Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Report 2018
August 2018
1
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
I. Important Notice, Table of Contents and Definitions
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of the
Company hereby warrant that at the year , there are no misstatement, misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness
of the contents hereof.
Mr.Zheng Renfa, Compant principal , Mr. Wang Chunhua, General Manager ,Mr.Fang Zhi, Chief of the
accounting owrk, Ms.Zhou Fang, Chief of the accounting organ (chief of accounting ) hereby confirm the
authenticity and completeness of the financial report enclosed in this Semi-annual report.
All the directors have attended the meeting of the board meeting at which this report was examined.
The toll revenues of Expressway is main source of the major business income of the company , The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province, autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.
Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments, and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So, the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So, the charging policy changes and charges adjustment will affect the highways operation of the
company.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Table of Contents
I. Important Notice, Table of Contents and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII .Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds
X. Financial Report
XI. Documents available for inspection
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Definition
Terms to be defined Refers to Definition
Reporting period Refers to January 1, 2018 to June 30,2018
The semi annual report of the company was approved by the board of
Reporting date Refers to
directors on 2018, that is, August 27, 2018
YOY Refers to Compared with January-June 2017
The Company /This Company Refers to Guangdong Provincial Expressway Development Co.,Ltd.
Technology Company Refers to Guangdong Expressway Technology Investment Co., Ltd
Guangdong Provincial Expressway Development Co.,Ltd.Fokai
Fokai Company Refers to
Branch
Guangfo Company Refers to Guangdong Guangfo Expressway Co., Ltd.
Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
II. Corporate Profile and Key Financial Indicators
1.Company Information
Stock abbreviation: Expressway A, Expressway B Stock code： 000429、200429
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东省高速公路发展股份有限公司
Abbreviation of Registered
粤高速
Company (if any)
English name (If any) Guangdong Provincial Expressway Development Co.Ltd.
English abbreviation (If any) GPED
Legal Representative \Zheng Renfa
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
46/F, Litong Plaza, No.32, Zhujiang East 45/F, Litong Plaza, No.32, Zhujiang East
Contact address Road, Zhujiang New City, Tihe Disrtict , Road, Zhujiang New City, Tihe Disrtict ,
Guangzhou Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Other
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in annual report 2017.
2. Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2017.
4. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
5
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
□ Yes √No
Reporting period Same period of last year YoY+/-（%）
Operating income（yuan） 1,535,864,145.14 1,440,222,563.74 6.64%
Net profit attributable to the shareholders
779,002,246.98 892,848,012.53 -12.75%
of the listed company（yuan）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 752,917,711.53 641,933,600.43 17.29%
listed company（yuan）
Cash flow generated by business operation,
817,279,588.10 1,022,392,235.37 -20.06%
net（yuan）
Basic earning per share(yuan/Share) 0.37 0.43 -13.95%
Diluted gains per share(yuan/Share) 0.37 0.43 -13.95%
Weighted average income/asset ratio（%） 8.60% 10.55% -1.95%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets（yuan） 15,867,983,183.17 16,523,315,093.72 -3.97%
Shareholders’ equity attributable to
8,674,276,291.67 9,023,071,118.45 -3.87%
shareholders of the listed company（yuan）
5. Differences between accounting data under domestic and overseas accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
6.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
44,464,720.82
for which assets impairment provision is made)
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Amount Notes
Other non-business income and expenditures other than the above 1,075,059.00
Less: Amount of influence of income tax 11,126,311.84
Amount of influence of minority interests(after tax) 8,328,932.53
Total 26,084,535.45 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and
Jingzhu Expressway Guangzhu Section investment in technological industries and provision of relevant
consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co.,
Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Ex
pressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.and
Guangdong Guangle Expressway Co.,Ltd. As of the end of the reporting period, the company’s share-controlled
expressway is 158.12 km, and the share-participation expressway is 684.20 km, and according to the equity ratio,
after the conversion calculation, the total mileage is 273.05 km.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
The increase of 3.91% by the end of the period compared with that of the beginning,
Equity assets Mainly due to the combined influence of the operation accumulation and profit
distribution of the participating units.
The decrease of 6.58% by the end of the period compared with that of the beginning,
Mainly due to the Zhuhai Municipal People's Government taking back the 4.213 km
Fixed assets
expressway of the Zhuhai section of the Guang'ao Expressway, the reduction of the road
production of the Guangzhu East Company, and the depreciation of the road production.
The decrease of 19.99% by the end of the period compared with that of the beginning,
Intangible assets
Mainly due to the impact of amortization of intangible assets.
The increase of 76.79% by the end of the period compared with that of the beginning,
Construction in process
Mainly due to the increase in the construction of the southern section of Fokai Company.
The increase of 699.69% by the end of the period compared with that of the beginning,，
Mainly due to the Zhuhai Municipal People's Government recovering the 4.213 km
Other receivable expressway of the Zhuhai section of the Guang'ao Expressway, and the increase in the
receivables of the Guangzhu East Company by 106 million yuan. The amount was
withdrawn on July 3, 2018.
The decrease of 5.24% by the end of the period compared with that of the beginning,
Available for sale financial assets
Mainly due to the decline in the stock price of Everbright Bank, the value of
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
available-for-sale financial assets measured at fair value.
The increase of 95.29% by the end of the period compared with that of the beginning,
Other Non-current assets Mainly due to the increase and decrease of the prepaid project payment and the increase
of the input tax to be deducted in the southern section of Fokai Company.
The decrease of 16.14% by the end of the period compared with that of the beginning,
Deferred income tax assets Mainly after the parent company absorbed the wholly-owned subsidiary, it made up for
some deductible losses and the deferred income tax assets decreased accordingly
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The toll revenue of expressway industry mainly depends on the regional economic development. The
regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokai
expressway, controlled by the company, are part of the National Expressway Network Planning-“Five vertical and
seven horizontal”, The share-controlled Beijing-Zhuhai Guangzhu Section Expressway is a fast and convenient
expressway.and many of the company’s equity-participation expressways that are part of the main skeleton of the
Guangdong Provincial Expressway Planning-“Ten vertical and five horizontal”, which provides a strong
guarantee for stable traffic volume. Meanwhile, the regional economy is the critical factor that influences the
traffic volume, as Guangdong province is the economically developed region, with years’ continuous high
growth of GDP, so that provides the stable rising demand for the company.
IV. Performance Discussion and Analysis
Ⅰ.General
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
In the first half of 2018, the company, according to the annual business plan established by the board of directors,
soundly did a good job of each work. . In the first half of 2018, the main business income was 1.536 billion yuan,
up by 6.64% over the same period of last year, meaning 47.60% of the annual plan was completed; and the
operating costs was 534 million yuan, Flat year-on-year, representing completed 40.27% of the annual plan.
In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of
the Company are as follows:
Volume of vehicle Increase Toll income in the Increase
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
traffic in the first /Decrease(%) first half year of /Decrease(%
half year of 2018（Ten 2018（Ten thousand）
thousand vehicles）
Guangfo Expressway 2,953.85 1.50% 22,523.45 13.30%
Fokai Expressway 3,281.51 17.32% 63,859.17 8.37%
Jingzhu Expressway Guangzhu 3,642.16 2.99% 63,529.98 2.40%
East Section
Huiyan Expressway 2,046.44 11.95% 12,174.57 9.14%
Guanghui Expressway 2,783.87 10.83% 86,784.97 2.54%
Yuezhao Expressway 1,454.50 7.42% 26,279.69 7.14%
Jiangzhong Expressway 2,574.42 2.84% 22,967.71 5.92%
Guangle Expressway 1,151.82 18.54% 152,842.70 6.41%
Kangda Expressway 127.01 0.02% 11,305.54 -6.73%
Gangkang Expressway 187.22 35.72% 7,677.39 18.87%
Overall situation: During the reporting period, the participating and controlled expressways in Guangdong
Province continued to maintain a steady growth trend, with traffic volume and toll revenue increasing
year-on-year; the traffic volume of two expressways in Jiangxi increased, but the toll revenue increased
year-on-year and one year decreased.
1. Guangfo Expressway was affected by the implementation of restricted trucks in Foshan First Ring Road. The
number of trucks increased year-on-year, so the increase in toll revenue was higher than the increase in traffic
volume;
2. Guangzhu Section of Jingzhu Expressway. In September 2017, the National Road Hongqili Bridge was restored
to traffic. Affected by this, the traffic volume and toll revenue increased slightly year-on-year;
3. Kangda Expressway was closed by the renovation project of the 323 National Road, and some of the trucks
were diverted. The toll revenue decreased.
II.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”
Year-on-year change of main financial data
In RMB
Same period last YOY
This report period Cause change
year change（%）
Mainly due to the growth of Guangfo, Fokai and
Operating income 1,535,864,145.14 1,440,222,563.74 6.64%
Guangzhu East Company Toll revenue
Operating cost 533,736,566.35 533,689,845.16 0.01%
Administrative expenses 75,594,633.97 77,693,914.84 -2.70%
Financial expenses 112,780,215.47 133,804,359.02 -15.71% Mainly to repay the upfront borrowings and
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Same period last YOY
This report period Cause change
year change（%）
increase the capitalization of the loan expansion
and expansion of the southern part of the Fokai
Expressway, and reduce the interest expense on
financial expenses for the current period.
Mainly in the previous period, the merger and
acquisition of Fokai subsidiary confirmed the
Income tax expenses 213,221,718.85 -19,940,081.98 1,169.31%
deferred income tax assets, and the current
income tax expense is relatively large.
Mainly due to the increase in toll income; the
Department absorbed the merger of Fokai
Cash flow generated by Company, Fokai Company to pay the assessed
817,279,588.10 1,022,392,235.37 -20.06%
business operation, net value of assets and the difference between the
previous road production accounting and tax
depreciation.
Mainly due to the payment of the reconstruction
Net cash flow generated
-138,624,695.43 -3,331,892.02 -4,060.54% and expansion project of the southern section of
by investment
Fokai Expressway.
Mainly due to distribution of dividends for the
Net cash flow generated
-1,217,963,569.09 -1,027,513,171.72 -18.54% period increased compared with the same period
by financing
last year.
Net cash from operating activities by the inflow
Net increasing of cash
-541,576,561.05 -7,005,743.86 -7,630.47% and outflow from investing activities due to the
and cash equivalents
combined effects
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Nil
Breakdown of main business
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of principal of gross profit
of reverse in the
Operating Gross profit business cost over rate over the
operating costs same period of
revenue rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
Industry
Highway
1,499,126,119.71 504,925,795.77 66.32% 6.44% -2.52% 3.09%
transportations
Other 19,749,732.85 17,392,198.77 11.94% 92.62% 216.42% -34.46%
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Total 1,518,875,852.56 522,317,994.54 65.61% 7.06% -0.22% 2.51%
Product
Highway
1,499,126,119.71 504,925,795.77 66.32% 6.44% -2.52% 3.09%
transportations
Other 19,749,732.85 17,392,198.77 11.94% 92.62% 216.42% -34.46%
Total 1,518,875,852.56 522,317,994.54 65.61% 7.06% -0.22% 2.51%
Area
Guangfo
225,234,633.20 27,776,820.78 87.67% 13.30% -53.54% 17.74%
Expressway
Fokai
638,591,636.62 306,517,460.99 52.00% 8.37% 5.28% 1.41%
Expressway
Jingzhu
Expressway 635,299,849.89 170,631,514.00 73.14% 2.40% 2.15% 0.06%
Guangzhu section
Other 19,749,732.85 17,392,198.77 11.94% 92.62% 216.42% -34.46%
Total 1,518,875,852.56 522,317,994.54 65.61% 7.06% -0.22% 2.51%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
Amount Ratio in total profit Note Whether be sustainable
It is due to the operation
Investment income 259,358,302.20 23.33% accumulation of participant Yes
companies
It is due to the provision of
Asset impairment -57,890.35 -0.01% impairment for receivables No
surplus and aging changes
Mainly due to the
compensation for the
demolition of the office of
Non-operating
2,687,560.58 0.24% the technology company and No
income
the income of the road
production claim of Fokai
Branch
Mainly due to the damage
repair of civil facilities of
Non-operating
2,007,967.43 0.18% Guangzhu East Company No
expenses
and the scrapping expenses
of other companies' fixed
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
assets
The proporty of
Guangzhou-Zhuhai East
Company has decreased
mainly due to the Zhuhai
Assets disposal Government has recovered
44,860,186.67 4.03% No
income the 4.213 kilometers
expressway of
Guangzhou-Macao
Expressway of Zhuhai
Section.
IV.Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of Reporting period End of same period of last year
As a As a Change in
percentage percentage percentage Reason for significant change
Amount Amount
of total of total (%)
assets(%) assets(%)
Net cash from operating activities by the
Monetary fund 1,821,466,139.37 11.48% 2,363,042,700.42 14.30% -2.82% inflow and outflow from investing
activities due to the combined effects
Accounts
94,111,175.70 0.59% 92,642,625.45 0.56% 0.03%
receivable
Inventories 139,076.49 0.001% 0.00% 0.001%
Real estate
2,523,650.98 0.02% 2,755,757.68 0.02% 0.00%
Investment
Long-term
equity 3,166,390,849.09 19.95% 3,047,275,000.00 18.44% 1.51%
investment
It is mainly due to the Zhuhai Municipal
People's Government taking back the
4.213 km expressway of the Zhuhai
Fixed assets 7,945,714,512.39 50.07% 8,505,434,890.71 51.48% -1.41%
section of the Guang'ao Expressway, the
reduction of the road production of the
Guangzhu East Company
Construction in Mainly due to the increase in the
629,469,949.60 3.97% 356,062,655.95 2.15% 1.82%
process construction of the south section of Fokai
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Company.
Short-term loans 0.00% 0.00% 0.00%
Long-term loans 4,391,170,000.00 27.67% 4,744,170,000.00 28.71% -1.04%
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/Loss on
Cumulative fair Impairment Purchanased
fair value Sold amount in
Opening value change provisions in amount in the
Items change in the the reporting Closing mount
amount recorded into the repoting reporting
reporting period
equity period period
period
Financial assets
3.Available-for
-sale financial 952,782,523.20 -91,749,428.16 343,472,218.24 861,033,095.04
assets
Subtotal of
952,782,523.20 -91,749,428.16 343,472,218.24 861,033,095.04
financial assets
Total of the
952,782,523.20 -91,749,428.16 343,472,218.24 861,033,095.04
above
Financial
0.00 0.00
liabilities
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting
period?
□ Yes √No
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
3. Assets right restriction till end of reporting period
Nil
V.Investment situation
1. General
√ Applicable □ Not applicable
Investments made in same period of last
Investments made in the reporting period +/- %
year
273,407,293.65 51,617,786.58 429.68%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □ Not applicable
In RMB
Reasons
for
Accumulat
failure
ed realized
Industry in Accumulated in
Form Fixed Investment return as Date of
which the actual amount Estima meeting
of assets amount during Source of the end Disclosu Disclosure
Name investment invested as of the Progress ted schedule
invest investme the reporting of und of the end re(If Index(If any)
project end of reporting return d
ment nt or not period of the any)
operates period progress
reporting
and
period
estimate
d return
Announceme
nt of the 29th
(Provisional)
Sanbao To
Self Meeting of
Shuikou
Expresswa and June the seventh
Section Self Yes 273,407,293.65 1,000,061,046.58 29.19% 0.00 0.00 Nil
y Borro 17,2016 Board of
Extension
wing Directors,
project
Announceme
nt of External
Investment
Total -- -- -- 273,407,293.65 1,000,061,046.58 -- -- 0.00 0.00 -- -- --
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
Purc
Mod Sale
hase Book
e of amo
Stoc amo value
acco Book value unt Gain/loss of
Security Secur k Changes in fair Cumulative fair unt balance at Sauce
Initial unti balance at the in the Accountin
categor ity Abb value of the this value changes in in the end of of the
investment cost ng beginning of the the reporting g items
y code revia period equity the the shares
mea reporting period this period
tion: this reporting
sure peri
peri period
ment od
od
Ever
Domest Financial
brig
ic and 6018 FV 42,581,144. 861,033,0 assets
ht 517,560,876.80 952,782,523.20 -91,749,428.16 343,472,218.24 Self
foreign 18 M 86 95.04 available
Ban
stocks for sale
k
42,581,144. 861,033,0
Total 517,560,876.80 -- 952,782,523.20 -91,749,428.16 343,472,218.24 0.00 0.00 -- --
86 95.04
Disclosure Date of
Announcement on
Securities
July 22, 2009
Investment
Approved by the
Board of Directors
Disclosure Date of
Announcement on
Securities
Investment August 7,2009
Approved by the
Shareholders
Meeting(If any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Compa Operating
Company Name Leading products and services Registered capital Total assets Net assets Operating profit Net Profit
ny type Income
Operating Guangfo Expressway Co.,
Subsidi Ltd.(starts from Hengsha, Guangzhou, ends
Guangfo Expressway 200 million yuan 493,251,686.30 437,494,174.52 226,325,833.32 187,512,995.52 142,435,343.71
ary in Xiebian, Foshan. Total length 15.7
kilometers
Guangzhu Traffic
Subsidi Highway investment management and
Investment Management 3 million yuan 2,744,739,947.35 540,806,925.21 645,871,184.09 453,365,316.41 184,814,435.35
ary consultation; highway maintenance
Co., Ltd.
Jingzhu Expressway Subsidi The operation and management of Jiangzhu
580 million yuan 2,679,733,292.93 974,182,310.50 645,871,184.09 453,401,008.00 336,091,139.89
Guangzhu Section Co., Ltd. ary Expressway Guangzhu Section
Investment in and construction of
Guanghui Expressway Co., Ltd. and
supporting facilities, the toll collection and
maintenance management of Guanghui
Sharing
Guangdong Guanghui Expressway, The Guanghui 2.352 billion
compan 4,869,370,504.08 3,500,636,180.02 878,931,209.54 598,371,964.24 447,126,957.50
Expressway Co., Ltd. Expressway's supporting gas station, yuan
y
salvation, vehicle maintenance,
vehicle transport, catering,
warehousing investment and
development
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
18
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Particulars about the Mutual holding companies
1.The Company holds a 75% equity interest in the Guangfo company, the construction and operation of the
Guangzhou-Foshan Expressway, including road maintenance, charges, signs, marking and other transport facilities
maintenance, Vehicle rescue and other business. The current net profit increased by 44.0569 million yuan, an
increase of 44.78%, the increasing is due to natural income growth and financial costs to reduce the combined
impact.
The main reason for the increase is the combined effect of the following factors: （1）The number of trucks has
increased and the toll revenue has increased; (2) The depreciation of Guangfo Expressway has been fully drawn in
the current reporting period, so that led to a decrease in depreciation.
2. The main reason for the increase was the combined effect of the natural increase of the toll revenue and the
reduction of the financial costs. The net profits in the current period increased 48.8131million yuan and 14.99%
compared with the last period,The main reason for the increase is the following factors: (1) According to the
Compensation and Asset Transfer Agreement of Zhuhai Municipal People's Government's Recovery of the
Guang-ao Expressway Zhuhai Section (Pile No. K0+945---K5+158), Guangzhu Dong Company has received all
the compensation of 206 million yuan for the equity value compensation of the asset transfer and has completed
the transfer of the asset with the Zhuhai High-tech Zone Management Committee in accordance with the
“Compensation and Asset Transfer Agreement”;(2) the natural growth of toll income; (3) the interest-bearing debt
repayment led to reduced financial costs.
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2018
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
The company’s profits mainly come from the expressway tolls revenue and the toll charging standards
shall be examined by the traffic authority of the provincial, autonomous region and the direct-controlled
municipality people’s governments together with the same-level pricing authority and then submitted to the
same-level people’s government for approval. Therefore, the charging price adjustment trend and the possibility
of the charging price adjustment upon rising of the commodity price and the company cost in the future are still
subject to relevant national policies and the approval of the governmental department. And the company can’t
adjust the charging standards promptly based on its own operation cost or the market supply-demand changes. In
conclusion, the charging policies change and the charging standards adjustment have the influence on the
expressway business of the company to some extent.
19
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
V. Important Events
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
Annual
2017 Shareholders’
Shareholders’ 66.27% April 26,2018 April 27,2018 www.cinfo.com.cn
general meeting
General Meeting
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
□ Applicable √Not applicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of
the Company
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
Not been audited.
V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s”
Issued by CPAs firm for the reporting period
□ Applicable √ Not applicable
20
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
VI. Explanations given by Board of Directors regarding“ Modified auditor’ Report”Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal matters
Signifieant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other legal matters
√ Applicable □ Not applicable
Litigation
Forming Litigation (arbitratio Date
Amount Litigation Index of
of the (arbitration) n) of
Basic conditions of litigation (arbitration) involved （Ten (arbitration) disclosu
predicted judgement result judgement disclo
thousand yuan ） progress re
debt and influence execution sure
condition
On August 22, 2007, Guangdong Fokai
Expressway Co., Ltd. filed a lawsuit with
Guangzhou Maritime Court officially requiring
Foshan Nanhai Yuhang Shipping Co., Ltd. and
Yang Xiong to undertake the joint and several
liabilities for the toll losses of Fokai company
due to the Jiujiang collapse. On March 7, 2014,
the court made the first instance judgement
No major
requiring the defendants Foshan Nanhai Yuhang
Waiting for the influence on the
Shipping Co., Ltd. and Yang Xiong to
court company asset
compensate the defendant Guangdong Fokai 1,935.75 No None
judgement conditions and
Expressway Co., Ltd. jointly for the vehicle toll
result the operation
revenue loss totaling 19,357,500.96 yuan.
results.
