |
| II. Accumulated depreciation | ||||||||
| 1.Opening balance | ||||||||
| 2.Increased amount of the period | ||||||||
| （1）Withdrawal | ||||||||
| 3.Decreased amount of the period | ||||||||
| （1）Disposal or scrap | ||||||||
| 4.Closing balance | ||||||||
| III. Impairment provision | ||||||||
| 1.Opening balance | 5,258,641,961.45 | 2,296,950,796.55 | 119,390,325.41 | 60,490,844.23 | 10,904,382.10 | 199,336,202.65 | 7,945,714,512.39 | |
| 2.Increased amount ofthe period | 5,506,755,459.89 | 2,576,854,192.77 | 127,572,652.36 | 66,101,797.03 | 12,501,487.79 | 215,649,300.87 | 8,505,434,890.71 | |
| （1）Withdrawal | ||||||||
| 3.Decreased amount of the period |
⑵Temporarily idle fixed assets
Nil
⑶Fixed assets through financial leasing
Nil
⑷Tenancy of fixed assets through operating lease
Nil
⑸Details of fixed assets failed to accomplish certification of property
In RMB
| Items | Book value | Reason |
| House and buildings | 89,074,691.12 | Transportation and other ancillary facilities, Not accreditation |
| House and buildings | 722,312.46 | Due to absorption, merger and reorganization, the formalities for change are in progress |
13. Project under construction
（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 | |
| Sanbao To Shuikou Expansion project | 620,706,752.60 | 620,706,752.60 | 347,299,458.95 | 347,299,458.95 | ||
| Odd project | 8,763,197.00 | 8,763,197.00 | 8,763,197.00 | 8,763,197.00 | ||
| Total | 629,469,949.60 | 629,469,949.60 | 356,062,655.95 | 356,062,655.95 | ||
(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 | Capitaliz ation of interest | Includin g: capitaliz ation of interest this period | Capitaliz ation of interest rate (%) | Source of funding |
| Sanbao | 3,426,206,660.00 | 347,299, | 273,407, | 620,706,752.60 | 29.19% | 29.19% | 20,665,801.20 | 14,731,029.23 | 4.57% | Other |
| To Shuikou Expansion project | 458.95 | 293.65 | ||||||||||
| Odd project | 8,763,197.00 | 8,763,197.00 | Other | |||||||||
| Total | 3,426,206,660.00 | 356,062,655.95 | 273,407,293.65 | 629,469,949.60 | -- | -- | 20,665,801.20 | 14,731,029.23 | -- |
Notes :
Sanbo to section expansion project has been included in the progress of the new Jiangluo line section of the total amount of river has been transferred to the fixed
amount(3)Provision for impairment of construction projects in the current period
Nil
14. Engineering material
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Signpost | 1,549,556.00 | 1,549,556.00 |
| Total | 1,549,556.00 | 1,549,556.00 |
15. Liquidation of fixed assets
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Highway mechanical and electrical equipment, etc. | 99,127.90 | |
| Total | 99,127.90 |
16. Intangible assets
(1) List of intangible assets
In RMB
| Items | Land use right | Patent right | Non-patent right | Software | Logo | Total |
| I. Original price | ||||||
| 1.Opening balance | 1,311,658.00 | 27,358,986.21 | 28,670,644.21 | |||
| 2.Increased amount of the period | -61,025.64 | -61,025.64 | ||||
| (1) Purchase | -61,025.64 | -61,025.64 | ||||
| (2)Internal Development | ||||||
| (3)Increased of Enterprise Combination | ||||||
| 3.Decreased amount of the period | ||||||
| （1）Disposal | ||||||
| Items | Land use right | Patent right | Non-patent right | Software | Logo | Total |
| 4.Closing balance | 1,311,658.00 | 27,297,960.57 | 28,609,618.57 | |||
| II.Accumulated amortization | ||||||
| 1.Opening balance | 1,311,658.00 | 20,262,551.04 | 21,574,209.04 | |||
| 2.Increased amount of the period | 1,357,657.34 | 1,357,657.34 | ||||
| (1) Withdrawal | 1,357,657.34 | 1,357,657.34 | ||||
| (2)Increased of Enterprise Combination | ||||||
| 3.Decreased amount of the period | ||||||
| （1）Disposal | ||||||
| 4.Closing balance | 1,311,658.00 | 21,620,208.38 | 22,931,866.38 | |||
| 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 | 5,677,752.19 | 5,677,752.19 | ||||
| 2.Opening book value | 7,096,435.17 | 7,096,435.17 |
At the end of the period, the proportion of intangible assets formed through internal R & D to the balance ofintangible assets is 0.00%.
⑵Details of Land use right failed to accomplish certification of property
Nil17. Long-term amortize expenses
In RMB
| Items | Balance in year-begin | Increase in this period | Amortized expenses | Other loss | Balance in year-end |
| Advertising column property insurance | 92,768.83 | 55,661.40 | 37,107.43 | ||
| Total | 92,768.83 | 55,661.40 | 37,107.43 |
18. 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 in year-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Deductible loss | 582,930,102.77 | 145,732,525.69 | 773,658,624.73 | 193,414,656.18 |
| Amortization of intangible assets | 805,761.96 | 201,440.49 | 995,735.86 | 248,933.97 |
| Asset valuation appreciation | 541,050,952.86 | 135,262,738.21 | 566,541,740.54 | 141,635,435.13 |
| Total | 1,124,786,817.59 | 281,196,704.39 | 1,341,196,101.13 | 335,299,025.28 |
(2) Deferred income tax liabilities had not been off-set
In RMB
| Items | Balance in year-end | Balance in year-begin | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Changes in fair value of available for sale financial assets | 343,472,218.24 | 85,868,054.56 | 435,221,646.40 | 108,805,411.60 |
| Deductible temporary differences in the formation of asset impairment | 527,408,001.10 | 131,852,000.28 | 607,306,748.61 | 151,826,687.15 |
| Total | 870,880,219.34 | 217,720,054.84 | 1,042,528,395.01 | 260,632,098.75 |
（3）Details of unrecognized deferred tax assets
In RMB
| Items | Closing balance | Opening balance |
| Deductible temporary differences | 92,231,097.40 | 92,288,987.75 |
| Deductible losses | 14,837,471.26 | 11,374,068.41 |
| Total | 107,068,568.66 | 103,663,056.16 |
（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 in year-begin | Remark |
| 2018 | 4,932,481.22 | 4,932,481.22 | |
| 2019 | 3,456,570.30 | 3,456,570.30 | |
| 2020 | |||
| 2021 | |||
| 2022 | 2,121,083.91 | 2,985,016.89 | |
| 2023 | 4,327,335.83 | ||
| Total | 14,837,471.26 | 11,374,068.41 | -- |
19. Other Non-current assets
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Prepaid fixed assets engineering fees | 59,594,649.15 | 39,871,644.68 |
| Advance software payment | 268,155.00 | 268,155.00 |
| Prepaid business tax | 544,645.74 | 566,594.58 |
| Prepaid land occupation tax | 19,086,895.54 | |
| Total | 79,494,345.43 | 40,706,394.26 |
20. Account payable
（1）List of Account payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year（Including 1 year） | 53,329,532.25 | 104,264,020.37 |
| 1-2 year （Including 2 years） | 104,510,224.56 | 135,095,312.76 |
| 2-3 year（Including 3 years） | 16,838,384.14 | 16,838,384.14 |
| Over 3 years | 10,635,329.23 | 10,736,309.72 |
| Total | 185,313,470.18 | 266,934,026.99 |
(2) Notes of the accounts payable aging over one year
In RMB
| Items | Balance in year-end | Unpaid reason |
| Guangdong Highway Construction Co., Ltd. | 45,980,021.00 | Unsettled |
| Heshan Land and resources Bureau | 38,186,893.60 | Unsettled |
| Foshan Land and resources Bureau | 30,507,598.21 | Unsettled |
| Guangdong Expressway Co., Ltd. | 8,746,491.18 | Unsettled |
| Luochun Street Office(Finance Office) | 1,043,431.50 | Unsettled |
| Total | 124,464,435.49 | -- |
21. Advance from customers(1) List of advance from customers
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year（Including 1 year） | 1,724,163.36 | 2,413,914.18 |
| 1-2 years（Including 2 years） | 437,978.18 | 459,858.97 |
| 2-3 years（Including 3 years） | ||
| Over 3 years | 11,442,918.43 | 11,982,340.75 |
| Total | 13,605,059.97 | 14,856,113.90 |
(2) Significant advance from customers aging over one year
In RMB
| Items | Closing balance | Unpaid/Uncarry over reason |
| Guangzhou Huanlong Expressway Co., Ltd. | 10,074,746.54 | Land rent is not in the settlement period |
| Guanghdong Xinle Technology Development Co., Ltd. | 1,232,816.45 | The Rental is not in the settlement period |
| Total | 11,307,562.99 | -- |
⑶The completion of the final construction contract has been completed and the project is not completed
Nil
22. 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 | 11,334,182.16 | 127,056,420.60 | 123,595,606.21 | 14,794,996.55 |
| II.Post-employment benefits - defined contribution plans | 14,218,112.35 | 13,483,300.03 | 734,812.32 | |
| III. Dismiss welfare | 142,050.00 | 142,050.00 | ||
| Total | 11,334,182.16 | 141,416,582.95 | 137,220,956.24 | 15,529,808.87 |
（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 | 1,630,363.29 | 91,375,434.27 | 88,491,894.81 | 4,513,902.75 |
| 2.Employee welfare | 9,386,236.81 | 9,256,635.81 | 129,601.00 | |
| 3. Social insurance premiums | 7,252,203.86 | 7,246,122.84 | 6,081.02 | |
| Including ：Medical insurance | 5,897,263.37 | 5,891,862.77 | 5,400.60 | |
| Work injury insurance | 258,307.04 | 258,192.24 | 114.80 | |
| Maternity insurance | 676,615.89 | 676,050.27 | 565.62 | |
| Supplementary medical insurance | 420,017.56 | 420,017.56 | ||
| 4.Public reserves for housing | 14,168,087.52 | 14,154,984.52 | 13,103.00 | |
| 5.Union funds and staff education fee | 9,563,059.92 | 3,861,926.04 | 3,293,917.18 | 10,131,068.78 |
| 8.Other | 140,758.95 | 1,012,532.10 | 1,152,051.05 | 1,240.00 |
| Total | 11,334,182.16 | 127,056,420.60 | 123,595,606.21 | 14,794,996.55 |
（3）List of drawing scheme
In RMB
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 10,680,495.65 | 10,672,329.73 | 8,165.92 | |
| 2.Unemployment insurance | 405,702.81 | 405,383.41 | 319.40 | |
| 3.Enterprise annuity payment | 3,131,913.89 | 2,405,586.89 | 726,327.00 | |
| Total | 14,218,112.35 | 13,483,300.03 | 734,812.32 |
23. Tax Payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| VAT | 9,747,931.67 | 14,248,594.77 |
| Enterprise Income tax | 110,623,870.14 | 404,574,001.58 |
| Individual Income tax | 236,145.51 | 6,572,617.38 |
| City Construction tax | 598,694.45 | 1,022,178.29 |
| Land use tax | 567,264.70 | 1,050,431.75 |
| Property tax | 504,258.88 | 253,014.94 |
| Education subjoin | 285,127.99 | 466,899.60 |
| Locality Education subjoin | 176,052.44 | 297,234.60 |
| Stamp tax | 37,299.64 | 63,071.56 |
| Other | 56,085.36 | 99,349.82 |
| Total | 122,832,730.78 | 428,647,394.29 |
24.Interest payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Pay the interest for long-term loans by installments. | 7,983,129.04 | 8,494,355.93 |
| Interest payable on entrusted loans | 1,349,043.75 | |
| Total | 9,332,172.79 | 8,494,355.93 |
- Particulars of significant overdue unpaid interestNil
25. Dividends payable
In RMB
| Items | Year-end balance | Year-Beginning balance |
| Common stock dividends | 18,193,409.32 | 14,340,792.20 |
| Xinyue Highway Construction Co., Ltd. | 25,000,000.00 | 12,500,000.00 |
| Total | 43,193,409.32 | 26,840,792.20 |
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 14,338,121.94yuan for more than a year in unpaid dividends to shareholders over the yearwas mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, did not share reform of shareholders to receive dividends or provide application to receive dividends the bank information is incorrect, resulting in failure to pay a dividend or refund.
