Guangdong Provincial Expressway Development
Co., Ltd.
The Semi-Annual Financial Report 2019
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.II. Financial statementsCurrency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by：Guangdong Provincial Expressway Development Co., Ltd.
June 30,2019
In RMB
| Items | June 30,2019 | December 31,2018 |
| Current asset： | ||
| Monetary fund | 2,038,024,951.05 | 2,124,524,996.32 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Account receivable | 103,117,760.85 | 91,076,995.07 |
| Financing of receivables | ||
| Prepayments | 2,863,265.25 | 1,912,943.40 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 52,775,962.28 | 16,487,256.02 |
| Including：Interest receivable |
| Items | June 30,2019 | December 31,2018 |
| Dividend receivable | 34,145,770.80 | 1,205,472.90 |
| Repurchasing of financial assets | ||
| Inventories | 110,142.49 | 81,017.91 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | 51,745.32 | 51,745.32 |
| Other current asset | ||
| Total of current assets | 2,196,943,827.24 | 2,234,134,954.04 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Debt investment | ||
| Available for sale of financial assets | 1,668,791,594.53 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 3,237,607,137.38 | 3,145,644,970.07 |
| Other equity instruments investment | 1,694,669,638.37 | |
| Other non-current financial assets | ||
| Property investment | 3,442,059.61 | 3,579,007.54 |
| Fixed assets | 7,911,433,640.97 | 7,600,046,319.91 |
| Construction in progress | 835,875,363.36 | 1,089,473,425.63 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 4,554,091.05 | 5,739,020.48 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 1,168,273.16 | 1,221,781.88 |
| Deferred income tax asset | 403,367,030.48 | 447,485,034.79 |
| Other non-current asset | 115,709,087.82 | 99,794,665.58 |
| Total of non-current assets | 14,207,826,322.20 | 14,061,775,820.41 |
| Total of assets | 16,404,770,149.44 | 16,295,910,774.45 |
| Current liabilities |
| Items | June 30,2019 | December 31,2018 |
| Short-term loans | ||
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 215,439,814.83 | 203,779,190.74 |
| Advance receipts | 11,725,138.96 | 12,039,708.01 |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 18,123,397.10 | 13,122,437.17 |
| Tax payable | 95,207,898.65 | 104,198,746.06 |
| Other account payable | 284,563,651.27 | 191,254,464.84 |
| Including：Interest payable | 17,157,289.56 | 8,971,576.57 |
| Dividend payable | 21,150,413.70 | 17,191,142.23 |
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Contract Liabilities | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 2,041,365,000.00 | 2,498,480,000.00 |
| Other current liability | ||
| Total of current liability | 2,666,424,900.81 | 3,022,874,546.82 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | 3,281,725,000.00 | 2,983,040,000.00 |
| Bond payable | 677,902,761.25 | |
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability |
| Items | June 30,2019 | December 31,2018 |
| Long-term payable | 39,625,983.68 | 38,022,210.11 |
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | ||
| Deferred income tax liability | 203,179,299.45 | 205,672,389.59 |
| Other non-current liabilities | ||
| Total non-current liabilities | 4,202,433,044.38 | 3,226,734,599.70 |
| Total of liability | 6,868,857,945.19 | 6,249,609,146.52 |
| Owners’ equity | ||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 2,562,570,465.31 | 2,536,774,965.31 |
| Less：Shares in stock | ||
| Other comprehensive income | 275,111,548.84 | 245,109,114.81 |
| Special reserve | ||
| Surplus reserves | 775,402,561.35 | 775,402,561.35 |
| Common risk provision | ||
| Retained profit | 3,488,708,792.60 | 3,938,609,136.59 |
| Total of owner’s equity belong to the parent company | 9,192,599,494.10 | 9,586,701,904.06 |
| Minority shareholders’ equity | 343,312,710.15 | 459,599,723.87 |
| Total of owners’ equity | 9,535,912,204.25 | 10,046,301,627.93 |
| Total of liabilities and owners’ equity | 16,404,770,149.44 | 16,295,910,774.45 |
Legal Representative: Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang ZhiAccounting Dept Leader: Zhou Fang
2.Parent Company Balance Sheet
In RMB
| Items | June 30,2019 | December 31,2018 |
| Current asset： | ||
| Monetary fund | 2,015,944,877.34 | 2,096,597,568.04 |
| Transactional financial assets | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Account receivable | 17,585,263.17 | 18,405,847.15 |
| Financing of receivables | ||
| Prepayments | 2,266,509.88 | 1,532,057.82 |
| Other account receivable | 72,684,121.08 | 9,323,782.66 |
| Including：Interest receivable | 32,460,868.78 | 1,880,148.12 |
| Dividend receivable | 34,145,770.80 | 1,205,472.90 |
| Inventories | ||
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | 100,000,000.00 | 100,000,000.00 |
| Other current asset | ||
| Total of current assets | 2,208,480,771.47 | 2,225,859,255.67 |
| Non-current assets： | ||
| Debt investment | 692,903,684.98 | |
| Available for sale of financial assets | 1,668,791,594.53 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 4,771,272,146.19 | 4,679,309,978.88 |
| Other equity instruments investment | 1,694,669,638.37 | |
| Other non-current financial assets | ||
| Property investment | 3,189,921.36 | 3,326,869.29 |
| Fixed assets | 5,728,126,768.64 | 5,292,898,635.00 |
| Items | June 30,2019 | December 31,2018 |
| Construction in progress | 795,576,474.85 | 1,060,230,773.10 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 1,454,457.72 | 1,741,277.53 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 403,245,352.12 | 447,328,530.77 |
| Other non-current asset | 115,094,875.40 | 790,720,727.48 |
| Total of non-current assets | 14,205,533,319.63 | 13,944,348,386.58 |
| Total of assets | 16,414,014,091.10 | 16,170,207,642.25 |
| Current liabilities | ||
| Short-term loans | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 173,643,504.46 | 124,833,335.72 |
| Advance receipts | ||
| Contract Liabilities | ||
| Employees’ wage payable | 5,271,471.25 | 5,669,203.37 |
| Tax payable | 6,636,136.81 | 10,297,144.52 |
| Other account payable | 241,188,208.02 | 142,457,135.79 |
| Including：Interest payable | 16,683,582.06 | 8,373,096.36 |
| Dividend payable | 21,150,413.70 | 17,191,142.23 |
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 2,002,685,000.00 | 2,327,180,000.00 |
| Other current liability | 566,301,158.49 | 977,236,252.44 |
| Total of current liability | 2,995,725,479.03 | 3,587,673,071.84 |
| Non-current liabilities： | ||
| Long-term loan | 2,933,705,000.00 | 2,731,990,000.00 |
| Items | June 30,2019 | December 31,2018 |
| Bond payable | 677,902,761.25 | |
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | 39,625,983.68 | 38,022,210.11 |
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | ||
| Deferred income tax liability | 94,690,114.96 | 88,220,604.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 3,745,923,859.89 | 2,858,232,814.11 |
| Total of liability | 6,741,649,338.92 | 6,445,905,885.95 |
| Owners’ equity | ||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 2,974,458,696.93 | 2,948,663,196.93 |
| Less：Shares in stock | ||
| Other comprehensive income | 275,111,548.84 | 245,109,114.81 |
| Special reserve | ||
| Surplus reserves | 759,558,277.70 | 759,558,277.70 |
| Retained profit | 3,572,430,102.71 | 3,680,165,040.86 |
| Total of owners’ equity | 9,672,364,752.18 | 9,724,301,756.30 |
| Total of liabilities and owners’ equity | 16,414,014,091.10 | 16,170,207,642.25 |
3.Consolidated Income statement
In RMB
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Income from the key business | 1,483,673,245.21 | 1,535,864,145.14 |
| Incl：Business income | 1,483,673,245.21 | 1,535,864,145.14 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 736,685,807.33 | 728,964,530.78 |
| Incl：Business cost | 549,623,810.49 | 533,736,566.35 |
| 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 | 6,557,023.97 | 6,853,114.99 |
| Sales expense | ||
| Administrative expense | 76,975,210.47 | 73,109,460.94 |
| R & D expense | 2,485,173.03 | |
| Financial expenses | 103,529,762.40 | 112,780,215.47 |
| Including：Interest expense | 115,040,857.71 | 125,752,286.60 |
| Interest income | 15,761,707.69 | 18,076,236.30 |
| Add：Other income | 420,227.62 | |
| Investment gain（“-”for loss） | 276,241,866.32 | 259,358,302.20 |
| Including: investment gains from affiliates | 237,712,998.09 | 216,777,157.34 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Gains from currency exchange | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | ||
| Impairment loss of assets | 57,890.35 |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| Assets disposal income | 13,129,094.29 | 44,860,186.67 |
| III. Operational profit（“-”for loss） | 1,036,778,626.11 | 1,111,175,993.58 |
| Add ：Non-operational income | 735,359.76 | 2,687,560.58 |
| Less: Non-operating expense | 4,231,407.95 | 2,007,967.43 |
| IV. Total profit(“-”for loss) | 1,033,282,577.92 | 1,111,855,586.73 |
| Less：Income tax expenses | 189,696,774.05 | 213,221,718.85 |
| V. Net profit | 843,585,803.87 | 898,633,867.88 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | 843,585,803.87 | 898,633,867.88 |
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | 736,486,112.30 | 779,002,246.98 |
| 2.Minority shareholders’ equity | 107,099,691.57 | 119,631,620.90 |
| VI. Net after-tax of other comprehensive income | 18,938,083.74 | -73,795,549.55 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | 18,938,083.74 | -73,795,549.55 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | 19,408,532.88 | |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | 19,408,532.88 | |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | -470,449.14 | -73,795,549.55 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | -470,449.14 | -4,983,478.43 |
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3.Gains and losses from changes in fair value available for sale finan | -68,812,071.12 |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| cial assets | ||
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8. Translation differences in currency financial statements | ||
| 9.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 862,523,887.61 | 824,838,318.33 |
| Total comprehensive income attributable to the owner of the parent company | 755,424,196.04 | 705,206,697.43 |
| Total comprehensive income attributable minority shareholders | 107,099,691.57 | 119,631,620.90 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.35 | 0.37 |
| (II)Diluted earnings per share | 0.35 | 0.37 |
The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0.00, last period the combined party realized RMB0.00.Legal Representative: Zheng RenfaGeneral Manager: Wang ChunhuaPerson in charge of accounting：Fang ZhiAccounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Income from the key business | 623,126,517.35 | 675,894,267.74 |
| Incl：Business cost | 329,190,674.52 | 310,310,687.32 |
| Business tax and surcharge | 3,486,292.37 | 3,493,775.90 |
| Sales expense | ||
| Administrative expense | 46,996,060.64 | 42,233,003.03 |
| R & D expense | ||
| Financial expenses | 96,377,160.24 | 104,206,424.94 |
| Including：Interest expenses | 109,559,414.30 | 118,866,427.75 |
| Interest income | 15,652,128.26 | 17,806,734.11 |
| Add：Other income | 70,758.72 | |
| Investment gain（“-”for loss） | 975,659,501.70 | 880,579,568.71 |
| Including: investment gains from affiliates | 237,712,998.09 | 216,777,157.34 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | ||
| Impairment loss of assets | ||
| Assets disposal income | 138,427.18 | |
| II. Operational profit（“-”for loss） | 1,122,806,590.00 | 1,096,368,372.44 |
| Add ：Non-operational income | 298,935.96 | 916,331.99 |
| Less：Non -operational expenses | 370,829.17 | 485,826.09 |
| III. Total profit(“-”for loss) | 1,122,734,696.79 | 1,096,798,878.34 |
| Less：Income tax expenses | 44,083,178.65 | 54,054,827.41 |
| IV. Net profit | 1,078,651,518.14 | 1,042,744,050.93 |
| 1.Net continuing operating profit | 1,078,651,518.14 | 1,042,744,050.93 |
| 2.Termination of operating net profit | ||
| V. Net after-tax of other comprehensive income | 18,938,083.74 | -73,795,549.55 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | 19,408,532.88 |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | 19,408,532.88 | |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | -470,449.14 | -73,795,549.55 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | -470,449.14 | -4,983,478.43 |
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3.Gains and losses from changes in fair value available for sale financial assets | -68,812,071.12 | |
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8.Translation differences in currency financial statements | ||
| 9.Other | ||
| VI. Total comprehensive income | 1,097,589,601.88 | 968,948,501.38 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
5. Consolidated Cash flow statement
In RMB
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 1,509,571,069.40 | 1,567,523,150.21 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received by agent in securities trading | ||
| Tax returned | ||
| Other cash received from business operation | 25,618,718.28 | 41,946,329.98 |
| Sub-total of cash inflow | 1,535,189,787.68 | 1,609,469,480.19 |
| Cash paid for purchasing of merchandise and services | 92,703,135.93 | 96,705,259.73 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase for Outgoing call loan | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 143,256,732.77 | 138,291,293.37 |
| Taxes paid | 210,497,035.66 | 532,821,606.22 |
| Other cash paid for business activities | 37,921,786.09 | 21,871,732.77 |
| Sub-total of cash outflow from business activities | 484,378,690.45 | 789,689,892.09 |
| Net cash generated from /used in operating activities | 1,050,811,097.23 | 819,779,588.10 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| Cash received as investment gains | 176,375,388.78 | 84,683,907.47 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 13,961,500.00 | 100,573,025.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | ||
| Sub-total of cash inflow due to investment activities | 190,336,888.78 | 185,256,932.47 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 414,305,542.74 | 323,881,627.90 |
| 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 | 414,305,542.74 | 323,881,627.90 |
| Net cash flow generated by investment | -223,968,653.96 | -138,624,695.43 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders | ||
| Cash received as loans | 2,231,700,000.00 | 800,000,000.00 |
| Cash received from bond placing | ||
| Other financing –related cash received | ||
| Sub-total of cash inflow from financing activities | 2,231,700,000.00 | 800,000,000.00 |
| Cash to repay debts | 1,620,130,000.00 | 637,830,000.00 |
| Cash paid as dividend, profit, or interests | 1,522,586,583.81 | 1,382,633,569.09 |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | 220,140,964.92 | 179,899,173.50 |
| Other cash paid for financing activities | 791,384.00 | |
| Sub-total of cash outflow due to financing activities | 3,143,507,967.81 | 2,020,463,569.09 |
| Net cash flow generated by financing | -911,807,967.81 | -1,220,463,569.09 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -1,534,520.73 | -2,267,884.63 |
| V.Net increase of cash and cash equivalents | -86,500,045.27 | -541,576,561.05 |
| Add: balance of cash and cash equivalents at the beginning of term | 2,123,303,796.32 | 2,363,042,700.42 |
| VI ..Balance of cash and cash equivalents at the end of term | 2,036,803,751.05 | 1,821,466,139.37 |
6. Cash Flow Statement of the Parent Company
In RMB
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 641,027,153.33 | 661,994,572.24 |
| Tax returned | ||
| Other cash received from business operation | 24,885,810.30 | 48,829,459.08 |
| Sub-total of cash inflow | 665,912,963.63 | 710,824,031.32 |
| Cash paid for purchasing of merchandise and services | 24,226,244.52 | 39,912,969.27 |
| Cash paid to staffs or paid for staffs | 56,174,438.87 | 55,205,264.99 |
| Taxes paid | 24,543,436.06 | 25,922,199.03 |
| Other cash paid for business activities | 444,674,884.91 | 402,529,977.62 |
| Sub-total of cash outflow from business activities | 549,619,004.36 | 523,570,410.91 |
| Net cash generated from /used in operating activities | 116,293,959.27 | 187,253,620.41 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 846,967,754.67 | 580,905,173.98 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 3,700.00 | 195,540.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 432,250.00 | |
| Sub-total of cash inflow due to investment activities | 846,971,454.67 | 581,532,963.98 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 399,081,697.08 | 312,406,878.23 |
| Cash paid as investment | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | ||
| Sub-total of cash outflow due to investment activities | 399,081,697.08 | 312,406,878.23 |
| Net cash flow generated by investment | 447,889,757.59 | 269,126,085.75 |
| III. Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | 1,845,000,000.00 | 400,000,000.00 |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| Cash received from bond placing | ||
| Other financing –related ash received | 291,000,000.00 | |
| Sub-total of cash inflow from financing activities | 1,845,000,000.00 | 691,000,000.00 |
| Cash to repay debts | 1,197,780,000.00 | 50,100,000.00 |
| Cash paid as dividend, profit, or interests | 1,289,730,502.83 | 1,142,614,308.52 |
| Other cash paid for financing activities | 791,384.00 | 374,200,000.00 |
| Sub-total of cash outflow due to financing activities | 2,488,301,886.83 | 1,566,914,308.52 |
| Net cash flow generated by financing | -643,301,886.83 | -875,914,308.52 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -1,534,520.73 | -2,267,884.63 |
| V.Net increase of cash and cash equivalents | -80,652,690.70 | -421,802,486.99 |
| Add: balance of cash and cash equivalents at the beginning of term | 2,095,376,368.04 | 2,130,475,892.67 |
| VI ..Balance of cash and cash equivalents at the end of term | 2,014,723,677.34 | 1,708,673,405.68 |
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | Semi-annual of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,536,774,965.31 | 245,109,114.81 | 775,402,561.35 | 3,938,609,136.59 | 9,586,701,904.06 | 459,599,723.87 | 10,046,301,627.93 | |||||||
| Add: Change of accounting policy | 11,064,350.29 | -11,353,413.48 | -289,063.19 | -289,063.19 | |||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of current year | 2,090,806,126.00 | 2,536,774,965.31 | 256,173,465.10 | 775,402,561.35 | 3,927,255,723.11 | 9,586,412,840.87 | 459,599,723.87 | 10,046,012,564.74 | |||||||
| III .Changed in the current year | 25,795,500.00 | 18,938,083.74 | -438,546,930.51 | -393,813,346.77 | -116,287,013.72 | -510,100,360.49 | |||||||||
| （1）Total comprehensive income | 18,938,083.74 | 736,486,112.30 | 755,424,196.04 | 107,099,691.57 | 862,523,887.61 | ||||||||||
| （II）Investment or decreasing of capital by owners | |||||||||||||||
| Items | Semi-annual of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| 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 | -1,175,033,042.81 | -1,175,033,042.81 | -223,386,705.29 | -1,398,419,748.10 | |||||||||||
| 1.Providing of surplus reserves | |||||||||||||||
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -1,175,033,042.81 | -1,175,033,042.81 | -223,386,705.29 | -1,398,419,748.10 | |||||||||||
| 4．Other | |||||||||||||||
| (IV) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||||||
| Items | Semi-annual of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
| 5．Other comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | 25,795,500.00 | 25,795,500.00 | 25,795,500.00 | ||||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,562,570,465.31 | 275,111,548.84 | 775,402,561.35 | 3,488,708,792.60 | 9,192,599,494.10 | 343,312,710.15 | 9,535,912,204.25 | |||||||
Amount in last year
In RMB
| Items | Semi -annual of 2018 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,510,069,749.76 | 327,263,824.17 | 544,821,130.03 | 3,550,110,288.49 | 9,023,071,118.45 | 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 | 9,023,071,118.45 | 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 | -348,794,826.78 | -78,120,441.76 | -426,915,268.54 | |||||||||
| （1）Total comprehensive income | -73,795,549.55 | 779,002,246.98 | 705,206,697.43 | 119,631,620.90 | 824,838,318.33 | ||||||||||
| （II）Investment or decreasing of capital by owners | |||||||||||||||
| 1．Ordinary Shares invested by shareh | |||||||||||||||
| Items | Semi -annual of 2018 | ||||||||||||||
| Minor shareholders’ equity | Total of owners’ equity | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | |||||||||||||||
| share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| olders | |||||||||||||||
| 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 | -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 | -1,057,947,899.76 | -197,752,062.66 | -1,255,699,962.42 | |||||||||||
| 4．Other | |||||||||||||||
| (IV) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or | |||||||||||||||
| Items | Semi -annual of 2018 | ||||||||||||||
| Minor shareholders’ equity | Total of owners’ equity | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | |||||||||||||||
| share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| to capital shares) | |||||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
| 5．Other comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | 3,946,375.55 | 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 | 8,674,276,291.67 | 352,919,121.24 | 9,027,195,412.91 | |||||||
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
| Items | Semi-annual of 2019 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,948,663,196.93 | 245,109,114.81 | 759,558,277.70 | 3,680,165,040.86 | 9,724,301,756.30 | ||||||
| Add: Change of accounting policy | 11,064,350.29 | -11,353,413.48 | -289,063.19 | |||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II.Balance at the beginning of current year | 2,090,806,126.00 | 2,948,663,196.93 | 256,173,465.10 | 759,558,277.70 | 3,668,811,627.38 | 9,724,012,693.11 | ||||||
| III.Changed in the current year | 25,795,500.00 | 18,938,083.74 | -96,381,524.67 | -51,647,940.93 | ||||||||
| （I）Total comprehensive income | 18,938,083.74 | 1,078,651,518.14 | 1,097,589,601.88 | |||||||||
| (II) Investment or decreasing of capital by owners | ||||||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| Items | Semi-annual of 2019 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profit allotment | -1,175,033,042.81 | -1,175,033,042.81 | ||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | -1,175,033,042.81 | -1,175,033,042.81 | ||||||||||
| 3．Other | ||||||||||||
| (IV) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | ||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income | ||||||||||||
| Items | Semi-annual of 2019 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | 25,795,500.00 | 25,795,500.00 | ||||||||||
| IV. Balance at the end of this term | 2,090,806,126.00 | 2,974,458,696.93 | 275,111,548.84 | 759,558,277.70 | 3,572,430,102.71 | 9,672,364,752.18 | ||||||
Amount in last year
In RMB
| Items | Semi-annual of 2018 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 2,090,806,126.00 | 2,921,957,981.38 | 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 | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and | ||||||||||||
| Items | Semi-annual of 2018 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| 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 capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry | ||||||||||||
| Items | Semi-annual of 2018 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | 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 | ||||||
III .Company Profile
(1)History
1.The Company was established in February 1993, which was originally named as Guangdong Fokai ExpresswayCo., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co., Ltd. afterreorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of ShareHolding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang BridgeCo. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong State-owned AssetManagement Dept., i.e., 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 invested
87.008 million yuan to subscribe for 27.19 million shares. The total is 307.8375 million shares.2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong SecuritiesRegulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legalperson shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co., Ltd.in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approvaldocument and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document, theCompany issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at theprice of HKD 3.54 (equivalent to 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 ofChina with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested jointstock company limited.<0}5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the followingmanner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on
3.3-for-10 basis.<0}
22,250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH(2000) No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co., Ltd.(Group Co.) for holding and management without compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722shares held by directors, supervisors and senior executives are temporarily frozen) were listed on February 5,2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalizedcapital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000,i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May22, 2001.11．On March 8, 2004,As approved by China Securities Regulatory Commission by document
Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at theshareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “Theapproval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the shareequity relocation and transformation. On October 9 2006, according to the “Circular about implementing of shareequity relocation and relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’sA 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, 2019，Registration capital:RMB2,090,806,126，Legal representative：Zheng Renfa,Registrationplace: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, SecurityAffairs 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, 2019,Registered capital: RMB 26.8 billion. It is asolely state-owned limited company. Business scope：equity management, organization of asset reorganization andoptimized allocation, raising funds by means including mortgage, transfer of property rights and joint stocksystem transformation, project investment, operation and management, traffic infrastructure construction, highwayand railway project operation and relevant industries, technological development, application, consultation andservices, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; Thevalue-added communication business. The State-owned assets Supervision and Administration Committee of theGuangdong Provincial people's Government shall be the final controlling shareholder of the company.
（3）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Management fees and
maintenance 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 andJingzhu Expressway GuangzhuSection , investment in technological industries and provision of relevant consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co.,Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangdong Guangle Expressway Co.,Ltd. and Guoyuan Securities Co., Ltd.The financial statements have been authorized for issuance by the Board of Directors of the Group on August28,2019.As of June 30,2019,A total of 5 subsidiaries of the Company that were included in the scope of consolidation arelisted in Note 9 “The equity in other entities”. The scope of consolidation of the Company for the current year wasreduced by one subsidiary from the previous year. Refer to Note 8 “Changes of the scope of consolidated financialstatements” for details.IV. Basis for the preparation of financial statements
1.Preparation basis
The financial statements of the Company have been prepared on basis of going concern in conformity withChinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprisesissued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33, theMinistry of Finance revised order No.76) on February 15, 2006, and revised Accounting Standards (order 42 ofthe Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities tothe Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China SecuritiesRegulatory Commission (CSRC).According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises, theCompany has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the lowerof its book value at its classification date and fair value minus expected disposal costs. Where assets are impaired,provisions for asset impairment are made in accordance with relevant requirements
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will causematerial 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:
The Company and subsidiaries are mainly engaged in highway investment and operation management. TheCompany formulates the specific accounting policies and accounting estimates for revenue recognition and othertransactions and events in accordance with the actual business operation characteristics of the Company andsubsidiaries, and provisions of the relevant accounting standard for business enterprises, please see Note 5.24“Revenue” for details. The description of significant account judgment and estimates made by management,please see Note 5.28 “Significant accounting judgment and estimates.”
1. Statement of Compliance with the Accounting Standards for Business EnterprisesThe financial statements of the Company are recognized and measured in accordance with the regulations in theChinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial position,business result and cash flow of the Company as of June 30, 2019. In addition, the financial statements of theCompany comply, in all material respects, with the revised disclosing requirements for financial statements andthe Compilation Rules for Information Disclosure by Companies Offering Securities to the PublicNo.15—General Provisions on Financial Reports (2014 Revision) issued by China Securities RegulatoryCommission (CSRC) in 2014.
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim period refers tothe reporting period shorter than a complete annual period. The accounting period of the Company is the calendaryear from January 1 to December 31.
3.Operating cycle
The normal business cycle refers to the period from the purchase of assets for processing to the realization of cashor cash equivalents. The Company takes 12 months as a business cycle and uses it as a criterion for liquidityclassification of assets and liabilities.
4.Standard currency for bookkeeping
Yuan (CNY) is the currency of the primary economic environment in which the Company and its domesticsubsidiaries operate. Therefore, the Company and its domestic subsidiaries choose CNY as their functionalcurrency. The Company adopts CNY to prepare its functional statements.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the SameControlA business combination is a transaction or event that brings together two or more separate entities into onereporting entity. Business combinations are classified into business combinations involving enterprises undercommon control and business combinations not involving enterprises under common control.
1.Business Combinations under the Same Control
A business combination involving enterprises under common control is a business combination in which allof the combining enterprises are ultimately controlled by the same party or parties both before and after thecombination, and that control is not transitory.