Guangdong Higher People's Court entered a
judgement on June 5, 2014 and the lawsuit
terminated. By the end of the report period, the
abatement of action causes are already removed
and the provincial higher court restores the
hearing and conducts the investigation on April
21, 2017. Now it’s still the time waiting for the
court judgement.
21
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
On June 12, 2009, the 6.15 accident-causing
boat owner Yang Xiong filed a lawsuit with
Guangzhou Maritime Court requiring Fokai
company to compensate for the boat loss and
interest totaling 7.28 million yuan. On No major
During
December 20, 2013, the court made the first influence on the
abatement of
instance judgement rejecting all litigation company asset
728.00 No action by the None
claims of Yang Xiong. He filed a lawsuit with conditions and
second
Guangdong Higher People's Court against such the operation
instance
sentence above, and the second instance results.
terminated the lawsuit in May 2015. By the end
of the report period, the lawsuit is still
suspended without any notice from the
provincial higher court.
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
□ Applicable √ Not applicable
No such cases in the reporting period.
XII.Material related transactions
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
No such cases in the reporting period.
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
22
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
No such cases in the reporting period.
4. Credits and liabilities with related parties
√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √ No
No such cases in the reporting period.
5. Other significant related-party transactions
√ Applicable □Not applicable
1.The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal about Singing the Contract of Entrustment of Operation and Management of 2018-2020 of Guangzhu
North Section of Guangdong Jingzhu Expressway between the Guangzhu Section Company and the Guangzhu
North Section Company.Agreed that Jingzhu Expressway Guangzhu Section Co., Ltd signs the Contract of
Entrustment of Operation and Management of 2018-2020 of Guangzhu North Section of Guangdong Jingzhu
Expressway with the Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd, with the total contract
amount not exceeding 60 million yuan.
2. The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal of Signing the Contract of Operation Entrustment of Un-Pillar Advertisement between the Jingzhu
Expressway Guangzhu Section Co., Ltd and the Guangdong High Speed Media Co., Ltd.Agreed that Jingzhu
Expressway Guangzhu Section Co., Ltd signs the Contract of Operation Entrustment of Un-Pillar Advertisement
of Guangzhu Section of Beijing-Zhuhai Expressway with Guangdong High Speed Media Co., Ltd.
3. The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal about the Entrustment of Lease and Operation of Communication Pipe along the Expressways of
Guangdong Provincial Expressway Development Co.,Ltd’s Holding Subsidiaries and Branch Company.Agreed
that Our subsidiaries-Guangfo Expressway Co., Ltd and Jingzhu Expressway Guangzhu Section Co., Ltd and our
branch company-Guangdong Provincial Expressway Development Co., Ltd Fokai Branch sign the
Communication Pipeline Lease Contract with the Guangdong Litong Technology Investment Co., Ltd, which is to
entrust the communication pipeline ( including main line , ramp , structure and auxiliary facilities ) along the
expressway under the jurisdiction to Guangdong Litong Technology Investment Co.,Ltd for external lease and
23
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
maintenance, with the total lease income of about 79.27 million yuan.
4. The 17th (provisional) meeting of the Eighth board of directors of the Company Examined and Adopted of the
Proposal on Borrowing Entrusted Loans to Guangdong Guanghui Expressway Co., Ltd.Agreed that the company
borrowed entrusted loans from Guangdong Guanghui Expressway Co., Ltd. The total amount of loans was 180
million yuan. According to the actual needs of the company, withdrawals were made for a period of 1 year, and
the interest rate was lowered by 10% according to the benchmark interest rate of the People's Bank of China for
the same period. Used to supplement working capital. After the entrusted loan expires, it can be renewed
according to the original conditions.
5. The 17th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal Concerning the Company Daily Associated Transactions Predicted of 2018. Agree on the predicted daily
associated transactions for the company headquarters, wholly-owned and holding subsidiaries of 2018, whose
amount in total is 63.1779 million yuan.
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
Announcement of Resolutions of the 16th
(provisional)Meeting of the Eighth Board of January 31,2018 www.cninfo.com.cn
Directors
Announcement on related party transactions
January 31,2018 www.cninfo.com.cn
entrusted by subsidiaries
Announcement on Related Transactions of
Entrusted Leasing Operation of
Communication Pipeline along the January 31,2018 www.cninfo.com.cn
Expressway of Guangdong Expressway
Holding Subsidiary and Branch
Announcement on Related Transactions of
Non-column Advertising Entrusted Operation
January 31,2018 www.cninfo.com.cn
of Holding Subsidiary Beijing-Zhuhai
Expressway Guangzhu Section Co., Ltd.
Announcement of Resolutions of the 17th
(provisional) Meeting of the Eighth Board of March 29,2018 www.cninfo.com.cn
Directors
Related transaction announcement March 29,2018 www.cninfo.com.cn
24
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Announcement of Daily Associated
March 29,2018 www.cninfo.com.cn
Transactions Predicted of 2018
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Contracting
□Applicable √ Not applicable
2.Guarantees
√Applicable□Not applicable
（1）Guarantees
Ten thousand yuan
Extemal guarantess made by the Company（Exclude those made for subsidiaries）
Name of the Relevant Amount of Date of Actual Complete Guarantee
Guarantee type Guarantee term
Company disclosure Guarantee happening mount of implementa for
25
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
date/No. of (Date of guarantee tion associated
the signing or not parties
guaranteed agreement) (Yes or no)
amount
Guangdong
May 2012.9.25-20
Communication 172,500 May 31,2013 172,500 Martgage No Yes
11,2012 21.7.25
Group Co.,Ltd
Total balance of actual
Total of external guarantee
172,500 external guarantee at 172,500
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee at Period-end Total of actual guarantee at
172,500 172,500
（A3+B3+C3） Period-end （A4+B4+C4）
The proportion of the total amount of actually guarantee in the
19.89%
net assets of the Company(that is A4+B4+C4)
Including
Amount of guarantee for shareholders, actual controller and its
172,500
associated parties（D）
Description of the guarantee with complex method
26
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
（2）Illegal external guarantee
□ Applicable √ Not applicable
Nil
3. Other significant contract
□ Applicable √ Not applicable
Nil
XV.Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
No
2.Overview of the annual targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up plan
either.
XVI.Other material events
□Applicable √ Not applicable
No such cases in the reporting period.
XVII. Material events of subsidiaries
√Applicable□Not applicable
The 15th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal of matters relevant to the Zhuhai Municipal People's Government's Taking-back of Guangzhou-Macao
Expressway Zhuhai Section's 4.213 km Expressway asset compensation and asset transfer" was examined and
approved.
1. Agreed that Zhuhai High-tech Zone Management Committee uses 206 million yuan of compensation
(excluding the relevant taxes and fees, and the taxes and fees compensation subjecting to the actual amount of
payment) to take back the Guangdong-Macao Expressway Zhuhai Section's 4.213 km (Pile Number K0 +945-K5
+158)Expressway Asset.
27
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
2. Agreed that Jingzhu Expressway Guangzhu section Co., Ltd-the company's holding subsidiary-shall, after
performed the relevant decision-making procedures, enter into the Compensation and Asset transfer Agreement
with Zhuhai High-Tech Zone Management Committee.
On January 31, 2018, Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd. received the first
compensation of RMB 100 million from Zhuhai High-tech Zone Management Committee.
On July 3, 2018, Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd. received the equity value
compensation amount of RMB 106 million for the asset transfer from Zhuhai High-tech Zone Management
Committee. As of that date, Guangzhu Dong Company has received all the compensation of RMB 260 million for
the equity value compensation of the asset transfer and has completed the transfer of the asset with the Zhuhai
High-tech Zone Management Committee in accordance with the “Compensation and Asset Transfer Agreement”.
Description of the website for
Date of disclosing
Description of provisional announcement disclosing provisional
provisional announcement
announcements
Announcement of Resolutions of the 15th (Provisional) Meeting of December 30,2017 www.cninfo.com.cn
the Eighth Board of Directors
Announcement of matters relevant to the Zhuhai Municipal December 30,2017 www.cninfo.com.cn
People's Government's Taking-back of Guangzhou-Macao
Expressway Zhuhai Section's 4.213 km Expressway asset
compensation and asset transfer"
Progress Announcement of matters relevant to the Zhuhai February 2,2018 www.cninfo.com.cn
Municipal People's Government's Taking-back of
Guangzhou-Macao Expressway Zhuhai Section's 4.213 km
Expressway asset compensation and asset transfer"
Progress Announcement of matters relevant to the Zhuhai July 5,2018 www.cninfo.com.cn
Municipal People's Government's Taking-back of
Guangzhou-Macao Expressway Zhuhai Section's 4.213 km
Expressway asset compensation and asset transfer"
28
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitaliz
Share ation of
Bonus
allotm common Other Subtotal Quantity Proportion
shares
ent reserve
fund
1.Shares with conditional
1,273,170,302 60.88% 132,126 132,126 1,273,302,428 60.90%
subscription
1.State-owned shares 410,002,853 19.61% 410,002,853 19.61%
2.State-owned legal
521,393,021 24.94% 521,393,021 24.94%
person shares
3.Other domestic shares 341,774,428 16.34% 132,126 132,126 341,906,554 16.35%
Including ：Domestic
341,225,786 16.32% -120,440 -120,440 341,105,346 16.31%
Legal person shares
Domestic natural person
548,642 0.03% 252,566 252,566 801,208 0.04%
shares
II.Shares with
817,635,824 39.11% -132,126 -132,126 817,503,698 39.10%
unconditional subscription
1.Common shares in
468,885,824 22.43% -30,801 -30,801 468,855,023 22.42%
RMB
2.Foreign shares in
348,750,000 16.68% -101,325 -101,325 348,648,675 16.68%
domestic market
III. Total of capital shares 2,090,806,126 100.00% 0 0 2,090,806,126 100.00%
Reasons for share changed
√ Applicable □Not applicable
1. During the reporting period, 120,440 “domestic legal-person holding shares” were turned into “domestic
natural-person holding shares” through judicial confirmation.
2. During the reporting period, due to changes in the appointments of directors, supervisors and senior executives
and changes in shareholdings in the previous year, 30,801 A shares and 101,325 B shares were converted from
"unlimited conditional shares" to "limited conditional shares".
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
29
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
Number of
Number of Restricted Shares Date of
Shareholder Initial Restricted Increased Reason for
Unrestricted in the End of the Restriction
Name Shares Restricted Shares Restricted Shares
Shares This Term Term Removal
This Term
Executive locking
Wang Chunhua 0 0 101,325 101,325 Unknown
stock
Executive locking September
Li Mei 92,494 0 30,801 123,205
stock 30,2018
Total 92,494 0 132,126 224,530 -- --
II.Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
Total number of preferred
Total number of common
shareholders that had restored the
shareholders at the end of the 61,104 0
voting right at the end of the
reporting period
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of share
Proportion Number of Changes in Amount of Amount of pledged/frozen
Nature of
Shareholders of shares shares held at reporting restricted un-restricted State
shareholder
held（%） period -end period shares held shares held of Amount
share
Guangdong State-owned legal
24.55% 513,382,595 410,002,853 103,379,742
Communication Group person
30
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Co.,Ltd
Guangdong Highway State-owned legal
22.30% 466,325,020 466,325,020
Construction Co., Ltd, person
Domestic non
Yadong Fuxing Yalian
State-owned 9.68% 202,429,149 202,429,149 Pledge 156,652,500
Investment Co., Ltd.
Legal person
Tibet Yingyue Domestic non
Investment Management State-owned 4.84% 101,214,574 101,214,574
Co., Ltd. Legal person
Guangdong Expressway State-owned legal
2.53% 52,937,491 52,937,491
Co., Ltd. person
Domestic non
Guangfa Securities Co.,
State-owned 1.45% 30,364,372 30,364,372
Ltd.
Legal person
Domestic natural
Feng Wuchu 1.08% 22,593,729 1175773
person shares
Agricultural Bank of
China－Jingshun Great
Domestic non
Wall Energy
State-owned 0.69% 14,381,528 7403434
Infrastructure Mixed
Legal person
Securities Investment
Fund
Foreign legal
Xinyue Co., Ltd. 0.63% 13,201,086
person
PRUSIK UMBRELLA Foreign legal
0.62% 12,999,871 1000000
UCITS FUND PLC person
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway
Construction Co., Ltd, Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown
Explanation on associated relationship or
whether there is relationship between other shareholders and whether they are persons taking
concerted action of the above shareholders
concerted action specified in the Regulations on Disclosure of Information about Change in
Shareholding of Shareholders of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
RMB Common
Guangdong Communication Group Co.,Ltd 103,379,742 103,379,742
shares
RMB Common
20,686,390
Feng Wuchu 22,593,729 shares
Foreign shares 1,907,339
31
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
placed in domestic
exchange
Agricultural Bank of China－Jingshun
RMB Common
Great Wall Energy Infrastructure Mixed 14,381,528 14,381,528
shares
Securities Investment Fund
Foreign shares
Xinyue Co., Ltd. 13,201,086 placed in domestic 13,201,086
exchange
Foreign shares
PRUSIK UMBRELLA UCITS FUND PLC 12,999,871 placed in domestic 12,999,871
exchange
Foreign shares
MATTHEWS CHINA DIVIDEND FUND 11,565,121 placed in domestic 11,565,121
exchange
Foreign shares
Khazanah Nasional Berhad－self fund 10,522,779 placed in domestic 10,522,779
exchange
Foreign shares
UBS AG LONDON BRANCH 9,129,156 placed in domestic 9,129,156
exchange
RMB Common
Guotai Junan securities co., Ltd. 7,600,000 7,600,000
shares
Yongan Guofu Asset Management Co., Ltd.
RMB Common
－Yongan Guofu－Yongfu No.10 Private 7,255,301 7,255,301
shares
Securities Investment Fund
Explanation on associated relationship or
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway
consistent action among the top 10
Construction Co., Ltd, Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown
shareholders of non-restricted negotiable
whether there is relationship between other shareholders and whether they are persons taking
shares and that between the top 10
concerted action specified in the Regulations on Disclosure of Information about Change in
shareholders of non-restricted negotiable
Shareholding of Shareholders of Listed Companies.
shares and top 10 shareholders
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
32
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
33
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
34
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable√Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2017 Annual Report
II. Change in shares held by directors, supervisors and senior executives
√ Appicable □Not applicable
Name Positions Types Date Reason
Li Mei Supervisor Dimission January 6,2018 Resignation
35
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No
36
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by:：Guangdong Provincial Expressway Development Co., Ltd.
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 1,821,466,139.37 2,363,042,700.42
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Note receivable
Account receivable 94,111,175.70 92,642,625.45
Prepayments 1,734,012.97 4,451,901.75
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable 54,521,442.76
Other account receivable 123,275,981.57 15,415,512.07
37
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items At the end of term Beginning of term
Repurchasing of financial assets
Inventories 139,076.49
Assets held for sales
Non-current asset due in 1 year 51,745.32 55,669.14
Other current asset 921,856.82 76,576.08
Total of current assets 2,096,221,431.00 2,475,684,984.91
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 1,659,608,196.77 1,751,357,624.93
Expired investment in possess
Long-term receivable
Long term share equity investment 3,166,390,849.09 3,047,275,000.00
Property investment 2,523,650.98 2,755,757.68
Fixed assets 7,945,714,512.39 8,505,434,890.71
Construction in progress 629,469,949.60 356,062,655.95
Engineering material 1,549,556.00 1,549,556.00
Fixed asset disposal 99,127.90
Production physical assets
Gas & petrol
Intangible assets 5,677,752.19 7,096,435.17
R & D petrol
Goodwill
Long-germ expenses to be amortized 37,107.43 92,768.83
Differed income tax asset 281,196,704.39 335,299,025.28
Other non-current asset 79,494,345.43 40,706,394.26
Total of non-current assets 13,771,761,752.17 14,047,630,108.81
Total of assets 15,867,983,183.17 16,523,315,093.72
Current liabilities
Short-term loans
Loan from Central Bank
Deposit received and hold for others
Call loan received
38
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items At the end of term Beginning of term
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Note payable
Account payable 185,313,470.18 266,934,026.99
Advance payment 13,605,059.97 14,856,113.90
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 15,529,808.87 11,334,182.16
Tax payable 122,832,730.78 428,647,394.29
Interest payable 9,332,172.79 8,494,355.93
Dividend payable 43,193,409.32 26,840,792.20
Other account payable 255,598,874.65 86,663,237.94
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 1,583,780,000.00 1,218,610,000.00
Other current liability 689,978.75
Total of current liability 2,229,875,505.31 2,062,380,103.41
Non-current liabilities：
Long-term loan 4,391,170,000.00 4,744,170,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 2,022,210.11 2,022,210.11
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Deferred income
Deferred income tax liability 217,720,054.84 260,632,098.75
39
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items At the end of term Beginning of term
Other non-current liabilities
Total non-current liabilities 4,610,912,264.95 5,006,824,308.86
Total of liability 6,840,787,770.26 7,069,204,412.27
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,514,016,125.31 2,510,069,749.76
Less：Shares in stock
Other comprehensive income 253,468,274.62 327,263,824.17
Special reserves
Surplus reserves 544,821,130.03 544,821,130.03
Common risk provision
Undistributed profit 3,271,164,635.71 3,550,110,288.49
Total of owner’s equity belong to the
8,674,276,291.67 9,023,071,118.45
parent company
Minority shareholders’ equity 352,919,121.24 431,039,563.00
Total of owners’ equity 9,027,195,412.91 9,454,110,681.45
Total of liabilities and owners’ equity 15,867,983,183.17 16,523,315,093.72
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
40
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
2.Parent Company Balance Sheet
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 1,708,673,405.68 2,130,475,892.67
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Note receivable
Account receivable 18,091,636.66 19,001,899.29
Prepayments 764,205.44 1,520,014.23
Interest receivable 35,705,395.50 2,070,385.95
Dividend receivable 189,521,442.76 10,000,000.00
Other account receivable 171,173,507.07 5,298,202.17
Inventories
Assets held for sales
Non-current asset due in 1 year 80,000,000.00 80,000,000.00
Other current asset
Total of current assets 2,203,929,593.11 2,248,366,394.31
Non-current assets：
Disposable financial asset 1,659,608,196.77 1,751,357,624.93
Expired investment in possess
Long-term receivable
Long term share equity investment 8,336,053,068.75 8,216,937,219.66
Property investment 2,271,512.73 2,503,619.43
Fixed assets 5,516,223,107.41 5,784,192,105.58
Construction in progress 627,266,163.60 353,858,869.95
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 2,220,339.19 2,856,323.67
41
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items At the end of term Beginning of term
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 280,995,263.90 335,050,091.31
Other non-current asset 866,288,609.57 827,775,329.66
Total of non-current assets 17,290,926,261.92 17,274,531,184.19
Total of assets 19,494,855,855.03 19,522,897,578.50
Current liabilities
Short-term loans
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Note payable
Account payable 148,300,692.93 200,070,986.17
Advance payment
Employees’ wage payable 4,267,948.00 5,419,848.48
Tax payable 6,843,982.81 12,893,797.03
Interest payable 8,793,589.48 7,901,914.26
Dividend payable 18,193,409.32 14,340,792.20
Other account payable 4,671,807,377.66 4,481,086,033.30
Liabilities held for sales
Non-current liability due in 1 year 1,333,780,000.00 968,610,000.00
Other current liability 575,976,776.28 644,691,748.64
Total of current liability 6,767,963,776.48 6,335,015,120.08
Non-current liabilities：
Long-term loan 4,192,170,000.00 4,545,170,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 2,022,210.11 2,022,210.11
Employees’ wage payable
Special payable
Expected liabilities
42
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items At the end of term Beginning of term
Deferred income
Deferred income tax liability 85,868,054.56 108,805,411.60
Other non-current liabilities
Total of Non-current liabilities 4,280,060,264.67 4,655,997,621.71
Total of liability 11,048,024,041.15 10,991,012,741.79
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 2,925,904,356.93 2,921,957,981.38
Less：Shares in stock
Other comprehensive income 253,468,274.62 327,263,824.17
Special reserves
Surplus reserves 528,976,846.38 528,976,846.38
Undistributed profit 2,647,676,209.95 2,662,880,058.78
Total of owners’ equity 8,446,831,813.88 8,531,884,836.71
Total of liabilities and owners’ equity 19,494,855,855.03 19,522,897,578.50
Legal Representative:Zheng 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 1,535,864,145.14 1,440,222,563.74
Incl：Business income 1,535,864,145.14 1,440,222,563.74
Interest income
Insurance fee earned
Fee and commission received
43
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Report period Same period of the previous year
II. Total business cost 728,906,640.43 752,280,475.16
Incl：Business cost 533,736,566.35 533,689,845.16
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 6,853,114.99 6,895,775.06
Sales expense
Administrative expense 75,594,633.97 77,693,914.84
Financial expenses 112,780,215.47 133,804,359.02
Asset impairment loss -57,890.35 196,581.08
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 259,358,302.20 223,430,364.44
Incl: investment gains from affiliates 216,777,157.34 199,376,107.62
Gains from currency exchange（“-”for
loss）
Assets disposal income 44,860,186.67
Other income
III. Operational profit（“-”for loss） 1,111,175,993.58 911,372,453.02
Add ：Non-operational income 2,687,560.58 62,299,078.58
Less：Non business expenses 2,007,967.43 3,099,474.26
IV.Total profit(“-”for loss) 1,111,855,586.73 970,572,057.34
Less：Income tax expenses 213,221,718.85 -19,940,081.98
V. Net profit 898,633,867.88 990,512,139.32
1.Net continuing operating profit 898,633,867.88 990,512,139.32
2.Termination of operating net profit
Net profit attributable to the owners of
779,002,246.98 892,848,012.53
parent company
Minority shareholders’ equity 119,631,620.90 97,664,126.79
VI. Other comprehensive income -73,795,549.55 -75,869,719.44
44
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Report period Same period of the previous year
Net of profit of other comprehensive inco
me attributable to owners of the parent co -73,795,549.55 -75,869,719.44
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be -73,795,549.55 -75,869,719.44
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie -4,983,478.43
d into profit or loss.
