粤高速B:2017年半年度报告(英文版)

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Guangdong Provincial Expressway

Development Co., Ltd.

The Semi-Annual Report 2017

August 2017

1

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

I. Important Notice, Table of Contents and Definitions

The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of the

Company hereby warrant that at the year , there are no misstatement, misleading representation or important

omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness

of the contents hereof.

Mr.Zhen Renfa, Compant principal , Mr. Wang Chunhua, General Manager ,Mr.Fang Zhi, Chief of the accounting

owrk, Ms.Zhou Fang, Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity and

completeness of the financial report enclosed in this Semi-annual report.

All the directors have attended the meeting of the board meeting at which this report was examined.

The toll revenues of Expressway is main source of the major business income of the company , The charge

standard of vehicle toll must be submitted to the same level people's government for review and approval after the

transport regulatory department of province, autonomous region or municipality directly under the central

government in conjunction with the price regulatory department at the same level consented upon examination.

Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the

future price level when the cost of the company rises still depend on the approval of relevant national policies and

government departments, and the company isn't able to make timely adjustment to the charge standard in

accordance with the its own operation cost or the change of market supply demand. So, the change of charge

policy and the adjustment of charge standard also have influence on the expressways operated by the company to

some extent. So, the charging policy changes and charges adjustment will affect the highways operation of the

company.

The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Table of Contents

I. Important Notice, Table of Contents and Definitions

II. Corporate Profile and Key Financial Indicators

III. Business Profile

IV. Performance Discussion and Analysis

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Situation of the Preferred Shares

VIII .Information about Directors, Supervisors and Senior Executives

IX. Corporate Bonds

X. Financial Report

XI. Documents available for inspection

3

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Definition

Refers

Terms to be defined Definition

to

Refers January 1, 2017 to June 30,2017

Reporting period, This year

to

Refers The semi annual report of the company was approved by the board of

Reporting date

to directors on 2017, that is, August 28, 2017

Refers

YOY Compared with January-June 2016

to

Refers

The Company /This Company Guangdong Provincial Expressway Development Co.,Ltd.

to

Refers

Province Expressway Guangdong Province Expressway Co., Ltd.

to

Refers

Construction Company Guangdong Highway Construction Co., Ltd.

to

Refers

Technology Company Guangdong Expressway Technology Investment Co., Ltd

to

Refers

Fokai Company Guangdong Fokai Expressway Co., Ltd.

to

Refers

Guangfo Company Guangdong Guangfo Expressway Co., Ltd.

to

Refers

Guangzhu East Company Jingzhu Expressway Guangzhu Section Co., Ltd.

to

Guangdong Provincial Expressway Development Co., Ltd. (2015-2016)

Refers

Major assets restructuring issued shares and paid cash to purchase assets and raise matching funds

to

and related transactions

4

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

II. Corporate Profile and Key Financial Indicators

1.Company Information

Stock abbreviation: Expressway A, Expressway B Stock code: 000429、200429

Stock exchange for listing Shenzhen Stock Exchange

Name in Chinese 广东省高速公路发展股份有限公司

Abbreviation of Registered

粤高速

Company (if any)

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

English abbreviation (If any) GPED

Legal Representative \Zhen Renfa

2. Contact person and contact manner

Board secretary Securities affairs Representative

Zhen

Name Renfa(Chairman of the Board of Directors Liang Jirong

acting on behalf of the Secretary)

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

Contact address Road, Zhujiang New City, Tihe Disrtict , Road, Zhujiang New City, Tihe Disrtict ,

Guangzhou Guangzhou

Tel 020-29004619 020-29004523

Fax 020-38787002 020-38787002

E-mail zhengrenfa0429@sina.com 139221590@qq.com

3. Other

1. Way of contact

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

reporting period or not

□ Applicable √ Not applicable

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

reporting period, found more details in annual report 2016.

2. Information inquiry

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

□ Applicable √ Not applicable

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

please find the Annual Report 2016.

5

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

4. Summary of Accounting Data and Financial Indicators

Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.

□ Yes √No

Same period of last

Reporting period YoY+/-(%)

year

Operating income(RMB) 1,440,222,563.74 1,333,492,179.77 8.00%

Net profit attributable to the shareholders of the

892,848,012.53 505,899,144.29 76.49%

listed company(RMB)

Net profit after deducting of non-recurring

gain/loss attributable to the shareholders of 641,933,600.43 356,881,714.84 79.87%

listed company(RMB)

Cash flow generated by business operation, net

1,022,392,235.37 932,882,829.38 9.59%

(RMB)

Basic earning per share(RMB/Share) 0.43 0.29 48.28%

Diluted gains per

0.43 0.29 48.28%

share(RMB/Share)(RMB/Share)

Weighted average income/asset ratio(%) 10.55% 8.39% 2.16%

As at the end of the As at the end of last

YoY+/-(%)

reporting period year

Gross assets(RMB) 16,073,707,033.01 16,072,445,216.59 0.01%

Shareholders’ equity attributable to shareholders

8,403,487,736.14 8,289,020,301.39 1.38%

of the listed company(RMB)

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

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

in the financial reports of differences in net income and net assets.

□ Applicable□√ Not applicable

Nil

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

accounting standards.

□ Applicable √Not applicable

Nil

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

√Applicable □Not applicable

6

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

In RMB

Items Amount Notes

Non-current asset disposal gain/loss(including the write-off part

-2,629,016.43

for which assets impairment provision is made)

It receives the compensation

59,995,667.68 yuan for early termination

Other non-business income and expenditures other than the above 61,828,620.75

of charging for Jiujiang Bridge in the

current period.

The department confirms the deferred

income tax totaling 206,421,769.46 yuan

Less: Amount of influence of income tax -191,689,368.44

for losses of previous years in the current

period.

Amount of influence of minority interests(after tax) -25,439.34

Total 250,914,412.10 --

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

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

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

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

recurring gains and losses, it is necessary to explain the reason.

□ Applicable√ Not applicable

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

disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

III. Business Profile

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

Whether the company needs to comply with the disclosure requirements of the particular industry

No

The Company is an infrastructure industry, with main business in developing and operating expressway and big

bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway

System. The expressway industry is the industry helped by government.

The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and

Jingzhu Expressway Guangzhu Section investment in technological industries and provision of relevant

consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co.,

Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Ex

pressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.and

Guangdong Guangle Expressway Co.,Ltd. As of the end of the reporting period, the company’s share-controlled

expressway is 158.12 km, and the share-participation expressway is 684.20 km, and according to the equity ratio,

after the conversion calculation, the total mileage is 273.05 km.

Ⅱ.Major Changes in Main Assets

1. Major Changes in Main Assets

Main assets Major changes

The increase of 2.84% by the end of the period compared with that of the beginning is

Equity assets mainly due to the comprehensive influence of the operation accumulation and profits

distribution of participant companies.

The decrease of 4.43% by the end of the period compared with that of the beginning is

Fixed assets

mainly due to the influence of the company depreciation accrual mainly.

The decrease of 29.58% by the end of the period compared with that of the beginning is

Intangible assets

mainly due to the influence of the intangible assets amortization mainly.

The increase of 35.71% by the end of the period compared with that of the beginning is

Construction in process

mainly due to the influence of the Southern section expansion of Fokai company mainly.

The increase of 1960.95% by the end of the period compared with that of the beginning

is mainly due to that the parent company confirms the deferred income tax assets through

Deferred income tax assets

prediction of using the taxable income for coverage of previous years’ losses in the

future.

2. Main Conditions of Overseas Assets

□ Applicable √ Not applicable

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Ⅲ.Analysis On core Competitiveness

Whether the company needs to comply with the disclosure requirements of the particular industry

No

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

regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokai

expressway, controlled by the company, are part of the National Expressway Network Planning-“Five vertical and

seven horizontal”, The share-controlled Beijing-Zhuhai Guangzhu Section Expressway is a fast and convenient

expressway.and many of the company’s equity-participation expressways that are part of the main skeleton of the

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

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

as Guangdong province is the economically developed region, with years’ continuous high growth of GDP, so that

provides the stable rising demand for the company.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

IV. Performance Discussion and Analysis

Ⅰ.General

In the first half of 2017, the company, according to the annual business plan established by the board of

directors, soundly did a good job of each work:

1. Continuously deepened the operation and management, simultaneously adopted many measures, and

ensured the completion of the work goal of ensuring the smooth traffic, ensuring security and ensuring income. In

the first half of 2017, the main business income was RMB 1.44 billion, up by 8.03% over the same period of last

year, meaning 46.68% of the annual plan was completed; and the operating costs was RMB 534 million, a

decrease of 4.47% from the same period last year, representing completed 42.72% of the annual plan.

2. Steadily advancing the merger and consolidation matter of Fokai Company, and as of the date of this report,

Guangdong Provincial Expressway Development Co., Ltd Fokai Branch Company had been set up and the

relevant industrial and commercial registration procedures were completed, hence the management work of Fokai

Expressway was formally transferred to the Fokai Branch Company from the Fokai Company.

3. Approved by the 11th meeting (provisional) of the 8th term Board of Directors, the Company invested RMB 4.5

million to set up the wholly-owned subsidiary to carry out the equity investment business, thus to prominently

strength the cooperation with the strategic investors and to seek new equity investment projects, with a goal of

share-control, so as to grasp the good equity investment opportunities and to gradually perfect the company's asset

layout in financial and similar financial filed.

4. Guangdong Provincial Expressway Development Co., Ltd Resource Development Branch Company was

incorporated and registered by the company in order to promote the development of commercial resources such as

lands along the highways under share-control by the company.

II.Main business analysis

General

The Company is an infrastructure industry, with main business in developing and operating expressway and big

bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway

System. The expressway industry is the industry helped by government.

In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of

the Company are as follows:

Volume of vehicle Increase Toll income in the first Increase

traffic in the first /Decrease(%) half year of 2017 /Decrease(%)

half year of (RMB’0000)

2017( vehicles)

Guangfo Expressway 29,100,569 9.50% 19,879.86 4.17%

Fokai Expressway 27,969,945 16.70% 58,924.50 3.51%

Jingzhu Expressway 35,362,654 17.21% 62,042.30 14.56%

Guangzhu East Section

Huiyan Expressway 18,279,214 7.24% 11,154.81 5.08%

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Guanghui Expressway 25,119,239 17.10% 84,633.89 5.69%

Yuezhao Expressway 13,540,362 -5.42% 24,529.10 -15.41%

Jiangzhong Expressway 25,033,807 22.53% 21,684.65 10.49%

Kangda Expressway 1,269,793 6.92% 12,120.85 4.91%

Gangkang Expressway 1,379,527 19.12% 6,458.55 -11.83%

Overall situation: except the Yue Zhao Expressway and Gan Kang Expressway recorded a negative growth,

the rest maintained various extents of growth compared to the same period last year, thereinto GuangZhudong and

Jiang Zhong section had a growth rate more than 10%, and Guangfo, Fokai, Guanghui, Huiyan and Kangda had a

growth rate around 5%.

1. For Guangfo area, the personnel and materials transportation are more closely related, the surrounding real

estate supporting was good, and the demand for logistics and transportation has been increased, thus the vehicle

flow increased.

2. Since the completion of expansion of Fokai Expressway in 2012, it has entered a stable growth period, and

the small vehicle flow maintained a sustained growth momentum, with a relatively fast growth of short-distance

vehicles.

3. Due to the impact of Bridge Closure of Hong Qili bridge of Fan Zhong Highway (S111), the vehicle flow

of the section between the Xiang Lingshan station to the Sanjiao Station of Guuang-Zhu-Dong Expressway

increased, thus it had an obvious increase of toll revenue. Furthermore, the opening of Jiangluo Expressway has a

positive impact on its vehicle flow growth.

4. The completion of the Extension of Huizhou section of Hui Yan Expressway-that is connected to Hui Yan

Expressway-and it's opening to traffic had a positive impact on the vehicle flow of Hui Yan Expressway, plus the

natural growth of the traffic volume, so those had a positive impact on the toll revenue.

5. Guanghui Expressway has been benefiting from the surrounding road network connectivity, so several toll

stations in Lianhui, Huiwan and Boshen had large percentage increase of traffic flow, but there was an increasing

obvious tendency that the growth of traffic flow and the revenue growth did not grow in same pace, which

indicated that the short distance traffic increased.

6. The Jangzhong Expressway's traffic flow and toll revenue growth were mainly caused by the positive

impact brought by the opening to traffic of Zhongjiang phase 1 and Jiang Luo Expressway and the second phase

maintenance of Shakou Bridge and Shijiao Bridge of 105 State Road of February 25, 2017.

7. The YueZhao Expressway had a decrease in toll revenue that caused by the following reasons: (1)

affecting by the opening of the periphery Jiang Luo Expressway and Guangfo Expressway, the toll revenue

decreased; (2) The implementation of temporary traffic control measures-namely restricting the passage of large

trucks-at Baitu toll station exit at Zhaoqing Bridge and the expansion and relocation project of Ziyun road had a

negative impact.

8. Affecting by the full opening to traffic of Xunquan Expressway from the end of October 2015 and

connection between Jiangxi Ruixun section and Guangdong Ping Xing section from the end of 2015, the traffic

flow of Gan Kang Expressway was affected, resulting in a decrease in toll revenue compared to the same period

last year.

Year-on-year change of main financial data

In RMB

This report Same period last year YOY Cause change

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

period change

(%)

Mainly due to the growth of Guangfo, Fokai and

Operating income 1,440,222,563.74 1,333,492,179.77 8.00%

Guangzhu East Company Toll revenue

It is due to the comprehensive influence of the

following factors mainly: (1) Guangfo company

accrues the depreciation of the road property

Operating cost 533,689,845.16 558,947,473.08 -4.52%

sufficiently and the depreciation decreases on

year-on-year basis; (2) the depreciation cost

increases due to the toll revenue increase.

Administrative expenses 77,693,914.84 79,766,582.60 -2.60%

Reducing interest-bearing debt led to an decrease

Financial expenses 133,804,359.02 190,618,235.21 -29.81%

in interest expense

It is due to the comprehensive influence of the

following factors mainly: (1) the parent company

confirms the deferred income tax assets through

Income tax expenses -19,940,081.98 157,332,820.43 -112.67% prediction of using the taxable income for

coverage of previous years’ losses in the future and

reduces the income tax; (2) the current period

income tax is increased due to the total profits.

The R&D Blue Channel project of the scientific

R & D Investment 3,249,337.10 790,927.27 310.83%

and technical company increases the R&D input.

Cash flow generated by Mainly due to toll revenue increase brought the

1,022,392,235.37 932,882,829.38 9.59%

business operation, net increased cash flow from operating activities

It is mainly due to the purchase in cash of 25%

stock rights of Fokai company possessed by the

Net cash flow generated provincial expressway and Guangzhudong’s debt

-3,331,892.02 -1,656,094,323.59 -99.80%

by investment obligations for the construction company upon

execution of the major assets reorganization

scheme in the previous period.

It is due to the comprehensive influence of the

following factors mainly:(1)The implementation

Net cash flow generated -1,027,513,171.7

1,201,696,913.84 -185.51% of major asset restructuring and increase raise

by financing 2

funds On the previous period;(2)Repayment of

interest bearing debt increased this year.

Net cash from operating activities by the inflow

Net increasing of cash

-7,005,743.86 477,962,215.77 -101.47% and outflow from investing activities due to the

and cash equivalents

combined effects

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

□ Applicable √Not applicable

Nil

12

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Breakdown of main business

In RMB

Increase/decrease Increase/decrease

Increase/decrease

of principal of gross profit

of reverse in the

Operating Gross profit business cost over rate over the

operating costs same period of

revenue rate(%) the same period same period of

the previous

of previous year the previous year

year(%)

(%) (%)

Industry

Highway

1,408,466,588.54 517,959,767.95 63.23% 8.20% -4.15% 4.74%

transportations

Other 10,253,399.72 5,496,516.45 46.39% 16.27% -25.28% 29.81%

Product

Highway

1,408,466,588.54 517,959,767.95 63.23% 8.20% -4.15% 4.74%

transportations

Other 10,253,399.72 5,496,516.45 46.39% 16.27% -25.28% 29.81%

Area

Guangfo

198,798,562.69 59,781,669.06 69.93% 4.17% -49.62% 32.10%

Expressway

Fokai

589,245,049.58 291,140,555.41 50.59% 3.51% 10.78% -3.25%

Expressway

Jingzhu

Expressway 620,422,976.27 167,037,543.48 73.08% 14.56% 5.11% 2.42%

Guangzhu section

Other 10,253,399.72 5,496,516.45 46.39% 16.27% -25.28% 29.81%

III.Non-core business analysis

√ Applicable □Not applicable

In RMB

Whether be

Amount Ratio in total profit Note

sustainable

It is due to the operation accumulation of

Investment income 223,430,364.44 23.02% Yes

participant companies

Changes in fair

0.00%

value

It is due to the provision of impairment for

Asset impairment 196,581.08 0.02% No

receivables surplus and aging changes

13

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

It is due to the receiving of the compensation

Non-operating 59,995,667.68 yuan for early termination of

62,299,078.58 6.42% No

income charging for National Highway No. 325 Jiujiang

Bridge mainly

Non-operating

3,099,474.26 0.32% It is due to the asset scrapping mainly No

expenses

IV.Analysis of assets and liabilities

1.Significant changes in asset composition

In RMB

End of Reporting period End of same period of last year

As a Change in

percentage of percentag Reason for significant change

Amount

total e(%)

assets(%)

Monetary fund 2,596,273,900.39 16.15% 2,603,279,644.25 16.20% -0.05%

Accounts

81,861,655.16 0.51% 40,681,197.01 0.25% 0.26%

receivable

Inventories 323,888.89 0.004% 323,888.89 0.004% 0.00%

Real estate

2,987,864.38 0.02% 3,219,971.08 0.02% 0.00%

Investment

mainly due to the comprehensive

Long-term equity influence of the operation

2,283,902,186.05 14.21% 2,220,805,130.31 13.82% 0.39%

investment accumulation and profits distribution of

participant companies

It’s due to the influence of the

Fixed assets 8,874,578,467.58 55.21% 9,285,823,302.77 57.77% -2.56%

company depreciation accrual mainly

Construction in It’s due to the influence of Foai to

202,539,473.20 1.26% 149,244,110.30 0.93% 0.33%

process Shukou section expansion mainly

Short-term loans 0.00% 0.00% 0.00%

Long-term loans 5,110,950,000.00 31.80% 5,402,780,000.00 33.62% -1.82% It is due to the repayment of debts

2.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

In RMB

Opening Gain/Loss on Cumulative fair Impairment Purchanased Sold amount in

Items Closing mount

amount fair value value change provisions in amount in the the reporting

14

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

change in the recorded into the repoting reporting period

reporting equity period period

period

Financial assets

3.Available-for

-sale financial 919,846,831.04 32,935,692.16 326,416,234.80 952,782,523.20

assets

Subtotal of

919,846,831.04 32,935,692.16 326,416,234.80 952,782,523.20

financial assets

Total of the

919,846,831.04 32,935,692.16 326,416,234.80 952,782,523.20

above

Financial

0.00 0.00

liabilities

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

period?

□ Yes √No

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

3. Assets right restriction till end of reporting period

As of June 30, 2017, the Company's holding subsidiary- Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd made the expressway toll right of Panyu Tang

Keng to Zhuhai Jinding section project of Beijing-Zhuhai Expressway as the pledge for a pledge guarantee to the loan of RMB 729,000,000.00 (thereinto, the balance

of non-current liabilities due within one year was RMB 280,000,000.00 and the balance of long-term borrowings was RMB 449,000,000.00) from Commercial Bank

of China Guangzhou Wuyang Sub-branch.

V.Investment situation

1. General

√ Applicable □ Not applicable

Investments made in same period of last

Investments made in the reporting period +/- %

year

51,617,786.58 3,271,920,597.80 -98.42%

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

□ Applicable √ Not applicable

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

√ Applicable □ Not applicable

In RMB

Accum Reasons

Industry in

Fixed Investment Accumulated actual ulated for

Form of which the Estimat Date of

assets amount during amount invested as Progres realized failure Disclosure Index(If

Name investme investment Source of und ed Disclosure(If

investme the reporting of the end of s return in any)

nt project return any)

nt or not period reporting period as of meeting

operates

the end schedul

16

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

of the ed

end of progres

the s and

reportin estimate

g period d return

Announcement of the

Sanbao To 29th

Shuikou (Provisional) Meeting

Section Self Yes Expressway 51,617,786.58 559,681,317.58 elf and Borrowing 16.34% Nil June 17,2016 of the seventh Board

Extension of Directors,

project Announcement of

External Investment

Total -- -- -- 51,617,786.58 559,681,317.58 -- -- 0.00 0.00 -- -- --

4.Investment of Financial Asset

(1)Securities investment

√ Applicable □ Not applicable

Purchas

Mode of Sale

Book value e Book value

Stock accounti Changes in fair Cumulative fair amount Sauce of

Security Security Initial balance at the amount Gain/loss of the balance at the end Accounting

Abbreviati ng value of the value changes in in the the

category code investment cost beginning of the in the reporting period of the reporting items

on: measure this period equity this shares

reporting period this period

ment period

period

Domesti Financial

Domestic

c and assets

601818 and foreign 517,560,876.80 FVM 919,846,831.04 32,935,692.16 326,416,234.80 23,054,984.51 952,782,523.20 Self

foreign available for

stocks

stocks sale

17

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Total 517,560,876.80 -- 919,846,831.04 32,935,692.16 326,416,234.80 0.00 0.00 23,054,984.51 952,782,523.20 -- --

Disclosure Date of

Announcement on Securities

July 22, 2009

Investment Approved by the

Board of Directors

Disclosure Date of

Announcement on Securities

August 7,2009

Investment Approved by the

Shareholders Meeting(If any)

(2)Investment in Derivatives

□ Applicable √ Not applicable

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

18

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

VI. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable

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

2.Sales of major equity

□ Applicable √ Not applicable

19

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

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

√ Applicable □ Not applicable

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

In RMB

Company Company Sectors Registered Total Operating Income Operating profit

Leading products and services Net assets (RMB) Net Profit (RMB)

Name type engaged in capital assets(RMB) (RMB) (RMB)

Management of the Fokai Expressway

and its matching salvation, maintenance

cleaning, auto parts supply services; the

maintenance and management of Jiujiang

Bridge of Guangzhan Expressway and car

Guangdong salvation and maintenance (operated by RMB

6,861,865,596

Fokai Subsidiary its subsidiaries); sales of industrial Expressway 1.108 3,861,467,719.99 593,321,339.10 221,137,015.06 209,763,661.11

.10

Expresswa production materials (not containing gold, billion

silver, automobile and dangerous

chemicals), building materials,

department stores, needles, textiles,

hardware, alternating current; parking

services.

Operating Guangfo Expressway Co., Ltd.(starts

Guangfo RMB 200 487,137,113.1

Subsidiary from Hengsha, Guangzhou, ends in Xiebian, Expressway 453,427,169.62 201,131,785.00 129,551,750.04 98,378,474.42

Expressway million 4

Foshan. Total length 15.7 kilometers

Guangzhu

Traffic

Highway investment management and RMB 3 3,546,576,488

Investment Subsidiary Expressway 1,604,701,175.74 631,857,976.08 392,201,443.64 293,273,313.76

consultation; highway maintenance million .62

Managemen

t Co., Ltd.

20

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Jingzhu

The operation and management of

Expressway

Guangzhou-Zhuhai Expressway and provision of RMB 580 3,540,907,882

Guangzhu Subsidiary Expressway 1,599,205,894.74 631,857,976.08 391,032,837.78 292,278,032.76

supporting services including fueling, salvage million .76

Section Co.,

and supply of parts and components

Ltd.

Investment in and construction of Guanghui

Expressway Co., Ltd. and supporting facilities,

Guangdong the toll collection and maintenance management

RMB

Guanghui Sharing of Guanghui Expressway, The Guanghui 4,937,552,137

Expressway 2.352 3,369,966,511.06 856,966,099.09 566,457,964.33 427,632,054.17

Expressway company Expressway's supporting gas station, .54

million

Co., Ltd. salvation, vehicle maintenance, vehicle

transport, catering, warehousing

investment and development

Subsidiaries obtained or disposed in the reporting period

□ Applicable √ Not applicable

21

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Particulars about the Mutual holding companies

1. Guangdong Provincial Fokai Expressway Co. Ltd which is one of the subsidiaries majority-controlled by the

company and the subsidiary mainly engaged in operating and managing the Fokai Expressway and the related

matching businesses such as rescue, maintenance, cleaning and spare parts supply service. The net profits in the

current period increased RMB 10.6103 million compared with the last period, computed in percentage as an

increase of 5.33%. The main reason for the increase was the combined effect of the natural increase of the toll

revenue and the reduction of the financial costs.

2. The main reason for the increase was the combined effect of the natural increase of the toll revenue and the

reduction of the financial costs. The net profits in the current period increased RMB 65.0501 million and 28.63%

compared with the last period,

The main reason for the increase is the following factors: (1) Due to the impact of some vehicle circumventing to

take the way of Guang-Zhu Section of Beijing-Zhuhai Expressway because of Bridge Closure of Hong Qili bridge

of Fan Zhong Highway (S111), that section of the highway got an increase of traffic volume, so the toll revenue of

Guuang-Zhu-Dong Expressway increased; (2) the natural growth of toll income; (3) the interest-bearing debt

repayment led to reduced financial costs.

3.The Company holds a 75% equity interest in the Guangfo company, the construction and operation of the

Guangzhou-Foshan Expressway, including road maintenance, charges, signs, marking and other transport facilities

maintenance, Vehicle rescue and other business. The current net profit increased by RMB57.2987 million, an

increase of 139.48%, the increasing is due to natural income growth and financial costs to reduce the combined

impact.

The main reason for the increase is the combined effect of the following factors: (1)the natural growth of toll income;

(2) The depreciation of Guangfo Expressway has been fully drawn in the current reporting period, so that led to a

decrease in depreciation.

22

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

VIII.Structured vehicle controlled by the Company

□ Applicable √ Not applicable

IX. Prediction of business performance for January -September 2017

Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss

probably or the warning of its material change compared with the corresponding period of the last year and

explanation of reason.

X.Risks facing the Company and countermeasures

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

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

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

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

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

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

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

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

of the company to some extent.

23

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

V. Important Events

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

1.Annual General Meeting

Investor

Index to disclosed

Meeting Type participati Convened date Disclosure date

information

on ratio

Annual

2016 Shareholders’ general

Shareholders’ 68.94% April 28,2017 April 29,2017 www.cninfo.com.cn

meeting

General Meeting

2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.

□Applicable√Not applicable

II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period

□ Applicable √Not applicable

For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital

reserve into share capital.

24

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company,

shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.

√ Applicable □ Not applicable

Time of

Commitment Period of

Commitment Type Contents making Fulfillment

maker commitment

commitment

Commitment on share reform

Commitment in the acquisition report

or the report on equity changes

Guangdong Provincial Traffic Group Co., Ltd committed: Within 1 year Change the

Within 1 year

Guangdong from the date of completion of the assets restructuring, it shall hire time limit for

from the date

Commitment made upon the assets Communicati Other professional institutions to sort out, prepare documents required for January 19, the

of completion

replacement on Group Co., commitment registration of ownership and complete the registration procedure of 2016 completion of

of the assets

Ltd. ownership of the relevant lands of Beijing Zhuhai Expressway Guang Zhu the

restructuring

Section Co., Ltd-that are located in Guangzhou City and Zhuhai city. undertaking

Commitments made upon first

issuance or refinance

Equity incentive commitment

Other commitments for medium

andsmall shareholders

Implemented or not(Y/N) No

Where the commitment is overdue Through the deliberation and approval of the 11th temporary meeting of the 8th Board of Directors and the 1st temporary general meeting of

and has not been fulfilled, then the shareholders in 2017, it agrees on the change of Guangdong Traffic Group Co., Ltd. commitments about relevant land and housing handling the

specific reasons for the failure to ownership registration procedures of the asset reorganization subject Guangdong Fokai Expressway Co., Ltd. and Jingzhu Expressway Guangzhu Section

complete and the next work plan shall Co., Ltd. among major assets reorganization for which, the company issues shares, pay for assets purchase in cash and collect the supporting capital in

be specified 2016. The same above is changed into that to speed up the certificate handling and to complete handling of relevant ownership registration procedures

25

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

related to the land and housing within 3 years after such major assets reorganization, among which, the ownership registration procedures of the relevant

land and housing (excluded by relevant governmental confirmation letters) of Guangzhudong company in Guangzhou and Zhuhai administrative regions,

which are not equipped with the ownership certificates, shall also be completed within the same time above. Refer to the Announcement on the

Completion Progress Condition of the Major Assets Reorganization Commitments and the Completion Period of the Dominant Shareholder’s Application

for Changing Partial Commitments and Announcement of the Resolution of the 11th Session (Temporary) of the 8th Board of Directors on July 4, 2017

and the Announcement of the Resolution of the 1st Temporary General Meeting of Shareholders on July 20, 2017 of the company on Securities Times,

China Securities Journal and Shanghai Securities News for details about the partial commitments change.