For a business combination involving enterprises under common control, the party that, on the combinationdate, obtains control of another enterprise participating in the combination is theabsorbing party, while that otherenterprise participating in the combination is a party being absorbed. Combination date is the date on which theabsorbing party effectively obtains control of the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise beingcombined at the combination date. The difference between the carrying amount of the net assets obtained and thecarrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted tothe capital premium (or share premium) in the capital reserve. If the balance of the capital premium (or sharepremium) is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to thecombination shall be recognized as an expense through profit or loss for the current period when incurred.
2. Business Combinations not under the Same Control
A business combination involving enterprises not under common control is a business combination in whichall of the combining enterprises are not ultimately controlled by the same party or parties both before and after thebusiness combination.
For a business combination not involving enterprises under common control, the party that, on theacquisition date, obtains control of another enterprise participating in the combination is the acquirer, while thatother enterprise participating in the combination is the acquiree. Acquisition date is the date on which the acquirereffectively obtains control of the acquiree.
For a business combination not involving enterprise under common control, the combined cost including thesum of fair value, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securitiesissued by the acquirer. The intermediary expenses incurred by the acquirer in respect of auditing, legal services,valuation and consultancy services, etc. and other associated administrative expenses attributable to the businesscombination are recognized in profit or loss when they are incurred.
The transaction cost arose from issuing of equity securities, or liability securities shall be initially recognizedas equity securities or liability securities. The contingent consideration related to the combination shall be bookedas combination cost at the fair value at the acquisition date. If within the 12 months after the acquisition,additional information can prove the existence of related information at the acquisition date and the contingentconsideration need to be adjusted, goodwill can be adjusted.
Combination cost of the acquirer’s interest and identifiable net assets of the acquirer acquired through thebusiness combination shall be measured by the fair value at the acquisition date. Where the costof combinationexceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference shall berecognized as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of theacquiree’s identifiable net assets, the difference shall be accounted for according to the following requirements: (i)the acquirer shall reassess the measurement of the fair values of the acquiree’s identifiable assets, liabilities andcontingent liabilities and measurement of the cost of combination; (ii) if after that reassessment, the cost ofcombination is still less than the acquirer’s interest in the fair values of the acquiree’s identifiable net assets, theacquirer shall recognize the remaining difference immediately in profit or loss for the current period.
Where the temporary difference obtained by the acquirer was not recognized due to conformity with theconditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional
information can prove the existence of related information at acquisition date and the expected economic benefitson the acquisition date arose from temporary deductible difference by the acquiree can be achieved, relevantincome tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall berecognized as the profit of the current period.Apart from above, the differences shall be taken into profit or loss of the current period if the recognition ofdeferred income tax assets is related to the combination.
For a business combination not involving enterprise under common control, which achieved in stages thatinvolves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance ofAccounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article 51 of “Accounting Standards forBusiness Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion (see Note 4.5.2),to judge the multiple exchange transactions whether they are the "package deal". If it belongs to the “packagedeal” in reference to the preceding paragraphs of this section and the Notes described in 4.13 “long-terminvestment” accounting treatment, if it does not belong to the “package deal” to distinguish the individualfinancial statements and the consolidated financial statements related to the accounting treatment:
In the individual financial statements, the total value of the book value of the acquiree's equity investmentbefore the acquisition date and the cost of new investment at the acquisition date, as the initial cost of theinvestment, the acquiree's equity investment before the acquisition date involved in other comprehensive income,in the disposal of the investment will be in other comprehensive income associated with the use of infrastructureand the acquiree directly related to the disposal of assets or liabilities of the same accounting treatment (that is,except in accordance with the equity method of accounting in the defined benefit plan acquiree is remeasured netchanges in net assets or liabilities other than in the corresponding share of the lead, and the rest into the currentinvestment income).
In the combination financial statements, the equity interest in the acquiree previously held before theacquisition date re-assessed at the fair value at the acquisition date, with any difference between its fair value andits carrying amount is recorded as investment income. The previously-held equityinterest in the acquiree involvedin other comprehensive income and other comprehensive income associated with the purchase of the foundationshould be used party directly related to the disposal of assets or liabilities of the same accounting treatment (that is,except in accordance with the equity method of accounting in the acquiree is remeasured defined benefit plansother than changes in net liabilities or net assets due to a corresponding share of the rest of the acquisition dateinto current investment income).
6.Methods for Preparing the Consolidated Financial Statements
（1）The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control.Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from itsoperating activities. The scope of consolidation includes the Company and all of the subsidiaries. The subsidiaryis an enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant elementsinvolved in the control of the change, the Company will be re-evaluated.
（2） Preparation of the consolidated financial statements
The subsidiary of the Company is included in the consolidated financial statements from the date when thecontrol over the net assets and business decisions of the subsidiary is effectively obtained and excluded from thedate when the control ceases.
For a subsidiary disposed of by the Company, the operating results and cash flows before the date ofdisposal (the date when control is lost) are included in the consolidated income statement and consolidated
statement of cash flows, as appropriate. For a subsidiary disposed of during the period, no adjustment is made tothe opening balance of the consolidated financial statements. For a subsidiary acquired through a businesscombination not under common control, the operating results and cash flows from the acquisition (the date whenthe control is obtained) are included in the consolidated income statement and consolidated statement of cashflows, as appropriate; no adjustment is made to the opening balance and comparative figures in the consolidatedfinancial statements.Where a subsidiary was acquired during the reporting period, through a business combination involvingenterprises under common control, the financial statements of the subsidiary are included in the consolidatedfinancial statements. The results of operations and cash flow are included in the consolidated balance sheet andthe consolidated income statement, respectively, based on their carrying amounts, from the date that commoncontrol was established, and the opening balances and the comparative figures of the consolidated financialstatements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of theCompany,the Company makes necessary adjustments to the financial statements of the subsidiary based on the Company’sown accounting period or accounting policies. Where a subsidiary was acquired during the reporting periodthrough a business combination not under common control, the financial statements were reconciled on the basisof the fair value of identifiable net assets at the date of acquisition. Intra-Group balances and transactions and anyunrealized profit or loss arising from intra-Group transactions are eliminated in preparing the consolidatedfinancial statements.
Minority interest and the portion of the net profit or loss not attributable to the Company are presentedseparately in the consolidated balance sheet within shareholders’/ owners’ equity and net profit. Net profit or lossattributable to minority shareholders in the subsidiaries is presented separately as minority interest in theconsolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders. of a subsidiaryexceeds the minority shareholders’ portion of the opening balance of shareholders’/equity of the subsidiary, theexcess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment orother reasons, the remaining equity investment is re-measured at its fair value at the date when control is lost. Thedifference between 1) the total amount of consideration received from the transaction that resulted in the loss ofcontrol and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in theformer subsidiary’s net assets immediately before the loss of the control is recognized as investment income forthe current period when control is lost. Other comprehensive income related to the former subsidiary's equityinvestment, using the foundation and the acquiree directly related to the disposal of the same assets or liabilitiesare accounted when the control is lost (i.e., in addition to the former subsidiary, which is remeasured at the netdefined benefit plan or changes in net assets and liabilities resulting from, the rest subsidiaries are transferred tothe current investment income). The retained interest is subsequently measured according to the rules stipulated inthe - “Chinese Accounting Standards for Business Enterprises No.2 - Long-term equity investment” or “ChineseAccounting Standards for Business Enterprises No.22 - Determination and measurement of financial instruments”.See Note 5.14 Long-term equity investments and Note 5.10 Financial instruments for details.
Where loss of control over a subsidiary result from multiple transactions (agreements), the assessment shallbe made as to whether the multiple agreements shall be viewed as a whole as a single transaction. Multipleagreements giving rise to loss of control over a subsidiary is generally viewed as a whole as a single transaction ifthe terms, conditions and economic implications of the multiple agreements satisfy one or more of the following
conditions: 1) the agreements are entered into simultaneously or taking into account the implication of each other;
2) the business objective cannot be achieved without successful completion of all the agreements; 3)theoccurrence of oneagreement is dependent on the result of at least another one agreement; and/or 4) any one singleagreement is not recognized as economic, and the agreements as a whole is economic. Where multiple agreementsdo not satisfy the conditions of being viewed as a single transaction, each agreement shall be treated andaccounted for in accordance with the provisions of disposal of long-term equity investments not resulting loss ofcontrol (see Note 5.14.2.4) or loss of control due to disposal of shares or other events (see the previous paragraph).Where multiple agreements satisfy the conditions of being viewed as a single transaction, each agreement shall betreated and accounted for as a transaction which results in loss of control; differences between the considerationfor disposals prior to loss of control and the net assets proportionate to the shares disposed prior to loss of controlare recognized as other comprehensive income in the consolidated financial statements and transferred to profit orloss at the time of loss of control.
7.Joint venture arrangements classification and Co-operation accounting treatmentA joint arrangement is an arrangement of which two or more parties have joint control. A joint arrangementis either a joint operation or a joint venture, depending on the rights and obligation of the Company in the jointarrangement. A joint operation is a joint arrangement whereby the Company has rights to the assets, andobligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby theCompany has rights to the net assets of the arrangement.
The Company accounts for joint ventures using the equity method, see Note 5.14.2.2 for details.The Company, a joint operator, recognizes in relation to its interest in a joint operation: (a) its assets,including its share of any assets held jointly; (b) its liabilities, including its share of any liabilities incurred jointly;(c) its revenue from the sale of its share of the output arising from the joint operation;(d)its share of the revenuefrom the sale of the output by the joint operation; and (e)its expenses, including its share of any expenses incurredjointly.
When the Company enters into a transaction with a joint operation in which it is a joint operator, such as asale or contribution of assets, the Company, prior to disposal of the assets to a third party by the joint operation,recognizes gains and losses resulting from such a transaction only to the extent of the other parties' interests in thejoint operation. When there is evidence of a reduction in the net realizable value of the assets to be sold orcontributed to the joint operation, or of an impairment loss of those assets which is in line with provisionstipulated by CAS 8, those losses are recognized fully by the Company. When there is evidence of a reduction inthe net realizable value of the assets to be purchased or of an impairment loss of those assets, the Company shallrecognize its share of those losses.
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investmentshaving short holding term (normally will be due within three months from the day of purchase), with strongliquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks ofchange.
9.Foreign Currency Transaction
1 Translation in foreign exchange transactions
Transactions denominated in foreign currencies are translated into the functional currency using thetransaction-date spot exchange rates. Where a transaction is conducted purely for the purpose of exchange onecurrency into another currency, the exchange rate used to translate the foreign currency into the functionalcurrency is the exchange rate that is actually used for the currency exchange.
2 Translation of foreign monetary currency and non-monetary foreign currencyAt the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at thebalance sheet date. All the exchange differences thus resulted are taken to profit or loss, except for ①thoserelating to foreign currency borrowings specifically for construction and acquisition of qualifying assets, whichare capitalized in accordance with the principle of capitalization of borrowing costs, ②hedging accounting, theexchange difference related to hedging instruments for the purpose of net oversea operating investment isrecorded in the comprehensive income till the date of disposal and recognized in profit or loss of the period;exchange difference from changes of other account balance of foreign currency monetary items,
③available-for-trade is recorded into profit or loss except for amortized cost.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spotexchange rate prevailing on the transaction date, and the amount denominated in the functional currency is notchanged. Non-monetary foreign currency items measured at fair value are translated at the spot exchange rateprevailing at the date when the fair values are determined. The exchange difference thus resulted are recognized inprofit or loss for the current period or as capital reserve.
（3）Conversion method of Foreign currency Financial statements
Where the preparation of consolidated financial statements involves overseas operations, if any foreigncurrency monetary item constitutes a net investment in overseas operations in essence, the exchange differenceresulting from the change of exchange rate shall be recognized as other comprehensive gains as the "conversiondifference of foreign currency statements"; when dealing with overseas operations, it shall be included in theprofits and losses of the current period of disposal.
Foreign currency financial statements operated abroad are converted into RMB statements by the followingmethods: assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheetdate; shareholder equity items are converted at the spot exchange rate at the time of occurrence, except for"undistributed profit" items. The revenues and expenses in the income statement are converted with the spotexchange rate on the transaction day. The undistributed profit at the beginning of the year is the undistributedprofit at the end of the year after the conversion of the previous year; the undistributed profit at the end of the yearis calculated and shown according to the items of the profit distribution after the conversion; the differencebetween the total amount of assets and liabilities and shareholders' equity after the conversion is recognized as theconversion difference of foreign currency statements and as other comprehensive income. When the foreignoperation is disposed and the control right is lost, the conversion balance which is presented under theshareholders’ equities item in the balance sheet and arises from the conversion of foreign currency financialstatements related to this foreign operation will be transfered into the current profit and loss fully or in the foreignoperation proportion.
Cash flow of foreign currency shall be converted into spot exchange rate on the date of occurrence of cashflow. The influence of exchange rate fluctuation on cash will be separately presented as an adjustment item in theCash Flow Statement.
The account at the beginning of current year and the actual amount of previous year shall be listed inaccordance with the translation differences statements of the previous year.
During the management of the entire owner's equity of the Company's operations abroad or the loss ofcontrol over overseas operations due to the disposal of part of the equity investment or other reasons, theconverted balance of the foreign currency statements related to the overseas operations, which are attributable tothe owner's rights and interests of the parent Company, as shown below in the balance sheet, shall be transferredto the current profit and loss.
During the management of part of the equity investment or other reasons leading to the reduction of the
proportion of holding overseas operating rights and interests but not losing control over overseas operations, thebalance of foreign currency statement conversion related to the part of overseas operation and disposal will beattributed to the rights and interests of minority shareholders and shall not be transferred to current profits andlosses. During the management of part of the equity of an overseas joint venture or joint venture, the difference inthe conversion of foreign currency statements related to the overseas operation shall be transferred to the profitsand losses of the current period according to the proportion of disposing of the overseas operation.
10.Financial instruments
The Company recognizes the financial assets or liabilities when involved in financial instruments’agreements.
（1）Classification, recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractualcash flow of financial assets, the Company classifies financial assets into: financial assets measured in amortizedcost; financial assets measured at fair value and their's changes are included in other comprehensive income;financial assets measured at fair value and their's changes are included in current profits and losses.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured atfair value, whose changes are included in current profits and losses, relevant transaction costs are directly includedin current profits and losses; For other types of financial assets, relevant transaction costs are included in theinitial recognition amount. Accounts receivable or notes receivable arising from the sale of products or theprovision of labor services that do not include or take into account significant financing components are initiallyrecognized by the Company in accordance with the amount of consideration that the Company is expected to beentitled to receive.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimedat collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets areconsistent with the basic lending arrangements, that is, the cash flow generated on a specific date is only thepayment of principal and interest based on the amount of outstanding principal. For such financial assets, theCompany adopts the method of real interest rate and makes subsequent measurement according to the cost ofamortization. The profits or losses resulting from amortization or impairment are included in current profits andlosses.
②Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow,and the contractual cash flow characteristics of such financial assets are consistent with the basic lendingarrangements. The Company measures such financial assets at fair value and their changes are included in othercomprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculatedaccording to the actual interest rate method are included in current profits and losses.
In addition, the Company designated some non-trading equity instrument investments as financial assetsmeasured at fair value with changes included in other comprehensive income. The Company includes the relevantdividend income of such financial assets in current profits and losses, and the changes in fair value in othercomprehensive gains. When the financial asset ceases to be recognized, the accumulated gains or lossespreviously included in other comprehensive gains shall be transferred into retained income from othercomprehensive income, and not be included in current profit and loss.
③Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured
at fair value and their's changes in financial assets other than financial assets of comprehensive income andclassifies them as financial assets measured at fair value and their's changes that are included in current profits andlosses. In addition, the Company designates some financial assets as financial assets measured at fair value andincludes their changes in current profits and losses in order to eliminate or significantly reduce accountingmismatches during initial recognition. In regard with such financial assets, the Company adopts fair value forsubsequent measurement, and includes changes in fair value into current profits and losses.
（2）Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair valuethrough profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss,relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costsrelating to other financial liabilities are included in the initial recognition amounts..1 Financial liabilities measured by the fair value and the changes recorded in profit or lossThe classification by which financial liabilities held-for-trade and financial liabilities designed at the initialrecognition to be measured by the fair value follows the same criteria as the classification by which financialassets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value andtheir changes are recorded in the current profit or lossTransactional financial liabilities (including derivatives belonging to financial liabilities) are subsequentlymeasured according to fair value. Except for hedging accounting, changes in fair value are included in currentprofits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes areincluded in current profits and losses. The liabilities are included in other comprehensive gains due to changes infair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, thechanges in fair value caused by changes in its own credit risk of other comprehensive gains are included in thecumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. Theamount is transferred to retained earnings. The remaining changes in fair value are included in current profits andlosses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financialliabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include allthe profits or losses of such financial liabilities (including the amount of the impact of the changes in the creditrisk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognitionor formed by its continuous involvement in the transferred financial asset, financial liabilities and financialguarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of theprofit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: ①Thecontractual right to collect the cash flow of the financial asset is terminated; ②The financial asset has beentransferred, and almost all the risks and rewards in the ownership of the financial asset have been transferred tothe transferee; ③The financial asset has been transferred, although the enterprise neither transfers nor retainsalmost all the risks and rewards in the ownership of the financial asset, but it abandoned control of the financialassets.
In case that the enterprise does not transfer or retain almost all risks and rewards on financial assetsownership nor waive to control these assets, relevant financial assets shall be recognized in accordance with the
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognizedcorrespondingly. westbank The term "continuous involvement in the transferred financial asset" shall refer to therisk level that the enterprise faces resulting from the change of the value of the financial asset.If the overall transfer of the financial assets satisfies the derecognition criteria, the difference between thebook value of the transferred financial assets and the sum of the consideration received from transfer andcumulative change in fair value previously recognized in other comprehensive income is accounted into thecurrent profit or loss.
In case that the partial transfer of financial assets meets de-recognition conditions, the book value offinancial assets transferred shall be allocated as per respective fair value between de-recognized or notde-recognized parts, and the difference between the sum of the consideration received due to transfer with theaccumulated amount of fair value changes that is previously included in other comprehensive income and shall beallocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit orloss.The Company shall determine whether almost all the risks and rewards of the ownership of the financialassets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. Ifalmost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee, theconfirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of thefinancial asset have been retained, the confirmation of the financial asset shall not be terminated; if neither thetransfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.In case of remuneration, it shall continue to determine whether the enterprise has retained control over the assetsand conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, the Company shallterminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs anagreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and thecontract terms of the new financial liabilities are substantially different from those of the original financialliabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a newfinancial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (orpart thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm anew financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and theconsideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profitsand losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assetsand financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle thefinancial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount ispresented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shallbe presented separately in the balance sheet and shall not be offset.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderlytransaction that occurs on the measurement date. The fair value of financial instruments existing in an activemarket is determined by the Company according to its quoted price in this market. westbank The quoted prices inthe active market refer to the prices, which are easily available from the stock exchanges, brokers, industry
associations, pricing service institutions and etc. at a fixed term, and which represent the prices at which actuallyoccurred market transactions are made under fair conditions.?¨ In can a financial instrument does not exist inactive markets, its fair value shall be determined by the Company with assessment techniques. The value appraisaltechniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latestmarket transaction upon their own free will, the current fair value obtained by referring to other financialinstruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc. Invaluation, the Company adopts valuation techniques that are applicable in the current situation and supported bysufficient data and other information to select input values consistent with the characteristics of assets or liabilitiesconsidered by market participants in the transactions of related assets or liabilities, and give priority to the use ofrelevant observable input values as far as possible. Unallowable values are used if the relevant observable inputvalues are not available or are not practicable.
（7）Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company afterdeducting all of its liabilities. The consideration received from issuing equity instruments, net of transaction costs,are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company toholders of equity instruments are deducted from shareholders’ equity.The dividends (including "interest" generated by the tools classified as equity instruments) distributed by theCompany's equity instruments during the period of their existence shall be treated as profit distribution.
11. Impairment provision for financial assets
The Company requires to confirm that the financial assets lost by impairment are financial assets measuredby amortized cost, investment in debt instruments and lease receivables which are measured at fair value andwhose changes are included in other comprehensive gains, mainly including notes receivable, accounts receivable,other receivables, creditor's rights investment, other creditor's rights investment and long-term receivables and etc.In addition, provision for impairment and confirmation of credit impairment losses are also made for contractassets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss, the Company calculates impairment preparation and confirms creditimpairment loss according to the applicable anticipated credit loss measurement method (general method orsimplified method).
Credit loss refers to the difference between the cash flow of all contracts discounted according to the originalreal interest rate and the expected cash flow of all contracts receivable according to the contract, that is, thepresent value of all cash shortages. Among them, the Company discounts the financial assets purchased ororiginated with credit impairment at the actual interest rate adjusted by credit.
The general method of measuring anticipated credit loss is whether the credit risk of the Company'sfinancial assets (including other applicable items such as contract assets, similarly hereinafter) has increasedsignificantly since the initial recognition on each balance sheet day. If the credit risk has increased significantlysince the initial recognition, the Company shall measure the loss preparation according to the amount equivalentto the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initialrecognition, the Company shall measure the loss preparation according to the amount equivalent to the expectedcredit loss in the next 12 months. The Company shall consider all reasonable and evidenced information,including forward-looking information, when evaluating expected credit losses.
Assuming that their credit risk has not increased significantly since the initial recognition, the Company may
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financialinstruments with low credit risk on the balance sheet date.
(2) Criteria for judging whether credit risk has increased significantly since the initial recognitionIf the probability of default of a financial asset on the estimated duration of the balance sheet is significantlyhigher than the probability of default during the estimated duration of the initial recognition, the credit risk of thefinancial asset is significantly increased. Except for special circumstances, the Company uses the change ofdefault risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration todetermine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk, such astthe receivables in dispute with the other party or involving litigation and arbitration, and receivables that has beenproved that the debtor may not be able to fulfill the obligation of repayment, etc.In addition to the financial assets that assess credit risk individually, the Company shall divide financialassets into different groups based on common risk characteristics, and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration, the Company shall calculate the anticipated credit losses of various financialassets. If the anticipated credit losses are greater than the book value of its current impairment provision, thedifference is deemed as impairment loss. If the balance is less than the book value of the current impairmentprovision, the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
①Receivable
In regard to receivables without significant financing components, the Company shall measure losspreparation according to the amount of anticipated credit loss equivalent to the entire duration.
In regard to accounts receivable with significant financing components, the Company shall choose tomeasure loss preparation according to the amount equivalent to the expected credit loss within the duration all thetime.
In addition to the accounts receivable that assesses the credit risk individually, receivables are divided intodifferent portfolios based on their credit risk characteristics:
| Items | Basis for determining combination: |
| Protfolio 1 | This portfolio is characterized by the aging of receivables as a credit risk. |
For the above portfolio 1, the measurement method of bad debts reserve is the aging analysis method,specifically as follows
| Aging | Proportion （%） | Other receivable proportion（%） |
| Within 1 year（Including 1 year） | 0 | 0 |
| 1-2 years | 10 | 10 |
| 2-3 years | 30 | 30 |
| 3-4 years | 50 | 50 |
| 4-5 years | 90 | 90 |
| Over 5 years | 100 | 100 |
②Other receivable
The Company has measured the impairment loss based on the amount of expected credit losses in the next12 months or the entire duration, based on whether the credit risk of other receivables has increased significantlysince the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually,
they are divided into different portfolios based on their credit risk characteristics:
| Items | Basis for determining combination: |
| Protfolio 1 | This portfolio is a collection of various deposits, advances, pledges and other receivables in daily activities. |
| Protfolio 2 | This portfolio is a reserve fund borrowed by employees in their daily business activities. |
| Protfolio 3 | Other receivables other than the above portfolio. |
For portfolios 1 and 2 above, no provision for bad debts is generally made unless there is evidence of loss ofassets. For portfolio 3 above, the provision for bad debts is the same as portfolio 1 for receivables.
③ Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. TheCompany has measured the impairment loss based on the amount of expected credit losses in the next 12 monthsor the entire duration, based on whether the credit risk has increased significantly since the initial recognition. TheCompany adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
12.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industrieNo
1.Investories class: The company’s stocks can be classified as: raw materials, etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to theweighted averages method or the first-in first-out method.
3. Determination of net realizable value of inventories and impairment allowance for inventories
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costsof completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable value isdetermined on the basis of clear evidence obtained and takes intoconsideration the purpose of holding inventoriesand effect of post balance sheet events.
At the balance sheet date, inventories are measured at the lower of the cost and net realizable value. If thenet realizable value is below the cost of inventories, a provision for decline in value of inventories is made. Theprovision for inventories decline in value is normally determined by the difference of the cost of the individualitem less its realizable value. For large quantity and low-value items of inventories, provision for decline in valueis made based on categories of inventories.
For items of inventories relating to a product line that are produced and marketed in the same geographicalarea, have the same or similar end users or purposes, and cannot be practicably evaluated separately from otheritems in that product line provision for decline in value is determined on an aggregate basis.
After the provision for decline in value of inventories is made, if the circumstances that previously causedinventories to be written down below cost no longer exist so that the net realizable value of inventories is higherthan their cost, the original provision for decline in value is reversed and the reversal is included in profit or lossfor the period.
4. Physical inventories are managed by the perpetual inventory taking system.
5. Amortization of low-value consumables and packaging materials.
Low-value consumables and packaging materials are fully amortized at the time of issuance.
13. Held-for-sale assets and disposal group
The Company classify a non-current asset or disposal group as held for sale if its carrying amount will berecovered principally through a sale transaction rather than through continuing use. For this to be the case, thefollowing conditions shall be met: a) the asset (or disposal group) must be available for immediate sale in itspresent condition subject to terms that are usual and customary for sales of such assets or disposal groups; b) theCompany has made the resolution on the disposal plan and must be committed to a plan to sell the asset (ordisposal group); c) the sale is expected to be completed within one year from the date of classification. A disposalgroup is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, andliabilities directly associated with those assets that will be transferred in the transaction. The group shall includegoodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has beenallocated in accordance with the requirements of Accounting Standard for Business Enterprises No. 8 –Impairment of assets.
The Company measure a non-current asset or disposal group classified as held for sale at the lower of itscarrying amount and fair value less costs to sell on initial recognition and subsequent remeasurement on thebalance sheet date. An impairment loss is recognized when the carrying amount is higher than the fair value lesscosts to sell, and allowance for impairment is recognized accordingly. For the disposal group, the recognizedimpairment loss on assets is offset against the carrying amount of the goodwill in the disposal group, and thenreduced in proportion of the book value of the non-current assets applicable to "Accounting Standard for BusinessEnterprises No. 42 - Non-current Assets Held for Sale, Disposal Group and Discontinued Operations (hereinafterreferred to as "held for sale accounting principle") measurement requirements. The Company shall recognize again during the period for any subsequent increase in fair value less costs to sell of an asset, but not in excess ofthe cumulative impairment loss that has been recognized after the reclassification to non-current assets held forsale. The book value of assets in the disposal group is increased proportionately according to the proportion of thebook value of each non-current asset except for goodwill. Impairment loss recognized before the reclassificationto non-current assets held for sell shall not be recovered.