2.Gains and losses from changes in fair v
-68,812,071.12 -75,869,719.44
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
VII. Total comprehensive income 824,838,318.33 914,642,419.88
Total comprehensive income attributable
705,206,697.43 816,978,293.09
to the owner of the parent company
Total comprehensive income attributable
119,631,620.90 97,664,126.79
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.37 0.43
45
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Report period Same period of the previous year
(II)Diluted earnings per share 0.37 0.43
The current business combination under common control, the net profits of the combined party before achieved 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
I. Income from the key business 675,894,267.74 38,224,276.41
Incl：Business cost 310,310,687.32 232,106.70
Business tax and surcharge 3,493,775.90 45,569.27
Sales expense
Administrative expense 42,233,003.03 26,557,947.35
Financial expenses 104,206,424.94 66,857,722.21
Asset impairment loss
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 880,579,568.71 930,734,790.73
Incl: investment gains from affiliates 216,777,157.34 199,376,107.62
Assets disposal income 138,427.18
Other income
II. Operational profit（“-”for loss） 1,096,368,372.44 875,265,721.61
Add ：Non-operational income 916,331.99 73,878.42
Less：Non business expenses 485,826.09
III.Total profit(“-”for loss) 1,096,798,878.34 875,339,600.03
Less：Income tax expenses 54,054,827.41 -220,270,567.14
IV. Net profit（“-”for net loss） 1,042,744,050.93 1,095,610,167.17
1.Net continuing operating profit 1,042,744,050.93 1,095,610,167.17
2.Termination of operating net profit
46
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Report period Same period of the previous year
5. After-tax net amount of other misc.
-73,795,549.55 -75,869,719.44
incomes
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
Other comprehensive income that will b -73,795,549.55 -75,869,719.44
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi -4,983,478.43
fied into profit or loss.
2.Gains and losses from changes in fair
-68,812,071.12 -75,869,719.44
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income 968,948,501.38 1,019,740,447.73
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
47
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
1,567,523,150.21 1,437,384,420.88
rending of services
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
39,446,329.98 60,818,976.35
operation
Sub-total of cash inflow 1,606,969,480.19 1,498,203,397.23
Cash paid for purchasing of
96,705,259.73 65,216,674.54
merchandise and services
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
48
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Report period Same period of the previous year
Cash paid to staffs or paid for staffs 138,291,293.37 132,850,018.53
Taxes paid 532,821,606.22 241,335,946.56
Other cash paid for business activities 21,871,732.77 36,408,522.23
Sub-total of cash outflow from business
789,689,892.09 475,811,161.86
activities
Cash flow generated by business
817,279,588.10 1,022,392,235.37
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 84,683,907.47 137,278,324.19
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 100,573,025.00 6,250.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 59,995,667.68
Sub-total of cash inflow due to
185,256,932.47 197,280,241.87
investment activities
Cash paid for construction of
fixed assets, intangible assets 323,881,627.90 200,612,133.89
and other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
323,881,627.90 200,612,133.89
investment activities
Net cash flow generated by investment -138,624,695.43 -3,331,892.02
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans 800,000,000.00 499,000,000.00
49
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Report period Same period of the previous year
Cash received from bond placing
Other financing –related ash received 2,500,000.00
Sub-total of cash inflow from financing
802,500,000.00 499,000,000.00
activities
Cash to repay debts 637,830,000.00 678,100,000.00
Cash paid as dividend, profit, or
1,382,633,569.09 848,413,171.72
interests
Incl: Dividend and profit paid by
185,252,062.66
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to
2,020,463,569.09 1,526,513,171.72
financing activities
Net cash flow generated by financing -1,217,963,569.09 -1,027,513,171.72
IV. Influence of exchange rate
-2,267,884.63 1,447,084.51
alternation on cash and cash equivalents
V.Net increase of cash and cash
-541,576,561.05 -7,005,743.86
equivalents
Add: balance of cash and cash
2,363,042,700.42 2,603,279,644.25
equivalents at the beginning of term
VI ..Balance of cash and cash
1,821,466,139.37 2,596,273,900.39
equivalents at the end of term
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
661,994,572.24 3,621,896.95
rending of services
Tax returned
50
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Amount in this period Amount in last period
Other cash received from business
46,329,459.08 616,912,385.89
operation
Sub-total of cash inflow 708,324,031.32 620,534,282.84
Cash paid for purchasing of
39,912,969.27
merchandise and services
Cash paid to staffs or paid for staffs 55,205,264.99 16,270,436.06
Taxes paid 25,922,199.03 550,122.41
Other cash paid for business activities 402,529,977.62 27,384,975.76
Sub-total of cash outflow from business
523,570,410.91 44,205,534.23
activities
Cash flow generated by business
184,753,620.41 576,328,748.61
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 580,905,173.98 718,997,791.68
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 195,540.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 432,250.00 70,491,251.01
Sub-total of cash inflow due to
581,532,963.98 789,489,042.69
investment activities
Cash paid for construction of
fixed assets, intangible assets 312,406,878.23
and other long-term assets
Cash paid as investment
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
10,000,000.00
activities
Sub-total of cash outflow due to
312,406,878.23 10,000,000.00
investment activities
Net cash flow generated by investment 269,126,085.75 779,489,042.69
III.Cash flow generated by financing
51
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Amount in this period Amount in last period
Cash received as investment
Cash received as loans 400,000,000.00
Cash received from bond placing
Other financing –related ash received 293,500,000.00
Sub-total of cash inflow from
693,500,000.00
financing activities
Cash to repay debts 50,100,000.00 50,100,000.00
Cash paid as dividend, profit, or
1,142,614,308.52 775,861,281.94
interests
Other cash paid for financing activities 374,200,000.00
Sub-total of cash outflow due to
1,566,914,308.52 825,961,281.94
financing activities
Net cash flow generated by financing -873,414,308.52 -825,961,281.94
IV. Influence of exchange rate
-2,267,884.63 1,447,084.51
alternation on cash and cash equivalents
V.Net increase of cash and cash
-421,802,486.99 531,303,593.87
equivalents
Add: balance of cash and cash
2,130,475,892.67 1,795,455,123.88
equivalents at the beginning of term
VI ..Balance of cash and cash
1,708,673,405.68 2,326,758,717.75
equivalents at the end of term
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
52
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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 Speci Commo
Less: Other Total of owners’
alized Surplus n risk shareholders’
Share Capital prefe Capital reserves Shares Comprehensive Attributable profit equity
Sustai Othe reser reserves provisio equity
rred in stock Income
nable r ve n
stock
debt
I.Balance at the end of last
2,090,806,126.00 2,510,069,749.76 327,263,824.17 544,821,130.03 3,550,110,288.49 431,039,563.00 9,454,110,681.45
year
Add: Change of accounting
policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the beginning
2,090,806,126.00 2,510,069,749.76 327,263,824.17 544,821,130.03 3,550,110,288.49 431,039,563.00 9,454,110,681.45
of current year
III.Changed in the current
3,946,375.55 -73,795,549.55 -278,945,652.78 -78,120,441.76 -426,915,268.54
year
（1）Total comprehensive
-73,795,549.55 779,002,246.98 119,631,620.90 824,838,318.33
income
（II）Investment or
53
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Speci Commo
Less: Other Total of owners’
alized Surplus n risk shareholders’
Share Capital prefe Capital reserves Shares Comprehensive Attributable profit equity
Sustai Othe reser reserves provisio equity
rred in stock Income
nable r ve n
stock
debt
decreasing of capital by
owners
1 ． Ordinary Shares investe
d by shareholders
2 ． Holders of other equity i
nstruments invested capital
3．Amount of shares paid
and accounted as owners’
equity
4．Other
（III）Profit allotment -1,057,947,899.76 -197,752,062.66 -1,255,699,962.42
1.Providing of surplus
reserves
2.Providing of common
risk provisions
3．Allotment to the owners
-1,057,947,899.76 -197,752,062.66 -1,255,699,962.42
(or shareholders)
4．Other
(IV) Internal transferring of
54
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Speci Commo
Less: Other Total of owners’
alized Surplus n risk shareholders’
Share Capital prefe Capital reserves Shares Comprehensive Attributable profit equity
Sustai Othe reser reserves provisio equity
rred in stock Income
nable r ve n
stock
debt
owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
4. Other
(V). Special reserves
1. Provided this year
2．Used this term
（VI）Other 3,946,375.55 3,946,375.55
IV. Balance at the end of this
2,090,806,126.00 2,514,016,125.31 253,468,274.62 544,821,130.03 3,271,164,635.71 352,919,121.24 9,027,195,412.91
term
55
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Speci Commo Minor
Items Total of owners’
Less: Other
prefe alized n risk shareholders’
Share Capital Capital reserves Shares Comprehensive Surplus reserves Attributable profit equity
rred Sustai Othe reserv provisio equity
in stock Income
stoc nable r e n
k debt
I.Balance at the end 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
last year
Add: Change of
accounting policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the
beginning of current 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
year
III.Changed in the -123,455,724.4
1,661,406.77 -75,022,130.07 177,864,580.14 629,546,960.22 610,595,092.66
current year 0
（1）Total
-75,022,130.07 1,509,922,398.70 200,301,288.72 1,635,201,557.35
comprehensive income
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Speci Commo Minor
Items Less: Other Total of owners’
alized n risk shareholders’
prefe equity
Share Capital Capital reserves Shares Comprehensive Surplus reserves Attributable profit
reserv provisio equity
rred Sustai Othe
in stock Income
stoc nable r e n
k debt
（II）Investment or
decreasing of capital by
owners
1 ． Ordinary Shares inv
ested by shareholders
2．Holders of other equ
ity instruments invested
capital
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
-323,757,013.1
transferring of owners’ 177,864,580.14 -880,375,438.48 -1,026,267,871.46
2
equity
1. Capitalizing of
capital reserves (or to 177,864,580.14 -177,864,580.14
capital shares)
2. Capitalizing of
57
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Speci Commo Minor
Items Less: Other Total of owners’
alized n risk shareholders’
prefe equity
Share Capital Capital reserves Shares Comprehensive Surplus reserves Attributable profit
reserv provisio equity
rred Sustai Othe
in stock Income
stoc nable r e n
k debt
surplus reserves (or to
capital shares)
3．Making up losses by -323,757,013.1
-702,510,858.34 -1,026,267,871.46
surplus reserves. 2
4. Other
(VI )Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end
of this term
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other 1,661,406.77 1,661,406.77
IV. Balance at the end
2,090,806,126.00 2,510,069,749.76 327,263,824.17 544,821,130.03 3,550,110,288.49 431,039,563.00 9,454,110,681.45
of this term
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
59
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
In RMB
Amount in this period
Other Equity instrument Less:
Other
Items Shares Specialize Total of owners’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Attributable profit
Sustaina Other in d reserve equity
d stock Income
ble debt stock
I.Balance at the end of
2,090,806,126.00 2,921,957,981.38 327,263,824.17 528,976,846.38 2,662,880,058.78 8,531,884,836.71
last year
Add: Change of
accounting policy
Correcting of previous
errors
Other
II.Balance at the
beginning of current 2,090,806,126.00 2,921,957,981.38 327,263,824.17 528,976,846.38 2,662,880,058.78 8,531,884,836.71
year
III.Changed in the
3,946,375.55 -73,795,549.55 -15,203,848.83 -85,053,022.83
current year
（I）Total
-73,795,549.55 1,042,744,050.93 968,948,501.38
comprehensive income
(II) Investment or
decreasing of capital by
owners
1 ． Ordinary Shares inv
ested by shareholders
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in this period
Other Equity instrument Less:
Other
Items Shares Specialize Total of owners’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Attributable profit
Sustaina Other in d reserve equity
d stock Income
ble debt stock
2 ．Holders of other equ
ity instruments invested
capital
3.Amount of shares paid
and accounted as
owners’ equity
4．Other
（III）Profit allotment -1,057,947,899.76 -1,057,947,899.76
1.Providing of surplus
reserves
2．Allotment to the
owners (or -1,057,947,899.76 -1,057,947,899.76
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
61
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in this period
Other Equity instrument Less:
Other
Items Shares Specialize Total of owners’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Attributable profit
Sustaina Other in d reserve equity
d stock Income
ble debt stock
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other 3,946,375.55 3,946,375.55
IV. Balance at the end of
2,090,806,126.00 2,925,904,356.93 253,468,274.62 528,976,846.38 2,647,676,209.95 8,446,831,813.88
this term
Amount in last year
In RMB
Amount in last year
Other Equity instrument Less:
Other
Items Shares Specialize Total of owners’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Attributable profit
Sustaina Other in d reserve equity
d stock Income
ble debt stock
I.Balance at the end of last 2,090,806,126.00 3,359,791,693.12 402,285,954.24 351,112,266.24 1,764,609,695.85 7,968,605,735.45
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in last year
Other Equity instrument Less:
Other
Items Shares Specialize Total of owners’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Attributable profit
Sustaina Other in d reserve equity
d stock Income
ble debt stock
year
Add: Change of accounting
policy
Correcting of previous
errors
Other
II.Balance at the beginning
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
of current year
III.Changed in the current
-437,833,711.74 -75,022,130.07 177,864,580.14 898,270,362.93 563,279,101.26
year
（I）Total comprehensive
-75,022,130.07 1,778,645,801.41 1,703,623,671.34
income
(II) Investment or
decreasing of capital by -437,833,711.74 -437,833,711.74
owners
1 ． Ordinary Shares investe
d by shareholders
2 ．Holders of other equity i
nstruments invested capital
3.Amount of shares paid
and accounted as owners’
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in last year
Other Equity instrument Less:
Other
Items Shares Specialize Total of owners’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Attributable profit
Sustaina Other in d reserve equity
d stock Income
ble debt stock
equity
4．Other -437,833,711.74 -437,833,711.74
（III）Profit allotment 177,864,580.14 -880,375,438.48 -702,510,858.34
1.Providing of surplus
177,864,580.14 -177,864,580.14
reserves
2．Allotment to the owners
-702,510,858.34 -702,510,858.34
(or 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in last year
Other Equity instrument Less:
Other
Items Shares Specialize Total of owners’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Attributable profit
Sustaina Other in d reserve equity
d stock Income
ble debt stock
2．Used this term
（VI）Other
IV. Balance at the end of
2,090,806,126.00 2,921,957,981.38 327,263,824.17 528,976,846.38 2,662,880,058.78 8,531,884,836.71
this term
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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., 418.2136 million yuan, was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of 115 million yuan to subscribe for 35.9375 million shares. Other legal persons
invested cash of 286.992 million yuan to subscribe for 89.685 million shares. Staff of the Company invested
87.008 million yuan to subscribe for 27.19 million shares. The total is 307.8375 million shares.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong 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 3.8 yuan) with the par value of each share being 1 yuan 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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized
capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000,
i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May
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, 2018，Registration capital:RMB2,090,806,126，Legal representative：Zheng Renfa,Registration
place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32, Zhujiang East Road,
Zhujiang New City, Tihe Disrtict , Guangzhou，The company has set up: Investment Development Dept, Security
Affairs Department, Management Department, Financial Management Department, Base construction Department,
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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, 2018,Registered capital: RMB 26.8 billion. It is a
solely state-owned limited company. Business scope：equity management, organization of asset reorganization and
optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stock
system transformation, project investment, operation and management, traffic infrastructure construction, highway
and railway project operation and relevant industries, technological development, application, consultation and
services, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; The
value-added communication business.
（3）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Management fees and
maintenance of roads, bridges, and car rescue, maintenance, cleaning, concurrently with the company's business s
upporting motor transport, warehousing operations.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway, investm
ent in technological industries and provision of relevant consultation while investing in Shenzhen Huiyan Express
way Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co., Ltd.,Guangdong J
iangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzh
ou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangdong Guangle
Expressway Co.,Ltd. and Guoyuan Securities Co., Ltd.
（4）Scope of consolidated financial statements
The company's 2018(Jan-June) annual consolidated subsidiaries of total 6 companies, The scope of consolidated
financial statements is consistent with the previous period. Refer to Notes X(8), Notes of financial
statements ,Change of consolidation scope and NotesX(9), 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
27,2018.
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
68
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
material doubts as to the continuation capability of the Company.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates are indicated as follows:
Nil
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of corporate accounting
standards. They truly and completely reflect the financial situations, operating results, equity changes and cash
flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the
fiscal year.
3.Operating cycle
An operating cycle for the Company is 12 months, which is also the classification criteria for the liquidity of its
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
The assets paid as the consideration for the business combination & the liabilities assumed on the acquisition date
shall be measured in accordance with the fair value. The difference between the fair value & its carrying amount
shall be recorded into the profits & losses at the current period.
The company will distribute the combination costs on the acquisition date.
The company shall recognize the positive balance between the combination costs & the fair value of the
identifiable net assets it obtains from the acquire as Goodwill while it shall record the negative balance between
the combination costs & the fair value of the identifiable net assets it obtains from the acquire into the profits &
losses of the current period.
As for the assets other than intangible assets acquired from the acquire in a business combination (not limited to
the assets which have been recognized by the acquire), if the economic benefits brought by them are likely to flow
into the enterprise and their fair values can be measured reliably, they shall be separately recognized and measured
in light of their fair values. As for any intangible asset acquired in a combination, if its fair value can be measured
reliably, it shall be separately recognized as an intangible asset and shall measured in light of its fair value. As for
the liabilities other than contingent liabilities acquired from the acquire, if the performances of the relevant
obligations are likely to result in any out-flow of economic benefits from the enterprise, and their fair values can
be measured reliably, they shall be separately recognized and measured in light of their fair values. As for the
contingent liabilities of the acquire obtained in a combination, if their fair values can be measured reliably, they
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
70
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
portion of net profits or losses of subsidiaries for the period attributable to minority interest is presented in the
consolidated income statement below the “net profit” line item as “minority interest”. In the consolidated
financial statements, when the amount of loss for the period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’portion of the opening balance of owners’equity of the subsidiary,
the excess amount should be still allocated against minority interest.
In the report period, If the subsidiary is added through the business combination under the same control, the
beginning balance of the consolidated balance sheet shall be adjusted. The incomes, expenses & profits of the
subsidiary incurred from the beginning of the current period to the end of the reporting period shall be included
into the consolidated profit statement. The cash flow from the beginning of the current period to the end of the
reporting period shall be included into the consolidated cash flow statement.
For purchase of minority interests held by the minority shareholders of a subsidiary, when preparing the
consolidated financial statements, the difference between the long-term equity investment newly gained by buying
minority interests and the portion of net assets consistently calculated from the acquisition date (or the
consolidation date) pursuant to newly added shareholding percentage entitled by the subsidiary should be adjusted
to the owners’ equity (the capital reserve). If the capital reserve is not sufficient to absorb the difference, any
excess is adjusted against retained earnings.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from the
beginning of the subsidiary to the disposal date shall be included into the consolidated profit statement. The cash
flow from the beginning of the subsidiary to the disposal date shall be included into the consolidated cash flow
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.
⑶
When a company is a joint ventures, joint venture investment will be recognized as long-term equity investments
and long-term equity investments are accounted for in accordance with the method of the Notes to Financial State
ments.
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.
71
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
For the company with non-functional currency business, the middle rate of the market exchange rate published by
People’s Bank of China on the date of occurrence of business are recorded as the functional currency, and the
balances of foreign currency shall be adjusted by the end of the month according to the middle rate of the market
exchange rate published by People’s Bank of China at the end of period. The differences between the recording
currency amount converted by the exchange rate at the end of period and the carrying currency amount are as
“Finance Costs – Exchange Gains and Losses” and recorded into the current profits or losses. The exchange
gains and losses related to borrowings on the fixed assets shall be made treatment according to the principles of
borrowing costs capitalization.
（2）Conversion of Foreign Financial statement
If overseas subsidiaries, cooperative enterprises, joint ventures, branches of the company adopt the different
functional recording currency and record the overseas business of the company into the financial statements
through the consolidated statements and the accounting by the equity method, the overseas financial statements
shall be translated as the recording functional currency. Before the translation, the company shall adjust the
accounting period and policy of overseas business in order to make the consistent adjustment, and translate the
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
72
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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. Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus
adjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses is
recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when the
difference between the actual rate and face rate is minor) during the period of holding, and accounted as
investment gains. Actual rate is recognized when obtained, and is not changed in the predictable holding period or
applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
If the company sells or reclassifies large-amount due investments before the expired date (large amount refers to
comparing with the amount before the selling or reclassifying the investments), the company will reclassify the
rest of the investments as financial assets for sale, and in the current accounting period or within two complete
accounting years, no financial assets will be classified as holding due assets, except for the following situations:
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
interests) plus the related trade expenses is recognized as initial amount when obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment gains. Change of fair
value is accounted as capital reserves (other capital reserves) at the end of term.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
Meanwhile, the corresponding part of accumulated change of fair value accounted as owners’ equity is
transferred into investment gain/loss.
