Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Report 2019
August 2019
1
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 2019
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 2019
Definition
Terms to be defined Refers to Definition
Reporting period Refers to January 1, 2019 to June 30,2019
The Semi annual report of the company was approved by the board
Reporting date Refers to
of directors of 2019, that is, August 28, 2019
YOY Refers to Compared with January-June 2018
The Company /This Company Refers to Guangdong Provincial Expressway Development Co.,Ltd.
Communication Group Refers to Guangdong Communication Group Co., Ltd.
Guangdong Expressway Refers to Guangdong Expressway Co.,Ltd.
Construction Company Refers to Guangdong Highway Construction Co., Ltd.
Technology Company/Guangdong
Refers to Guangdong Expressway Technology Investment Co., Ltd
Expressway Technology
Fokai Company Refers to Guangdong Fokai Expressway Co., Ltd.
Fokai Branch Refers to Guangdong Fokai Expressway Co., Ltd. Fokai Branch
Reconstruction and extension Project of the Reconstruction and Expansion Project of Sanbao-Shuikou Section
Refers to
South Section of Fokai Expressway of Fukai Expressway.
Guangfo Company Refers to Guangdong Guangfo Expressway Co., Ltd.
Guangdong Expressway Capital Refers to Yuegao Capital Investment (Hengqin) Co., Ltd.
Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co., Ltd.
Huiyan Company Refers to Shenzhen Huiyan Exprnessway Co., Ltd.
Guangdong Provincial Expressway Development Co.,Ltd. issues
Major assets restructuring Refers to shares and uses cash to purchase assets and raise counterpart funds
and Related transaction
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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
GPED
any)
Legal Representative Zheng Renfa
2. Contact person and contact manner
Name Yang Hanming Liang Jirong
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 2018.
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
please find the Annual Report 2018.
4. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
√ Yes □No
Retroactive adjustment or restatement of reasons
Accounting policy change
Same period of last year YoY+/-（%）
Reporting period
Before adjustment After adjustment After adjustment
Operating income（yuan） 1,483,673,245.21 1,535,864,145.14 1,535,864,145.14 -3.40%
Net profit attributable to the
shareholders of the listed company 736,486,112.30 779,002,246.98 779,002,246.98 -5.46%
（yuan）
Net profit after deducting of
non-recurring gain/loss attributable to
725,039,035.06 752,917,711.53 752,917,711.53 -3.70%
the shareholders of listed company
（yuan）
Cash flow generated by business
1,050,811,097.23 817,279,588.10 819,779,588.10 28.18%
operation, net（yuan）
Basic earning per share(yuan/Share) 0.35 0.37 0.37 -5.41%
Diluted gains per share(yuan/Share) 0.35 0.37 0.37 -5.41%
Weighted average income/asset ratio
7.53% 8.60% 8.60% -1.07%
（%）
As at the end of As at the end of last year YoY+/-（%）
the reporting
Before adjustment After adjustment After adjustment
period
Gross assets（yuan） 16,404,770,149.44 16,295,910,774.45 16,295,910,774.45 0.67%
Shareholders’ equity attributable to
shareholders of the listed company 9,192,599,494.10 9,586,701,904.06 9,586,701,904.06 -4.11%
（yuan）
The reasons for the change of Accounting Policy and the Correction of Accounting errors
On April 30, 2019, the Notice of the Ministry of Finance on Revising and Issuing the Format of Financial
Statements of General Enterprises (No. 6 Finance and Accounting [2019]) issued by the Ministry of Finance
indicated that the actual government subsidies received should be listed in the item "cash received from other
business activities". In response to such change of accounting policy, the Company adopted the retroactive
adjustment method to retroactively adjust the items reported in the financial statements from January to June 2018,
affecting the item "net cash flow generated from operating activities" in the above table.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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
10,537,743.77
for which assets impairment provision is made)
Govemment subsidies recognized in current gain and
loss(excluding those closely related to the Company’s business 420,227.62
and granted under the state’s policies)
Other non-business income and expenditures other than the
-904,697.67
above
Less: Amount of influence of income tax -796,580.71
Amount of influence of minority interests(after tax) -597,222.81
Total 11,447,077.24 --
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 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 2019
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 Higyway Co., Ltd.,Ganzhou Kangda Expr
essway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangdo
ng Guangle Expressway Co.,Ltd. and Guoyuan Securities Co., Ltd.,As of the end of the reporting period, the
company ’ s share-controlled expressway is 153.71 km, and according to the equity ratio, after the conversion
calculation, the total mileage is 264.41 km.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
The increase of 2.93% 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 increase of 4.10% by the end of the period compared with that of the beginning, It
Fixed assets was mainly influenced by the completion and opening of the expansion project of
Sanbao-Gonghe Section of Fokai Expressway and carry-forward of fixed assets.