Non-current asset or non-current asset in the disposal group classified as held for sale are not subject todepreciation or amortization. The interest and other expenses on liabilities held in the disposal group for sale arecontinuously recognized.
Non-current assets or disposal group that no longer meet the conditions of non-current asset held for sellshall be removed from the category, and shall be measured at the lower of the following: (a) The carrying amountbefore classification as held for sale after adjustment of depreciation, amortization or impairment that should berecognized if it is not classified as non-current assets held for sell; (b) recoverable amount..14. Long-term equity investments
Long-term equity investments in this section refer to the long-term investment through which the Companyhas control, joint control, or material influence on the investee. Long-term equity investments through which theCompany does not have control, joint control or material influence on the investee shall be recognized asavailable-for-sale financial assets or financial assets measured by fair value with changes in fair value recognizedin profit or loss. See 10 for details.
Joint control is the contractually agreed sharing of control over economic activity and exists when the
strategic financial and operating decisions relating to the activity require the unanimous consent of the partiessharing control. Significant influence is the power to participate in the financial and operating policy decisions ofthe investee but is not control or joint control over those policies.
（1）Determination of Investment cost
Long-term equity investment acquired through business combination under common control are measured atthe acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller'sconsolidated financial statements. The difference between the initial cost and cash paid, non-monetary assetstransferred, and liabilities assumed by is adjusted to capital reserves, and to retained earnings if capital reservesare insufficient. If the consideration is paid by issuing equity instruments, the initial cost is measured at theacquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller'sconsolidated financial statements, with the face value of the equity instruments issued recognized as share capitaland the difference between the initial cost and the face value of the equity instruments issued adjusted to capitalreserves, and to retained earnings if capital reserves is insufficient. For business combination involving entitiesunder common control achieved through multiple transactions (acquisition in stages), the multiple agreements areassessed to determine whether they should be viewed as a lump-sum purchase. Where multiple agreements of anacquisition in stages are viewed as a lump-sum purchase, the transactions are viewed as one transaction thatacquires the control power. Where multiple agreements of an acquisition fail the conditions of a lump-sumpurchase, long-term equity investment acquired through business combination under common control aremeasured at the acquirer's share of the combination date book value of the acquiree's net equity in the ultimatecontroller's consolidated financial statements. The difference between the initial cost, and the book value of thelong-term equity investment before combination date and considerations paid to acquire new shares on thecombination date, is adjusted to capital reserves, and to retained earnings if capital reserves are insufficient.Long-term equity investment acquired through business combination not under common control is measuredat combination cost on the combination date. The combination cost includes assets contributed by the purchaser,liabilities incurred or assumed by, and fair value of the equity instruments issued by the acquirer. For businesscombination involving entities not under common control achieved through multiple transactions (acquisition instages), the multiple agreements are assessed to determine whether they should be viewed as a lump-sum purchase.Where multiple agreements of an acquisition in stages are viewed as a lump-sum purchase, the transactions areviewed as one transaction that acquires the control power. Where multiple agreements of an acquisition fail theconditions of a lump-sum purchase, long-term equity investment acquired through business combination not undercommon control are measured at the sum of the original book value of the equity investment on the investee andthe new investment cost, which is regarded as the new initial cost of the long-term investment when transferred tocost method. If the original equity is measured by the equity method, not accounting treatment is applied torelevant other comprehensive income temporarily.The audit, legal services, valuation, and other directly associated administrative expenses incurred by theacquirer are recognized in profit or loss on the transaction dates.
Long-term equity investments acquired not through business combination are measured at cost onnitialrecognition. Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair valueof equity instrument issued, the contract price, the fair value or book value of the assets given away in the case ofnon-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost ofacquisition of a long-term equity investment acquired not through business combination also includes all directlyassociated expenses, applicable taxes and fees, and other necessary expenses. When the Company increaseinvestment to have material influence or joint control, but not control over the investee, long-term investments aremeasured at the sum of the fair value of initial equity investment and cost of new investment as defined in
CAS22-Recognition and Measurement of Financial Assets.
（2）Subsequent measurement and recognition and measurement of gain or lossWhere a long-term equity investment gives the Company either joint control or significant influence overthe respective investee, the investment is subsequently measured using the equity method. Where a long-termequity investment gives the Company control over the respective investee, the investment is subsequentlymeasured at cost.
① Long-term equity investments measured at cost
A long-term equity investment is measured at the cost of investment, excluding declared cash dividends orprofit pending distribution included in the consideration paid. Investment income for the relevant period from along-term equity investment measured at cost is recognized as the Company's share of the cash dividends or profitdeclared for distribution by the investee.
② Long-term equity investments measured using the equity method
When the cost of a long-term equity investment measured using the equity method on initial recognitionexceeds the Company's share of the fair value of the respective investee's net identifiable assets, no adjustment ismade to the cost of the investment for the excess. When the Company's share of the fair value of an investee's netidentifiable assets exceeds the cost of the respective long-term equity investment measured using the equitymethod on initial recognition, adjustment is made to the cost of the investment for the difference and thedifference is carried to profit or loss for the period during which the investment is recognized.
Investment income or loss and other comprehensive income for the relevant period from a long-term equityinvestment measured using the equity method is measured at the Company's share of the net profit or loss andother comprehensive income of the respective investee for the relevant period, and the book value of long-termequity investments is adjusted accordingly. If the investee declares profit distribution or cash dividends, long-termequity investments are reduced by the Company’s share of declared profit distribution or cash dividends in theinvestee. Long-term equity investments will be adjusted, and capital reserves are recognized with variations otherthan net profit or loss, other comprehensive income, and profit distribution. When computing the Company's shareof the net profit or loss of the investee for the relevant period, net profit or loss of the investee for the relevantperiod is adjusted, if necessary, for the fair value of the investee's identifiable assets and identifiable liabilities onacquisition and the Company's accounting policies and accounting period. Investment income and othercomprehensive income is recognized accordingly. The computation of the Company's share of the net profit orloss of the investee for the relevant period also eliminates unrealized profit and loss arising from transactionsbetween the Company and the investee (a joint venture or associate, whichever is applicable) and contributing orselling assets to the investee which forms an operation, to the extent of the Company's share calculated by theCompany's shareholding in the investee for the relevant period, except for the unrealized loss resulted fromimpairment of transferred assets. When contributing assets to the joint venture or associate by the Company formsan operation, and the investor acquires the long-term equity investment without control, long-term equityinvestments are measured at fair value of the contributed operations, with the difference between initialinvestment cost and book value of the contributed operation fully recognized in profit or loss for the period. Whenselling assets to the joint venture or associate by the Company forms an operation, the difference betweenconsiderations received and book value of the operation is fully recognized in profit and loss for the period. Whenpurchasing assets from the joint venture or associate by the Company belongs to an operation, income and lossesare fully recognized as specified in CAS20-Business Combination. When the Company's share of an investee's netloss exceeds the sum of the carrying amount of the respective long-term equity investment measured using theequity method and other investments in the investee, the carrying amount of the long-term equity investment andother investments in the investee is reduced to zero. If the Company is obliged to share loss of the investee after
its long-term equity investment and other investments have been reduced to zero, an investment loss and provisionis recognized to the extent of the estimated obligation. If the investee reports profits in subsequent periods, theCompany only recognizes its share of profit after its share of profit equals the share of loss not recognized.
For long-term equity investments in associates and joint ventures which had been held by the Companybefore its first time adoption of new accounting standards, where the initial investment cost of a long-term equityinvestment exceeds the Company’s share in the investee’s net assets at the time of acquisition, the excess isamortized and is recognized in profit or loss on a straight-line basis over the original remaining life.
③ Acquisition of minority interests
If minority interests in an investee is acquired by the Company, during the Company's preparation of theconsolidated financial statements, the difference between the Company's cumulative share of the investees netassets calculated on the basis of the new shareholding in the investee from the acquisition date (or combinationdate) and the Company's investment in the investee following the minority interest acquisition is adjusted tocapital reserves, and to retained earnings if capital reserves is insufficient.
④Disposal of long-term equity investments
On the consolidated financial statements, when partly disposal of a long-term equity investment in asubsidiary which does not cause loss of control over the subsidiary, the difference between the consideration fordisposal and the net identifiable asset given away proportionate to the disposed shares in the subsidiary isrecognized in equity; partly disposal of a long-term equity investment in a subsidiary which causes loss of controlover the subsidiary is accounted for in accordance with Note 5.6.2.
The difference between the consideration for disposal of long-term equity investments and the carryingamount of the long-term equity investments disposed of is recognized in profit or loss for the period during whichthe investments are disposed of.
When a long-term equity investment measured using the equity method is disposed, and the residual equityafter disposal is still measured using equity method, the respective cumulative other comprehensive incomerecognized in equity proportionate to the disposed of investment shall adopt the same accounting treatment as theinvestee disposes of relevant assets or liabilities directly. Movement in investee's equity other than changes in netprofit or loss, other comprehensive income, and profit distribution is recognized in profit or loss proportionally.
When a long-term equity investment measured using the cost method is disposed and the residual equityafter disposal is still measured using cost method, other comprehensive income, which is recognized by equitymethod or recognition and measurement applicable to financial instruments prior to the Company's acquisition ofcontrol over the investee, shall adopt the same accounting treatment as the investee disposes relevant assets orliabilities directly on the date of loss of control, and profit or loss is recognized proportionally. Movement ininvestee's equity other than changes in net profit or loss, other comprehensive income, and profit distribution isrecognized in profit or loss proportionally. Where the Company's control over an investee is lost due to partialdisposal of investment in the investee and the Company continues to have significant influence over the investeeafter the partial disposal, the investment is measured by equity method in the Company's separate financialstatements; where the Company's control over an investee is lost due to partial disposal of investment in theinvestee and the Company ceases to have significant influence over the investee after the partial disposal, theinvestment is measured in accordance with the recognition and measurement principles applicable to financialinstruments in the Company's separate financial statements and the difference between the fair value and bookvalue of the remaining investment at the date of loss of control is recognized in profit or loss. Cumulative othercomprehensive income relevant to the investment, which is recognized by equity method or recognition andmeasurement principles applicable to financial instruments prior to the Company's acquisition of control over theinvestee, shall adopt the same accounting treatment as the investee disposes relevant assets or liabilities directly
on the date of loss of control, The investee's equity movement other than changes in net profit or loss, othercomprehensive income and profit distribution, as a result of accounting by equity method, is recognized in profitor loss when control is lost. Where the remaining investment is measured by equity method, the afore-mentionedother comprehensive income and other equity movement are recognized in profit or loss proportionate to thedisposal; Where the remaining investment is measured in accordance with the recognition and measurementprinciples applicable to financial instruments, the afore-mentioned other comprehensive income and other equitymovement are fully recognized in profit or loss.Where the Company's joint control or significant influence over an investee is lost due to partial disposal ofinvestment in the investee, the remaining investment in the investee is measured in accordance with therecognition and measurement principles applicable to financial instruments, the difference between the fair valueand the book value of the remaining investment at the date of loss of joint control or significant influence isrecognized in profit or loss. Cumulative other comprehensive income relevant to the investment, which isrecognized by equity method or recognition and measurement principles applicable to financial instruments priorto the Company's acquisition of control over the investee, shall adopt the same accounting treatment as theinvestee disposes relevant assets or liabilities directly on the date of loss of control, The investee's equitymovement other than changes in net profit or loss, other comprehensive income and profit distribution, as a resultof accounting by equity method, is recognized in profit or loss when control is lost.Where the Company's control over an investee is lost through multiple disposals and the multiple disposalscan be viewed as a lump-sum transaction, the multiple disposals are accounted for one single transaction whichresults in the Company's loss of control over the investee. Difference between the consideration received and thebook value of the investment disposed at each time of disposal is recognized in other comprehensive income andreclassified in full to profit or loss at the period when control over the investee is lost.
15..Investment Property
The measurement mode of investment propertyThe measurement by the cost methodDepreciation or amortization methodInvestment property is held to earn rentals or for capital appreciation or for both. Investment propertyincludes leased or ready to transfer after capital appreciation land use rights and leased buildings. Investmentproperty is initially measured at cost. Subsequent expenditures related to an investment real estate are likely toflow about the economic benefits of the asset, and its cost can be measured reliably, is included in the cost ofinvestment real estate. Other subsequent expenditure in the profit or loss when it incurred.The Group uses the cost model for subsequent measurement of investment property, and in accordance withthe depreciation or amortization of buildings or land use rights policy.Investment property impairment test method and impairment accrual method described in Note 20“Non-current and non-financial assets impairment."
Occupied real estate for investment property or investment property is transferred to the owner-occupied realestate or stock conversion as the recorded value after the conversion, according to the book value before theconversion.
Investment property change into the Owner-occupied real estate, since the change of date for the investmentproperty, is transferred to fixed assets or intangible assets. Change the owner-occupied property held to earnrentals or for capital appreciation, since the change of date, the fixed assets or intangible assets to investmentproperty. Conversion occurs when converted to investment property using the cost model, as the book value
before the conversion of the recorded value after the conversion; converted to investment property measured atfair value model, the fair value of the conversion date as the recorded value after conversion.Derecognized, when the investment property is disposed of or permanently withdrawn from use and theexpected economic benefits, cannot be obtained from the disposal of investment property. Proceeds on disposal ofinvestment property is sold, transferred, retired or damaged through profit or loss after deducting the book valueand related taxes.
16.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.The fixed assets are recognized only after relevant economic interests probably flow into the Company andcosts are reliably measured. The initial calculation will be made for the fixed assets based on the cost and theinfluence of expected disposal cost.
（2）Depreciation method
The Company's fixed assets of highways and bridges are depreciated within the approved charging period byworkload method from the next month after reaching the intended usable state. The specific method is as follows:
calculate the depreciation amount of each standard traffic flow based on the predicted total standard traffic flow orbook value of roads and bridges within the tolling period, and then calculate and withdraw depreciation amountaccording to the actual standard traffic flow during each accounting period. Fixed assets other than highways andbridges are depreciated within the service life by the method of average life from the next month when they reachthe intended usable state.
Expected net residual value of fixed assets is the balance of the Company currently obtained from the
| Type | Depreciation method | Expected useful life(Year) | Residual rate（%） | Annual depreciation rate(%) |
| Guangfo Expressway | Working flow basis | 28 years | 0% | |
| Fokai Expressway-Xiebian to Sanbao Section | Working flow basis | 40 years | 0% | |
| Fokai Expressway-Sanbao to Shuikou Section | Working flow basis | 30 years | 0% | |
| Jingzhu Expressway Guangzhu Section | Working flow basis | 30 years | 0% | |
| House Building | The straight-line method | 20-30 years | 3%-10% | 3%-4.85% |
| Machine Equipment | The straight-line method | 10 years | 3%-10% | 9%-9.7% |
| 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% |
disposal of the asset less the estimated costs of disposal amount, assuming the asset is out of useful life and statethe expected service life in the end.
(3) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset ImpairmentReservesFor the impairment test method and the impairment provision withdrawing method of the Fixed assets,please refer to “Long-term Assets Impairment in Article 21 of Important Accounting Policies and AccountingEstimates in Notes 5 of Financial Statements”.
（4）Recognition and measurement of fixed assets held under financial lease
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of anasset. The title may or may not eventually be transferred. Fixed assets that are held under finance leases shall bedepreciated by applying the same policy as that for the fixed assets owned by the Company. If it can be reasonablydetermined that the ownership of the leased assets can be obtained at the end of the lease period, the leased assetsare depreciated over their useful lives; otherwise, the leased assets are depreciated over the shorter of the leaseterms and the useful lives of the leased assets.
（5） Other notes
A fixed asset is recognized only when the economic benefits associated with the asset will probably flow tothe Company and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed assetthat meets the recognition criteria shall be included in the cost of the fixed asset, and the carrying amount of thecomponent of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall berecognized in profit or loss in the period in which they are incurred.
The revenue from selling or transferring or disposing of a fixed asset is booked into profit and loss afterdeduction of carrying value and related tax.
The Company conducts a review of useful life, expected net realizable value and depreciation methods ofthe fixed asset at least on an annual base. Any change is regarded as a change in accounting estimates.
17.Construction-in process
The cost of construction in progress is measured at the actual expenditure incurred, including constructionexpenditure and capitalization of borrowing costs and other applicable costs incurred prior to the completion. Anitem of construction in progress is reclassified to fixed asset upon completion.
See Note 5.21 for details of assessment for impairment of construction in progress and impairmentallowance for construction in progress.
18.Borrowing cost
Borrowing costs include interests on loans, amortization of discount or premium, ancillary expenses, andforeign exchange difference on loans denominated in foreign currencies. Borrowing costs directly associated withthe acquisition of construction of a qualifying asset are eligible for capitalization. Capitalization starts whenexpenditure on the qualifying asset is incurred, borrowing costs are incurred, or production or construction of thequalifying asset for its intended use or sales is started, whichever is later. Capitalization stops when the qualifyingassets reach the condition of its intended use or sales. All other borrowing costs are recognized in profit or loss for
the period during which they are incurred.
When a loan is taken out specifically for the construction of a particular qualifying asset, the interestexpense capitalized for a particular period is the residual amount after deducting interest income from unusedfacilities for the period and/or income from temporary investment of the unused facilities for the period from theinterest expense incurred for the period. Borrowing costs on general purpose financing are calculated bymultiplying the weighted average of the excess of cumulative capital expenditure over the designated financingfacilities with the capitalization rate of general purpose financing. The capitalisation rate of general purposefinancing is calculated as the weighted average of the interest rates of general purpose financing.Foreign exchange difference on designated financing denominated in foreign currencies incurred during thecapitalization period is wholly capitalized. Foreign exchange difference on general purpose financingdenominated in foreign currencies is recognized in profit or loss for the period during which it is incurred.A qualifying asset is an item of fixed assets, investment property, inventories, etc. which requires asubstantial period of time for the construction or production for its intended use of sales.If the construction or production of a qualifying asset stops for a period longer than three months,capitalization of borrowing costs is suspended until the construction or production is resumed.
19.Intangible assets
(1) Pricing method, useful life and impairment test
An intangible asset is an identifiable non-monetary asset without a physical form which is owned or controlby the Company. Intangible assets are measured at cost on initial recognition. If it is probable that economicbenefits associated with expenditure directly associated with an item of intangible assets will flow to the Companyand the cost of the expenditure can be reliably measured, the expenditure is measured as part of the intangibleasset's initial cost; all other expenditure is recognized in profit or loss for the period during which it is incurred.
Land use rights acquired are generally recognized as intangible assets. In the case of a self-constructedbuilding, the costs of acquiring the respective land use right(s) and the costs of building construction areseparately recognized and measured as intangible assets and fixed assets respectively. In the case of a purchasedbuilding, the costs of acquisition are allocated to land useright(s) and building; if the reasonable allocation isimpossible, the costs of acquisition as a whole are recognized and measured as fixed assets. For an item ofintangible assets which is with a finite useful life, the residual amount after deducting its estimated residual valueand previously recognized impairment from its cost is amortized over its estimated remaining useful life using thestraight-line method starting from the month in which it reaches the conditions of its intended use of sales.Intangible assets with infinite useful life are not amortized.
Useful lives of intangible assets are a review on each balance sheet date. If circumstances indicate that thereis a change in the useful life of an item of intangible assets with a finite useful life, a change in accountingestimates is carried out. If circumstances indicate that the useful life of an item of intangible assets with infiniteuseful life becomes finite, the useful life of the intangible asset is estimated, and the intangible asset is amortizedaccordingly.
See Note 5.21 for details of assessment for impairment of intangible assets and impairment allowance forintangible assets.
（2） Research and development expenditure
A research and development project is divided into research stage and development stage. Expenditure
incurred during the research stage is recognized in profit or loss for the period during which it is incurred.
Expenditure incurred during the development stage is recognized as intangible assets if all of the followingconditions are satisfied:
a. it is technically feasible to complete the intangible asset so that it can be used or sold;
and b. the Company has clear intention to complete the intangible asset and to use it or sell it;
and c. it is evidential that the intangible asset will generate economic benefits either by selling theintangible asset itself or the goods produced by the intangible asset or by using it internally;
and d. there are sufficient technical, financial and other resources to complete the intangible asset and theCompany is able to use it or sell it,
and e. expenditure incurred in the development stage of the intangible asset can be reliably measured.
Where a research and development project cannot be separated into the research stage and developmentstage, all expenditure incurred for the project is recognized in profit or loss for the period during which it isincurred.
20. Long-term amortizable expenses
An item of deferred charges is an expense incurred which brings economic benefits to the Company for aperiod exceeding one year starting from the transaction date. An item of deferred charges is amortized over itsestimated useful life using the straight-line method.
21.Impairment of Long-term assets
Non-current non-monetary assets, such as fixed assets, construction in progress, intangible assets with finiteuseful life, investment property measured by cost, and long-term equity investments in subsidiaries, joint ventures,and associates, are assessed for impairment on each balance sheet date. If circumstances on a balance-sheet dateindicate that a non-current non-monetary asset is impaired, the recoverable amount of the asset is estimated. Therecoverable amounts of goodwill, intangible assets with infinite useful live and intangible assets which have notyet reached the conditions of their intended use or sales are estimated at least once a year regardless of whetherthere is an indication of impairment.
If the carrying amount of a non-current non-monetary asset exceeds its estimated recoverable amount, theexcess of the carrying amount over the estimated recoverable amount is recognized as impairment allowance, andan impairment loss of the same amount is recognized. The estimated recoverable amount of an asset is the higherof the residual amount after deducting disposal expense of the asset from its fair value and the present value of itsfuture cash flows. Where there is a sales contract for an asset, and the contract is entered into for an arm's lengthtransaction, the fair value of the asset is the contract price; where there isn't a sales contract for an asset, but thereis an active market for it, the fair value of the asset is price offered by the buyer; where there is neither a salescontract nor an active market for an asset, the fair value of the asset is the best estimate based on all availableinformation. The disposal cost of an asset includes legal expenses, applicable taxes and fees and transportationcosts directly associated with the asset's disposal and all direct costs necessary to bring the asset to its sellablecondition. The present value of an asset's future cash flows is calculated by multiplying the cash flows arisingfrom the continual use of the asset and its disposal at an appropriate discount rate. An impairment allowance isgenerally calculated on the basis of individual assets. If it is not possible to estimate the recoverable amount of anindividual asset, the recoverable amount of a cash-generating unit to which the asset belongs is estimated. Acash-generating unit is the smallest combination of assets that are capable of cash flow generation. Goodwillseparately presented on the (consolidated) financial statements is allocated to cash-generating units or groups ofunits that are expected to benefit from the synergy of business combination for impairment testing. Where therecoverable amount a cash-generating unit (or group of units) is lower than its carrying amount, an impairment
loss is recognized.The impairment loss is firstly allocated to the goodwill allocated to the unit (or group of units) and then toindividual assets pro rata on the basis of the carrying amount of each asset in the unit (or group of units) Theimpairment loss recognized in accordance with this section is irreversible in subsequent periods.
22. Employee Benefits
（1）Accounting methods of short-term benefits
Short-term employee benefits include wages, bonuses, allowances and subsidies, welfare, health insurance,maternity insurance, work injury insurance, housing funds, labor union funds, employee education funds,non-monetary benefits etc. Short-term employee benefits are recognized as liabilities and profit or loss account orthe costs associated with the asset during the accounting period when employees actually provide services. Thenon -monetary benefits are measured at fair value.
(2) Accounting methods for post-employment benefits Post-employment benefits include defined contributionplans and defined benefit plans. Defined contribution plan which includes the basic pension, unemploymentinsurance and annuities shall be recognized as cost of related assets or profit or loss.
(3) Accounting Treatment Method of Demission Welfare
When the Company terminates the labor relationship with employees prior to the employment contracts, orencourages employees to accept voluntary redundancy compensation proposals in this company, a provision shallbe recognized for the compensation arising from the termination of employment relationship with employees atthe time when the Company cannot unilaterally withdraw layoff proposal termination benefits provided due totermination of employment or the Company ensures the costs related to the payment for termination benefitsrelated to the restructuring, which one is early to confirm employee benefits liabilities, and recorded as profit orloss. However, if termination benefits cannot be fully paid within twelve months of the reporting date the liabilityshall be processed in accordance with other long-term employee benefits.
Retirement plan adopts the same principles as the termination benefits. The salaries and insurance to bepaid from the date when employees stop providing services to the date of normal retirement shall be recognized inprofit or loss (termination benefits) when satisfying the requirements of a provision.
（4）Other long-term employee benefits
Other long-term employee benefits provided by the Company to employees that are in line with definedcontribution plans shall adopt the accounting treatment in accordance with defined contribution plans, otherwisethe accounting treatment of defined benefit plans.
23.Estimated liabilities
A contingent liability is recognized as provision if all or the following conditions are satisfied:
a. it is a present obligation assumed by the Company;
and b. it is probable that the fulfillment of the obligation will cause economic benefit flows from theCompany;
and c. the amount of the obligation can be reliably measured.
A provision is measured on a balance-sheet date as the best estimate of the amount that is required for the
fulfillment of the present obligation after considering of the risks and uncertainty associated with the respectivecontingent events and the time value of money.If the amount required for settlement of a provision is wholly or partly reimbursed by a third party, thereimbursement is recognized separately as an asset to the extent of the carrying amount of the provision if it isprobable that the reimbursement becomes receivable.
(1) Loss contract
Loss contract is a contract in which the cost of performing contractual obligations inevitably exceeds theexpected economic benefits. Where the pending contract becomes a loss contract, and the obligations arising fromthe loss contract meet the recognition conditions of the above-mentioned expected liabilities, the part of theexpected loss of the contract exceeding the recognized impairment loss of the underlying asset of the contract (ifany) shall be recognized as the expected liability.
(2) Restructuring obligations
For a restructuring plan with detailed, formal and public announcement, the amount of the estimatedliabilities is determined according to the direct expenditure related to the restructuring, subject to the aboveconditions for confirmation of the estimated liabilities.
24. Revenues
Whether the Company needs to comply with the disclosure requirements for specific industriesNoWhether implemented new revenue guidelines?
□ Yes √ No
The company’s incomes mainly include the toll service revenues and the services provision.
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable byvehicles when passing through.