26

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

IV. Particulars about engagement and disengagement of CPAs firm

Whether the semi-annual financial report had been audited?

□ Yes √ No

Not been audited.

V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued

by CPAs firm for the reporting period

□ Applicable √ Not applicable

VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year

□ Applicable √ Not applicable

VII. Bankruptcy and restructuring

□ Applicable √ Not applicable

No such cases in the reporting period.

27

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

VIII. Legal matters

Signifieant lawsuits or arbitrations

□ Applicable √ Not applicable

No such cases in the reporting period.

Other legal matters

√ Applicable □ Not applicable

Litigation

Amount Litigation

Litigation (arbitration)

involved Forming of the (arbitration) Date of Index of

Basic conditions of litigation (arbitration) (arbitration) judgement

(RMB’0000 predicted debt judgement result disclosure disclosure

progress execution

) and influence

condition

On August 22, 2007, Guangdong Fokai Expressway Co., Ltd. filed a lawsuit

with Guangzhou Maritime Court officially requiring Foshan Nanhai Yuhang

Shipping Co., Ltd. and Yang Xiong to undertake the joint and several liabilities

for the toll losses of Fokai company due to the Jiujiang collapse. On March 7,

No major

2014, the court made the first instance judgement requiring the defendants Waiting for

influence on the

Foshan Nanhai Yuhang Shipping Co., Ltd. and Yang Xiong to compensate the the court

1,935.75 No company asset None

defendant Guangdong Fokai Expressway Co., Ltd. jointly for the vehicle toll judgement

conditions and the

revenue loss totaling 19,357,500.96 yuan. Guangdong Higher People's Court result

operation results.

entered a judgement on June 5, 2014 and the lawsuit terminated. By the end of

the report period, the abatement of action causes are already removed and the

provincial higher court restores the hearing and conducts the investigation on

April 21, 2017. Now it’s still the time waiting for the court judgement.

On June 12, 2009, the 6.15 accident-causing boat owner Yang Xiong filed a During No major

lawsuit with Guangzhou Maritime Court requiring Fokai company to abatement influence on the

compensate for the boat loss and interest totaling 7.28 million yuan. On 728.00 No of action by company asset None

December 20, 2013, the court made the first instance judgement rejecting all the second conditions and the

litigation claims of Yang Xiong. He filed a lawsuit with Guangdong Higher instance operation results.

28

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

People's Court against such sentence above, and the second instance terminated

the lawsuit in May 2015. By the end of the report period, the lawsuit is still

suspended without any notice from the provincial higher court.

No major

In August 2016, Tang Jiannan filed a lawsuit with the People’s Court in Yuexiu Waiting for

influence on the

District of Guangzhou city requiring the court to verify the ownership of about the court

6.5 No company asset None

7,734 shares of YGS Share A and corresponding interest under the name of judgement

conditions and the

Yang Yiming. result

operation results.

29

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

IX. Punishments and rectifications

□ Applicable √ Not applicable

No such cases in the reporting period.

X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller

□ Applicable √ Not applicable

XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees

□ Applicable √ Not applicable

No such cases in the reporting period.

XII.Material related transactions

1. Related transactions in connection with daily operation

□ Applicable √ Not applicable

No such cases in the reporting period.

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

□Applicable √ Not applicable

No such cases in the reporting period.

3. Related-party transitions with joint investments

□Applicable √ Not applicable

No such cases in the reporting period.

4. Credits and liabilities with related parties

√ Applicable □Not applicable

Whether has non-operational contact of related liability and debts or not

□ Yes √ No

No such cases in the reporting period.

5. Other significant related-party transactions

√ Applicable □Not applicable

(1)The 7th meeting of the Eighth board of directors of the Company examined and adopted the Proposal

for Renewing the Lease of Litong Plaza as Office Building. Agreed to continue to leasing the full floor of 44th

floor and the full floor unit of 43th floor (self-directed the full floor of 46th floor and the full floor unit of 45th floor)

30

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

of Litong Plaza planning floor of Guangdong Litong Property Investment Co., Ltd as the office use, with the time

from May 5, 2017 to May 4, 2020. The monthly rent standard in the period from May 5, 2017 to May 4, 2018 is

RMB 735,092, and the monthly rent standard in the period from May 5, 2018 to May 4, 2020 is RMB 771,847.

During the lease period, RMB 147,387 will be paid to the Guangzhou branch of Beijing Shibang Property

Management Service Co., Ltd every month.

2. The Proposal about the Daily Related Transaction of 2017 of the Company was examined and approved in

the 7th meeting of the 8th session of the Board of Directors, agreed that the company and its wholly-owned

subsidiaries and holding subsidiaries had the total transaction amount of RMB 58.6903 million.

The website to disclose the interim announcements on significant related-party transactions

Date of disclosing provisional Description of the website for disclosing

Description of provisional announcement

announcement provisional announcements

Related transaction announcement March 31,2017 www.cninfo.com.cn

Announcement of related party transactions of

March 31,2017 www.cninfo.com.cn

2017

XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other

related parties of the Company

□Applicable √ Not applicable

The company was not involved in the non-operating occupation of funds by the controlling shareholder and other

related parties during the reporting period.

XIV. Significant contracts and execution

1.Entrustments, contracting and leasing

(1)Entrustment

□Applicable √ Not applicable

No such cases in the reporting period.

(2)Contracting

□Applicable √ Not applicable

No such cases in the reporting period.

(3)Leasing

□Applicable √ Not applicable

No such cases in the reporting period.

31

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

2.Contracting

□Applicable √ Not applicable

No such cases in the reporting period.

3. Other significant contracts

□Applicable √ Not applicable

No such cases in the reporting period.

XV.Social responsibilities

1.Overview of the annual targeted poverty alleviation

The Company has no precision poverty alleviation temporary I nhte year, and no subsequent program either.

2.Major environmental protection

The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental

protection department

No

XVI.Other material events

√ Applicable □Not applicable

The Proposal about Guangdong Provincial Expressway Development Co., Ltd’s Merger of Guangdong Fokai

Expressway Co., Ltd was examined an approved in the eighth meeting(Temporary) of the eighth session board of

directors of the company and was approved in the 2016 annual shareholders' general meeting , agreed to the

company's merger and consolidation of the wholly-owned subsidiary-Guangdong Fokai Expressway Co., Ltd. In

May 2017, the company set up the Guangdong Provincial Expressway Development Co., Ltd Foshan Branch

Company, and completed the relevant industrial and commercial registration procedures. On August 1, 2017, the

operation and management of the Fokai Expressway was officially transferred to Fokai Branch Company from

Fokai Company.

Description of the website for

Date of disclosing

Description of provisional announcement disclosing provisional

provisional announcement

announcements

th

Announcement of Resolutions of the 8 (Provisional) Meeting of April 8,2017 www.cninfo.com.cn

the Eighth Board of Directors

Announcement of Merger April 8,2017 www.cninfo.com.cn

Notice of Holding 2016 Annual Shareholders' General Meeting April 29,2017 www.cninfo.com.cn

Announcement on the progress of major Events May 4,2017 www.cninfo.com.cn

32

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

XVII. Material events of subsidiaries

□ Applicable √ Not applicable

VI. Change of share capital and shareholding of Principal Shareholders

I.Changes in share capital

1. Changes in share capital

In shares

Before the change Increase/decrease(+,-) After the Change

Amount Proportion Capitalization

Share Bonus Proportio

of common Other Subtotal Quantity

allotment shares n

reserve fund

1.Shares with conditional

1,273,392,897 60.90% -222,595 -222,595 1,273,170,302 60.89%

subscription

1.State-owned shares 409,977,151 19.61% 25,702 25,702 410,002,853 19.61%

2.State-owned legal person

521,393,021 24.94% 521,393,021 24.94%

shares

3.Other domestic shares 342,022,725 16.35% -248,297 -248,297 341,774,428 16.34%

Including :Domestic

341,260,941 16.32% -35,155 -35,155 341,225,786 16.32%

Legal person shares

Domestic natural person

761,784 0.03% -213,142 -213,142 548,642 0.02%

shares

II.Shares with

817,413,229 39.10% 222,595 222,595 817,635,824 39.11%

unconditional subscription

1.Common shares in RMB 468,663,229 22.42% 222,595 222,595 468,885,824 22.43%

2.Foreign shares in

348,750,000 16.68% 348,750,000 16.68%

domestic market

III. Total of capital shares 2,090,806,126 100.00% 0 0 2,090,806,126 100.00%

Reasons for share changed

√ Applicable □Not applicable

Note 1: within the report period, 40 shareholders repay the 25,702 consideration shares of the equity division

reform prepaid by Guangdong Traffic Group Co., Ltd. and such shares transfer into the “state holdings” from the

“domestic legal person holdings” and “domestic natural person holdings”.

33

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Note 2: within the report period, “domestic legal person holdings” totaling 35,155 shares and “domestic

natural person holdings” totaling 156,255 shares are released from the sales restriction and listed for circulation on

April 26, 2017 and transferred into the “unlimited tradable shares”.

Notes 3:Ms. Tu Hui Ling resigned from the supervisors of the Company for six months due to retirement,56,887

conditional shares held by him were transferred into frozen shares for unrestricted negotiable shares .

Approval of Change of Shares

□ Applicable √ Not applicable

Ownership transfer of share changes

□ Applicable √ Not applicable

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

common shareholders of Company in latest year and period

□ Applicable √ Not applicable

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

regulators

□ Applicable √ Not applicable

2. Change of shares with limited sales condition

√ Applicable □Not applicable

In RMB

Number of

Number of Increased Restricted Date of

Shareholder Initial Restricted Reason for Restricted

Unrestricted Restricted Shares in the Restriction

Name Shares Shares

Shares This Term Shares End of the Term Removal

This Term

the commitment

and special ones

40 shareholders repay and have been

Guangdong

prepay shares of the fulfilled and the

Communication 409,977,151 0 25,702 410,002,853

equity division reform date releasing the

Group Co.,Ltd

consideration sales restriction

has not been

determined yet

On January 23, 2017, 40

40 shareholders shareholders repaid the

of Taoyuan Real 25,702 consideration

Estate shares of the equity

191,410 165,708 -25,702 0 April, 28,2017

Development division reform prepaid

company in by Guangdong Traffic

Heshan city, etc. Group Co., Ltd. due to the

equity division reform

Total 410,168,561 165,708 0 410,002,853 -- --

34

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

II.Issuing and listing

□ Applicable √ Not applicable

III. Shareholders and shareholding

In Shares

Total number of preferred

Total number of common

shareholders that had restored the

shareholders at the end of the 76,384 0

voting right at the end of the

reporting period

reporting period (if any) (note 8)

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

Changes Number of share pledged/frozen

Proportion Number of Amount of Amount of

Nature of in

Shareholders of shares shares held at restricted un-restricted

shareholder reportin State of share Amount

held(%) period -end shares held shares held

g period

Guangdong

State-owned

Communication 24.55% 513,382,595 410,002,853 103,379,742

legal person

Group Co.,Ltd

Guangdong

Highway State-owned

22.30% 466,325,020 466,325,020

Construction legal person

Co., Ltd,

Yadong Fuxing Domestic non

Yalian State-own

9.68% 202,429,149 202,429,149 Pledge 202,429,000

Investment Co., ed

Ltd. Legal person

Tibet Yingyue Domestic non

Investment State-own

4.84% 101,214,574 101,214,574

Management ed

Co., Ltd. Legal person

Guangdong

State-owned

Expressway 2.53% 52,937,491 52,937,491

legal person

Co., Ltd.

Domestic non

Guangfa

State-own

Securities Co., 1.45% 30,364,372 30,364,372

ed

Ltd.

Legal person

Domestic

Feng Wuchu 1.04% 21,724,797

natural person

35

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

shares

PERSHING Foreign legal

0.90% 18,744,850

LLC person

Xinyue Co., Foreign legal

0.63% 13,201,086

Ltd. person

Bank of

Communication

s-Hybrid

securities

Other 0.54% 11,222,170

investment fund

in Huaan

strategy

optimization

Guangdong Provincial Highway Construction Co., Ltd., Guangdong Province Expressway Co., Ltd.,

Strategy investors or general Guangdong Provincial Highway Construction Co., Ltd., Yadong Fosun Asia Investment Co., Ltd.,

legal person becomes top 10 Tibet Yingyue Investment Management Co., Ltd., Guangfa Securities Co., Ltd. Due to additional

shareholders due to rights issued holdings, The shares were 466,325,020 shares, 202,429,149 shares, 101,214,574 shares, 33,355,263

(if any)(Notes 3) shares, 30,364,372 shares, totaling 833,688,378 shares. The holding period is: July 8, 2016 to July 8,

2019.

Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Expressway Co.,

Explanation on associated Ltd. and Guangdong Highway Construction Co., Ltd.. It is unknown whether there is relationship

relationship among the between other shareholders and whether they are persons taking concerted action specified in the

aforesaid shareholders Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed

Companies.

Shareholding of top 10 shareholders of unrestricted shares

Quantity of unrestricted shares held at the end Share type

Name of the shareholder

of the reporting period Share type Quantity

RMB Common

Guangdong Communication Group Co.,Ltd 103,379,742 103,379,742

shares

RMB Common

19,808,890

shares

Feng Wuchu 21,724,797 Foreign shares

placed in domestic 1,915,907

exchange

Foreign shares

PERSHING LLC 18,744,850 placed in domestic 18,744,850

exchange

Foreign shares

Xinyue Co., Ltd. 13,201,086 placed in domestic 13,201,086

exchange

36

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Bank of Communications-Hybrid securities

RMB Common

investment fund in Huaan strategy 11,222,170 11,222,170

shares

optimization

Foreign shares

GUOTAI JUNAN

9,058,001 placed in domestic 9,058,001

SECURITIES(HONGKONG) LIMITED

exchange

RMB Common

Khazanah Nasional Berhad-self fund 8,844,250 8,844,250

shares

Foreign shares

MATTHEWS CHINA DIVIDEND FUND 8,325,006 placed in domestic 8,325,006

exchange

Foreign shares

BBH A/C VANGUARD EMERGING

6,541,331 placed in domestic 6,541,331

MARKETS STOCK INDEX FUND

exchange

Foreign shares

DBS VICKERS (HONG KONG) LTD A/C

5,641,654 placed in domestic 5,641,654

CLIENTS

exchange

Explanation on associated relationship or

consistent action among the top 10

Explanation on associated relationship or consistent action among the top 10

shareholders of non-restricted negotiable

shareholders of non-restricted negotiable shares and that between the top 10

shares and that between the top 10

shareholders of non-restricted negotiable shares and top 10 shareholders

shareholders of non-restricted negotiable

shares and top 10 shareholders

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

buy-back agreement dealing in reporting period.

□ Yes √ No

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

have no buy –back agreement dealing in reporting period.

IV. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period

□ Applicable √ Not Applicable

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

Change of the actual controller in the reporting period

□ Applicable √ Not applicable

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

37

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

VII. Situation of the Preferred Shares

□Applicable √Not applicable

The Company had no preferred shares in the reporting period

38

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

VIII. Information about Directors, Supervisors and Senior Executives

I. Change in shares held by directors, supervisors and senior executives

√ Applicable □Not applicable

Amount of Amount of

Number of Number of

shares shares Number of

Shares Shares restricted restricted

increased decreased restricted stock

Office held at the held at the stock granted stock granted

Name Position at the at the granted at the

status year-begin year-endin at the at the

reporting reporting year-ending(shar

(share) g(share) year-begin . reporting

period(sha period(sha e)

share) period(share)

re) re)

Director,

Wang In

General 0 135,100 0 135,100 0 0 0

Chunhua office

Manager

Total -- -- 0 135,100 0 135,100 0 0 0

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

√ Appicable □Not applicable

Name Positions Types Date Reason

Zheng Renfa Board chairman Elected January 4,2017 Elected

Chen Wenmian Deputy GM Dismiss April 11,2017 Job change

Director,

Liu Xiaomei Dismiss July 19,2017 Resignation

Board secretary

39

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

IX. Corporate Bond

Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and

not yet due or due but not folly cashed on the approval date of annual report

No

X. Financial Report

I. Audit report

Has this semi-annual report been audited?

□Yes √No

The semi-annual report was not audited.

II. Financial statements

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

1. Consolidated balance sheet

Prepared by::Guangdong Provincial Expressway Development Co., Ltd.

June 30, 2017

In RMB

Items At the end of term Beginning of term

Current asset:

Monetary fund 2,596,273,900.39 2,603,279,644.25

Settlement provision

Outgoing call loan

Financial assets measured at fair value with variations

accounted into current income account

Derivative financial assets

Bill receivable

Account receivable 81,861,655.16 40,681,197.01

Prepayments 2,090,098.10 2,860,130.35

Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts receivable

40

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items At the end of term Beginning of term

Interest receivable

Dividend receivable 23,054,984.51

Other account receivable 23,067,768.72 25,167,879.53

Repurchasing of financial assets

Inventories 323,888.89 323,888.89

Assets held for sales

Non-current asset due in 1 year 55,719.14 55,719.14

Other current asset

Total of current assets 2,726,728,014.91 2,672,368,459.17

Non-current assets:

Loans and payment on other’s behalf disbursed

Disposable financial asset 1,751,357,624.93 1,718,421,932.77

Expired investment in possess

Long-term receivable

Long term share equity investment 2,283,902,186.05 2,220,805,130.31

Property investment 2,987,864.38 3,219,971.08

Fixed assets 8,874,578,467.58 9,285,823,302.77

Construction in progress 202,539,473.20 149,244,110.30

Engineering material 1,549,556.00 1,549,556.00

Fixed asset disposal

Production physical assets

Gas & petrol

Intangible assets 4,322,609.82 6,138,294.90

R & D petrol

Goodwill

Long-germ expenses to be amortized 857,464.05 1,763,966.07

Differed income tax asset 222,795,171.12 10,810,322.94

Other non-current asset 2,088,600.97 2,300,170.28

Total of non-current assets 13,346,979,018.10 13,400,076,757.42

Total of assets 16,073,707,033.01 16,072,445,216.59

Current liabilities

Short-term loans

Loan from Central Bank

41

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items At the end of term Beginning of term

Deposit received and hold for others

Call loan received

Financial liabilities measured at fair value with variations

accounted into current income account

Derivative financial liabilities

Bill payable

Account payable 207,563,438.89 299,414,047.07

Advance payment 16,485,866.82 17,440,023.40

Selling of repurchased financial assets

Fees and commissions receivable

Employees’ wage payable 14,518,023.53 8,840,599.13

Tax payable 115,032,413.48 106,370,898.31

Interest payable 7,986,358.47 8,945,283.52

Dividend payable 14,772,372.03 12,506,777.92

Other account payable 82,099,926.52 134,266,141.34

Reinsurance fee payable

Insurance contract provision

Entrusted trading of securities

Entrusted selling of securities

Liabilities held for sales

Non-current liability due in 1 year 1,070,610,000.00 957,880,000.00

Other current liability

Total of current liability 1,529,068,399.74 1,545,663,770.69

Non-current liabilities:

Long-term loan 5,110,950,000.00 5,402,780,000.00

Bond payable

Including:preferred stock

Sustainable debt

Long-term payable 2,022,210.11 2,022,210.11

Long-term payable employees’s remuneration

Special payable

Expected liabilities

Deferred income

42

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items At the end of term Beginning of term

Deferred income tax liability 376,019,272.83 278,463,647.00

Other non-current liabilities

Total non-current liabilities 5,488,991,482.94 5,683,265,857.11

Total of liability 7,018,059,882.68 7,228,929,627.80

Owners’ equity

Share capital 2,090,806,126.00 2,090,806,126.00

Other equity instruments

Including:preferred stock

Sustainable debt

Capital reserves 2,508,408,342.99 2,508,408,342.99

Less:Shares in stock

Other comprehensive income 326,416,234.80 402,285,954.24

Special reserves

Surplus reserves 366,956,549.89 366,956,549.89

Common risk provision

Undistributed profit 3,110,900,482.46 2,920,563,328.27

Total of owner’s equity belong to the parent company 8,403,487,736.14 8,289,020,301.39

Minority shareholders’ equity 652,159,414.19 554,495,287.40

Total of owners’ equity 9,055,647,150.33 8,843,515,588.79

Total of liabilities and owners’ equity 16,073,707,033.01 16,072,445,216.59

Legal Representative:Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting:Fang Zhi

Accounting Dept Leader: Zhou Fang

43

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

2.Parent Company Balance Sheet

In RMB

Items At the end of term Beginning of term

Current asset:

Monetary fund 2,326,758,717.75 1,795,455,123.88

Financial assets measured at fair value with variations

accounted into current income account

Derivative financial assets

Bill receivable

Account receivable

Prepayments 2,059,362.84

Interest receivable 36,446,037.51 34,833.33

Dividend receivable 172,639,943.31 24,000,000.00

Other account receivable 6,543,347.81 2,350,265.24

Inventories

Assets held for sales

Non-current asset due in 1 year 85,000,000.00 95,000,000.00

Other current asset

Total of current assets 2,627,388,046.38 1,918,899,585.29

Non-current assets:

Disposable financial asset 1,751,357,624.93 1,718,421,932.77

Expired investment in possess

Long-term receivable

Long term share equity investment 7,449,064,405.71 7,385,967,349.97

Property investment 2,735,726.13 2,967,832.83

Fixed assets 2,202,541.47 2,744,611.16

Construction in progress

Engineering material

Fixed asset disposal

Production physical assets

Gas & petrol

Intangible assets 571,909.42 725,234.38

R & D petrol

Goodwill

44

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items At the end of term Beginning of term

Long-germ expenses to be amortized 709,033.82 1,559,874.44

Differed income tax asset 220,270,567.14

Other non-current asset 857,903,684.98 847,903,684.98

Total of non-current assets 10,284,815,493.60 9,960,290,520.53

Total of assets 12,912,203,539.98 11,879,190,105.82

Current liabilities

Short-term loans

Financial liabilities measured at fair value with variations

accounted into current income account

Derivative financial liabilities

Bill payable

Account payable

Advance payment

Employees’ wage payable 1,442,385.54 1,347,078.47

Tax payable 1,994,399.01 1,986,670.18

Interest payable 4,103,929.11 4,469,288.30

Dividend payable 14,772,372.03 12,506,777.92

Other account payable 63,350,110.41 1,989,088.70

Liabilities held for sales

Non-current liability due in 1 year 200,000.00 50,200,000.00

Other current liability 1,430,077,397.33 836,363,256.69

Total of current liability 1,515,940,593.43 908,862,160.26

Non-current liabilities:

Long-term loan 2,999,600,000.00 2,999,700,000.00

Bond payable

Including:preferred stock

Sustainable debt

Long-term payable 2,022,210.11 2,022,210.11

Employees’ wage payable

Special payable

Expected liabilities

Deferred income

Deferred income tax liability 108,805,411.60

45

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items At the end of term Beginning of term

Other non-current liabilities

Total of Non-current liabilities 3,110,427,621.71 3,001,722,210.11

Total of liability 4,626,368,215.14 3,910,584,370.37

Owners’ equity

Share capital 2,090,806,126.00 2,090,806,126.00

Other equity instrument

Including:preferred stock

Sustainable debt

Capital reserves 3,359,791,693.12 3,359,791,693.12

Less:Shares in stock

Other comprehensive income 326,416,234.80 402,285,954.24

Special reserves

Surplus reserves 351,112,266.24 351,112,266.24

Undistributed profit 2,157,709,004.68 1,764,609,695.85

Total of owners’ equity 8,285,835,324.84 7,968,605,735.45

Total of liabilities and owners’ equity 12,912,203,539.98 11,879,190,105.82

Legal Representative:Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting:Fang Zhi

Accounting Dept Leader: Zhou Fang

3.Consolidated Income statement

In RMB

Items Report period Same period of the previous year

I. Income from the key business 1,440,222,563.74 1,333,492,179.77

Incl:Business income 1,440,222,563.74 1,333,492,179.77

Interest income

Insurance fee earned

Fee and commission received

II. Total business cost 752,280,475.16 862,251,224.53

Incl:Business cost 533,689,845.16 558,947,473.08

46

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Report period Same period of the previous year

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 6,895,775.06 33,096,380.69

Sales expense

Administrative expense 77,693,914.84 79,766,582.60

Financial expenses 133,804,359.02 190,618,235.21

Asset impairment loss 196,581.08 -177,447.05

Add:Gains from change of fir value (“-”for loss)

Investment gain(“-”for loss) 223,430,364.44 227,430,687.32

Incl: investment gains from affiliates 199,376,107.62 181,732,975.66

Gains from currency exchange(“-”for loss)

Other income

III. Operational profit(“-”for loss) 911,372,453.02 698,671,642.56

Add :Non-operational income 62,299,078.58 63,681,145.14

Including:Income from disposal of non-current

111,175.47

assets

Less:Non business expenses 3,099,474.26 878,328.59

Incl:Loss from disposal of non-current assets 2,629,016.43 102,453.65

IV.Total profit(“-”for loss) 970,572,057.34 761,474,459.11

Less:Income tax expenses -19,940,081.98 157,332,820.43

V. Net profit 990,512,139.32 604,141,638.68

Net profit attributable to the owners of parent

892,848,012.53 505,899,144.29

company

Minority shareholders’ equity 97,664,126.79 98,242,494.39

VI. Other comprehensive income -75,869,719.44 -112,922,373.12

Net of profit of other comprehensive income attributa

-75,869,719.44 -112,922,373.12

ble to owners of the parent company.

(I)Other comprehensive income items that will not

be reclassified into gains/losses in the subsequent

47

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Report period Same period of the previous year

accounting period

1.Re-measurement of defined benefit plans of change

s in net debt or net assets

2.Other comprehensive income under the equity meth

od investee can not be reclassified into profit or loss.

(II)

Other comprehensive income that will be reclassified -75,869,719.44 -112,922,373.12

into profit or loss.

1.Other comprehensive income under the equity meth

od investee can be reclassified into profit or loss.

2.Gains and losses from changes in fair value availabl

-75,869,719.44 -112,922,373.12

e for sale financial assets

3.Held-to-maturity investments reclassified to gains a

nd losses of available for sale financial assets

4.The effective portion of cash flow hedges and losse

s

5.Translation differences in currency financial statem

ents

6.Other

7.Net of profit of other comprehensive income attribu

table to Minority shareholders’ equity

VII. Total comprehensive income 914,642,419.88 491,219,265.56

Total comprehensive income attributable to the owner

816,978,293.09 392,976,771.17

of the parent company

Total comprehensive income attributable minority

97,664,126.79 98,242,494.39

shareholders

VIII. Earnings per share

(I)Basic earnings per share 0.43 0.29

(II)Diluted earnings per share 0.43 0.29

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

t profit of RMB 0.00, last period the combined party realized RMB0.00.