(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade expenses. Successive
measurement will be on the basis of amortized costs.
3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is terminated if
almost all risks and rewards attached to the asset have been transferred to the acceptor. If retain all the risks and
rewards of ownership of financial assets, the financial assets can be confirmed.
When determine whether the transfer of financial assets meet the conditions of confirmation of the above financial
assets, the principle of substance being more important than form should be adopted. The transfer of financial
assets can be divided into overall transfer and part transfer of financial assets. If the transfer of financial assets
meet the conditions of terminating confirmation, the following the difference of the two amounts will be included
in the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally
accounted as owners’ equity (when the asset to be transposed is saleable financial asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book value of the
transferred financial assts, the difference between the confirmed part and the unconfirmed part (in this case, the
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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’ equity originally included should be transferred
out altogether and confirmed as impairment loss.
②Holding the impairment provision of expired investments:
The measurement of holding the impairment provision of expired investment will be according to the method of
the measurement of impairment provision for receivables.
11.Accounts Receivable
（1）Accounts receivable with material specific amount and specific provisioned bad debt preparation.
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
The basis for determining the combination of Credit risk：The accounts receivable whose single amount is
over RMB 1 million & accounts for over 10% of the accounts receivable amount. Conduct the devalue test
separately. Set up the bad debt reserve according to the shortfall of the present value of expected future cash flows
against its carrying amount and record it into the profits & losses at the current period.
In the Groups, adopting aging analysis method to withdraw bad debt provision
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
√ 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
Separately carry out the impairment test, prepare the bad debt according to the expected future cash flow
present value below the balance of its book value, and take account of the current profit and loss.
(3)Account receivable with non-material specific amount but specific bad debt preparation
The accounts receivable under 5 years of age which are not
Reason of individually withdrawing bad debt provision
significant without any business connections any more.
Conduct the devalue test separately. Set up the bad debt
reserve according to the shortfall of the present value of expected
Witharawal method for boad debt provision
future cash flows against its carrying amount and record it into
the profits & losses at the current period.
12.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
1.Investories class: The company’s stocks can be classified as: raw materials, inventory goods, low-value
consumables & other materials, etc.
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
the parts sold.
(2) The sale is highly probable, that is, the company has already made a resolution on a sale plan and obtained a
certain purchase commitment, which is expected to be completed within one year. Where the relevant regulations
require the approval of the relevant authority of the company or the regulatory authority before it can be sold, the
approval has been gained.
The determined purchase commitment refers to the legally binding purchase agreement signed between the
company and other parties. The agreement includes important terms such as transaction price, time and
sufficiently severe penaltybreach of penalty, making the agreement unlikely to be significantly adjusted or
cancelled.
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’ equity of the combined party shall be as
the initial investment cost in the individual financial statements and the consolidated financial statements as per
the shareholding proportion. The capital reserves shall be adjusted for the balance between the sums of the book
value of the equity investment of the combined party held on the combination date and the new investment cost
increased on the combination date minus the initial investment cost of long-term equity investment. The retained
earnings shall be adjusted if the capital reserves are insufficient to offset.
②For the business combination under non-common control, the initial investment cost shall be recognized
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:
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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 10 of Important Accounting Policies and Accounting Estimates 21 in
Notes 5 of Financial Statements”.
15. Entrusted Loans
The entrusted loans shall be made bookkeeping according to the actually entrusted loan amount. The receivable
interests shall be withdrawn according to the interest rate stated in the entrusted loans.
For the impairment test method and the impairment provision withdrawing method of the entrusted loans, please
refer to “Long-term Assets Impairment in Article 10 of Important Accounting Policies and Accounting Estimates
21 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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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 in Article 10 of Important Accounting Policies and
Accounting Estimates 21 in Notes 5 of Financial Statements”.
17.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management,
and operation with service life of more than one year. Fixed assets are recognized when all of the following
conditions are satisfied：Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2)
The cost of the fixed asset can be reliable measured.
（2）Depreciation method
Evpected useful Annual depreciation
Type Depreciation methnod Residual rate（%）
life(Year) rate(%)
Guangfo Expressway Working flow basis 28 years 0
Fokai
Expressway-Xiebian to Working flow basis 40 years 0
Sanbao Section
Fokai
Expressway-Sanbao to Working flow basis 30 years 0
Shuikou Section
Jingzhu Expressway
Working flow basis 30 years 0
Guangzhu Section
House Building The straight-line method 20-30 years 3%-10% 3%-4.85%
Machine Equipment The straight-line method 10 years 3%-10% 9%-9.7%
Transportation
The straight-line method 5-8 years 3%-10% 11.25%-19.4%
Equipment
Electric Equipment and
The straight-line method 5-15 years 3%-10% 6 %-19.4%
other
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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 10 of Important Accounting Policies and Accounting
Estimates 21 in Notes 5 of Financial Statements”。
18.Construction-in process
1. Calculation of Construction-in-process:The constructions in process are classified & accounted according to the
established projects.
2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets
All the expenditures that bring the construction in process to the expected condition for use shall be the credit
value of the fixed asset. If the fixed asset construction in process has already reached the expected condition for
use, but hasn’t been made the final account; it shall be carried forward to a fixed asset according to its estimated
value based on the budget, cost or actual cost of the construction starting from the date when it reaches the
expected condition for use, and the fixed asset shall be depreciated according to the company’s depreciation
policy for fixed assets. After the final account has been made, the original provisional estimated value shall be
adjusted according to the actual cost, but the depreciation which has originally been counted & drawn shall not be
adjusted.
3．Test Method for Construction-in-Process Impairment and Counting & Drawing Method
For the impairment test method and the impairment provision withdrawing method of the Construction-in process ,
please refer to “Long-term Assets Impairment in Article 10 of Important Accounting Policies and Accounting
Estimates 21 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:
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct or produce the
assets which meet the capitalization conditions, and expend by cash or transferring non-cash assets or bearing
interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization,
the period of the break of capitalization of Loan costs is not included.
When the construction or production meets the intended use or sale of state of capitalization conditions, the Loan
costs should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used individually, the
capitalization of the loan costs of the assets should be stopped.
Where each part of a asset under acquisition and construction or production is completed separately and is ready
for use or sale during the continuing construction of other parts, but it can not be used or sold until the asset is
entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.
3．Capitalization Suspension Period
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If
the interruption is a necessary step for making the qualified asset under acquisition and construction or production
ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs
incurred during such period shall be recorded into the profits & losses at the current period, till the acquisition and
construction or production of the asset restarts.
4. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the asset which
satisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less weighted
average of specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied.
Capitalizing rate is determined according to weighted average interest of common Loan.
If the Loan has discount or premium, the discount or premium amount should be determined according to
actual interests in each accounting period. The interest amount should be adjusted in each period.
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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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） 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
assets market in the current or the near future adversely affect the company.
③ The improvement of the market interest rates or other market investment returns in the current period,
influence the company to calculate assets estimating the discount rate of the present value of future cash flow and
result in the sharp drop of the recoverable amount of the assets.
④ There is evidence that shows the assets have become obsolete or the entities have been damaged.
⑤ The assets have been or will be idle, terminated the use or planned to dispose in advance.
⑥ The evidence in the internal report of the company shows that the economic performance of assets has been
less than or lower than the expected, such as the net cash flow created by assets or the achieved operating profit
(or loss) is far below (or above) the estimated amount.
⑦ Other evidences indicate the impairment of assets may have occurred.
(3) Measurement of the Recoverable Amount of the Assets
The recoverable amount shall be estimated if there exists the impairment for the assets. The recoverable amount
should be recognized according to the higher one between the net amount of the fair value minus the disposal
costs and the present value of the cash flow of assets expected in the future.
(4) Determination of Asset Impairment Loss
The measurement results of the recoverable amount show that the book value of assets shall be reduced to the
recoverable amount and the reduced amount shall be recognized as the impairment loss of assets and recorded into
the current profits and losses, and the impairment provisions of the relevant assets are withdrawn if the
recoverable amount of the assets is less than the book value. After the recognition of the assets impairment loss,
the depreciation or amortization costs of the impairment assets should be made adjustment accordingly in the
future period in order to make the assets to systematically amortize the book value of the assets after adjusted
within the remaining service life (the estimated residual value deducted). The impairment loss of assets after
recognized shouldn’t be reversed in the future accounting period.
(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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
When the relevant asset group or the asset group combination including the goodwill are conducted the
impairment test, the impairment test should be firstly conducted for the asset group without the goodwill or the
asset group combination, the recoverable amount shall be calculated and the corresponding impairment loss shall
be recognized by comparison with the relevant book value if there exists the impairment for the asset group
relevant to the goodwill or the asset group combination. Then the impairment test should be conducted for the
asset group with the goodwill or the asset group combination, the impairment loss of the goodwill shall be
recognized and made the treatment according to the provisions of the asset group impairment stated in the notes if
the recoverable amount of the relevant asset group or the asset group combination is less than the book value by
comparison of the book value of these relevant asset group or the asset group combination (including the book
value of the goodwill amortized) with the recoverable amount.
22.Long-term amortizable expenses
Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods of all expenses
are more than one year (excluding 1 year), they should be amortized in the regulated years.
23.Remuneration
（1）Accounting treatment of short-term remuneration
Remuneration refers to all kinds of rewards or compensation that the Company gives to get in return for the
services its employees provide or employment termination. It includes short-term compensation, post-employment
benefits, demission benefits and other long-term employee benefits.
Enterprises to provide employees spouse, child welfare, dependents, survivors and other beneficiaries
of deceased employees, etc., also belong to payroll.
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’ withdraw the demission welfare provided
84
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
due to the rundown suggestion or the termination of labor relations plans. (2) when the enterprise recognizes the
costs or the expenses related to the reorganization of demission welfare payment.
The economic compensation before the official retirement date shall be belong to the demission welfare when the
implementation of the internal retirement plan for workers. During the period from the termination of service date
to the normal retirement date, the paid internal retirement payroll and social insurance charges shall be once
recorded into the current profits and losses. The economic compensation after the official retirement date (such as
the normal retirement pension) should be handled according to the welfares after the demission.
24.Estimated liabilities
The company should recognize the related obligation as a provision for liability when the obligation meets the
following conditions:
(1) That obligation is a present obligation of the enterprise;
(2) It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
(3) A reliable estimate can be made of the amount of the obligation.On the balance sheet date, an enterprise shall
take into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the
Contingencies to measure the estimated liabilities in accordance with the best estimate of the necessary expenses
for the performance of the current obligation.
When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized as an asset only
when it is virtually certain that the reimbursement will be obtained. Besides, the amount recognized for the
reimbursement should not exceed the book value of the estimated liabilities
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
differences of foreign financial statements.
27. Revenues
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
The company’s incomes mainly include the toll service revenues and the services provision.
(1) The recognition principle of the toll service revenues is that the toll revenues refer to the charges of operating
the toll roads and shall be recognized in the actual charge.
(2) The recognition principle of the services provision is as follows:
The labor services started and completed within the same fiscal year shall be recognized as the revenues when the
labor services finished. If the labor services started and completed in the different fiscal year and under the
reliable estimation of the provided services transaction results, the company shall recognize the relevant service
incomes according to the completion percentage method at the balance sheet date. The results of the transaction
can be estimated reliably when the following requirements are all met: (1) total revenues and total labor costs can
be measured reliably. (2) the economic benefits relevant to the transaction will flow into the enterprise. (3) the
competition degree of the labor services can be reliably determined.
28. Government Grants
（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
86
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
out in the period that it needs to be refunded according to the following stipulations: (1) Where it was written
down the book value of the underlying assets at the time of initial recognition, then the book value of the assets
shall be adjusted; (2) Where there is a related deferred income, it shall write-down the book balance of related
deferred income and the excess part shall be included in the current profit and loss; (3) Where belongs to other
cases, that shall be directly included in the current profits and losses.
29.Deferred income tax assets and deferred income tax liabilities
The company is likely to determine the deferred income tax assets produced from deductible temporary
differences with the limit of offsetting the taxable income of temporary difference.
The Company confirms the temporary differences of the taxable that is not paid in the current and prior periods as
the deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger and
those will affect either accounting profit or the temporary differences of the taxable income when the transactions
occur are not included in the deferred income tax liabilities.
30.Accounting Methods of Income tax
The company’s income tax is accounted in Balance sheet liability approach.
The company recognizes the sum of current income tax and deferred tax as the income tax expenses(or income) in
the income statement on the basis of calculating and determining the income tax of the current period(namely
the current taxes payable) and the deferred tax (the deferred tax expenses or income ), but excluding the
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
⑵Change of accounting estimations
□ Applicable √ Not applicable
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
Sales by sale of goods or provision of
VAT 3%、5%、6%、10%、11%、16%、17%
taxable services
City maintenance and construction tax The actual payment of turnover tax 7%、5%
Enterprise income tax Taxable income 25%
.Education surcharges The actual payment of turnover tax 3%
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Local Education surcharges
The actual payment of turnover tax 2%
2.Preferential tax
Nil
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Amount in year-begin
Cash 82,371.11 66,065.04
Bank deposit 1,820,722,446.96 2,362,279,050.70
Other 661,321.30 697,584.68
Total 1,821,466,139.37 2,363,042,700.42
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Category
Book valu Book valu
Amount Proporti Amount Proportion Amount Proporti Amount Proportion
on(%) (%) on(%) (%)
Account
receivable
with single
major amount
65,760,470
and 43,102,039.46 45.54% 43,102,039.46 65,760,470.23 70.64%
.23
withdrawal
bad debt
provision for
single item
Account
receivable 26,882,155
51,551,743.98 54.46% 542,607.74 1.05% 51,009,136.24 27,331,295.37 29.36% 449,140.15 1.64%
.22
withdrawalba
d debt
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
provision by
group of
credit risk
characterstics
92,642,625
Total 94,653,783.44 100.00% 542,607.74 0.57% 94,111,175.70 93,091,765.60 100.00% 449,140.15 0.48%
.45
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable □Not applicable
In RMB
Receivable accounts Amount in year-end
（Unit） Receivable accounts Bad debt provision Proportion Reason
Guangdong Union
Been recovered after the
Electronic Services Co., 43,102,039.46
period
Ltd.
Total 43,102,039.46 -- --
Account receivable on which bad debt provisions are provided on age basis in the group：
√ Applicable □Not applicable
In RMB
Balance in year-end
Aging
Receivable accounts Bad debt provision Withdrawal proportion
Subitem within 1 year
Subtotal within 1 year 48,765,342.11 0.00%
1-2 years 1,646,564.11 164,656.41 10.00%
2-3 years 1,079,837.76 323,951.33 30.00%
3-4 years 50.00%
4-5 years 60,000.00 54,000.00 90.00%
Total 51,551,743.98 542,607.74 1.05%
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not 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 RMB1.00 ; recovery or payback for bad debts Amount is
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
RMB0.00.
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Aging Proportion(%) Bad debt
provision
Guangdong Union Electronic Services Co., Ltd. 43,102,039.46 Within 1 year 45.54
Guangdong Humen Bridge Co., Ltd. 27,048,223.47 Within 1 year 28.58
Guangdong Jingzhu Expressway Guangzhu 4,447,474.99 Within 1 year 4.70
North Section Co., Ltd.
Shandong Boan Intelligent Technology Co., Ltd. 3,393,474.35 Within 1 year 3.59
Guangdong Qinglian Highway Development 3,130,000.00 Within 1 year 3.31
Co., Ltd.
Total 81,121,212.27 -- 85.72
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
3. Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance in year-begin
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 1,527,512.44 88.09% 4,238,442.26 95.21%
1-2 years 1,762.53 0.10% 8,721.49 0.20%
2-3 years 35,000.00 0.79%
Over 3 years 204,738.00 11.81% 169,738.00 3.80%
Total 1,734,012.97 -- 4,451,901.75 --
90
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
Nil
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Amount Time Proportion(%)
Guangzhou Tuzhiling Computer Technology Co., 624,469.35 Within 1 year 36.01
Ltd.
China pacific property insurance co., Ltd. 594,467.44 Within 1 year 34.28
Guangzhou Maritime Court 169,738.00 Over 5 years 9.79
Guangzhou Haohang Electronic Technology Co., 110,990.40 Within 1 year 6.40
Ltd.
Shenzhen Gonglian Construction Engineering 62,575.50 Within 1 year 3.61
Co., Ltd.
Total 1,562,240.69 -- 90.09
4.Dividend receivable
（1）Dividend receivable
In RMB
Items Balance in year-end Balance in year-begin
China Everbright Bank Co., Ltd. 42,581,144.86
Guoyuan Securities Co., Ltd. 11,940,297.90
Total 54,521,442.76
（2）Significant dividend receivable aged over 1 year
Nil
5.Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
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 Proporti Amount Proportion Book value
n(%) n(%) on(%) (%)
53,351,56
Other Account 29.94% 53,351,565.01 100.00% 53,351,565.01 75.72% 53,351,565.01 100.00%
5.01
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
receivable with
single major
amount and
withdrawal bad
debt provision for
single item
Other Account
receivable
withdrawal bad
124,819,7 15,415,512
debt provision by 70.06% 1,543,724.65 1.24% 123,275,981.57 17,110,594.66 24.28% 1,695,082.59 9.91%
06.22 .07
group of credit
risk
characteristics
Other Account
receivable with
minor individual 178,171,2 15,415,512
100.00% 54,895,289.66 30.81% 123,275,981.57 70,462,159.67 100.00% 55,046,647.60 78.12%
amount but bad 71.23 .07
debt provision is
provided
Total
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
- Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □Not applicable
In RMB
Balance in year-end
Other receivable（Unit）
Other receivable Bad debt provision Proportion Reason
The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd,
Guangdong Expressway technology investment Co., Ltd once paid 18,000,000.00
yuan into Kunlun Securities Co., Ltd. Qinghai Province Xining City’s intermediate
people’s court made a adjudication under law declared that Kunlun Securities Co.,
Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007, The
Kunlun Securities Company and Guangdong Expressway Technology Investment Co., Ltd had switched
49,343,885.10 49,343,885.10 100.00%
Co.,Ltd. the money that paid into Kunlun Securities Co., Ltd to other account receivable, and
follow the careful principle to doubtful debts provision. The RMB 710,349.92 Credit
was Recovered in 2008, and the provision for bad debt is deducted, The 977,527.77
yuan credit was recovered in 2011, and the provision for had debt is deducted. The
652,012.00 yuan Credit was recovered in 2014, and the provision for had debt is
deducted.
Guangdong Expressway Technology investment Co., Ltd .should charge Beijing
Gelin Enze Organic Fertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it
was entrust loan, three million was temporary borrowing 12,400.00 yuan is the
commission loan interest, the rest of it was advance money for another, Beijing Gelin
Enze Organic Fertilizer Co., Ltd’s operating status was had and had already ceased
4,007,679.91 4,007,679.91 100.00%
producing, Accordingly, the controlling subsidiary of the company Guangdong
Expressway Investment Co., Ltd. accounted full provision for Bad debt
Beijing Gelin Enze
12,220,079.91 yuan provision.
Organic Fertilizer Co.,
The company in 2014 recovered arrears of 8,000,000.00
Ltd. yuan, rushed back to the provision for bad debts and write off uncollected interest ent
93
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Balance in year-end
Other receivable（Unit）
Other receivable Bad debt provision Proportion Reason
rusted loans according to tThe settlement agreement of 212,400.00 yuan.
Total 53,351,565.01 53,351,565.01 -- --
94
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
Subtotal within 1 year 117,023,751.56
1-2 years 10.00%
2-3 years 32,457.98 9,737.39 30.00%
3-4 years 50.00%
4-5 years 90.00%
Over 5 years 1,533,987.26 1,533,987.26 100.00%
Total 118,590,196.80 1,543,724.65 1.30%
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision
□ 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（%）
Guangdong Litong Real estate Investment Co., 1,505,864.00 Deposit
Ltd
Guangdong Guanghui Expressway Co., Ltd 1,413,708.90 Deposit
Guangdong Expressway Co., Ltd. 575,630.98 Administration
expenses,Quality
guarantees fund
Zhaoqing Yuezhao Highway Co., Ltd. 415,614.00 Deposit
Guangdong Xinyue Traffic Investment Co.,Ltd. 415,442.60 Quality guarantees
Beijing Shibang Weilishi Property Management 393,331.00 Deposit
Services Co., Ltd.
Guangdong Guangzhu West Line Expressway 185,366.60
Quality guarantees
Co., Ltd.
Guangshen Zhu Expressway Co., Ltd. 185,014.40 Quality guarantees
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in year-end
Name Other account Bad debt Withdrawal Reason
receivable provision proportion（%）
CRCC Harbour & Channel Engineering Bureau 165,169.25
Quality guarantees
Group Co., Ltd.
Beijing Gongke Feida Transport Engineering 115,475.20
Quality guarantees
Development Co., Ltd.
Guangdong Feida Transportation Engineering 90,920.75
Quality guarantees
Development Co., Ltd.
Guangdong Highway Construction Co., Ltd. 76,563.00 Quality guarantees
Chengdu Shuguang Fibre-optical Metwork Co., 59,758.09
Quality guarantees
ltd.
Guangdong Jingzhu Expressway Guangzhu 55,694.00
Quality guarantees
North Section Co., Ltd.
Guangdong Boda Expressway Co., Ltd. 51,808.80 Quality guarantees
Shenzhen Expressway Engineering consulting 50,000.00 Bid security
Co.,ltd.
Guangdong West Coastal Expressway Zhuhai 40,967.05 Quality guarantees
Section Co., Ltd.
