Guangdong Provincial Expressway
Development Co., Ltd.
The Semi-Annual Financial Report 2017
August 2017
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
Interest receivable
Dividend receivable 23,054,984.51
Other account receivable 23,067,768.72 25,167,879.53
Repurchasing of financial assets
1
Items At the end of term Beginning of term
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
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with variations
accounted into current income account
2
Items At the end of term Beginning of term
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
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
3
Items At the end of term Beginning of term
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
4
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
5
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
6
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
Interest expense
Fee and commission paid
Insurance discharge payment
7
Items Report period Same period of the previous year
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
accounting period
1.Re-measurement of defined benefit plans of change
s in net debt or net assets
8
Items Report period Same period of the previous year
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
Accounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
9
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.
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
10
Items Report period Same period of the previous year
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
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
11
Items Report period Same period of the previous year
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
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
12
Items Report period Same period of the previous year
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
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
13
Items Amount in this period Amount in last period
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
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
14
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
15
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
16
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
current year
（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
17
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
（III）Profit
-702,510,858.34 -702,510,858.34
allotment
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
18
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
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 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
19
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
20
current year
（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
21
shares)
3．Making up
losses by surplus -188,567,662.20 -10,266,231.67 -198,833,893.87
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
22
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
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
23
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
(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
1.Providing of
surplus reserves
2．Allotment to the
-702,510,858.34 -702,510,858.34
owners (or
24
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
shareholders)
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
25
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
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
26
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
27
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
-188,567,662.20 -188,567,662.20
owners (or
28
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
shareholders)
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
29
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
2．Used this term
（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
30
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,
31
i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May
22, 2001.
11 ． On March 8, 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
32
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
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.
33
3.Operating cycle
An operating cycle for the Company is 12 months, which is also the classification criteria for the liquidity of its
assets and liabilities.
4.Standard currency for 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
34
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
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.
35
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
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
36
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
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
37
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:
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
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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
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.
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11.Accounts Receivable
（1）Accounts receivable with material specific amount and specific provisioned bad debt preparation.
The accounts receivable whose single amount is over RMB 1
Judgment criteria or amount standard of material specific amount million & accounts for over 10% of the accounts receivable
or amount criterial： 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
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No
1.Investories class: The company’s stocks can be classified as: raw materials, inventory goods, low-value
consumables & other materials, etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the
weighted averages method or the first-in first-out method.
3. Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method of Obsolete
Inventory Reserves:After taking stock at the end of the period,
4. Inventory System:Adopts the Perpetual Inventory System
13. Divided as assets held for 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
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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
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
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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
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
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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%
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
44
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.
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.
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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.
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
46
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.
（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,
47
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.
(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
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（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.
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;
49
(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
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
50
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
（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
51
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
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%
52
2.Preferential tax
Nil
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Amount in year-begin
Cash 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
53
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
54
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
55
（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 --
56
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
57
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
Other receivable（Unit） Balance in year-end
58
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 -- --
59
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
60
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
61
Guangdong Litong Technology Investment Co.,Ltd. 5,273.00 Quality guarantees
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
Name Nature Closing balance Aging Proportion of the total Closing
62
year end balance of balance of bad
the accounts debt provision
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
63
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
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
64
Available-for-sale equity Available-for-sale Debt
Type Total
instruments instruments
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
65
(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
66
(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
67
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
68
Gan Ganzhou Gankang
210,007,188.89 1,179,367.37 211,186,556.26
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
69
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
70
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
71
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
72
Guangfo Jingzhu Expressway House and Machinery Transportation Electricity equipment
Items Fokai Expressway Total
buildings equipment equipment
Expressway Guangzhu section and other
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
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
73
Guangfo Jingzhu Expressway House and Machinery Transportation Electricity equipment
Items Fokai Expressway Total
buildings equipment equipment
Expressway Guangzhu section and other
3.Decreased amount
of the period
（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
74
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
75
(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
76
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
77
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
78
Total 1,763,966.07 906,502.02 857,464.05
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
79
Total 103,903,260.75 1,069,270,548.08
（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
80
Items Balance in year-end Unpaid reason
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
81
In RMB
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
82
2.Unemployment
367,100.49 366,722.39 378.10
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
83
Items Year-end balance Year-Beginning balance
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
84
Long-term loans due within 1 year 1,070,610,000.00 907,880,000.00
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
85
Other notes：
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
86
taxes.