(2) Provision of labor service
Incomes from labors services that start and complete within the same fiscal year shall be recognized whenthe services are finished. If the beginning and completion of labor services belong to different fiscal years, theCompany shall, on the balance sheet date, recognize the related labor income by the percentage of completionmethod, provided that the result of the labor service transaction can be reliably estimated. When the followingconditions can be satisfied, the results of the transaction can be reliably estimated: ① the total income and totalcost of labor services can be reliably measured; ② the economic benefits related to the transaction can flow intothe enterprise; ③ the degree of completion of labor services can be reliably determined.
The income from provision of labor services shall be determined as follows in case the result of the providedlabor service transaction cannot be reliably estimated on the date of the Balance Sheet:
① If the labor cost already incurred is expected to be compensated, the income from the service shall berecognized according to the amount of the labor cost already incurred, and the labor cost shall be carried over atthe same amount.
If the incurred labor cost is not expected to be compensated, the incurred labor cost shall be included in theprofits and losses of the current period, and the income from the provision of labor service shall not berecognized.
If a contract entered into by the Company and a counterparty involves both sales of goods and rendering ofservices and revenue arising from goods sold and services rendered can be distinguished, revenue from sales of
goods and rendering of services are separately accounted for; if, however, revenue arising from goods sold andservices rendered cannot be distinguished or can be distinguished but cannot be separately measured, all revenueis accounted for as revenue arising from sales of goods.
25. Government Grants
A government grant is a transfer of monetary and non-monetary assets from the government to the Companyfor no consideration, excluding resources transferred to the Company by the government in the capacity of theshareholder. Government grants include grants related to assets and grants related to income.
Government grants obtained by the Company which is relevant to construction or acquisition of long-termassets are classified as asset-related government grants; all other government grants are classified asrevenue-related government grants. For government grants without a specified beneficiary, the Company performsclassification in accordance with the following criteria.
a. Where a grant is obtained for a specified project, the grant is spat into asset-related and revenue relatedportions proportionate to the project's investment to expense ratio; the classification is reviewed on each balancesheet date and revised if necessary.
b. Where a grant is obtained for general purpose, the grant as a whole is classified as a revenue-relatedgovernment grant. If a government grant is in the form of monetary assets, it is measured at the amount receivedor receivable.
If a government grant is in the form of non-monetary assets, it is measured by the fair value of the assets; ifthe fair value of the assets granted cannot be reliably measured, the grant is measured by the nominal value of theassets and is recognized immediately in profit or loss for the relevant period.
In general, the Company recognizes a government grant when it is actually received, and measures at theamount actually received. However, a government grant may be recognized as receivable if it is objectivelyevidential on the reporting date that conditions for the grant receipt are satisfied and thatthe grant is receivable. Agovernment grant is recognized as receivable if all following conditions are satisfied:
a. the amount of the grant is expressly stipulated in an official publication by the authorized governmentalagency or can be reasonably estimated in accordance with fiscal pronouncement issued by the authorizedgovernmental agency, and the estimate is not subject to significant uncertainty;
b. the grant is officially disclosed as part of publicly disclosed fiscal subsidized projects by the local fiscalgovernment bodies in accordance with the Government Information Disclosure Directives and is managed inaccordance with the fiscal plan published and the management of the grant if not entity-specific, i.e., everyeligible entity is entitled to apply;
c. the term for payment is expressly stipulated in the official pronouncement, and the payment is backed byfiscal planning so that it is reasonable to expect receipt within the term of the payment;
and d. other conditions (inapplicable) need to be satisfied taking into account the Company's circumstances.
Grants related to assets are recognized as deferred income and amortized over the useful life of the relevantassets using the straight-line method. A grant related to income is recognized as deferred income if it is related toexpenses or loss to be incurred in the future and is carried to profit or loss for the period during which the relevantexpenses or loss are recognized; it is recognized in profit or loss for the period during which it is received orbecomes receivable if it is related to expenses or loss already incurred. When assets are sold, transferred, disposedor scraped before the end of useful life, the remaining differed income will be transferred to profit or loss in thecurrent period of asset disposal.
The government grants related to the daily activities of the Company are included in other income oroffsetting the related costs according to the substance of the economic business. The government grants unrelated
to the daily activities are included in the non-operating income and expenses. Where a recognized grant becomesrepayable, the amount repayable is firstly charged to the remaining deferred income (if any); the remainingamount after charge to deferred income is recognized in profit or loss for the period during which it becomesrepayable
26.Deferred income tax assets and deferred income tax liabilities
（1）Current income tax
The current income tax liability (asset) on a balance-sheet date is measured at the amount of current incometax payable (receivable) computed in accordance with the relevant tax law. Current income tax expense iscomputed on the basis of taxable profit (loss) which is the amount after the adjustment of the relevant accountingprofit (loss) in accordance with the relevant tax law.
（2）Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are recognized on an accrual basis for the temporarydifference between the carrying amounts of assets and liabilities and their tax bases and the temporary differencearising from the difference in recognition criteria for assets and liabilities between CAS and relevant taxprovisions.
No deferred tax liability is recognized for the temporary taxable difference arising from the initialrecognition of goodwill and the initial recognition of assets and liabilities acquired or assumed resulting fromtransactions which are not business combination, and which do not have impact on both accounting profit andtaxable profit (deductible tax loss) at the time of their occurrence. Similarly, the deferred tax liability is notrecognized for temporary taxable difference associated with investments in subsidiaries, associates, and jointventures if the Company can control the reverse of the temporary difference and it is probable that the temporarydifference is not expected to reverse in the foreseeable future. Except for the circumstances described hereabove,the deferred tax liability is recognized for all other taxable temporary difference.
No deferred tax asset is recognized for the temporary deductible difference arising from the initialrecognition of assets and liabilities acquired or assumed resulting from transactions which are not a businesscombination, and which do not have an impact on both accounting profit and taxable profit (deductible tax loss) atthe time of their occurrence. Similarly, deferred tax asset is not recognized for temporary deductible differenceassociated with investments in subsidiaries, associates, and joint ventures if the Company can control the reverseof the temporary difference and it is probable that the temporary difference is not expected to reverse in theforeseeable future. Except for the circumstances described hereabove, deferred tax asset is recognized for all otherdeductible temporary difference to the extent that it is probable that taxable profit will be available against whichthe temporary deductible difference can be utilized.
Deferred tax asset is recognized for deductible tax loss and tax credit carrying forward to the extent that it isprobable that taxable profit will be available against which the deductible tax loss and tax credit carryforward canbe utilized.
Deferred tax assets and deferred tax liabilities are measured on a balance-sheet date on the basis of tax ratesexpected to be applicable in accordance with relevant tax law at the time when the relevant assets are recovered,or relevant liabilities settled.
The carrying amount of deferred tax assets is reviewed on each balance sheet date. If it is probable thatinsufficient taxable profit is available to utilize the deferred tax assets, the carrying amount of deferred tax assetsis reduced. When it is probable that sufficient taxable profit becomes available after the carrying amount ofdeferred tax assets has been reduced, the reduction is reversed.
（3） Income tax expenses
Income tax expenses include current income tax expenses and deferred income tax expenses.All current income tax expenses (credit) and deferred income tax expenses (gains) are recognized inprofitor loss for the relevant period except for a. current income tax and deferred income tax on transactions and eventswhich are accounted for in other comprehensive income or directly in equity, which are included in othercomprehensive income or directly recognized in equity depending on the treatment of its underlying transactionsand events, and b. deferred income tax arising from business combination, which is accounted for as anadjustment to the carrying amount of the respective goodwill.
（4）Offsetting of income tax
A current income tax liability and current income tax asset are presented on (consolidated) financialstatements after netting only if the Company is permitted by law to settle the asset and liability net in cash and isplanning to do so or to recover the asset and settle the liability simultaneously.A deferred tax asset and deferred tax liability are presented on (consolidated) financial statements afternetting only if all of the following conditions are satisfied: the Company is permitted by law to settle the currentasset and liability related to an income tax net in cash; and the deferred tax asset and deferred tax liability arisingfrom that income tax is levied by the same tax authority on the same entity or on different entities but the relevantentities are planning to settle the underlying income tax net in cash or simultaneously recover the relevant assetsand settle the relevant liabilities during each future period during which significant deferred tax assets anddeferred tax liabilities are reversed.
27.Change of main accounting policies and estimations
⑴Change of accounting policies
√ Applicable □Not applicable
①Changes in accounting policies resulting from the implementation of the new financial instrumentguidelines
The Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments(Revised in 2017), the Accounting Standards for Enterprises No. 23 - Transfer of Financial Assets (Revised in2017), and the Accounting Standards for Enterprises No. 24 - Hedge Accounting Standards for Enterprises(Revised in 2017) (Accounting [2017] No. 9) promulgated by the Ministry of Finance on March 31, 2017, as wellas the Accounting Standards for Enterprises No. 37 - Financial Instruments Presentation (Revised in 2017)(Accounting [2017] No. 14) (collectively referred to as "New Financial Instruments Standards") issued on May 2,2017 requires domestic listed enterprises to implement the new standards from January 1, 2019. Guidelines forfinancial instruments.
Through the resolution of the 25th (provisional) meeting of the eighth board of directors of the Company onApril 26, 2019, the Company began to implement the aforementioned new financial instrument guidelines onJanuary 1, 2019.
All recognized financial assets under the new financial instrument standards are subsequently measured atthe amortized cost or fair value. On the date of implementation of the new financial instrument standards, thebusiness model of managing financial assets is evaluated on the basis of the existing facts and circumstances ofthe Company on that day, and the characteristics of contractual cash flow on the financial assets are evaluated onthe basis of facts and circumstances at the time of initial recognition of financial assets. The financial assets aredivided into three categories: measured according to the amortized cost and measured according to the publicvalue. Value is measured and its changes are included in other comprehensive income and fair value, and its
changes are included in current profits and losses. Among them, when the financial asset terminates recognition,the accumulated gains or losses previously included in other comprehensive gains will be transferred from othercomprehensive gains to retained gains, not into current profits and losses.Under the new financial instrument standards, based on the expected credit loss, the Company makesprovision for impairment of financial assets measured by amortized cost, investment in debt instruments measuredby fair value and its changes included in other comprehensive gains, lease receivables, contractual assets andfinancial guarantee contracts, and confirms the loss of credit impairment.The Company retrospectively applies the new financial instrument standards, but for classification andmeasurement (including impairment) involving the inconsistency between the previous comparative financialstatement data and the new financial instrument standards, the Company chooses not to repeat. Therefore, for thecumulative impact of the first implementation of this standard, the Company adjusted the retained earnings orother comprehensive earnings at the beginning of 2019 and the amount of other related items in the financialstatements, which were not restated in the financial statements of 2018.
The main changes and impacts of the implementation of the new financial instrument guidelines on ourCompany are as follows:
- On January 1, 2019 and beyond, the Company designated some non-tradable equity investments held asfinancial assets measured at fair value and included their changes in other comprehensive income, and reportedthem as investments in other equity instruments.
- For the long-term equity investment of associates, the Company re-classified and measured the financialinstruments according to the new financial instrument standards, and the Company adjusted accordingly accordingto the equity method.
- The Company holds part of the debt instruments, whose cash flow generated on a specific date is only thepayment of principal and interest based on the amount of unpaid principal, and the business model of theCompany's management of the financial assets is to collect the cash flow of the contract. The Company will take itfrom other sources on January 1, 2019 and beyond. Non-current assets are reclassified to creditor's rightsinvestment.
A. Comparison of financial assets classification and measurement before and after the first implementationdate
a. Impact on the consolidated financial statements
| December 31, 2018 (before change) | January 1, 2019 (after the change) | ||||
| Items | Measurement category | Book value | Items | Measurement category | Book value |
| Available-for-sales financial assets | Measured at fair value and included in other comprehensive benefits (equity instruments) | 1,668,791,594.53 | Investment in other equity instruments | Measured at fair value and included in other comprehensive earnings | 1,668,791,594.53 |
| long-term equity investments | Cost method/equity method | 3,145,644,970.07 | long-term equity investments | Cost method/equity method | 3,145,355,906.88 |
b. Impact on the financial statement
| December 31, 2018 (before change) | January 1, 2019 (after the change) | ||||
| Items | Measurement category | Book value | Items | Measurement category | Book value |
| Available-for-sales financial assets | Measured at fair value and included in | 1,668,791,594.53 | Investment in other equity | Measured at fair value and included in other | 1,668,791,594.53 |
| other comprehensive benefits (equity instruments) | instruments | comprehensive earnings | |||
| long-term equity investments | Cost method/equity method | 4,679,309,978.88 | long-term equity investments | Cost method/equity method | 4,679,020,915.69 |
| Other non-current assets | amortized cost | 692,903,684.98 | Creditor's right investment | amortized cost | 692,903,684.98 |
B. On the first execution date, the book value of the original financial assets shall be adjusted to a newadjustment table for the book value of the financial assets classified and measured in accordance with theprovisions of the new financial instrument standards.a. Impact on consolidated statements
| Items | December 31, 2018 (before change) | Re-Class | Re-measurement | January 1,2019 (after change) |
| Measured at fair value and included in other comprehensive earnings: | ||||
| Available-for-sale financial assets (original guidelines) | 1,668,791,594.53 | |||
| Less transfer to other creditor's rights investment | ||||
| Less: transfer to other non-current financial assets |
| Less: transfer to other equity instruments | 1,668,791,594.53 | |||
| Balances shown in accordance with the new financial instrument guidelines | ||||
| Investment in other equity instruments | ||||
| Add: transfer from available-for-sale financial assets (original criteria) | 1,668,791,594.53 | |||
| Re-measurement: re-measurement at fair value | ||||
| Balances shown in accordance with the new financial instrument guidelines | 1,668,791,594.53 |
b. Impact on the Company's financial statements
| Items | December 31, 2018 (before change) | Re-Class | Re-measurement | January 1,2019 (after change) |
| Amortized cost | ||||
| Other non-current assets (original criteria) | 692,903,684.98 | |||
| Less: transfer to creditor's rights investment | 692,903,684.98 | |||
| Balances shown in accordance with the new financial instrument guidelines | ||||
| Creditor's rights investment | ||||
| Add: transfer from other non-current assets (original criteria) | 692,903,684.98 |
| Re-measurement: expected credit loss preparation | ||||
| Balances shown in accordance with the new financial instrument guidelines | 692,903,684.98 | |||
| Measured at fair value and included in other |
| comprehensive earnings: | ||||
| Available-for-sale financial assets (original guidelines) | 1,668,791,594.53 | |||
| Less: transfer to other creditor's rights investment | ||||
| Less: transfer to other non-current financial assets | ||||
| Less: transfer to other equity instruments | 1,668,791,594.53 | |||
| Balances shown in accordance with the new financial instrument guidelines | ||||
| Investment in other equity instruments | ||||
| Add：transfer from available-for-sale financial assets (original criteria) | 1,668,791,594.53 | |||
| Re-measurement: re-measurement at fair value | ||||
| Balances shown in accordance with the new financial instrument guidelines | 1,668,791,594.53 |
C. Financial assets impairment provision adjustment table on the first implementation datea. Impact on consolidated statements
| Measurement category | December 31, 2018 (before change) | Re-Class | Re-measurement | January 1, 2019 (after change) |
| Measured at fair value and included in other comprehensive benefits (debt instruments) | ||||
| Provision for impairment of available-for-sale financial assets | 37,020,000.00 | 37,020,000.00 | ||
| Investment in other equity instruments | 37,020,000.00 | 37,020,000.00 |
b. Impact on the Company's financial statements
| Measurement category | December 31, 2018 (before change) | Re-Class | Re-measurement | January 1, 2019 (after change) |
| Measured at fair value and included in other comprehensive benefits (debt instruments) | ||||
| Provision for impairment of available-for-sale financial assets | 7,020,000.00 | 7,020,000.00 | ||
| Investment in other equity instruments | 7,020,000.00 | 7,020,000.00 |
D. Impact on retained earnings and other comprehensive earnings as of January 1, 2019
| December 31, 2018 | Consolidated retained earnings | Consolidated surplus reserve | Consolidation of other comprehensive benefits |
| December 31,2018 | 3,938,609,136.59 | 245,109,114.81 | |
| 1. Re-measurement of long-term equity investment | -11,353,413.48 | 11,064,350.29 | |
| January 1, 2019 | 3,927,255,723.11 | 256,173,465.10 |
②Other accounting policy changes
E. On April 30, 2019, the Notice of the Ministry of Finance on Revising and Issuing the Format of Financial
Statements of General Enterprises (No. 6 Finance and Accounting [2019]) issued by the Ministry of Financeadjusts the format of financial statements of enterprises accordingly, and regulates that the detailed items of"management expenses" and "R&D expenses" should be separated from the items of "management expenses" inthe profit statement; it also indicates that the actual government subsidies received should be listed in the item"cash received from other business activities". In response to such change of accounting policy, the Companyadopts the retroactive adjustment method to retroactively adjust the items reported in the financial statements fromJanuary to June in 2018, as follows:
a. Impact on consolidated statements
| January - June 2018 | Before adjustment | After Adjustment | Change |
| Administrative Fees | 75,594,633.97 | 73,109,460.94 | -2,485,173.03 |
| R&D expense | 2,485,173.03 | 2,485,173.03 | |
| Other cash receipts relating to operating activities | 39,446,329.98 | 41,946,329.98 | 2,500,000.00 |
| Receipt of other cash related to fund-raising activities | 2,500,000.00 | -2,500,000.00 |
b. Impact on the Company's financial statements
| January - June 2018 | Before adjustment | After Adjustment | Change |
| Other cash receipts relating to operating activities | 46,329,459.08 | 48,829,459.08 | 2,500,000.00 |
| Receipt of other cash related to fund-raising activities | 293,500,000.00 | 291,000,000.00 | -2,500,000.00 |
⑵Change of accounting estimations
□ Applicable √ Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New StandardsGoverning Financial Instruments, Revenue or Leases
√Applicable □ Not applicable
| Items | December 31,2018 | Jan 1,2019 | Adjustment |
| Current asset： | |||
| Monetary fund | 2,124,524,996.32 | 2,124,524,996.32 | |
| Settlement provision | |||
| Outgoing call loan | |||
| Transactional financial assets | |||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Account receivable | 91,076,995.07 | 91,076,995.07 |
| Items | December 31,2018 | Jan 1,2019 | Adjustment |
| Financing of receivables | |||
| Prepayments | 1,912,943.40 | 1,912,943.40 | |
| Insurance receivable | |||
| Reinsurance receivable | |||
| Provisions of Reinsurance contracts receivable | |||
| Other account receivable | 16,487,256.02 | 16,487,256.02 | |
| Including：Interest receivable | |||
| Dividend receivable | 1,205,472.90 | 1,205,472.90 | |
| Repurchasing of financial assets | |||
| Inventories | 81,017.91 | 81,017.91 | |
| Contract assets | |||
| Assets held for sales | |||
| Non-current asset due within 1 year | 51,745.32 | 51,745.32 | |
| Other current asset | |||
| Total of current assets | 2,234,134,954.04 | 2,234,134,954.04 | |
| Non-current assets： | |||
| Loans and payment on other’s behalf disbursed | |||
| Debt investment | |||
| Available for sale of financial assets | 1,668,791,594.53 | -1,668,791,594.53 | |
| Other investment on bonds | |||
| Expired investment in possess | |||
| Long-term receivable | |||
| Long term share equity investment | 3,145,644,970.07 | 3,145,355,906.88 | -289,063.19 |
| Other equity instruments investment | 1,668,791,594.53 | 1,668,791,594.53 | |
| Other non-current financial assets | |||
| Property investment | 3,579,007.54 | 3,579,007.54 | |
| Fixed assets | 7,600,046,319.91 | 7,600,046,319.91 | |
| Construction in progress | 1,089,473,425.63 | 1,089,473,425.63 | |
| Production physical assets | |||
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 5,739,020.48 | 5,739,020.48 | |
| Development expenses |
| Items | December 31,2018 | Jan 1,2019 | Adjustment |
| Goodwill | |||
| Long-germ expenses to be amortized | 1,221,781.88 | 1,221,781.88 | |
| Deferred income tax asset | 447,485,034.79 | 447,485,034.79 | |
| Other non-current asset | 99,794,665.58 | 99,794,665.58 | |
| Total of non-current assets | 14,061,775,820.41 | 14,061,486,757.22 | -289,063.19 |
| Total of assets | 16,295,910,774.45 | 16,295,621,711.26 | -289,063.19 |
| Current liabilities | |||
| Short-term loans | |||
| Loan from Central Bank | |||
| Borrowing funds | |||
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Account payable | 203,779,190.74 | 203,779,190.74 | |
| Advance receipts | 12,039,708.01 | 12,039,708.01 | |
| Selling of repurchased financial assets | |||
| Deposit taking and interbank deposit | |||
| Entrusted trading of securities | |||
| Entrusted selling of securities | |||
| Employees’wage payable | 13,122,437.17 | 13,122,437.17 | |
| Tax payable | 104,198,746.06 | 104,198,746.06 | |
| Other account payable | 191,254,464.84 | 191,254,464.84 | |
| Including：Interest payable | 8,971,576.57 | 8,971,576.57 | |
| Dividend payable | 17,191,142.23 | 17,191,142.23 | |
| Fees and commissions payable | |||
| Reinsurance fee payable | |||
| Contract Liabilities | |||
| Liabilities held for sales | |||
| Non-current liability due within 1 year | 2,498,480,000.00 | 2,498,480,000.00 | |
| Other current liability | |||
| Total of current liability | 3,022,874,546.82 | 3,022,874,546.82 |
| Items | December 31,2018 | Jan 1,2019 | Adjustment |
| Non-current liabilities： | |||
| Reserve fund for insurance contracts | |||
| Long-term loan | 2,983,040,000.00 | 2,983,040,000.00 | |
| Bond payable | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Lease liability | |||
| Long-term payable | 38,022,210.11 | 38,022,210.11 | |
| Long-term remuneration payable to staff | |||
| Expected liabilities | |||
| Deferred income | |||
| Deferred income tax liability | 205,672,389.59 | 205,672,389.59 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 3,226,734,599.70 | 3,226,734,599.70 | |
| Total of liability | 6,249,609,146.52 | 6,249,609,146.52 | |
| Owners’ equity | |||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 | |
| Other equity instruments | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Capital reserves | 2,536,774,965.31 | 2,536,774,965.31 | |
| Less：Shares in stock | |||
| Other comprehensive income | 245,109,114.81 | 256,173,465.10 | 11,064,350.29 |
| Special reserve | |||
| Surplus reserves | 775,402,561.35 | 775,402,561.35 | |
| Common risk provision | |||
| Retained profit | 3,938,609,136.59 | 3,927,255,723.11 | -11,353,413.48 |
| Total of owner’s equity belong to the parent company | 9,586,701,904.06 | 9,586,412,840.87 | -289,063.19 |
| Minority shareholders’ equity | 459,599,723.87 | 459,599,723.87 | |
| Total of owners’equity | 10,046,301,627.93 | 10,046,012,564.74 | -289,063.19 |
| Total of liabilities and owners’equity | 16,295,910,774.45 | 16,295,621,711.26 | -289,063.19 |
Statement of adjustment
Balance sheet of parent company
In RMB
| Items | December 31,2018 | Jan 1,2019 | Adjustment |
| Current asset： | |||
| Monetary fund | 2,096,597,568.04 | 2,096,597,568.04 | |
| Transactional financial assets | |||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Account receivable | 18,405,847.15 | 18,405,847.15 | |
| Financing of receivables | |||
| Prepayments | 1,532,057.82 | 1,532,057.82 | |
| Other account receivable | 9,323,782.66 | 9,323,782.66 | |
| Including: Interest receivable | 1,880,148.12 | 1,880,148.12 | |
| Dividend receivable | 1,205,472.90 | 1,205,472.90 | |
| Inventories | |||
| Contract assets | |||
| Assets held for sales | |||
| Non-current asset due within 1 year | 100,000,000.00 | 100,000,000.00 | |
| Other current asset | |||
| Total of current assets | 2,225,859,255.67 | 2,225,859,255.67 | |
| Non-current assets： | |||
| Debt investment | 692,903,684.98 | 692,903,684.98 | |
| Available for sale of financial assets | 1,668,791,594.53 | -1,668,791,594.53 | |
| Other investment on bonds | |||
| Expired investment in possess | |||
| Long-term receivable | |||
| Long term share equity investment | 4,679,309,978.88 | 4,679,020,915.69 | -289,063.19 |
| Other equity instruments investment | 1,668,791,594.53 | 1,668,791,594.53 | |
| Other non-current financial assets | |||
| Property investment | 3,326,869.29 | 3,326,869.29 | |
| Fixed assets | 5,292,898,635.00 | 5,292,898,635.00 | |
| Construction in progress | 1,060,230,773.10 | 1,060,230,773.10 | |
| Production physical assets |
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 1,741,277.53 | 1,741,277.53 | |
| Development expenses | |||
| Goodwill | |||
| Long-germ expenses to be amortized | |||
| Deferred income tax asset | 447,328,530.77 | 447,328,530.77 | |
| Other non-current asset | 790,720,727.48 | 97,817,042.50 | -692,903,684.98 |
| Total of non-current assets | 13,944,348,386.58 | 13,944,059,323.39 | -289,063.19 |
| Total of assets | 16,170,207,642.25 | 16,169,918,579.06 | -289,063.19 |
| Current liabilities | |||
| Short-term loans | |||
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Account payable | 124,833,335.72 | 124,833,335.72 | |
| Advance receipts | |||
| Contract Liabilities | |||
| Employees’wage payable | 5,669,203.37 | 5,669,203.37 | |
| Tax payable | 10,297,144.52 | 10,297,144.52 | |
| Other account payable | 142,457,135.79 | 142,457,135.79 | |
| Including:Interest payable | 8,373,096.36 | 8,373,096.36 | |
| Dividend payable | 17,191,142.23 | 17,191,142.23 | |
| Liabilities held for sales | |||
| Non-current liability due within 1 year | 2,327,180,000.00 | 2,327,180,000.00 | |
| Other current liability | 977,236,252.44 | 977,236,252.44 | |
| Total of current liability | 3,587,673,071.84 | 3,587,673,071.84 | |
| Non-current liabilities： | |||
| Long-term loan | 2,731,990,000.00 | 2,731,990,000.00 | |
| Bond payable | |||
| Including：preferred stock | |||
| Sustainable debt |
| Lease liability | |||
| Long-term payable | 38,022,210.11 | 38,022,210.11 | |
| Long-term remuneration payable to staff | |||
| Expected liabilities | |||
| Deferred income | |||
| Deferred income tax liability | 88,220,604.00 | 88,220,604.00 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 2,858,232,814.11 | 2,858,232,814.11 | |
| Total of liability | 6,445,905,885.95 | 6,445,905,885.95 | |
| Owners’ equity | |||
| Share capital | 2,090,806,126.00 | 2,090,806,126.00 | |
| Other equity instruments | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Capital reserves | 2,948,663,196.93 | 2,948,663,196.93 | |
| Less：Shares in stock | |||
| Other comprehensive income | 245,109,114.81 | 256,173,465.10 | 11,064,350.29 |
| Special reserve | |||
| Surplus reserves | 759,558,277.70 | 759,558,277.70 | |
| Retained profit | 3,680,165,040.86 | 3,668,811,627.38 | -11,353,413.48 |
| Total of owners’ equity | 9,724,301,756.30 | 9,724,012,693.11 | -289,063.19 |
| Total of liabilities and owners’ equity | 16,170,207,642.25 | 16,169,918,579.06 | -289,063.19 |
Statement of adjustment
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New StandardsGoverning Financial Instruments or Leases
□ Applicable √ Not applicable
28. Significant account judgment and estimates
During the application of accounting policies, judgements, estimates, and presumption need to be made forelements of financial statements, which cannot be precisely measured due to inherent uncertainty existing inoperating activities. The judgments, estimates, and presumption are made on the basis of the Company's pastexperience and other relevant factors. The exercise of judgements, estimates, and presumption has an impact onthe measurement of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities on thebalance sheet date. However, the inherent uncertainty of the judgments, estimates, and presumption may result infuture significant adjustments to be made to the measurement of the affected assets and liabilities.