Guangzhou Chengcheng Auto Leasing Service 30,000.00 Deposit
Co., ltd.
Guangdong Jiangzhong Expressway Co., Ltd. 28,120.00 Quality guarantees
Pengjiang Shunfeng Auto Leasing Service 25,500.00 Deposit
Center
Guangzhou Tuzhiling Computer Technology 25,438.80 Quality guarantees
Co., Ltd.
Guangdong Road & Bridge Construction 24,972.70 Quality guarantees
Development Co., Ltd.
Guangzhou Express Transportation 22,094.40 Quality guarantees
Construction Co., Ltd.
Guangzhou Longfeng Auto Leasing Co., Ltd. 20,000.00 Deposit
Guangzhou Beihuan Expressway Co., Ltd. 16,590.40 Quality guarantees
Guangzhou Huanan Road & Bridge Co., Ltd. 16,000.00 Quality guarantees
Guangzhou Saitisi Electromechanical 15,875.00 Quality guarantees
Installation Engineering Co., Ltd.
Shanxi Hantang Computer Co., Ltd. 14,250.00 Quality guarantees
Guangdong Shenshanxi Expressway Co., Ltd. 13,246.40 Quality guarantees
Guangzhou Daguang Expressway Co., Ltd. 12,749.60 Quality guarantees
Guangdong Shenshan Expressway East Section 12,000.00 Quality guarantees
Co., Ltd.
96
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in year-end
Name Other account Bad debt Withdrawal Reason
receivable provision proportion（%）
Guangdong Humen Bridge Co., Ltd. 11,107.50 Quality guarantees
Guangzhou Dingrong Information Technology 10,950.00 Quality guarantees
Co., Ltd.
Guangzhou Suihua Expressway Co., Ltd. 10,400.00 Quality guarantees
Zhongshan Global Environmental Engineering 10,000.00 Deposit
Co., Ltd.
Guangdong Gaoda Property Development 9,940.70 Deposit
Co.,ltd.
Guangdong Zhonglin Electrical Installation 8,820.00 Quality guarantees
Engineering Co., Ltd.
Guangdong Maozhan Expressway Co., Ltd. 8,747.20 Quality guarantees
Guangdong Shanfen Expressway Co., Ltd. 8,028.80 Quality guarantees
Guangdong Baomao Expressway Co., Ltd. 7,633.60 Quality guarantees
Guangdong Yuedong Expressway Industry 7,367.20 Quality guarantees
Development Co., Ltd.
Guangdong Guangle Expressway Co., Ltd. 7,248.00 Quality guarantees
Foshan Guangsan Expressway Co., Ltd. 6,492.00 Quality guarantees
Guangdong Yangmao Expressway Co., Ltd. 6,004.80 Quality guarantees
Guangdong West Coastal Expressway Xinhui 5,753.20 Quality guarantees
Section Co., Ltd.
Huishen(Yantian)Expressway Huizhou Co., 5,600.00 Quality guarantees
Ltd.
Guangzhou Expressway Co., Ltd. 5,528.80 Quality guarantees
Guangdong Litong Technology Investment Co., 5,273.00 Quality guarantees
Ltd.
Guangdong Maoming Nanda Electric Power 5,000.00 Quality guarantees
Construction Co., ltd. Huizhou Branch
Guangdong Zhaoyang Expressway Co., Ltd. 4,304.00 Quality guarantees
Guangdong Yueyun Traffic Co., Ltd. 3,032.00 Quality guarantees
Jiangmen Jianghe Expressway Co., Ltd. 2,539.20 Quality guarantees
Guangzhou Guangcong Expressway Co., Ltd. 2,027.20 Quality guarantees
Foshan Nanhai Jiasheng Drinking Water Chain 1,800.00 Deposit
Shanxi Sihe Traffic Engineering Co., Ltd. 1,600.00 Quality guarantees
Beijing Zhonghe Tianxia Management 1,000.00 Guarantees
Consultation Co., Ltd.
Guangdong Weishi Highway Engineering Co., 146.30 Quality guarantees
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount in year-end
Name Other account Bad debt Withdrawal Reason
receivable provision proportion（%）
Ltd.
Total 6,229,509.42
- Other receivable accounts withno large amount and were provided had debt provisions
individually at end of period.:Nil
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB
0.00 ; recovery or payback for bad debts Amount is 151,357.94 yuan.
Where the current bad debts back or recover significant amounts:Nil
(3)The actual write-off other accounts receivable
Nil
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Securities trading settlement funds balance 49,343,885.10 49,343,885.10
Guarantee deposit 5,946,185.54 Disposit 5,973,582.34
Current account of gelin enze 4,007,679.91 4,007,679.91
Pretty cash 3,540,100.00 3,950,100.00
Advertising and service fee 1,045,029.88 2,187,578.36
Assets Disposit 106,000,000.00
Other 8,288,390.80 4,999,333.96
Total 178,171,271.23 70,462,159.67
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears
party
In RMB
98
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable(%)
Zhuhai (National)
High-tech Industrial
Development Zone
Management
Assets Disposit 106,000,000.00 Within 1 year 59.49%
Committee Planning
and Construction
Environmental
Protection Bureau
Kunlun Securities Securities trading set
49,343,885.10 Over 5 years 27.69% 49,343,885.10
Co.,Ltd tlement funds
Beijing Gelin Enze Current account 4,007,679.91 Over 5 years 2.25% 4,007,679.91
Guangdong Litong
1-2 years, Over 5
Real estate Guarantees fund 1,505,864.00 0.85%
years
Investment Co., ltd.
Heshan
Communication Real
Current account 1,470,000.00 Over 5 year 0.83% 1,470,000.00
estate Development
Company
Total -- 162,327,429.01 -- 91.11% 54,821,565.01
Notes：Zhuhai (National) High-tech Industrial Development Zone Management Committee
Planning and Construction Environmental Protection Bureau of 106 million yuan assets disposal
amount was recovered on July 3, 2018. Relevant matters have been announced by the company on
July 4, 2018.
(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
99
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
6.Inventory
（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
Raw material 139,076.49 139,076.49
Total 139,076.49 139,076.49
Whether the company is required to comply with the "Shenzhen Stock Exchange 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 capita
lized
(4) Completed unsettled assets formed from the construction contact at the period-end
Nil
7.Non-current asset due within 1 year
In RMB
Items
Year-end balance Year-beginning balance
Advance business tax 51,745.32 55,669.14
Total 51,745.32 55,669.14
Other notes
8.Other current assets
In RMB
Items
Year-end balance Year-beginning balance
Input tax to be deducted 921,856.82 76,576.08
Total 921,856.82 76,576.08
Other notes
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
9. 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
1,696,401,396.77 36,793,200.00 1,659,608,196.77 1,788,150,824.93 36,793,200.00 1,751,357,624.93
Instruments
Measured by fair value 861,033,095.04 861,033,095.04 952,782,523.20 952,782,523.20
Measured by cost 835,368,301.73 36,793,200.00 798,575,101.73 835,368,301.73 36,793,200.00 798,575,101.73
Total 1,696,401,396.77 36,793,200.00 1,659,608,196.77 1,788,150,824.93 36,793,200.00 1,751,357,624.93
(2) Available-for-sale financial assets measured by fair value at the period-end
In RMB
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 861,033,095.04 861,033,095.04
Changed amount of the
fair value accumulatively
343,472,218.24 343,472,218.24
included in other
comprehensive income
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Ban
k According to the closing price of June 30, 2018 of 3.66 yuan, the final calculation of fair value
was 861,033,095.04 yuan.
(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
Period-begin Increa Decrea Period-begin Increa Decr proportion the
Period -end Period -end
se se se ease among the reporting
101
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
investees period
Guangdong Radio
and Television
Networks
investment No.1 50,000,000.00 50,000,000.00 3.11%
Limited
partnership
enterprise
Kunlun Securities
30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 5.74%
Co., Ltd.（Notes1）
Huaxia Securities
5,400,000.00 5,400,000.00 5,400,000.00 5,400,000.00 0.27%
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
748,348,301.73 748,348,301.73 9.00%
Expressway Co.,
Ltd.
Total 835,368,301.73 835,368,301.73 36,793,200.00 36,793,200.00 --
Notes 1.The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered liquidation procedure in
October 2005. A wholly owned subsidiary of Guangdong Expressway Technology Investment Co., Ltd. Will
invest Kunlun Securities Co., Ltd.'s full provision for impairment of 30 million yuan.
Notes 2: The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in
December 2005. The Company made full provision for impairment in respect of this long-term equity investment
of RMB 5.4 million.
Notes 3: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co.,
Ltd. As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was
279.132 million yuan and the appraised value was - 2299.5486 million yuan ,On October 14, 2005, Jianyin
CITIC Asset Management Co., Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the
Company. Jianyin CITIC Asset Management Co., Ltd. was willing to pay the price of not more than RMB 42
million to acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions.
The Company replied on December 5, 2005, abandoning the preemptive right under the same conditions. The
Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investm ent
of 1.62 million yuan.
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
102
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
Balance of the withdrawn
impairment at the 36,793,200.00 36,793,200.00
period-end
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
103
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
10. Long-term equity investment
In RMB
Increase/decrease
Neg Investment Withdra Closing
Additi Adjustment of Cash bonus or wal of balance of
Opening ative profit and loss Closing
Investees onal other Changes of profits impairm Othe impairme
balance balance
inve recognized nt
comprehensiv other equity announced to ent r
invest
stme under the equity e income issue provisio provision
ment
nt method n
I. Joint venture
Guangdong
1,050,190,85
Guanghui 949,906,833.96 134,138,087.25 3,951,780.00 37,805,847.20
4.01
Expressway
Co., Ltd.
Zhaoqing
Yuezhao 277,453,203.
291,906,117.18 28,635,945.38 43,088,859.48
08
Highway
Co., Ltd.
1,241,812,951. 1,327,644,05
Subtotal 162,774,032.63 3,951,780.00 80,894,706.68
14 7.09
2. Affiliated Company
Shenzhen
214,011,066.
Huiyan 196,197,198.21 17,813,868.36
57
Expressway
Guangdong
Jiangzhong 176,610,703.
173,502,304.11 6,897,600.54 3,789,200.79
Expresswa 86
y Co.,. Ltd.
Ganzhou
222,607,661.
Kangda 208,768,922.86 13,838,738.80
66
Expressway
Gan
Ganzhou 207,454,916.
204,404,703.35 3,050,213.53
Gankang 88
Expressway
104
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Increase/decrease
Neg Investment Withdra Closing
Additi Adjustment of Cash bonus or wal of balance of
Opening ative profit and loss Closing
Investees onal other Changes of profits impairm Othe impairme
balance balance
inve recognized nt
comprehensiv other equity announced to ent r
invest
stme under the equity e income issue provisio provision
ment
nt method n
Guangdong
Yueke
222,946,179.
Technology 215,548,332.90 7,397,846.46
36
Petty Loan
Co., Ltd.
Guoyuan
795,116,263.
Securities 807,040,587.43 5,004,857.02 -4,983,478.43 -5,404.45 11,940,297.90
67
Co., Ltd.
1,805,462,048. 1,838,746,79
Subtotal 54,003,124.71 -4,983,478.43 -5,404.45 15,729,498.69
86 2.00
3,047,275,000. 3,166,390,84
Total 216,777,157.34 -4,983,478.43 3,946,375.55 96,624,205.37
00 9.09
11. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Items Houses and buildings Land use right Construction in progress Total
I.Original value
1.Opening balance 12,664,698.25 12,664,698.25
2.Increased amount of
the period
（1）Outsourcing
(2)Inventory, Fixed
assets and Construction
project into
(3)Enterprise
consolidation
105
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Houses and buildings Land use right Construction in progress Total
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 12,664,698.25
II.Accumulated
depreciation accumulated
amortization
1.Opening balance 9,908,940.57 9,908,940.57
2.Increased amount of
232,106.70 232,106.70
the period
(1)Withdrawal or
232,106.70 232,106.70
amortization
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 10,141,047.27 10,141,047.27
III. Impairment provision
1.Opening balance
2.Increased amount of
the period
（1）Withdrawal
3.Decreased amount
of the period
（1）Disposal
106
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Houses and buildings Land use right Construction in progress Total
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 2,523,650.98 2,523,650.98
2.Opening book 2,755,757.68 2,755,757.68
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book balue Reason
Transportation and other ancillary
Transportation and other ancillary facilities 1,661,619.56
facilities, Not accreditation
107
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
12. 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 8,947,295,870.80 5,130,574,408.53 351,864,147.46 126,486,080.83 60,529,297.78 640,530,500.31 16,717,550,496.37
2.Increased amount of the period 442,475.45 735,013.97 1,177,489.42
（1）Purchase 442,475.45 735,013.97 1,177,489.42
（2）Transfer of project under
construction
(3)Increased of Enterprise
consolidation
3.Decreased amount of the period 332,304,199.42 5,806,302.94 7,500.00 11,248,529.50 2,005,831.87 351,372,363.73
（1）Disposal or scrap 332,304,199.42 64,392.90 7,500.00 11,248,529.50 7,747,741.91 351,372,363.73
（2）Reclassification adjustment 5,741,910.04 -5,741,910.04
4.Closing balance 1,460,270,190.66 8,947,295,870.80 4,798,270,209.11 346,057,844.52 126,478,580.83 49,723,243.73 639,259,682.41 16,367,355,622.06
II. Accumulated depreciation
1.Opening balance 1,460,270,190.66 3,440,540,410.91 2,553,720,215.76 224,291,495.10 60,384,283.80 48,027,809.99 424,881,199.44 8,212,115,605.66
2.Increased amount of the period 248,113,498.44 119,192,484.76 7,015,995.01 5,610,652.80 1,364,344.73 17,456,629.29 398,753,605.03
（1）Withdrawal 248,113,498.44 119,192,484.76 7,015,995.01 5,610,652.80 1,364,344.73 17,456,629.29 398,753,605.03
108
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Guangfo Jingzhu Expressway House and Machinery Transportation Electricity equipment
Items Fokai Expressway Total
buildings equipment equipment
Expressway Guangzhu section and other
（2）Reclassification adjustmen
3.Decreased amount of the period 171,593,287.96 4,639,971.00 7,200.00 10,573,293.09 2,414,348.97 189,228,101.02
（1）Disposal or scrap 171,593,287.96 61,817.18 7,200.00 10,573,293.09 6,992,502.79 189,228,101.02
（2）Reclassification adjustmen 4,578,153.82 -4,578,153.82
4.Closing balance 1,460,270,190.66 3,688,653,909.35 2,501,319,412.56 226,667,519.11 65,987,736.60 38,818,861.63 439,923,479.76 8,421,641,109.67
II. Accumulated depreciation
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal or scrap
4.Closing balance
III. Impairment provision
1.Opening balance 5,258,641,961.45 2,296,950,796.55 119,390,325.41 60,490,844.23 10,904,382.10 199,336,202.65 7,945,714,512.39
2.Increased amount ofthe period 5,506,755,459.89 2,576,854,192.77 127,572,652.36 66,101,797.03 12,501,487.79 215,649,300.87 8,505,434,890.71
（1）Withdrawal
3.Decreased amount of the period
109
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
House and buildings 89,074,691.12
facilities, Not accreditation
Due to absorption, merger and
House and buildings 722,312.46 reorganization, the formalities for change
are in progress
110
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
13. Project under construction
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Sanbao To
Shuikou 620,706,752.60 620,706,752.60 347,299,458.95 347,299,458.95
Expansion project
Odd project 8,763,197.00 8,763,197.00 8,763,197.00 8,763,197.00
Total 629,469,949.60 629,469,949.60 356,062,655.95 356,062,655.95
(2) Changes of significant construction in progress
In RMB
Capita
Includin
liz
g:
Transferr Othe ation
Capitaliz capitaliz Source
Name of Opening ed to r Proporti Project of
Budget Increase End balance ation of ation of of
project balance fixed decr on % process interes
interest interest funding
assets ease t
this
rate
period
(%)
Sanbao 3,426,206,660.00 347,299, 273,407, 620,706,752.60 29.19% 29.19% 20,665,801.20 14,731,029.23 4.57% Other
111
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
To 458.95 293.65
Shuikou
Expansi
on
project
Odd proj 8,763,19
8,763,197.00 Other
ect 7.00
356,062, 273,407,
Total 3,426,206,660.00 629,469,949.60 -- -- 20,665,801.20 14,731,029.23 --
655.95 293.65
Notes :
Sanbo to section expansion project has been included in the progress of the new Jiangluo line section of the total amount of river has been transferred to the fixed
amount
(3)Provision for impairment of construction projects in the current period
Nil
112
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
14. Engineering material
In RMB
Items Balance in year-end Balance in year-begin
Signpost 1,549,556.00 1,549,556.00
Total 1,549,556.00 1,549,556.00
15. Liquidation of fixed assets
In RMB
Items Balance in year-end Balance in year-begin
Highway mechanical and electrical
99,127.90
equipment, etc.
Total 99,127.90
16. Intangible assets
(1) List of intangible assets
In RMB
Patent Non-patent
Items Land use right Software Logo Total
right right
I. Original price
1.Opening balance 1,311,658.00 27,358,986.21 28,670,644.21
2.Increased amount of the
-61,025.64 -61,025.64
period
(1) Purchase -61,025.64 -61,025.64
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
113
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Patent Non-patent
Items Land use right Software Logo Total
right right
4.Closing balance 1,311,658.00 27,297,960.57 28,609,618.57
II.Accumulated amortization
1.Opening balance 1,311,658.00 20,262,551.04 21,574,209.04
2.Increased amount of the
1,357,657.34 1,357,657.34
period
(1) Withdrawal 1,357,657.34 1,357,657.34
(2)Increased of
Enterprise Combination
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 1,311,658.00 21,620,208.38 22,931,866.38
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 5,677,752.19 5,677,752.19
2.Opening book value 7,096,435.17 7,096,435.17
At the end of the period, the proportion of intangible assets formed through internal R & D to the balance of
intangible assets is 0.00%.
⑵Details of Land use right failed to accomplish certification of property
114
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Nil
17. Long-term amortize expenses
In RMB
Amortized expenses
Balance in Increase in this
Items year-begin period Other loss Balance in year-end
Advertising column
92,768.83 55,661.40 37,107.43
property insurance
Total 92,768.83 55,661.40 37,107.43
18. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Deductible loss 582,930,102.77 145,732,525.69 773,658,624.73 193,414,656.18
Amortization of
805,761.96 201,440.49 995,735.86 248,933.97
intangible assets
Asset valuation
541,050,952.86 135,262,738.21 566,541,740.54 141,635,435.13
appreciation
Total 1,124,786,817.59 281,196,704.39 1,341,196,101.13 335,299,025.28
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of
available for sale 343,472,218.24 85,868,054.56 435,221,646.40 108,805,411.60
financial assets
Deductible temporary
differences in the
527,408,001.10 131,852,000.28 607,306,748.61 151,826,687.15
formation of asset
impairment
Total 870,880,219.34 217,720,054.84 1,042,528,395.01 260,632,098.75
115
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
（3）Details of unrecognized deferred tax assets
In RMB
Items Closing balance Opening balance
Deductible temporary differences 92,231,097.40 92,288,987.75
Deductible losses 14,837,471.26 11,374,068.41
Total 107,068,568.66 103,663,056.16
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2018 4,932,481.22 4,932,481.22
2019 3,456,570.30 3,456,570.30
2020
2021
2022 2,121,083.91 2,985,016.89
2023 4,327,335.83
Total 14,837,471.26 11,374,068.41 --
19. Other Non-current assets
In RMB
Items Balance in year-end Balance in year-begin
Prepaid fixed assets engineering fees 59,594,649.15 39,871,644.68
Advance software payment 268,155.00 268,155.00
Prepaid business tax 544,645.74 566,594.58
Prepaid land occupation tax 19,086,895.54
Total 79,494,345.43 40,706,394.26
20. Account payable
（1）List of Account payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year（Including 1 year） 53,329,532.25 104,264,020.37
1-2 year （Including 2 years） 104,510,224.56 135,095,312.76
2-3 year（Including 3 years） 16,838,384.14 16,838,384.14
116
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Over 3 years 10,635,329.23 10,736,309.72
Total 185,313,470.18 266,934,026.99
(2) Notes of the accounts payable aging over one year
In RMB
Items Balance in year-end Unpaid reason
Guangdong Highway Construction Co.,
45,980,021.00 Unsettled
Ltd.
Heshan Land and resources Bureau 38,186,893.60 Unsettled
Foshan Land and resources Bureau 30,507,598.21 Unsettled
Guangdong Expressway Co., Ltd. 8,746,491.18 Unsettled
Luochun Street Office(Finance Office) 1,043,431.50 Unsettled
Total 124,464,435.49 --
21. Advance from customers
(1) List of advance from customers
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year（Including 1 year） 1,724,163.36 2,413,914.18
1-2 years（Including 2 years） 437,978.18 459,858.97
2-3 years（Including 3 years）
Over 3 years 11,442,918.43 11,982,340.75
Total 13,605,059.97 14,856,113.90
(2) Significant advance from customers aging over one year
In RMB
Items Closing balance Unpaid/Uncarry over reason
Guangzhou Huanlong Expressway Co.,
10,074,746.54 Land rent is not in the settlement period
Ltd.
Guanghdong Xinle Technology
1,232,816.45 The Rental is not in the settlement period
Development Co., Ltd.