26.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 | 60,947,872.26 | 36,254,269.95 |
| Deposit | 1,427,067.00 | 1,676,667.00 |
| Borrowing | 150,000,000.00 | |
| Other | 43,223,935.39 | 48,732,300.99 |
| Total | 255,598,874.65 | 86,663,237.94 |
(2) Other significant accounts payable with aging over one year
In RMB
| Items | Closing balance | Unpaid/un-carry over reason |
| Guangdong Guanyue luqiao Co., Ltd. | 2,075,848.02 | Project Quality guarantees/ Bid Gruarantees/Deposit |
| Guangdong Nengda Grade Highway Maintenance Co., Ltd. | 2,123,700.47 | Project Quality guarantee |
| Guangdong Changda Engineering Co., Ltd | 1,826,971.58 | Project Quality guarantees |
| Dongguan Yueyu Optoelectronic Technology Co., Ltd. | 1,534,850.00 | Project Quality guarantees |
| Guangdong Xinyue Traffic Investment Co., Ltd. | 1,105,843.31 | Project Quality guarantees/ Bid Gruarantees/Deposit |
| Total | 8,667,213.38 | -- |
Other notes
27. Non-current liabilities due within 1 year
In RMB
| Items | Balance year-end | Year-beginning balance |
| Long-term loans due within 1 year | 1,583,780,000.00 | 1,218,610,000.00 |
| Total | 1,583,780,000.00 | 1,218,610,000.00 |
Other notes：Long-term borrowing rate is 4.275%-5.60%。
28.Other current liabilities
In RMB
| Items | Balance year-end | Year-beginning balance |
| Tax on items to be rescinded | 689,978.75 | |
| Total | 689,978.75 |
29. Long-term loan(1) Category of long-term loan
| Items | Balance year-end | Year-beginning balance |
| Pledge loan | 199,000,000.00 | 199,000,000.00 |
| Guaranteed loans | 750,000,000.00 | 1,125,000,000.00 |
| Credit loans | 3,442,170,000.00 | 3,420,170,000.00 |
| Total | 4,391,170,000.00 | 4,744,170,000.00 |
Notes :
The Pledge loan rate is 4.275%-4.35%; the guaranteed loan interest rate is 5.6%; the credit interest rate is
4.20%-4.90%.
30. Long-term payable(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 |
31. Stock capital
In RMB
| Balance | Balance Year-beginning | Balance year-end |
| Year-beginning | Issuing of new share | Bonus shares | Transferred from reserves | Other | Subtotal | ||
| Total of capital shares | 2,090,806,126.00 | 2,090,806,126.00 |
32. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 2,508,401,790.51 | 2,508,401,790.51 | ||
| Other capital reserves | 1,667,959.25 | 3,946,375.55 | 5,614,334.80 | |
| Total | 2,510,069,749.76 | 3,946,375.55 | 2,514,016,125.31 |
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 3,951,780.00 yuan due to the change of the owner's equity of the
joint-stock company ---- Guangdong Guanghui Expressway Co., Ltd. and was decreased 5,404.45 yuan due to thechange of owner's equity of the joint-stock company ---- Guoyuan securities Co., Ltd.
33. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | ||||
| Amount for the period before income tax | Less：Previously recognized in profit or loss in other comprehensive income | Less：Income tax | After - tax attributable to the parent company | After - tax attributable to minority shareholders | |||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent | 327,263,824.17 | -96,732,906.59 | -22,937,357.04 | -73,795,549.55 | 253,468,274.62 | ||
| Incluidng: Share of other combined gains and losses that will be reclassified into profits and losses after the invested unit under the equity method | 847,589.37 | -4,983,478.43 | -4,983,478.43 | -4,135,889.06 | |||
| Gains and losses from changes in fair value of available for sale financial assets | 326,416,234.80 | -91,749,428.16 | -22,937,357.04 | -68,812,071.12 | 257,604,163.68 | ||
| Total of other comprehensive income | 327,263,824.17 | -96,732,906.59 | 0.00 | -22,937,357.04 | -73,795,549.55 | 253,468,274.62 | |
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
The initial balance and the ending balance refer to other comprehensive incomes in the balance sheet. The initial balance + other comprehensive incomes belong tothe parent company after taxes = the ending balance. The occurrence amount in the period refers to other comprehensive incomes in the profit statement, and the
occurrence amount before income tax in the period – Other comprehensive income recorded in the earlier stage and transferred into the profits and losses in thecurrent period – income taxes = other comprehensive incomes belong to the parent company after taxes + other comprehensive incomes belong to the minority
shareholders after taxes.
34. Surplus reserve
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 544,821,130.03 | 544,821,130.03 | ||
| Total | 544,821,130.03 | 544,821,130.03 |
35. Retained profits
In RMB
| Items | Amount of this period | Amount of last period |
| Before adjustments: Retained profits in last period end | 3,550,110,288.49 | 2,920,563,328.27 |
| After adjustments: Retained profits at the period beginning | 3,550,110,288.49 | 2,920,563,328.27 |
| Add：Net profit belonging to the owner of the parent company | 779,002,246.98 | 1,509,922,398.70 |
| Less: Statutory surplus reserve | 177,864,580.14 | |
| Common stock dividend payable | 1,057,947,899.76 | 702,510,858.34 |
| Retained profit at the end of this term | 3,271,164,635.71 | 3,550,110,288.49 |
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 .
36.Operation income and operation cost
In RMB
| Items | Amount of this period | Amount of last period | ||
| Income | Cost | Income | Cost | |
| Main operation | 1,518,875,852.56 | 522,317,994.54 | 1,418,719,988.26 | 523,456,284.40 |
| Other operation | 16,988,292.58 | 11,418,571.81 | 21,502,575.48 | 10,233,560.76 |
| Total | 1,535,864,145.14 | 533,736,566.35 | 1,440,222,563.74 | 533,689,845.16 |
37. Business tax and subjoin
In RMB
| Items | Amount of this period | Amount of last period |
| Urban construction tax | 2,938,753.34 | 2,760,207.40 |
| Education surcharge | 1,380,805.75 | 1,290,500.11 |
| Property tax | 661,486.13 | 677,877.95 |
| Land use tax | 603,977.11 | 767,994.64 |
| Stamp tax | 242,575.38 | 358,071.25 |
| Business tax | 25,872.66 | 26,341.89 |
| Locality Education surcharge | 920,536.09 | 860,324.55 |
| Defend expense | 384.04 | |
| Other | 79,108.53 | 154,073.23 |
| Total | 6,853,114.99 | 6,895,775.06 |
Other notes：
38. Administrative expenses
In RMB
| Items | Amount of this period | Amount of last period |
| Wage | 49,712,683.56 | 49,157,515.03 |
| Depreciation and Amortization | 5,428,661.13 | 7,247,599.37 |
| R & D expenses | 2,485,173.03 | 3,249,337.10 |
| Low consumables amortization | 279,304.70 | 245,247.83 |
| Travel expenses | 384,417.28 | 128,401.26 |
| Office expenses | 2,828,218.57 | 2,541,048.21 |
| Leased expenses | 5,606,396.14 | 5,778,380.50 |
| Items | Amount of this period | Amount of last period |
| The fee for hiring agency | 2,202,760.36 | 2,396,071.67 |
| Consultation expenses | 853,466.98 | 1,524,000.00 |
| Directorate expenses | 9,376.00 | |
| Listing fee | 11,320.76 | 11,320.76 |
| Information cost and maintenance fee | 48,300.00 | 505,424.13 |
| Other | 5,753,931.46 | 4,900,192.98 |
| Total | 75,594,633.97 | 77,693,914.84 |
Other notes：
39.Financial expenses
In RMB
| Items | Amount of this period | Amount of last period |
| Interest expenses | 125,752,286.60 | 147,292,451.79 |
| Deposit interest income（-） | -18,076,236.30 | -15,653,886.22 |
| Exchange Income and loss（Gain-） | 2,348,188.17 | -1,522,372.61 |
| Bank commission charge | 2,755,977.00 | 3,688,166.06 |
| Total | 112,780,215.47 | 133,804,359.02 |
Other notes：
40 Asset impairment loss
In RMB
| Items | Amount of this period | Amount of last period |
| I. Bad debt loss | -57,890.35 | 196,581.08 |
| Total | -57,890.35 | 196,581.08 |
Other notes：
41. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment income by equity method | 216,777,157.34 | 199,376,107.62 |
| Hold the investment income during from available-for-sale financial assets | 42,581,144.86 | 24,054,256.82 |
| Total | 259,358,302.20 | 223,430,364.44 |
Other notes：
42.Assets disposal income
In RMB
| Source | Amount of this period | Amount of last period |
| Income form disposal of fixed assets | 44,860,186.67 |
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 |
| Government Subsidy | 197,210.65 | ||
| Total gains from disposal of non-current assets | 110,018.02 | 110,018.02 | |
| Including：Gains from disposal of fixed assets | 110,018.02 | 110,018.02 | |
| Road property claim income | 736,148.53 | 822,425.45 | 736,148.53 |
| Other income(Notes) | 1,841,394.03 | 61,279,442.48 | 1,841,394.03 |
| Total | 2,687,560.58 | 62,299,078.58 |
- Government subsidy reckoned into current gains/losses
In RMB
| Subsidy items | Issuing body | Issuing reason | Nature | Whether the impact of subsidies on the current profit and loss | Whhether special subsidies | Amount of current period | Amount of previous period | Assets-related/income –related |
| Stable job subsidies | 197,210.65 | Related to income | ||||||
| Total | -- | -- | -- | -- | -- | 197,210.65 | -- |
Other notes：
Note: the other gains in this period include the early termination of toll payment compensation of59,995,667.68 yuan received from State Road 325 Jiujiang Bridge, which is included in the cash flow statementOther Cash Received Relating To Investing Activities.