The judgments, estimates, and presumption are regularly reviewed on the basis of going concern. Where achange in accounting estimates is applicable, its impact on financial statements is recognized in the period duringwhich the change occurs if the change has an impact on the financial statements for that period only; and insubsequent periods if the change also has an impact on the financial statements for subsequent periods.Significant elements of financial statements and areas that are subject to judgements, estimates andpresumption on the balance-sheet date include the following.
（1）Impairment of financial assets
The Company adopts the anticipated credit loss model to evaluate the impairment of financial instruments,which requires that significant judgments and estimates should be made and all reasonable and reliableinformation, including forward-looking information should be taken into account. In making such judgment andestimate, the Company deduces the expected change of debtor's credit risk based on historical data andmacroeconomic indicators of economic policies, industrial risks, external market environment, technicalenvironment, changes of customer conditions and other factors.
（2）Provision for impairment of long-term assets.
Non-current assets are assessed for indicators of impairment on each balance sheet date. In addition,intangible assets with infinite useful life are subject to impairment testing on each balance-sheet date andwhenever there is evidence indicating impairment; other non-financial non-current assets are subject toimpairment testing only if their evidence indicating that the carrying amount becomes non-collectible.
Impairment exists when the carrying amount of an asset or cash-generating unit exceeds its recoverableamount, which is higher of the residual amount after deducting necessary expenses for disposal from its fair valueand the present value of its future cash flows. An asset's residual amount after deducting necessary expenses fordisposal is determined by reference to the residual amount after deducting the incremental costs to dispose theasset from the selling price provided by contracts for sales of similar assets or the observable market price ofsimilar assets.
When estimating the present value of future cash flows of an asset or cash-generating unit, significantjudgments must be made regarding the production capacity, selling price, relevant operating costs of the asset orcash-generating unit and relevant discount rates for discounting the cash flows. The Company considers allavailable relevant information when determining the recoverable amount, including estimates regarding futureproduction capacity, selling price and relevant operating costs made on the basis of reasonable and supportivepresumption.
Goodwill is assessed for impairment at least annually. The assessment involves an estimate of the presentvalue of the future cash flows associated with the assets or groups of assets to which goodwill has been allocated.The estimate considers the future cash flows associated with the assets or groups of assets to which goodwill hasbeen allocated and the applicable discount rates for cash flow discounting.
（3）Depreciation and amortization
Investment property, fixed assets, and intangible assets are depreciated (amortized) over their useful livesusing the straight-line method after considering of their residual value. Useful lives of these assets are regularlyreviewed for the purpose of determining the depreciation and amortization recognized for each period. Usefullives are determined on the basis of the Company's past experience on similar assets and expected new technologydevelopment. If existing estimates change significantly, the adjustment is made to the depreciation andamortization for future periods.
（4）Deferred tax assets
All unutilized tax loss is recognized as deferred tax assets to the extent it is probable that taxable profit willbe available against which the deductible tax loss can be utilized. Significant judgments are required to estimate
the timing and amount of future taxable profit and to consider tax planning strategy so as to determine the numberof deferred tax assets to be recognized.VI. Taxation
1. Major category of taxes and tax rates
| Tax category | Tax basis | Tax rate |
| VAT | Sales by Sales of Goods or Tax Services | 3%、5%、6%、9%、10%、11%、13% |
| City maintenance and construction tax | The actual payment of turnover tax | 5%、7% |
| Enterprise income tax | Taxable income | 25% |
The applicable tax rates for VAT sales or imported goods in our company during the period from January toMarch 2019 are 16% and 10%. According to the Announcement of the Ministry of Finance, the StateAdministration of Taxation and the General Administration of Customs on the Policies for Deepening the Reformof VAT (Announcement [2019] No. 39 of the Ministry of Finance, the State Administration of Taxation and theGeneral Administration of Customs), the applicable tax rate has been adjusted to 13% and 9% since April 1, 1919.
Where there are tax payers of different enterprise income tax rates, the disclosure information indicates that thereis no tax payer.
2.Preferential tax
Nil
3.Other
NilVII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
| Items | Amount in year-end | Balance Year-beginning |
| Cash | 91,690.76 | 53,211.49 |
| Bank deposit | 2,037,418,254.12 | 2,123,807,010.07 |
| Other | 515,006.17 | 664,774.76 |
| Total | 2,038,024,951.05 | 2,124,524,996.32 |
Other noteOn June 30,2019,The balance of restricted bank deposits at the end of the period was 1,221,200.00 yuan, which wasthe land reclamation fund deposited into the fund custody account for the reconstruction and expansion project ofSanbao to Shuikou section of Fokai Expressway.
2. Account receivable
1.Classification account receivables.
In RMB
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrual of bad debt provision by single item | ||||||||||
| Of which： | ||||||||||
| Accrual of bad debt provision by portfolio | 104,294,640.84 | 100.00% | 1,176,879.99 | 1.13% | 103,117,760.85 | 92,253,875.06 | 100.00% | 1,176,879.99 | 1.28% | 91,076,995.07 |
| Of which： | ||||||||||
| Portfolio | 104,294,640.84 | 100.00% | 1,176,879.99 | 1.13% | 103,117,760.85 | 92,253,875.06 | 100.00% | 1,176,879.99 | 1.28% | 91,076,995.07 |
| Total | 104,294,640.84 | 100.00% | 1,176,879.99 | 103,117,760.85 | 92,253,875.06 | 100.00% | 1,176,879.99 | 91,076,995.07 | ||
Accrual of bad debt provision by single item: NilAccrual of bad debt provision by single item: NilAccrual of bad debt provision by portfolio:
In RMB
| Name | Balance in year-end | ||
| Receivable accounts | Bad debt provision | Withdrawal proportion | |
| Within 1 year | 101,225,645.16 | ||
| 1-2 years | 752,716.49 | 75,087.85 | 9.98% |
| 2-3 years | 849,193.27 | 254,757.98 | 30.00% |
| 3-4 years | 1,128,781.92 | 564,390.96 | 50.00% |
| 4-5 years | 278,304.00 | 222,643.20 | 80.00% |
| Over 5 years | 60,000.00 | 60,000.00 | 100.00% |
| Total | 104,294,640.84 | 1,176,879.99 | -- |
Notes of the basis of recognizing the portfolio:
Provision for bad debts according to the age portfolioNotes of the basis of recognizing the group:
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 101,225,645.16 |
| Within 1 year | 101,225,645.16 |
| 1-2 years | 752,716.49 |
| 2-3 years | 849,193.27 |
| Over 3 years | 1,467,085.92 |
| 3-4 years | 1,128,781.92 |
| 4-5 years | 278,304.00 |
| Over 5 years | 60,000.00 |
| Total | 104,294,640.84 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | ||
| Accrual | Reversed or collected amount | Write-off | |||
| Portfolio 1 | 1,176,879.99 | 1,176,879.99 | |||
| Total | 1,176,879.99 | 1,176,879.99 | |||
Of which the significant amount of the reversed or collected part during the reporting period :Nil
（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 | Proportion(%) | Bad debt provision |
| Guangdong Union Electronic Services Co., Ltd. | 47,675,526.05 | 45.71 |
| Guangdong Humen Bridge Co., Ltd. | 23,560,330.99 | 22.59 | |
| Shandong Boan Intelligent Technology Co., Ltd | 7,409,966.25 | 7.10 | |
| Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 4,819,475.01 | 4.62 | |
| Zhongyuan Shipping Technology Co., Ltd. | 3,932,168.05 | 3.77 |
| Total | 87,397,466.35 | 83.79 |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNil
(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 Year-beginning | ||
| Amount | Proportion（%） | Amount | Proportion（%） | |
| Within 1 year | 2,658,527.25 | 92.85% | 1,708,205.40 | 89.30% |
| Over 3 years | 204,738.00 | 7.15% | 204,738.00 | 10.70% |
| Total | 2,863,265.25 | -- | 1,912,943.40 | -- |
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 collected according to the prepayment target
| Name | Amount | Aging | Proportion(%) |
| Guangdong Litong Real estate Investment Co., Ltd. | 735,092.38 | Within 1 year | 25.67 |
| Guangdong power transmission & transformation engineering company | 235,695.00 | Within 1 year | 8.23 |
| Guangdong south educational science and technology research institute | 152,800.00 | Within 1 year | 5.34 |
| Tianjing Kechang Huitong Information Technology Co., Ltd. | 134,339.62 | Within 1 year | 4.69 |
| Foshan Yingya Advertising Co., Ltd. | 35,000.00 | Over 3 years | 1.22 |
| Total | 1,292,927.00 | 45.15 |
Other notes: Nil
4.Other accounts receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Dividend receivable | 34,145,770.80 | 1,205,472.90 |
| Other receivable | 18,630,191.48 | 15,281,783.12 |
| Total | 52,775,962.28 | 16,487,256.02 |
（1）Interest receivable
Nil
（2）Dividend receivable
1)Dividend receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Guangdong Radio and Television Networks investment No.1 Limited partnership enterprise | 1,205,472.90 | 1,205,472.90 |
| Ganzhou Kangda Expressway Co., Ltd. | 21,000,000.00 |
| Gluoyuan Securities Co., Ltd. | 11,940,297.90 | |
| Total | 34,145,770.80 | 1,205,472.90 |
（2）Significant dividend receivable aged over 1 year
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
Other notes：Nil
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Balance of settlement funds for securities transactions | 47,528,056.18 | 47,528,056.18 |
| Cash deposit | 8,230,858.96 | 7,813,222.94 |
| Gelin Enze Account | 4,007,679.91 | 4,007,679.91 |
| Petty cash | 4,554,632.19 | 3,800,100.00 |
| Advertising and labor costs | 1,023,421.29 | 924,266.65 |
| Other | 4,837,508.03 | 2,760,422.52 |
| Total | 70,182,156.56 | 66,833,748.20 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2019 | 16,228.99 | 51,535,736.09 | 51,551,965.08 | |
| Balance as at January 1, 2019 in current | —— | —— | —— | —— |
| Balance as at June 30,2019 | 16,228.99 | 51,535,736.09 | 51,551,965.08 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 10,683,833.96 |
| Within 1 year | 10,683,833.96 |
| 1-2 years | 3,143,087.25 |
| 2-3 years | 1,534,307.90 |
| Over 3 years | 54,820,927.45 |
| 3-4 years | 579,262.98 |
| 4-5 years | 772,029.18 |
| Over 5 years | 53,469,635.29 |
| Total | 70,182,156.56 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |
| Accrual | Reversed or collected amount | |||
| Financial assets with significantly different credit risks | 51,535,736.09 | 51,535,736.09 | ||
| Portfolio 3 | 16,228.99 | 16,228.99 | ||
| Total | 51,551,965.08 | 51,551,965.08 | ||
Notes 1：The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd, GuangdongExpressway technology investment Co., Ltd once paid 18,000,000.00 yuan into Kunlun Securities Co., Ltd.Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that KunlunSecurities Co., Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007, The Company andGuangdong Expressway Technology Investment Co., Ltd had switched the money that paid into Kunlun SecuritiesCo., Ltd to other account receivable, and follow the careful principle to doubtful debts provision. The 710,349.92yuan Credit was Recovered in 2008, The 977,527.77 yuan credit was recovered in 2011, The 652,012.00 yuanCredit was recovered in 2014, The 1,815,828.92 yuan Credit was recovered in 2018, and the provision for had debNotes2：Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze OrganicFertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it was entrust loan, three million was temporaryborrowing 12,400.00 yuan is the commission loan interest, the rest of it was advance money for another, BeijingGelin Enze Organic Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly,the controlling subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full provisionfor Bad debt 12,220,079.91yuan provision. The company in 2014 recovered arrears of 8,000,000.00yuan, rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tTh
e settlement agreement of 212,400.00 yuan.Where the current bad debts back or recover significant amounts:Nil
4)The actual write-off other accounts receivable: Nil
5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
| Name | Nature | Closing balance | Aging | Proportion of the total year end balance of the accounts receivable(%) | Closing balance of bad debt provision |
| Kunlun Securities Co.,Ltd | Securities trading settlement funds | 47,528,056.18 | Over 5 years | 67.72% | 47,528,056.18 |
| Beijing Gelin Enze | Current account | 4,007,679.91 | Over 5 years | 5.71% | 4,007,679.91 |
| Shandong Boan Intelligent Technology Co., Ltd. | Deposit | 1,725,155.40 | Within 1 year | 2.46% | |
| Guangdong Litong Real Estates Investment Co., Ltd. | Deposit | 1,515,077.22 | 2-3 years | 2.16% | |
| Guangdong Guanghui Expressway Co., Ltd. | Deposit | 1,462,587.90 | Over 4 years | 2.08% | |
| Total | -- | 56,238,556.61 | -- | 80.13% | 51,535,736.09 |
(6) Accounts receivable involved with government subsidies
Nil
(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 accountsreceivableNil
9. Inventories
Whether implemented new revenue guidelines?
□ Yes √No
（1）Category of Inventory
In RMB
| Items | Closing book balance | Opening book balance |
| Book balance | Provision for inventory impairment | Book value | Book balance | Provision for inventory impairment | Book value | |
| Raw materials | 110,142.49 | 110,142.49 | 81,017.91 | 81,017.91 | ||
| Total | 110,142.49 | 110,142.49 | 81,017.91 | 81,017.91 |
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information DisclosureGuidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirementsNo
(2) Inventory depreciation reserve
Nil
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalizedNil
6.Non-current asset due within 1 year
In RMB
| Items | Year-end balance | Year-beginning balance |
| Advance business tax | 51,745.32 | 51,745.32 |
| Total | 51,745.32 | 51,745.32 |
Other note：
Debt investments and other debt investments due within one important year of the end of the period：Nil
7. Available-for-sale financial assets
| Items | Amount in year-end | ||
| Book balance | Bad debt provision | Book value | |
| Available-for-sale debt Instruments | |||
| Available-for-sale equity Instruments | 1,705,811,594.53 | 37,020,000.00 | 1,668,791,594.53 |
| Measured by fair value | 870,443,292.80 | 870,443,292.80 | |
| Measured by cost | 835,368,301.73 | 37,020,000.00 | 798,348,301.73 |
| Other | |||
| Total | 1,705,811,594.53 | 37,020,000.00 | 1,668,791,594.53 |
8. 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. | 992,521,223.58 | 143,481,952.02 | 25,795,500.00 | 84,638,655.14 | 1,077,160,020.46 | ||||||
| Zhaoqing Yuezhao Highway Co., Ltd. | 307,172,338.10 | 27,819,228.16 | 53,207,865.41 | 281,783,700.85 | |||||||
| Subtotal | 1,299,693,561.68 | 171,301,180.18 | 25,795,500.00 | 137,846,520.55 | 1,358,943,721.31 | ||||||
| 2. Affiliated Company | |||||||||||
| Shenzhen Huiyan Expressway | 230,553,756.87 | 16,104,358.08 | 246,658,114.95 | ||||||||
| Guangdong Jiangzhong Expressway Co.,. Ltd. | 175,324,643.76 | 10,932,203.70 | 186,256,847.46 | ||||||||
| Ganzhou Kangda Expressway | 219,985,018.52 | 17,339,428.35 | 21,000,000.00 | 216,324,446.87 | |||||||
| Gan Ganzhou Gankang Expressway | 209,995,910.71 | 4,937,249.59 | 214,933,160.30 | ||||||||
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 219,693,558.27 | 7,188,376.76 | 226,881,935.03 | ||||||||
| Guoyuan Securities Co., Ltd. | 790,109,457.07 | 9,910,201.43 | -470,449.14 | 11,940,297.90 | 787,608,911.46 | ||||||
| Subtotal | 1,845,662,345.20 | 66,411,817.91 | -470,449.14 | 32,940,297.90 | 1,878,663,416.07 | ||||||
| Total | 3,145,355,906.88 | 237,712,998.09 | -470,449.14 | 25,795,500.00 | 170,786,818.45 | 3,237,607,137.38 |
9.Other Equity instrument investment
In RMB
| Items | Closing balance | Opening balance |
| Guangle Expressway Co., Ltd. | 748,348,301.73 | 748,348,301.73 |
| Guangdong Radio and Television Networks investment No.1 Limited partnership enterprise | 50,000,000.00 | 50,000,000.00 |
| China Everbright Bank Co., Ltd. | 896,321,336.64 | 870,443,292.80 |
| Huaxia Securities Co., Ltd.（Notes1） | 0.00 | 0.00 |
| Huazheng Asset Management Co., Ltd.（Notes2） | 0.00 | 0.00 |
| Kunlun Securities Co., Ltd.（Notes3） | 0.00 | 0.00 |
| Total | 1,694,669,638.37 | 1,668,791,594.53 |
Note 1: 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.Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co.,Ltd. As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was
279.132 million yuan and the appraised value was - 2299.5486 million yuan ,On October 14, 2005, Jianyin CITICAsset Management Co., Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company.Jianyin CITIC Asset Management Co., Ltd. was willing to pay the price of not more than 42 million yuantoacquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions. TheCompany 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 investment of
1.62 million yuan.
Note 3.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.Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
| Items | Dividend income recognized | Cumulative gain | Cumulative loss | Amount of other consolidated income transferred to retained earnings | Reasons for designation as measured at fair value and changes included in other comprehensive income | Reasons for other consolidated income transferred to retained earnings |
| Guangle Expressway Co., Ltd. | Non-transactional purpose for |
| shareholding | ||||||
| Guangdong Radio and Television Networks investment No.1 Limited partnership enterprise | 652,822.25 | Non-transactional purpose for shareholding | ||||
| China Everbright Bank Co., Ltd. | 37,876,045.98 | 378,760,459.84 | Non-transactional purpose for shareholding | |||
| Huaxia Securities Co., Ltd. | Non-transactional purpose for shareholding | |||||
| Huazheng Asset Management Co., Ltd. | Non-transactional purpose for shareholding | |||||
| Kunlun Securities Co., Ltd. | Non-transactional purpose for shareholding |
Other notes：Nil
10. 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 | 2,971,831.10 | 15,636,529.35 | |
| 2.Increased amount of the period | ||||
| （1）Outsourcing | ||||
| (2)Inventory, Fixed assets and Construction project into | ||||
| (3)Enterprise consolidation |
| 3.Decreased amount of the period | ||||
| （1）Disposal | ||||
| （2）Other Out | ||||
| 4.Closing balance | 12,664,698.25 | 2,971,831.10 | 15,636,529.35 | |
| II.Accumulated depreciation accumulated amortization | ||||
| 1.Opening balance | 10,373,153.97 | 1,684,367.84 | 12,057,521.81 | |
| 2.Increased amount of the period | 100,163.25 | 36,784.68 | 136,947.93 | |
| (1)Withdrawal or amortization | 100,163.25 | 36,784.68 | 136,947.93 | |
| 3.Decreased amount of the period | ||||
| （1）Disposal | ||||
| （2）Other Out | ||||
| 4.Closing balance | 10,473,317.22 | 1,721,152.52 | 12,194,469.74 | |
| III. Impairment provision | ||||
| 1.Opening balance | ||||
| 2.Increased amount of the period | ||||
| （1）Withdrawal | ||||
| 3.Decreased amount of the period |
| （1）Disposal | ||||
| （2）Other Out | ||||
| 4.Closing balance | ||||
| IV. Book value | ||||
| 1.Closing book value | 2,191,381.03 | 1,250,678.58 | 3,442,059.61 | |
| 2.Opening book | 2,291,544.28 | 1,287,463.26 | 3,579,007.54 |
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
| Items | Book balance | Reason |
| Transportation and other ancillary facilities | 1,514,070.42 | Transportation and other ancillary facilities, Not accreditation |
(4) Real estate conversion:
Nil.