Legal Representative:Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting:Fang Zhi

48

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Accounting Dept Leader: Zhou Fang

4. Income statement of the Parent Company

In RMB

Items Report period Same period of the previous year

I. Income from the key business 38,224,276.41 10,505,002.81

Incl:Business cost 232,106.70 232,106.70

Business tax and surcharge 45,569.27 361,458.40

Sales expense

Administrative expense 26,557,947.35 30,982,635.92

Financial expenses 66,857,722.21 73,447,382.17

Asset impairment loss

Add:Gains from change of fir value (“-”for loss)

Investment gain(“-”for loss) 930,734,790.73 292,397,437.40

Incl: investment gains from affiliates 199,376,107.62 215,901,030.71

Other income

II. Operational profit(“-”for loss) 875,265,721.61 197,878,857.02

Add :Non-operational income 73,878.42

Including:Income from disposal of non-current

assets

Less:Non business expenses

Incl:Loss from disposal of non-current assets

III.Total profit(“-”for loss) 875,339,600.03 197,878,857.02

Less:Income tax expenses -220,270,567.14

IV. Net profit(“-”for net loss) 1,095,610,167.17 197,878,857.02

V.Net of profit of other comprehensive income -75,869,719.44 -112,922,373.12

(I)Other comprehensive income items that will not

be reclassified into gains/losses in the subsequent

accounting period

1.Re-measurement of defined benefit plans of changes i

n net debt or net assets

2.Other comprehensive income under the equity method

investee can not be reclassified into profit or loss.

( II )

Other comprehensive income that will be reclassified in -75,869,719.44 -112,922,373.12

to profit or loss.

49

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Report period Same period of the previous year

1.Other comprehensive income under the equity method

investee can be reclassified into profit or loss.

2.Gains and losses from changes in fair value available

-75,869,719.44 -112,922,373.12

for sale financial assets

3.Held-to-maturity investments reclassified to gains and

losses of available for sale financial assets

4.The effective portion of cash flow hedges and losses

5.Translation differences in currency financial statemen

ts

6.Other

VI. Total comprehensive income 1,019,740,447.73 84,956,483.90

VII. Earnings per share:

(I)Basic earnings per share

(II)Diluted earnings per share

Legal Representative:Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting:Fang Zhi

Accounting Dept Leader: Zhou Fang

5. Consolidated Cash flow statement

In RMB

Items Report period Same period of the previous year

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 1,437,384,420.88 1,332,381,201.70

Net increase of customer deposits and capital kept for brother

company

Net increase of loans from central bank

Net increase of inter-bank loans from other financial bodies

Cash received against original insurance contract

Net cash received from reinsurance business

Net increase of client deposit and investment

Net increase of trade financial asset disposal

50

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Report period Same period of the previous year

Cash received as interest, processing fee and commission

Net increase of inter-bank fund received

Net increase of repurchasing business

Tax returned

Other cash received from business operation 60,818,976.35 42,007,100.90

Sub-total of cash inflow 1,498,203,397.23 1,374,388,302.60

Cash paid for purchasing of merchandise and services 65,216,674.54 47,639,137.85

Net increase of client trade and advance

Net increase of savings n central bank and brother company

Cash paid for original contract claim

Cash paid for interest, processing fee and commission

Cash paid for policy dividend

Cash paid to staffs or paid for staffs 132,850,018.53 138,780,053.43

Taxes paid 241,335,946.56 191,444,172.08

Other cash paid for business activities 36,408,522.23 63,642,109.86

Sub-total of cash outflow from business activities 475,811,161.86 441,505,473.22

Cash flow generated by business operation, net 1,022,392,235.37 932,882,829.38

II.Cash flow generated by investing

Cash received from investment retrieving

Cash received as investment gains 137,278,324.19 143,375,677.40

Net cash retrieved from disposal of fixed assets, intangible

6,250.00 606,975.00

assets, and other long-term assets

Net cash received from disposal of subsidiaries or other

operational units

Other investment-related cash received 59,995,667.68 60,770,000.00

Sub-total of cash inflow due to investment activities 197,280,241.87 204,752,652.40

Cash paid for construction of

fixed assets, intangible assets 200,612,133.89 69,443,291.01

and other long-term assets

Cash paid as investment 803,500,000.00

Net increase of loan against pledge

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities 987,903,684.98

Sub-total of cash outflow due to investment activities 200,612,133.89 1,860,846,975.99

51

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Report period Same period of the previous year

Net cash flow generated by investment -3,331,892.02 -1,656,094,323.59

III.Cash flow generated by financing

Cash received as investment 1,633,499,989.30

Incl: Cash received as investment from minor shareholders

Cash received as loans 499,000,000.00 499,000,000.00

Cash received from bond placing

Other financing –related ash received 5,173.81

Sub-total of cash inflow from financing activities 499,000,000.00 2,132,505,163.11

Cash to repay debts 678,100,000.00 596,400,000.00

Cash paid as dividend, profit, or interests 848,413,171.72 330,423,880.43

Incl: Dividend and profit paid by subsidiaries to minor

10,266,231.67

shareholders

Other cash paid for financing activities 3,984,368.84

Sub-total of cash outflow due to financing activities 1,526,513,171.72 930,808,249.27

Net cash flow generated by financing -1,027,513,171.72 1,201,696,913.84

IV. Influence of exchange rate alternation on cash and cash

1,447,084.51 -523,203.86

equivalents

V.Net increase of cash and cash equivalents -7,005,743.86 477,962,215.77

Add: balance of cash and cash equivalents at the beginning of

2,603,279,644.25 1,199,629,276.85

term

VI ..Balance of cash and cash equivalents at the end of term 2,596,273,900.39 1,677,591,492.62

Legal Representative:Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting:Fang Zhi

Accounting Dept Leader: Zhou Fang

6. Cash Flow Statement of the Parent Company

In RMB

Items Amount in this period Amount in last period

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 3,621,896.95 6,683,948.58

52

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Amount in this period Amount in last period

Tax returned

Other cash received from business operation 616,912,385.89 377,038,257.24

Sub-total of cash inflow 620,534,282.84 383,722,205.82

Cash paid for purchasing of merchandise and services

Cash paid to staffs or paid for staffs 16,270,436.06 18,319,723.15

Taxes paid 550,122.41 695,332.37

Other cash paid for business activities 27,384,975.76 23,791,412.76

Sub-total of cash outflow from business activities 44,205,534.23 42,806,468.28

Cash flow generated by business operation, net 576,328,748.61 340,915,737.54

II.Cash flow generated by investing

Cash received from investment retrieving

Cash received as investment gains 718,997,791.68 174,174,372.43

Net cash retrieved from disposal of fixed assets, intangible assets,

and other long-term assets

Net cash received from disposal of subsidiaries or other operational

units

Other investment-related cash received 70,491,251.01 22,151,791.67

Sub-total of cash inflow due to investment activities 789,489,042.69 196,326,164.10

Cash paid for construction of

fixed assets, intangible assets

and other long-term assets

Cash paid as investment 803,500,000.00

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities 10,000,000.00 987,903,684.98

Sub-total of cash outflow due to investment activities 10,000,000.00 1,791,403,684.98

Net cash flow generated by investment 779,489,042.69 -1,595,077,520.88

III.Cash flow generated by financing

Cash received as investment 1,633,499,989.30

Cash received as loans

Cash received from bond placing

Other financing –related ash received 5,173.81

Sub-total of cash inflow from financing activities 1,633,505,163.11

Cash to repay debts 50,100,000.00

Cash paid as dividend, profit, or interests 775,861,281.94 232,245,858.07

53

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Amount in this period Amount in last period

Other cash paid for financing activities 3,984,368.84

Sub-total of cash outflow due to financing activities 825,961,281.94 236,230,226.91

Net cash flow generated by financing -825,961,281.94 1,397,274,936.20

IV. Influence of exchange rate alternation on cash and cash

1,447,084.51 -523,203.86

equivalents

V.Net increase of cash and cash equivalents 531,303,593.87 142,589,949.00

Add: balance of cash and cash equivalents at the beginning of term 1,795,455,123.88 822,286,507.11

VI ..Balance of cash and cash equivalents at the end of term 2,326,758,717.75 964,876,456.11

Legal Representative:Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting:Fang Zhi

Accounting Dept Leader: Zhou Fang

54

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

Amount in this period

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Minor

Items Commo

Less: Other Speciali Total of owners’

n risk shareholders’

Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity

Sustai provisio equity

red Other in stock Income reserve

nable n

stock

debt

I.Balance at the

2,090,806,126.00 2,508,408,342.99 402,285,954.24 366,956,549.89 2,920,563,328.27 554,495,287.40 8,843,515,588.79

end of last year

Add: Change of

accounting

policy

Correcting of

previous errors

Merger of entities

under common

control

Other

II.Balance at the

beginning of 2,090,806,126.00 2,508,408,342.99 402,285,954.24 366,956,549.89 2,920,563,328.27 554,495,287.40 8,843,515,588.79

current year

III.Changed in the

-75,869,719.44 190,337,154.19 97,664,126.79 212,131,561.54

current year

55

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in this period

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Minor

Items Commo

Less: Other Speciali Total of owners’

n risk shareholders’

Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity

Sustai provisio equity

red Other in stock Income reserve

nable n

stock

debt

(1)Total

comprehensive -75,869,719.44 892,848,012.53 97,664,126.79 914,642,419.88

income

(II)Investment

or decreasing of

capital by owners

1.Ordinary Share

s invested by share

holders

2 . Holders of oth

er equity instrume

nts invested capital

3.Amount of

shares paid and

accounted as

owners’ equity

4.Other

(III)Profit

-702,510,858.34 -702,510,858.34

allotment

56

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in this period

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Minor

Items Commo

Less: Other Speciali Total of owners’

n risk shareholders’

Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity

Sustai provisio equity

red Other in stock Income reserve

nable n

stock

debt

1.Providing of

surplus reserves

2.Providing of

common risk

provisions

3.Allotment to the

owners (or -702,510,858.34 -702,510,858.34

shareholders)

4.Other

(IV) Internal

transferring of

owners’ equity

1. Capitalizing of

capital reserves (or

to capital shares)

2. Capitalizing of

surplus reserves

(or to capital

shares)

57

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in this period

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Minor

Items Commo

Less: Other Speciali Total of owners’

n risk shareholders’

Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity

Sustai provisio equity

red Other in stock Income reserve

nable n

stock

debt

3.Making up

losses by surplus

reserves.

4. Other

(V). Special

reserves

1. Provided this

year

2.Used this term

(VI)Other

IV. Balance at the

2,090,806,126.00 2,508,408,342.99 326,416,234.80 366,956,549.89 3,110,900,482.46 652,159,414.19 9,055,647,150.33

end of this term

58

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in last year

In RMB

Amount in last year

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Commo Minor

Items Total of owners’

Less: Other Speciali

n risk shareholders’

Share Capital Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity

prefer equity

Sustai provisio

red Other in stock Income reserve

nable n

stock

debt

I.Balance at the

1,257,117,748.00 1,643,484,871.70 479,920,085.76 295,642,270.96 2,179,239,324.01 1,261,282,480.94 7,116,686,781.37

end of last year

Add: Change of

accounting

policy

Correcting of

previous errors

Merger of entities

under common

control

Other

II.Balance at the

beginning of 1,257,117,748.00 1,643,484,871.70 479,920,085.76 295,642,270.96 2,179,239,324.01 1,261,282,480.94 7,116,686,781.37

current year

III.Changed in the

833,688,378.00 864,923,471.29 -77,634,131.52 71,314,278.93 741,324,004.26 -706,787,193.54 1,726,828,807.42

current year

59

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(1)Total

comprehensive -77,634,131.52 1,001,205,945.39 171,151,762.05 1,094,723,575.92

income

(II)Investment

or decreasing of 833,688,378.00 1,824,865,776.82 2,658,554,154.82

capital by owners

1.Ordinary Share

s invested by share 833,688,378.00 1,824,865,776.82 2,658,554,154.82

holders

2 . Holders of oth

er equity instrume

nts invested capital

3.Allotment to the

owners (or

shareholders)

4.Other

(IV) Internal

transferring of 71,314,278.93 -259,881,941.13 -10,266,231.67 -198,833,893.87

owners’ equity

1. Capitalizing of

capital reserves (or 71,314,278.93 -71,314,278.93

to capital shares)

2. Capitalizing of

surplus reserves

(or to capital

shares)

3.Making up -188,567,662.20 -10,266,231.67 -198,833,893.87

60

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

losses by surplus

reserves.

4. Other

(VI )Special

reserves

1. Provided this

year

2.Used this term

(VII)Other

IV. Balance at the

end of this term

(V) Special

reserves

1. Provided this

year

2.Used this term

-1,827,615,029.4

(VI)Other -959,942,305.53 -867,672,723.92

5

IV. Balance at the

2,090,806,126.00 2,508,408,342.99 402,285,954.24 366,956,549.89 2,920,563,328.27 554,495,287.40 8,843,515,588.79

end of this term

Legal Representative:Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang

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

Amount in this period

61

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in this period

Other Equity instrument

Less: Other

Items Specialize Total of owners’

Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit

Other d reserve equity

d stock able stock Income

debt

I.Balance at the

2,090,806,126.00 3,359,791,693.12 402,285,954.24 351,112,266.24 1,764,609,695.85 7,968,605,735.45

end of last year

Add: Change of

accounting

policy

Correcting of

previous errors

Other

II.Balance at the

beginning of 2,090,806,126.00 3,359,791,693.12 402,285,954.24 351,112,266.24 1,764,609,695.85 7,968,605,735.45

current year

III.Changed in the

-75,869,719.44 393,099,308.83 317,229,589.39

current year

(I)Total

comprehensive -75,869,719.44 1,095,610,167.17 1,019,740,447.73

income

(II) Investment or

decreasing of

capital by owners

1.Ordinary Share

62

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in this period

Other Equity instrument

Less: Other

Items Specialize Total of owners’

Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit

Other d reserve equity

d stock able stock Income

debt

s invested by share

holders

2 . Holders of oth

er equity instrume

nts invested capital

3.Amount of

shares paid and

accounted as

owners’ equity

4.Other

(III)Profit

-702,510,858.34 -702,510,858.34

allotment

1.Providing of

surplus reserves

2.Allotment to the

owners (or -702,510,858.34 -702,510,858.34

shareholders)

3.Other

(IV)Internal

transferring of

owners’ equity

63

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in this period

Other Equity instrument

Less: Other

Items Specialize Total of owners’

Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit

Other d reserve equity

d stock able stock Income

debt

1. Capitalizing of

capital reserves (or

to capital shares)

2. Capitalizing of

surplus reserves

(or to capital

shares)

3.Making up

losses by surplus

reserves.

4. Other

(V) Special

reserves

1. Provided this

year

2.Used this term

(VI)Other

IV. Balance at the

2,090,806,126.00 3,359,791,693.12 326,416,234.80 351,112,266.24 2,157,709,004.68 8,285,835,324.84

end of this term

64

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in last year

In RMB

Amount in last year

Other Equity instrument

Less: Other

Items Specialize Total of owners’

Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit

Other d reserve equity

d stock able stock Income

debt

I.Balance at the

1,257,117,748.00 1,534,920,742.49 479,920,085.76 279,797,987.31 1,311,348,847.67 4,863,105,411.23

end of last year

Add: Change of

accounting

policy

Correcting of

previous errors

Other

II.Balance at the

beginning of 1,257,117,748.00 1,534,920,742.49 479,920,085.76 279,797,987.31 1,311,348,847.67 4,863,105,411.23

current year

III.Changed in the

833,688,378.00 1,824,870,950.63 -77,634,131.52 71,314,278.93 453,260,848.18 3,105,500,324.22

current year

(I)Total

comprehensive -77,634,131.52 713,142,789.31 635,508,657.79

income

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in last year

Other Equity instrument

Less: Other

Items Specialize Total of owners’

Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit

Other d reserve equity

d stock able stock Income

debt

(II) Investment or

decreasing of 833,688,378.00 1,824,865,776.82 2,658,554,154.82

capital by owners

1.Ordinary Share

s invested by share 833,688,378.00 1,824,865,776.82 2,658,554,154.82

holders

2 . Holders of oth

er equity instrume

nts invested capital

3.Amount of

shares paid and

accounted as

owners’ equity

4.Other

(III)Profit

71,314,278.93 -259,881,941.13 -188,567,662.20

allotment

1.Providing of

71,314,278.93 -71,314,278.93

surplus reserves

2.Allotment to the

owners (or -188,567,662.20 -188,567,662.20

shareholders)

66

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in last year

Other Equity instrument

Less: Other

Items Specialize Total of owners’

Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit

Other d reserve equity

d stock able stock Income

debt

3.Other

(IV)Internal

transferring of

owners’ equity

1. Capitalizing of

capital reserves (or

to capital shares)

2. Capitalizing of

surplus reserves

(or to capital

shares)

3.Making up

losses by surplus

reserves.

4. Other

(V) Special

reserves

1. Provided this

year

2.Used this term

67

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount in last year

Other Equity instrument

Less: Other

Items Specialize Total of owners’

Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit

Other d reserve equity

d stock able stock Income

debt

(VI)Other 5,173.81 5,173.81

IV. Balance at the

2,090,806,126.00 3,359,791,693.12 402,285,954.24 351,112,266.24 1,764,609,695.85 7,968,605,735.45

end of this term

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

III.Company Profile

(1)History

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

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

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

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

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

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

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

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

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

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

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

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

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

in June 1996.

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

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

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

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

1996.

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

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

stock company limited.

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

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

3.3-for-10 basis.

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

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

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

RMB 1 in January 1998.

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

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

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

shares at the price of RMB 11 per Right.73,822,250 ordinary shares were actually placed to all .

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

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

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

9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722

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

2001.As of Ju 呢 30,2017, the quantity of the shares subject to sale restriction held by senior executives is 92,404.

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

capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000,

i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

22, 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 the

shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “The

approval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the share

equity relocation and transformation. On October 9 2006, according to the “Circular about implementing of share

equity relocation and relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’s

A shares was restored from “G-Expressway” “Expressway A”.

13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to

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

Guangdong Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares

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

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

issued 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 Highway

Construction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095 A-shares to Yadong

Fuxing 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, 2017,Registration capital:RMB2,090,806,126,Legal representative:Zheng Renfa,Registration

place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32, Zhujiang East Road,

Zhujiang New City, Tihe Disrtict , Guangzhou,The company has set up: Investment Development Dept, Security

Affairs Department, Management Department, Financial Management Department, Base construction Department,

Audit and Supervise Department, Affairs Department, Personnel Department , Party Work Department, Law

affairs Department , Project Office and Labour union etc.

Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Deng

Xiaohua. Date of establishment: June 23, 2000. As of June 30, 2017,Registered capital: RMB 26.8 billion. It is a

solely state-owned limited company. Business scope:equity management, organization of asset reorganization and

optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stock

system transformation, project investment, operation and management, traffic infrastructure construction, highway

and railway project operation and relevant industries, technological development, application, consultation and

services, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; The

value-added communication business.

(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 s

upporting motor transport, warehousing operations.

The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway, investm

ent in technological industries and provision of relevant consultation while investing in Shenzhen Huiyan Express

way Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co., Ltd.,Guangdong J

iangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzh

ou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.and Guangdong Guangle

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Expressway Co.,Ltd.

(4)Scope of consolidated financial statements

The company's 2017(Jan-June) annual consolidated subsidiaries of total 5 companies, The scope of consolidated

financial statements is consistent with the previous period. Refer to Notes VI, Notes of financial

statements ,Change of consolidation scope and Notes IX, Notes of financial statements, Equity in other entities for

more details.

(5)Approval of the financial statements reported

The financial statements have been authorized for issuance by the Board of Directors of the Group on August

28,2017.

IV. Basis for the preparation of financial statements

1.Preparation basis

The company prepares the financial statements on the basis of a continuous operation, the actual transactions,

“Accounting Standards for Enterprises – Basic Standards”, other accounting standards & related regulations.

Furthermore, all the materials of financial statements of the company meet the relevant disclosure requirements of

financial statements and notes on the “Editing and Reporting Rules Regarding Information Disclosure for

Companies Publicly Issuing Securities No. 15 – General Regulations for Financial Reporting (revised in 2014) by

China Securities Regulatory Commission.

2.Continuation

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

material doubts as to the continuation capability of the Company.

V. Significant Accounting Policies and Accounting Estimates

Specific accounting policies and accounting estimates are indicated as follows:

Nil

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

The financial statements prepared by the Company comply with the requirements of corporate accounting

standards. They truly and completely reflect the financial situations, operating results, equity changes and cash

flow, and other relevant information of the company.

2.Fiscal Year

The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the

fiscal year.

3.Operating cycle

An operating cycle for the Company is 12 months, which is also the classification criteria for the liquidity of its

71

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

assets and liabilities.

4.Standard currency for bookkeeping

The Company takes RMB as the standard currency for bookkeeping.

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

Control

1.Business Combinations under the Same Control

The assets and liabilities acquired by the company in the business combination shall be measured as per the

obtained book value of owner’s equity of the combined party in the consolidated financial statements. As for the

balance between the carrying amount of the net assets obtained by the combining party & the carrying amount of

the consideration paid by it (or the total par value of the shares issued), the additional paid-in capital shall be

adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.

The direct costs for the business combination of the company, including the expenses for audit, assessment and

legal services, shall be recorded into the profits & losses at the current period.

The handling fees, commissions & other expenses for the issuance of equity securities for the business

combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained

earnings shall be offset.

Where the accounting policies adopted by the combined parties are different from those adopted by the company,

the company shall adjust them on the combining date according to the accounting policy it adopts, and shall,

pursuant to the Accounting Standards for Enterprises, recognize them on the basis of such adjustments.

2. Business Combinations not under the Same Control

The assets paid as the consideration for the business combination & the liabilities assumed on the acquisition date

shall be measured in accordance with the fair value. The difference between the fair value & its carrying amount

shall be recorded into the profits & losses at the current period.

The company will distribute the combination costs on the acquisition date.

The company shall recognize the positive balance between the combination costs & the fair value of the

identifiable net assets it obtains from the acquire as Goodwill while it shall record the negative balance between

the combination costs & the fair value of the identifiable net assets it obtains from the acquire into the profits &

losses of the current period.

As for the assets other than intangible assets acquired from the acquire in a business combination (not limited to

the assets which have been recognized by the acquire), if the economic benefits brought by them are likely to flow

into the enterprise and their fair values can be measured reliably, they shall be separately recognized and measured

in light of their fair values. As for any intangible asset acquired in a combination, if its fair value can be measured

reliably, it shall be separately recognized as an intangible asset and shall measured in light of its fair value. As for

the liabilities other than contingent liabilities acquired from the acquire, if the performances of the relevant

obligations are likely to result in any out-flow of economic benefits from the enterprise, and their fair values can

be measured reliably, they shall be separately recognized and measured in light of their fair values. As for the

contingent liabilities of the acquire obtained in a combination, if their fair values can be measured reliably, they

72

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

shall be separately recognized as liabilities and shall be measured in light of their fair values.

6.Methods for Preparing the Consolidated Financial Statements

The scope of the consolidated financial statements will be recognized on the basis of controlling. All the

subsidiaries will be included into the consolidated financial statements.

The accounting policies & accounting periods adopted by all the subsidiaries that have been included into the

scope of the consolidated financial statements should be consistent with those adopted by the company. If the

accounting policies & accounting periods adopted by the subsidiaries are different from those adopted by the

company, the company shall make necessary adjustments according to the accounting policies & accounting

periods it adopts when preparing the consolidated financial statements.

After adjusting the long-term equity investments on its subsidiaries according to the equity method, the company

shall prepare the consolidated financial statements based on the financial statements of the company & its

subsidiaries, and other related documents.

The influences of the internal transactions between the company & its subsidiaries, and its subsidiaries themselves

on the consolidated balance sheet, consolidated profit statement, consolidated cash flow statement &

consolidated statement of changes in owner’s equity will be counteracted at the preparation of the consolidated

financial statements.

The portion of a subsidiary’s equity that is not attributable to the parent is treated as minority shareholders’

interest and presented as “minority interest” in the consolidated balance sheet within owners’ equity. The portion

of net profits or losses of subsidiaries for the period attributable to minority interest is presented in the

consolidated income statement below the “net profit” line item as “minority interest”. In the consolidated financial

statements, when the amount of loss for the period attributable to the minority shareholders of a subsidiary

exceeds the minority shareholders’ portion of the opening balance of owners’ equity of the subsidiary, the excess

amount should be still allocated against minority interest.

In the report period, If the subsidiary is added through the business combination under the same control, the

beginning balance of the consolidated balance sheet shall be adjusted. The incomes, expenses & profits of the

subsidiary incurred from the beginning of the current period to the end of the reporting period shall be included

into the consolidated profit statement. The cash flow from the beginning of the current period to the end of the

reporting period shall be included into the consolidated cash flow statement.

For purchase of minority interests held by the minority shareholders of a subsidiary, when preparing the

consolidated financial statements, the difference between the long-term equity investment newly gained by buying

minority interests and the portion of net assets consistently calculated from the acquisition date (or the

consolidation date) pursuant to newly added shareholding percentage entitled by the subsidiary should be adjusted

to the owners’ equity (the capital reserve). If the capital reserve is not sufficient to absorb the difference, any

excess is adjusted against retained earnings.

In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from the

beginning of the subsidiary to the disposal date shall be included into the consolidated profit statement. The cash

flow from the beginning of the subsidiary to the disposal date shall be included into the consolidated cash flow

73

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

statement.

7.Joint venture arrangements classification and Co-operation accounting treatment

⑴A joint arrangement refers to an arrangement jointly controlled by two participants or above.,the joint venture

arrangements include co-operation and joint ventures.

(2)When the joint venture company for joint operations, confirm the following items and share common business

interests related to:

(1)Confirm individual assets and common assets held based on shareholdings;

(2)Confirm individual liabilities and shared liabilities held based on shareholdings;

(3)Confirm the income from the sales revenue of co-operate business output

(4)Confirm the income from the sales of the co-operate business output based on shareholdings;

(5)Confirm the individual expenditure and co-operate business cost based on shareholdings.

⑶When a company is a joint ventures, joint venture investment will be recognized as long-term equity investment

s and long-term equity investments are accounted for in accordance with the method of the Notes to Financial Stat

ements.

8.Recognition Standard of Cash & Cash Equivalents

The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash when

preparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),

high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.

Equity investment are not recognized as cash equivalents.

9.Foreign Currency Transaction

(1)Foreign Currency Transaction

For the company with non-functional currency business, the middle rate of the market exchange rate published by

People’s Bank of China on the date of occurrence of business are recorded as the functional currency, and the

balances of foreign currency shall be adjusted by the end of the month according to the middle rate of the market

exchange rate published by People’s Bank of China at the end of period. The differences between the recording

currency amount converted by the exchange rate at the end of period and the carrying currency amount are as

“Finance Costs – Exchange Gains and Losses” and recorded into the current profits or losses. The exchange gains

and losses related to borrowings on the fixed assets shall be made treatment according to the principles of

borrowing costs capitalization.

(2)Conversion of Foreign Financial statement

If overseas subsidiaries, cooperative enterprises, joint ventures, branches of the company adopt the different

functional recording currency and record the overseas business of the company into the financial statements

through the consolidated statements and the accounting by the equity method, the overseas financial statements

shall be translated as the recording functional currency. Before the translation, the company shall adjust the

accounting period and policy of overseas business in order to make the consistent adjustment, and translate the

74

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

overseas financial statements according to the financial statements of the preparation of corresponding currency

after the accounting policy and period adjusted and as per the following methods:

① For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is adopted

as the translation exchange rate. For the owner’s equity, the shot exchange rate on the transaction date is

adopted as the translation exchange rate, with the exception of “undistributed profits”.

② The incomes and expenses in the income statement shall be translated at the spot exchange rate or the

approximate exchange rate on the transaction date.

③ The translation gap of financial statement of foreign currency shall be listed under the owner’s equity in the

consolidated balance sheet in the preparation of the consolidated financial statements.

10.Financial tools

1. Categories of financial Tools

The Company divides the financial assets into four categories: financial assets measured at fair value and

their variations are recognized as current gain/loss, including trade financial assets or financial liabilities and

recognized directly as financial assets measured at fair value and their variations are recognized as current

gain/loss; Investment hold till expiration; loans and account receivable; saleable financial assets .The company

divides the financial liabilities into two categories: financial liabilities measured at fair value and their variations

are recognized as current gain/loss; other financial liabilities.

2. Recognition and measurement of financial tools

(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss

The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond

interests) is recognized as initial amount when obtained.

Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be

adjusted and accounted as current gain/loss.

When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus

adjust the gain/loss of fair value.

(2) Investment hold till expiration

The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses is

recognized as initial amount when obtained.

Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when the

difference between the actual rate and face rate is minor) during the period of holding, and accounted as

investment gains. Actual rate is recognized when obtained, and is not changed in the predictable holding period or

applicable shorter period.