44. Non-Operation expense
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & losses |
| Loss of destruction of assets | 505,483.87 | 2,629,016.43 | 505,483.87 |
| Fine | 357,855.32 | 32,684.30 | 357,855.32 |
| Other | 1,144,628.24 | 437,773.53 | 1,144,628.24 |
| Total | 2,007,967.43 | 3,099,474.26 | 2,007,967.43 |
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 | 179,094,084.83 | 203,294,551.97 |
| Deferred income tax expense | 34,127,634.02 | -223,234,633.95 |
| Total | 213,221,718.85 | -19,940,081.98 |
(2) Adjustment process of accounting profit and income tax expense
In RMB
| Items | Amount of current period |
| Total profits | 1,111,855,586.73 |
| Current income tax expense accounted by tax and relevant regulations | 277,963,896.69 |
| Effect of different tax rates on subsidiary companies | |
| Influence of income tax before adjustment | -2,858,712.81 |
| Influence of non taxable income | -64,839,575.55 |
| Impact of non-deductible costs, expenses and losses | 1,888,749.15 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | 1,067,361.37 |
| Income tax expense | 213,221,718.85 |
46. Items of Cash flow statement(1) Other cash received from business operation
In RMB
| Items | Amount of current period | Amount of previous period |
| Newwork received toll income | 38,176,722.70 | |
| Interest income | 18,076,236.30 | 15,653,886.22 |
| Unit current account | 21,370,093.68 | 6,988,367.43 |
| Total | 39,446,329.98 | 60,818,976.35 |
Notes：
Nil
（2）Other cash paid related to oprating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Management expense | 18,068,478.74 | 22,338,978.13 |
| Unit current account | 11,909,230.86 | |
| Network received toll incom | 3,803,254.03 | 2,160,313.24 |
| Total | 21,871,732.77 | 36,408,522.23 |
Notes：
Nil
（3）Other Cash received related to investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Jiujiang bridge to receive compensation | 59,995,667.68 | |
| Total | 59,995,667.68 |
Notes：
Nil
（4）Other Cash payable related to investment activities
Nil
（5）Other Cash received related to Financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest discount | 2,500,000.00 |
| Total | 2,500,000.00 |
Notes：
⑹Other Cash payable related to financing activities
Nil47. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
| Supplement Information | Amount of current period | Amount of previous period |
| I. Adjusting net profit to cash flow from operating activities | -- | -- |
| Net profit | 898,633,867.88 | 990,512,139.32 |
| Add: Impairment loss provision of assets | -57,890.35 | 196,581.08 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 398,876,127.65 | 409,188,339.82 |
| Amortization of intangible assets | 1,318,922.34 | 1,772,083.08 |
| Amortization of Long-term deferred expenses | 55,661.40 | 906,502.02 |
| Loss on disposal of fixed assets, intangible assets and other long-term deferred assets | -44,860,186.67 | |
| Fixed assets scrap loss | 395,465.85 | 2,629,016.43 |
| Financial cost | 128,100,474.77 | 145,770,079.18 |
| Loss on investment | -259,358,302.20 | -223,430,364.44 |
| Decrease of deferred income tax assets | 54,102,320.89 | -211,984,848.18 |
| Increased of deferred income tax liabilities | -42,912,043.91 | -11,249,785.77 |
| Decrease of inventories | -139,076.49 | |
| Decease of operating receivables | -4,522,183.33 | -40,231,085.00 |
| Increased of operating Payable | -312,353,569.73 | -41,686,422.17 |
| Net cash flows arising from operating activities | 817,279,588.10 | 1,022,392,235.37 |
| Supplement Information | Amount of current period | Amount of previous period |
| II. Significant investment and financing activities that without cash flows: | -- | -- |
| 3．Movement of cash and cash equivalents： | -- | -- |
| Ending balance of cash | 1,821,466,139.37 | 2,596,273,900.39 |
| Less: Beginning balance of cash equivalents | 2,363,042,700.42 | 2,603,279,644.25 |
| Net increase of cash and cash equivalents | -541,576,561.05 | -7,005,743.86 |
(2) Net Cash paid of obtaining the subsidiary
Nil
(3) Net Cash receive of disposal of the subsidiary
Nil
（4）Composition of cash and cash equivalents
In RMB
| Items | Balance in year-end | Balance in year-Beginning |
| I. Cash | 1,821,466,139.37 | 2,363,042,700.42 |
| Of which: Cash in stock | 82,371.11 | 66,065.04 |
| Bank savings could be used at any time | 1,820,722,446.96 | 2,362,279,050.70 |
| Other monetary capital could be used at any time | 661,321.30 | 697,584.68 |
| III. Balance of cash and cash equivalents at the period end | 1,821,466,139.37 | 2,363,042,700.42 |
Other notes：
Nil
48. Note of statement of changes in the owner's equityExplain "other" project name and adjustment amount of the adjustment of closing balance in previous year,
etc.:Nil49. The assets with the ownership or use right restricted
Other notes：
Up to June 30, 2018, Jingzhu Expressway Guangzhu Section Co., Ltd., the controlling grandchildrencompany of the Company, with the toll collection right of Panyu Tangkeng-Zhuhai Jinding section project inJingzhu expressway, asked for 449,000,000.00 yuan of loan from Guangzhou Wuyang Branch of ICBC to provide
pledge guarantee(of which the non-current debt balance with 1-year expiration was 250,000,000.00 yuan and thelong-term loan balance was 199,000,000.00 yuan).
50. Foreign currency monetary items
(1) Foreign currency monetary itemsNil
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□ Applicable √ Not applicable
VIII.Changes of consolidation scope1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting periodNil。
(2) Consolidation Cost and Goodwill
Nil。
(3) The identifiable assets and liabilities of acquiree at purchase dateNil
（4）Gains or losses of the equity held before prurchasing date, arising from re-measured byfair value
Realized enterprise combine step by step through multi-trading and dealing obtained controlling rights in period
□ Yes √No（5）On purchasing date or current combine period, fails to determine the combination consideration or acquiree’s
fair value ofidentifiable assets and liabilities rationallyNil
（6）Other notes
2.Enterprise consolidation under the same control
（1）Merger of enterprises under the same control that occurred in the current period
Nil
（2）Combined cost
Nil
（3）Book value of assets and liabilities of party to be consolidated on the date of consolidation
Nil3. Counter purchaseBasic information of transactions , basis of transactions constituting counter purchase, whether assets and
liabilities reserved by listedcompanies constituting business and their basis, confirmation of combined cost, theamount occurred when adjusting rights and interests in accordance with equity transaction and its calculation
Nil
4. The disposal of subsidiaryWhether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
Dispose subsidiary step by step throuth multi-dealings and losing controlling rights in the period
□ Yes √ No
5. Other reasons for the changes in combination scopeNotes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant informationNil
6.OtherNil
IX. 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 | |||||
| Guangdong Fokai Expressway Co., Ltd. | Foshan | Guangzhou | Expressway Management | 100.00% | Under the same control business combination | |
| Guangfo Expressway Co., Ltd. | Guangzhou | Guangzhou | Expressway Management | 75.00% | Under the same control business 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.（Notes） | 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:NilBasis of holding half or less voting rights but still been controlled investee and holding more than half of thevoting rights not been controlled investee:NilSignificant structure entities and controlling basis in the scope of combination:NilBasis of determine whether the Company is the agent or the principal: Nil
Other notes：
Jingzhu Expressway Guangzhu Section Co., Ltd. is a non-wholly owned subsidiary of Guangzhou GuangzhuTraffic Investment Management Co., Ltd.
(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% | 35,608,835.93 | 53,528,891.62 | 109,373,543.63 |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 25.00% | 84,022,784.97 | 144,223,171.04 | 243,545,577.61 |
Holding proportion of minority shareholder in subsidiary different from voting proportion:Nil
Nil
(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. | 472,299,438.17 | 20,952,248.13 | 493,251,686.30 | 55,757,511.78 | 55,757,511.78 | 544,211,527.04 | 21,454,392.65 | 565,665,919.69 | 56,491,522.41 | 56,491,522.41 | ||
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 278,137,611.59 | 2,401,595,681.34 | 2,679,733,292.93 | 606,795,297.17 | 1,098,755,685.26 | 1,705,550,982.43 | 168,092,185.25 | 2,692,035,039.19 | 2,860,127,224.44 | 526,412,997.55 | 1,118,730,372.13 | 1,645,143,369.68 |
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. | 226,325,833.32 | 142,435,343.71 | 142,435,343.71 | 145,431,353.01 | 201,131,785.00 | 98,378,474.42 | 98,378,474.42 | 129,165,512.93 |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 645,871,184.09 | 336,091,139.89 | 336,091,139.89 | 433,240,710.71 | 631,857,976.08 | 292,278,032.76 | 292,278,032.76 | 443,338,931.03 |
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debtNil(5) Provide financial support or other support for structure entities incorporate into the scope ofconsolidated financial statementsNil
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary（1）Description of changes in share of owners' equity in subsidiaries
Nil
（2）The influence of transaction on minority shareholders' equity and ownership of parent company
Nil3. 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, Jiangxi | Gangzhou, Jiangxi | Expressway Management | 30.00% | Equity method | |
| 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 | |
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Nil
Basis 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 and Guangyuan Securities Co.,
Ltd... holds 20% of the voting rights, but has the power to participate in making decisions on their financial and op
erating 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. | Zhaoqing Yuezhao Highway Co., Ltd. | Guangdong Guanghui Expressway Co., Ltd. | Zhaoqing Yuezhao Highway Co., Ltd. | |
| Current assets | 1,010,036,752.52 | 94,167,495.08 | 398,201,907.66 | 217,772,715.63 |
| Including：Cash and cash equivalent | 439,281,500.91 | 75,926,440.69 | 119,447,466.86 | 199,426,500.59 |
| Non-current assets | 3,859,333,751.56 | 1,622,591,424.78 | 4,288,934,082.82 | 1,780,232,314.01 |
| Total assets | 4,869,370,504.08 | 1,716,758,919.86 | 4,687,135,990.48 | 1,998,005,029.64 |
| Current liabilities | 412,511,339.43 | 123,542,015.68 | 330,054,720.57 | 178,262,191.50 |
| Non-current liabilities | 956,222,984.63 | 483,404,091.87 | 1,144,392,235.39 | 626,350,940.66 |
| Total liabilities | 1,368,734,324.06 | 606,946,107.55 | 1,474,446,955.96 | 804,613,132.16 |
| Attributable to shareholders of the parent company | 3,500,636,180.02 | 1,109,812,812.31 | 3,212,689,034.52 | 1,193,391,897.48 |
| Share of net assets calculated by stake | 1,050,190,854.01 | 277,453,203.08 | 963,806,710.36 | 298,347,974.37 |
| Book value of equity investment in joint ventures | 1,050,190,854.01 | 277,453,203.08 | 963,806,710.36 | 298,347,974.37 |