11. Fixed assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Fixed assets | 7,911,422,302.11 | 7,600,046,319.91 |
| liquidation of fixed assets | 11,338.86 | |
| Total | 7,911,433,640.97 | 7,600,046,319.91 |
(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 | 8,988,726,518.80 | 4,798,270,209.11 | 342,597,957.59 | 122,698,641.11 | 48,745,472.07 | 659,423,683.35 | 16,420,732,672.69 |
| 2.Increased amount of the period | 677,371,219.45 | 453,016.00 | 24,456,055.29 | 606,062.20 | 13,570,262.33 | 716,456,615.27 | ||
| （1）Purchase | 606,062.20 | 472,154.38 | 1,078,216.58 | |||||
| （2）Transfer of project under construction | 677,371,219.45 | 453,016.00 | 24,456,055.29 | 13,098,107.95 | 715,378,398.69 | |||
| (3)Increased of Enterprise consolidation | ||||||||
| 3.Decreased amount of the period | 1,241,560.00 | 558,232.00 | 25,704,639.81 | 27,504,431.81 |
| Items | Guangfo Expressway | Fokai Expressway | Jingzhu Expressway Guangzhu section | House and buildings | Machinery equipment | Transportation equipment | Electricity equipment and other | Total |
| （1）Disposal or scrap | 1,241,560.00 | 558,232.00 | 25,704,639.81 | 27,504,431.81 | ||||
| 4.Closing balance | 1,460,270,190.66 | 9,666,097,738.25 | 4,798,270,209.11 | 343,050,973.59 | 145,913,136.40 | 48,793,302.27 | 647,289,305.87 | 17,109,684,856.15 |
| II. Accumulated depreciation | ||||||||
| 1.Opening balance | 1,460,270,190.66 | 3,940,158,837.04 | 2,625,645,410.16 | 232,333,164.38 | 71,147,743.72 | 38,419,504.01 | 452,711,502.81 | 8,820,686,352.78 |
| 2.Increased amount of the period | 258,648,669.85 | 110,175,156.27 | 6,740,911.11 | 6,561,004.35 | 1,343,196.17 | 18,970,099.01 | 402,439,036.76 | |
| （1）Withdrawal | 258,648,669.85 | 110,175,156.27 | 6,740,911.11 | 6,561,004.35 | 1,343,196.17 | 18,970,099.01 | 402,439,036.76 | |
| 3.Decreased amount of the period | 1,179,482.00 | 502,408.80 | 23,180,944.70 | 24,862,835.50 | ||||
| （1）Disposal or scrap | 1,179,482.00 | 502,408.80 | 23,180,944.70 | 24,862,835.50 | ||||
| 4.Closing balance | 1,460,270,190.66 | 4,198,807,506.89 | 2,735,820,566.43 | 239,074,075.49 | 76,529,266.07 | 39,260,291.38 | 448,500,657.12 | 9,198,262,554.04 |
| II. Accumulated depreciation | ||||||||
| 1.Opening balance | ||||||||
| 2.Increased amount of the period |
| Items | Guangfo Expressway | Fokai Expressway | Jingzhu Expressway Guangzhu section | House and buildings | Machinery equipment | Transportation equipment | Electricity equipment and other | Total |
| （1）Withdrawal | ||||||||
| 3.Decreased amount of the period | ||||||||
| （1）Disposal or scrap | ||||||||
| 4.Closing balance | ||||||||
| IV. Book value | ||||||||
| 1.Closing book value | 5,467,290,231.36 | 2,062,449,642.68 | 103,976,898.10 | 69,383,870.33 | 9,533,010.89 | 198,788,648.75 | 7,911,422,302.11 | |
| 2.Opening book | 5,048,567,681.76 | 2,172,624,798.95 | 110,264,793.21 | 51,550,897.39 | 10,325,968.06 | 206,712,180.54 | 7,600,046,319.91 |
⑵Temporarily idle fixed assetsNil
⑶Fixed assets through financial leasingNil
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 | 78,592,579.67 | Transportation and other ancillary facilities, Not accreditation |
（6）Liquidation of fixed assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Other equipment scrap cleaning | 11,338.86 | |
| Total | 11,338.86 |
Other notes
12. Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance |
| Project under construction | 834,325,807.36 | 1,087,923,869.63 |
| Engineering material | 1,549,556.00 | 1,549,556.00 |
| Total | 835,875,363.36 | 1,089,473,425.63 |
（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 - Shuikou Expansion project | 788,231,558.91 | 788,231,558.91 | 1,052,834,193.16 | 1,052,834,193.16 | ||
| Bridge deck pavement project of hailong Bridge | 1,382,928.49 | 1,382,928.49 | 1,382,928.49 | 1,382,928.49 | ||
| Minzhong Service area reconstruction project | 29,178,686.23 | 29,178,686.23 | 18,210,698.73 | 18,210,698.73 | ||
| Urban toll station project | 5,053,672.53 | 5,053,672.53 | 5,008,642.53 | 5,008,642.53 | ||
| Odd project | 10,478,961.20 | 10,478,961.20 | 10,487,406.72 | 10,487,406.72 | ||
| Total | 834,325,807.36 | 834,325,807.36 | 1,087,923,869.63 | 1,087,923,869.63 | ||
(2) Changes of significant construction in progress
In RMB
| Name of project | Budget | Opening balance | Increase | Transferred to fixed assets | Other decrease | End balance | Proportion % | Project process | Capitalization of interest | Including: capitalization of Interest this period | Capitalization of interest rate (%) | Source of funding |
| Sanbao - Shuikou Expansion project | 3,426,206,700.00 | 1,052,834,193.16 | 450,266,164.45 | 714,868,798.70 | 788,231,558.91 | 58.87% | 58.87 | 56,941,383.47 | 12,717,031.46 | 2.75% | Self-financing and Loans from financial institutions | |
| Total | 3,426,206,700.00 | 1,052,834,193.16 | 450,266,164.45 | 714,868,798.70 | 788,231,558.91 | -- | -- | 56,941,383.47 | 12,717,031.46 | 2.75% | -- |
(3)Provision for impairment of construction projects in the current period
Nil
（4）Engineering material
In RMB
| Items | Balance in year-end | Balance Year-beginning | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Signpost | 1,549,556.00 | 1,549,556.00 | 1,549,556.00 | 1,549,556.00 | ||
| Total | 1,549,556.00 | 1,549,556.00 | 1,549,556.00 | 1,549,556.00 | ||
13. Intangible assets
(1) List of intangible assets
In RMB
| Items | Land use right | Patent right | Non-patent right | Software | Total |
| I. Original price | |||||
| 1.Opening balance | 1,311,658.00 | 28,619,133.57 | 29,930,791.57 | ||
| 2.Increased amount of the period | |||||
| (1) Purchase | |||||
| (2)Internal Development | |||||
| (3)Increased of Enterprise Combination | |||||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4.Closing balance | 1,311,658.00 | 28,619,133.57 | 29,930,791.57 | ||
| II. Accumulated amortization | |||||
| 1.Opening balance | 1,311,658.00 | 22,880,113.09 | 24,191,771.09 | ||
| 2.Increased amount of the period | 1,184,929.43 | 1,184,929.43 | |||
| (1) Withdrawal | 1,184,929.43 | 1,184,929.43 | |||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4.Closing balance | 1,311,658.00 | 24,065,042.52 | 25,376,700.52 |
| Items | Land use right | Patent right | Non-patent right | Software | Total |
| 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 | 4,554,091.05 | 4,554,091.05 | |||
| 2.Opening book value | 5,739,020.48 | 5,739,020.48 |
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion ofthe balance of intangible assets⑵Details of Land use right failed to accomplish certification of propertyNil
(3) intangible assets with uncertain service life
Nil
(4) Important individual intangible assets
Nil
(5) Conditions of intangible assets subject to restrictions on ownership or right of useNil
14. Long-term amortize expenses
In RMB
| Items | Balance in year-begin | Increase in this period | Amortized expenses | Other loss | Balance in year-end |
| Rental fee for Guangzhu North Section sport ground | 1,221,781.88 | 53,508.72 | 1,168,273.16 | ||
| Total | 1,221,781.88 | 53,508.72 | 1,168,273.16 |
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
| Items | Balance in year-end | Balance Year-beginning | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Deductible loss | 1,126,696,090.04 | 281,674,022.51 | 1,281,389,685.73 | 320,347,421.43 |
| Fixed assets | 486,210,744.68 | 121,552,686.17 | 506,674,347.73 | 126,668,586.93 |
| Intangible assets | 561,287.20 | 140,321.80 | 1,876,105.71 | 469,026.43 |
| Total | 1,613,468,121.92 | 403,367,030.48 | 1,789,940,139.17 | 447,485,034.79 |
(2) Deferred income tax liabilities had not been off-set
In RMB
| Items | Balance in year-end | Balance Year-beginning | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Changes in the fair value of other equity instruments | 378,760,459.84 | 94,690,114.96 | 352,882,416.00 | 88,220,604.00 |
| Fixed assets | 433,956,737.96 | 108,489,184.49 | 469,807,142.34 | 117,451,785.59 |
| Total | 812,717,197.80 | 203,179,299.45 | 822,689,558.34 | 205,672,389.59 |
（3）Deferred tax assets of Liabilities that are presented at the net amount after offsetting
Nil
（4）Details of unrecognized deferred tax assets
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Deductible temporary differences | 89,748,845.07 | 89,748,845.07 |
| Deductible losses | 5,781,345.15 | 8,796,952.44 |
| Total | 95,530,190.22 | 98,545,797.51 |
（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
| Year | Balance in year-end | Balance Year-beginning | Remark |
| 2019 | 3,456,570.30 | ||
| 2020 | |||
| 2021 | |||
| 2022 | 1,133,109.04 | 2,121,083.91 | |
| 2023 | 3,137,842.72 | 3,219,298.23 | |
| 2024 | 1,510,393.39 | ||
| Total | 5,781,345.15 | 8,796,952.44 | -- |
Other notes：
16. Other Non-current assets
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Prepaid Project fee | 29,790,591.16 | 49,890,408.41 |
| Prepaid business tax | 492,900.42 | 518,773.08 |
| Deductible import tax | 85,425,596.24 | 49,385,484.09 |
| Less：Part due within 1 year | ||
| Total | 115,709,087.82 | 99,794,665.58 |
Other notes：
17.Account payable
（1） List of account payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Within 1 year（Including 1 year） | 79,648,896.66 | 84,200,629.90 |
| 1-2 years（including2 years） | 18,724,164.80 | 8,911,247.40 |
| 2-3 years（including 3 years） | 7,471,269.20 | 84,119,053.06 |
| Over 3 years | 109,595,484.17 | 26,548,260.38 |
| Total | 215,439,814.83 | 203,779,190.74 |
（2）Significant payable aging more than 1 year
In RMB
| Items | Balance in year-end | Reason |
| Heshan Land and resources Bureau | 38,186,893.60 | Unsettled |
| Foshan Land and resources Bureau.Chancheng Branch | 13,700,178.00 | Unsettled |
| Foshan Land and resources Bureau. | 11,335,478.40 | Unsettled |
| Guangdong Highway Construction Co., Ltd. | 25,630,651.00 | Unsettled |
| Guangdong Expressway Co., Ltd. | 8,746,491.18 | Unsettled |
| Guangdong Xinyue Traffic Investment Co., Ltd. | 1,829,141.32 | Unsettled |
| The third Research Institute of the Ministryof Public Security | 6,424,475.20 | Unsettled |
| Dongguan Yongyao Photoelectricity Technology Co., Ltd. | 2,388,817.70 | Unsettled |
| Total | 108,242,126.40 | -- |
Other notes：
18. Prepayment received
Whether implemented new revenue guidelines?
□ Yes √No
(1) List of Prepayment received
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Within 1 year（Including 1 year） | 215,840.47 | 516,610.46 |
| 1-2 years（Including 2 years） | ||
| 2-3 years（Including 3 years） | 419,601.44 | |
| Over 3 years | 11,509,298.49 | 11,103,496.11 |
| Total | 11,725,138.96 | 12,039,708.01 |
(2) Significant advance from customers aging over one year
In RMB
| Items | Balance in year-end | Unpaid/ Uncarry over reason |
| Guangzhou Huanlong Expressway Co., | 9,229,313.18 | Land rent is not in the settlement period |
| Ltd. | ||
| Guanghdong Xinle Technology Development Co., Ltd. | 1,757,170.13 | The Rental is not in the settlement period |
| Total | 10,986,483.31 | -- |
19. 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 | 13,122,437.17 | 131,540,765.12 | 127,852,673.86 | 16,810,528.43 |
| II.Post-employment benefits - defined contribution plans | 20,234,926.19 | 18,922,057.52 | 1,312,868.67 | |
| Total | 13,122,437.17 | 151,775,691.31 | 146,774,731.38 | 18,123,397.10 |
（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 | 628,563.49 | 96,560,819.61 | 92,603,286.95 | 4,586,096.15 |
| 2.Employee welfare | 8,294,025.59 | 8,268,433.50 | 25,592.09 | |
| 3. Social insurance premiums | 9,030,523.22 | 9,024,732.34 | 5,790.88 | |
| Including ：Medical insurance | 5,950,272.65 | 5,945,195.29 | 5,077.36 | |
| Work injury insurance | 151,140.26 | 151,079.52 | 60.74 | |
| Maternity insurance | 823,534.50 | 822,881.72 | 652.78 | |
| Supplementary medical insurance | 2,105,575.81 | 2,105,575.81 | ||
| 4.Public reserves for housing | 13,332,834.00 | 13,322,552.00 | 10,282.00 | |
| 5.Union funds and staff education fee | 11,817,868.74 | 3,248,185.04 | 3,560,531.41 | 11,505,522.37 |
| 6. Other Short-term remuneration | 3,600.00 | 3,600.00 | ||
| 8.Other | 676,004.94 | 1,070,777.66 | 1,069,537.66 | 677,244.94 |
| Total | 13,122,437.17 | 131,540,765.12 | 127,852,673.86 | 16,810,528.43 |
（3）Defined contribution plans listed
In RMB
| Items | Balance Year-beginning | Increase in this period | Payable in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 11,350,594.44 | 11,341,888.96 | 8,705.48 | |
| 2.Unemployment insurance | 433,378.99 | 433,010.35 | 368.64 | |
| 3.Enterprise annuity payment | 8,450,952.76 | 7,147,158.21 | 1,303,794.55 | |
| Total | 20,234,926.19 | 18,922,057.52 | 1,312,868.67 |
Other notes：
20. Tax Payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| VAT | 9,558,893.25 | 13,473,944.70 |
| Enterprise Income tax | 83,409,953.90 | 85,375,209.49 |
| Individual Income tax | 95,911.15 | 3,551,727.77 |
| City Construction tax | 510,507.83 | 793,960.96 |
| Land use tax | 607,742.40 | 200,454.00 |
| Property tax | 619,943.82 | 155,413.34 |
| Education subjoin | 247,654.02 | 371,885.57 |
| Locality Education subjoin | 151,087.55 | 233,892.04 |
| Stamp tax | 3,744.73 | 26,304.47 |
| Other | 2,460.00 | 15,953.72 |
| Total | 95,207,898.65 | 104,198,746.06 |
Other notes：
21.Other accounts payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Interest payable | 17,157,289.56 | 8,971,576.57 |
| Dividend payable | 21,150,413.70 | 17,191,142.23 |
| Other account payable | 246,255,948.01 | 165,091,746.04 |
| Total | 284,563,651.27 | 191,254,464.84 |
（1）Interest payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Pay the interest for long-term loans by installments. | 6,702,057.71 | 7,832,311.57 |
| Interest on medium-term bills | 9,091,506.85 | |
| Interest payable on entrusted loans | 1,363,725.00 | 1,139,265.00 |
| Total | 17,157,289.56 | 8,971,576.57 |
- Particulars of significant overdue unpaid interestNil
（2）Dividends payable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Common stock dividends | 21,150,413.70 | 17,191,142.23 |
| Total | 21,150,413.70 | 17,191,142.23 |
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 16,962,838.73yuan for more than a year in unpaid dividends to shareholders over the year was mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, did not share reform of shareholders to receive dividends or provide application to receive dividends the bank information is incorrect, resulting in failure to pay a dividend or refund.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
| Items | Year-end balance | Year-Beginning balance |
| Quality guarantee fund | 69,503,074.61 | 67,696,625.43 |
| Deposit | 3,598,824.65 | 1,876,467.00 |
| Other | 38,154,048.75 | 50,518,653.61 |
| Borrowing | 135,000,000.00 | 45,000,000.00 |
| Total | 246,255,948.01 | 165,091,746.04 |
(2) Other significant accounts payable with aging over one year
In RMB
| Items | Closing balance | Unpaid/un-carry over reason |
| China Railway Tunnel Group Co., Ltd. | 5,514,979.86 | Project Quality guarantees |
| China Railway 18 Bureau Group Co., Ltd. | 7,134,981.40 | Project Quality Guarantees,Contractual penalty, Wage deposit |
| Baoli Changda Highway Engineering Co., Ltd. | 8,106,409.63 | Project Quality Guarantees, Project performance fund |
| Dongguan Yueyu Optoelectronic Technology Co., Ltd. | 1,534,850.00 | Project Quality guarantee |
| Total | 22,291,220.89 | -- |
Other notes
22. Non-current liabilities due within 1 year
In RMB
| Items | Balance year-end | Year-beginning balance |
| Long-term loans due within 1 year | 2,041,365,000.00 | 2,498,480,000.00 |
| Total | 2,041,365,000.00 | 2,498,480,000.00 |
Other notes
23. Long-term loan
(1) Category of long-term loan
In RMB
| Items | Balance year-end | Year-beginning balance |
| Pledge loan | 386,700,000.00 | 422,350,000.00 |
| Guaranteed loan | 750,000,000.00 | 1,125,000,000.00 |
| Credit loan | 4,186,390,000.00 | 3,934,170,000.00 |
| Long-term loans due within one year | -2,041,365,000.00 | -2,498,480,000.00 |
| Total | 3,281,725,000.00 | 2,983,040,000.00 |
Other notes including interest rate range：
The Pledge loan rate is 4.41%; the guaranteed loan interest rate is 5.6%; the credit interest rate is 4.20%-4.41%.
Notes：
See Section VII, 48 for the types and amounts of mortgaged assets of pledged loans.
24.Bond payable
（1）Bond payable
In RMB
| Items | Balance year-end | Year-beginning balance |
| Medium- term note | 677,902,761.25 | |
| Total | 677,902,761.25 |
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability
In RMB
| Name of the bond | Book value | Issue date | Period | Issue amount | Opening balance | The current issue | Withdraw interest at par | Overflow discount amount | Pay in current period | Closing balance |
| Guangdong ExpresswayMTN001 | 680,000,000.00 | 2019.3.1 | 2019.3.1-2024.3.1 | 680,000,000.00 | 680,000,000.00 | -2,097,238.75 | 677,902,761.25 |
(3) Note to conditions and time of share transfer of convertible bonds
Nil
（4）Other financial instruments that are classified as financial liabilities
Nil
25. Long-term payable
In RMB
| Items | Balance year-end | Year-beginning balance |
| Long-term payable | 39,625,983.68 | 38,022,210.11 |
| Total | 39,625,983.68 | 38,022,210.11 |
(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 |
| Guangdong Jiangzhong Expressway Co., Ltd. Entrusted loan | 36,000,000.00 | 36,000,000.00 |
| Medium term bill underwriting fee | 1,603,773.57 | |
| Part due within a year |
Other notes：
（2）Special payable
Nil
26. Deferred income
In RMB
| Items | Opening balance | Increase | Decrease | Closing balance | Cause |
| Government subsidy | 2,500,000.00 | 2,500,000.00 | |||
| Total | 2,500,000.00 | 2,500,000.00 | -- |
Details of government subsidies：
In RMB
| Items | Beginning of term | New subsidy in current period | Amount transferred to non-operational income | Other income recorded in the current period | Amount of cost deducted in the current period | Other changes | End of term | Asset-related or income-related |
| Financial discount | 2,500,000.00 | 2,500,000.00 | Related to income |
27. Stock capital
In RMB
| Balance Year-beginning | Changed（+，-） | Balance in year-end | |||||
| Issuance of new share | Bonus shares | Capitalization of public reserve | Other | Subtotal | |||
| Total of capital shares | 2,090,806,126.00 | 2,090,806,126.00 | |||||
28. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 2,508,408,342.99 | 2,508,408,342.99 | ||
| Other capital reserves | 28,366,622.32 | 25,795,500.00 | 54,162,122.32 | |
| Total | 2,536,774,965.31 | 25,795,500.00 | 2,562,570,465.31 |
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 25,795,500.00 yuan due to the change of the owner's equity of thejoint-stock company
29. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | |||||
| Amount incurred before income tax | Less：Amount transferred into profit and loss in the current period that recognied into other comprehensive income in prior period | Less：Prior period included in other composite income transfer to retained income in the current period | Less：Income tax expenses | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| Other comprehensive income will be reclassified into income or loss in the future | 264,661,812.00 | 25,878,043.84 | 6,469,510.96 | 19,408,532.88 | 284,070,344.88 | |||
| Including: Share of other comprehensive income of the investee that cannot be transferred to profit or loss accounted for using the equity method | 264,661,812.00 | 25,878,043.84 | 6,469,510.96 | 19,408,532.88 | 284,070,344.88 | |||
| Other comprehensive income reclassifiable to profit or loss in subsequent periods | -8,488,346.90 | -470,449.14 | -470,449.14 | -8,958,796.04 | ||||
| Including：Share of other comprehensive income of the investee that cannot be transferred to profit or loss accounted for using the equity method | -8,488,346.90 | -470,449.14 | -470,449.14 | -8,958,796.04 | ||||
| Total of other comprehensive income | 256,173,465.10 | 25,407,594.70 | 6,469,510.96 | 18,938,083.74 | 275,111,548.84 | |||
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:
Nil
30. Surplus reserve
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 775,402,561.35 | 775,402,561.35 | ||
| Total | 775,402,561.35 | 775,402,561.35 |
Notes: Nil
31. Retained profits
In RMB
| Items | Amount of this period | Amount of last period |
| Before adjustments: Retained profits in last period end | 3,938,609,136.59 | 3,550,110,288.49 |
| Adjust the total undistributed profits at the beginning of the period | -11,353,413.48 | |
| After adjustments: Retained profits at the period beginning | 3,927,255,723.11 | 3,550,110,288.49 |
| Add：Net profit belonging to the owner of the parent company | 736,486,112.30 | 1,677,028,179.18 |
| Less: Statutory surplus reserve | 230,581,431.32 | |
| Common stock dividend payable | 1,175,033,042.81 | 1,057,947,899.76 |
| Retained profit at the end of this term | 3,488,708,792.60 | 3,938,609,136.59 |
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 -11,353,413.48
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB -11,353,413.48
(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 .
32.Operation income and operation cost
In RMB
| Items | Amount of this period | Amount of last period | ||
| Income | Cost | Income | Cost | |
| Main operation | 1,465,140,817.31 | 536,808,262.05 | 1,518,875,852.56 | 522,317,994.54 |
| Other operation | 18,532,427.90 | 12,815,548.44 | 16,988,292.58 | 11,418,571.81 |
| Total | 1,483,673,245.21 | 549,623,810.49 | 1,535,864,145.14 | 533,736,566.35 |
Whether implemented new revenue guidelines?
□ Yes √No
Other notes
33. Business tax and subjoin
In RMB
| Items | Amount of this period | Amount of last period |
| Urban construction tax | 2,826,207.50 | 2,938,753.34 |
| Education surcharge | 1,334,286.59 | 1,380,805.75 |
| Property tax | 653,603.50 | 661,486.13 |
| Land use tax | 607,742.40 | 603,977.11 |
| Vehicle use tax | 27,413.99 | 38,698.53 |
| Stamp tax | 151,645.56 | 242,575.38 |
| Business tax | 25,872.66 | 25,872.66 |
| Locality Education surcharge | 889,523.37 | 920,536.09 |
| Other | 40,728.40 | 40,410.00 |
| Total | 6,557,023.97 | 6,853,114.99 |
Other notes：
The various taxes and additional payment criteria are detailed in the Section VI, tax.
34. Administrative expenses
In RMB
| Items | Amount of this period | Amount of last period |
| Wage | 51,876,703.42 | 49,712,683.56 |
| Depreciation and Amortization | 5,426,970.90 | 5,428,661.13 |
| Low consumables amortization | 270,716.05 | 279,304.70 |
| Travel expenses | 425,060.93 | 384,417.28 |
| Office expenses | 4,046,634.57 | 2,828,218.57 |
| Leased expenses | 5,621,607.68 | 5,606,396.14 |
| The fee for hiring agency | 4,459,697.91 | 2,202,760.36 |
| Consultation expenses | 1,186,300.00 | 853,466.98 |
| Listing fee | 11,320.75 | 11,320.76 |
| Information cost and maintenance fee | 180,975.14 | 48,300.00 |
| Other | 3,469,223.12 | 5,753,931.46 |
| Total | 76,975,210.47 | 73,109,460.94 |
35. R & D cost
In RMB
| Items | Amount of this period | Amount of last period |
| Labor cost | 2,306,179.75 | |
| Depreciation expenses | 52,214.75 | |
| Other | 126,778.53 | |
| Total | 2,485,173.03 |
36.Financial expenses
In RMB
| Items | Amount of this period | Amount of last period |
| Interest expenses | 115,040,857.71 | 125,752,286.60 |
| Deposit interest income（-） | -15,761,707.69 | -18,076,236.30 |
| Exchange Income and loss（Gain-） | 1,590,432.88 | 2,348,188.17 |
| Bank commission charge | 904,728.33 | 2,755,977.00 |
| Other | 1,755,451.17 | |
| Total | 103,529,762.40 | 112,780,215.47 |
37.Other gains
In RMB
| Items | Amount of this period | Amount of last period |
| Maternity allowance | 377,218.29 | |
| Return of income tax procedures | 40,043.40 |
| A 10% deduction for input tax | 2,965.93 | |
| Total | 420,227.62 |
38. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment income by equity method | 237,712,998.09 | 216,777,157.34 |
| Dividends eamed during the holding period on investments in other equity instrument | 38,528,868.23 | |
| Hold the investment income during from available-for-sale financial assets | 42,581,144.86 | |
| Total | 276,241,866.32 | 259,358,302.20 |
39. Asset impairment loss
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
| Items | Amount of this period | Amount of last period |
| I. Bad debt loss | 57,890.35 | |
| Total | 57,890.35 |
Other note：
40.Assets disposal income
In RMB
| Source | Amount of this period | Amount of last period |
| Income from disposal of Fixed assets | 44,860,186.67 | |
| Income from disposal of Intellectual property right | 13,129,094.29 |
Notes： According to the overall plan of upgrading and renovation of Guangdong expressway toll collectionsystem. In April 2019, Guangdong Gaosu Science and Technology Investment Co., Ltd. transferred the relatedrights of "Blue Channel" which had not been completed as an asset group to the related party, Guangdong UnitollCollection Inc.The transaction was based on the evaluation value of the underlying asset group of ChinaFederation International Assessment Consulting Co., Ltd. (Assessment Report No. WIGPD0664, CIFICInternational Commentary [2018]).
41. 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 |
| Loss & abandonment of non-current assets | 110,018.02 | ||
| Road property claim income | 543,754.07 | 736,148.53 | 543,754.07 |
| Other income | 191,605.69 | 1,841,394.03 | 191,605.69 |
| Total | 735,359.76 | 2,687,560.58 | 735,359.76 |
- Government subsidy reckoned into current gains/losses: Nil
42. Non-Operation expense
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & losses |
| Loss & abandonment of non-current assets | 2,591,350.52 | 505,483.87 | 2,591,350.52 |
| Fine | 207.98 | 357,855.32 | 207.98 |
| Other | 1,639,849.45 | 1,144,628.24 | 1,639,849.45 |
| Total | 4,231,407.95 | 2,007,967.43 | 4,231,407.95 |
43. Income tax expense
(1) Lists of income tax expense
In RMB
| Items | Amount of current period | Amount of previous period |
| Current income tax expense | 154,541,370.84 | 179,094,084.83 |
| Deferred income tax expense | 35,155,403.21 | 34,127,634.02 |
| Total | 189,696,774.05 | 213,221,718.85 |
(2) Adjustment process of accounting profit and income tax expense
In RMB
| Items | Amount of current period |
| Total profits | 1,033,282,577.92 |
| Current income tax expense accounted by tax and relevant regulations | 258,320,644.48 |
| Influence of non taxable income | -69,151,826.00 |
| Impact of non-deductible costs, expenses and losses | 1,297,869.31 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | -1,111,136.29 |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | 387,306.91 |
| other | -46,084.36 |
| Income tax expense | 189,696,774.05 |
44. Other comprehensive income
Refer to the notes 7.29
45.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest income | 15,761,707.69 | 18,076,236.30 |
| Unit current account | 9,857,010.59 | 23,870,093.68 |
| Total | 25,618,718.28 | 41,946,329.98 |
（2）Other cash paid related to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Management expense | 16,677,364.01 | 18,068,478.74 |
| Network received toll income | 6,999,980.83 | 3,803,254.03 |
| Unit current account | 14,244,441.25 | |
| Total | 37,921,786.09 | 21,871,732.77 |
(3)Cash received related to other investment activities
Nil
(4)Cash paid related to other investment activities
Nil
（5）Other cash received in relation to financing activities
Nil
（6）Cash paid related with financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Medium-term bill issuance fee | 791,384.00 | |
| Total | 791,384.00 |
46. 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 | 843,585,803.87 | 898,633,867.88 |
| Add: Impairment loss provision of assets | -57,890.35 | |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 402,575,984.69 | 398,876,127.65 |
| Amortization of intangible assets | 1,184,929.43 | 1,318,922.34 |
| Amortization of Long-term deferred expenses | 53,508.72 | 55,661.40 |
| Loss on disposal of fixed assets, intangible assets and other long-term deferred assets | -13,129,094.29 | -44,860,186.67 |
| Fixed assets scrap loss | 2,591,350.52 | 395,465.85 |
| Financial cost | 116,631,290.59 | 130,600,474.77 |
| Supplement Information | Amount of current period | Amount of previous period |
| Loss on investment | -276,241,866.32 | -259,358,302.20 |
| Decrease of deferred income tax assets | 44,118,004.31 | 54,102,320.89 |
| Increased of deferred income tax liabilities | -8,962,601.10 | -42,912,043.91 |
| Decrease of inventories | -29,124.58 | -139,076.49 |
| Decease of operating receivables | -16,566,898.76 | -4,522,183.33 |
| Increased of operating Payable | -45,000,189.85 | -312,353,569.73 |
| Net cash flows arising from operating activities | 1,050,811,097.23 | 819,779,588.10 |
| II. Significant investment and financing activities that without cash flows: | -- | -- |
| 3．Movement of cash and cash equivalents： | -- | -- |
| Ending balance of cash | 2,036,803,751.05 | 1,821,466,139.37 |
| Less: Beginning balance of cash equivalents | 2,123,303,796.32 | 2,363,042,700.42 |
| Net increase of cash and cash equivalents | -86,500,045.27 | -541,576,561.05 |
(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 |
| Cash | 2,036,803,751.05 | 2,123,303,796.32 |
| Of which: Cash in stock | 91,690.76 | 53,211.49 |
| Bank savings could be used at any time | 2,036,197,054.12 | 2,122,585,810.07 |
| Other monetary capital could be used at any time | 515,006.17 | 664,774.76 |
| Balance of cash and cash equivalents at the period end | 2,036,803,751.05 | 2,123,303,796.32 |
Other note：
Cash and cash equivalents exclude restricted cash and cash equivalents used by parent companies orsubsidiaries within a group.
47. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
Nil
48. The assets with the ownership or use right restricted
In RMB
| Items | Book value at the end of the period | Restricted reason |
| Monetary fund | 1,221,200.00 | Land reclamation funds in the fund escrow account |
| Total | 1,221,200.00 | -- |
Other notes：
Up to June 30, 2019, Jingzhu Expressway Guangzhu Section Co., Ltd., the controlling grandchildrencompany of the Company, with the toll collection right 19.20% of Panyu Tangkeng-Zhuhai Jinding section projectin Jingzhu expressway, asked for386,700,000.00 yuan of loan from Guangzhou Wuyang Branch of ICBC toprovide pledge guarantee(of which the non-current debt balance with 1-year expiration was 38,680,000.00 yuanand the long-term loan balance was 348,020,000.00 yuan).