When disposed, the difference between the obtained price and book value is accounted as investment gains.

If the company sells or reclassifies large-amount due investments before the expired date (large amount refers to

comparing with the amount before the selling or reclassifying the investments), the company will reclassify the

rest of the investments as financial assets for sale, and in the current accounting period or within two complete

accounting years, no financial assets will be classified as holding due assets, except for the following situations:

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

the sale date or reclassification date is close to the expired date of the investment (such as three months before the

expired), and the change of interest rate has no significant influence on the fair value of the investment; after all

the initial principal is mostly recovered according to periodic payments or repay in advance regulated in the

contract, the rest part will be sold or reclassified; the sale and reclassification is caused by the independent events

which are uncontrollable and unexpected and will not happen any more.

(3) Account receivable

The receivable debts of selling goods or providing services, and the credits of other company hold by the

company not including the debt which has price in active market, including accounts receivable, notes receivable,

prepaid accounts, other receivables, long-term receivables, etc. The contract or agreement price charging from

purchaser should be taken as the initial confirmation amount; if it has the nature of financing, it should be

confirmed according its current value.

When retrieved or disposed of, the difference between the actual received amount and the book value is accounted

as current gain/loss.

(4) Saleable financial assets

The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond

interests) plus the related trade expenses is recognized as initial amount when obtained.

Interest or cash dividend occurred during the period of holding is recognized as investment gains. Change of fair

value is accounted as capital reserves (other capital reserves) at the end of term.

When disposed, the difference between the obtained price and book value is accounted as investment gains.

Meanwhile, the corresponding part of accumulated change of fair value accounted as owners’ equity is transferred

into investment gain/loss.

(5) Other financial liabilities

Other financial liabilities are recognized initially at the sum of fair value and related trade expenses. Successive

measurement will be on the basis of amortized costs.

3. Recognition and measurement basis of financial asset transposition

When financial asset transposition occurred, the recognition of this particular financial asset is terminated if

almost all risks and rewards attached to the asset have been transferred to the acceptor. If retain all the risks and

rewards of ownership of financial assets, the financial assets can be confirmed.

When determine whether the transfer of financial assets meet the conditions of confirmation of the above financial

assets, the principle of substance being more important than form should be adopted. The transfer of financial

assets can be divided into overall transfer and part transfer of financial assets. If the transfer of financial assets

meet the conditions of terminating confirmation, the following the difference of the two amounts will be included

in the current profit and loss:

(1) Book value of the financial asset to be transposed;

(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally

accounted as owners’ equity (when the asset to be transposed is saleable financial asset).

If part transfer of financial assets meet the conditions of terminating confirmation, the book value of the

transferred financial assts, the difference between the confirmed part and the unconfirmed part (in this case, the

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

service assets retained should be deemed as the part of unconfirmed financial assets), should be amortized in

accordance with their relative fair value, and the difference between the following two amount should be included

current profit and loss:

① Book value of the confirmed part;

②All fair values of financial assets and financial liabilities are recognized with reference to the price in the active

market.

If the transfer of financial assets does not meet the conditions of terminating confirmation, the financial assets

should be confirmed again, the prices received will recognized as financial liabilities.

4.The conditions to stopping the financial liabilities

The obligation of financial liabilities are already cancelled which should be stopped confirming the financial

liability or the part of it. Our company could stop confirming the currently financial liability and begin to confirm

the newly financial liability if the loaner made an agreement that they would assume the new way of financial

liability which replace the current one, and make sure the newly financial liability is totally different from the old

one in contract with our company.

Stop admitting the financial liability or a part of it, and at mean time we could admit the newly financial liability

which is in new insertions of contract as the newly financial liability if the current financial liability has been

revised.

Stop admitting the balance of value of financial liability and consideration (Including the roll-out of non-cash

assets or financial liabilities) which could be consider as current profits and losses.

Stop and continue admitting a part of value, and distribute the value of financial liability, if our company

repurchased the part of financial liability. And the balance of value of which distributed to the part of stopping

admitting and paid (Including the roll-out of non-cash assets or financial liabilities) which could be consider as

current profits and losses.

5.Recognition basis of financial assets and financial liabilities

All fair values of financial assets and financial liabilities are recognized with reference to the price in the active

market(Using valuation technique, etc).

6. Impairment provision for financial assets

①Impairment provision for financial assets for sale:

If the fair value of financial assets for sale greatly drops at the end of the period, or after considering all the

relevant factors and expecting decrease trend is non-temporary, the impairment should be confirmed, and the

accumulative loss formed by the decrease of fair value of owner’s equity originally included should be transferred

out altogether and confirmed as impairment loss.

②Holding the impairment provision of expired investments:

The measurement of holding the impairment provision of expired investment will be according to the method of

the measurement of impairment provision for receivables.

11.Accounts Receivable

(1)Accounts receivable with material specific amount and specific provisioned bad debt preparation.

Judgment criteria or amount standard of material specific amount The accounts receivable whose single amount is over RMB 1

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

or amount criterial: million & accounts for over 10% of the accounts receivable

amount.

Conduct the devalue test separately. Set up the bad debt reserve

Provision method with material specific amount and provision of according to the shortfall of the present value of expected future

specific bad debt preparation: cash flows against its carrying amount and record it into the

profits & losses at the current period.

(2)The accounts receivable of bad debt provisions made by credit risk Group

Name Method for recognition of impairment allowances

The adopting aging analysis method

In the Groups, adopting aging analysis method to withdraw bad debt provision

√ Applicable □ Not applicable

Aging Rate for receivables(%) Rate for other receivables(%)

Within 1 year(Included 1 year) 0.00% 0.00%

1-2 years 10.00% 10.00%

2-3 years 30.00% 30.00%

3-4 years 50.00% 50.00%

4-5 years 90.00% 90.00%

Over 5 years 100.00% 100.00%

Accounts on percentage basis in group:

□ applicable √not applicable

Accounts on other basis in group:

□ applicable √not applicable

(3)Account receivable with non-material specific amount but specific bad debt preparation

The accounts receivable under 5 years of age which are not

Reason of individually withdrawing bad debt provision

significant without any business connections any more.

Conduct the devalue test separately. Set up the bad debt

reserve according to the shortfall of the present value of expected

Witharawal method for boad debt provision

future cash flows against its carrying amount and record it into

the profits & losses at the current period.

12.Inventory

Whether the Company needs to comply with the disclosure requirements for specific industrie

No

1.Investories class: The company’s stocks can be classified as: raw materials, inventory goods, low-value

consumables & other materials, etc.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

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

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

3. Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method of Obsolete

Inventory Reserves:After taking stock at the end of the period,

4. Inventory System:Adopts the Perpetual Inventory System

13. Divided as assets held for sale

In the presence of the following conditions are satisfied when non-current assets or a part of the company is classi

fied as held for sale:

(1) The components should be immediately sold under the current condition only according to the usual terms of

the parts sold.

(2) The enterprise has made resolution for the disposal of the components, the approval of shareholders’ meeting

or relevant authority agency if the shareholder’s approval is requested by the rules.

(3) The enterprise has signed the irrevocable transfer agreement with the transferee.

(4) The transfer shall be completed within one year.

For the non-current assets held for sale (excluding the financial assets and the deferred income tax assets), the less

amount after the book value and fair value respectively minus the disposal costs shall be presented as Divided as

assets held for sale assets. If the amount of the fair value minus the disposal costs is less than that of the original

book value, the assets impairment loss shall be recognized.

14. Long-term equity investment

(1) The Classification of Long-term Equity Investments

The long-term equity investments of the company should include the investments in the subsidiaries and the

investments in cooperative enterprises and joint ventures.

(2) The Recognition of Investment Cost

① For the business combination under common control and the combining party paying in cash, transferring

non-monetary assets, bearing debts or issuing the equity securities as the consideration, the initial investment cost

shall be recognized according to the shares of the book value in the consolidated financial statement of the

ultimate controlling party that acquired by the combined party on the combination date. The capital reserves shall

be adjusted for the difference between the initial investment cost of long-term equity investment and the book

value of the paid cash, the transferred non-monetary assets and the borne debts. The retained earnings shall be

adjusted if the capital reserves are insufficient to offset.

For the long-term equity investment after the business combination under common control realized step-by-step

through multiple transactions, the shares of the book value of the owner’s equity of the combined party shall be as

the initial investment cost in the individual financial statements and the consolidated financial statements as per

the shareholding proportion. The capital reserves shall be adjusted for the balance between the sums of the book

value of the equity investment of the combined party held on the combination date and the new investment cost

increased on the combination date minus the initial investment cost of long-term equity investment. The retained

earnings shall be adjusted if the capital reserves are insufficient to offset.

②For the business combination under non-common control, the initial investment cost shall be recognized

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

according to the fair value of the merger consideration paid on the purchase date. For the long-term equity

investment after the business combination under non-common control realized step-by-step through multiple

transactions, the relevant accounting treatment should be respectively conducted for the individual financial

statement and the consolidated financial statements: 1) In the individual financial statements, the sum of the book

value of equity investment from the purchased party held before the purchase date and the new investment cost at

the purchase date shall be as the initial investment cost of the investment. Other comprehensive incomes related to

the equity of the purchased party held before the purchase date shall be transferred into the current investment

incomes in the disposal of the investment. 2) In the consolidated financial statements, the equity of the purchased

party held before the purchase date should be measured again according to the fair value of the equity on the

purchase date, and the gap of the fair value and the book value should be recorded into the current investment

incomes. Other comprehensive incomes related to the equity of the purchased party held before the purchase date

shall be transferred into the current investment incomes on the purchase date.

③With the exception of the business combination:

The long-term equity investment acquired by the payment in cash should be as the investment cost as per the

actual purchase payment. The investment costs include fees, taxes and other necessary expenses directly related to

the achieved long-term equity investment.

The long-term equity investment acquired by the issuance of equity securities should be as the investment cost as

per the fair value of the issued equity securities.

The long-term equity investment acquired by the non-monetary assets exchange (the exchange with the

commercial substance) should be as the investment cost as per the fair value of the investment and the payable

taxes.

For the long-term equity investment acquired by the debt reorganization, the creditors shall recognize the fair

value of the enjoyed shares as the investment of the debtors.

(3) Subsequent Measurement and Recognition Method of Profit and Loss

The cost method shall be adopted to account the long-term equity investment controlled by the invested party and

the equity method shall be adopted to account the long-term equity investment with joint control or significant

influence.

(4) Recognition Criteria for the Invested Party with Joint Control or Significant Influence

The joint control on the economic activity appointed as per the contract shall exist when the major finance and the

operating decision related to the economic activity are agreed by the invested party sharing the control right,

which shall be regarded as the joint control on the invested party implemented by other parties. The decision

power to participate in the finance and operating decision on the enterprise, but without control or joint control

with other parties to formulate these policies, shall be regarded as the significant influence on the invested party

implemented by the investment enterprise.

(5) Impairment Test Method and Withdrawing Method

For the impairment test method and the withdrawing method of the long-term equity investment, please refer to

“Long-term Assets Impairment in Article 11 of Important Accounting Policies and Accounting Estimates in Notes

5 of Financial Statements”.

15. Entrusted Loans

The entrusted loans shall be made bookkeeping according to the actually entrusted loan amount. The receivable

interests shall be withdrawn according to the interest rate stated in the entrusted loans.

For the impairment test method and the impairment provision withdrawing method of the entrusted loans, please

refer to “Long-term Assets Impairment of Important Accounting Policies and Accounting Estimates in Notes 5 of

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Financial Statements”.

16..Investment Real Estates

The measurement mode of investment property

The measurement by the cost method

Depreciation or amortization method

The term “Investment real estates” refers to the real estates held for generating rentand/orcapital appreciation,

including the right to use any land which has already been rented, the right to use any land which is held and

prepared for transfer after appreciation & the right to use any building which has already been rented.

The company shall make a measurement to the investment real estate through the cost pattern.The company shall

adopt the same depreciation policy as its fixed assets for the investment real estates measured by the cost

pattern-buildings for renting & the same amortization policy as its intangible assets for the right to use any land

for renting.

For the impairment test method and the impairment provision withdrawing method of the .Investment Real

Estates, please refer to “Long-term Assets Impairment of Important Accounting Policies and Accounting

Estimates in Notes 5 of Financial Statements”.

17.Fixed assets

(1)Confirmation conditions of fixed assets

Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management,

and operation with service life of more than one year. Fixed assets are recognized when all of the following

conditions are satisfied:Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2)

The cost of the fixed asset can be reliable measured.

(2)Depreciation method

Evpected useful Annual depreciation

Type Depreciation methnod Residual rate(%)

life(Year) rate(%)

Guangfo Expressway Working flow basis 28 years 0% Working flow basis

Fokai Expressway-Xiebian to

Working flow basis 40 years 0% Working flow basis

Sanbao Section

Fokai Expressway-Sanbao to

Working flow basis 30 years 0% Working flow basis

Shuikou Section

Jingzhu Expressway Guangzhu

Working flow basis 30 years 0% Working flow basis

Section

House Building The straight-line 20-30 years 3%-10% 3%-4.85%

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

method

Machine Equipment The straight-line

10 years 3%-10% 9%-9.7%

method

Transportation Equipment The straight-line

5-8 years 3%-10% 11.25%-19.4%

method

Electric Equipment and other The straight-line

5-15 years 3%-10% 6 %-19.4%

method

Provision for depreciation of highways and bridges is made with work amount method. Estimatednet residual

value rate is zero. Estimated useful life is determined according to the period of peration right in respect of

charge collection. The concrete calculation method is as follows: The amount of provision for depreciation per

standard vehicle traffic volume is to be calculated based on the estimated total standard vehicle traffic volume

within expected useful life of highways and bridges and the original value or book value of highways and

Bridges. Then provision for depreciation is made according to the actual standard vehicle traffic volume in each

fiscal period.

The company regularly rechecks the estimate total standard vehicle traffc volume withintheremaining

operation period of highways and bridges. When there is big difference between actual standard vehicle traffic

volume and estimated standard vehicle traffic volume, the Company will re-estimate future total standard

vehicle traffic volume and adjust the provision for depreciation per standard vehicle traffic volume to ensure

that the book value of relevant highways and bridges will be completely amortized within useful life.

The company adopts the straight line method for the depreciation of fixed assets excepthighways & bridges,

and recognizes the depreciation rate according to the fixed asset group, expected useful life & the expected net

salvage value rate.

(3) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset Impairment

Reserves

For the impairment test method and the impairment provision withdrawing method of the Fixed assets, please

refer to “Long-term Assets Impairment in Article 11 of Important Accounting Policies and Accounting Estimates

in Notes 5 of Financial Statements”.

18.Construction-in process

1. Calculation of Construction-in-process:The constructions in process are classified & accounted according to the

established projects.

2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets

All the expenditures that bring the construction in process to the expected condition for use shall be the credit

value of the fixed asset. If the fixed asset construction in process has already reached the expected condition for

use, but hasn’t been made the final account; it shall be carried forward to a fixed asset according to its estimated

value based on the budget, cost or actual cost of the construction starting from the date when it reaches the

expected condition for use, and the fixed asset shall be depreciated according to the company’s depreciation

policy for fixed assets. After the final account has been made, the original provisional estimated value shall be

adjusted according to the actual cost, but the depreciation which has originally been counted & drawn shall not be

adjusted.

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3.Test Method for Construction-in-Process Impairment and Counting & Drawing Method

For the impairment test method and the impairment provision withdrawing method of the Construction-in process ,

please refer to “Long-term Assets Impairment in Article 11 of Important Accounting Policies and Accounting

Estimates in Notes 5 of Financial Statements”.

19.Loan expenses

1. Recognition principles for capitalizing of loan expenses

Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset

satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing

expenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of current

term.

The assets meeting capital conditions refer to the fixed assets, investment real estates and inventories which

are constructed or produced in a long time to reach the predicted use or sale state.

When a loan expense satisfies all of the following conditions, it is capitalized:

1. Expenditures on assets have taken place, asset expenditures include the assets used to construct or produce the

assets which meet the capitalization conditions, and expend by cash or transferring non-cash assets or bearing

interest debt;

2. Loan costs have taken place;

3. The construction or production activities to make assets to reach the intended use or sale of state have begun.

2. Duration of capitalization of Loan costs

The capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization,

the period of the break of capitalization of Loan costs is not included.

When the construction or production meets the intended use or sale of state of capitalization conditions, the Loan

costs should stop capitalization.

When the construction or production meets the conditions of capitalization and can be used individually, the

capitalization of the loan costs of the assets should be stopped.

Where each part of a asset under acquisition and construction or production is completed separately and is ready

for use or sale during the continuing construction of other parts, but it can not be used or sold until the asset is

entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.

3.Capitalization Suspension Period

Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the

interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If

the interruption is a necessary step for making the qualified asset under acquisition and construction or production

ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs

incurred during such period shall be recorded into the profits & losses at the current period, till the acquisition and

construction or production of the asset restarts.

4. Calculation of the amount of capitalization of Loan costs

Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the asset which

satisfies the capitalizing conditions reaches its useable or saleable status.

Interest amount of common Loan to be capitalized equals to accumulated asset expense less weighted

average of specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied.

Capitalizing rate is determined according to weighted average interest of common Loan.

If the Loan has discount or premium, the discount or premium amount should be determined according to

actual interests in each accounting period. The interest amount should be adjusted in each period.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

20.Intangible assets

(1) Pricing method, useful life and impairment test

1. The valuation methods of intangible assets

(1)The initial measurement is conducted according to the actual cost when the intangible assets are acquired

The cost of the purchased intangible assets includes its buying price, relevant tax and the othe expenses that

are directly attributed to this assets meeting its predetermined objective and other expenses that occur. The buying

price of intangible assets is over the deferred payment under normal credit conditions, which has the nature of

financing materially, the cost of intangible assets is determined on the basis of the present value of its buying

price.

We acquire the mortgaged intangible assets from debtors through debt restructuring and determine the entry

value on the basis of the fair value of the intangible assets,we have the balance between the book value of debt

restructuring and the fair value of intangible assets used for mortgage charged to the current profit and loss.

The entry value of the non-monetary assets exchanged into by the non-monetary assets are determined on the

basis of the fair value of the assets exchanged out if the exchange of non-monetary assets has commercial nature

and the assets exchanged into or out can be reliably measured, unless there is authentic evidence indicating that

the fair value of assets exchanged into are more reliable; if the non-monetary assets that cannot meet the above

prerequisite use the book value of the assets exchanged out and relevant taxes payable as the cost of the

non-monetary assets, the profit and loss is not confirmed.

The entry value of the intangible assets acquired by the absorption merger under the control of one company is

determined by the book value of the merged party;the entry value of the intangible assets acquired by the

absorption merger that is not under the control of one company is determined by the fair value.

The cost of the intangible assets developed internally includes the materials consumed in developing the assets,

cost of service, registration fees, other patent used in developing, amortization of concession and interest charges

meeting the capitalization conditions and othe direct costs that occur before the intangible assets meeting the

predetermined objective.

(2)Subsequent measurement

The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.

The intangible assets that have limited serviceable life are amortized by the straight-line method during the period

when the assets can bring about economic interests;The intangible assets are deemed as uncertain serviceable life

and are not amortized if it is impossible to expect the period when the assets could bring about economic interests.

At the end of period, the Group shall check the service life and amortization method of intangible assets with

finite service life, if there is any change, it shall be regarded as a change of the accounting estimates. Besides, the

Group shall check the service life of intangible assets without certain service life, if there is any evidence showing

that the period of intangible assets to bring the economic benefits to the enterprise can be prospected, it shall be

estimated the service life and amortized in accordance with the amortization policies for intangible assets with

finite service life.

(2)Internal research and development expenditure accounting policy

For the internal self developed intangible assets, the costs include: the consumption of materials used in the

development of the intangible assets, labor costs, registration fees, the amortization of other patents and

concessions used in the development process and the interest expenses for meeting the capitalization conditions,

and other direct costs incurred before the intangible asset reaches its intended purpose.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(3) Provision for the depreciation of value of the intangible assets

For the impairment test method and the impairment provision withdrawing method of the Intangible assets, please

refer to “Long-term Assets Impairment of Important Accounting Policies and Accounting Estimates in Notes 5 of

Financial Statements”.

21.Impairment of Long-term assets

(1) Scope

The assets Impairment main includes long-term equity investment, investment property (the investment property

measured by the fair value excluded), fixed assets, projects under construction, engineering material, intangible

assets (the capitalized development expenditure included), asset group, combination of asset group, business

reputation, etc..

(2) Recognition of Possible Impairment Assets

The company makes judgment of the assets if there exists the possible impairment at the balance sheet date. The

intangible assets with indefinite goodwill and service life due to the combination of enterprise, shall be conducted

the impairment test every year regardless of the impairment. The impairment may occurs for the assets if there is

the following status:

① The market price of assets fall sharply in the current period, and the decline is obviously beyond that estimated

due to the passage of time or normal use.

② The significant changes in the economy, technology or legal environment operated by the company and the

assets market in the current or the near future adversely affect the company.

③ The improvement of the market interest rates or other market investment returns in the current period,

influence the company to calculate assets estimating the discount rate of the present value of future cash flow and

result in the sharp drop of the recoverable amount of the assets.

④ There is evidence that shows the assets have become obsolete or the entities have been damaged.

⑤ The assets have been or will be idle, terminated the use or planned to dispose in advance.

⑥ The evidence in the internal report of the company shows that the economic performance of assets has been

less than or lower than the expected, such as the net cash flow created by assets or the achieved operating profit

(or loss) is far below (or above) the estimated amount.

⑦ Other evidences indicate the impairment of assets may have occurred.

(3) Measurement of the Recoverable Amount of the Assets

The recoverable amount shall be estimated if there exists the impairment for the assets. The recoverable amount

should be recognized according to the higher one between the net amount of the fair value minus the disposal

costs and the present value of the cash flow of assets expected in the future.

(4) Determination of Asset Impairment Loss

The measurement results of the recoverable amount show that the book value of assets shall be reduced to the

recoverable amount and the reduced amount shall be recognized as the impairment loss of assets and recorded into

the current profits and losses, and the impairment provisions of the relevant assets are withdrawn if the

recoverable amount of the assets is less than the book value. After the recognition of the assets impairment loss,

the depreciation or amortization costs of the impairment assets should be made adjustment accordingly in the

future period in order to make the assets to systematically amortize the book value of the assets after adjusted

within the remaining service life (the estimated residual value deducted). The impairment loss of assets after

recognized shouldn’t be reversed in the future accounting period.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(5) Recognition and Impairment Treatment of Assets Group

If there is the impairment for one asset, the company shall estimate the recoverable amount based on the

individual asset. If it is difficult for the company to estimate the recoverable amount of the individual asset, the

recoverable amount of asset group shall be recognized on the basis of the asset group which the asset is belong to.

The recognition of the asset group should be made on the basis of the main cash inflow generated by the assets

group that if is independent to the cash inflow of other assets or assets group.

The corresponding impairment loss shall be recognized if the recoverable amount of the assets group or the assets

group combination is less the book value (the book value of the assets group or the assets group combination

should include the amortization quota relevant to corporate assets and goodwill for the assets group or the assets

group combination amortized by the corporate assets and the goodwill). The book value of goodwill in the

amortized assets group or assets group combination shall be firstly offset for the impairment losses, and the book

value of other assets shall be offset in proportion according to the proportion of the book value of other assets in

the assets group or the assets group combination, with the exception of the goodwill.

(6) The Goodwill Impairment

The company has conducted the impairment test at least every year for the goodwill established by the business

combination. The book value of the goodwill generated by the combination shall be amortized into the related

asset group from the purchase date. If difficult to amortize into the relevant asset group, the book value shall be

amortized into the relevant asset group combination. The relevant asset group or asset group combination refers to

that benefitting from the synergistic effect of the business combination and is not more than the report portion

recognized by the company.

When the relevant asset group or the asset group combination including the goodwill are conducted the

impairment test, the impairment test should be firstly conducted for the asset group without the goodwill or the

asset group combination, the recoverable amount shall be calculated and the corresponding impairment loss shall

be recognized by comparison with the relevant book value if there exists the impairment for the asset group

relevant to the goodwill or the asset group combination. Then the impairment test should be conducted for the

asset group with the goodwill or the asset group combination, the impairment loss of the goodwill shall be

recognized and made the treatment according to the provisions of the asset group impairment stated in the notes if

the recoverable amount of the relevant asset group or the asset group combination is less than the book value by

comparison of the book value of these relevant asset group or the asset group combination (including the book

value of the goodwill amortized) with the recoverable amount.

22.Long-term amortizable expenses

Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods of all expenses

are more than one year (excluding 1 year), they should be amortized in the regulated years.

23.Remuneration

(1)Accounting treatment of short-term remuneration

Remuneration refers to all kinds of rewards or compensation that the Company gives to get in return for the

services its employees provide or employment termination. It includes short-term compensation, post-employment

benefits, demission benefits and other long-term employee benefits.

Enterprises to provide employees spouse, child welfare, dependents, survivors and other beneficiaries

of deceased employees, etc., also belong to payroll.

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During the company's accounting staff to provide services, the actual wages, bonuses, allowances and subsidies, w

elfare, medical insurance, work injury insurance and maternity insurance and other social insurance, housing fund

confirmed, labor union funds, employee education funds and as a liability profit or loss or costs related assets. If t

he debt is expected to provide services after the end of the annual reporting period in which an employee can not b

e fully paid within twelve months, and the financial impact is material, the amount will be discounted liabilities m

easured after.

(2) Accounting methods for post-employment benefits

Post-employment benefits refer to the compensation and benefits that the Company gives to get in return for

employees’ services for their retirement or employment termination, excluding short-term compensation and

demission benefits. It falls into two categories, defined contribution plans and defined benefit plans.

① The defined contribution plan: the company shall no longer bear the further obligation to pay severance

benefit plans after the company deposits the fixed costs to the independent funds. The basic pension insurance and

the unemployment insurance shall be recognized as the liability according to the payable amount accounted by the

defined contribution plans and recorded onto the current profits and losses or the relevant asset costs during the

accounting period of the services provided by the staffs.

② The defined benefit plan: the severance benefit plans with the exception of the defined contribution plans.

(3) Accounting Treatment Method of Demission Welfare

The Company offers compensation to terminate employment with its employees before it expires or encourage

them to accept lay-off. Such compensation is demission benefits and counted in current profit and loss. The

employee compensation liabilities generated by the demission welfare shall be recognized on the early date and

recorded into the current profits and losses: (1) when the company can’t withdraw the demission welfare provided

due to the rundown suggestion or the termination of labor relations plans. (2) when the enterprise recognizes the

costs or the expenses related to the reorganization of demission welfare payment.

The economic compensation before the official retirement date shall be belong to the demission welfare when the

implementation of the internal retirement plan for workers. During the period from the termination of service date

to the normal retirement date, the paid internal retirement payroll and social insurance charges shall be once

recorded into the current profits and losses. The economic compensation after the official retirement date (such as

the normal retirement pension) should be handled according to the welfares after the demission.

24.Estimated liabilities

The company should recognize the related obligation as a provision for liability when the obligation meets the

following conditions:

(1) That obligation is a present obligation of the enterprise;

(2) It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;

(3) A reliable estimate can be made of the amount of the obligation.On the balance sheet date, an enterprise shall

take into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the

Contingencies to measure the estimated liabilities in accordance with the best estimate of the necessary expenses

for the performance of the current obligation.

When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterprise is

expected to be compensated by a third party, the compensation should be separately recognized as an asset only

when it is virtually certain that the reimbursement will be obtained. Besides, the amount recognized for the

reimbursement should not exceed the book value of the estimated liabilities

87

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

25.Bond payable

When the company is issuing bonds, the total price issued should be included in the “Payable bonds” subject.

The difference between bond issuance total amount and the total amount of bond face valueshould be worked

as bond premium or discount and be amortized within the bond period according to actual interest rate and

vertical line method, and be treated according to borrowing costs described below.

26.Other Comprehensive Incomes

Other comprehensive incomes refer to the profits and losses unrecognized in the current profits and losses

according to other provisions of accounting standards. There are two reports:

(1) Other comprehensive incomes that unable to be reclassified into the profits and losses in the future accounting

period, mainly including the changes caused by the net liabilities and the net assets of the defined benefit plan that

re-measured and the shares of other comprehensive incomes that accounted and unable to be reclassified into the

profits and losses for the invested party in the future accounting period according to the equity method.