| Operating income | 878,931,209.54 | 264,667,911.36 | 856,966,099.09 | 247,342,570.61 |
| Financial expenses | 18,892,654.01 | 11,944,947.35 | 24,124,233.53 | 14,270,879.40 |
| Income tax expenses | 152,535,401.50 | 39,485,100.11 | 142,913,805.63 | 34,089,839.29 |
| Net profit | 447,126,957.50 | 114,543,781.53 | 427,632,054.17 | 100,385,189.33 |
| Total comprehensive income | 447,126,957.50 | 114,543,781.53 | 427,632,054.17 | 100,385,189.33 |
| Dividends received fromjoint ventures this year | 37,805,847.20 | 43,088,859.48 | 81,106,373.29 | 55,172,678.59 |
(3) Main financial information of significant associated enterprise
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |||||||||||
| Shenzhen Huiyan Expressway Co., Ltd. | Guangdong Jiangzhong Expressway Co., Ltd. | Ganzhou Kangda Expressway | Ganzhou Gankang Expressway Co., Ltd. | Guangdong Yueke Technology Petty Loan Co., Ltd | Guoyuan Securities Co., Ltd. | Shenzhen Huiyan Expressway Co., Ltd. | Guangdong Jiangzhong Expressway Co., Ltd. | Ganzhou Kangda Expressway | Ganzhou Gankang Expressway Co., Ltd. | Guangdong Yueke Technology Petty Loan Co., Ltd | Guoyuan Securities Co., Ltd. | |
| Current assets | 405,207,810.22 | 248,231,394.20 | 42,966,757.14 | 233,084,279.62 | 1,652,472,098.57 | 49,397,674,847.66 | 430,404,563.50 | 147,279,650.98 | 21,995,366.33 | 208,757,705.55 | 1,573,602,864.36 | 45,296,573,799.43 |
| Non-current assets | 269,450,654.70 | 1,580,794,827.17 | 1,486,108,682.60 | 1,402,532,326.66 | 40,071,899.26 | 34,336,691,453.00 | 190,289,654.66 | 1,697,555,010.40 | 1,509,053,324.26 | 1,434,291,913.76 | 40,112,141.62 | 34,917,940,371.90 |
| Total assets | 674,658,464.92 | 1,829,026,221.37 | 1,529,075,439.74 | 1,635,616,606.28 | 1,692,543,997.83 | 83,734,366,300.66 | 620,694,218.16 | 1,844,834,661.38 | 1,531,048,690.59 | 1,643,049,619.31 | 1,613,715,005.98 | 80,214,514,171.33 |
| Current liabilities | 32,625,265.20 | 141,621,528.98 | 50,492,867.09 | 103,913,052.05 | 310,168,218.91 | 48,028,217,706.35 | 32,102,623.52 | 129,152,634.01 | 100,119,184.60 | 114,676,781.53 | 236,708,624.01 | 36,083,651,550.94 |
| Non-current Liabilities | 510,000,000.00 | 736,557,033.78 | 840,187,164.64 | 2,005,000.00 | 10,818,777,059.82 | 559,000,000.00 | 735,033,096.47 | 847,023,826.63 | 2,006,250.00 | 18,738,432,070.64 | ||
| Total liabilities | 32,625,265.20 | 651,621,528.98 | 787,049,900.87 | 944,100,216.69 | 312,173,218.91 | 58,846,994,766.17 | 32,102,623.52 | 688,152,634.01 | 835,152,281.07 | 961,700,608.16 | 238,714,874.01 | 54,822,083,621.58 |
| MinorityShareholders’ Equity | 265,639,882.10 | 11,146,865.79 | 297,258,467.45 | 12,064,185.84 | ||||||||
| Shareholders’ equity | 642,033,199.72 | 1,177,404,692.39 | 742,025,538.87 | 691,516,389.59 | 1,114,730,896.82 | 24,876,224,668.70 | 588,591,594.64 | 1,156,682,027.37 | 695,896,409.52 | 681,349,011.15 | 1,077,741,664.52 | 25,380,366,363.91 |
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |||||||||||
| Shenzhen Huiyan Expressway Co., Ltd. | Guangdong Jiangzhong Expressway Co., Ltd. | Ganzhou Kangda Expressway | Ganzhou Gankang Expressway Co., Ltd. | Guangdong Yueke Technology Petty Loan Co., Ltd | Guoyuan Securities Co., Ltd. | Shenzhen Huiyan Expressway Co., Ltd. | Guangdong Jiangzhong Expressway Co., Ltd. | Ganzhou Kangda Expressway | Ganzhou Gankang Expressway Co., Ltd. | Guangdong Yueke Technology Petty Loan Co., Ltd | Guoyuan Securities Co., Ltd. | |
| attributable to shareholders of the parent | ||||||||||||
| Pro rata share of the net assets calculated | 214,011,066.57 | 176,610,703.86 | 222,607,661.66 | 207,454,916.88 | 222,946,179.36 | 588,390,445.65 | 196,197,198.21 | 173,502,304.11 | 208,768,922.86 | 204,404,703.35 | 215,548,332.90 | 600,314,769.41 |
| --Goodwill | 206,725,818.02 | 206,725,818.02 | ||||||||||
| The book value of equity investments in joint ventures | 214,011,066.57 | 176,610,703.86 | 222,607,661.66 | 207,454,916.88 | 222,946,179.36 | 795,116,263.67 | 196,197,198.21 | 173,502,304.11 | 208,768,922.86 | 204,404,703.35 | 215,548,332.90 | 807,040,587.43 |
| Fair value of equity investment of associated enterprises with open | 589,054,696.40 | 875,621,846.00 | ||||||||||
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |||||||||||
| Shenzhen Huiyan Expressway Co., Ltd. | Guangdong Jiangzhong Expressway Co., Ltd. | Ganzhou Kangda Expressway | Ganzhou Gankang Expressway Co., Ltd. | Guangdong Yueke Technology Petty Loan Co., Ltd | Guoyuan Securities Co., Ltd. | Shenzhen Huiyan Expressway Co., Ltd. | Guangdong Jiangzhong Expressway Co., Ltd. | Ganzhou Kangda Expressway | Ganzhou Gankang Expressway Co., Ltd. | Guangdong Yueke Technology Petty Loan Co., Ltd | Guoyuan Securities Co., Ltd. | |
| quotation | ||||||||||||
| Buinsess incme | 121,958,669.64 | 238,655,329.27 | 113,055,381.54 | 78,967,126.91 | 91,160,960.52 | 1,109,717,564.95 | 111,790,599.41 | 230,951,536.63 | 124,080,732.78 | 71,517,295.42 | 82,267,976.87 | |
| Net profit | 53,441,605.08 | 45,984,003.63 | 46,129,129.35 | 10,167,378.44 | 36,989,232.30 | 211,597,500.90 | 48,844,131.82 | 45,616,389.11 | 49,684,621.82 | 3,931,224.57 | 44,169,388.24 | |
| Other comprehensive income | -210,693,647.23 | |||||||||||
| Total comprehensive income | 53,441,605.08 | 45,984,003.63 | 46,129,129.35 | 10,167,378.44 | 36,989,232.30 | 903,853.67 | 48,844,131.82 | 45,616,389.11 | 49,684,621.82 | 3,931,224.57 | 44,169,388.24 | |
| Dividends received from associates during the year | 3,789,200.79 | 11,940,297.90 | ||||||||||
(4) Summary financial information of insignificant joint venture or associated enterpriseNil
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer fundsto the CompanyNil
（6）The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investmentNil(8) Contingent liabilities related to joint venture or associated enterprise investment
Nil
4. Significant common operation
Nil
5. Equity of structure entity not including in the scope of consolidated financial statements
Notes：
Nil
6.Other
Nil
X. Risks Related to Financial InstrumentsThe major financial instruments of the company include monetary capital, accounts receivable and accountspayable. These financial instruments are primarily related to operating and financing. For the details of thefinancial instruments, please refer to the related projects in Notes 5. The risk relevant to these financialinstruments and the risk management policy adopted by the company for reducing these risks are described asbelow:
1. Credit RiskThe credit risk means that the party of the financial instrument fails to perform the obligations, and the risk of thefinancial loss is caused for the other party. The company is mainly facing the customer credit risk due to the creditsale. In order to reduce the credit risk, the company only makes transactions with the recognized and reputablecustomers, and carries out the continuous monitoring of accounts receivable through monitoring the credit of theexisting customers and the aging analysis, in order to ensure the company not facing the risk of bad debts andcontrol the overall credit risk within the controllable range.
2. Interest Rate RiskThe interest rate risk refers to the fluctuation risk appearing for the fair value of financial instruments or futurecash flows due to the changes in market interest rate. The interest rate risk faced by the company is mainly fromthe bank borrowings. Through the establishment of good relations between banks and enterprises, the companymakes the reasonable design of credit range, credit variety and credit limit to guarantee the sufficient credit rangeof the banks and meet the financing demands. Shortening the duration of single borrowings and especially statingthe prepayment terms is to reasonably reduce the risk of the interest rate fluctuations.3. Foreign Exchange RiskThe foreign exchange risk refers to the fluctuation risk appearing for the fair value of financial instruments orfuture cash flows due to the changes in foreign exchange rate. The company matches the income and expenditureof foreign currency as far as possible in order to reduce the foreign exchange risk. During the reporting period, thecompany has little effect on the foreign exchange risk due to the short credit term of revenue and expenditurerelated to the foreign currency.4. Liquidity RiskThe liquidity risk means that the risk of the shortage of funds occurs when the settlement obligations by thedelivery of the cash or other financial assets are fulfilled by the company. The policy of the company is to ensurethe sufficient cash for repaying the matured debts. The liquidity risk is under the centralized control of Financedepartment of the company, and Finance department shall guarantee the company having the sufficient funds torepay the debts under any reasonable forecast through monitoring the cash balance, the marketable securitiesavailable to be cash and the rolling forecast for the cash flow of the next six months.5. Other Price RiskThe company holds the equity investment of other listed companies, and the management believes that theseinvestments facing the market price risk is acceptable. For the equity investment of other listed companies held by
the company, please refer to “Available-for-Sale Financial Assets in Article 8 of Consolidated FinancialStatement in Notes 5 of Financial Statements”.
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 | -- | -- | -- | -- |
| （II）Available-for-sale Financial Assets | 861,033,095.04 | 861,033,095.04 | ||
| （2）Equity instrument investment | 861,033,095.04 | 861,033,095.04 | ||
| Total of Consistent fair value measurement | 861,033,095.04 | 861,033,095.04 | ||
| II.Non-continuous measurement fair value | -- | -- | -- | -- |
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 Bank
According to the closing price of June 30, 2018 of 3.66 yuan, the final calculation of fair value was861,033,095.04 yuan.3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2.Nil
4. Sensitiveness analysis on unobservable parameters and adjustment information between opening andclosing book value of consistent fair value measurement items at level 3.Nil
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening andclosing book value of consistent fair value measurement items at level 3.Nil
6. Explain the reason for conversion and the policy governing when the conversion happens if conversionhappens among consistent fair value measurement items at different levelsNil7. Changes in the valuation technique in the current period and the reason for changeNil8. Fair value of financial assets and liabilities not measured at fair valueNil9.OtherXII. 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 | No.83,85, Baiyun Road, Yuexiu District, Guangzhou | Equity management, traffic infrastructure construction and railway project operation | 2,680,000.00 | 24.55% | 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 June 30, 2018,Registered capital: 26.8 billion yuan. It is a
solely state-owned limited company. Business scope：equity management, organization of asset reorganization and
optimized allocation, raising funds by means including mortgage, transfer of property rights and joint 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
（if the above mentioned business scope requires licenses to operate, then operation licenses are required）.