Notes 2：In accordance with the company strategical planning and operation decisions in the future, the
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
87
Total 1,440,222,563.74 533,689,845.16 1,333,492,179.77 558,947,473.08
34. Business tax and subjoin
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
88
Total 77,693,914.84 79,766,582.60
Other notes：
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
89
Total gains from disposal of
111,175.47
non-current assets
Including：Gains from disposal
111,175.47
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
90
Total profits 970,572,057.34
Current income tax expense accounted by tax and relevant
242,643,014.32
regulations
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
91
Jiujiang bridge to receive compensation 59,995,667.68 60,770,000.00
Total 59,995,667.68 60,770,000.00
Notes ：
（4）Other Cash payable related to investment activities
In RMB
Items Amount of current period Amount of previous period
Acquisition and construction
987,903,684.98
company 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
92
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
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
93
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
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
94
3. Counter purchase
Nil
4. The disposal of subsidiary
Nil
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
Guangfo Under the same
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.
95
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
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
96
(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
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
Expressway
97
Guangzhu
Section
Co.,Ltd.
Other notes：
98
(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
99
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
100
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
101
(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
102
The book value of
equity investments 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
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.
103
(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.
104
2. Interest Rate Risk
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
105
II.Non-continuous measurement fair
-- -- -- --
value
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of June 30, 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
106
The parent company The parent company
Redistricted
Name Registered address Nature of the Company's of the Company’s
capital(RMB’0000)
shareholding ratio 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
107
Name Relation with the Company
Development Co., Ltd.
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
108
Name Relation with the Company
Guangdong Tongyi Expressway Service Area Co., Ltd Fully owned subsidiary of the parent 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.
109
Content of related Amount of Amount of previous Over the trading Amount of last
Related parties
transaction limit or not? period
current period period
Ganzhou Gankang Expressway
Interest 1,051,109.99 1,180,876.67
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
110
Amount of current period Amount of previous
Related party Content
period
Section Co., Ltd.
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
111
Advertising lease
Guangdong Xinlu Advertising Co., Ltd. 1,151,248.50 73,843.20
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
112
(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.
113
6. Receivables and payables of related parties
（1）Receivables
In RMB
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 112,500.00
Expressway Co.,
114
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
Jiangzhong
Account receivable 88,500.00
Expressway Co.,
Ltd.
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.
Prepayable account Guangdong Litong 700,087.62
115
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Property Investment
Co., Ltd.
Zhaoqing Yuezhao
Prepayable account 131,250.00 131,250.00
Highway Co., Ltd.
Guangdong Tongyi
Other Account
Expressway Service 9,170,589.80
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.
116
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong Jingzhu
Other Account Expressway
55,694.00 55,694.00
receivable Guangzhu North
Section Co., Ltd.
Guangdong Guangle
Other Account
Expressway Co., 4,832.00 51,029.05
receivable
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.
117
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong West
Other Account Coastal Expressway
3,790.00 3,790.00
receivable Xinhui Section Co.,
Ltd.
Guangdong Yueyun
Other Account
Communication Co., 3,032.00 3,032.00
receivable
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.
118
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong Gaoda
Other Account Property
9,940.70
receivable Development Co.,
Ltd.
Guangdong Changda
Other Account Highway
7,748.00
receivable Engineering Co.,
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.
119
Amount at year end Amount at year beginning
Name Related party
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.
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
120
Amount at year end Amount at year beginning
Name Related party
Non current liabilities due
Subtotal 50,000,000.00
within one year
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
121
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
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
122
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.
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.
123
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
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.
124
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
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
125
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.
(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
126
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
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.
127
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 %
128
For the balance amount of our company’s secutity trading settlement funds RMB 33,683,774.79 deposited in Kunlun Securities Co., Ltd., The
Xin’Ning Municipal intermediate People’s Court of Qinghai Province had made the judgment in accordance with the law and declared on November
11, 2006. that Kunlun Securities Co., ltd. was bankrupted for debt payment . In March of 2007, the liquidating group of Kunlun Securities preliminary
judged the relationship between our company and Kunlun Securities Co., Ltd.is debtor creditor relationship . as Kunlun Securities Co., Ltd.was
Kunlun Securities
32,084,893.35 32,084,893.35 100.00% bankrupted for debt payment and it is in serious insolvency. Our company had moved the security trading settlement funds deposited in Kunlun
Co., Ltd.
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 -- --
129
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
130
（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
131
（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.,
132
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
133
（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.
134
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
135
（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
136
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
137
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