(2) Other comprehensive incomes that reclassified into the profits and losses in the future accounting period when

the requirements are met, the shares of other comprehensive incomes that accounted and reclassified into the

profits and losses for the invested party in the future accounting period according to the equity method when the

requirements are met, the profits or losses caused by the fair value changes of the sellable financial assets, the

profits or losses generated by the sellable financial assets reclassified for the held-to-maturity investment, the

effective hedging portion of the profits and losses issued by the cash flow hedging instruments, and the translation

differences of foreign financial statements.

27. Revenues

Whether the Company needs to comply with the disclosure requirements for specific industrie

No

The company’s incomes mainly include the toll service revenues and the services provision.

(1) The recognition principle of the toll service revenues is that the toll revenues refer to the charges of operating

the toll roads and shall be recognized in the actual charge.

(2) The recognition principle of the services provision is as follows:

The labor services started and completed within the same fiscal year shall be recognized as the revenues when the

labor services finished. If the labor services started and completed in the different fiscal year and under the

reliable estimation of the provided services transaction results, the company shall recognize the relevant service

incomes according to the completion percentage method at the balance sheet date. The results of the transaction

can be estimated reliably when the following requirements are all met: (1) total revenues and total labor costs can

be measured reliably. (2) the economic benefits relevant to the transaction will flow into the enterprise. (3) the

competition degree of the labor services can be reliably determined.

28. Government Grants

88

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(1)Government Grants

Government grants means that the Company obtains monetary or non monetary assets free of charge from

the government, excluding the capital invested by the government as an owner.

The company recognizes the government grants when the company can meet the conditions of government

grants and be able to receive the government grants. Thereinto:

(1) If the government grant is a monetary asset, it shall be measured according to the amount received or

receivable; If the government grant is a non-monetary asset, it shall be measured at fair value, and if the fair value

cannot be obtained reliably, it shall be measured according to the nominal amount.

⑵The government grants pertinent to assets are used to write down the carrying value of the underlying

assets or are recognized as deferred income. If the government grants pertinent to assets are recognized as deferred

gains, it shall be included in the profits and losses in a reasonable and systematic manner within the useful life of

the underlying asset. The Government grants, measured in nominal amounts, are directly included in current

profits and losses. The government grants pertinent to income that are used to compensate the relevant costs or

losses of the subsequent period of the enterprise are recognized as deferred income and are credited to the current

profit or loss or are written down to offset the costs for the period when the relevant expenses are recognized;

those government grants used for compensating the related expenses or losses incurred shall be directly included in

the current profits and losses.

⑶ Government grants related to the daily activities of the enterprise are included in other income or are

written down to offset costs in accordance with the economic business nature. Government grants that are not

related to the day-to-day activities of the enterprise are included in non-operating income and expenditure.

Where the recognized government grant needs to be refunded, then the accounting treatment shall be carried

out in the period that it needs to be refunded according to the following stipulations: (1) Where it was written

down the book value of the underlying assets at the time of initial recognition, then the book value of the assets

shall be adjusted; (2) Where there is a related deferred income, it shall write-down the book balance of related

deferred income and the excess part shall be included in the current profit and loss; (3) Where belongs to other

cases, that shall be directly included in the current profits and losses.

29.Deferred income tax assets and deferred income tax liabilities

The company is likely to determine the deferred income tax assets produced from deductible temporary

differences with the limit of offsetting the taxable income of temporary difference.

The Company confirms the temporary differences of the taxable that is not paid in the current and prior periods as

the deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger and

those will affect either accounting profit or the temporary differences of the taxable income when the transactions

occur are not included in the deferred income tax liabilities.

30.Accounting Methods of Income tax

The company’s income tax is accounted in Balance sheet liability approach.

The company recognizes the sum of current income tax and deferred tax as the income tax expenses(or income) in

the income statement on the basis of calculating and determining the income tax of the current period(namely

the current taxes payable) and the deferred tax (the deferred tax expenses or income ), but excluding the

89

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

effects of the business combination and the income taxes related to the transactions or events directly recorded

in the owner’s rights and interests.

31.Change of main accounting policies and estimations

⑴Change of accounting policies

√ Applicable □Not applicable

In accordance with requirements of the Notice Concerning Printing of the Revised Accounting Standards for

Business Enterprises No. 16- Governmental Subsidies (CK[2017] No.15), the company shall include the

governmental subsidies related to the enterprise daily activities into the other income or offset relevant costs

subject to the economic business property; and include those irrelevant to the enterprise daily activities into the

non-business income. Therefore, the company shall adopt the prospective application for such accounting policy

change, which will not produce any influence on profits and losses, total assets and net assets listed in the current

and previous periods.

⑵Change of accounting estimations

□ Applicable √ Not applicable

VI. Taxation

1. Major category of taxes and tax rates

Tax category Tax basis Tax rate

Toll income, Rent income and Labour

VAT 3%、5%、6%、11%、17%

income

City maintenance and construction tax The actual payment of turnover tax 7%、5%

Enterprise income tax Taxable income 25%

Toll income, Rent income and Labour

Business tax 3%、5%

income

.Education surcharges The actual payment of turnover tax 3%

Local Education surcharges

The actual payment of turnover tax 2%

2.Preferential tax

Nil

VII. Notes to the major items of consolidated financial statement

1.Monetary Capital

90

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

In RMB

Items Amount in year-end Amount in year-begin

Cash 105,172.19 50,695.89

Bank deposit 2,595,366,192.64 2,602,516,079.26

Other 802,535.56 712,869.10

Total 2,596,273,900.39 2,603,279,644.25

Other notes

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

2. Account receivable

1.Classification account receivables.

In RMB

Amount in year-end Amount in year- begin

Book Balance Bad debt provision Book Balance Bad debt provision

Classification Book value Book value

Amount Proportio Amount Proportio Amount Proportio Amount Proportion(

n(%) n(%) n(%) %)

Account receivable

with single major

amount and

61,523,003.15 74.89% 61,523,003.15 32,054,176.60 78.46% 32,054,176.60

withdrawal bad debt

provision for single

item

Account receivable

withdrawalbad debt

provision by group 20,626,473.24 25.11% 287,821.23 1.40% 20,338,652.01 8,800,188.07 21.54% 173,167.66 1.97% 8,627,020.41

of credit risk

characterstics

Total 82,149,476.39 100.00% 287,821.23 0.35% 81,861,655.16 40,854,364.67 100.00% 173,167.66 0.42% 40,681,197.01

92

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Receivable accounts with large amount individually and bad debt provisions were provided

√ Applicable □Not applicable

In RMB

Amount in year-end

Receivable accounts(Unit)

Receivable accounts Bad debt provision Proportion Reason

Guangdong Union Electronic Services

39,152,724.42

Co., Ltd.

Guangdong Humen Bridge Co., Ltd. 22,370,278.73

Total 61,523,003.15 -- --

Account receivable on which bad debt provisions are provided on age basis in the group:

√ Applicable □Not applicable

In RMB

Balance in year-end

Aging

Receivable accounts Bad debt provision Withdrawal proportion

Subitem within 1 year

Within 1 yeaar 18,258,616.00

Subtotal within 1 year 18,258,616.00

1-2 years 2,222,679.73 222,267.98 10.00%

2-3 years 35,177.51 10,553.25 30.00%

3-4 years 110,000.00 55,000.00 50.00%

4-5 years 90.00%

Over 5 years 100.00%

Total 20,626,473.24 287,821.23 1.40%

Notes of the basis of recognizing the group:

Refer to "Notes 5 the financial statements of the important accounting policies and accounting estimates No. 11 R

ecognition and withdrawal method of bad debts.

In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:

□ Applicable √ Not applicable

In the groups, accounts receivable adopting other methods to accrue bad debt provision::

Nil

(2)Accrual period, recovery or reversal of bad debts situation

The current amount of provision for bad debts is RMB114,653.57 ; recovery or payback for bad debts Amount is

RMB0.00.

Where the current bad debts back or recover significant amounts:Nil

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(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

In RMB

Name Amount Aging Proportion(%) Bad debt

provision

Guangdong Union Electronic Services Co., Ltd. 39,152,724.42 Within 1 year 47.66

Guangdong Humen Bridge Co., Ltd. 22,370,278.73 Within 1 year 27.23

Guangdong Jingzhu Expressway Guangzhu 4,195,124.99 Within 1 year 5.11

North Section Co., Ltd.

Guangdong Xinyue Traffic Investment Co.,Ltd. 4,025,036.61 Within 2 years 4.90 90,962.37

Guangdong Expressway Co., Ltd. 2,250,650.00 Within 2 years 2.70 2,937.50

Total 71,993,814.75 -- 87.60 93,899.87

(5)Account receivable which terminate the recognition owning to the transfer of the financial assets

Nil

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts

receivable

Nil

Other notes

Nil

3. Prepayments

(1)Age analysis

In RMB

Balance in year-end Balance in year-begin

Age

Amount Proportion(%) Amount Proportion(%)

Within 1 year 1,654,104.83 79.14% 2,655,392.35 92.84%

1-2 years 231,255.27 11.06% 35,000.00 1.22%

2-3 years 35,000.00 1.67%

Over 3 years 169,738.00 8.13% 169,738.00 5.94%

Total 2,090,098.10 -- 2,860,130.35 --

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:

Nil

(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target

Name Amount Time Proportion(%)

Shanghai Zexuan Network Technology Co., Ltd. 603,310.00 Within 1 year 28.87

Ping An Insurance 469,204.50 Within 1 year 22.45

Guangdong Guanyue Luqiao Co., Ltd. 242,256.40 Within 1 year 11.59

Dongguan Yongyao Optoelectronic Technology Co., 173,100.00 Within 1 year 8.28

Ltd.

Guangzhou Maritime Court 169,738.00 Over 5 years 8.12

Total 1,657,608.90 79.31

Other notes:

4.Dividend receivable

(1)Dividend receivable

In RMB

Items Balance in year-end Balance in year-begin

China Everbright Bank Co., Ltd. 23,054,984.51

Total 23,054,984.51

(2)Significant dividend receivable aged over 1 year

Nil

95

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

5.Other accounts receivable

(1) Other accounts receivable disclosed by category

In RMB

Balance in year-end Balance in year-begin

Category Book Balance Bad debt provision Book Balance Bad debt provision

Amount Proportio Amount Proportio Book value Amount Proportio Amount Proportion( Book value

n(%) n(%) n(%) %)

Other Account receivable with single

major amount and withdrawal bad debt 53,351,565.01 68.28% 53,351,565.01 100.00% 53,351,565.01 66.56% 53,351,565.01 100.00%

provision for single item

Other Account receivable withdrawal bad

debt provision by group of credit risk 24,705,411.14 31.62% 1,637,642.42 6.63% 23,067,768.72 26,807,191.45 33.44% 1,639,311.92 6.12% 25,167,879.53

characteristics

Other Account receivable with minor

individual amount but bad debt provision 83,597.01 0.10% 83,597.01 100.00%

is provided

Total 78,140,573.16 100.00% 55,072,804.44 70.48% 23,067,768.72 80,158,756.46 100.00% 54,990,876.93 68.60% 25,167,879.53

- Other receivable accounts with large amount and were provided had debt provisions individually at end of period.

√ Applicable □Not applicable

In RMB

Balance in year-end

Other receivable(Unit) Bad debt

Other receivable Proportion Reason

provision

96

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Balance in year-end

Other receivable(Unit) Bad debt

Other receivable Proportion Reason

provision

The parent company once paid RMB 33,683,774.79 into Kunlun Securities Co., Ltd, Guangdong Expressway

technology investment Co., Ltd once paid RMB 18,000,000.00 into Kunlun Securities Co., Ltd. Qinghai Province

Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun Securities Co., Ltd

went bankrupt and repaid debt in November 11, 2006. On March 2007, The Company and Guangdong Expressway

49,343,885.10 49,343,885.10 100.00% Technology Investment Co., Ltd had switched the money that paid into Kunlun Securities Co., Ltd to other account

receivable, and follow the careful principle to doubtful debts provision. The RMB 710,349.92 Credit was Recovered

in 2008, and the provision for bad debt is deducted, The RMB977,527.77 credit was recovered in 2011, and the

Kunlun Securities provision for had debt is deducted. The RMB 652,012.00 Credit was recovered in 2014, and the provision for had

Co.,Ltd. debt is deducted.

Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze Organic Fertilizer Co.,

Ltd.for RMB12,220,079.91. Eight millions of it was entrust loan, three million was temporary borrowing RMB

12,400.00 is the commission loan interest, the rest of it was advance money for another, Beijing Gelin Enze Organic

Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly, the controlling

4,007,679.91 4,007,679.91 100.00%

subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full provision for Bad debt RMB

12,220,079.91 provision.

Beijing Gelin Enze

The company in 2014 recovered arrears of RMB 8,000,000.00, rushed back to the provision for bad debts and write o

Organic Fertilizer Co.,

ff uncollected interest entrusted loans according to the settlement agreement of RMB 212,400.00.

Ltd.

Total 53,351,565.01 53,351,565.01 -- --

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis:

√ Applicable □Not applicable

In RMB

Amount in year-end

Age

Other receivable Bad debt provision Withdrawal proportion

Subitem Withn 1 year

Within 1 year 13,931,246.56

Subtotal within 1 year 13,931,246.56

1-2 years 98,403.98 9,840.40 10.00%

2-3 years 312,715.87 93,814.76 30.00%

3-4 years 50.00%

4-5 years 90.00%

Over 5 years 1,533,987.26 1,533,987.26 100.00%

Total 15,876,353.67 1,637,642.42 10.31%

Notes of the basis of recognizing the group:

Refer to "Notes 5 the financial statements of the important accounting policies and accounting estimates .

In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:N/A

□ Applicable √Not applicable

In the groups, other accounts receivable adopting other methods to accrue bad debt provision:

√ Applicable □Not applicable

Amount in year-end

Name Other account Bad debt Withdrawal Reason

receivable provision proportion(%)

Beijing Gongke Feida Transportation Engineering 4,140.00 Quality guarantees

Development Co., Ltd. fund

Beijing Shibang Weilishi Property Management 393,331.00 Deposit

Services Co., Ltd.

Chengdu Shuguang Fibre-optical Metwork Co., ltd. 59,758.09 Quality guarantees

fund

Foshan Nanhai Jiangyi Bottled water stores 700.00 Deposit

Guangdong Boda Expressway Co., Ltd. 45,480.00 Quality guarantees

fund

Guangdong Feida Transportation Engineering 50,799.25 Quality guarantees

Development Co., Ltd. fund

Guangdong Gaoda Property Development Co.,ltd. 9,940.70 Deposit

Guangdong Guanghui Expressway Co., ltd. 1,112,967.45 Quality guarantees

98

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

fund,Deposit

Guangdong Guangle Expressway Co., Ltd. 4,832.00 Quality guarantees

fund

Guangdong Guangzhu West Expressway Co., Ltd. 100,639.00 Quality guarantees

fund

Guangdong Humen Bridge Co., Ltd. 8,338.00 Quality guarantees

fund

Guangdong Jiangzhong Expressway Co., Ltd. 19,708.00 Quality guarantees

fund

Guangdong Jingzhu Expressway Guangzhu North 55,694.00 Quality guarantees

Section Co., Ltd. fund

Guangdong Litong Real Estate Investment Co.,Ltd. 35,680.00 Deposit

Guangdong Expressway Co., Ltd. 656,754.05 Administration

expenses,Quality

guarantees fund

Guangdong Highway Construction Co., Ltd. 76,563.00 Quality guarantees

fund

Guangdong Road & Bridge Construction 3,762.70 Quality guarantees

Development Co., Ltd. fund

Guangdong West Coastal Expressway Xinhui 3,790.00 Quality guarantees

Section Co., Ltd. fund

Guangdong Weishi Highway Engineering Co., Ltd. 146.30 Quality guarantees

fund

Guangdong West Coastal Expressway Zhuhai 31,945.45 Quality guarantees

Section Co., ltd. fund

Guangdong Xinyue Traffic Investment Co.,Ltd. 168,562.60 Quality guarantees

fund

Guangdong Yueyun Traffic Co., Ltd. 3,032.00 Quality guarantees

fund

Guangdong Zhonglin Electrical Installation 8,820.00 Quality guarantees

Engineering Co., Ltd. fund

Guang-Shen-Zhu Expressway Co., Ltd. 121,280.00 Quality guarantees

fund

Guangzhou Dingrong Information Technology Co., 10,950.00 Quality guarantees

Ltd. fund

Guangzhou Saitisi Electromechanical Installation 15,875.00 Quality guarantees

Engineering Co., Ltd. fund

Guangzhou Chengcheng Auto Leasing Service Co., 30,000.00 Deposit

ltd.

Guangzhou Tuzhiling Compoter technology Co., 21,330.00 Quality guarantees

Ltd. fund

Guangdong Litong Technology Investment Co.,Ltd. 5,273.00 Quality guarantees

99

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

fund

Hunan Tendering Co., Ltd. 5,000,000.00 Deposit

Shanxi Sihe Communication Engineering Co., ltd. 1,600.00 Quality guarantees

fund

Shanxi Hantang Computer Co., Ltd. 14,250.00 Quality guarantees

fund

Deposit 5,000.00 Deposit

Zhaoqing Guanghe Expressway Co., Ltd. 163,620.63 Quality guarantees

fund

Zhaoqing Yuezao Highway Co., Ltd. 419,326.00 Guarantees

fund,Deposit

China Port Railway Bureau Group Co., Ltd. 165,169.25 Quality guarantees

fund

Total 8,829,057.47

(2)Accrual period, recovery or reversal of bad debts situation

The current amount of provision for bad debts is RMB81,927.51; recovery or payback for bad debts Amount is RM

B 0.00.

Where the current bad debts back or recover significant amounts:Nil

(3) The actual write-off other accounts receivable

(4) Other accounts receivable classified by the nature of accounts

In RMB

Nature Closing book balance Opening book balance

Securities trading settlement funds balance 49,343,885.10 49,343,885.10

Guarantee deposit 8,405,764.42 4,641,268.72

Current account of gelin enze 4,007,679.91 4,007,679.91

Pretty cash 3,950,100.00 3,850,100.00

Advertising and service fee 2,166,299.62 2,818,648.03

Other 10,266,844.11 15,497,174.70

Total 78,140,573.16 80,158,756.46

(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party

In RMB

Proportion of the total Closing

Name Nature Closing balance Aging year end balance of balance of bad

the accounts debt provision

100

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

receivable(%)

Securities trading settl

Kunlun Securities Co.,Ltd 49,343,885.10 Over 5 years 63.15% 49,343,885.10

ement funds

Hunan Tendering Co., Ltd. Guarantees fund 5,000,000.00 Within 1 year 6.40%

Beijing Gelin Enze Current account 4,007,679.91 Over 5 years 5.13% 4,007,679.91

Heshan Communication Real

Current account 1,470,000.00 Over 5 years 1.88% 1,470,000.00

estate Development Company

Advertising and servic

Guangdong Xinlu Advertising

e fee 1,353,005.67 Within 1 year 1.73%

Co.,ltd.

Total -- 61,174,570.68 -- 78.29% 54,821,565.01

(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 accounts

receivable

Nil

Other notes

5.Inventory

Whether the Company needs to comply with the disclosure requirements for specific industrie

No

(1)Inventory types

In RMB

Year-end balance Year-beginning balance

Items

Provision for bad Provision for bad

Book Balance Book value Book Balance Book value

debts debts

Inventory 323,888.89 323,888.89 323,888.89 323,888.89

Total 323,888.89 323,888.89 323,888.89 323,888.89

Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure

Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

No

(2)Inventory falling price reserves

Nil

(3) Description of The closing balance of inventories contain the amount of borrowing costs capitalized

(4) Completed unsettled assets formed from the construction contact at the period-end

Nil

6.Non-current asset due within 1 year

In RMB

Items

Year-end balance Year-beginning balance

Advance business tax 55,719.14 55,719.14

Total 55,719.14 55,719.14

Other notes

Nil

7. Available-for-sale financial assets

(1) List of available-for-sale financial assets

In RMB

Amount in year-end Amount in year- begin

Items Bad debt Bad debt

Book balance Book value Book balance Book value

provision provision

Available-for-sale equity

1,788,150,824.93 36,793,200.00 1,751,357,624.93 1,755,215,132.77 36,793,200.00 1,718,421,932.77

Instruments

Measured by fair value 952,782,523.20 952,782,523.20 919,846,831.04 919,846,831.04

Measured by cost 835,368,301.73 36,793,200.00 798,575,101.73 835,368,301.73 36,793,200.00 798,575,101.73

Total 1,788,150,824.93 36,793,200.00 1,751,357,624.93 1,755,215,132.77 36,793,200.00 1,718,421,932.77

(2) Available-for-sale financial assets measured by fair value at the period-end

In RMB

Available-for-sale equity Available-for-sale Debt

Type Total

instruments instruments

102

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Cost of the equity

instruments/amortized

517,560,876.80 517,560,876.80

cost of the liabilities

instruments

Fair value 952,782,523.20 952,782,523.20

Changed amount of the

fair value accumulatively

435,221,646.40 435,221,646.40

included in other

comprehensive income

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(3) Available-for-sale financial assets measured by cost at the period-end

In RMB

Book balance Impairment provision Shareholdi Cash

ng bonus of

Investee proportion the

Period-begin Period-begin

Increase Decrease Period -end Increase Decrease Period -end among the reporting

investees period

Guangdong Radio and Television

Networks investment No.1 Limited 50,000,000.00 50,000,000.00 3.11% 999,272.31

partnership enterprise

Kunlun Securities Co., Ltd.(Notes1) 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 5.74%

5,400,000.00 5,400,000.00 5,400,000.00 5,400,000.00 0.27%

Huaxia Securities Co., Ltd.(Notes 2)

Huazheng Assets Management

1,620,000.00 1,620,000.00 1,393,200.00 1,393,200.00 0.54%

Co. Ltd.(Notes3)

Guangdong Guangle Expressway Co.,

748,348,301.73 748,348,301.73 9.00%

Ltd.(Notes 4)

Total 835,368,301.73 835,368,301.73 36,793,200.00 36,793,200.00 -- 999,272.31

104

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(4) Changes of the impairment of the available-for-sale financial assets during the reporting period

In RMB

Available-for-sale Available-for-sale

Type Total

Equity instruments Debt instruments

Balance of the withdrawn

impairment at the 36,793,200.00 36,793,200.00

period-begin

Withdrawn at the period 36,793,200.00 36,793,200.00

⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair

value or non temporary decline but not related to impairment provision

Nil

105

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

9. Long-term equity investment

In RMB

Increase/decrease

Closing

Adjustme

Withdraw balance

Additiona nt of

Negative Investment profit and loss Changes al of of

Investees Opening balance l other Cash bonus or profits Closing balance

of other impairme Other impairme

investmen recognized under the equity

comprehe announced to issue

investmen equity nt nt

t method nsive

t provision provision

income

I. Joint venture

Guangdong Guanghui

963,806,710.36 128,289,616.25 81,106,373.29 1,010,989,953.32

Expressway Co., Ltd.

Zhaoqing Yuezhao

298,347,974.37 25,096,297.33 55,172,678.59 268,271,593.11

Highway

Co., Ltd.

Subtotal 1,262,154,684.73 153,385,913.58 136,279,051.88 1,279,261,546.43

2. Affiliated Company

Shenzhen Huiyan

162,435,484.69 16,281,377.27 178,716,861.96

Expressway

Guangdong Jiangzhong

173,505,923.37 6,842,458.37 180,348,381.74

Expressway Co.,. Ltd.

Ganzhou Kangda

204,137,265.86 14,905,386.55 219,042,652.41

Expressway

Gan Ganzhou Gankang 210,007,188.89 1,179,367.37 211,186,556.26

106

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Expressway

Guangdong Yueke

Technology Petty Loan 208,564,582.77 6,781,604.48 215,346,187.25

Co., Ltd.

Subtotal 958,650,445.58 45,990,194.04 1,004,640,639.62

Total 2,220,805,130.31 199,376,107.62 136,279,051.88 2,283,902,186.05

Other notes

107

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

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 12,664,698.25

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 12,664,698.25

II.Accumulated

depreciation accumulated

amortization

1.Opening balance 9,444,727.17 9,444,727.17

2.Increased amount of

232,106.70 232,106.70

the period

(1)Withdrawal or

232,106.70 232,106.70

amortization

108

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Houses and buildings Land use right Construction in progress Total

3.Decreased amount of

the period

(1)Disposal

(2)Other Out

4.Closing balance 9,676,833.87 9,676,833.87

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 2,987,864.38 2,987,864.38

2.Opening book 3,219,971.08 3,219,971.08

(2) Investment property adopted fair value measurement mode

□Applicable√ Not applicable

(3) Details of investment property failed to accomplish certification of property

In RMB

Items Book balue Reason

Transportation and other ancillary

Transportation and other ancillary facilities 1,809,168.66

facilities, Not accreditation

Other notes

109

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

11. Fixed assets

(1) List of fixed assets

In RMB

Guangfo Jingzhu Expressway House and Machinery Transportation Electricity equipment

Items Fokai Expressway Total

buildings equipment equipment

Expressway Guangzhu section and other

I. Original price

1.Opening balance 1,460,270,190.66 8,955,187,667.08 5,120,405,509.44 350,137,770.35 126,710,600.83 64,871,708.40 613,998,510.08 16,691,581,956.84

2.Increased amount

580,085.69 580,085.69

of the period

(1)Purchase 287,864.26 287,864.26

(2)Transfer of

project under 292,221.43 292,221.43

construction

(3)Increased of

Enterprise

consolidation

3.Decreased amount

7,891,796.28 216,000.00 2,232,955.62 1,771,272.90 12,112,024.80

of the period

(1)Disposal or scrap 7,891,796.28 216,000.00 2,232,955.62 1,771,272.90 12,112,024.80

4.Closing balance 1,460,270,190.66 8,947,295,870.80 5,120,405,509.44 350,137,770.35 126,494,600.83 62,638,752.78 612,807,322.87 16,680,050,017.73

110

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Guangfo Jingzhu Expressway House and Machinery Transportation Electricity equipment

Items Fokai Expressway Total

buildings equipment equipment

Expressway Guangzhu section and other

II. Accumulated

depreciation

1.Opening balance 1,438,198,286.26 2,961,877,190.13 2,310,553,044.84 207,381,103.40 48,853,742.40 49,709,577.10 389,185,709.94 7,405,758,654.07

2.Increased amount

22,071,904.40 228,639,727.72 118,282,767.88 9,512,202.38 6,043,421.84 1,889,497.53 22,645,752.23 409,085,273.98

of the period

(1)Withdrawal 22,071,904.40 228,639,727.72 118,282,767.88 9,512,202.38 6,043,421.84 1,889,497.53 22,645,752.23 409,085,273.98

3.Decreased amount

5,531,877.31 194,400.00 2,009,659.80 1,636,440.79 9,372,377.90

of the period

(1)Disposal or

5,531,877.31 194,400.00 2,009,659.80 1,636,440.79 9,372,377.90

scrap

4.Closing balance 1,460,270,190.66 3,184,985,040.54 2,428,835,812.72 216,893,305.78 54,702,764.24 49,589,414.83 410,195,021.38 7,805,471,550.15

III. Impairment

provision

1.Opening balance

2.Increased amount

ofthe period

(1)Withdrawal

3.Decreased amount

of the period

111

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Guangfo Jingzhu Expressway House and Machinery Transportation Electricity equipment

Items Fokai Expressway Total

buildings equipment equipment

Expressway Guangzhu section and other

(1)Disposal or scrap

4.Closing balance

IV. Book value

1.Closing book

5,762,310,830.26 2,691,569,696.72 133,244,464.57 71,791,836.59 13,049,337.95 202,612,301.49 8,874,578,467.58

value

2.Opening book

22,071,904.40 5,993,310,476.95 2,809,852,464.60 142,756,666.95 77,856,858.43 15,162,131.30 224,812,800.14 9,285,823,302.77

value

112

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

⑵Temporarily idle fixed assets

Nil

⑶Fixed assets through financial leasing

Nil

⑷Tenancy of fixed assets through operating lease

Nil

⑸Details of fixed assets failed to accomplish certification of property

In RMB

Items Book value Reason

Transportation and other ancillary

Transportation and other ancillary facilities 97,733,106.51

facilities, Not accreditation

Other notes

12. Project under construction

(1)Project under construction

In RMB

Year-end balance Year-beginning balance

Book balance Provision Book value Book balance Provision Book value

Items

for for

devaluation devaluation

Sanbao To Shuikou

180,327,023.60 180,327,023.60 128,709,237.02 128,709,237.02

Expansion project

Odd project 22,212,449.60 22,212,449.60 20,534,873.28 20,534,873.28

Total 202,539,473.20 202,539,473.20 149,244,110.30 149,244,110.30

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(2) Changes of significant construction in progress