The finial control of the Company was State owned assets supervision and Administration Commission ofGuangdong Provincial People's Government.
Other notes：
Nil
2.Subsidiaries of the CompanySubsidiaries of this enterprise, see Note IX the rights of other entity3. Information on the joint ventures and associated enterprises of the Company
The details Notes IX of significant joint venture and associated enterprise of the CompanyInformation 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:
Nil4. Other Related parties
| Name | Relation with the Company |
| Guangdong Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Chaohui Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Kaiyang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Maozhan Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Yangmao Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Guangle Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Jiangzhao Expressway Management Center | Managed by the parent company |
| Guang-Shen-Zhu Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Name | Relation with the Company |
| Guangdong Jiangzhong Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong West Coastal Expressway Xinhui Section Co., Ltd | Fully owned subsidiary of the parent company |
| Guangdong West Coastal Expressway Zhuhai Section Co., Ltd | Fully owned subsidiary of the parent company |
| Guangdong Guangzhu West Line Expressway Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Yunfu Guangyun Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Taishan Coastal Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Guanghui Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Highway Construction Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Xinyue Traffic Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Litong Technology Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Humen Bridge Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Guangdong Yueyun Traffic Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Boda Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Baomao Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Guangfozhao Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Nanyue Traffic Shaogan Expressway Management Center | Managed by the parent company |
| Guangzhongjiang Expressway Project Management | Managed by the parent company |
| Guangdong Yuedong Expressway Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Road & Bridge Construction Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Shanfen Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Zhaoyang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Hualu Traffic Technology Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Expressway Media Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Tongyi Expressway Service Area Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Union Electron Service Co., ltd. | Fully owned subsidiary of the parent company |
| Guangdong Changda Highway Engineering Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Lulutong Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Litong Investformation Technology Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Name | Relation with the Company |
| Guangdong Gaoda Property Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Pingxing Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Luoyang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Hehui Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Heyuan Helong Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Two Guang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong West coastal Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Zhongshan Yueyun Airoort Express Passenger Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong East Thinking Management Technology Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangzhou Yueyun Traffic Co., Ltd. | Fully owned subsidiary of the parent company |
| Xinyue Highway Construction Co., Ltd. | Minority shareholders of the holding Sun-Subsidiarie |
| Guangdong Meihe Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Litong Real Estate Co., Ltd. | Fully owned subsidiary of the parent company |
Other notes
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor serviceAcquisition 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 Unionelectronic services co., Ltd. | Service | 8,075,494.51 | |||
| Guangdong Litong Technology Investment Co., Ltd. | Project fund | 784,739.50 | 203,850.00 | ||
| Guangdong Humen Bridge Co., Ltd. | Project fund,service | 539,307.09 | |||
| Guangdong Tongyi Expressway Service Area Co., Ltd | service | 259,399.97 |
| Guangdong Lulutong Co., Ltd. | Project fund | 25,393.54 | |||
| Guangdong Changda Highway Engineering Co., Ltd. | Project fund | 4,238,698.53 | |||
| Guangdong Xinyue traffic Investment Co., Ltd. | Project fund | 55,800.00 | |||
| Guangdong Guanghui Expressway Co., Ltd. | Interest | 1,349,043.75 | |||
| Ganzhou Gangkang Expressway Co., Ltd. | Interest | 765,623.34 | 1,051,109.99 | ||
| Guangdong Expressway Media Co., Ltd. | service | 606,132.08 | |||
| Guangdong East Thinking Management Technology Development Co., Ltd. | service | 60,000.00 | 178,066.11 | ||
| Guangdong Changda Highway Engineering Co., Ltd. | Purchasing assets | 34,838,755.49 | 1,924,312.81 | ||
| Guangdong Hualu Traffic Technology Co., Ltd. | Purchasing assets | 1,548,686.53 | |||
| Guangdong Xinyue Traffic Investment Co., Ltd. | Purchasing assets | 36,761.81 | |||
| Guangdong Changda highway Co., Ltd. | Project fund | 634,217.37 |
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 | 8,092,547.17 | 7,852,830.20 |
| Guangdong Expressway Co., Ltd. | Project fund | 2,192,131.13 | 2,094,489.63 |
| Guangdong Luqiao Construction Development Co., Ltd. | Project fund | 267,452.83 | 162,735.84 |
| Guangdong Guangzhu West Line Expressway Co., Ltd. | Project fund | 234,905.66 | 449,056.61 |
| Guangdong Chaohui Expressway Co., Ltd. | Project fund | 192,452.83 | 192,452.83 |
| Guangdong Guangfozhao Expressway Co., Ltd. | Project fund | 154,245.28 | 141,509.43 |
| Guangdong Guanghui Expressway Co., Ltd. | Project fund | 144,339.62 | 147,169.81 |
| Guangdong Guangle Expressway Co., Ltd. | Project fund | 142,924.53 | 200,943.40 |
| Guangdong Kaiyang Expressway Co., Ltd. | Project fund | 134,035.68 | 235,922.47 |
| Guangdong Boda Expressway Co., Ltd. | Project fund | 117,452.83 | 106,132.08 |
| Guangdong Highway Construction Co., Ltd. | Project fund | 116,037.74 | |
| Zhaoqing Yuezhao Highway Co., Ltd. | Project fund | 101,886.79 | 192,452.83 |
| Guangzhongjiang Expressway Project Management | Project fund | 89,622.64 | |
| Guangdong Jiangzhong Expressway Co., Ltd. | Project fund | 82,075.47 | 83,490.57 |
| Guangdong West Coastal Expressway Zhuhai Section Co., Ltd. | Project fund | 80,660.38 | 107,547.17 |
| Guangdong Taishan Coastal Expressway Co., Ltd. | Project fund | 59,433.96 | |
| Guangdong Litong Technology Investment Co., Ltd. | Project fund | 35,384.62 | 95,000.00 |
| Yunfu Guangyun Expressway | Project fund | 35,377.36 | 28,301.89 |
| Co., Ltd. | |||
| Guangdong Humen Bridge Co.,Ltd. | Project fund | 26,886.79 | 19,811.32 |
| Shenzhen Huiyan Expressway Co., Ltd. | Project fund | 26,886.79 | 64,622.64 |
| Guangdong Yueyun Traffic Co.,Ltd. | Project fund | 21,226.42 | 51,415.10 |
| Guangdong West Coastal Expressway Xinhui Section Co., Ltd. | Project fund | 15,566.04 | 7,075.47 |
| Guang-Shen-Zhu Expressway Co., Ltd. | Project fund | 594,339.64 | |
| Guangdong Xinyue Traffic Investment Co., Ltd. | Project fund | 259,260.13 |
Notes
（2）Related trusteeship/contract
Nil
（3）Information of related leaseThe 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 Expressway Media Co., Ltd. | Advertising lease | 1,748.41 | 1,151,248.50 |
| Guangdong Tongyi Expressway Service Area Co., Ltd. | Service Area Lease | 1,689,033.25 |
The company was lessee：
In RMB
| Lessor | Category of leased assets | The lease income confirmed in this year | Category of leased assets |
| Guangdong Litong Property Investment Co., Ltd | Office space | 4,406,113.37 | 4,900,613.34 |
| Guangdong Guanghui Expressway Co., Ltd. | Advertising column lease | 884,200.00 | |
| Zhaoqing Yuezhao Highway | Advertising column lease | 124,031.25 |
| Co., Ltd. | |||
| Guangzhou Yueyun Traffic Co., Ltd. | Car Rental | 97,530.00 | |
| Guangdong Gaoda Property Development Co., Ltd. | Office space | 7,230.00 | |
| Guangdong Highway Construction Co., Ltd. | Office space | 109,182.36 |
Notes
（4）Related-party guarantee
The Company was GuarantorNilThe Company was secured party
In RMB
| Guarantor | Guarantee amount | Start date | End date | Execution accomplished or not |
| Guangdong Communication Group Co., Ltd. | 1,725,000,000.00 | September 25,2012 | March 25,2020 | No |
Notes:
Controlling shareholder Guangdong Communication Group Co., Ltd. accepted Pacific Asset Management Co.,Ltd. insurance debt investment plan to provide joint liability guarantee of principal and interest in full and
unconditional irrevocable. The company held Guangzhou Guangzhu Traffic Investment Management Co., Ltd.