49. Foreign currency monetary items
Nil
50.Hedging
Nil
51. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
| Items | Amount | Project | Amount included in current profit and loss |
| Financial discount | 2,500,000.00 | Financial expenses | 2,500,000.00 |
| Maternity allowance | 377,218.29 | Other income | 377,218.29 |
| Return of income tax procedures | 40,043.40 | Other income | 40,043.40 |
| A 10% deduction for input tax | 2,965.93 | Other income | 2,965.93 |
（2）Government subsidy return
Nil
52.Other
Nil
VIII. Changes of merge scope
1. Business merger not under same control
Nil
2. Business combination under the same control
Nil
3. Counter purchase
Nil
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)and relevant informationIn August 2018, Guangdong Fokai Expressway Co., Ltd. completed the industrial and commercial cancellation,and obtained the “Notice of Approval for Cancellation Registration” and the “Notice of Permit for CancellationRegistration”. From August 2018, Guangdong Fokai Expressway Co., Ltd. was no longer included in the scope ofconsolidated statements.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 | |||||
| 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: NilOther notes：
Jingzhu Expressway Guangzhu Section Co., Ltd. is a non-wholly owned subsidiary of Guangzhou GuangzhuTraffic Investment Management Co., Ltd.Guangzhou Guangzhu Traffic Investment Management Co., Ltd. holds 55% equity in Guangzhu Section Co.,Ltd. of Beijing-Zhuhai Expressway.
(2) Important Non-wholly-owned Subsidiary
In RMB
| Name of Subsidiary | Shareholding Ratio of Minority Shareholders (%) | Profit or Loss Owned by the Minority Shareholders in the Current Period | Dividends Distributed to the Minority Shareholders in the Current Period | Equity Balance of the Minority Shareholders in the End of the Period |
| Guangfo Expressway Co., Ltd. | 25.00% | 35,631,805.76 | 64,914,807.35 | 110,721,305.45 |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 25.00% | 71,467,885.81 | 158,471,897.94 | 232,591,404.70 |
Holding proportion of minority shareholder in subsidiary different from voting proportionNil
(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. | 478,939,446.36 | 24,093,537.24 | 503,032,983.60 | 60,147,761.80 | 60,147,761.80 | 590,663,709.13 | 27,675,485.80 | 618,339,194.93 | 58,321,966.77 | 58,321,966.77 | ||
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 144,135,264.47 | 2,191,608,535.63 | 2,335,743,800.10 | 280,965,311.82 | 1,124,412,869.47 | 1,405,378,181.29 | 432,281,073.29 | 2,301,876,076.48 | 2,734,157,149.77 | 419,370,011.85 | 1,036,405,470.57 | 1,455,775,482.42 |
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. | 231,359,875.86 | 142,527,223.05 | 142,527,223.05 | 146,829,390.44 | 226,325,833.32 | 142,435,343.71 | 142,435,343.71 | 145,431,353.01 |
| Jingzhu Expressway Guangzhu Section Co.,Ltd. | 613,528,787.18 | 285,871,543.23 | 285,871,543.23 | 390,248,834.50 | 645,871,184.09 | 336,091,139.89 | 336,091,139.89 | 433,240,710.71 |
Other notes：
(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 subsidiaryNil
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
| Name | Main operating place | Registration place | Business nature | Proportion | Accounting treatment of the investment of joint venture or associated enterprise | |
| Directly | Indirectly | |||||
| Guangdong Guanghui Expressway Co., Ltd. | Guangzhou, Guangdong | Guangzhou, Guangdong | Expressway Management | 30.00% | Equity method | |
| Zhaoqing Yuezhao Highway Co., Ltd. | Zhaoqing, Guangdong | Zhaoqing, Guangdong | Expressway Management | 25.00% | Equity method | |
| Shenzhen Huiyan Expressway Co., Ltd. | Shenzhen Guangdong | Shenzhen Guangdong | Expressway Management | 33.33% | Equity method | |
| Guangdong Jiangzhong Expressway Co., Ltd. | Zhongshan , Guangdong | Guangzhou,Guangdong | Expressway Management | 15.00% | Equity method | |
| Ganzhou kangda Expressway Co., Ltd. | Gangzhou, Jiangxi | Gangzhou, Jiangxi | Expressway Management | 30.00% | Equity method | |
| Ganzhou Gankang Expressway | Gangzhou, Jiangxi | Gangzhou, Jiangxi | Expressway Management | 30.00% | Equity method | |
| Co., Ltd. | ||||||
| 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:
NilBasis 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 operating decisions, and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |||
| Guangdong Guanghui Expressway Co., Ltd. | Zhaoqing Yuezhao Highway Co., Ltd. | Guangdong Guanghui Expressway Co., Ltd. | Zhaoqing Yuezhao Highway Co., Ltd. | |
| Current assets | 1,037,374,944.35 | 223,190,616.84 | 886,631,849.70 | 196,254,075.84 |
| Including：Cash and cash equivalent | 649,776,493.58 | 203,757,595.19 | 621,540,000.54 | 180,784,827.23 |
| Non-current assets | 3,684,003,696.57 | 1,503,858,440.11 | 3,813,612,927.86 | 1,565,557,770.89 |
| Total assets | 4,721,378,640.92 | 1,727,049,056.95 | 4,700,244,777.56 | 1,761,811,846.73 |
| Current liabilities | 380,259,354.55 | 170,743,108.11 | 544,082,765.04 | 151,065,956.20 |
| Non-current liabilities | 750,585,884.83 | 429,171,145.43 | 847,757,933.94 | 382,056,538.13 |
| Total liabilities | 1,130,845,239.38 | 599,914,253.54 | 1,391,840,698.98 | 533,122,494.33 |
| Attributable to shareholders of the parent company | 3,590,533,401.54 | 1,127,134,803.41 | 3,308,404,078.58 | 1,228,689,352.40 |
| Share of net assets calculated by stake | 1,077,160,020.46 | 281,783,700.85 | 992,521,223.58 | 307,172,338.10 |
| Book value of equity investment in joint | 1,077,160,020.46 | 281,783,700.85 | 992,521,223.58 | 307,172,338.10 |
| ventures | ||||
| Operating income | 917,898,192.73 | 271,809,006.27 | 878,931,209.54 | 264,667,911.36 |
| Financial expenses | 10,890,126.55 | 8,018,895.83 | 18,892,654.01 | 11,944,947.35 |
| Income tax expenses | 159,573,250.38 | 36,249,025.63 | 152,535,401.50 | 39,485,100.11 |
| Net profit | 478,273,173.41 | 111,276,912.65 | 447,126,957.50 | 114,543,781.53 |
| Total comprehensive income | 478,273,173.41 | 111,276,912.65 | 447,126,957.50 | 114,543,781.53 |
| Dividends received from joint ventures this year | 84,638,655.14 | 53,207,865.41 | 37,805,847.20 | 43,088,859.48 |
Other notes
(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 | 203,740,250.60 | 197,428,062.33 | 55,202,301.36 | 291,779,329.73 | 1,435,055,907.93 | 61,855,277,205.05 | 153,631,998.00 | 86,313,236.14 | 35,495,996.32 | 270,093,954.27 | 1,394,967,072.45 | 42,721,180,653.50 |
| Non-current assets | 579,942,539.84 | 1,616,367,531.02 | 1,442,449,120.81 | 1,326,869,593.48 | 8,497,468.27 | 23,466,136,337.81 | 569,633,252.71 | 1,701,322,494.90 | 1,463,543,288.08 | 1,372,121,014.40 | 8,047,674.82 | 35,374,232,070.51 |
| Total assets | 783,682,790.44 | 1,813,795,593.35 | 1,497,651,422.17 | 1,618,648,923.21 | 1,443,553,376.20 | 85,321,413,542.86 | 723,265,250.71 | 1,787,635,731.04 | 1,499,039,284.40 | 1,642,214,968.67 | 1,403,014,747.27 | 78,095,412,724.01 |
| Current liabilities | 31,708,445.60 | 210,083,276.93 | 112,133,062.29 | 81,897,874.17 | 73,463,278.19 | 47,675,073,040.50 | 31,603,980.10 | 170,304,772.67 | 72,629,731.89 | 109,921,418.26 | 40,797,858.70 | 46,417,460,063.63 |
| Non-current Liabilities | 12,000,000.00 | 362,000,000.00 | 664,436,870.32 | 820,307,181.39 | 553,525.66 | 13,076,057,576.44 | 448,500,000.00 | 693,126,157.44 | 832,307,181.39 | 636,518.58 | 6,989,817,868.77 | |
| Total liabilities | 43,708,445.60 | 572,083,276.93 | 776,569,932.61 | 902,205,055.56 | 74,016,803.85 | 60,751,130,616.94 | 31,603,980.10 | 618,804,772.67 | 765,755,889.33 | 942,228,599.65 | 41,434,377.28 | 53,407,277,932.40 |
| Minorit | 235,126,897.17 | 11,457,327.58 | 263,112,578.63 | 11,368,910.62 | ||||||||
| 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. | |
| y Shareholders’ Equity | ||||||||||||
| Shareholders’ equity attributable to shareholders of the parent | 739,974,344.84 | 1,241,712,316.42 | 721,081,489.56 | 716,443,867.65 | 1,134,409,675.18 | 24,558,825,598.34 | 691,661,270.61 | 1,168,830,958.37 | 733,283,395.07 | 699,986,369.02 | 1,098,467,791.36 | 24,676,765,880.99 |
| Pro rata share of the net assets calculated | 246,658,114.95 | 186,256,847.46 | 216,324,446.87 | 214,933,160.30 | 226,881,935.03 | 580,883,093.44 | 230,553,756.87 | 175,324,643.76 | 219,985,018.52 | 209,995,910.71 | 219,693,558.27 | 583,672,702.24 |
| --Goodwill | 206,725,818.02 | 206,725,818.02 | ||||||||||
| 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. | |
| The book value of equity investments in joint ventures | 246,658,114.95 | 186,256,847.46 | 216,324,446.87 | 214,933,160.30 | 226,881,935.03 | 787,608,911.46 | 230,553,756.87 | 175,324,643.76 | 219,985,018.52 | 209,995,910.71 | 219,693,558.27 | 790,398,520.26 |
| Fair value of equity investment of associated enterprises with open quotation | 896,321,336.64 | 555,621,862.28 | ||||||||||
| Buinsess incme | 117,304,847.55 | 242,978,582.04 | 120,016,044.66 | 86,684,080.43 | 71,544,176.43 | 1,616,521,271.21 | 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 |
| Net | 48,313,07 | 72,881,358.05 | 57,798,094.49 | 16,457,498.63 | 43,992,902.36 | 432,745,658.33 | 53,441,605.08 | 45,984,003.63 | 46,129,129.35 | 10,167,378.44 | 36,989,232.30 | 211,597,500.90 |
| 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. | |
| profit | 4.35 | |||||||||||
| Other comprehensive income | 6,888,669.24 | -210,693,647.23 | ||||||||||
| Total comprehensive income | 48,313,074.35 | 72,881,358.05 | 57,798,094.49 | 16,457,498.63 | 43,992,902.36 | 439,634,327.57 | 53,441,605.08 | 45,984,003.63 | 46,129,129.35 | 10,167,378.44 | 36,989,232.30 | 903,853.67 |
| Dividends received from associates during the year | 3,789,200.79 | 11,940,297.90 | ||||||||||
Other notes
(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 investment
Nil
(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 statementsNotes：
NilX. Risks Related to Financial Instruments
The main financial instruments of the Company include equity investments, financial products, trust
investments, accounts receivable, accounts payable etc., please refer to Note 6 for detail of related items. The risk
associated with financial instruments, and risk management policies which the Company uses to reduce these risks
are described below. The management of the Company manages and supervises the risks to ensure that the risks
can be controlled within a limited range.The Company uses sensitivity analysis techniques to analyze the impact of reasonable and possible changes
in risk variables on current profit and loss or shareholders' equity. Since any risk variable seldom changes in
isolation, and the correlation between variables will have a significant impact on the final amount of change in a
risk variable, the following is assumed to be independent of each variable.(I)The targets and policies of risk managementThe target of risk management is to obtain the proper balance between the risk and benefit, to reduce the
negative impact that is caused by the risk of the Company to the lowest level, and to maximize the benefits of
shareholders and other equity investors. Based on the targets of risk management, the basic strategy of the
Company’s risk management is to identify and analyze the risks which are faced by the Company, establish
suitable risk tolerance baseline and proceed the risk management, and supervise a variety of risks timely and
reliably, and control the risks within a limited range.
1.Market risk
（1）Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign exchange risk ismainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder dividends, other majorbusiness activities of our Company are settled in RMB. During the reporting period, due to the short credit periodof the Company's income and expenditure related to foreign currency, it was not affected by foreign exchangerisk.
（2）Interest rate risk
The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainlyrelated to floating rate bank borrowings (see this Section VII 23). The Company's policy is to maintain the floatinginterest rate of these borrowings, and at the same time to reasonably reduce the risk of interest rate fluctuation byshortening the term of a single loan and specifically agreeing on prepayment terms.
（3）Other price risk
The investments held by the Company are classified as financial assets measured at fair value and whosechanges are included in other comprehensive income (financial assets available for sale on or before December 31,2018) and are measured at fair value on the balance sheet date. Therefore, the Company bears the risk of changesin the securities market.
2.Credit risk
On June 30, 2019, the largest credit risk exposure that may cause financial losses of the Company mainlycomes from the loss of financial assets of the Company caused by the failure of the other party to perform itsobligations.
In order to reduce credit risk, the Company only deals with recognized and reputable customers. In addition,the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequatebad debt provisions are made for unrecoverable amounts. Consequently, the Company's management believes thatthe Company's credit risk has been greatly reduced.
3.Liquidity risk
When managing liquidity risks, the Company maintains sufficient cash and cash equivalents as deemed bythe management and monitor them to meet the Company's operational needs and reduce the impact of cash flowfluctuations. The management of the Company monitors the use of bank loans and ensures compliance with theloan agreement.
(II) Transfer of financial assets
Nil
(III) Offsetting of financial assets and financial liabilities
Nil
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
| Items | Closing fair value | |||
| Fir value measurement items at level 1 | Fir value measurement items at level 2 | Fir value measurement items at level 3 | Total | |
| I. Consistent fair value | -- | -- | -- | -- |
| measurement | ||||
| （3）Other equity instrument investment | 896,321,336.64 | 896,321,336.64 | ||
| Total assets continuously measured at fair value | 896,321,336.64 | 896,321,336.64 | ||
| II. Non –persistent measure | -- | -- | -- | -- |
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.As at the end of the period, the company holds shares 235,254,944 shares of China Everbright BankAccording to the closing price of June 30, 2019 of 3.81 yuan, the final calculation of fair value was896,321,336.64 yuan.
3. Valuation technique adopted and nature and amount determination of important parameters forconsistent 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 levelsNil
7. Changes in the valuation technique in the current period and the reason for changeNil
8. Fair value of financial assets and liabilities not measured at fair value
At the end of the period, the fair value of financial assets and financial liabilities held by the Company thatare not measured at fair value is as follows:
| Items | Book value | Fair values | Remark | ||
| Balance at Beginning of the Year | Ending amount | Affiliated hierarchy | |||
| Financial assets not measured at fair value | 798,348,301.73 | 798,348,301.73 | 798,348,301.73 | ||
| Investment in other equity instruments | 798,348,301.73 | 798,348,301.73 | 798,348,301.73 |
| Financial liabilities not measured at fair value |
9. The valuation method and relevant information description of the fair value change caused by the enterprise'sown credit risk of financial assets and financial liabilities designated as fair value measurement and whosechanges are included in current profits and lossesNilXII. Related parties and related-party transactions
1. Parent company information of the enterprise
| Name | Registered address | Nature | Redistricted capital | The parent company of the Company's shareholding ratio | The parent company of the Company’s vote ratio |
| Guangdong communication Group Co., Ltd | Guangzhou | Equity management, traffic infrastructure construction and railway project operation | 26.8 billion | 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, 2019,Registered capital: 26.8 billion yuan. It is asolely state-owned limited company. Business scope：equity management, organization of asset reorganization andoptimized allocation, raising funds by means including mortgage, transfer of property rights and joint stocksystem transformation, project investment, operation and management, traffic infrastructure construction, highwayand railway project operation and relevant industries, technological development, application, consultation andservices, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; Thevalue-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission ofGuangdong Provincial People's Government.
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see Note IX(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Nil
4. Other Related parties
| Name | Relation with the Company |
| Guangdong Litong Real Estate Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Highway Construction Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Guanghui Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong East Thinking Management Technology Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Guangle Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Jiangzhong Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Union Electron Service Co., ltd. | Fully owned subsidiary of the parent company |
| Guangdong Humen Bridge 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 Tongyi Expressway Service Area Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Expressway Media Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Hualu Traffic Technology Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Gaoda Property Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Two Guang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Hehui Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Jiangzhao Expressway Management Center | Fully owned subsidiary of the parent company |
| Guangdong Kaiyang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Lluoyang Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Maozhan Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Meihe Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Ninghua Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Shanfen Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Yangmao Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Yuedong Expressway Industry Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangshenzhu Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Heyuan Helong Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Name | Relation with the Company |
| Yunfu Guangyun Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Boda Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Traffic Industry Investment Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Road & Bridge Construction Development Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Zhaoyang Expressway Co., ltd. | Fully owned subsidiary of the parent company |
| Guangdong Baomao Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Yueyun Traffic Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Taishan Coastal Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Lulutong Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Chaohui Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Guangfo Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Pingxing Expressway Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangzhou Xinyue Asphalt Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Yueyun Traffic Co., Ltd. | Fully owned subsidiary of the parent company |
| Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Guangdong Guangzhu West Line Expressway Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Baoli Changda Engineering Co., Ltd. | Shareholding unit of parent company |
| Guangdong Shenshan Expressway Co., Ltd. | Controlled by the same parent company and equity participation unit |
| Guangzhongjiang Expressway Project Management Center | Managed by the parent company |
| Hongkong- Zhuhai-Macao Connection line management center | Managed by the parent company |
| Guangdong Nanyue Traffic Renbo Expressway Management Center | Managed by the parent company |
| Guangdong Nanyue Traffic Shaogan Expressway Management Center | Managed by the parent company |
| Guangdong Nanyue Traffic Yunzhang Expressway Management Center | Managed by the parent company |
| Guangdong Nanyue Traffic Renhui Expressway Management Center | Managed by the parent company |
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
| Related parties | Content of related transaction | Amount of current period | Amount of previous period | Over the trading limit or not | Amount of last period |
| Baoli Changda Engineering Co., Ltd. | Service charge | 2,440.62 | |||
| Guangdong Litong Technology Investment Co., Ltd. | Project fund | 784,739.50 | |||
| Guangdong Humen Bridge Co., Ltd. | Project fund, service | 539,307.09 | |||
| Guangdong Tongyi Expressway Service Area Co., Ltd | Service | 103,076.37 | 259,399.97 | ||
| Guangdong Lulutong Co., Ltd. | Maintenance charges | 715,406.99 | 25,393.54 | ||
| Guangdong Union electronic services co., Ltd. | Service | 3,767,825.78 | 8,075,494.51 | ||
| Guangdong Expressway Media Co., Ltd. | Electric charge | 6,431.59 | |||
| Guangdong Guanghui Expressway Co., Ltd. | Interest | 2,014,593.75 | 1,349,043.75 | ||
| Guangdong Jiangzhong Expressway Co., Ltd. | Interest | 708,615.00 | |||
| Ganzhou Gankang Expressway Co., Ltd. | Interest | 765,623.34 | |||
| Guangdong Expressway Media Co., Ltd. | Service | 606,132.08 | |||
| Guangdong East Thinking Management Technology Development Co., Ltd. | Service | 60,000.00 | 60,000.00 | ||
| Baoli Changda Engineering Co., Ltd. | Purchase assets | 183,277,074.35 | 34,838,755.49 | ||
| uangdong Hualu Traffic Technology Co., Ltd. | Purchase assets | 459,346.00 | 1,548,686.53 | ||
| Guangdong Xinyue traffic Investment Co., Ltd. | Purchase assets | 6,688,119.43 |
Related transactions on sale goods and receiving services
In RMB
| Related party | Content | Amount of current period | Amount of previous period |
| Jingzhu Expressway Guangzhu North section Co., Ltd. | Commission management fee | 9,516,226.40 | 8,092,547.17 |
| Guangdong Expressway Co., Ltd. | Project fund | 2,052,036.80 | 2,192,131.13 |
| Related party | Content | Amount of current period | Amount of previous period |
| Guangdong Highway Construction Co., Ltd. | Project fund | 603,570.34 | 212,264.16 |
| Guangdong Road & Bridge Construction Development Co., Ltd. | Project fund | 120,550.07 | 267,452.83 |
| Guangshenzhu Expressway Co., Ltd. | Project fund | 114,655.17 | |
| Guangdong Boda Expressway Co., Ltd. | Project fund | 107,547.17 | 117,452.83 |
| Guangdong Kaiyang Expressway Co., Ltd. | Project fund | 89,142.85 | 134,035.68 |
| Yunfu Guangyun Expressway Co., Ltd. | Project fund | 69,535.81 | 35,377.36 |
| Guangdong Traffic Industry Investment Co., Ltd. | Project fund | 59,433.96 | |
| Guangdong Xinyue Traffic Investment Co., Ltd. | Project fund | 32,212.39 | |
| Guangdong West Line Expressway Co., Ltd. | Project fund | 234,905.66 | |
| Guangdong Humen Bridge Co., Ltd. | Project fund | 29,716.98 | 26,886.79 |
| Guangdong Chaohui Expressway Co., Ltd. | Project fund | 192,452.83 | |
| Guangdong Guangfo Expressway Co., Ltd. | Project fund | 154,245.28 | |
| Guangdong Guanghui Expressway Co., Ltd. | Project fund | 144,339.62 | |
| Guangdong Guangle Expressway Co., Ltd. | Project fund | 142,924.53 | |
| Zhaoqing Yuezhao Highway Co., Ltd. | Project fund | 123,113.21 | 101,886.79 |
| Guangdong Zhongjiang Expressway Project Management Dept | Project fund | 89,622.64 | |
| Guangdong Jiangzhong Expressway Co., Ltd. | Project fund | 169,001.14 | 82,075.47 |
| Guangdong Taishan Coastal Expressway Co., Ltd. | Project fund | 59,433.96 | |
| Guangdong Litong Technology Investment Co., Ltd. | Project fund | 35,384.62 | |
| Shezhen Huiyan Expressway Co., Ltd. | Project fund | 663,319.81 | 26,886.79 |
| Guangdong Yueyun Triffic Co., Ltd. | Project fund | 21,226.42 |
Notes
（2）Related trusteeship/contract
Nil
(3) Information of related lease
The Company was lessor：
In RMB
| Name of lessee | Category of lease assets | The lease income confirmed in this year | The lease income confirmed in last year |
| Guangdong Expressway Media Co., Ltd. | Advertising lease | 195,542.86 | 1,748.41 |
- The company was lessee：
In RMB
| Lessor | Category of leased assets | The lease income confirmed in this year | Category of leased assets |
| Guangdong Litong Real Eatate Investment Co., Ltd | Office space | 4,469,957.38 | 4,406,113.37 |
| Guangdong Guanghui Expressway Co., Ltd. | Advertising column lease | 884,200.00 | |
| Zhaoqing Yuezhao Highway Co., Ltd. | Advertising column lease | 124,031.25 | |
| Guangzhou Yueyun Traffic Co., Ltd. | Car rental fee | 42,400.00 | 97,530.00 |
| Guangdong Gaoda Property Development Co., Ltd. | Office space | 52,686.57 | 7,230.00 |
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 |
(5) Inter-bank lending of capital of related parties
In RMB
| Related party | Amount borrowed and loaned | Initial date | Due date | Notes |
| Borrowed | ||||
| Guangdong Guanghui Expressway Co., Ltd. | 30,000,000.00 | April 1,2019 | March 31,2020 | |
| Guangdong Guanghui Expressway Co., Ltd. | 105,000,000.00 | April 2,2019 | April 1,2020 | |
| Guangdong Guanghui Expressway Co., Ltd. | 45,000,000.00 | May 22,2018 | May 21,2019 | |
| Guangdong Jiangzhong Expressway Co Loaned., Ltd. | 36,000,000.00 | November 14,2018 | November 13,2023 | |
| Loaned | ||||
(6) Related party asset transfer and debt restructuring
Nil
(7) Rewards for the key management personnel
In RMB
| Items | Amount of current period | Amount of previous period |
| Rewards for the key management personnel | 2,417,800.00 | 2,415,100.00 |
(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 | 189,879,309.18 | 381,881,836.28 |
| Interest Income | 6,226,669.02 | 3,752,689.53 |
| Pricing Principle | Reference to the deposit rate of the people's Bank of China for the same period | |
On December 25, 2017 and December 22, 2017, the Company signed the Cash Management BusinessCooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and Industrial andCommercial Bank of China Guangdong Branch and signed the Cash Management Business CooperationAgreement with Guangdong Communications Group Finance Co., Ltd. and China Construction Bank Corporation.Guangdong Branch respectively, to join in the cash pool of Guangdong Communications Group Finance Co., Ltd.-On June 15, 2016,The company’s 29th meeting (Provisional) of the seventh board of directors wasconvened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project ofSanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting, agreed
that 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.
③The subsidiary Guangdong Gaosu Science and Technology Investment Co., Ltd. signed the Blue ChannelRelated Asset Transfer Contract with the affiliated party Guangdong Unitoll Collection Inc, transferring the rightsrelated to the Blue Channel that have not been developed and completed as an asset group to the affiliated partyGuangdong Unitoll Collection Inc at a transfer price of RMB 19,881,200.00, see Note VII, 40 for details.