In RMB

Includin

g:

Capitaliz

Capitaliz capitaliz Source

Name of Other Proporti Project ation of

Budget Opening balance Increase Transferred to fixed assets End balance ation of ation of of

project decrease on % process interest

interest interest funding

rate (%)

this

period

Sanbao To

Shuikou 3,426,206,66

128,709,237.02 51,617,786.58 180,327,023.60 16.34% 16.34% 126,434.47 Other

Expansion 0.00

project

Odd project 20,534,873.28 1,969,797.75 292,221.43 22,212,449.60 Other

3,426,206,66

Total 149,244,110.30 53,587,584.33 292,221.43 202,539,473.20 -- -- 126,434.47 --

0.00

⑶Provision for impairment of construction projects in the current period

Nil

114

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

13. Engineering material

In RMB

Items Balance in year-end Balance in year-begin

Signpost 1,549,556.00 1,549,556.00

Total 1,549,556.00 1,549,556.00

Other notes

14. Intangible assets

(1) List of intangible assets

In RMB

Non-patent

Items Land use right Patent right Software Logo Total

right

I. Original price

1.Opening balance 1,311,658.00 23,183,107.63 24,494,765.63

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 23,183,107.63 24,494,765.63

II.Accumulated amortization

1.Opening balance 1,223,373.70 17,133,097.03 18,356,470.73

2.Increased amount of the

75,672.60 1,740,012.48 1,815,685.08

period

(1) Withdrawal 75,672.60 1,740,012.48 1,815,685.08

115

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Non-patent

Items Land use right Patent right Software Logo Total

right

3.Decreased amount of the

period

(1)Disposal

4.Closing balance 1,299,046.30 18,873,109.51 20,172,155.81

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 12,611.70 4,309,998.12 4,322,609.82

2.Opening book value 88,284.30 6,050,010.60 6,138,294.90

The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of

the balance of intangible assets

⑵Details of Land use right failed to accomplish certification of property

Nil

15. Long-term amortize expenses

In RMB

Amortized expenses

Balance in Increase in this

Items year-begin period Other loss Balance in year-end

Renovation fee 1,559,874.44 850,840.62 709,033.82

Property Insurance 204,091.63 55,661.40 148,430.23

Total 1,763,966.07 906,502.02 857,464.05

116

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Other notes

16. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets had not been off-set

In RMB

Balance in year-end Balance in year-begin

Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax

difference assets difference assets

Asset impairment provision 86,597.01 21,649.25 3,000.00 750.00

Deductible loss 881,082,268.51 220,270,567.14

Amortization of intangible

1,228,407.79 307,101.95 1,298,590.36 324,647.59

assets

Timing difference between

8,783,411.12 2,195,852.78 41,939,701.40 10,484,925.35

accumulated depreciation

Total 891,180,684.43 222,795,171.12 43,241,291.76 10,810,322.94

(2) Deferred income tax liabilities had not been off-set

In RMB

Balance in year-end Balance in year-begin

Items Deductible Deferred income tax Deductible Deferred income tax

temporary difference liabilities temporary difference liabilities

Changes in fair value of available for sale

435,221,646.40 108,805,411.60

financial assets

Deductible temporary differences in the

1,068,855,444.92 267,213,861.23 1,113,854,587.99 278,463,647.00

formation of asset impairment

Total 1,504,077,091.32 376,019,272.83 1,113,854,587.99 278,463,647.00

(3)Details of the un-recognized deferred income tax assets

In RMB

Items Balance in year-end Balance in year-begin

Deductible loss 11,836,032.09 977,316,303.49

Deductible temporary differences in the

92,067,228.66 91,954,244.59

formation of asset impairment

Total 103,903,260.75 1,069,270,548.08

117

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(4)Deductible losses of the un-recognized deferred income tax asset will expire in the following years

In RMB

Year Balance in year-end Balance in year-begin Remark

2017 3,446,980.57 218,901,780.38

2018 4,932,481.22 160,481,639.35

2019 3,456,570.30 227,972,299.53

2020 200,645,733.66

2021 169,314,850.57

2022

Total 11,836,032.09 977,316,303.49 --

Other notes

17. Other Non-current assets

In RMB

Items Balance in year-end Balance in year-begin

Prepaid land occupation tax 1,176,432.55 1,176,432.55

Income tax deductible 250,113.52

Prepaid business tax 592,429.74 618,339.90

Prepaid fixed assets engineering fees 69,625.16 505,397.83

Total 2,088,600.97 2,300,170.28

Other notes

18. Account payable

(1)List of Account payable

In RMB

Items Balance in year-end Balance in year-begin

Within 1 year(Including 1 year) 178,816,375.03 259,955,112.29

1-2 year (Including 2 years) 13,748,279.04 20,004,237.58

2-3 year(Including 3 years) 2,198,105.84 9,038,060.80

Over 3 years 12,800,678.98 10,416,636.40

Total 207,563,438.89 299,414,047.07

(2) Notes of the accounts payable aging over one year

In RMB

Items Balance in year-end Unpaid reason

118

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Foshan Land and resources Bureau 10,996,790.40 Unsettled

Guangdong Expressway Co., Ltd. 8,746,491.18 Unsettled

Guangdong Changda Highway

2,938,837.63 Unsettled

Engineering Co., Ltd

Jinan Jinzhong Electronic Weighing

1,996,541.55 Unsettled

Instrument Co., Ltd.

Total 24,678,660.76 --

Other notes:Nil

19. Advance from customers

(1) List of advance from customers

In RMB

Items Balance in year-end Balance in year-begin

Within 1 year(Including 1 year) 753,681.34 1,004,503.09

1-2 years(Including 2 years) 3,504.11 51,000.00

2-3 years(Including 3 years) 50,250.00

Over 3 years 15,678,431.37 16,384,520.31

Total 16,485,866.82 17,440,023.40

(2) Significant advance from customers aging over one year

In RMB

Items Closing balance Unpaid/Uncarry over reason

Guangzhou Huanlong Expressway Co.,

10,920,179.90 Land rent is not in the settlement period

Ltd.

Guangdong Province Telecommunications The rental of the communication channel is

3,166,668.30

Engineering Management Center not in the settlement period

Guanghdong Xinle Technology

1,442,462.77 The Rental is not in the settlement period

Development Co., Ltd.

Total 15,529,310.97 --

⑶The completion of the final construction contract has been completed and the project is not completed

Nil

20. Payable Employee wage

(1)Payable Employee wage

In RMB

119

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Items Year-beginning balance Increase in the current Decrease in the current

Year-end balance

period period

I. Short-term

8,840,599.13 123,011,764.59 118,290,375.74 13,561,987.98

compensation

II.Post-employment bene

fits - defined contribution 13,438,196.60 12,482,161.05 956,035.55

plans

III. Dismiss welfare 240,123.65 240,123.65

Total 8,840,599.13 136,690,084.84 131,012,660.44 14,518,023.53

(2)Short-term Remuneration

In RMB

Items Year-beginning Increase in the current Decrease in the current

Year-end balance

balance period period

1.Wages, bonuses, allowances and

1,202,663.49 89,124,282.08 85,359,347.67 4,967,597.90

subsidies

2.Employee welfare 8,283,512.55 8,097,132.55 186,380.00

3. Social insurance premiums 7,635,125.16 7,628,474.30 6,650.86

Including :Medical insurance 5,560,734.00 5,554,946.75 5,787.25

Work injury insurance 228,896.36 228,702.30 194.06

Maternity insurance 633,978.23 633,308.68 669.55

Supplementary medical insurance 1,211,516.57 1,211,516.57

4.Public reserves for housing 12,769,431.00 12,758,234.00 11,197.00

5.Union funds and staff education

7,637,935.64 3,638,479.65 2,887,573.07 8,388,842.22

fee

8.Other 1,560,934.15 1,559,614.15 1,320.00

Total 8,840,599.13 123,011,764.59 118,290,375.74 13,561,987.98

(3)List of drawing scheme

In RMB

Items Balance in year-begin Increase in this period Payable in this period Balance in year-end

1. Basic old-age

10,747,565.92 10,737,863.47 9,702.45

insurance premiums

2.Unemployment 367,100.49 366,722.39 378.10

120

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

insurance

3.Enterprise annuity

2,323,530.19 1,377,575.19 945,955.00

payment

Total 13,438,196.60 12,482,161.05 956,035.55

Other notes

21. Tax Payable

In RMB

Items Balance in year-end Balance in year-begin

VAT 9,748,721.40 10,107,421.05

102,481,321.92 86,569,385.59

Enterprise Income tax

Individual Income tax 304,812.04 4,955,473.49

City Construction tax 555,490.16 694,432.76

Land use tax 761,295.31 983,920.72

Property tax 672,979.54 2,303,583.10

Education subjoin 262,766.54 323,432.09

Locality Education subjoin 161,390.29 202,594.86

Stamp tax 15,995.78 132,488.16

Other 67,640.50 98,166.49

Total 115,032,413.48 106,370,898.31

Other notes:

22.Interest payable

In RMB

Items Balance in year-end Balance in year-begin

Pay the interest for long-term loans by

7,986,358.47 8,873,911.85

installments.

Interest payable on entrusted loans 71,371.67

Total 7,986,358.47 8,945,283.52

- Particulars of significant overdue unpaid interest

Nil

23. Dividends payable

In RMB

Items Year-end balance Year-Beginning balance

121

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Common stock dividends 14,772,372.03 12,506,777.92

Total 14,772,372.03 12,506,777.92

Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:

Final dividend payable RMB12,506,777.92 for more than a year in unpaid dividends to shareholders over the yea

r was mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, d

id not share reform of shareholders to receive dividends or provide application to receive dividends the bank infor

mation is incorrect, resulting in failure to pay a dividend or refund.

24.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 55,887,508.64 105,901,434.85

Deposit 1,764,567.00 1,819,863.15

Other 24,447,850.88 26,544,843.34

Total 82,099,926.52 134,266,141.34

(2) Other significant accounts payable with aging over one year

In RMB

Items Closing balance Unpaid/un-carry over reason

Project Quality guarantees/ Bid

Guangdong Changda Engineering Co., Ltd 6,828,403.12

Gruarantees/Deposit

Guangdong Nengda Grade Highway Project Quality guarantees/ Bid

3,203,152.91

Maintenance Co., Ltd. Guarantees/ Performance Guarantees

Project Quality guarantees/ Bid

Guangdong Guanyue luqiao Co., Ltd. 1,848,160.51

Guarantees/ Performance Guarantees

Guangdong Xinyue Traffic Investment Project Quality guarantees/ Bid

1,241,574.70

Co., Ltd. Guarantees/ Performance Guarantees

Total 13,121,291.24 --

Other notes

25. Non-current liabilities due within 1 year

In RMB

Items Balance year-end Year-beginning balance

Long-term loans due within 1 year 1,070,610,000.00 907,880,000.00

122

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Long-term payable account due within 1

50,000,000.00

year

Total 1,070,610,000.00 957,880,000.00

Other notes:

Long-term borrowing rate is due within one year benchmark lending rate over the same period or the same

period the benchmark lending rate to fall 10%, The balance of the long-term payables due within 1 year is the

principal amount of the entrusted loan of Ganzhou Gangkang Expressway Co., Ltd., the interest rate is 4.6716%.

26. Long-term loan

(1) Category of long-term loan

In RMB

Items Balance year-end Year-beginning balance

Pledge loan 449,000,000.00 449,000,000.00

Guaranteed loans 1,500,000,000.00 1,500,000,000.00

Credit loans 3,161,950,000.00 3,453,780,000.00

Total 5,110,950,000.00 5,402,780,000.00

Notes :

The borrowing interest rate is 4.35% -4.75%; the guaranteed loan interest rate is 5.6%; the credit interest rate is

10% lower for the same benchmark lending rate or the benchmark loan interest rate for the same period.

27. Long-term payable

(1) Long-term payable listed by nature of the account

In RMB

Items Balance year-end Year-beginning balance

Non-operating asset payable 2,022,210.11 2,022,210.11

Other notes:

28. Stock capital

In RMB

Increase/decrease this time (+ , - )

Balance

Issuing of Transferred Balance year-end

Year-beginning Bonus shares Other Subtotal

new share from reserves

Total of capital

2,090,806,126.00 2,090,806,126.00

shares

Other notes:

123

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

29. Capital reserves

In RMB

Items Year-beginning balance Increase in the current Decrease in the current Year-end balance

period period

Share premium 2,508,401,790.51 2,508,401,790.51

Other capital reserves 6,552.48 6,552.48

Total 2,508,408,342.99 2,508,408,342.99

Notes:

30. Other comprehensive income

In RMB

Amount of current period

Less :

Previously recog

After - tax att

Year-beginning Amount for the After - tax attri Year-end

Items nized in profit or

Less:Income ributable to

balance period before in loss in other co butable to the p balance

tax minority shar

come tax mprehensive inc arent company

eholders

ome

2.Other comprehensive

income reclassifiable to

402,285,954.24 32,935,692.16 108,805,411.60 -75,869,719.44 326,416,234.80

profit or loss in

subsequent periods

Gains and losses from cha

nges in fair value of availa

402,285,954.24 32,935,692.16 108,805,411.60 -75,869,719.44 326,416,234.80

ble for sale financial asset

s

Total of other

402,285,954.24 32,935,692.16 108,805,411.60 -75,869,719.44 326,416,234.80

comprehensive income

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:

Notes 1. The initial balance and the ending balance refer to other comprehensive incomes in the balance sheet.

The initial balance + other comprehensive incomes belong to the parent company after taxes = the ending balance.

The occurrence amount in the period refers to other comprehensive incomes in the profit statement, and the

occurrence amount before income tax in the period – Other comprehensive income recorded in the earlier stage

and transferred into the profits and losses in the current period – income taxes = other comprehensive incomes

belong to the parent company after taxes + other comprehensive incomes belong to the minority shareholders after

taxes.

Notes 2:In accordance with the company strategical planning and operation decisions in the future, the

124

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

company shall pay the income tax incurred due to the sale of the available-for-sale financial assets and begin to

calculate the deferred income tax influence corresponding to the fair value thereof from the current period.

31. Surplus reserve

In RMB

Items Year-beginning balance Increase in the current Decrease in the current Year-end balance

period period

Statutory surplus

366,956,549.89 366,956,549.89

reserve

Total 366,956,549.89 366,956,549.89

Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making

up losses, and dividends:

32. Retained profits

In RMB

Items Amount of this period Amount of last period

Before adjustments: Retained profits in last period

2,920,563,328.27 2,179,239,324.01

end

After adjustments: Retained profits at the period

2,920,563,328.27 2,179,239,324.01

beginning

Add:Net profit belonging to the owner of the

892,848,012.53 1,001,205,945.39

parent company

Less: Statutory surplus reserve 71,314,278.93

Common stock dividend payable 702,510,858.34 188,567,662.20

Retained profit at the end of this term 3,110,900,482.46 2,920,563,328.27

33.Operation income and operation cost

In RMB

Amount of this period Amount of last period

Items

Income Cost Income Cost

Main operation 1,418,719,988.26 523,456,284.40 1,310,524,908.77 547,729,063.75

Other operation 21,502,575.48 10,233,560.76 22,967,271.00 11,218,409.33

Total 1,440,222,563.74 533,689,845.16 1,333,492,179.77 558,947,473.08

34. Business tax and subjoin

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

In RMB

Items Amount of this period Amount of last period

Urban construction tax 2,760,207.40 2,657,718.23

Education surcharge 1,290,500.11 1,233,888.92

Property tax 677,877.95 328,030.91

Land use tax 767,994.64 461,274.26

Stamp tax 358,071.25 5,065.41

Business tax 26,341.89 26,938,514.91

Land Value added tax 860,324.55 821,904.47

Defend expense 384.04 505,754.16

Other 154,073.23 144,229.42

Total 6,895,775.06 33,096,380.69

Other notes:

35. Administrative expenses

In RMB

Items Amount of this period Amount of last period

Wage 49,157,515.03 53,433,060.50

Depreciation and Amortization 7,247,599.37 6,862,171.67

R & D expenses 3,249,337.10 790,927.27

Low consumables amortization 245,247.83 340,720.10

Travel expenses 128,401.26 256,792.05

Office expenses 2,541,048.21 2,407,928.04

Leased expenses 5,778,380.50 5,602,580.99

The fee for hiring agency 2,396,071.67 1,688,829.24

Consultation expenses 1,524,000.00 337,026.84

Directorate expenses 9,376.00 32,606.00

Expenses of taxation 1,300,956.33

Listing fee 11,320.76 11,057.40

Information cost and maintenance fee 505,424.13 513,040.25

Other 4,900,192.98 6,188,885.92

Total 77,693,914.84 79,766,582.60

Other notes:

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

36.Financial expenses

In RMB

Items Amount of this period Amount of last period

Interest expenses 147,292,451.79 202,465,249.45

Deposit interest income(-) -15,653,886.22 -12,693,925.94

Exchange Income and loss(Gain-) -1,522,372.61 533,974.57

Bank commission charge 3,688,166.06 312,937.13

Total 133,804,359.02 190,618,235.21

Other notes:

37. Asset impairment loss

In RMB

Items Amount of this period Amount of last period

I. Bad debt loss 196,581.08 -177,447.05

Total 196,581.08 -177,447.05

Other notes:

38. Investment income

In RMB

Items Amount of this period Amount of last period

Long-term equity investment income by equity

199,376,107.62 181,732,975.66

method

Hold the investment income during from

24,054,256.82 45,697,711.66

available-for-sale financial assets

Total 223,430,364.44 227,430,687.32

Other notes:

39. Non-Operation income

In RMB

Recorded in the amount of the

Items Amount of this period Amount of last period

non-recurring gains and losses

Total gains from disposal of

111,175.47

non-current assets

Including:Gains from disposal 111,175.47

127

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

of fixed assets

Government Subsidy 197,210.65 197,210.65

Road property claim income 822,425.45 1,683,499.20 822,425.45

Other income(Notes) 61,279,442.48 61,886,470.47 61,279,442.48

Total 62,299,078.58 63,681,145.14 62,299,078.58

Government subsidy reckoned into current gains/losses

In RMB

Whether the

impact of

Whhether Amount of Amount of Assets-relate

Subsidy Issuing subsidies on

Issuing body Nature special current previous d/income

items reason the current

subsidies period period –related

profit and

loss

Stable job Related to

197,210.65

subsidies income

Total -- -- -- -- -- 197,210.65 --

Other notes:

Other gains in this period include the receipt of the national highway 325 Jiujiang Bridge in advance of the

termination fee of RMB 59,995,667.68, and included in the cash flow statement "received other cash related to

investment activities."

40. Income tax expense

(1) Lists of income tax expense

In RMB

Items Amount of current period Amount of previous period

Current income tax expense 203,294,551.97 167,401,247.46

Deferred income tax expense -223,234,633.95 -10,068,427.03

Total -19,940,081.98 157,332,820.43

(2) Adjustment process of accounting profit and income tax expense

In RMB

Items Amount of current period

Total profits 970,572,057.34

Current income tax expense accounted by tax and relevant

242,643,014.32

regulations

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Influence of income tax before adjustment -372,764.24

Influence of non taxable income -55,857,591.11

Impact of non-deductible costs, expenses and losses 385,592.41

Affect the use of deferred tax assets early unconfirmed

-206,597,349.43

deductible losses

The current period does not affect the deferred tax assets

-140,983.93

recognized deductible temporary differences or deductible loss

Income tax expense -19,940,081.98

Other notes

42. Items of Cash flow statement

(1) Other cash received from business operation

In RMB

Items Amount of current period Amount of previous period

Newwork received toll income 38,176,722.70

Interest income 15,653,886.22 12,693,925.94

Unit current account 6,988,367.43 29,313,174.96

Total 60,818,976.35 42,007,100.90

Notes:

(2)Other cash paid related to oprating activities

In RMB

Items Amount of current period Amount of previous period

Management expense 22,338,978.13 16,481,079.48

Unit current account 11,909,230.86 30,486,151.38

Network received toll incom 2,160,313.24 16,674,879.00

Total 36,408,522.23 63,642,109.86

Notes :

(3)Other Cash received related to investment activities

In RMB

Items Amount of current period Amount of previous period

Jiujiang bridge to receive compensation 59,995,667.68 60,770,000.00

Total 59,995,667.68 60,770,000.00

Notes :

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(4)Other Cash payable related to investment activities

In RMB

Items Amount of current period Amount of previous period

Acquisition and construction company

987,903,684.98

creditor's rights

Total 987,903,684.98

Notes:

(5)Other Cash received related to Financing activities

In RMB

Items Amount of current period Amount of previous period

Piecemeal dividend 5,173.81

Total 5,173.81

Notes :

⑹Other Cash payable related to financing activities

In RMB

Items Amount of current period Amount of previous period

Recombination fee 3,451,000.00

Issue registration fee 533,368.84

Total 3,984,368.84

Notes :

43. 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 990,512,139.32 604,141,638.68

Add: Impairment loss provision of assets 196,581.08 -177,447.05

Depreciation of fixed assets, oil and gas 409,188,339.82 424,901,934.49

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

assets and consumable biological assets

Amortization of intangible assets 1,772,083.08 1,976,826.39

Amortization of Long-term deferred

906,502.02 906,502.01

expenses

Loss on disposal of fixed assets, intangible

2,629,016.43 -8,721.82

assets and other long-term deferred assets

Financial cost 145,770,079.18 202,999,224.02

Loss on investment -223,430,364.44 -227,430,687.32

Decrease of deferred income tax assets -211,984,848.18 -4,510,173.19

Increased of deferred income tax liabilities -11,249,785.77 -5,558,253.84

Decease of operating receivables -40,231,085.00 -9,440,469.79

Increased of operating Payable -41,686,422.17 -54,917,543.20

Net cash flows arising from operating

1,022,392,235.37 932,882,829.38

activities

II. Significant investment and financing

-- --

activities that without cash flows:

3.Movement of cash and cash equivalents: -- --

Ending balance of cash 2,596,273,900.39 1,677,591,492.62

Less: Beginning balance of cash equivalents 2,603,279,644.25 1,199,629,276.85

Net increase of cash and cash equivalents -7,005,743.86 477,962,215.77

(2) Net Cash paid of obtaining the subsidiary

Nil

(3) Net Cash receive of disposal of the subsidiary

Nil

(4)Composition of cash and cash equivalents

In RMB

Items Balance in year-end Balance in year-Beginning

I. Cash 2,596,273,900.39 2,603,279,644.25

Of which: Cash in stock 105,172.19 50,695.89

Bank savings could be used at any time 2,595,366,192.64 2,602,516,079.26

Other monetary capital could be used at any

802,535.56 712,869.10

time

131

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

III. Balance of cash and cash equivalents at

2,596,273,900.39 2,603,279,644.25

the period end

Other notes:

44. 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

45. The assets with the ownership or use right restricted

Other notes:

Up to June 30, 2017, Jingzhu Expressway Guangzhu Section Co., Ltd., the controlling grandchildren

company of the Company, with the toll collection right of Panyu Tangkeng-Zhuhai Jinding section project in

Jingzhu expressway, asked for RMB 729,000,000.00 of loan from Guangzhou Wuyang Branch of ICBC to

provide pledge guarantee(of which the non-current debt balance with 1-year expiration was RMB 280,000,000.00

and the long-term loan balance was RMB 449,000,000.00).

46. Foreign currency monetary items

(1) Foreign currency monetary items

Nil

(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,

recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.

□ Applicable √ Not applicable

VIII.Changes of consolidation scope

1.Enterprise consolidation not under the same control

Nil

2. Enterprise consolidation ont under the same control

Nil

3. Counter purchase

Nil

4. The disposal of subsidiary

Nil

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

5. Other reasons for the changes in combination scope

Nil

6.Other

Nil

IX. Equity in other entities

1. Equity in subsidiary

(1) The structure of the enterprise group

Name of Main Places of Registration Nature of Shareholding Ratio (%) Obtaining

Subsidiary Operation Place Business direct indirect Method

Guangdong Fokai Under the same

Expressway

Expressway Co., 100.00% control business

Foshan Guangzhou

Management

Ltd.

combination

Under the same

Guangfo

Expressway

Expressway Co., 75.00% control business

Guangzhou Guangzhou

Management

Ltd.

combination

Investment in

Guangdong

Expressway technical

Technology Guangzhou Guangzhou industries and 100.00% Investment

Investment Co.,

provision of

Ltd.

relevant

Guangzhuo

Guangzhu Traffic Under the same

Investment control business

Investment Guangzhou Guangzhou 100.00%

management

Management Co., combination

Ltd.

Jingzhu

Expressway Under the same

Expressway

Guangzhu Zhongshan Guangzhou 20.00% 55.00% control business

Management

Section Co.,Ltd.

combination

(Notes)

Notes: holding proportion in subsidiary different from voting proportion:

Nil

133

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Basis of holding half or less voting rights but still been controlled investee and holding more than half of the

voting rights not been controlled investee:

Nil

Significant structure entities and controlling basis in the scope of combination:

Nil

Other notes:

Nil

(2) Important Non-wholly-owned Subsidiary

In RMB

Profit or Loss Owned by Dividends Distributed to

Shareholding Ratio of Equity Balance of the

the Minority the Minority

Name of Subsidiary Minority Shareholders Minority Shareholders in

Shareholders in the Shareholders in the

(%) the End of the Period

Current Period Current Period

Guangfo Expressway

25.00% 24,594,618.60 113,356,792.40

Co., Ltd.

Jingzhu Expressway

Guangzhu Section 25.00% 73,069,508.19 538,802,621.79

Co.,Ltd.

Holding proportion of minority shareholder in subsidiary different from voting proportion:

Nil

Other notes:

Nil

134

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(3) The main financial information of significant not wholly owned subsidiary

In RMB

Year-end balance Year-beginning balance

Name Non current Current Non current Non current Current Non current

Current assets Total assets Total liabilities Current assets Total assets Total liabilities

assets Liabilities liabilities assets Liabilities liabilities

Guangfo

Expressway 467,866,940.87 19,270,172.27 487,137,113.14 33,709,943.52 33,709,943.52 338,006,190.88 59,194,753.95 397,200,944.83 42,152,249.63 42,152,249.63

Co., Ltd.

Jingzhu

Expressway

Guangzhu 732,295,794.14 2,808,612,088.62 3,540,907,882.76 483,878,583.91 1,457,823,404.11 1,941,701,988.02 385,446,003.69 2,934,252,031.69 3,319,698,035.38 547,397,234.64 1,465,372,938.76 2,012,770,173.40

Section

Co.,Ltd.

In RMB

Amount of current period Amount of previous period

Total Total

Name Cash flows from Cash flows from

Business income Net profit Comprehensive Business income Net profit Comprehensive

operating activities operating activities

income income

Guangfo

Expressway 201,131,785.00 98,378,474.42 98,378,474.42 129,165,512.93 192,164,999.38 41,079,773.35 41,079,773.35 135,089,476.99

Co., Ltd.

Jingzhu

Expressway 631,857,976.08 292,278,032.76 292,278,032.76 443,338,931.03 553,201,818.43 227,227,929.93 227,227,929.93 383,888,033.30

Guangzhu

135

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Section

Co.,Ltd.

Other notes:

136

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt

Nil

(5) Provide financial support or other support for structure entities incorporate into the scope of

consolidated financial statements

Nil

2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary

Nil。

3. Equity in joint venture arrangement or associated enterprise

(1) Significant joint venture arrangement or associated enterprise

Proportion Accounting

treatment of the

Main operating investment of

Name Registration place Business nature

place Directly Indirectly joint venture or

associated

enterprise

Guangdong

Guanghui Guangzhou, Guangzhou, Expressway

30.00% Equity method

Expressway Co., Guangdong Guangdong Management

Ltd.