75% stake in Guangdong Communication Group Co., Ltd. to provide a counter-guarantee.(5) Inter-bank lending of capital of related parties
In RMB
| Related party | Amount borrowed and loaned | Initial date | Due date | Notes |
| Borrowed | ||||
| Ganzhou Gankang Expressway Co., Ltd. | 50,000,000.00 | February 2,2018 | June 3,2018 | |
| Guangdong Guanghui Expressway Co., Ltd. | 105,000,000.00 | March 22,2018 | September 21,2018 | |
| Guangdong Guanghui Expressway Co., Ltd. | 45,000,000.00 | May 22,2018 | May 21,2019 | |
| Loaned | ||||
(6) Related party asset transfer and debt restructuring
Nil
(7) Rewards for the key management personnel
Ten thousand yuan
| Items | Amount of current period | Amount of previous period |
| Rewards for the key management personnel | 241.51 | 205.84 |
(8) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
| Items | Amount of current period | Amount of previous period |
| Balance of Deposit | 381,881,836.28 | 366,841,521.49 |
| Interest Income | 3,752,689.53 | |
| Pricing Principle | Refer to deposit interest rate at the corresponding period of Bank of China | |
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 was
convened. 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 | ||
| Account receivable | Guangdong Union electron Servce Co., Ltd. | 43,102,039.46 | 45,447,260.32 | ||
| Account receivable | Guangdong Humen Bridge Co., Ltd. | 27,048,223.47 | 9,425,822.31 | ||
| Account receivable | Jingzhu Expressway Guangzhu North Section Co., Ltd. | 4,447,474.99 | 4,821,700.01 | ||
| Account receivable | Guangdong Expressway Co., Ltd. | 2,588,022.00 | 1,274,749.50 | ||
| Account receivable | Guangdong Xinyue Traffic Investment Co., Ltd. | 2,154,432.04 | 123,048.52 | 3,848,556.04 | 65,052.00 |
| Account receivable | Guanghui Expressway Co., Ltd. | 341,639.00 | 4,025,633.55 | ||
| Account receivable | Guangdong Road & Bridge Development Co., Ltd. | 283,500.00 | |||
| Account receivable | Guangdong Kaiyang Expressway Co., Ltd. | 312,321.40 | 4,425.00 | 379,837.72 | |
| Account receivable | Guangdong West coastal Expressway Zhuhai Section Co., Ltd. | 269,694.00 | 55,258.20 | 352,194.00 | 55,258.00 |
| Account receivable | Guangdong Guangzhu West Line Expressway Co., Ltd. | 249,000.00 | 356,850.40 | ||
| Account receivable | Guangdong Chaohui Expressway Co., Ltd. | 204,000.00 | |||
| Account receivable | Guangdong Guangfozhao Expressway Co., Ltd. | 163,500.00 | |||
| 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 Guangle Expressway Co., Ltd. | 151,500.00 | |||
| Account receivable | Guangdong Boda Expressway Co., Ltd. | 124,500.00 | |||
| Account receivable | Guangdong Highway Construction Co., Ltd. | 123,000.00 | 207,000.00 | ||
| Account receivable | Guangdong Road & Bridge Development Co., Ltd. | 111,000.00 | |||
| Account receivable | Zhaoqing Yuezhao Highway Co., Ltd. | 108,000.00 | |||
| Account receivable | Guangdong Zhongjiang Expressway Project Management | 95,000.00 | |||
| Account receivable | Guangdong Jiangzhong Expressway Co., Ltd. | 87,000.00 | |||
| Account receivable | Guangdong LitongTechnology Investment Co., Ltd. | 68,542.00 | 6,854.20 | 201,342.00 | |
| Account receivable | Guangdong Taishan coastal Expressway Co., Ltd. | 63,000.00 | |||
| Account receivable | Guangdong West coastal Expressway Xinhui Section Co., Ltd. | 50,610.00 | 10,233.00 | 67,110.00 | 10,233.00 |
| Account receivable | Yunfu Guangyun Expressway Co., Ltd. | 37,500.00 | |||
| 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 West coastal Expressway Co., Ltd. | 30,000.00 | 3,000.00 | 30,000.00 | 2,830.00 |
| Account receivable | Shenzhen Huiyan Expressway Co., Ltd. | 28,500.00 | |||
| Account receivable | Guangdong Yueyun Traffic Co., Ltd. | 22,500.00 | |||
| Account receivable | Guangdong Expressway Media Co., Ltd. | 1,799,600.00 | |||
| Account receivable | Guang-Shen-Zhu Exparessway Co., Ltd. | 189,000.00 | |||
| Account receivable | Guangdong Nanyue Traffic Shaogan Expressway Management Center | 179,424.00 | |||
| Account receivable | Guangdong Maozhan Expressway Co., Ltd. | 166,196.80 | |||
| Account receivable | Guangdong Baomao Exparessway Co., Ltd. | 145,038.40 | |||
| Account receivable | Guangdong Yuedong Expressway Development Co., Ltd. | 139,976.80 | |||
| Advanced payment | Zhaoqing Yuezhao Highway Co., Ltd. | 20,671.75 | 144,703.00 | ||
| Advanced payment | Guangdong Litong Property Investment Co., Ltd. | 700,087.62 | |||
| Other Account receivable | Guangdong Litong Property Investment Co., Ltd. | 1,505,864.00 | 1,505,864.00 | ||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Other Account receivable | Guangdong Guanghui Expressway Co., Ltd. | 1,429,667.72 | 1,463,995.66 | ||
| Other Account receivable | Guangdong Expressway Co., Ltd. | 592,083.28 | 597,164.23 | ||
| Other Account receivable | Zhaoqing Yuezhao Highway Co., Ltd. | 415,614.00 | 427,478.09 | ||
| Other Account receivable | Guangdong Xinyue Traffic Investment Co., Ltd. | 415,442.60 | 415,442.60 | ||
| Other Account receivable | Guangdong Guangzhu West Line Expressway Co., Ltd. | 186,876.77 | 187,560.16 | ||
| Other Account receivable | Guang-Shen-Zhu Expressway Co., Ltd. | 185,014.40 | 223,371.78 | ||
| Other Account receivable | Guangdong Expressway Media Co., Ltd. | 120,568.54 | 1,213,926.84 | ||
| Other Account receivable | Guangdong Highway Construction Co., Ltd. | 107,494.67 | 115,058.75 | ||
| Other Account receivable | Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 63,502.68 | 63,612.63 | ||
| Other Account receivable | Guangdong Humen Bridge Co., Ltd. | 55,981.31 | 58,139.05 | ||
| Other Account receivable | Guangdong Guangle Expressway Co., Ltd. | 55,870.49 | 104,353.10 | ||
| Other Account receivable | Guangdong Boda Expressway Co., Ltd. | 51,808.80 | 52,689.46 | ||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Other Account receivable | Guangdong Road & Bridge Construction Development Co., Ltd. | 44,713.74 | 93,172.08 | ||
| Other Account receivable | Guangdong West Coastal Expressway Zhuhai section Co., Ltd | 40,967.05 | 40,967.05 | ||
| Other Account receivable | Guangdong Jiangzhong Expressway Co., Ltd. | 28,120.00 | 28,942.41 | ||
| Other Account receivable | Guangdong Gaoda Property Development Co., Ltd. | 21,688.70 | 9,940.70 | ||
| Other Account receivable | Guangdong Yangmao Expressway Co., Ltd. | 9,088.02 | 46,778.36 | ||
| Other Account receivable | Guangdong Maozhan Expressway Co., Ltd. | 8,747.20 | 17,591.49 | ||
| Other Account receivable | Guangdong Shanfen Expressway Co., Ltd. | 8,028.80 | 8,028.80 | ||
| Other Account receivable | Guangdong Baomao Expressway Co., Ltd. | 7,633.60 | 7,633.60 | ||
| Other Account receivable | Guangdong Yuedong Expressway Development Co., Ltd. | 7,367.20 | 7,367.20 | ||
| Other Account receivable | angdong West coastal Expressway Xinhui Section Co., | 5,753.20 | 5,753.20 | ||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Ltd. | |||||
| Other Account receivable | Guangdong LitongTechnology Investment Co., Ltd. | 5,273.00 | 5,273.00 | ||
| Other Account receivable | Guangdong Zhaoyang Expressway Co., Ltd. | 4,304.00 | 4,309.15 | ||
| Other Account receivable | Yunfu Guangyun Expressway Co., Ltd. | 3,565.19 | 11,628.49 | ||
| Other Account receivable | Guangdong Yueyunt Traffic Co., Ltd. | 3,032.00 | 3,032.00 | ||
| Other Account receivable | Guangdong Chaohui Expressway Co., Ltd. | 2,523.91 | 5,617.45 | ||
| Other Account receivable | Guangdong Tongyi Expressway Service Area Co., ltd. | 2,182.70 | |||
| Other Account receivable | Guangdong Meihe Expressway Co., Ltd. | 1,202.78 | 3,367.47 | ||
| Other Account receivable | Guangdong Pingxing Expressway Co., Ltd. | 58.06 | 243.34 | ||
| Other Account receivable | Guangdong Kaiyang Expressway Co., Ltd. | 88,827.08 | |||
| Other Account receivable | Guangdong Jiangzhao Expressway Management Center | 9,098.40 | |||
| Other Account receivable | Guangdong Nanyue Traffic Zhaogan Expressway Management Center | 1,860.07 | |||
| Other Account | Guangdong | 1,685.28 | |||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| receivable | Guangfozhao Expressway Co., Ltd. | ||||
| Other Account receivable | Heyuan Helong Expressway Co., Ltd. | 1,428.35 | |||
| Other Account receivable | Guangdong Two Guang Expressway Co., Ltd. | 556.32 | |||
| Other Non-Current Assets | Guangdong Changda Highway Engineering Co., Ltd. | 23,937,725.40 | 15,937,725.40 | ||
| Other Non-Current Assets | Guangdong Hualu Communication Technology Co., Ltd. | 865,990.00 | |||
| Other Non-Current Assets | Guangdong East Thinking Management Technology Development Co., Ltd. | 268,155.00 | 268,155.00 | ||
Note: if the related transaction is agreed to settle based on net amount, the amount after offsetting the amount duefrom related parties is filled in.
（2）Payables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning |
| Account payable | Guangdong Highway Construction Co., Ltd. | 45,980,021.00 | 75,980,021.00 |
| Account payable | Guangdong Expressway Co., Ltd. | 8,746,491.18 | 8,746,491.18 |
| Account payable | Guangdong Litong Technology Investment Co., Ltd. | 2,500,589.50 | 2,152,850.00 |
| Account payable | Guangdong Guanghui Expressway Co.,Ltd. | 1,832,500.00 | 948,300.00 |
| Name | Related party | Amount at year end | Amount at year beginning |
| Account payable | Guangdong Union Electron Service Co.,Ltd. | 1,001,500.07 | 1.59 |
| Account payable | Guangdong Xinyue Traffic Investment Co., Ltd. | 726,768.36 | 776,543.24 |
| Account payable | Guangdong Expressway Media Co., Ltd. | 642,500.00 | |
| Account payable | Guangdong Changda Highway Engineering Co.,Ltd. | 500,931.38 | 14,449,499.60 |
| Account payable | Guangdong Hualu Communication Technology Co., Ltd. | 383,282.00 | 383,282.00 |
| Account payable | Guangdong Maozhan Expressway Co.,Ltd. | 120,000.00 | |
| Interest payable | Guangdong Guanghui Expressway Co., Ltd. | 1,349,043.75 | |
| Received in advance | Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 0.06 | 0.06 |
| Other Payable account | Guangdong Guanghui Expressway Co.,Ltd. | 150,000,000.00 | 20,221.75 |
| Other Payable account | Guangdong Changda Highway Engineering Co.,Ltd. | 6,647,277.11 | 3,953,559.55 |
| Other Payable account | Guangdong Union Electron Service Co.,Ltd. | 4,706,867.08 | 2,238,981.27 |
| Other Payable account | Guangdong Xinyue Traffic Investment Co., Ltd. | 1,545,446.02 | 1,636,943.30 |
| Other Payable account | Guangdong Litong Technology Investment Co., Ltd. | 1,470,184.76 | |
| Other Payable account | Guangdong Expressway Co., Ltd. | 334,706.01 | 350,680.10 |
| Other Payable account | Guangdong Kaiyang Expressway Co., Ltd. | 272,445.68 | 272,445.68 |
| Other Payable account | Guangdong East Thinking Management Technology Development Co., Ltd. | 230,713.19 | 230,713.19 |
| Other Payable account | Guangdong Jiangzhong Expressway Co., Ltd. | 215,384.63 | 215,384.63 |
| Name | Related party | Amount at year end | Amount at year beginning |
| Other Payable account | Guangdong Zhongjiang Expressway Projict Management | 200,000.00 | 200,000.00 |
| Other Payable account | Guangdong Maozhan Expressway Co., Ltd. | 188,931.56 | 188,931.56 |
| Other Payable account | Guangdong Hualu Communication Technology Co., Ltd. | 187,253.14 | 181,253.14 |
| Other Payable account | Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 166,578.00 | 13,553.00 |
| Other Payable account | Guangdong Lulutong Co., Ltd. | 133,249.80 | 133,249.80 |
| Other Payable account | Guangdong Tongyi Expressway Service Area Co., Ltd. | 120,000.00 | 120,000.00 |
| Other Payable account | Guangdong Expressway Media Co., Ltd. | 70,000.00 | 70,000.00 |
| Other Payable account | Guangdong Jiangzhao Expressway Management Center | 55,796.85 | 62,047.64 |
| Other Payable account | Guangdong Zhaoyang Expressway Co.,Ltd. | 49,171.27 | 49,171.27 |
| Other Payable account | Guangdong West Coastal Expressway Zhuhai Section Co., Ltd. | 48,146.64 | 48,146.64 |
| Other Payable account | Guangdong Baomao Expressway Co., Ltd. | 45,719.63 | 48,950.59 |
| Other Payable account | Zhongshan Yueyun Airport EXPRESS Pessenger Transport Co., Ltd. | 34,568.85 | 34,568.85 |
| Other Payable account | Guangdong Litong Information Technology Investment Co., Ltd. | 30,105.35 | 465,228.30 |
| Other Payable account | Guang-Shen-Zhu Expressway Co., Ltd. | 20,344.23 | 20,344.23 |
| Other Payable account | Guangdong Guangzhu West Line Expressway Co., Ltd. | 18,981.84 | 18,981.84 |
| Other Payable account | Guangdong Litong Technology Investment Co., Ltd. | 16,376.20 | 16,376.20 |
| Name | Related party | Amount at year end | Amount at year beginning |
| Other Payable account | Guangdong Highway Construction Co., Ltd. | 11,158.46 | 11,158.46 |
| Other Payable account | Guangdong Shanfen Expressway Co., Ltd. | 5,339.49 | 5,843.90 |
| Other Payable account | Guangdong Yuedong Expressway Development Co., Ltd. | 2,472.34 | 2,566.50 |
| Other Payable account | Zhaoqing Yuezhao Highway Co., Ltd. | 2,388.80 | 2,388.80 |
| Other Payable account | Guangdong Road &Bridge Construction Development Co., Ltd. | 1,948.02 | 2,435.71 |
| Other Payable account | Guangdong Two Guang Expressway Co., Ltd. | 1,603.02 | 1,603.02 |
| Other Payable account | Guangdong West Coastal Expressway Co., Ltd. | 1,234.39 | 3,342.12 |
| Other Payable account | Heyuan Helong Expressway Co., Ltd. | 896.89 | 896.89 |
| Other Payable account | Shenzhen Huiyan Expressway Co., Ltd. | 564.92 | 946.81 |
| Other Payable account | Guangdong Luoyang Expressway Co., Ltd. | 477.14 | 1,202.48 |
| Other Payable account | Guangdong Boda Expressway Co., Ltd. | 408.23 | 408.23 |
| Other Payable account | Guangdong Hehui Expressway Co., Ltd | 216.43 | 216.43 |
| Other Payable account | Guangdong Yangmao Expressway Co., Ltd. | 2,817.71 | |
| Dividend payable | Xinyue Highway Construction Co., Ltd. | 25,000,000.00 | 12,500,000.00 |
XIII. Stock payment1. 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 paymentNil5.OtherNilXIV. Commitments1. Significant commitmentsSignificant commitments at balance sheet date
On June 15, 2016, the Company’s 29th meeting (Provisional) of the seventh board of directors was convened.