Total 11,307,562.99 --
⑶The completion of the final construction contract has been completed and the project is not completed
117
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Nil
22. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning balance Increase in the current Decrease in the current
Year-end balance
period period
I. Short-term
11,334,182.16 127,056,420.60 123,595,606.21 14,794,996.55
compensation
II.Post-employment bene
fits - defined contribution 14,218,112.35 13,483,300.03 734,812.32
plans
III. Dismiss welfare 142,050.00 142,050.00
Total 11,334,182.16 141,416,582.95 137,220,956.24 15,529,808.87
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the current Decrease in the current
Year-end balance
balance period period
1.Wages, bonuses, allowances and
1,630,363.29 91,375,434.27 88,491,894.81 4,513,902.75
subsidies
2.Employee welfare 9,386,236.81 9,256,635.81 129,601.00
3. Social insurance premiums 7,252,203.86 7,246,122.84 6,081.02
Including ：Medical insurance 5,897,263.37 5,891,862.77 5,400.60
Work injury insurance 258,307.04 258,192.24 114.80
Maternity insurance 676,615.89 676,050.27 565.62
Supplementary medical insurance 420,017.56 420,017.56
4.Public reserves for housing 14,168,087.52 14,154,984.52 13,103.00
5.Union funds and staff education
9,563,059.92 3,861,926.04 3,293,917.18 10,131,068.78
fee
8.Other 140,758.95 1,012,532.10 1,152,051.05 1,240.00
Total 11,334,182.16 127,056,420.60 123,595,606.21 14,794,996.55
（3）List of drawing scheme
In RMB
118
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age
10,680,495.65 10,672,329.73 8,165.92
insurance premiums
2.Unemployment
405,702.81 405,383.41 319.40
insurance
3.Enterprise annuity
3,131,913.89 2,405,586.89 726,327.00
payment
Total 14,218,112.35 13,483,300.03 734,812.32
23. Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 9,747,931.67 14,248,594.77
110,623,870.14 404,574,001.58
Enterprise Income tax
Individual Income tax 236,145.51 6,572,617.38
City Construction tax 598,694.45 1,022,178.29
Land use tax 567,264.70 1,050,431.75
Property tax 504,258.88 253,014.94
Education subjoin 285,127.99 466,899.60
Locality Education subjoin 176,052.44 297,234.60
Stamp tax 37,299.64 63,071.56
Other 56,085.36 99,349.82
Total 122,832,730.78 428,647,394.29
24.Interest payable
In RMB
Items Balance in year-end Balance in year-begin
Pay the interest for long-term loans by
7,983,129.04 8,494,355.93
installments.
Interest payable on entrusted loans 1,349,043.75
Total 9,332,172.79 8,494,355.93
- Particulars of significant overdue unpaid interest
Nil
25. Dividends payable
In RMB
119
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Year-end balance Year-Beginning balance
Common stock dividends 18,193,409.32 14,340,792.20
Xinyue Highway Construction Co., Ltd. 25,000,000.00 12,500,000.00
Total 43,193,409.32 26,840,792.20
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 14,338,121.94yuan for more than a year in unpaid dividends to shareholders over the year
was mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, di
d 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.
26.Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Quality guarantee fund 60,947,872.26 36,254,269.95
Deposit 1,427,067.00 1,676,667.00
Borrowing 150,000,000.00
Other 43,223,935.39 48,732,300.99
Total 255,598,874.65 86,663,237.94
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Project Quality guarantees/ Bid
Guangdong Guanyue luqiao Co., Ltd. 2,075,848.02
Gruarantees/Deposit
Guangdong Nengda Grade Highway
2,123,700.47 Project Quality guarantee
Maintenance Co., Ltd.
Guangdong Changda Engineering Co., Ltd 1,826,971.58 Project Quality guarantees
Dongguan Yueyu Optoelectronic
1,534,850.00 Project Quality guarantees
Technology Co., Ltd.
Guangdong Xinyue Traffic Investment Project Quality guarantees/ Bid
1,105,843.31
Co., Ltd. Gruarantees/Deposit
Total 8,667,213.38 --
Other notes
120
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
27. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 1,583,780,000.00 1,218,610,000.00
Total 1,583,780,000.00 1,218,610,000.00
Other notes：Long-term borrowing rate is 4.275%-5.60%。
28.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Tax on items to be rescinded 689,978.75
Total 689,978.75
29. Long-term loan
(1) Category of long-term loan
Items Balance year-end Year-beginning balance
Pledge loan 199,000,000.00 199,000,000.00
Guaranteed loans 750,000,000.00 1,125,000,000.00
Credit loans 3,442,170,000.00 3,420,170,000.00
Total 4,391,170,000.00 4,744,170,000.00
Notes :
The Pledge loan rate is 4.275%-4.35%; the guaranteed loan interest rate is 5.6%; the credit interest rate is
4.20%-4.90%.
30. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2,022,210.11 2,022,210.11
31. Stock capital
In RMB
Balance Balance Year-beginning Balance year-end
121
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Year-beginning Issuing of Bonus Transferred
Other Subtotal
new share shares from reserves
Total of
capital 2,090,806,126.00 2,090,806,126.00
shares
32. 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 1,667,959.25 3,946,375.55 5,614,334.80
Total 2,510,069,749.76 3,946,375.55 2,514,016,125.31
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 3,951,780.00 yuan due to the change of the owner's equity of the
joint-stock company ---- Guangdong Guanghui Expressway Co., Ltd. and was decreased 5,404.45 yuan due to the
change of owner's equity of the joint-stock company ---- Guoyuan securities Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
33. Other comprehensive income
In RMB
Amount of current period
Less ：
Previously recognized After - tax att
Amount for the p After - tax attrib Year-end
Items Year-beginning balance ributable to m
in profit or loss in oth balance
eriod before inco Less：Income tax utable to the pare
er comprehensive inco inority shareh
me tax nt company
me olders
2.Other comprehensive income reclassifiable to
327,263,824.17 -96,732,906.59 -22,937,357.04 -73,795,549.55 253,468,274.62
profit or loss in subsequent
Incluidng: Share of other combined gains and
losses that will be reclassified into profits and
847,589.37 -4,983,478.43 -4,983,478.43 -4,135,889.06
losses after the invested unit under the equity
method
Gains and losses from changes in fair value of avai
326,416,234.80 -91,749,428.16 -22,937,357.04 -68,812,071.12 257,604,163.68
lable for sale financial assets
Total of other comprehensive income 327,263,824.17 -96,732,906.59 0.00 -22,937,357.04 -73,795,549.55 253,468,274.62
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
The initial balance and the ending balance refer to other comprehensive incomes in the balance sheet. The initial balance + other comprehensive incomes belong to
the parent company after taxes = the ending balance. The occurrence amount in the period refers to other comprehensive incomes in the profit statement, and the
occurrence amount before income tax in the period – Other comprehensive income recorded in the earlier stage and transferred into the profits and losses in the
current period – income taxes = other comprehensive incomes belong to the parent company after taxes + other comprehensive incomes belong to the minority
shareholders after taxes.
123
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
34. Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus
544,821,130.03 544,821,130.03
reserve
Total 544,821,130.03 544,821,130.03
35. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last period
3,550,110,288.49 2,920,563,328.27
end
After adjustments: Retained profits at the period
3,550,110,288.49 2,920,563,328.27
beginning
Add：Net profit belonging to the owner of the
779,002,246.98 1,509,922,398.70
parent company
Less: Statutory surplus reserve 177,864,580.14
Common stock dividend payable 1,057,947,899.76 702,510,858.34
Retained profit at the end of this term 3,271,164,635.71 3,550,110,288.49
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
124
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
36.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 1,518,875,852.56 522,317,994.54 1,418,719,988.26 523,456,284.40
Other operation 16,988,292.58 11,418,571.81 21,502,575.48 10,233,560.76
Total 1,535,864,145.14 533,736,566.35 1,440,222,563.74 533,689,845.16
37. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 2,938,753.34 2,760,207.40
Education surcharge 1,380,805.75 1,290,500.11
Property tax 661,486.13 677,877.95
Land use tax 603,977.11 767,994.64
Stamp tax 242,575.38 358,071.25
Business tax 25,872.66 26,341.89
Locality Education surcharge 920,536.09 860,324.55
Defend expense 384.04
Other 79,108.53 154,073.23
Total 6,853,114.99 6,895,775.06
Other notes：
38. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 49,712,683.56 49,157,515.03
Depreciation and Amortization 5,428,661.13 7,247,599.37
R & D expenses 2,485,173.03 3,249,337.10
Low consumables amortization 279,304.70 245,247.83
Travel expenses 384,417.28 128,401.26
Office expenses 2,828,218.57 2,541,048.21
Leased expenses 5,606,396.14 5,778,380.50
125
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Items Amount of this period Amount of last period
The fee for hiring agency 2,202,760.36 2,396,071.67
Consultation expenses 853,466.98 1,524,000.00
Directorate expenses 9,376.00
Listing fee 11,320.76 11,320.76
Information cost and maintenance fee 48,300.00 505,424.13
Other 5,753,931.46 4,900,192.98
Total 75,594,633.97 77,693,914.84
Other notes：
39.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 125,752,286.60 147,292,451.79
Deposit interest income（-） -18,076,236.30 -15,653,886.22
Exchange Income and loss（Gain-） 2,348,188.17 -1,522,372.61
Bank commission charge 2,755,977.00 3,688,166.06
Total 112,780,215.47 133,804,359.02
Other notes：
40 Asset impairment loss
In RMB
Items Amount of this period Amount of last period
I. Bad debt loss -57,890.35 196,581.08
Total -57,890.35 196,581.08
Other notes：
41. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
216,777,157.34 199,376,107.62
method
Hold the investment income during from
42,581,144.86 24,054,256.82
available-for-sale financial assets
126
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Total 259,358,302.20 223,430,364.44
Other notes：
42.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Income form disposal of fixed assets 44,860,186.67
43. Non-Operation income
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Government Subsidy 197,210.65
Total gains from disposal of
110,018.02 110,018.02
non-current assets
Including：Gains from disposal
110,018.02 110,018.02
of fixed assets
Road property claim income 736,148.53 822,425.45 736,148.53
Other income(Notes) 1,841,394.03 61,279,442.48 1,841,394.03
Total 2,687,560.58 62,299,078.58
- Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whhether Amount of Amount of Assets-relate
Issuing subsidies on
Subsidy items Issuing body Nature special current previous d/income –
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：
Note: the other gains in this period include the early termination of toll payment compensation of
59,995,667.68 yuan received from State Road 325 Jiujiang Bridge, which is included in the cash flow statement
Other Cash Received Relating To Investing Activities.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
44. Non-Operation expense
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Loss of destruction of assets 505,483.87 2,629,016.43 505,483.87
Fine 357,855.32 32,684.30 357,855.32
Other 1,144,628.24 437,773.53 1,144,628.24
Total 2,007,967.43 3,099,474.26 2,007,967.43
45. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 179,094,084.83 203,294,551.97
Deferred income tax expense 34,127,634.02 -223,234,633.95
Total 213,221,718.85 -19,940,081.98
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total profits 1,111,855,586.73
Current income tax expense accounted by tax and relevant
277,963,896.69
regulations
Effect of different tax rates on subsidiary companies
Influence of income tax before adjustment -2,858,712.81
Influence of non taxable income -64,839,575.55
Impact of non-deductible costs, expenses and losses 1,888,749.15
Affect the use of deferred tax assets early unconfirmed
deductible losses
The current period does not affect the deferred tax assets
1,067,361.37
recognized deductible temporary differences or deductible loss
Income tax expense 213,221,718.85
128
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
46. Items of Cash flow statement
(1) Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Newwork received toll income 38,176,722.70
Interest income 18,076,236.30 15,653,886.22
Unit current account 21,370,093.68 6,988,367.43
Total 39,446,329.98 60,818,976.35
Notes：
Nil
（2）Other cash paid related to oprating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 18,068,478.74 22,338,978.13
Unit current account 11,909,230.86
Network received toll incom 3,803,254.03 2,160,313.24
Total 21,871,732.77 36,408,522.23
Notes：
Nil
（3）Other Cash received related to investment activities
In RMB
Items Amount of current period Amount of previous period
Jiujiang bridge to receive compensation 59,995,667.68
Total 59,995,667.68
Notes：
Nil
（4）Other Cash payable related to investment activities
Nil
（5）Other Cash received related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Interest discount 2,500,000.00
129
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Total 2,500,000.00
Notes：
⑹Other Cash payable related to financing activities
Nil
47. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 898,633,867.88 990,512,139.32
Add: Impairment loss provision of assets -57,890.35 196,581.08
Depreciation of fixed assets, oil and gas
398,876,127.65 409,188,339.82
assets and consumable biological assets
Amortization of intangible assets 1,318,922.34 1,772,083.08
Amortization of Long-term deferred
55,661.40 906,502.02
expenses
Loss on disposal of fixed assets, intangible
-44,860,186.67
assets and other long-term deferred assets
Fixed assets scrap loss 395,465.85 2,629,016.43
Financial cost 128,100,474.77 145,770,079.18
Loss on investment -259,358,302.20 -223,430,364.44
Decrease of deferred income tax assets 54,102,320.89 -211,984,848.18
Increased of deferred income tax liabilities -42,912,043.91 -11,249,785.77
Decrease of inventories -139,076.49
Decease of operating receivables -4,522,183.33 -40,231,085.00
Increased of operating Payable -312,353,569.73 -41,686,422.17
Net cash flows arising from operating
817,279,588.10 1,022,392,235.37
activities
130
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Supplement Information Amount of current period Amount of previous period
II. Significant investment and financing
-- --
activities that without cash flows:
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 1,821,466,139.37 2,596,273,900.39
Less: Beginning balance of cash equivalents 2,363,042,700.42 2,603,279,644.25
Net increase of cash and cash equivalents -541,576,561.05 -7,005,743.86
(2) Net Cash paid of obtaining the subsidiary
Nil
(3) Net Cash receive of disposal of the subsidiary
Nil
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
1,821,466,139.37 2,363,042,700.42
I. Cash
82,371.11 66,065.04
Of which: Cash in stock
Bank savings could be used at any time 1,820,722,446.96 2,362,279,050.70
Other monetary capital could be used at any
661,321.30 697,584.68
time
III. Balance of cash and cash equivalents at
1,821,466,139.37 2,363,042,700.42
the period end
Other notes：
Nil
48. 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
49. The assets with the ownership or use right restricted
Other notes：
Up to June 30, 2018, 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 449,000,000.00 yuan of loan from Guangzhou Wuyang Branch of ICBC to provide
131
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
pledge guarantee(of which the non-current debt balance with 1-year expiration was 250,000,000.00 yuan and the
long-term loan balance was 199,000,000.00 yuan).
50. 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
（1）Enterprise consolidation not under the same control in reporting period
Nil。
(2) Consolidation Cost and Goodwill
Nil。
(3) The identifiable assets and liabilities of acquiree at purchase date
Nil
（4）Gains or losses of the equity held before prurchasing date, arising from re-measured byfair value
Realized enterprise combine step by step through multi-trading and dealing obtained controlling rights in period
□ Yes √No
（5）On purchasing date or current combine period, fails to determine the combination consideration or acquiree’s
fair value ofidentifiable assets and liabilities rationally
Nil
（6）Other notes
2.Enterprise consolidation under the same control
（1）Merger of enterprises under the same control that occurred in the current period
Nil
132
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
（2）Combined cost
Nil
（3）Book value of assets and liabilities of party to be consolidated on the date of consolidation
Nil
3. Counter purchase
Basic information of transactions , basis of transactions constituting counter purchase, whether assets and
liabilities reserved by listedcompanies constituting business and their basis, confirmation of combined cost, the
amount occurred when adjusting rights and interests in accordance with equity transaction and its calculation
Nil
4. The disposal of subsidiary
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
Dispose subsidiary step by step throuth multi-dealings and losing controlling rights in the period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information
Nil
6.Other
Nil
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Shareholding Ratio
Registratio Nature of
Name of Subsidiary Places of (%) Obtaining Method
n Place Business
Operation direct indirect
Under the same
Guangzho Expressway control business
Guangdong Fokai Expressway Co., Ltd. Foshan 100.00%
Management
u
combination
133
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Under the same
Guangzho Expressway control business
Guangfo Expressway Co., Ltd. Guangzhou 75.00%
Management
u
combination
Investment in
technical
Guangdong Expressway Technology Guangzho
Guangzhou industries and 100.00% Investment
Investment Co., Ltd.
u
provision of
relevant
Under the same
Guangzhuo Guangzhu Traffic
Guangzho Investment control business
Guangzhou 100.00%
Investment Management Co., Ltd.
u management
combination
Under the same
Jingzhu Expressway Guangzhu Section Guangzho Expressway
Zhongshan 20.00% 55.00% control business
Co.,Ltd.（Notes） u Management
combination
Yuegao Capital Investment
Guangzhou Zhuhai 100.00% Investment
Investment(Hengqin)Co., Ltd. management
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
Basis of determine whether the Company is the agent or the principal: Nil
Other notes：
Jingzhu Expressway Guangzhu Section Co., Ltd. is a non-wholly owned subsidiary of Guangzhou Guangzhu
Traffic Investment Management Co., Ltd.
(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% 35,608,835.93 53,528,891.62 109,373,543.63
Co., Ltd.
Jingzhu Expressway
Guangzhu Section 25.00% 84,022,784.97 144,223,171.04 243,545,577.61
Co.,Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:Nil
Nil
134
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
(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 Current Non current
Current assets Total assets Total liabilities Current assets Non current assets Total assets Total liabilities
assets Liabilities liabilities Liabilities liabilities
Guangfo
Expresswa 472,299,438.17 20,952,248.13 493,251,686.30 55,757,511.78 55,757,511.78 544,211,527.04 21,454,392.65 565,665,919.69 56,491,522.41 56,491,522.41
y Co., Ltd.
Jingzhu
Expresswa
y
278,137,611.59 2,401,595,681.34 2,679,733,292.93 606,795,297.17 1,098,755,685.26 1,705,550,982.43 168,092,185.25 2,692,035,039.19 2,860,127,224.44 526,412,997.55 1,118,730,372.13 1,645,143,369.68
Guangzhu
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 Co., Ltd. 226,325,833.32 142,435,343.71 142,435,343.71 145,431,353.01 201,131,785.00 98,378,474.42 98,378,474.42 129,165,512.93
Jingzhu Expressway Guangzhu
645,871,184.09 336,091,139.89 336,091,139.89 433,240,710.71 631,857,976.08 292,278,032.76 292,278,032.76 443,338,931.03
Section Co.,Ltd.
135
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
(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
（1）Description of changes in share of owners' equity in subsidiaries
Nil
（2）The influence of transaction on minority shareholders' equity and ownership of parent company
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 Expressway Co., Guangzhou, Guangzhou, Expressway
30.00% Equity method
Ltd. Guangdong Guangdong Management
Zhaoqing, Zhaoqing, Expressway
Zhaoqing Yuezhao Highway Co., Ltd. 25.00% Equity method
Management
Guangdong Guangdong
Shenzhen Shenzhen Expressway
Shenzhen Huiyan Expressway Co., Ltd. 33.33% Equity method
Guangdong Guangdong Management
Guangdong Jiangzhong Expressway Co., Zhongshan , Guangzhou,Guang Expressway
15.00% Equity method
Ltd. Guangdong dong Management
Gangzhou, Expressway
Ganzhou kangda Expressway Co., Ltd. Gangzhou, Jiangxi 30.00% Equity method
Jiangxi Management
Gangzhou, Expressway
Ganzhou Gankang Expressway Co., Ltd. Gangzhou, Jiangxi 30.00% Equity method
Jiangxi Management
Guangdong Yueke Technology Petty Loan Guangzhou, Guangzhou, Hande all kinds of
20.00% Equity method
Co., Ltd. Guangdong Guangdong small loans
Guangyuan Securities Co., Ltd. Hefei, Anhui Hefei, Anhui Security business 2.37% Equity method
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Nil
136
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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 Guangyuan Securities Co.,
Ltd... holds 20% of the voting rights, but has the power to participate in making decisions on their financial and op
erating decisions, and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
In RMB
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdong Guanghui Zhaoqing Yuezhao Guangdong Guanghui Zhaoqing Yuezhao
Expressway Co., Ltd. Highway Co., Ltd. Expressway Co., Ltd. Highway Co., Ltd.
Current assets 1,010,036,752.52 94,167,495.08 398,201,907.66 217,772,715.63
Including：Cash and cash
439,281,500.91 75,926,440.69 119,447,466.86 199,426,500.59
equivalent
Non-current assets 3,859,333,751.56 1,622,591,424.78 4,288,934,082.82 1,780,232,314.01
Total assets 4,869,370,504.08 1,716,758,919.86 4,687,135,990.48 1,998,005,029.64
Current liabilities 412,511,339.43 123,542,015.68 330,054,720.57 178,262,191.50
Non-current liabilities 956,222,984.63 483,404,091.87 1,144,392,235.39 626,350,940.66
Total liabilities 1,368,734,324.06 606,946,107.55 1,474,446,955.96 804,613,132.16
Attributable to
shareholders of the 3,500,636,180.02 1,109,812,812.31 3,212,689,034.52 1,193,391,897.48
parent company
Share of net assets
1,050,190,854.01 277,453,203.08 963,806,710.36 298,347,974.37
calculated by stake
Book value of equity
investment in joint 1,050,190,854.01 277,453,203.08 963,806,710.36 298,347,974.37
ventures
Operating income 878,931,209.54 264,667,911.36 856,966,099.09 247,342,570.61
Financial expenses 18,892,654.01 11,944,947.35 24,124,233.53 14,270,879.40
Income tax expenses 152,535,401.50 39,485,100.11 142,913,805.63 34,089,839.29
Net profit 447,126,957.50 114,543,781.53 427,632,054.17 100,385,189.33
Total comprehensive
447,126,957.50 114,543,781.53 427,632,054.17 100,385,189.33
income
Dividends received
fromjoint ventures this 37,805,847.20 43,088,859.48 81,106,373.29 55,172,678.59
year
137
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdong Guangdong
Shenzhen Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Ganzhou Yueke
Huiyan Jiangzhong Gankang Guoyuan Securities Huiyan Jiangzhong Gankang Guoyuan Securities
Kangda Technology Kangda Technology
Expressway Expressway Expressway Co., Ltd. Expressway Expressway Expressway Co., Ltd.