Zhaoqing

Yuezhao Zhaoqing, Zhaoqing, Expressway

25.00% Equity method

Highway Co., Management

Guangdong Guangdong

Ltd.

Shenzhen Huiyan

Shenzhen Shenzhen Expressway

Expressway Co., 33.33% Equity method

Guangdong Guangdong Management

Ltd.

Guangdong

Jiangzhong Zhongshan , Guangzhou,Guan Expressway

15.00% Equity method

Expressway Co., Guangdong gdong Management

Ltd.

Ganzhou kangda

Gangzhou, Gangzhou, Expressway

Expressway Co., 30.00% Equity method

Jiangxi Jiangxi Management

Ltd.

Ganzhou

Gankang Gangzhou, Gangzhou, Expressway

30.00% Equity method

Expressway Co., Jiangxi Jiangxi Management

Ltd.

Guangdong Guangzhou, Guangzhou, Hande all kinds 20.00% Equity method

137

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Yueke Guangdong Guangdong of small loans

Technology Petty

Loan Co., Ltd.

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

Nil

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting

rights but does not have a significant impact:

Guangdong, Jiangzhong Expressway Co., Ltd and Asian Kitchen & Bath City Co.,

Ltd.. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and op

erating decisions, and therefore deemed to be able to exert significant influence over the investee.

(2) Main financial information of significant joint venture

In RMB

Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period

Guangdong Guanghui Zhaoqing Yuezhao Guangdong Guanghui Zhaoqing Yuezhao

Expressway Co., Ltd. Highway Co., Ltd. Expressway Co., Ltd. Highway Co., Ltd.

Current assets 688,266,473.00 108,846,373.49 398,201,907.66 217,772,715.63

Including:Cash and cash

632,592,085.76 91,418,506.13 119,447,466.86 199,426,500.59

equivalent

Non-current assets 4,249,285,664.54 1,723,857,530.48 4,288,934,082.82 1,780,232,314.01

Total assets 4,937,552,137.54 1,832,703,903.97 4,687,135,990.48 1,998,005,029.64

Current liabilities 394,585,555.48 131,636,738.67 330,054,720.57 178,262,191.50

Non-current liabilities 1,173,000,071.00 627,980,792.85 1,144,392,235.39 626,350,940.66

Total liabilities 1,567,585,626.48 759,617,531.52 1,474,446,955.96 804,613,132.16

Attributable to

shareholders of the 3,369,966,511.06 1,073,086,372.45 3,212,689,034.52 1,193,391,897.48

parent company

Share of net assets

1,010,989,953.32 268,271,593.11 963,806,710.36 298,347,974.37

calculated by stake

Book value of equity

investment in joint 1,010,989,953.32 268,271,593.11 963,806,710.36 298,347,974.37

ventures

Operating income 856,966,099.09 247,342,570.61 812,080,255.90 291,189,867.43

Financial expenses 24,124,233.53 14,270,879.40 24,546,983.30 17,627,552.31

Income tax expenses 142,913,805.63 34,089,839.29 127,408,913.87 40,562,875.14

Net profit 427,632,054.17 100,385,189.33 381,440,117.48 126,554,442.44

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Total comprehensive

427,632,054.17 100,385,189.33 381,440,117.48 126,554,442.44

income

Dividends received

fromjoint ventures this 81,106,373.29 55,172,678.59 105,000,000.00 37,376,405.10

year

Other notes

139

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(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 Guangdong Ganzhou Shenzhen Guangdong Ganzhou

Guangdong Yueke Guangdong Yueke

Huiyan Jiangzhong Ganzhou Kangda Gankang Huiyan Jiangzhong Ganzhou Kangda Gankang

Technology Petty Technology Petty

Expressway Expressway Co., Expressway Expressway Co., Expressway Co., Expressway Co., Expressway Expressway Co.,

Loan Co., Ltd Loan Co., Ltd

Co., Ltd. Ltd. Ltd. Ltd. Ltd. Ltd.

Current assets 421,432,200.56 82,676,516.31 60,901,360.51 403,102,026.06 1,475,791,832.65 361,323,243.16 70,211,690.33 23,183,297.78 379,477,241.75 1,631,773,621.73

Non-current assets 148,133,020.62 1,815,515,502.50 1,526,047,687.53 1,460,261,506.40 40,444,328.46 160,643,504.53 1,923,663,451.58 1,549,188,958.89 1,487,207,118.19 40,580,700.27

Total assets 569,565,221.18 1,898,192,018.81 1,586,949,048.04 1,863,363,532.46 1,516,236,161.11 521,966,747.69 1,993,875,141.91 1,572,372,256.67 1,866,684,359.94 1,672,354,322.00

Current liabilities 33,414,635.29 99,369,473.85 52,035,306.87 111,203,826.38 143,606,180.96 34,660,293.62 512,668,986.06 68,710,800.33 118,070,797.51 336,978,730.26

Non-current

596,500,000.00 804,771,566.48 1,048,204,518.54 2,006,250.00 324,500,000.00 823,203,903.47 1,048,589,599.46 20,757.29

Liabilities

Total liabilities 33,414,635.29 695,869,473.85 856,806,873.35 1,159,408,344.92 145,612,430.96 34,660,293.62 837,168,986.06 891,914,703.80 1,166,660,396.97 336,999,487.55

Minority

Shareholders’ 293,892,793.89 292,531,920.59

Equity

hareholders’

equity attributable

to shareholders of 536,150,585.89 1,202,322,544.96 730,142,174.69 703,955,187.54 1,076,730,936.26 487,306,454.07 1,156,706,155.85 680,457,552.87 700,023,962.97 1,042,822,913.86

the parent

company

Pro rata share of th

e net assets calcula 178,716,861.96 180,348,381.74 219,042,652.41 211,186,556.26 215,346,187.25 162,435,484.69 173,505,923.37 204,137,265.86 210,007,188.89 208,564,582.77

ted

The book value of 178,716,861.96 180,348,381.74 219,042,652.41 211,186,556.26 215,346,187.25 162,435,484.69 173,505,923.37 204,137,265.86 210,007,188.89 208,564,582.77

140

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

equity investments

in joint ventures

Buinsess incme 111,790,599.41 230,951,536.63 124,080,732.78 71,517,295.42 82,267,976.87 106,414,977.95 205,492,811.90 118,131,984.73 81,660,482.24 46,518,656.73

Net profit 48,844,131.82 45,616,389.11 49,684,621.82 3,931,224.57 44,169,388.24 40,699,196.38 23,496,720.59 39,904,996.63 12,866,914.80 27,503,000.00

Total

comprehensive 48,844,131.82 45,616,389.11 49,684,621.82 3,931,224.57 44,169,388.24 40,699,196.38 23,496,720.59 39,904,996.63 12,866,914.80 27,503,000.00

income

Other notes

The project amount for the balance sheet in the previous period is the timing indicator on December 31, 2016, and the project amount in the income statement is

that from January to June, 2016.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(4) Summary financial information of insignificant joint venture or associated enterprise

Nil

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the

Company

Nil

(6)The excess loss of joint venture or associated enterprise

Nil

(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 statements

Notes:

Nil

6.Other

Nil

X. Risks Related to Financial Instruments

The major financial instruments of the company include monetary capital, accounts receivable and accounts

payable. These financial instruments are primarily related to operating and financing. For the details of the

financial instruments, please refer to the related projects in Notes 5. The risk relevant to these financial

instruments and the risk management policy adopted by the company for reducing these risks are described as

below:

1. Credit Risk

The credit risk means that the party of the financial instrument fails to perform the obligations, and the risk of the

financial loss is caused for the other party. The company is mainly facing the customer credit risk due to the credit

sale. In order to reduce the credit risk, the company only makes transactions with the recognized and reputable

customers, and carries out the continuous monitoring of accounts receivable through monitoring the credit of the

existing customers and the aging analysis, in order to ensure the company not facing the risk of bad debts and

control the overall credit risk within the controllable range.

2. Interest Rate Risk

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

The interest rate risk refers to the fluctuation risk appearing for the fair value of financial instruments or future

cash flows due to the changes in market interest rate. The interest rate risk faced by the company is mainly from

the bank borrowings. Through the establishment of good relations between banks and enterprises, the company

makes the reasonable design of credit range, credit variety and credit limit to guarantee the sufficient credit range

of the banks and meet the financing demands. Shortening the duration of single borrowings and especially stating

the prepayment terms is to reasonably reduce the risk of the interest rate fluctuations.

3. Foreign Exchange Risk

The foreign exchange risk refers to the fluctuation risk appearing for the fair value of financial instruments or

future cash flows due to the changes in foreign exchange rate. The company matches the income and expenditure

of foreign currency as far as possible in order to reduce the foreign exchange risk. During the reporting period, the

company has little effect on the foreign exchange risk due to the short credit term of revenue and expenditure

related to the foreign currency.

4. Liquidity Risk

The liquidity risk means that the risk of the shortage of funds occurs when the settlement obligations by the

delivery of the cash or other financial assets are fulfilled by the company. The policy of the company is to ensure

the sufficient cash for repaying the matured debts. The liquidity risk is under the centralized control of Finance

department of the company, and Finance department shall guarantee the company having the sufficient funds to

repay the debts under any reasonable forecast through monitoring the cash balance, the marketable securities

available to be cash and the rolling forecast for the cash flow of the next six months.

5. Other Price Risk

The company holds the equity investment of other listed companies, and the management believes that these

investments facing the market price risk is acceptable. For the equity investment of other listed companies held by

the company, please refer to “Available-for-Sale Financial Assets in Article 8 of Consolidated Financial

Statement in Notes 5 of Financial Statements”.

XI. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

In RMB

Closing fair value

Items Fir value measurement Fir value measurement Fir value measurement

Total

items at level 1 items at level 2 items at level 3

I. Consistent fair value

-- -- -- --

measurement

(II)Available-for-sale Financial

952,782,523.20 952,782,523.20

Assets

(2)Equity instrument investment 952,782,523.20 952,782,523.20

Total of Consistent fair value

952,782,523.20 952,782,523.20

measurement

II.Non-continuous measurement fair -- -- -- --

143

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

value

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.

As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank

According to the closing price of June 30, 2017 of RMB 4.05, the final calculation of fair value was

RMB952,782,523.20.

3. Valuation technique adopted and nature and amount determination of important parameters for

consistent and inconsistent fair value measurement items at level 2.

Nil

5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and

closing book value of consistent fair value measurement items at level 3.

Nil

5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and

closing 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 conversion

happens among consistent fair value measurement items at different levels

Nil

7. Changes in the valuation technique in the current period and the reason for change

Nil

8. Fair value of financial assets and liabilities not measured at fair value

Nil

9.Other

Nil

XII. Related parties and related-party transactions

1. Parent company information of the enterprise

The parent company

Name Registered address Nature Redistricted The parent company

of the Company's

144

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

capital(RMB’0000) shareholding ratio of the Company’s

vote ratio

Equity management,

No. 27,

Guangdong traffic infrastructure

communication Baiyun Road,Yuexiu construction and 26,800 million 24.55% 50.11%

Group Co., Ltd District , railway project

Guangzhou. operation

Notes :

Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Deng

Xiaohua. Date of establishment: June 23, 2000. As of June 30, 2017,Registered capital: RMB 26.8 billion. It is a

solely state-owned limited company. Business scope:equity management, organization of asset reorganization and

optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stock

system transformation, project investment, operation and management, traffic infrastructure construction, highway

and railway project operation and relevant industries, technological development, application, consultation and

services, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses

(if the above mentioned business scope requires licenses to operate, then operation licenses are required).

The finial control of the Company was State owned assets supervision and Administration Commission of

Guangdong Provincial People's Government.

Other notes:

2.Subsidiaries of the Company

Subsidiaries of this enterprise, see Note IX the rights of other entity

3. Information on the joint ventures and associated enterprises of the Company

The details Notes IX of significant joint venture and associated enterprise 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 Changda highway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company

Guangdong East Thinking Management Technology

Fully owned subsidiary of the parent company

Development Co., Ltd.

145

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Name Relation with the Company

Controlled by the same parent company and equity participation

Jingzhu Expressway Guangzhu Section Co., Ltd.

unit

Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Guangle Expressway Co.,Ltd. Fully owned subsidiary of the parent company

Guangdong Guanghui Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Shenshan west Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Yunwu Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Taishan Coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company

Yunfu Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Yuzhan Expressway Co., Ltd. Fully owned subsidiary of the parent company

Zhaoqing Guanghe Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong West coastal Expressway Taoshan Section Co.,

Fully owned subsidiary of the parent company

Ltd.

Guangdong West coastal Expressway Yangjiang Section Co.,

Fully owned subsidiary of the parent company

Ltd.

Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Zhanxu Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Baomao Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Chaohui Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Guangfozhao Expressway Co., Ltd. Fully owned subsidiary of the parent company

Controlled by the same parent company and equity participation

Guangdong Guangzhu West Expressway Co., Ltd.

unit

Controlled by the same parent company and equity participation

Guangdong Humen Bridge Co., Ltd.

unit

Guangdong Jiangzhong Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company

Guangdong West coastal Expressway Xinhui Section Co., Ltd. Fully owned subsidiary of the parent company

Guangdong West coastal Expressway Zhuhai Section Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Yueyun Communication Co., Ltd. Fully owned subsidiary of the parent company

Guang –Shen-Zhu Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Xinlu Adverting Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Tongyi Expressway Service Area Co., Ltd Fully owned subsidiary of the parent company

146

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Name Relation with the Company

Guangdong Litong Real Estate Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Road & Bridge Construction Development Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Meihe Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Two Guang Expressway Co., Ltd. Fully owned subsidiary of the parent company

Heyuan Helong Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Yuedong Expressway Industry Development Co.,

Fully owned subsidiary of the parent company

Ltd.

Guangdong Hehui Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Pingxing Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Gaoda Property Development Co., Ltd. Fully owned subsidiary of the parent company

Other notes

5. List of related-party transactions

(1)Information on acquisition of goods and reception of labor service

Acquisition of goods and reception of labor service

In RMB

Content of related Amount of Amount of previous Over the trading Amount of last

Related parties

transaction limit or not? period

current period period

Guangdong Changda highway

Project fund 4,238,698.53 5,106,838.40

Co., Ltd.

Guangdong Expressway Co., Expansion

922,029.51

Ltd. management fee

Calculate the

Guangdong Maozhan

weight of car 50,750.00

Expressway Co., Ltd.

rental

Guangdong Litong Technology

Project fund 203,850.00 158,850.00

Investment Co., Ltd.

Guangdong Xinyue

Project fund 55,800.00 36,000.00

Communication Investment

Co., Ltd.

Guangdong Highway

Interest 37,356,795.08

Construction Co., Ltd.

Ganzhou Gankang Expressway Interest 1,051,109.99 1,180,876.67

147

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Content of related Amount of Amount of previous Over the trading Amount of last

Related parties

transaction limit or not? period

current period period

Co.,Ltd.

Guangdong Changda highway

Project fund 1,924,312.81

Co., Ltd.

Guangdong Xinyue

Communication Investment Co., Project fund 36,761.81

Ltd

Guangdong East Thinking

Management Technology Service 178,066.11

Development Co., Ltd.

Guangdong Changda highway

Project fund 634,217.37 338,293.60

Co., Ltd.

Related transactions on sale goods and receiving services

In RMB

Amount of current period Amount of previous

Related party Content

period

Jingzhu Expressway Guangzhu North section Co., Commission

7,852,830.20 8,190,490.55

Ltd. management fee

Guangdong Expressway Co., Ltd. Project fund 2,094,489.63 2,062,650.00

Guangdong Kaiyang Expressway Co., Ltd. Project fund 235,922.47 224,035.68

Guangdong Guangle Expressway Co., Ltd. Project fund 200,943.40

Guangdong Guanghui Expressway Co., Ltd. Project fund 147,169.81 303,890.00

Guangdong Shenshan West Expressway Co., Ltd. Project fund 75,000.00

Guangdong Yangmao Expressway Co., Ltd. Project fund 51,000.00

Guangdong Maozhan Expressway Co., Ltd. Project fund 91,500.00

Guangdong Yunwu Expressway Co., Ltd. Project fund 108,962.26 66,000.00

Guangodng Taishan Coastal Expressway Co., Ltd. Project fund

Guangyun Expressway Co., Ltd. Project fund 28,301.89 13,500.00

Guangdong Yuzhan Expressway Co., Ltd. Project fund 85,500.00

Zhaoqing Guangmao Expressway Co., Ltd. Project fund 53,773.58

Zhaoqing Yuezhao Highway Co., Ltd. Project fund 192,452.83 52,500.00

Guangdong West coastal Expressway Taishan

Project fund 84,000.00

Section Co., Ltd.

148

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount of current period Amount of previous

Related party Content

period

Guangdong West coastal Expressway Yangjiang

Project fund 30,000.00

Section Co., Ltd.

Guangdong Zhaoyang Expressway Co., Ltd. Project fund 60,000.00

Guangdong Zhanxu Expressway Co., Ltd. Project fund 91,500.00

Guangdong Baomao Expressway Co., Ltd. Project fund 90,000.00

Guangdong Boda Expressway Co., Ltd. Project fund 106,132.08

Guangdong Chaohui Expressway Co., Ltd. Project fund 192,452.83

Guangdong Guangfozhao Expressway Co., Ltd. Project fund 141,509.43

Guangdong Guangzhu west Expressway Co., Ltd. Project fund 449,056.61

Guangdong Humen Bridge Co., Ltd. Project fund 19,811.32

Guangdong Jiangzhong Expressway Co., Ltd. Project fund 83,490.57

Guangdong Litong Technology Investment Co.,

Project fund 95,000.00

Ltd.

Guangdong West coastal Expressway Xinhui

Project fund 7,075.47

Section Co., Ltd.

Guangdong West coastal Expressway Zhuhai

Project fund 107,547.17

Section Co., Ltd.

Guangdong Xinyue Communication Investment

Project fund 259,260.13

Co., Ltd

Guangdong Yueyun Conunication Co., ltd. Project fund 51,415.10

Guang-Shen-Zhu Expressway Co., Ltd. Project fund 594,339.64

Shenzhen Huiyan Expressway Co., Ltd. Project fund 64,622.64

Notes

(2)Related trusteeship/contract

Nil

(3)Information of related lease

The Company was lessor:

In RMB

The lease income confirmed in The lease income confirmed in

Name of lessee Category of lease assets

this year last year

Guangdong Xinlu Advertising Co., Ltd. Advertising lease 1,151,248.50 73,843.20

149

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Guangdong Tongyi Expressway Service

Service Area Lease 1,689,033.25 1,857,376.40

Area Co., Ltd.

The company was lessee:

In RMB

The lease income confirmed in

Lessor Category of leased assets Category of leased assets

this year

Guangdong Litong Property Office space

4,900,613.34 4,410,552.00

Investment Co., Ltd

Guangdong Guanghui Advertising column lease

696,800.00

Expressway Co., Ltd.

Guangdong Highway Office space

109,182.36 77,631.84

Construction Co., Ltd.

Notes

(4)Related-party guarantee

The Company was Guarantor

Nil

The Company was secured party

In RMB

Execution accomplished

Guarantor Guarantee amount Start date End date

or not

Guangdong

Communication Group 1,500,000,000.00 September 25,2012 July 25,2021 No

Co., Ltd.

Notes:

Controlling shareholder Guangdong Communication Group Co., Ltd. accepted Pacific Asset Management Co.,

Ltd. insurance debt investment plan to provide joint liability guarantee of principal and interest in full and

unconditional irrevocable. The company held Fokai Expressway Co., Ltd. 75% stake in Guangdong

Communication Group Co., Ltd. to provide a counter-guarantee.

(5) Inter-bank lending of capital of related parties

Nil

150

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(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 2,058,400.00 1,908,000.00

(8) Other related-party transactions

Items

Amount of current period Amount of previous period

Balance of Deposit

Interest Income 1,864,277.66

Refer to deposit interest rate at the corresponding period of Bank of China

Pricing Principle

The Company's subsidiary, Jingzhu Expressway Guangzhu Section Co., Ltd. signed a cancellation agreement

with Guangdong Communications Group Finance Co., Ltd. on June 29, 2016, and transferred out the balance of

funds deposited with Guangdong Communications Group Finance Co., Ltd.

- Approved by the “Reply on Approving Guangdong Provincial Expressway Development Co., Ltd Issue of Share

and Cash to Buy Assets and Raise Matching Funds to Guangdong Provincial Expressway Co., Ltd. ”of CSRC’s

Permission [2016] No.230, the Company purchased the creditor’s rights with RMB 987,903,684.98 in Jingzhu

Expressway Guangzhu Section Co., Ltd. from Guangdong Provincial Expressway Co., Ltd. on June 2016

-On June 15, 2016,The company’s 29th meeting (Provisional) of the seventh board of directors was convened.

The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of

Sanbao-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 of

Shengyang-to-Haikou National Expressway, and handling the related matters of the entrustment of the

construction management.

6. Receivables and payables of related parties

(1)Receivables

In RMB

151

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount at year end Amount at year beginning

Name Related party

Balance of Book Bad debt Provision Balance of Book Bad debt Provision

Guangdong Xinyue

Account receivable Communication Co., 4,025,036.61 90,962.37 5,333,036.61

Ltd.

Guangdong Humen

Account receivable 22,370,278.73 5,095,878.42

Bridge Co., Ltd.

Jingzhu Expressway

Account receivable Guangzhu Section 4,195,124.99 4,812,500.02

Co., Ltd.

Guangdong Litong

Account receivable Technology 100,177.00 813,200.00

Investment Co., Ltd.

Guangdong West

coastal Expressway

Account receivable 298,194.00 18,419.40 259,194.00 18,419.40

Zhuhai Section Co.,

Ltd.

Guangdong Kaiyang

Account receivable Expressway Co., 420,449.97 4,425.00 178,414.29

Ltd.

Guangdong

Account receivable Expressway Co., 2,250,650.00 2,937.50 117,500.00

Ltd.

Guangdong

Account receivable Expressway Co., 41,610.00 3,411.00 50,610.00 3,411.00

Ltd.

Guangdong

Guanghui

Account receivable 155,999.00

Expressway Co.,

Ltd.

Guang-Shen-Zhu

Account receivable Expressway Co., 189,000.00

Ltd.

Guangdong Boda

Account receivable Expressway Co., 112,500.00

Ltd.

Guangdong

Jiangzhong

Account receivable 88,500.00

Expressway Co.,

Ltd.

152

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount at year end Amount at year beginning

Name Related party

Balance of Book Bad debt Provision Balance of Book Bad debt Provision

Guangdong Yueyun

Account receivable Communication Co., 21,500.00

Ltd.

Guangdong

Guangzhu West

Account receivable 248,000.00

Expressway Co.,

Ltd.

Guangdong Guangle

Account receivable Expressway Co., 213,000.00

Ltd.

Zhaoqing Yuezhao

Account receivable 204,000.00

Highway Co., Ltd.

Guangdong Chaohui

Account receivable Expressway Co., 204,000.00

Ltd.

Guangdong

Guangfozhao

Account receivable 150,000.00

Expressway Co.,

Ltd.

Guangdong Yunwu

Account receivable Expressway Co., 115,500.00

Ltd.

Shenzhen Huiyan

Account receivable Expressway Co., 68,500.00

Ltd.

Zhaoqing Guanghe

Account receivable Expressway Co., 57,000.00

Ltd.

Yunfu Guangyun

Account receivable Expressway Co., 30,000.00

Ltd.

Guangdong Litong

Prepayable account Property Investment 700,087.62

Co., Ltd.

Zhaoqing Yuezhao

Prepayable account 131,250.00 131,250.00

Highway Co., Ltd.

Guangdong Tongyi

Other Account 9,170,589.80

Expressway Service

153

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount at year end Amount at year beginning

Name Related party

Balance of Book Bad debt Provision Balance of Book Bad debt Provision

receivable Area Co., ltd.

Other Account Guangdong Xinlu

1,589,781.22 1,589,781.22

receivable Advertising Co., Ltd

Guangdong Litong

Other Account

Property Investment 35,680.00 1,435,856.00

receivable

Co., Ltd.

Guangdong

Other Account Guanghui

1,112,967.45 1,140,901.90

receivable Expressway Co.,

Ltd.

Other Account Guangdong

656,754.05 821,759.56

receivable Expressway Co., ltd.

Guangdong

Other Account

Expressway Co., ltd. 419,326.00 419,326.00

receivable

Zhaoqing Guanghe

Other Account

Expressway Co., 163,620.63 202,257.23

receivable

Ltd.

Guangdong Xinyue

Other Account

Communication 168,562.60 168,562.60

receivable

Investment Co., Ltd.

Guang-Shen-Zhu

Other Account

Expressway Co., 121,280.00 146,737.75

receivable

Ltd.

Guangdong Kaiyang

Other Account

Expressway Co., 109,943.37

receivable

Ltd.

Guangdong

Other Account Highway

76,563.00 84,575.88

receivable Construction Co.,

Ltd.

Guangdong Jingzhu

Other Account Expressway

55,694.00 55,694.00

receivable Guangzhu North

Section Co., Ltd.

Other Account Guangdong Guangle

4,832.00 51,029.05

receivable Expressway Co.,

154

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount at year end Amount at year beginning

Name Related party

Balance of Book Bad debt Provision Balance of Book Bad debt Provision

Ltd.

Guangdong Boda

Other Account

Expressway Co., 45,480.00 45,735.46

receivable

Ltd.

Guangdong

Other Account Yangmao

35,214.28

receivable Expressway Co.,

Ltd.

Guangdong West

Other Account Coastal Expressway

31,945.45 31,945.45

receivable Zhuhai section Co.,

Ltd.

Guangdong

Other Account Jiangzhong

19,708.00 20,607.68

receivable Expressway Co.,

Ltd.

Guangdong Road &

Other Account Bridge Construction

9,327.70 12,669.38

receivable Development Co.,

Ltd.

Guangdong

Other Account Maozhan

11,402.00

receivable Expressway Co.,

Ltd.

Yunfu Guangyun

Other Account

Expressway Co., 9,269.17

receivable

Ltd.

Other Account Guangdong Humen

8,338.00 8,692.22

receivable Bridge Co., Ltd.

Guangdong Yunwu

Other Account

Expressway Co., 6,811.45

receivable

Ltd.

Guangdong West

Other Account Coastal Expressway

3,790.00 3,790.00

receivable Xinhui Section Co.,

Ltd.

Other Account Guangdong Yueyun

3,032.00 3,032.00

receivable Communication Co.,

155

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount at year end Amount at year beginning

Name Related party

Balance of Book Bad debt Provision Balance of Book Bad debt Provision

Ltd.

Guangdong Meihe

Other Account

Expressway Co., 1,780.00

receivable

Ltd.

Guangdong Two

Other Account

Guang Expressway 1,585.66

receivable

Co., Ltd.

Heyuan Helong

Other Account

Expressway Co., 1,180.74

receivable

Ltd.

Guangdong Yuedong

Other Account Expressway Industry

367.45

receivable Development Co.,

Ltd.

Guangdong Chaohui

Other Account

Expressway Co., 342.29

receivable

Ltd.

Guangdong Hehui

Other Account

Expressway Co., 188.53

receivable

Ltd.

Guangdong

Other Account Zhaoyang

186.11

receivable Expressway Co.,

Ltd.

Guangdong Pingxing

Other Account

Expressway Co., 111.05

receivable

Ltd.

Guangdong

Other Account Guangzhu West

166,585.00 6,594.60

receivable Expressway Co.,

Ltd.

Guangdong Gaoda

Other Account Property

9,940.70

receivable Development Co.,

Ltd.

Guangdong Changda

Other Account

Highway 7,748.00

receivable

Engineering Co.,

156

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount at year end Amount at year beginning

Name Related party

Balance of Book Bad debt Provision Balance of Book Bad debt Provision

Ltd.

Guangdong Litong

Other Account

Technology 5,273.00

receivable

Investment Co., Ltd.

Guangdong Changda

Other Non-Current Highway

65,037.01 455,259.04

Assets Engineering Co.,

Ltd.

Guangdong Xinyue

Other Non-Current

Communication 4,588.15 4,588.15

Assets

Investment Co., Ltd

(2)Payables

In RMB

Amount at year end Amount at year beginning

Name Related party

Guangdong Highway Construction Co.,

Account payable 75,980,021.00 133,928,111.00

Ltd.