In the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltd pertaining to theRenovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expresswaywas examined and approved, agreed that based on the approved total investment amount by relevant government
department, then the company’s subsidiary- Guangdong Fokai Expressway Co., Ltd carries out the investment
and construction of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-HaikouNational Expressway; the company increases funding for Guangdong Provincial Fokai Expressway Co., Ltdpertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-HaikouNational Expressway, with the contributed funds as a proportion of 35% of the total investment amount approvedby relevant government department. The afore-said item had been examined and approved in the firstextraordinary general shareholder meeting, The Company had received the approval of the National Developmentand Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section Rebubuilding andExpansion Project(NO.1874-2016-NDRC Infrastructure Document)from Guangdong Provincel Development andreform Commission On October 11, 2016, agreed with the implementation of the Guangdong Provincial
Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the total investment
of this project is about 3.513 billion yuan(the static investment is about 3.289 billion yuan), of which the projectcapital is 1.23 billion yuan that accounts for 35% of the total investment and such amount of the project capitalwill be provided by Guangdong Provincial Fokai Expressway Co., Ltd, and the rest amount of 2,283 billion yuanwill be solved by using bank loans. According to the "Official Reply to the preliminary design of reconstructionand extension project of Guangdong Sanbao to Shuikou Road by Ministry of Transport" (No.73-2017 TransportRoad Document) issued by Guangdong Provincial Department of Transport, the Ministry of Transport checkedand ratified that the general estimate of the preliminary design of reconstruction and extension project ofGuangdong Sanbao to Shuikou Road is RMB 3.426 billion. As of June 30, 2018, The accumulated expenses
occurred of Guangdong Fokai Expressway Co.,Ltd was 1000.06 million yuan.2. Contingency(1) Significant contingency at balance sheet date
This matter. did not occur in this accounting period.(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.XV. Enents after balance sheet date1. Significant events had not adjustedThe nineteenth (provisional) meeting of the eighth board of directors of the company was held on August 7,
2008. The meeting examined and approved the "Proposal on Issuing Medium-term Notes". It was agreed that thecompany's registration limit in the China Interbank Market Dealers Association should not exceed 3.4 billion yuan(including), and that the company's latest audit of 40% of its net assets should be within 40%. Medium-term
notes within the period of 5 years (including 5 years) are to be issued by one-time or by stages. Funds are raisedto repay loans and replenish operation capital. In August 23, 2018, the first provisional shareholders meeting ofthe company in 2018 passed the above proposal. The final issuance plan for the medium term notes is subject to
the approval of the inter bank Dealers Association of China.
l
2.Profit distribution
Nil
3.Sales return
Nil4.Notes of other significant event after balance sheet date
Nil
XVI.Other significant events1.The accounting errors correction in previous periodThis matter. did not occur in this accounting period. During the reporting period.
2.Debt restructuringThis matter. did not occur in this accounting period. During the reporting period.3.Replacement of assetsThis matter. did not occur in this accounting period. During the reporting period.4.Pension planThe company does not disclose the pension plan undisclosed matter should exist.5.Discontinuing operationThis matter. did not occur in this accounting period. During the reporting period,.6. Segment informationThe 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.
7.Other
(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 and
Administration 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 uNilateralresponsibility of the ship.
On 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 Shipping
Company Limited and Yang Xiong to undertake the conpensation 25,587,684 yuan for the loss caused bycollapsion 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 casewas 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 resumed
the 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.
(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 Concerning
the Company’s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. The
Company 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 is
transferred into the Company’s account and the corresponding days of the future years, which shall be adjusted
once 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 December 31, 2016, thecompany has borrowed 1.5 billion yuan.
(3)On February 5, 2016, the company received the Approval of the Share-Issuing to Parties such as GuangdongProvincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by Guangdong Provincial
Expressway Development Co., Ltd(CSRC No.230-2016 Zheng Jian Xu ke) issued from CSRC; the company’s
scheme on share-issuance for purchasing assets and raising matching funds had been examined and approved bythe Audit Committee of CSRC on Verifying and Approving Mergers, Acquisitions and Restructuring of ListedCompanies. The company has completed asset restructuring in June 2016.
During the profit compensation period, in the case that the actual profits of the underlying company were lessthan the committed profits, respectively the counterparts of Guangdong Provincial Expressway Co., Ltd andGuangdong Provincial Highway Construction Co., Ltd shall assume the obligation of compensation for the profitdifference according to their equity proportion of Guangdong Provincial Fokai Expressway Co., Ltd andGuangzhou Guangzhu Traffic Investment Management Co., Ltd. The profit compensation period is three yearsfrom 2016-2018.
Agreed by the company and Guangdong Provincial Expressway Co., Ltd, the profits of Fokai ExpresswayCo., Ltd in year-2016, year-2017 and year-2018 by estimation shall accordingly be 250.6973 million yuan,260.0802 million yuan and 403.1197 million yuan, with the aggregated non-recurring gains and losses were
expected to be 105.5743 million yuan. During the compensation period, in the case that the cumulative net profitsof Fokai Expressway Co., Ltd in a certain year realized at the end of the year are less than the estimatedcumulative net profits of the year, the company will, at the price of 1.0 yuan per share, buy-back the sharescalculated in accordance with the agreement for the purpose of compensation and those shares will be written off,and if the amount of compensation exceeds the consideration of those shares being bought-back, GuangdongProvincial Expressway Co., Ltd will compensate that part in cash. At the expiration of the compensation period, if
the accumulative actual non-recurring gains and losses (referring to the government’s compensation to
Guangdong Provincial Fokai Expressway Co., Ltd due to the cancellation of toll charge of Jiujiang bridge,
hereinafter shortly named as “Jiujiang Bridge Compensation”) of Fokai Expressway Co., Ltd were less than the
estimated accumulative non-recurring gains and losses, Guangdong Provincial Expressway Co., Ltd will, upon thebasis of the stake proportion held by Fokai Expressway Co., Ltd before the major asset restructuring, compensatein cash to the company in accordance with the agreement; If it is after the expiration of the compensation period,every time when Fokai Expressway Co., Ltd received Jiujiang Bridge Compensation, the company should refundthe corresponding part which had been paid by Guangdong Provincial Expressway Co., Ltd for the compensationin accordance with the agreement to Guangdong Provincial Expressway Co., Ltd within 30 working days startedfrom the date Fokai Expressway Co., Ltd received such compensation.
Agreed by the company and Guangdong Provincial Highway Construction Co., Ltd, the profits ofGuangzhou Guangzhu Traffic Investment Management Co., Ltd in year-2016, year-2017 and year-2018 byestimation shall accordingly be 230.3606 million yuan, 263.2329 million yuan and 286.5018 million yuan. Duringthe compensation period, in the case that the cumulative net profits of Guangzhou Guangzhu Traffic InvestmentManagement Co., Ltd realized at the end of the year are less than the estimated cumulative net profits of the year,the company will, at the price of 1.0 yuan per share, buy-back the shares held by Guangdong Provincial HighwayConstruction Co., Ltd with the quantity being calculated upon the agreement for compensation and those shareswill be written off.Guangdong Fokai Expressway Co., Ltd. in 2016 the actual profit (excluding non-) by 286.1655 million yuan,more than the commitment to profit more than 35.4682 million yuan; Guangzhou Guangzhu Traffic InvestmentManagement Co., Ltd. 2016 annual profit of 271.7759 million yuan, More than the commitment to profit morethan 41.4153 million yuan. 2017 annual profit of 321.5.34 million yuan, More than the commitment to profit morethan 58.2705 million yuan.
(4)On April 10, 2018, the company received a letter from the shareholder Yadong Fuxingn Yalian Investment Co.,Ltd. On February 8, 2018, Yadong Fuxing Company pledged in batches of the Guangdong Expressway A sharesthat were previously pledged in the Guotai Junan Securities Co., Ltd, and handled the stock pledge financingagreement of Guangdong Expressway A shares with the China Yinhe Securities Co., Ltd. The 141,600,000 sharesheld by the Yadong Fuxing Company and accounted for 6.77% of the company's total share capital were pledgedto the China Yinhe Securities Co., Ltd for the financing, with the pledge period starting from April 3, 2018.
As of the date of approval of report of this financial statement, Yadong Fosun holds 202,429,149 A shares of theCompany, accounting for 9.68% of the total share capital of the Company, of which 141,600,000 shares arepledged-accounting for 6.77% of the total share capital of the Company.