Expressway Petty Loan Expressway Petty Loan Co.,
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Ltd
Current
405,207,810.22 248,231,394.20 42,966,757.14 233,084,279.62 1,652,472,098.57 49,397,674,847.66 430,404,563.50 147,279,650.98 21,995,366.33 208,757,705.55 1,573,602,864.36 45,296,573,799.43
assets
Non-curren
269,450,654.70 1,580,794,827.17 1,486,108,682.60 1,402,532,326.66 40,071,899.26 34,336,691,453.00 190,289,654.66 1,697,555,010.40 1,509,053,324.26 1,434,291,913.76 40,112,141.62 34,917,940,371.90
t assets
Total
674,658,464.92 1,829,026,221.37 1,529,075,439.74 1,635,616,606.28 1,692,543,997.83 83,734,366,300.66 620,694,218.16 1,844,834,661.38 1,531,048,690.59 1,643,049,619.31 1,613,715,005.98 80,214,514,171.33
assets
Current
32,625,265.20 141,621,528.98 50,492,867.09 103,913,052.05 310,168,218.91 48,028,217,706.35 32,102,623.52 129,152,634.01 100,119,184.60 114,676,781.53 236,708,624.01 36,083,651,550.94
liabilities
Non-curren
510,000,000.00 736,557,033.78 840,187,164.64 2,005,000.00 10,818,777,059.82 559,000,000.00 735,033,096.47 847,023,826.63 2,006,250.00 18,738,432,070.64
t Liabilities
Total
32,625,265.20 651,621,528.98 787,049,900.87 944,100,216.69 312,173,218.91 58,846,994,766.17 32,102,623.52 688,152,634.01 835,152,281.07 961,700,608.16 238,714,874.01 54,822,083,621.58
liabilities
MinoritySh
areholders 265,639,882.10 11,146,865.79 297,258,467.45 12,064,185.84
’ Equity
Shareholde
642,033,199.72 1,177,404,692.39 742,025,538.87 691,516,389.59 1,114,730,896.82 24,876,224,668.70 588,591,594.64 1,156,682,027.37 695,896,409.52 681,349,011.15 1,077,741,664.52 25,380,366,363.91
rs’ equity
138
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdong Guangdong
Shenzhen Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Ganzhou Yueke
Huiyan Jiangzhong Gankang Guoyuan Securities Huiyan Jiangzhong Gankang Guoyuan Securities
Kangda Technology Kangda Technology
Expressway Expressway Expressway Co., Ltd. Expressway Expressway Expressway Co., Ltd.
Expressway Petty Loan Expressway Petty Loan Co.,
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Ltd
attributable
to
shareholde
rs of the
parent
Pro rata sh
are of the n
214,011,066.57 176,610,703.86 222,607,661.66 207,454,916.88 222,946,179.36 588,390,445.65 196,197,198.21 173,502,304.11 208,768,922.86 204,404,703.35 215,548,332.90 600,314,769.41
et assets ca
lculated
--Goodwill 206,725,818.02 206,725,818.02
The book v
alue of equ
ity investm 214,011,066.57 176,610,703.86 222,607,661.66 207,454,916.88 222,946,179.36 795,116,263.67 196,197,198.21 173,502,304.11 208,768,922.86 204,404,703.35 215,548,332.90 807,040,587.43
ents in join
t ventures
Fair value
of equity
investment
of 589,054,696.40 875,621,846.00
associated
enterprises
with open
139
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdong Guangdong
Shenzhen Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Ganzhou Yueke
Huiyan Jiangzhong Gankang Guoyuan Securities Huiyan Jiangzhong Gankang Guoyuan Securities
Kangda Technology Kangda Technology
Expressway Expressway Expressway Co., Ltd. Expressway Expressway Expressway Co., Ltd.
Expressway Petty Loan Expressway Petty Loan Co.,
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Ltd
quotation
Buinsess
121,958,669.64 238,655,329.27 113,055,381.54 78,967,126.91 91,160,960.52 1,109,717,564.95 111,790,599.41 230,951,536.63 124,080,732.78 71,517,295.42 82,267,976.87
incme
Net profit 53,441,605.08 45,984,003.63 46,129,129.35 10,167,378.44 36,989,232.30 211,597,500.90 48,844,131.82 45,616,389.11 49,684,621.82 3,931,224.57 44,169,388.24
Other
comprehensi -210,693,647.23
ve income
Total
comprehen
53,441,605.08 45,984,003.63 46,129,129.35 10,167,378.44 36,989,232.30 903,853.67 48,844,131.82 45,616,389.11 49,684,621.82 3,931,224.57 44,169,388.24
sive
income
Dividends
received fr
om associa 3,789,200.79 11,940,297.90
tes during t
he year
140
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
(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
(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.
141
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
861,033,095.04 861,033,095.04
Financial Assets
（2）Equity instrument
861,033,095.04 861,033,095.04
investment
Total of Consistent fair
861,033,095.04 861,033,095.04
value measurement
142
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
II.Non-continuous
-- -- -- --
measurement fair value
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of June 30, 2018 of 3.66 yuan, the final calculation of fair value was
861,033,095.04 yuan.
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2.
Nil
4. Sensitiveness analysis on unobservable parameters and adjustment information between opening 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
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent company
The parent company
Name Registered address Nature Redistricted capital of the Company's
of the Company’s
shareholding ratio
143
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
vote ratio
Equity management,
No.83,85, Baiyun
Guangdong traffic infrastructure
Road, Yuexiu
communication construction and 2,680,000.00 24.55% 50.12%
District,
Group Co., Ltd 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, 2018,Registered capital: 26.8 billion yuan. It is a
solely state-owned limited company. Business scope：equity management, organization of asset reorganization and
optimized allocation, raising funds by means including mortgage, transfer of property rights and joint 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：
Nil
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 Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Chaohui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangle Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Jiangzhao Expressway Management Center Managed by the parent company
Guang-Shen-Zhu Expressway Co., Ltd. Fully owned subsidiary of the parent company
144
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Name Relation with the Company
Guangdong Jiangzhong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong West Coastal Expressway Xinhui Section Co., Ltd Fully owned subsidiary of the parent company
Guangdong West Coastal Expressway Zhuhai Section Co., Ltd Fully owned subsidiary of the parent company
Controlled by the same parent company and equity participation
Guangdong Guangzhu West Line Expressway Co., Ltd.
unit
Guangdong Jingzhu Expressway Guangzhu North Section Co., Controlled by the same parent company and equity participation
Ltd. unit
Yunfu Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Taishan Coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guanghui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company
Controlled by the same parent company and equity participation
Guangdong Humen Bridge Co., Ltd.
unit
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Baomao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangfozhao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Nanyue Traffic Shaogan Expressway Management
Managed by the parent company
Center
Guangzhongjiang Expressway Project Management Managed by the parent company
Guangdong Yuedong Expressway Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Road & Bridge Construction Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu Traffic Technology Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Co., ltd. Fully owned subsidiary of the parent company
Guangdong Changda Highway Engineering Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Investformation Technology Investment
Fully owned subsidiary of the parent company
Co., Ltd.
145
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Name Relation with the Company
Guangdong Gaoda Property Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Pingxing Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hehui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Heyuan Helong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Two Guang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong West coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company
Zhongshan Yueyun Airoort Express Passenger Co., Ltd. Fully owned subsidiary of the parent company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co., Ltd.
Guangzhou Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Xinyue Highway Construction Co., Ltd. Minority shareholders of the holding Sun-Subsidiarie
Guangdong Meihe Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Real Estate Co., Ltd. Fully owned subsidiary of the parent company
Other notes
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Content of related Amount of current Amount of previous Over the trading limit
Related parties Amount of last period
transaction or not?
period period
Guangdong
Unionelectronic Service 8,075,494.51
services co., Ltd.
Guangdong Litong
Technology
Project fund 784,739.50 203,850.00
Investment Co.,
Ltd.
Guangdong Humen Project
539,307.09
Bridge Co., Ltd. fund,service
Guangdong Tongyi
Expressway Service service 259,399.97
Area Co., Ltd
146
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Guangdong
Project fund 25,393.54
Lulutong Co., Ltd.
Guangdong
Changda Highway
Project fund 4,238,698.53
Engineering Co.,
Ltd.
Guangdong Xinyue
traffic Investment Project fund 55,800.00
Co., Ltd.
Guangdong
Guanghui
Interest 1,349,043.75
Expressway Co.,
Ltd.
Ganzhou Gangkang
Expressway Co., Interest 765,623.34 1,051,109.99
Ltd.
Guangdong
Expressway Media service 606,132.08
Co., Ltd.
Guangdong East
Thinking
Management
service 60,000.00 178,066.11
Technology
Development Co.,
Ltd.
Guangdong
Changda Highway
Purchasing assets 34,838,755.49 1,924,312.81
Engineering Co.,
Ltd.
Guangdong Hualu
Traffic Technology Purchasing assets 1,548,686.53
Co., Ltd.
Guangdong Xinyue
Traffic Investment Purchasing assets 36,761.81
Co., Ltd.
Guangdong
Changda highway Project fund 634,217.37
Co., Ltd.
Related transactions on sale goods and receiving services
In RMB
147
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Related party Content
Amount of current period Amount of previous period
Jingzhu Expressway Guangzhu Commission
8,092,547.17 7,852,830.20
North section Co., Ltd. management fee
Guangdong Expressway Co.,
Project fund 2,192,131.13 2,094,489.63
Ltd.
Guangdong Luqiao
Construction Development Co., Project fund 267,452.83 162,735.84
Ltd.
Guangdong Guangzhu West
Project fund 234,905.66 449,056.61
Line Expressway Co., Ltd.
Guangdong Chaohui
Project fund 192,452.83 192,452.83
Expressway Co., Ltd.
Guangdong Guangfozhao
Project fund 154,245.28 141,509.43
Expressway Co., Ltd.
Guangdong Guanghui
Project fund 144,339.62 147,169.81
Expressway Co., Ltd.
Guangdong Guangle
Project fund 142,924.53 200,943.40
Expressway Co., Ltd.
Guangdong Kaiyang
Project fund 134,035.68 235,922.47
Expressway Co., Ltd.
Guangdong Boda Expressway
Project fund 117,452.83 106,132.08
Co., Ltd.
Guangdong Highway
Project fund 116,037.74
Construction Co., Ltd.
Zhaoqing Yuezhao Highway
Project fund 101,886.79 192,452.83
Co., Ltd.
Guangzhongjiang Expressway
Project fund 89,622.64
Project Management
Guangdong Jiangzhong
Project fund 82,075.47 83,490.57
Expressway Co., Ltd.
Guangdong West Coastal
Expressway Zhuhai Section Project fund 80,660.38 107,547.17
Co., Ltd.
Guangdong Taishan Coastal
Project fund 59,433.96
Expressway Co., Ltd.
Guangdong Litong Technology
Project fund 35,384.62 95,000.00
Investment Co., Ltd.
Yunfu Guangyun Expressway Project fund 35,377.36 28,301.89
148
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Co., Ltd.
Guangdong Humen Bridge
Project fund 26,886.79 19,811.32
Co.,Ltd.
Shenzhen Huiyan Expressway
Project fund 26,886.79 64,622.64
Co., Ltd.
Guangdong Yueyun Traffic
Project fund 21,226.42 51,415.10
Co.,Ltd.
Guangdong West Coastal
Expressway Xinhui Section Project fund 15,566.04 7,075.47
Co., Ltd.
Guang-Shen-Zhu Expressway
Project fund 594,339.64
Co., Ltd.
Guangdong Xinyue Traffic
Project fund 259,260.13
Investment Co., Ltd.
Notes
（2）Related trusteeship/contract
Nil
（3）Information of related lease
The Company was lessor：
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of lease assets
this year last year
Guangdong Expressway Media
Advertising lease 1,748.41 1,151,248.50
Co., Ltd.
Guangdong Tongyi Expressway
Service Area Lease 1,689,033.25
Service 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 4,406,113.37 4,900,613.34
Investment Co., Ltd
Guangdong Guanghui
Advertising column lease 884,200.00
Expressway Co., Ltd.
Zhaoqing Yuezhao Highway Advertising column lease 124,031.25
149
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Co., Ltd.
Guangzhou Yueyun Traffic Co.,
Car Rental 97,530.00
Ltd.
Guangdong Gaoda Property
Office space 7,230.00
Development Co., Ltd.
Guangdong Highway
Office space 109,182.36
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 1,725,000,000.00 September 25,2012 March 25,2020 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 Guangzhou Guangzhu Traffic Investment Management Co., Ltd.
75% stake in Guangdong Communication Group Co., Ltd. to provide a counter-guarantee.
(5) Inter-bank lending of capital of related parties
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Ganzhou Gankang
50,000,000.00 February 2,2018 June 3,2018
Expressway Co., Ltd.
Guangdong Guanghui
105,000,000.00 March 22,2018 September 21,2018
Expressway Co., Ltd.
Guangdong Guanghui
45,000,000.00 May 22,2018 May 21,2019
Expressway Co., Ltd.
Loaned
150
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
(6) Related party asset transfer and debt restructuring
Nil
(7) Rewards for the key management personnel
Ten thousand yuan
Items
Amount of current period Amount of previous period
Rewards for the key management
241.51 205.84
personnel
(8) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
Items
Amount of current period Amount of previous period
Balance of Deposit 381,881,836.28 366,841,521.49
Interest Income 3,752,689.53
Refer to deposit interest rate at the corresponding period of Bank of China
Pricing Principle
On December 25, 2017 and December 22, 2017, the Company signed the Cash Management Business
Cooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and Industrial and
Commercial Bank of China Guangdong Branch and signed the Cash Management Business Cooperation
Agreement with Guangdong Communications Group Finance Co., Ltd. and China Construction Bank Corporation.
Guangdong Branch respectively, to join in the cash pool of Guangdong Communications Group Finance Co., Ltd.
-On June 15, 2016,The company’s 29th meeting (Provisional) of the seventh board of directors was
convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of
Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting, agreed
that Guangdong Provincial Fokai Expressway Co., Ltd entrusts Guangdong Provincial Highway Construction Co.,
Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway, and handling the related matters of the entrustment of the
construction management.
6. Receivables and payables of related parties
（1）Receivables
In RMB
151
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong Union
Account receivable electron Servce Co., 43,102,039.46 45,447,260.32
Ltd.
Guangdong Humen
Account receivable 27,048,223.47 9,425,822.31
Bridge Co., Ltd.
Jingzhu Expressway
Account receivable Guangzhu North 4,447,474.99 4,821,700.01
Section Co., Ltd.
Guangdong
Account receivable Expressway Co., 2,588,022.00 1,274,749.50
Ltd.
Guangdong Xinyue
Account receivable Traffic Investment 2,154,432.04 123,048.52 3,848,556.04 65,052.00
Co., Ltd.
Guanghui
Account receivable Expressway Co., 341,639.00 4,025,633.55
Ltd.
Guangdong Road &
Account receivable Bridge Development 283,500.00
Co., Ltd.
Guangdong Kaiyang
Account receivable Expressway Co., 312,321.40 4,425.00 379,837.72
Ltd.
Guangdong West
coastal Expressway
Account receivable 269,694.00 55,258.20 352,194.00 55,258.00
Zhuhai Section Co.,
Ltd.
Guangdong
Guangzhu West Line
Account receivable 249,000.00 356,850.40
Expressway Co.,
Ltd.
Guangdong Chaohui
Account receivable Expressway Co., 204,000.00
Ltd.
Guangdong
Guangfozhao
Account receivable 163,500.00
Expressway Co.,
Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong Guangle
Account receivable Expressway Co., 151,500.00
Ltd.
Guangdong Boda
Account receivable Expressway Co., 124,500.00
Ltd.
Guangdong
Highway
Account receivable 123,000.00 207,000.00
Construction Co.,
Ltd.
Guangdong Road &
Bridge
Account receivable 111,000.00
Development Co.,
Ltd.
Zhaoqing Yuezhao
Account receivable 108,000.00
Highway Co., Ltd.
Guangdong
Zhongjiang
Account receivable 95,000.00
Expressway Project
Management
Guangdong
Jiangzhong
Account receivable 87,000.00
Expressway Co.,
Ltd.
Guangdong
LitongTechnology
Account receivable 68,542.00 6,854.20 201,342.00
Investment Co.,
Ltd.
Guangdong Taishan
Account receivable coastal Expressway 63,000.00
Co., Ltd.
Guangdong West
coastal Expressway
Account receivable 50,610.00 10,233.00 67,110.00 10,233.00
Xinhui Section Co.,
Ltd.
Yunfu Guangyun
Account receivable Expressway Co., 37,500.00
Ltd.
153
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
Account receivable coastal Expressway 30,000.00 3,000.00 30,000.00 2,830.00
Co., Ltd.
Shenzhen Huiyan
Account receivable Expressway Co., 28,500.00
Ltd.
Guangdong Yueyun
Account receivable 22,500.00
Traffic Co., Ltd.
Guangdong
Account receivable Expressway Media 1,799,600.00
Co., Ltd.
Guang-Shen-Zhu
Account receivable Exparessway Co., 189,000.00
Ltd.
Guangdong Nanyue
Traffic Shaogan
Account receivable Expressway 179,424.00
Management
Center
Guangdong
Maozhan
Account receivable 166,196.80
Expressway Co.,
Ltd.
Guangdong Baomao
Account receivable Exparessway Co., 145,038.40
Ltd.
Guangdong Yuedong
Expressway
Account receivable 139,976.80
Development Co.,
Ltd.
Zhaoqing Yuezhao
Advanced payment 20,671.75 144,703.00
Highway Co., Ltd.
Guangdong Litong
Advanced payment Property Investment 700,087.62
Co., Ltd.
Guangdong Litong
Other Account
Property Investment 1,505,864.00 1,505,864.00
receivable
Co., Ltd.
154
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong
Other Account Guanghui
1,429,667.72 1,463,995.66
receivable Expressway Co.,
Ltd.
Guangdong
Other Account
Expressway Co., 592,083.28 597,164.23
receivable
Ltd.
Other Account Zhaoqing Yuezhao
415,614.00 427,478.09
receivable Highway Co., Ltd.
Guangdong Xinyue
Other Account
Traffic Investment 415,442.60 415,442.60
receivable
Co., Ltd.
Guangdong
Other Account Guangzhu West Line
186,876.77 187,560.16
receivable Expressway Co.,
Ltd.
Guang-Shen-Zhu
Other Account
Expressway Co., 185,014.40 223,371.78
receivable
Ltd.
Guangdong
Other Account
Expressway Media 120,568.54 1,213,926.84
receivable
Co., Ltd.
Guangdong
Other Account Highway
107,494.67 115,058.75
receivable Construction Co.,
Ltd.
Guangdong Jingzhu
Other Account Expressway
63,502.68 63,612.63
receivable Guangzhu North
Section Co., Ltd.
Other Account Guangdong Humen
55,981.31 58,139.05
receivable Bridge Co., Ltd.
Guangdong Guangle
Other Account
Expressway Co., 55,870.49 104,353.10
receivable
Ltd.
Guangdong Boda
Other Account
Expressway Co., 51,808.80 52,689.46
receivable
Ltd.
155
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong Road &
Bridge
Other Account
Construction 44,713.74 93,172.08
receivable
Development Co.,
Ltd.
Guangdong West
Other Account Coastal Expressway
40,967.05 40,967.05
receivable Zhuhai section Co.,
Ltd
Guangdong
Other Account Jiangzhong
28,120.00 28,942.41
receivable Expressway Co.,
Ltd.
Guangdong Gaoda
Other Account Property
21,688.70 9,940.70
receivable Development Co.,
Ltd.
Guangdong
Other Account Yangmao
9,088.02 46,778.36
receivable Expressway Co.,
Ltd.
Guangdong
Other Account Maozhan
8,747.20 17,591.49
receivable Expressway Co.,
Ltd.
Guangdong Shanfen
Other Account
Expressway Co., 8,028.80 8,028.80
receivable
Ltd.
Guangdong Baomao
Other Account
Expressway Co., 7,633.60 7,633.60
receivable
Ltd.
Guangdong Yuedong
Other Account Expressway
7,367.20 7,367.20
receivable Development Co.,
Ltd.
angdong West
Other Account
coastal Expressway 5,753.20 5,753.20
receivable
Xinhui Section Co.,
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
Other Account LitongTechnology
5,273.00 5,273.00
receivable Investment Co.,
Ltd.
Guangdong
Other Account Zhaoyang
4,304.00 4,309.15
receivable Expressway Co.,
Ltd.
Yunfu Guangyun
Other Account
Expressway Co., 3,565.19 11,628.49
receivable
Ltd.
Other Account Guangdong Yueyunt
3,032.00 3,032.00
receivable Traffic Co., Ltd.
Guangdong Chaohui
Other Account
Expressway Co., 2,523.91 5,617.45
receivable
Ltd.