Guangdong Changda Highway

Account payable 3,940,228.29 21,464,454.62

Engineering Co.,Ltd.

Account payable Guangdong Expressway Co., Ltd. 8,746,491.18 8,746,491.18

Guangdong Xinyue Communication

Account payable 3,478,650.65 4,342,684.85

Investment Co., Ltd

uangdong Hualu communication

Account payable 572,189.89 2,492,830.89

Technology Co., Ltd.

Account payable Guangdong Lulutong Co., Ltd. 136,500.00

Account payable Zhaoqing Yuezhao Highway Co., Ltd. 19,500.00

Guangdong Litong Technology

Account payable 158,850.00

Investment Co., Ltd.

Interest payable Ganzhou Gankang Expressway Co., Ltd. 71,371.67

Guangdong Xinyue Communication

Advances account 160,000.00

Investment Co., Ltd.

Guangdong Changda Highway

Other Payable account 12,050,680.14 42,399,234.18

Engineering Co.,Ltd.

Guangdong Xinyue Communication

Other Payable account 1,241,574.70 2,036,630.68

Investment Co., Ltd.

157

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount at year end Amount at year beginning

Name Related party

Guangdong Litong Technology

Other Payable account 448,542.95 448,542.95

Investment Co., Ltd.

Guangdong Hualu Communication

Other Payable account 62,894.40 207,736.40

Technology Co., Ltd.

Guangdong Hualu Communication

Other Payable account 224,674.26 140,100.65

Technology Co., Ltd.

Other Payable account Guangdong Xinlu Adverting Co., Ltd. 70,000.00 70,000.00

Other Payable account Guangdong Expressway Co., Ltd. 63,398.31

Guangdong Tongyi Expressway Service

Other Payable account 120,000.00 20,000.00

Area Co., Ltd.

Other Payable account Guangdong Lulutong Co., Ltd. 17,249.80 17,249.80

Guangdong Litong Information

Other Payable account 16,376.20 16,376.20

Technology Investment Co., Ltd.

Guangdong West Coastal Expressway

Other Payable account 2,667.96

Co., Ltd.

Guangdong Jingzhu Expressway

Other Payable account 93,575.00 1,172.00

Guangzhu North Section Co., Ltd.

Guangdong Baomao Expressway Co.,

Other Payable account 662.16

Ltd.

Guangdong Jiangzhong Expressway Co.,

Other Payable account x 289.81

Ltd.

Guangdong Road & Bridge Construction

Other Payable account 270.72

Development Co., Ltd.

Guangdong Highway Construction Co.,

Other Payable account 14,951.83 176.02

Ltd.

Guangdong Shanfen Expressway Co.,

Other Payable account 110.35

Ltd.

Non current liabilities due

Ganzhou Gankang Expressway Co., Ltd. 50,000,000.00

within one year

Non current liabilities due

Subtotal 50,000,000.00

within one year

158

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

7. Related party commitment

See XIV Commitments and Contingency

XIII. 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 date

(1)On June 15, 2016, the Company’s 29th meeting (Provisional) of the seventh board of directors was convened.

In the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltd pertaining to the

Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway

was examined and approved, agreed that based on the approved total investment amount by relevant government

department, then the company’s subsidiary- Guangdong Fokai Expressway Co., Ltd carries out the investment and

construction of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou

National Expressway; the company increases funding for Guangdong Provincial Fokai Expressway Co., Ltd

pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou

National Expressway, with the contributed funds as a proportion of 35% of the total investment amount approved

by relevant government department. The afore-said item had been examined and approved in the first

extraordinary general shareholder meeting, The Company had received the approval of the National Development

and Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section Rebubuilding and

Expansion Project(NO.187-2016-NDRC Infrastructure Document)from Guangdong Provincel Development and

reform Commission On October 11, 2016, agreed with the implementation of the Guangdong Provincial

Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the total investment of

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

this project is about RMB 3.513 billion(the static investment is about RMB 3.289 billion), of which the project

capital is RMB 1.23 billion that accounts for 35% of the total investment and such amount of the project capital

will be provided by Guangdong Provincial Fokai Expressway Co., Ltd, and the rest amount of RMB 2,283 billion

will be solved by using bank loans.

According to the "Official Reply to the preliminary design of reconstruction and extension project of

Guangdong Sanbao to Shuikou Road by Ministry of Transport" (No.73-2017 Transport Road Document) issued

by Guangdong Provincial Department of Transport, the Ministry of Transport checked and ratified that the general

estimate of the preliminary design of reconstruction and extension project of Guangdong Sanbao to Shuikou Road

is RMB 3.426 billion. As of June 30, 2017, The accumulated expenses occurred of Guangdong Fokai Expressway

Co.,Ltd was RMB 559,681,300.

⑵On July 7, 2016, the Company’s 31st meeting (Provisional) of the seventh board of directors was convened.

In the meeting, the Proposal on the Company’s Subscription of the Non-publicly Issued A-shares by Guoyuan

Securities Co.,Ltd was examined and approved, agreed that the company shall not invest more than RMB 0.8

billion for the subscription of the non-publicly issued A-shares by Guoyuan Securities Co.,Ltd. The matter was

examined and approved at the Third provisional shareholders' general meeting in 2016 on August 4, 2016. As of

June 30,2017, the company has not yet invested.

2. Contingency

(1) Significant contingency at balance sheet date

This matter. did not occur in this accounting period.

(2) The Company have no significant contingency to disclose, also should be stated

There was no significant contingency in the Company.

3.Other

XV. Enents after balance sheet date

1. Significant events had not adjusted

The 8th session (temporary) of the 8th Board of Directors for the company is convoked in April 7, 2017,

which deliberates and approves the Program on the Acquisition and Merger of Guangdong Fokai Expressway Co.,

Ltd. by Guangdong Expressway Development Co., Ltd., agrees on such company acquisition and merger of the

wholly-owned subsidiary Guangdong Fokai Expressway Co., Ltd.; and authorizes the management team to handle

all issues related to such acquisition and merger including but not limited to signing on the acquisition and merger

agreement, handling of relevant assets and personnel transfer and handling of the industrial and commercial

registration of changes, etc. Such authority is valid for the long term before completion of all relevant issues for

the acquisition and merger. Such issue is already approved by the general meeting of shareholders in 2016. Until

the end of the report date, the company has already established Fokai company as a subsidiary of Guangdong

Expressway Development Co., Ltd. and received assets and business of Guangdong Fokai Expressway Co., Ltd.

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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

2.Profit distribution

Nil

3.Sales return

Nil

4.Notes of other significant event after balance sheet date

Nil l

XVI.Other significant events

1.The accounting errors correction in previous period

This matter. did not occur in this accounting period. During the reporting period.

2.Debt restructuring

This matter. did not occur in this accounting period. During the reporting period.

3.Replacement of assets

This matter. did not occur in this accounting period. During the reporting period.

4.Pension plan

The company does not disclose the pension plan undisclosed matter should exist.

5.Discontinuing operation

This matter. did not occur in this accounting period. During the reporting period,.

6. Segment information

(1) Recognition basis and accounting policies of reportable segment

The company's business for the Guangfo Expressway , the Fokai Expressway and Jingzhu Expressway Guangzhu

Section toll collection and maintenance work, the technology industry and provide investment advice, no other

nature of the business, no reportable segment.

2.Other important transactions and events have an impact on investors decision-making

(1)The toll collection period of Jiujiang Bridge of No. 325 National Highway owned by Jiujiang Bridge

161

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Branch of Guangdong Fokai Expressway Co., Ltd., a controlled subsidiary of the Company, which was approved

by Ministry of Communications, is 30 years. Up to the present, the accumulative toll collection period is 25 years.

According to the Notice of Relevant Matters Concerning Quickening Special Clearing of Toll Highways in

Guangdong Province (Yue Jiao Ming Dian (2013) No. 56 Document), the rectification measure proposed for

Jiujiang Bridge is "toll collection period shall be no more than 20 years". The result of rectification is "toll

collection shall be cancelled due to the expiration of toll collection period." As required by this document, Jiujiang

Bridge will stop toll collection from 24:00 of June 30, 2013. Jiujiang Bridge is a construction project in which an

enterprise under provincial administration invested. As for relevant problems occurred after rectification, the

Provincial State-owned Assets Commission shall coordinate in handling such problems according to the

requirements of the document.

In view of the cancellation of tolls, the relevant assets on Jiujiang Bridge are neither owned or controlled by

the company, nor brings any economic benefits to enterprise in future. According to the provision of Accounting

Standards, the company has made disposal of the assets at the end of 2013, and the relevant losses have been

recorded into the annual expenses outside of operation in 2013.

In May 2014, the company received Guangdong Provincial People's Government Office documents on the

opinions of the compensation for cancellation fee of Jiujiang Bridge as follow. The loss to the company resulted

from the early cancellation of Jiujiang Bridge toll fee will be compensated by Guangdong Communication Group.

The provincial SASAC conjunction with relevant units will examine the compensation amount base on Provincial

Legal Office; work with Provincial Department of Finance to make the compensation arrangements for provincial

government to approve.

Approved by the Jiujiang Bridge early termination fee the amount of loss caused to 140,765,667.68 yuan, to be

divided from 2015 included three years of state-owned capital management budget arrangements. In view of the

recovery period is not yet clear, the company intends to recognized operating income when received.

Fokai Expressway Co., Ltd. had received in advance of Jiujiang Bridge cancellation fees compensate for the loss

of funds RMB 20 million, 60.77 million and 59.9957 million on August 7, 2015 , June 16, 2016 and June 29,2017,

the extra operating income the company has confirmed.

(2)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 the

collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10, 2009, Jiujiang Bridge opened

to traffic has been restored.

On June 19,2007, The Ministry of Communications, the State Production Safety Supervision and

Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15

"Jiujiang Bridge Collision Accident", initially determined the causes of the accident are: the incident ship

suddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain neglected looking out, did not

take proper measures and deviated from the main channel, touched the 325 National Road Jiujiang Bridge the

non-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an uNilateral

responsibility of the ship.

On July 19,2007,Fokai Company applied preservation of property to Guangzhou Maritime Court.On August

22,2007,Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping

Company Limited and Yang Xiong to undertake the conpensation 25,587,684 yuan for the loss caused by

162

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

collapsion of Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to

the (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case

was suspended.

After the court accepted the case, the incident investigation team of Guangdong Provincial Government had

not made the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the

proceeding. In September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed

the proceedings. On December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case.

Currently, Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide,

therefore, on January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. On September 17,

2013, the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings,

the court decided to resume the trial. On December 19, 2013, the Guangzhou Maritime Court opened a court

session, 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 Fokai

Expressway Co., Ltd. toll revenue losses of RMB 19,357,500.96; the court dismissed the plaintiff other aspirations.

The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong Provincial Higher

People's Court ruled on June 5, 2014, the case discontinued proceedings.

By the end of the report period, the abatement of action causes are already removed and the provincial higher court restores the

hearing and conducts the investigation on April 21, 2017.

(3)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial Expressway

Development Co., Ltd. was held of May 10, 2012. The meeting examined and adopted the proposal Concerning

the Company’s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. The

Company was approved to accept the insurance bond investment plan made by Pacific Asset Management Co.,

Ltd. The amount of proceeds to be raised is not more than RMB 1.5 billion . Floating interest rate plus

guaranteed base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic

interest rate of RMB loan with a term of over five years on the day when the investment fund of the insureance

company is transferred into the Company’s account and the corresponding days of the future years, which shall

be adjusted once each year. The guaranteed base interest rate is 5.6%. The concrete amount of raised proceeds

shall be within maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to the

Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan between

Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the

Company to implement the above-mentioned matters.

The Company was approved to provide counter guarantee to Guangdong Communication Group

Co.,Ltd.with 75% equity of Guangdong Fokai Expressway Co., Ltd. Held by it . as of December 31, 2016, the

company has borrowed RMB 1.5 billion.

⑷In accordance with YWJMZZ [2001] No. 547 Reply about the Guangfo Expressway Co., Ltd. Capital

Increase and Change into Chinese-Foreign Cooperative Enterprise and Others issued by Department of Foreign

Trade and Economic Cooperation of Guangdong, the cooperation term for Guangfo will terminate on July 31,

2017. Guangdong People’s Government issued Guangdong People’s Government’s Reply on the Charging Period

for Guangfo Expressway Reconstruction and Expansion Project (YFH [2016] No.156) on June 3, 2016, and

agreed to approve that the charging period for Guangfo Expressway reconstruction and expansion project would

be from the date completion and opening for traffic to December 7, 2021. In accordance with the Reply to Foreign

Shareholders’ Proposal on Extending the Cooperation Period with Guangfo Expressway Co., Ltd.

163

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(YJJT[2017]No. 50) by Guangdong Traffic Group Co., Ltd. on April 7, 2017, it agrees on the cooperation period

extent to December 7, 2019 of Guangfo Expressway Co., Ltd. subject to the existed shareholder’s structure. On

June 27, 2017, Guangfo Expressway Co., Ltd. makes a resolution in the 9th Session of the 8th Board of Directors,

which specifies the cooperation period extent to December 7, 2019 subject to the existed shareholder’s structure.

Guangfo Expressway Co., Ltd. handles the industrial and commercial registration of changes on July 6, 2017 and

the road property with the depreciation subject to the traffic flow is accrued sufficiently in February 2017. The

cooperation period change of Guangfo Expressway Co., Ltd. has non influence on the company business

performance.

⑸On February 5, 2016, the company received the Approval of the Share-Issuing to Parties such as Guangdong

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

Expressway Development Co., Ltd(CSRC No.230-2016 Zheng Jian Xu ke) issued from CSRC; the company’s

scheme on share-issuance for purchasing assets and raising matching funds had been examined and approved by

the Audit Committee of CSRC on Verifying and Approving Mergers, Acquisitions and Restructuring of Listed

Companies. The company has completed asset restructuring in June 2016.

During the profit compensation period, in the case that the actual profits of the underlying company were less

than the committed profits, respectively the counterparts of Guangdong Provincial Expressway Co., Ltd and

Guangdong Provincial Highway Construction Co., Ltd shall assume the obligation of compensation for the profit

difference according to their equity proportion of Guangdong Provincial Fokai Expressway Co., Ltd and

Guangzhou Guangzhu Traffic Investment Management Co., Ltd. The profit compensation period is three years

from 2016-2018.

Agreed by the company and Guangdong Provincial Expressway Co., Ltd, the profits of Fokai Expressway

Co., Ltd in year-2016, year-2017 and year-2018 by estimation shall accordingly be RMB 250.6973 million, RMB

260.0802 million and RMB 403.1197 million, with the aggregated non-recurring gains and losses were expected

to be RMB 105.5743 million. During the compensation period, in the case that the cumulative net profits of Fokai

Expressway Co., Ltd in a certain year realized at the end of the year are less than the estimated cumulative net

profits of the year, the company will, at the price of RMB1.0 per share, buy-back the shares calculated in

accordance with the agreement for the purpose of compensation and those shares will be written off, and if the

amount of compensation exceeds the consideration of those shares being bought-back, Guangdong Provincial

Expressway Co., Ltd will compensate that part in cash. At the expiration of the compensation period, if the

accumulative actual non-recurring gains and losses (referring to the government’s compensation to Guangdong

Provincial Fokai Expressway Co., Ltd due to the cancellation of toll charge of Jiujiang bridge, hereinafter shortly

named as “Jiujiang Bridge Compensation”) of Fokai Expressway Co., Ltd were less than the estimated

accumulative non-recurring gains and losses, Guangdong Provincial Expressway Co., Ltd will, upon the basis of

the stake proportion held by G Fokai Expressway Co., Ltd before the major asset restructuring, compensate in

cash to the company in accordance with the agreement; If it is after the expiration of the compensation period,

every time when Fokai Expressway Co., Ltd received Jiujiang Bridge Compensation, the company should refund

the corresponding part which had been paid by Guangdong Provincial Expressway Co., Ltd for the compensation

in accordance with the agreement to Guangdong Provincial Expressway Co., Ltd within 30 working days started

from the date G Fokai Expressway Co., Ltd received such compensation.

Agreed by the company and Guangdong Provincial Highway Construction Co., Ltd, the profits of

Guangzhou Guangzhu Traffic Investment Management Co., Ltd in year-2016, year-2017 and year-2018 by

estimation shall accordingly be RMB 230.3606 million, RMB 263.2329 million and RMB 286.5018 million.

During the compensation period, in the case that the cumulative net profits of Guangzhou Guangzhu Traffic

Investment Management Co., Ltd realized at the end of the year are less than the estimated cumulative net profits

164

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

of the year, the company will, at the price of RMB1.0 per share, buy-back the shares held by Guangdong

Provincial Highway Construction Co., Ltd with the quantity being calculated upon the agreement for

compensation and those shares will be written off.

Guangdong Fokai Expressway Co., Ltd. in 2016 the actual profit (excluding non-) by RMB 286.1655 million,

more than the commitment to profit more than RMB 35.4682 million; Guangzhou Guangzhu Traffic Investment

Management Co., Ltd. 2016 annual profit of RMB 271.7759 million, More than the commitment to profit more

than RMB 41.4153 million.

⑹On July 15, 2016, the company received the writing notice from Yadong Fuxing Investment Co.,Ltd-one of the

company’s shareholders. Yadong Fuxing had signed the Financing Agreement by Pledging A-shares of

Guangdong Provincial Expressway Development Co.,Ltd with Guotai Junan Securities Co., Ltd, of which Yadong

Fuxing pledged 202,429,000 shares that account for 9.68% of the company’s total share capital to Guotai Junan

Securities Co., Ltd, which was mainly for the enterprise financing, with the pledge period started from July 13,

2016.

As of the date this financial report was approved for disclosure, Yadong Fuxing Company holds 202,429,149

A-shares of the company that account for 9.68% of the company’s total share capital, of which 202,429, 000

shares-9.68% of the company’s total share capital were pledged, and the pledged shares account for 99.99993% of

the total shares of the company held by Yadong Fuxing.

165

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

XVII..Notes s of main items in financial reports of parent company

1.Other account receivable

(1)Other account receivable classified by category

In RMB

Year-end balance Year-beginning

Book balance Provision for bad debts Book balance Provision for bad debts

Classification Proporti Proporti

Proportio Proportio Amount Proportio Proportion( Amount

Amount Amount on(%)

Amount Amount on(%)

n(%) n(%) n(%) %)

Other Account receivable with single major

amount and withdrawal bad debt provision 32,084,893.35 79.89% 32,084,893.35 100.00% 32,084,893.35 89.20% 32,084,893.35 100.00%

for single item

Other Account receivable withdrawal bad

debt provision by group of credit risk 8,077,335.07 20.11% 1,533,987.26 18.99% 6,543,347.81 3,884,252.50 10.80% 1,533,987.26 39.49% 2,350,265.24

characteristics

Total 40,162,228.42 100.00% 33,618,880.61 83.71% 6,543,347.81 35,969,145.85 100.00% 33,618,880.61 93.47% 2,350,265.24

Other Receivable accounts with large amount individually and bad debt provisions were provided

√Applicable □Not applicable

In RMB

Balance at year-end

Name Other Provision for Proportion

Reason

receivable bad debts %

Kunlun Securities 32,084,893.35 32,084,893.35 100.00% For the balance amount of our company’s secutity trading settlement funds RMB 33,683,774.79 deposited in Kunlun Securities Co., Ltd., The

166

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Co., Ltd. Xin’Ning Municipal intermediate People’s Court of Qinghai Province had made the judgment in accordance with the law and declared on November

11, 2006. that Kunlun Securities Co., ltd. was bankrupted for debt payment . In March of 2007, the liquidating group of Kunlun Securities preliminary

judged the relationship between our company and Kunlun Securities Co., Ltd.is debtor creditor relationship . as Kunlun Securities Co., Ltd.was

bankrupted for debt payment and it is in serious insolvency. Our company had moved the security trading settlement funds deposited in Kunlun

Securities Co., Ltd, to other receivables account for reflection, we also have made full amount provision for had debts based on conservatism

principle. The recovered debt amount in 2008 is RMB485,392.67 which had been offset from the provision for bad debts. The recovered debt amount

in 2011 is RMB 667,959.27 which had been offset from the provision for bad, The recovered debt amount in 2014 is RMB 445,529.50 which had

been offset from the provision for bad debts.debts.

Total 32,084,893.35 32,084,893.35 -- --

167

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:

√Applicable □Not applicable

In RMB

Balance at year-end

Aging

Other receivable Provision for bad debts Proportion%

Subitem within 1 year

Within 1 year 1,104,396.11

Subtotal within 1 year 1,104,396.11

1-2 years 10.00%

2-3 years 30.00%

3-4 years 50.00%

4-5 years 90.00%

Over 5 years 1,533,987.26 1,533,987.26 100.00%

Total 2,638,383.37 1,533,987.26 58.14%

Notes

Refer to "Notes 5 the financial statements of the important accounting policies and accounting estimates

In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:

□ Applicable √ Not applicable

In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:

√ Applicable □Not applicable

Balance at year-end

Name Other receivable Bad debt Proportion(%) Reason

provision

Beijing Shibang Weilishi Property Management 393,331.00 Deposit

Services Co., Ltd.

Guangdong Gaoda Property Development 9,940.70 Deposit

Development Co., Ltd.

Guangdong Litong Real estate Investment Co., 35,680.00 Deposit

Ltd.

Hunan Tendering Co., Ltd. 5,000,000.00 Guarantee

Total 5,438,951.70

(2)Bad debt provision withdrawal, reversed or recovered in the report period

Nil

168

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(3)Particulars of the actual verification of other accounts receivable during the reporting period

Nil

(4)Other receivables nature of fund classification information

In RMB

Nature Book balance at year end Book balance at year beginning

Securities trading settlement funds balance 32,084,893.35 32,084,893.35

Guarantee deposit 5,438,951.70 1,829,187.00

Other 2,638,383.37 2,055,065.50

Total 40,162,228.42 35,969,145.85

(5)The top five other account receivable classified by debtor at period end

In RMB

Closing balance of

Name Nature Closing balance Aging Proportion%

bad debt provision

Securities trading se Over 5

Kunlun Securities Co., Ltd. 32,084,893.35 79.88% 32,084,893.35

years

ttlement funds

Within 1

Hunan Tendering Co., Ltd. Deposit 5,000,000.00 12.45%

year

Heshan Communication Real Over 5

Current accounts 1,470,000.00 3.66% 1,470,000.00

estate Development Co., Ltd. years

Beijing Shibang Weilishi Property

Deposit 393,331.00 4-5 years 0.98%

Managerment Servises Co., Ltd.

Guangdong Xiangfeng

Within 1

International Travel Service Co., Current accounts 147,289.00 0.37%

year

Ltd.

Total -- 39,095,513.35 -- 97.34% 33,554,893.35

(6)Account receivable involving government subsidies

Nil

(7)Other account receivable derecognized due to the transfer of financial assets

Nil

169

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(8)Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement.

Nil

Other notes:

2. Long- term s equity investment

In RMB

Year-end balance Year-beginning balance

Items Bad debt Bad debt

Book balance Book value Book balance Book value

provision provision

Investment to the

5,165,162,219.66 5,165,162,219.66 5,165,162,219.66 5,165,162,219.66

subsidiary

Investment to

joint ventures and

2,283,902,186.05 2,283,902,186.05 2,220,805,130.31 2,220,805,130.31

associated

enterprises

Total 7,449,064,405.71 7,449,064,405.71 7,385,967,349.97 7,385,967,349.97

(1)Investment to the subsidiary

In RMB

Withdrawn

Closing balance

impairment

Name Opening balance Increase Decrease Closing balance of impairment

provision in the

provision

reporting period

Guangfo

Expressway Co., 154,982,475.25 154,982,475.25

ltd.

Guangdong

Expressway

Technology 95,731,882.42 95,731,882.42

Investment Co.,

Ltd.

Guangdong Fokai

Expressway Co., 3,635,997,210.85 3,635,997,210.85

Ltd.

Guangzhou

Guangzhu

Communication 859,345,204.26 859,345,204.26

Investment

Management Co.,

170

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Ltd.

Jingzhu

Expressway

419,105,446.88 419,105,446.88

Guangzhu Section

Co., Ltd.

Total 5,165,162,219.66 5,165,162,219.66

171

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(2)Investment to joint ventures and associated enterprises

In RMB

Increase /decrease in reporting period

Closing

Adjustme

Withdraw balance

Decrease nt of

Add Other n of

Name Opening balance d other Declaration of cash dividends Closing balance

investmen Gain/loss of Investment equity impairme Other impairme

investmen comprehe or profit

t changes nt nt

t nsive

provision provision

income

I. Joint ventures

Guangdong Guanghui

963,806,710.36 128,289,616.25 81,106,373.29 1,010,989,953.32

Expressway Co., Ltd.

ZhaoqingYuezhao

298,347,974.37 25,096,297.33 55,172,678.59 268,271,593.11

Highway Co., Ltd.

Subtotal 1,262,154,684.73 153,385,913.58 136,279,051.88 1,279,261,546.43

II. Associated enterprises

ShenzhenHuiyan

162,435,484.69 16,281,377.27 178,716,861.96

Expressway Co., Ltd.

Guangdong Jiangzhong

173,505,923.37 6,842,458.37 180,348,381.74

Expressway Co., Ltd.

Ganzhou Kangda

204,137,265.86 14,905,386.55 219,042,652.41

Expressway Co., Ltd.

Ganzhou Gankang

210,007,188.89 1,179,367.37 211,186,556.26

Expressway Co., Ltd.

172

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Guangdong Yueke

Technology Petty Loan 208,564,582.77 6,781,604.48 215,346,187.25

Co., Ltd.

Subtotal 958,650,445.58 45,990,194.04 1,004,640,639.62

Total 2,220,805,130.31 199,376,107.62 136,279,051.88 2,283,902,186.05

173

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

(3)Other notes

3. Business income and Business cost

In RMB

Amount of current period Amount of previous period

Items

Revenue Cost Revenue Cost

Other business 38,224,276.41 232,106.70 10,505,002.81 232,106.70

Total 38,224,276.41 232,106.70 10,505,002.81 232,106.70

Other notes:

4.Investment income

In RMB

Items

Amount of current period Amount of previous period

Long-term equity investment income

707,304,426.29 30,798,695.03

accounted by cost method

Long-term equity investment income

199,376,107.62 215,901,030.71

accounted by equity method

Investment income received from holding of

24,054,256.82 45,697,711.66

available-for –sale financial assets

Total 930,734,790.73 292,397,437.40

XVIII. Supplement information

1. Particulars about current non-recurring gains and loss

√ Applicable □Not applicable

In RMB

Items Amount Notes

Gains/losses from the disposal of

-2,629,016.43

non-current asset

It receives the compensation

Other non-business income and expenditures 59,995,667.68 yuan for early termination

61,828,620.75

other than the above of charging for Jiujiang Bridge in the

current period

The department confirms the deferred

income tax totaling 206,421,769.46 yuan

Less :Influenced amount of income tax -191,689,368.44

for losses of previous years in the current

period

174

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

Amount of influence of minority interests -25,439.34

Total 250,914,412.10 --

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

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

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

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

recurring gains and losses, it is necessary to explain the reason.

□ Applicable √Not applicable

2. Return on equity (ROE) and earnings per share (EPS)

EPS(Yuan/share)

Profit as of reporting period Weighted average ROE (%)

EPS-basic EPS-diluted

Net profit attributable to common

10.55% 0.43 0.43

shareholders of the Company

Net profit attributable to common

shareholders of the Company after

7.58% 0.31 0.31

deduction of non-recurring profit

and loss

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 and

Chinese accounting standards

□ Applicable √Not applicable

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

Chinese accounting standards

□ Applicable √Not applicable

(3) Explain reasons for the differences between accounting data under domestic and overseas accounting

standards, for audit data adjusting differences had been foreign audited, should indicate the name of the

foreign institutions

Nil

4.Other

Nil

175

Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2017

XI. Documents available for inspection

I. Financial Statements signed by and under the seal of the legal representative, chief accountant and accounting

supervisors;

II. All the manuscripts of the Company’s documents and announcements disclosed in the newspapers

designated by China Securities Regulatory Commission.

176

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