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 Humen Bridge Co., Ltd. | 23,560,330.99 | 12,579,159.31 | ||
| Account receivable | Guangdong Union electron Service Co., Ltd. | 47,675,526.05 | 45,159,424.41 | ||
| Account receivable | Jingzhu Expressway Guangzhu North Section Co., Ltd. | 4,819,475.01 | 5,280,850.02 | ||
| Account receivable | Guangdong Expressway Co., Ltd. | 2,579,058.00 | 873,408.00 | ||
| Account receivable | Guangdong Highway Construction Co., Ltd. | 699,980.00 | 358,484.00 | 109,152.00 | |
| Account receivable | Guangdong Xinyue Traffic Investment Co., Ltd. | 532,703.53 | 188,155.61 | 1,828,273.53 | 202,508.01 |
| Account receivable | Guangdong Kaiyang Expressway Co., Ltd. | 267,300.00 | 178,157.15 | ||
| Account receivable | Guangdong Boda Expressway Co., Ltd. | 114,000.00 | |||
| Account receivable | Guangdong Road & Bridge Construction Development Co., Ltd. | 108,000.00 | |||
| Account receivable | Guangdong Zhongjiang Expressway Priject Management Dept | 95,000.00 | 95,000.00 | ||
| 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 Jiangzhao Expressway Management Center | 78,000.00 | 156,000.00 | ||
| Account receivable | Yunfu Guangyun Expressway Co., Ltd. | 76,000.00 | |||
| Account receivable | Guangdong Litong Technology Investment Co., Ltd. | 68,542.00 | 6,854.20 | ||
| Account receivable | Tuangdong Taishan Coastal Expressway Co., Ltd. | 63,000.00 | 63,000.00 | ||
| Account receivable | Guangdong Traffic Industry Investment Co., Ltd. | 63,000.00 | |||
| Account receivable | Guangdong Guanghui Expressway Co., Ltd. | 21,125.65 | 901,822.65 | ||
| Account receivable | Guangdong Guangzhu West Line Expressway Co., Ltd. | 294,260.00 | |||
| Account receivable | Guangdong Yueyun Traffic Co., Ltd. | 45,000.00 | |||
| Account receivable | Zhaoqing Yuezhao Highway Co., Ltd. | 135,329.98 | 4,829.98 | ||
| Advanced payment | Guangdong Litong Real Estate Investment Co., Ltd. | 735,092.38 | 735,092.38 | ||
| Advanced payment | Zhaoqing Yuezhao Highway Co., Ltd. | 20,671.75 | 144,702.50 | ||
| Other Account receivable | Guangdong Litong Real Estate Investment Co., Ltd. | 1,515,077.22 | 1,505,864.00 | ||
| Other Account receivable | Guangdong Guanghui Expressway Co., Ltd. | 1,462,587.90 | 1,478,904.68 | ||
| Other Account receivable | Guangdong Expressway Co., Ltd. | 607,620.98 | 630,778.47 | ||
| Other Account receivable | Zhaoqing Yuezhao Highway Co., Ltd. | 429,558.65 | 437,463.87 | ||
| Other Account receivable | Guangdong Xinyue Traffic Investment Co., Ltd. | 423,767.60 | 415,442.60 | ||
| Other Account receivable | Guangshenzhu Expressway Co., Ltd. | 185,014.40 | 187,533.46 | ||
| Other Account | Guangdong Tongyi Expressway Service | 160,191.20 | |||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| receivable | Area Co., Ltd. | ||||
| Other Account receivable | Guangdong Guangzhu West Line Expressway Co., Ltd. | 104,727.60 | 186,371.32 | ||
| Other Account receivable | Guangdong Expressway Media Co., Ltd. | 126,660.80 | 275,166.57 | ||
| Other Account receivable | Guangdong Highway Construction Co., Ltd. | 133,083.25 | 129,529.29 | ||
| Other Account receivable | Guangdong Road & Bridge Construction Development Co., Ltd. | 73,773.60 | 121,948.14 | ||
| Other Account receivable | Guangdong Boda Expressway Co., Ltd. | 51,808.80 | 52,467.45 | ||
| Other Account receivable | Guangdong Jiangzhong Expressway Co., Ltd. | 28,120.00 | 28,474.26 | ||
| Other Account receivable | Guangdong Gaoda Property Development Co., Ltd. | 15,906.00 | 11,748.00 | ||
| Other Account receivable | Guangdong Shenshan Expressway East Section Co., Ltd. | 12,000.00 | 12,081.56 | ||
| Other Account receivable | Guangdong Humen Bridge Co., Ltd. | 11,306.50 | 9,141.89 | ||
| Other Account receivable | Guangdong Maozhan Expressway Co., Ltd. | 8,747.20 | 14,074.11 | ||
| 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 Industry Development Co., Ltd. | 7,367.20 | 7,367.20 | ||
| Other Account receivable | Guangdong Guangle Expressway Co., Ltd. | 7,248.00 | 29,832.90 | ||
| Other Account receivable | Guangdong Yangmao Expressway Co., Ltd. | 6,004.80 | 29,265.49 | ||
| Other Account receivable | Guangdong Zhaoyang Expressway Co., Ltd. | 4,304.00 | 4,304.00 | ||
| Other Account receivable | Guangdong Yueyun Traffic Co., Ltd. | 3,032.00 | 3,032.00 | ||
| 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 Kaiyang Expressway Co., Ltd. | 45,999.77 | |||
| Other Account receivable | Guangdong Jingzhu Expressway Guangzhu Section Co., Ltd. | 6,064.00 | 6,202.46 | ||
| Other Account receivable | Yunfu Guangyun Expressway Co., Ltd. | 5,831.32 | |||
| Other Account receivable | Guangdong Litong Technology Investment Co., Ltd. | 5,273.00 | 5,273.00 | ||
| Other Account receivable | Guangdong Guangfo Expressway Co., Ltd. | 3,619.10 | |||
| Other Account receivable | Hongkong Zhuhai Macao Bridge Connection line management center | 3,000.00 | 3,000.00 | ||
| Other Account receivable | Guangdong Chaohui Expressway Co., Ltd. | 2,819.90 | |||
| Other Account receivable | Guangdong Two Guang Expressway Co., Ltd. | 1,656.69 | |||
| Other Account receivable | Guangdong Meihe Expressway Co., Ltd. | 574.17 | |||
| Other Account receivable | Heyuan Helong Expressway Co., Ltd. | 467.14 | |||
| Other Account receivable | Guangdong Ninghua Expressway Co., Ltd. | 271.81 | |||
| Other Account receivable | Guangdong Hehui Expressway Co., Ltd. | 90.20 | |||
| Dividend receivable | Ganzhou Kangda Expressway Co., Ltd. | 21,000,000.00 | |||
| Dividend receivable | Guiyuan Securities Co., Ltd. | 11,940,297.90 | |||
| Other Non-Current Assets | Baoli Changda Engineering Co., Ltd. | 18,380,900.94 | 4,216,292.57 | ||
| Other Non-Current Assets | Guangdong Xinyue Traffic Investment Co., Ltd. | 823,423.25 | |||
| Other | Guangdong Hualu Traffic Technology | 796,711.00 | |||
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Non-Current Assets | Co., Ltd. | ||||
| Long-term amortization costs | Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd. | 1,168,273.16 | 1,221,781.88 | ||
（2）Payables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning |
| Account payable | Baoli Changda Engineering Co., Ltd. | 25,350,090.00 | 12,166,883.00 |
| Account payable | Guangdong Highway Construction Co., Ltd. | 25,630,651.00 | 25,630,651.00 |
| Account payable | Guangdong Expressway Co., Ltd. | 8,746,491.18 | 8,746,491.18 |
| Account payable | Guangdong Xinyue Traffic Investment Co., Ltd. | 1,829,141.32 | 1,829,141.32 |
| Account payable | Guangdong Union Electron Service Co.,Ltd. | 914,439.52 | |
| Account payable | Guangdong Litong Technology Investment Co., Ltd. | 772,350.00 | 1,631,800.00 |
| Account payable | Guangdong Guanghui Expressway Co., ltd. | 551,400.00 | 551,400.00 |
| Account payable | Guangdong Hualu Traffic Technology Co., Ltd. | 89,540.00 | 2,913,206.00 |
| Account payable | Guangzhou Xinyue Asphalt Co., Ltd. | 2,537,848.10 | |
| Account payable | Guangdong Maozhen Expressway Co., Ltd. | 124,012.02 | 120,000.00 |
| Interest payable | Guangdong Guanghui Expressway Co., Ltd. | 1,324,575.00 | 1,096,200.00 |
| Interest payable | Guangdong Jiangzhong Expressway Co., Ltd. | 39,150.00 | 43,065.00 |
| Other Payable account | Guangdong Guanghui Expressway Co., Ltd. | 134,979,941.98 | 45,000,000.00 |
| Other Payable account | Guangdong Zhongjiang Expressway Project Management Dept | 28,200,000.00 | 200,491.55 |
| Other Payable account | Baoli Changda Engineering Co., Ltd. | 14,612,208.16 | 11,346,061.22 |
| Other Payable account | Guangdong Union Electron Service Co.,Ltd. | 5,033,004.70 | 3,800,226.36 |
| Other Payable account | Guangdong Xinyue Traffic Investment Co., Ltd. | 1,679,918.51 | 1,779,918.51 |
| Other Payable account | Guangdong LHualu Traffic Technology Co., Ltd. | 370,887.88 | 786,185.88 |
| Other Payable account | Guangdong Kaiyang Expressway Co., Ltd. | 264,132.19 | |
| Other Payable account | Guangdong Litong Technology Investment Co., Ltd. | 232,127.70 | 203,655.20 |
| Other Payable account | Guangdong East Thinking Management Technology Development Co., Ltd. | 210,188.00 | 531,573.69 |
| Name | Related party | Amount at year end | Amount at year beginning |
| Other Payable account | Guangdong Jiangzhong Expressway Co., Ltd. | 149,269.03 | |
| Other Payable account | Guangdong Maozhan Expressway Co., Ltd. | 124,012.02 | |
| Other Payable account | Guangdong Xintai Expressway Co., Ltd. | 122,659.13 | |
| 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 Jingzhu Expressway Guangzhu North Section Co., Ltd. | 68,454.90 | 9,327.00 |
| Other Payable account | Guangdong Jiangzhao Expressway Management Center | 59,092.11 | 7,217.12 |
| Other Payable account | Guangdong Lulutong Co., Ltd. | 48,000.00 | 165,249.80 |
| Other Payable account | Guangdong Zhaoyang Expressway Co., Ltd. | 32,513.24 | 2,145.78 |
| Other Payable account | Guangdong Traffic Industry Investment Co., Ltd. | 23,026.67 | 2,347.68 |
| Other Payable account | Guangdong Yangmao Expressway Co., Ltd. | 21,402.56 | |
| Other Payable account | Guangdong Guangzhu West Line Expressway Co., Ltd. | 16,226.72 | |
| Other Payable account | Guangdong Expressway Co., Ltd. | 257,336.62 | 15,342.09 |
| Other Payable account | Guangdong Shenfen Expressway Co., Ltd. | 2,660.62 | 751.35 |
| Other Payable account | Guangshenzhu Expressway Co., Ltd. | 2,395.56 | |
| Other Payable account | Guangdong Yuedong Expressway Industry Development Co., Ltd. | 1,838.56 | 1,018.37 |
| Other Payable account | Guangdong Yunwu Expressway Co., Ltd. | 1,497.93 | |
| Other Payable account | Guangdong Tianshan Expressway Co., Ltd. | 640.96 | |
| Other Payable account | Guangdong Lluoyang Expressway Co., Ltd. | 500.75 | 319.21 |
| Other Payable account | Heyuan Helong Expressway Co., Ltd. | 352.54 | |
| Other Payable account | Guangdong Boda Expressway Co., Ltd. | 219.13 | 100.97 |
| Other Payable account | Guangdong Hehui Expressway Co., Ltd. | 32.93 | |
| Other Payable account | Guangdong Road & Bridge Construction Development Co., Ltd. | 5,572.94 | 551.99 |
| Other Payable account | Guangdong Highway Construction Co., Ltd. | 20,973.36 | 689.83 |
| Other Payable account | Guangdong Baomao Expressway Co., Ltd. | 3,206.11 | |
| Other Payable account | Guangdong Nanyue Traffic Yunzhan Expressway Management Center | 821.38 | |
| Other Payable account | Guangdong Nanyue Traffic Shaogan Expressway Management Center | 546.89 | |
| Other Payable account | Shenzhen Huiyan Expressway Co., Ltd. | 391.36 |
| Name | Related party | Amount at year end | Amount at year beginning |
| Other Payable account | Guangdong Nanyue Traffic Chaozhang Expressway Management Center | 282.67 | |
| Other Payable account | Guangdong Nanyue Traffic Renbo Expressway Management Center | 225.79 | |
| Other Payable account | Guangdong Pingxing Expressway Co., LTD. | 45.41 | |
| Other Payable account | Guangdong Jiangzhong Expressway Co., Ltd. | 36,000,000.00 | 36,000,000.00 |
7. Related party commitment
NilXIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet dateOn 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 governmentdepartment, 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 ProvincialSanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the total investmentof 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 30,2019, The accumulated expensesoccurred of Sanboto Shuikou Highway extension project was 1.945 billion yuan.
| No | Contract Counterparty | Economic Content | Contract Amount | Fulfilled as of June 30, 2019 |
| 1 | China Railway Tunnel Group Co., Ltd. | Civil Engineering | 251,026,485.00 | 220,694,631.00 |
| 2 | Boli Changda Engineering Co., Ltd. | Civil Engineering | 624,878,240.00 | 422,197,236.40 |
| 3 | China Railway 18th Bureau Group Co., Ltd. | Civil Engineering | 219,974,609.00 | 174,338,854.20 |
| 4 | CCCC First Navigation Engineering Bureau Co., Ltd | Civil Engineering | 355,014,108.00 | 256,524,868.12 |
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be statedNil
(3) Contingent liabilities relating to investments in joint ventures or associated enterprises
See Section 9, Rights and Interests in Other Subjects.
(4) Other contingent liabilities and their financial impact
As of June 30,2019,The company does not disclose the pension plan undisclosed matter should exist.
XV. Events after balance sheet date
1. Significant events had not adjusted
Nil
2.Profit distribution
Nil
3.Sales return
Nil
4.Notes of other significant event after balance sheet date
NilXVI. Other significant events
1.The accounting errors correction in previous period
Nil
2.Debt restructuring
Nil
3.Replacement of assets
Nil
4.Pension plan
Nil
5.Discontinuing operation
Nil
6. Segment information
The company's business for the Guangfo Expressway , the Fokai Expressway and Jingzhu Expressway GuangzhuSection toll collection and maintenance work, the technology industry and provide investment advice, no other
nature of the business, no reportable segment.
7.Other important transactions and events have an impact on investors decision-making
8.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 andAdministration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15"Jiujiang Bridge Collision Accident", initially determined the causes of the accident are: the incident shipsuddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain neglected looking out, did nottake proper measures and deviated from the main channel, touched the 325 National Road Jiujiang Bridge thenon-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an unilateralOn July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea ShippingCompany Limited and Yang Xiong to undertake the compensation 25,587,684 yuan for the loss caused bycollapsing of Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According tothe (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the 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 resumedthe proceedings. On December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case.Currently, Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide,therefore, on January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. On September 17,2013, the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings,the court decided to resume the trial. On December 19, 2013, the Guangzhou Maritime Court opened a courtsession, has not yet made the first-instance judgment. On March 7, 2014 the Court made the first instance verdict:
the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong compensated the plaintiff FokaiExpressway Co., Ltd. toll revenue losses of 19,357,500.96 yuan; the court dismissed the plaintiff other aspirations.The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong Provincial HigherPeople's Court ruled on June 5, 2014, the case discontinued proceedings. By the end of the report period, theabatement of action causes are already removed and the provincial higher court restores the hearing and conductsthe investigation on April 21, 2017.
(2)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial ExpresswayDevelopment Co., Ltd. was held of May 10, 2012. The meeting examined and adopted the proposal Concerningthe Company’s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. TheCompany was approved to accept the insurance bond investment plan made by Pacific Asset Management Co.,Ltd. The amount of proceeds to be raised is not more than 1.5 billion yuan . Floating interest rate plus guaranteed
base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate ofRMB loan with a term of over five years on the day when the investment fund of the insureance company istransferred into the Company’s account and the corresponding days of the future years, which shall be adjustedonce each year. The guaranteed base interest rate is 5.6%. The concrete amount of raised proceeds shall bewithin maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to theCompany shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan betweenPacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of theCompany to implement the above-mentioned matters.The Company was approved to provide counter guarantee to Guangdong Communication GroupCo.,Ltd.with 75% equity of Guangdong Fokai Expressway Co., Ltd. Held by it . as of December 31, 2016, thecompany has borrowed 1.5 billion yuan.
（3）The 19th (Provisional)Meeting of the Eighth board of directors of Guangdong Provincial ExpresswayDevelopment Co., Ltd. was held of August 7, 2018. The meeting examined and approved the Proposal on IssuingMedium-Term Notes，Agree that the company intends to register in the China Interbank Market DealersAssociation with a quota of not more than 3.4 billion yuan (inclusive), which is within 40% of the company'slatest audited net assets. Apply for a one-time or installment in a timely manner, with a term of no less than 5years (including 5 years), and raise funds to repay the loan and replenish working capital; The matter has beenpassed by the resolution of the first interim shareholders' meeting in 2018.On January 4, 2019, the dealers association issued a Notice of Acceptance of Registration (ZSXZ [2019]MTN 9). The amount of acceptance of the company's medium-term notes is 3.4 billion yuan, and the amount ofregistration is valid for 2 years from the date of receipt of the notice of acceptance, and it is jointly underwrittenby Industrial and Commercial Bank of China Limited and China Construction Bank Limited. The companyborrowed 680 million yuan on March 1, 2019.
(4) According to the Implementation Plan for Accelerating the Electronic Non-stop Quick Toll ApplicationServices on Expressways (Development and Reform Foundation [2019] No. 935) issued by the NationalDevelopment and Reform Commission and the Ministry of Transport and the Notice on Vigorously Promoting theDevelopment and Application of ETC on Expressways issued by the General Office of the Ministry of Transport,ETC users of expressway traffic vehicles shall strictly implement the basic preferential policies of not less than5% of the vehicle tolls since July 1, 2019, and at the same time, from January 1, 2020, adjust the mode of freighttoll charging, and uniformly charge by vehicle (axle) type.The above policies are expected to have an adverse impact on the Company's operating income, but the specificimpact has not yet determined.
XVII..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrual of bad debt provision by single item | ||||||||||
| Of which： | ||||||||||
| Accrual of bad debt provision by portfolio | 17,585,263.17 | 17,585,263.17 | 18,405,847.15 | 100.00% | 18,405,847.15 | |||||
| Of which： | ||||||||||
| Total | 17,585,263.17 | 17,585,263.17 | 18,405,847.15 | 100.00% | 18,405,847.15 | |||||
Accrual of bad debt provision by single item: NilAccrual of bad debt provision by portfolio:
Account receivable on which bad debt provisions are provided on age basis in the group：
In RMB
| Name | Balance in year-end | ||
| Receivable accounts | Bad debt provision | Withdrawal proportion | |
| Within 1 year | 17,585,263.17 | ||
| Total | 17,585,263.17 | - | |
Notes of the basis of recognizing the portfolio:
Provision for bad debts according to the age portfolio .Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 17,585,263.17 |
| Within 1 year | 17,585,263.17 |
| Total | 17,585,263.17 |
(2) Accounts receivable withdraw, reversed or collected during the reporting period
Nil
（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 | Proportion(%) | Bad debt provision |
| Guangdong Union Electronic Services Co., Ltd. | 17,585,263.17 | 100.00 | |
| Total | 17,585,263.17 | 100.00 |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivableNil
2.Other accounts receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Interest receivable | 32,460,868.78 | 1,880,148.12 |
| Dividend receivable | 34,145,770.80 | 1,205,472.90 |
| Other receivable | 6,077,481.50 | 6,238,161.64 |
| Total | 72,684,121.08 | 9,323,782.66 |
（1）Interest receivable
1）Interest receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Entrusted loan | 32,460,868.78 | 1,880,148.12 |
| Total | 32,460,868.78 | 1,880,148.12 |
2）Significant dividend receivable aged over 1 year
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
1)Dividend receivable
In RMB
| Items | Balance in year-end | Balance Year-beginning |
| Guangdong Radio and Television Networks investment No.1 Limited partnership enterprise | 1,205,472.90 | 1,205,472.90 |
| Ganzhou Kangda Expressway Co., Ltd. | 21,000,000.00 | |
| Gluoyuan Securities Co., Ltd. | 11,940,297.90 | |
| Total | 34,145,770.80 | 1,205,472.90 |
（2）Significant dividend receivable aged over 1 year
Nil3）Bad-debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Balance of settlement funds for securities transactions | 30,844,110.43 | 30,844,110.43 |
| Cash deposit | 1,953,995.00 | 1,930,943.00 |
| Petty cash | 1,581,352.00 | 1,605,100.00 |
| Other | 2,542,134.50 | 2,051,718.64 |
| Current account | 650,400.00 | |
| Total | 36,921,591.93 | 37,082,272.07 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2019 | 30,844,110.43 | 30,844,110.43 | ||
| Balance as at January 1, 2019 in current | —— | —— | —— | —— |
| Banlance as at June 30,2019 | 30,844,110.43 | 30,844,110.43 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 3,277,275.23 |
| Within 1 year | 3,277,275.23 |
| 1-2 years | 1,045,544.39 |
| 2-3 years | 897,839.00 |
| Over 3 years | 31,700,933.31 |
| 4-5 years | 463,491.88 |
| Over 5 years | 31,237,441.43 |
| Total | 36,921,591.93 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |
| Accrual | Reversed or collected amount | |||
| Account receivable with single major amount and withdrawal bad debt provision for single item | 30,844,110.43 | 30,844,110.43 | ||
| Total | 30,844,110.43 | 30,844,110.43 | ||
Of which the significant amount of the reversed or collected part during the reporting period :Nil
4)The actual write-off other accounts receivable: Nil
5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
| Name | Nature | Closing balance | Aging | Proportion of the total year end balance of the accounts receivable(%) | Closing balance of bad debt provision |
| Kunlun Securities Co.,Ltd | Securities trading settlement funds | 30,844,110.43 | Over 5 years | 83.54% | 30,844,110.43 |
| Guangdong Litong Real Estates Investment Co., Ltd. | Deposit | 1,505,864.00 | 2-3 years | 4.08% | |
| Petty cash | Petty cash | 1,340,000.00 | Within 1 | 3.63% |
| year | |||||
| Guangdong Expressway Co.,Ltd. | Entrustment management fee | 463,491.88 | 4-5 years | 1.26% | |
| Beijing Shibang Weilishi Property Management Service Co., Ltd. Guangzhou Branch | Deposit | 393,331.00 | Over 5 years | 1.07% | |
| Total | -- | 34,546,797.31 | -- | 93.57% | 30,844,110.43 |
(6) Accounts receivable involved with government subsidies
Nil
(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 accountsreceivableNilOther notes：
3. Long-term equity investment
In RMB
| Items | End of term | Beginning of term | ||||
| Book Balance | Impairment provision | Book value | Book Balance | Impairment provision | Book value | |
| Investment in subsidiaries | 1,533,665,008.81 | 1,533,665,008.81 | 1,533,665,008.81 | 1,533,665,008.81 | ||
| Investment in joint ventures and associates | 3,237,607,137.38 | 3,237,607,137.38 | 3,145,355,906.88 | 3,145,355,906.88 | ||
| Total | 4,771,272,146.19 | 4,771,272,146.19 | 4,679,020,915.69 | 4,679,020,915.69 | ||
（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 | ||||
| Guangzhou Guangzhu Traffic 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 | 1,533,665,008.81 | 1,533,665,008.81 |
（2）Investment to joint ventures and associated enterprises
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Guangdong Guanghui Expressway Co., Ltd. | 992,521,223.58 | 143,481,952.02 | 25,795,500.00 | 84,638,655.14 | 1,077,160,020.46 | ||||||
| ZhaoqingYuezhao Highway Co., Ltd. | 307,172,338.10 | 27,819,228.16 | 53,207,865.41 | 281,783,700.85 | |||||||
| Subtotal | 1,299,693,561.68 | 171,301,180.18 | 25,795,500.00 | 137,846,520.55 | 1,358,943,721.31 | ||||||
| II. Associated enterprises | |||||||||||
| ShenzhenHuiyan Expressway Co., Ltd. | 230,553,756.87 | 16,104,358.08 | 246,658,114.95 | ||||||||
| Guangdong Jiangzhong Expressway Co., Ltd. | 175,324,643.76 | 10,932,203.70 | 186,256,847.46 | ||||||||
| Ganzhou Kangda Expressway Co., Ltd. | 219,985,018.52 | 17,339,428.35 | 21,000,000.00 | 216,324,446.87 | |||||||
| Ganzhou Gankang Expressway Co., Ltd. | 209,995,910.71 | 4,937,249.59 | 214,933,160.30 | ||||||||
| Guangdong Yueke Technology Petty Loan Co., Ltd. | 219,693,558.27 | 7,188,376.76 | 226,881,935.03 | ||||||||
| Guoyuan Securities Co.,Ltd. | 790,109,457.07 | 9,910,201.43 | -470,449.14 | 11,940,297.90 | 787,608,911.46 | ||||||
| Subtotal | 1,845,662,345.20 | 66,411,817.91 | -470,449.14 | 32,940,297.90 | 1,878,663,416.07 | ||||||
| Total | 3,145,355,906.88 | 237,712,998.09 | -470,449.14 | 25,795,500.00 | 170,786,818.45 | 3,237,607,137.38 | |||||
4. Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 617,314,121.48 | 325,665,097.11 | 638,591,636.62 | 306,898,726.06 |
| Other | 5,812,395.87 | 3,525,577.41 | 37,302,631.12 | 3,411,961.26 |
| Total | 623,126,517.35 | 329,190,674.52 | 675,894,267.74 | 310,310,687.32 |
Whether implemented new revenue guidelines?
□ Yes √ No
Other notes：
5.Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Long-term equity investment income accounted by cost method | 670,160,115.89 | 621,221,266.51 |
| Long-term equity investment income accounted by equity method | 237,712,998.09 | 216,777,157.34 |
| Dividend income from investments in other equity instruments during the holding period | 38,528,868.23 | |
| Investment return on investments held to maturity during the holding period | 42,581,144.86 | |
| Interest income from debt investment during holding period. | 29,257,519.49 | |
| Total | 975,659,501.70 | 880,579,568.71 |
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Gains/Losses on the disposal of non-current assets | 10,537,743.77 | |
| Government grants recognized in the current period, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the country’s unified standards | 420,227.62 |
| Net amount of non-operating income and expense except the aforesaid items | -904,697.67 | |
| Less: .Amount of influence of income tax | -796,580.71 | |
| Amount of influence of minority interests | -597,222.81 | |
| Total | 11,447,077.24 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
| Profit as of reporting period | Weighted average ROE (%) | EPS（Yuan/share） | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to common shareholders of the Company | 7.53% | 0.35 | 0.35 |
| Net profit attributable to common shareholders of the Company after deduction of non-recurring profit and loss | 7.41% | 0.35 | 0.35 |
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
XII. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, ChiefFinancial officer and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well aspersonal signatures of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicalsdesignated by China Securities Regulatory Commission in the report period.