Guangdong Tongyi
Other Account
Expressway Service 2,182.70
receivable
Area Co., ltd.
Guangdong Meihe
Other Account
Expressway Co., 1,202.78 3,367.47
receivable
Ltd.
Guangdong Pingxing
Other Account
Expressway Co., 58.06 243.34
receivable
Ltd.
Guangdong Kaiyang
Other Account
Expressway Co., 88,827.08
receivable
Ltd.
Guangdong
Other Account Jiangzhao
9,098.40
receivable Expressway
Management Center
Guangdong Nanyue
Other Account Traffic Zhaogan
1,860.07
receivable Expressway
Management Center
Other Account Guangdong 1,685.28
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
receivable Guangfozhao
Expressway Co.,
Ltd.
Heyuan Helong
Other Account
Expressway Co., 1,428.35
receivable
Ltd.
Guangdong Two
Other Account
Guang Expressway 556.32
receivable
Co., Ltd.
Guangdong Changda
Other Non-Current Highway
23,937,725.40 15,937,725.40
Assets Engineering Co.,
Ltd.
Guangdong Hualu
Other Non-Current
Communication 865,990.00
Assets
Technology Co., Ltd.
Guangdong East
Thinking
Other Non-Current Management
268,155.00 268,155.00
Assets Technology
Development Co.,
Ltd.
Note: if the related transaction is agreed to settle based on net amount, the amount after offsetting the amount due
from related parties is filled in.
（2）Payables
In RMB
Amount at year end Amount at year beginning
Name Related party
Guangdong Highway
Account payable 45,980,021.00 75,980,021.00
Construction Co., Ltd.
Guangdong Expressway Co.,
Account payable 8,746,491.18 8,746,491.18
Ltd.
Guangdong Litong Technology
Account payable 2,500,589.50 2,152,850.00
Investment Co., Ltd.
Guangdong Guanghui
Account payable 1,832,500.00 948,300.00
Expressway Co.,Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Guangdong Union Electron
Account payable 1,001,500.07 1.59
Service Co.,Ltd.
Guangdong Xinyue Traffic
Account payable 726,768.36 776,543.24
Investment Co., Ltd.
Guangdong Expressway Media
Account payable 642,500.00
Co., Ltd.
Guangdong Changda Highway
Account payable 500,931.38 14,449,499.60
Engineering Co.,Ltd.
Guangdong Hualu
Account payable Communication Technology 383,282.00 383,282.00
Co., Ltd.
Guangdong Maozhan
Account payable 120,000.00
Expressway Co.,Ltd.
Guangdong Guanghui
Interest payable 1,349,043.75
Expressway Co., Ltd.
Guangdong Jingzhu
Received in advance Expressway Guangzhu North 0.06 0.06
Section Co., Ltd.
Guangdong Guanghui
Other Payable account 150,000,000.00 20,221.75
Expressway Co.,Ltd.
Guangdong Changda Highway
Other Payable account 6,647,277.11 3,953,559.55
Engineering Co.,Ltd.
Guangdong Union Electron
Other Payable account 4,706,867.08 2,238,981.27
Service Co.,Ltd.
Guangdong Xinyue Traffic
Other Payable account 1,545,446.02 1,636,943.30
Investment Co., Ltd.
Guangdong Litong Technology
Other Payable account 1,470,184.76
Investment Co., Ltd.
Guangdong Expressway Co.,
Other Payable account 334,706.01 350,680.10
Ltd.
Guangdong Kaiyang
Other Payable account 272,445.68 272,445.68
Expressway Co., Ltd.
Guangdong East Thinking
Other Payable account Management Technology 230,713.19 230,713.19
Development Co., Ltd.
Guangdong Jiangzhong
Other Payable account 215,384.63 215,384.63
Expressway Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Guangdong Zhongjiang
Other Payable account Expressway Projict 200,000.00 200,000.00
Management
Guangdong Maozhan
Other Payable account 188,931.56 188,931.56
Expressway Co., Ltd.
Guangdong Hualu
Other Payable account Communication Technology 187,253.14 181,253.14
Co., Ltd.
Guangdong Jingzhu
Other Payable account Expressway Guangzhu North 166,578.00 13,553.00
Section Co., Ltd.
Other Payable account Guangdong Lulutong Co., Ltd. 133,249.80 133,249.80
Guangdong Tongyi Expressway
Other Payable account 120,000.00 120,000.00
Service Area Co., Ltd.
Guangdong Expressway Media
Other Payable account 70,000.00 70,000.00
Co., Ltd.
Guangdong Jiangzhao
Other Payable account Expressway Management 55,796.85 62,047.64
Center
Guangdong Zhaoyang
Other Payable account 49,171.27 49,171.27
Expressway Co.,Ltd.
Guangdong West Coastal
Other Payable account Expressway Zhuhai Section 48,146.64 48,146.64
Co., Ltd.
Guangdong Baomao
Other Payable account 45,719.63 48,950.59
Expressway Co., Ltd.
Zhongshan Yueyun Airport
Other Payable account EXPRESS Pessenger Transport 34,568.85 34,568.85
Co., Ltd.
Guangdong Litong Information
Other Payable account Technology Investment Co., 30,105.35 465,228.30
Ltd.
Guang-Shen-Zhu Expressway
Other Payable account 20,344.23 20,344.23
Co., Ltd.
Guangdong Guangzhu West
Other Payable account 18,981.84 18,981.84
Line Expressway Co., Ltd.
Guangdong Litong Technology
Other Payable account 16,376.20 16,376.20
Investment Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Amount at year end Amount at year beginning
Name Related party
Guangdong Highway
Other Payable account 11,158.46 11,158.46
Construction Co., Ltd.
Guangdong Shanfen
Other Payable account 5,339.49 5,843.90
Expressway Co., Ltd.
Guangdong Yuedong
Other Payable account Expressway Development Co., 2,472.34 2,566.50
Ltd.
Zhaoqing Yuezhao Highway
Other Payable account 2,388.80 2,388.80
Co., Ltd.
Guangdong Road &Bridge
Other Payable account Construction Development Co., 1,948.02 2,435.71
Ltd.
Guangdong Two Guang
Other Payable account 1,603.02 1,603.02
Expressway Co., Ltd.
Guangdong West Coastal
Other Payable account 1,234.39 3,342.12
Expressway Co., Ltd.
Heyuan Helong Expressway
Other Payable account 896.89 896.89
Co., Ltd.
Shenzhen Huiyan Expressway
Other Payable account 564.92 946.81
Co., Ltd.
Guangdong Luoyang
Other Payable account 477.14 1,202.48
Expressway Co., Ltd.
Guangdong Boda Expressway
Other Payable account 408.23 408.23
Co., Ltd.
Guangdong Hehui Expressway
Other Payable account 216.43 216.43
Co., Ltd
Guangdong Yangmao
Other Payable account 2,817.71
Expressway Co., Ltd.
Xinyue Highway Construction
Dividend payable 25,000,000.00 12,500,000.00
Co., Ltd.
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
Nil
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
On June 15, 2016, the Company’ 29th meeting (Provisional) of the seventh board of directors was convened.
In the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltd pertaining to the
Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway
was examined and approved, agreed that based on the approved total investment amount by relevant government
department, then the company’s subsidiary- Guangdong Fokai Expressway Co., Ltd carries out the investment
and construction of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway; the company increases funding for Guangdong Provincial Fokai Expressway Co., Ltd
pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway, with the contributed funds as a proportion of 35% of the total investment amount approved
by relevant government department. The afore-said item had been examined and approved in the first
extraordinary general shareholder meeting, The Company had received the approval of the National Development
and Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section Rebubuilding and
Expansion Project(NO.1874-2016-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 3.513 billion yuan(the static investment is about 3.289 billion yuan), of which the project
capital is 1.23 billion yuan 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 2,283 billion yuan
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, 2018, The accumulated expenses
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
occurred of Guangdong Fokai Expressway Co.,Ltd was 1000.06 million yuan.
2. Contingency
(1) Significant contingency at balance sheet date
This matter. did not occur in this accounting period.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
XV. Enents after balance sheet date
1. Significant events had not adjusted
The nineteenth (provisional) meeting of the eighth board of directors of the company was held on August 7,
2008. The meeting examined and approved the "Proposal on Issuing Medium-term Notes". It was agreed that the
company's registration limit in the China Interbank Market Dealers Association should not exceed 3.4 billion yuan
(including), and that the company's latest audit of 40% of its net assets should be within 40%. Medium-term
notes within the period of 5 years (including 5 years) are to be issued by one-time or by stages. Funds are raised
to repay loans and replenish operation capital. In August 23, 2018, the first provisional shareholders meeting of
the company in 2018 passed the above proposal. The final issuance plan for the medium term notes is subject to
the approval of the inter bank Dealers Association of China.
l
2.Profit distribution
Nil
3.Sales return
Nil
4.Notes of other significant event after balance sheet date
Nil
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.
163
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
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.
7.Other
(1)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii 035#
collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads the
collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10, 2009, Jiujiang Bridge opened
to traffic has been restored.
On June 19,2007， The Ministry of Communications, the State Production Safety Supervision and
Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15
"Jiujiang Bridge Collision Accident", initially determined the causes of the accident are: the incident ship
suddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain neglected looking out, did not
take proper measures and deviated from the main channel, touched the 325 National Road Jiujiang Bridge the
non-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an uNilateral
responsibility of the ship.
On July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August
22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping
Company Limited and Yang Xiong to undertake the conpensation 25,587,684 yuan for the loss caused by
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
164
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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 19,357,500.96 yuan; the court dismissed the plaintiff other aspirations.
The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong Provincial 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.
(2)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 1.5 billion yuan . Floating interest rate plus guaranteed
base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate 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 1.5 billion yuan.
(3)On 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 250.6973 million yuan,
260.0802 million yuan and 403.1197 million yuan, with the aggregated non-recurring gains and losses were
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
expected to be 105.5743 million yuan. 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 1.0 yuan 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 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 Fokai Expressway Co., Ltd received such compensation.
Agreed by the company and Guangdong Provincial Highway Construction Co., Ltd, the profits of
Guangzhou Guangzhu Traffic Investment Management Co., Ltd in year-2016, year-2017 and year-2018 by
estimation shall accordingly be 230.3606 million yuan, 263.2329 million yuan and 286.5018 million yuan. 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 1.0 yuan 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 286.1655 million yuan,
more than the commitment to profit more than 35.4682 million yuan; Guangzhou Guangzhu Traffic Investment
Management Co., Ltd. 2016 annual profit of 271.7759 million yuan, More than the commitment to profit more
than 41.4153 million yuan. 2017 annual profit of 321.5.34 million yuan, More than the commitment to profit more
than 58.2705 million yuan.
(4)On April 10, 2018, the company received a letter from the shareholder Yadong Fuxingn Yalian Investment Co.,
Ltd. On February 8, 2018, Yadong Fuxing Company pledged in batches of the Guangdong Expressway A shares
that were previously pledged in the Guotai Junan Securities Co., Ltd, and handled the stock pledge financing
agreement of Guangdong Expressway A shares with the China Yinhe Securities Co., Ltd. The 141,600,000 shares
held by the Yadong Fuxing Company and accounted for 6.77% of the company's total share capital were pledged
to the China Yinhe Securities Co., Ltd for the financing, with the pledge period starting from April 3, 2018.
As of the date of approval of report of this financial statement, Yadong Fosun holds 202,429,149 A shares of the
Company, accounting for 9.68% of the total share capital of the Company, of which 141,600,000 shares are
pledged-accounting for 6.77% of the total share capital of the Company.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
XVII..Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable classified by category
In RMB
Year-end balance Year-beginning
Provision for bad
Book balance Book balance Provision for bad debts
Category debts
Book value Book value
Proportion Proportion( Proportion( Proportion(
Amount Amount Amount Amount
(%) %) %) %)
Account receivable with single major amount and
18,091,636.66 100.00% 18,091,636.66 19,001,899.29 100.00% 19,001,899.29
withdrawal bad debt provision for single item
Total 18,091,636.66 100.00% 18,091,636.66 19,001,899.29 100.00% 19,001,899.29
- Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □Not applicable
In RMB
Year-end balance
Name Bad debt
Receivable accounts Proportion Reason
provision
Guangdong Union Electronic Services Been recovered after the
18,091,636.66
Co., Ltd. period
Total 18,091,636.66 -- --
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Account receivable on which bad debt provisions are provided on age basis in the group：
□ Applicable √ Not applicable
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
（2）Accrual period, recovery or reversal of bad debts situation
Nil
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of account receivables owed by the imputation of the top five parties
Name Amount Aging Proportion(%) Bad debt
provision
Guangdong Union Electronic Services 18,091,636.66
Within 1 year 100.00
Co., Ltd
Total 18,091,636.66 -- 100.00
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
2.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
Category
Proportion( Book value Proportion Proportion( Book value
Amount Proportion(%) Amount Amount Amount
%) (%) %)
Other Account receivable
with single major amount
32,084,893.35 15.67% 32,084,893.35 100.00% 32,084,893.35 82.44% 32,084,893.35 100.00%
and withdrawal bad debt
provision for single item
Other Account receivable
withdrawal bad debt
172,707,494.33 84.33% 1,533,987.26 0.89% 171,173,507.07 6,832,189.43 17.56% 1,533,987.26 22.45% 5,298,202.17
provision by group of
credit risk characteristics
Total 204,792,387.68 100.00% 33,618,880.61 16.42% 171,173,507.07 38,917,082.78 100.00% 33,618,880.61 86.39% 5,298,202.17
Other Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □Not applicable
In RMB
Balance at year-end
Name
Other receivable Provision for bad debts Proportion% Reason
170
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Balance at year-end
Name
Other receivable Provision for bad debts Proportion% Reason
For the balance amount of our company’s secutity trading settlement funds
33,683,774.79 yuan deposited in Kunlun Securities Co., Ltd., The Xin’Ning
Municipal intermediate People’s Court of Qinghai Province had made the
judgment in accordance with the law and declared on November 11, 2006. that
Kunlun Securities Co., ltd. was bankrupted for debt payment . In March of 2007,
the liquidating group of Kunlun Securities preliminary judged the relationship
between our company and Kunlun Securities Co., Ltd.is debtor creditor
Kunlun Securities Co., relationship . as Kunlun Securities Co., Ltd.was bankrupted for debt payment and it
32,084,893.35 32,084,893.35 100.00%
Ltd. is in serious insolvency. Our company had moved the security trading settlement
funds deposited in Kunlun Securities Co., Ltd, to other receivables account for
reflection, we also have made full amount provision for had debts based on
conservatism principle. The recovered debt amount in 2008 is 485,392.67 yuan
which had been offset from the provision for bad debts. The recovered debt amount
in 2011 is 667,959.27 yuan which had been offset from the provision for bad, The
recovered debt amount in 2014 is 445,529.50 yuan which had been offset from the
provision for bad debts.debts.
Total 32,084,893.35 32,084,893.35 -- --
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
Subtotal within 1 year 3,925,741.04 0.00%
1-2 years 10.00%
2-3 years 30.00%
3-4 years 50.00%
4-5 years 90.00%
Over 5 years 1,533,987.26 1,533,987.26 100.00%
Total 5,459,728.30 1,533,987.26 28.10%
Notes
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
Name
Balance at year-end
Other receivable Bad debt provision Proportion（%） Reason
Guangdong Fokai Expressway Co.,Ltd. 164,829,638.45 Related party
transaction
Guangdong Litong Real estateInvestment 1,505,864.00 Deposit
Co., Ltd.
463,491.88 Related party
Guangdong Expressway Co.,Ltd.
transaction
Beijing CBRE property Management Service 393,331.00 Deposit
Co., Ltd.
Pengjiang Shunfeng Automobile Leasing Co., 25,500.00 Deposit
Ltd.
Guangzhou Longfeng Automobile Leasing 20,000.00 Deposit
Co., Ltd.
Guangdong Gaoda Property Development 9,940.70 Deposit
Development Co., Ltd.
Total 167,247,766.03
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB0.00; recovery or payback for bad debts Amount is RMB 0.00.
(3) The actual write-off other accounts receivable
Nil
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Related party transaction 164,829,638.45
Securities trading settlement funds balance 32,084,893.35 32,084,893.35
Guarantee deposit 1,966,383.70 1,929,135.70
Pretty cash 1,555,100.00 1,505,100.00
Advertising and service fee 203,044.13 203,133.13
Other 4,153,328.05 3,194,820.60
Total 204,792,387.68 38,917,082.78
（5）The top five other account receivable classified by debtor at period end
In RMB
Closing balance of
Name Nature Closing balance Aging Proportion%
bad debt provision
Guangdong Fokai
Current account 164,829,638.45 Within 1 year 80.49%
Expressway Co., Ltd.
Kunlun Securities Securities trading se
32,084,893.35 Over 5 years 15.67% 32,084,893.35
Co.,Ltd ttlement funds
Guangdong Litong
Real 1-2 years, Over 5
Deposit 1,505,864.00 0.74%
estateInvestment years
Co., Ltd.
Heshan
Communication Real
Current account 1,470,000.00 Over 5 years 0.72% 1,470,000.00
estate Development
Company
Guangdong Within 1 year, ,2-3
Current account 466,697.78 0.23%
Expressway Co.,Ltd. years
Total -- 200,357,093.58 -- 33,554,893.35
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
（6）Account receivable involving government subsidies
Nil
（7）Other account receivable derecognized due to the transfer of financial assets
Nil
（8）Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement.
Nil
3. Long- term 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
5,169,662,219.66 5,169,662,219.66 5,169,662,219.66 5,169,662,219.66
subsidiary
Investment to
joint ventures and
3,166,390,849.09 3,166,390,849.09 3,047,275,000.00 3,047,275,000.00
associated
enterprises
Total 8,336,053,068.75 8,336,053,068.75 8,216,937,219.66 8,216,937,219.66
（1）Investment to the subsidiary
In RMB
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
3,635,997,210.85 3,635,997,210.85
Expressway Co.,
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Ltd.
Guangzhou
Guangzhu
Communication
859,345,204.26 859,345,204.26
Investment
Management Co.,
Ltd.
Jingzhu
Expressway
419,105,446.88 419,105,446.88
Guangzhu Section
Co., Ltd.
Yuegao Capital
Investment
4,500,000.00 4,500,000.00
(Hengqin) Co.,
Ltd.
Total 5,169,662,219.66 5,169,662,219.66
175
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
Adjustment of other Declaration of Withdrawn balance of
Name Opening balance Add Decreased Gain/loss of Other equity Closing balance
comprehensive cash dividends or impairment Other impairmen
investment investment Investment changes
income profit provision t provision
I. Joint ventures
Guangdong
Guanghui
949,906,833.96 134,138,087.25 3,951,780.00 37,805,847.20 1,050,190,854.01
Expressway Co.,
Ltd.
ZhaoqingYuezhao
291,906,117.18 28,635,945.38 43,088,859.48 277,453,203.08
Highway Co., Ltd.
Subtotal 1,241,812,951.14 162,774,032.63 3,951,780.00 80,894,706.68 1,327,644,057.09
II. Associated enterprises
ShenzhenHuiyan
Expressway Co., 196,197,198.21 17,813,868.36 214,011,066.57
Ltd.
Guangdong
Jiangzhong
173,502,304.11 6,897,600.54 3,789,200.79 176,610,703.86
Expressway Co.,
Ltd.
Ganzhou Kangda
208,768,922.86 13,838,738.80 222,607,661.66
Expressway Co.,
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
Increase /decrease in reporting period Closing
Adjustment of other Declaration of Withdrawn balance of
Name Opening balance Add Decreased Gain/loss of Other equity Closing balance
comprehensive cash dividends or impairment Other impairmen
investment investment Investment changes
income profit provision t provision
Ltd.
Ganzhou Gankang
Expressway Co., 204,404,703.35 3,050,213.53 207,454,916.88
Ltd.
Guangdong Yueke
Technology Petty 215,548,332.90 7,397,846.46 222,946,179.36
Loan Co., Ltd.
Guoyuan Securities
807,040,587.43 5,004,857.02 -4,983,478.43 -5,404.45 11,940,297.90 795,116,263.67
Co.,Ltd.
Subtotal 1,805,462,048.86 54,003,124.71 -4,983,478.43 -5,404.45 15,729,498.69 1,838,746,792.00
Total 3,047,275,000.00 216,777,157.34 -4,983,478.43 3,946,375.55 96,624,205.37 3,166,390,849.09
177
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 638,591,636.62 306,898,726.06
Other 37,302,631.12 3,411,961.26 38,224,276.41 232,106.70
Total 675,894,267.74 310,310,687.32 38,224,276.41 232,106.70
Other notes The substantial increase in the main business income of the parent company in the current period is
due to the absorption and merger of the Fokai Company and the accounting of the branch business in the parent
company since August 1, 2017.
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income
621,221,266.51 707,304,426.29
accounted by cost method
Long-term equity investment income
216,777,157.34 199,376,107.62
accounted by equity method
Investment income received from holding of
42,581,144.86 24,054,256.82
available-for –sale financial assets
Total 880,579,568.71 930,734,790.73
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
44,464,720.82
non-current asset
Other non-business income and expenditures
1,075,059.00
other than the above
Less ：Influenced amount of income tax 11,126,311.84
Amount of influence of minority interests 8,328,932.53
Total 26,084,535.45 --
178
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
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
8.60% 0.37 0.37
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
8.31% 0.36 0.36
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
4.Other
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2018
XI. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, General Manager,
Chief Financial officer and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
180