XVII..Notes s of main items in financial reports of parent company1.Account receivable
（1）Account receivable classified by category
In RMB
| Category | Year-end balance | Year-beginning | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Account receivable with single major amount and withdrawal bad debt provision for single item | 18,091,636.66 | 100.00% | 18,091,636.66 | 19,001,899.29 | 100.00% | 19,001,899.29 | ||||
| Total | 18,091,636.66 | 100.00% | 18,091,636.66 | 19,001,899.29 | 100.00% | 19,001,899.29 | ||||
- Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □Not applicable
In RMB
| Name | Year-end balance | |||
| Receivable accounts | Bad debt provision | Proportion | Reason | |
| Guangdong Union Electronic Services Co., Ltd. | 18,091,636.66 | Been recovered after the period | ||
| Total | 18,091,636.66 | -- | -- | |
Account receivable on which bad debt provisions are provided on age basis in the group：
□ Applicable √ Not applicableIn the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicableIn the groups, accounts receivable adopting other methods to accrue bad debt provision:：
Nil
（2）Accrual period, recovery or reversal of bad debts situation
Nil
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of account receivables owed by the imputation of the top five parties
| Name | Amount | Aging | Proportion(%) | Bad debt provision |
| Guangdong Union Electronic Services Co., Ltd | 18,091,636.66 | Within 1 year | 100.00 |
| Total | 18,091,636.66 | -- | 100.00 |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivableNil
2.Other account receivable
（1）Other account receivable classified by category
In RMB
| Category | Year-end balance | Year-beginning | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other Account receivable with single major amount and withdrawal bad debt provision for single item | 32,084,893.35 | 15.67% | 32,084,893.35 | 100.00% | 32,084,893.35 | 82.44% | 32,084,893.35 | 100.00% | ||
| Other Account receivable withdrawal bad debt provision by group of credit risk characteristics | 172,707,494.33 | 84.33% | 1,533,987.26 | 0.89% | 171,173,507.07 | 6,832,189.43 | 17.56% | 1,533,987.26 | 22.45% | 5,298,202.17 |
| Total | 204,792,387.68 | 100.00% | 33,618,880.61 | 16.42% | 171,173,507.07 | 38,917,082.78 | 100.00% | 33,618,880.61 | 86.39% | 5,298,202.17 |
Other Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □Not applicable
In RMB
| Name | Balance at year-end | |||
| Other receivable | Provision for bad debts | Proportion% | Reason | |
| Name | Balance at year-end | |||
| Other receivable | Provision for bad debts | Proportion% | Reason | |
| Kunlun Securities Co., Ltd. | 32,084,893.35 | 32,084,893.35 | 100.00% | For the balance amount of our company’s secutity trading settlement funds 33,683,774.79 yuan deposited in Kunlun Securities Co., Ltd., The Xin’Ning Municipal intermediate People’s Court of Qinghai Province had made the judgment in accordance with the law and declared on November 11, 2006. that Kunlun Securities Co., ltd. was bankrupted for debt payment . In March of 2007, the liquidating group of Kunlun Securities preliminary judged the relationship between our company and Kunlun Securities Co., Ltd.is debtor creditor relationship . as Kunlun Securities Co., Ltd.was bankrupted for debt payment and it is in serious insolvency. Our company had moved the security trading settlement funds deposited in Kunlun Securities Co., Ltd, to other receivables account for reflection, we also have made full amount provision for had debts based on conservatism principle. The recovered debt amount in 2008 is 485,392.67 yuan which had been offset from the provision for bad debts. The recovered debt amount in 2011 is 667,959.27 yuan which had been offset from the provision for bad, The recovered debt amount in 2014 is 445,529.50 yuan which had been offset from the provision for bad debts.debts. |
| Total | 32,084,893.35 | 32,084,893.35 | -- | -- |
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □Not applicable
In RMB
| Aging | Balance at year-end | ||
| Other receivable | Provision for bad debts | Proportion% | |
| Subitem within 1 year | |||
| Subtotal within 1 year | 3,925,741.04 | 0.00% | |
| 1-2 years | 10.00% | ||
| 2-3 years | 30.00% | ||
| 3-4 years | 50.00% | ||
| 4-5 years | 90.00% | ||
| Over 5 years | 1,533,987.26 | 1,533,987.26 | 100.00% |
| Total | 5,459,728.30 | 1,533,987.26 | 28.10% |
NotesIn the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
√ Applicable □Not applicable
| Name | Balance at year-end | |||
| Other receivable | Bad debt provision | Proportion（%） | Reason | |
| Guangdong Fokai Expressway Co.,Ltd. | 164,829,638.45 | Related party transaction | ||
| Guangdong Litong Real estateInvestment Co., Ltd. | 1,505,864.00 | Deposit | ||
| Guangdong Expressway Co.,Ltd. | 463,491.88 | Related party transaction | ||
| Beijing CBRE property Management Service Co., Ltd. | 393,331.00 | Deposit | ||
| Pengjiang Shunfeng Automobile Leasing Co., Ltd. | 25,500.00 | Deposit | ||
| Guangzhou Longfeng Automobile Leasing Co., Ltd. | 20,000.00 | Deposit | ||
| Guangdong Gaoda Property Development Development Co., Ltd. | 9,940.70 | Deposit | ||
| Total | 167,247,766.03 | |||
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB0.00; recovery or payback for bad debts Amount is RMB 0.00.
(3) The actual write-off other accounts receivableNil
(4) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Related party transaction | 164,829,638.45 | |
| Securities trading settlement funds balance | 32,084,893.35 | 32,084,893.35 |
| Guarantee deposit | 1,966,383.70 | 1,929,135.70 |
| Pretty cash | 1,555,100.00 | 1,505,100.00 |
| Advertising and service fee | 203,044.13 | 203,133.13 |
| Other | 4,153,328.05 | 3,194,820.60 |
| Total | 204,792,387.68 | 38,917,082.78 |
（5）The top five other account receivable classified by debtor at period end
In RMB
| Name | Nature | Closing balance | Aging | Proportion% | Closing balance of bad debt provision |
| Guangdong Fokai Expressway Co., Ltd. | Current account | 164,829,638.45 | Within 1 year | 80.49% | |
| Kunlun Securities Co.,Ltd | Securities trading settlement funds | 32,084,893.35 | Over 5 years | 15.67% | 32,084,893.35 |
| Guangdong Litong Real estateInvestment Co., Ltd. | Deposit | 1,505,864.00 | 1-2 years, Over 5 years | 0.74% | |
| Heshan Communication Real estate Development Company | Current account | 1,470,000.00 | Over 5 years | 0.72% | 1,470,000.00 |
| Guangdong Expressway Co.,Ltd. | Current account | 466,697.78 | Within 1 year, ,2-3 years | 0.23% | |
| Total | -- | 200,357,093.58 | -- | 33,554,893.35 |
（6）Account receivable involving government subsidies
Nil
（7）Other account receivable derecognized due to the transfer of financial assets
Nil
（8）Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement.
Nil3. Long- term equity investment
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
| Investment to the subsidiary | 5,169,662,219.66 | 5,169,662,219.66 | 5,169,662,219.66 | 5,169,662,219.66 | ||
| Investment to joint ventures and associated enterprises | 3,166,390,849.09 | 3,166,390,849.09 | 3,047,275,000.00 | 3,047,275,000.00 | ||
| Total | 8,336,053,068.75 | 8,336,053,068.75 | 8,216,937,219.66 | 8,216,937,219.66 | ||
（1）Investment to the subsidiary
In RMB
| Name | Opening balance | Increase | Decrease | Closing balance | Withdrawn impairment provision in the reporting period | Closing balance of impairment provision |
| 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 | ||||
| Guangdong Fokai Expressway Co., | 3,635,997,210.85 | 3,635,997,210.85 |
| Ltd. | ||||||
| Guangzhou Guangzhu Communication Investment Management Co., Ltd. | 859,345,204.26 | 859,345,204.26 | ||||
| Jingzhu Expressway Guangzhu Section Co., Ltd. | 419,105,446.88 | 419,105,446.88 | ||||
| Yuegao Capital Investment (Hengqin) Co., Ltd. | 4,500,000.00 | 4,500,000.00 | ||||
| Total | 5,169,662,219.66 | 5,169,662,219.66 |
（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. | 949,906,833.96 | 134,138,087.25 | 3,951,780.00 | 37,805,847.20 | 1,050,190,854.01 | ||||||
| ZhaoqingYuezhao Highway Co., Ltd. | 291,906,117.18 | 28,635,945.38 | 43,088,859.48 | 277,453,203.08 | |||||||
| Subtotal | 1,241,812,951.14 | 162,774,032.63 | 3,951,780.00 | 80,894,706.68 | 1,327,644,057.09 | ||||||
| II. Associated enterprises | |||||||||||
| ShenzhenHuiyan Expressway Co., Ltd. | 196,197,198.21 | 17,813,868.36 | 214,011,066.57 | ||||||||
| Guangdong Jiangzhong Expressway Co., Ltd. | 173,502,304.11 | 6,897,600.54 | 3,789,200.79 | 176,610,703.86 | |||||||
| Ganzhou Kangda Expressway Co., | 208,768,922.86 | 13,838,738.80 | 222,607,661.66 | ||||||||
| 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 | ||||
| Ltd. | |||||||||||
| Ganzhou Gankang Expressway Co., Ltd. | 204,404,703.35 | 3,050,213.53 | 207,454,916.88 | ||||||||
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 215,548,332.90 | 7,397,846.46 | 222,946,179.36 | ||||||||
| Guoyuan Securities Co.,Ltd. | 807,040,587.43 | 5,004,857.02 | -4,983,478.43 | -5,404.45 | 11,940,297.90 | 795,116,263.67 | |||||
| Subtotal | 1,805,462,048.86 | 54,003,124.71 | -4,983,478.43 | -5,404.45 | 15,729,498.69 | 1,838,746,792.00 | |||||
| Total | 3,047,275,000.00 | 216,777,157.34 | -4,983,478.43 | 3,946,375.55 | 96,624,205.37 | 3,166,390,849.09 | |||||
4. Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 638,591,636.62 | 306,898,726.06 | ||
| Other | 37,302,631.12 | 3,411,961.26 | 38,224,276.41 | 232,106.70 |
| Total | 675,894,267.74 | 310,310,687.32 | 38,224,276.41 | 232,106.70 |
Other notes The substantial increase in the main business income of the parent company in the current period isdue to the absorption and merger of the Fokai Company and the accounting of the branch business in the parentcompany since August 1, 2017.
5.Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Long-term equity investment income accounted by cost method | 621,221,266.51 | 707,304,426.29 |
| Long-term equity investment income accounted by equity method | 216,777,157.34 | 199,376,107.62 |
| Investment income received from holding of available-for –sale financial assets | 42,581,144.86 | 24,054,256.82 |
| Total | 880,579,568.71 | 930,734,790.73 |
XVIII. Supplement information1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Gains/losses from the disposal of non-current asset | 44,464,720.82 | |
| Other non-business income and expenditures other than the above | 1,075,059.00 | |
| Less ：Influenced amount of income tax | 11,126,311.84 | |
| Amount of influence of minority interests | 8,328,932.53 | |
| Total | 26,084,535.45 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses 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 | 8.60% | 0.37 | 0.37 |
| Net profit attributable to common shareholders of the Company after deduction of non-recurring profit and loss | 8.31% | 0.36 | 0.36 |
3. Differences between accounting data under domestic and overseas accounting standards(1) Differences of net profit and net assets disclosed in financial reports prepared under international andChinese accounting standards
□ Applicable √Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accountingstandards, for audit data adjusting differences had been foreign audited, should indicate the name of theforeign institutions
4.Other
XI. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, General Manager,Chief Financial officer and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.