The decrease of 20.65% 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 decrease of 23.28% by the end of the period compared with that of the beginning,
Construction in process It was mainly influenced by the completion and opening of the expansion project of
Sanbao-Gonghe Section of Fokai Highway and carry-forward of fixed assets.
The increase of 220.10% by the end of the period compared with that of the beginning,
Other receivable
It was mainly influenced by dividends receivable from non-participating companies.
The decrease of 9.86% by the end of the period compared with that of the beginning,
The main reason was that after the absorption and merger of the original wholly-owned
Deferred income tax assets
subsidiary company as a branch Company, the income of the branch Company this
year made up part of the Company's deductible losses in previous years.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
The increase of 15.95% by the end of the period compared with that of the beginning,
Other Non-current assets It was mainly due to the combined influence of the advance payment for the expansion
of Fokai Expressway and the increase of input tax to be deducted.
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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 2019, 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 2019, the main business income was 1.484 billion yuan,
meaning 46.06% of the annual plan was completed; and the operating costs was 550 million yuan, Flat year-on-year,
representing completed 38.68% 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 traffic in Increase Toll income in the first Increase
the first half year of 2019 /Decrease(%) half year of 2019（Ten /Decrease(%
（Ten thousand vehicles） thousand）
Guangfo Expressway 3,537.04 19.74% 23,017.10 2.19%
Fokai Expressway 3,421.36 4.26% 61,731.41 -3.33%
Jingzhu Expressway 3,483.62 -4.35% 60,184.56 -5.27%
Guangzhu East Section
Huiyan Expressway 2,008.31 -1.86% 11,728.74 -3.66%
Guanghui Expressway 3,082.54 10.73% 90,639.13 4.44%
Yuezhao Expressway 1,575.32 8.31% 27,114.74 3.18%
Jiangzhong Expressway 2,736.67 6.30% 22,530.61 -1.90%
Guangle Expressway 1,247.19 8.28% 155,056.82 1.45%
Kangda Expressway 131.96 3.90% 12,001.61 6.16%
Gangkang Expressway 216.06 15.40% 8,659.92 12.80%
Overall situation: During the reporting period, the increase of Guangfo Expressway traffic volume was
higher than that of toll revenue, which was mainly influenced by time-limited goods and distribution of trucks in
the surrounding sections; the toll revenue of Fokai Expressway and Guangzhu Section of Jingzhu Expressway
showed negative growth year on year, which was mainly influenced by the distributions of the surrounding road
network.
Guangfo Expressway: From July 1, 2018, a traffic restriction on trucks with more than 15 tons (7:00-22:00)
has been imposed in the direction of Guangzhou (Yayao-Hengsha Section) that trucks are guided and the time
period of Guangzhou-Foshan Section is adjusted. At the same time, the prohibition on goods was virtually
cancelled early in this year in the Foshan First Ring and drivers can drive on the road for free. Thus, the
proportion of trucks in Guangfo Section has been declined. However, Guangfo Area featured a intensive
transportation of personnel and materials, complete supporting of surrounding buildings, and continuous growth
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
of cars and vehicles. As a consequence, the increase of traffic volume was higher than that of toll revenue.
Foai Expressway: The toll revenue declined by 3.33% year on year compared with the first quarter, which
was mainly affected by the following factors: on the one hand, the diversion effect of the second phase of Yunzhan
Highway was apparent after the opening of the whole line; on the other hand, the tolls of Foshan First Ring Road
that was originally planned to open in February were repeatedly postponed, but the entry of vehicles was
unrestricted, and the strict control of over-limited and over-load transportation of trucks was not implemented.
Guangzhu Section of Jingzhu Expressway: Due to the combination of multiple factors, such as limited cargo
in some periods of Humen Bridge, the completion and opening of Nansha Bridge and Panguan Expressway, the
traffic volume and toll revenue showed negative growth year-on-year.
Gankang Expressway: traffic volume and toll revenue increased by 15.40% and 12.80% respectively
year-on-year, and continued to grow on the basis of the first quarter. It is mainly affected by many factors, such as
the construction of the surrounding national highway, the overhaul of sand and stone vehicles, and the restriction
of the passage of some trucks.
Kangda Expressway: In the first half of the year, toll revenue increased by 6.16% year-on-year in the first
half of this year, which was mainly influenced by the combined influence such as the gradual stabilization of the
negative impact of the Dayu Section of the 323 National Highway in 2017 and the stabilization of traffic volume.
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（%）
It was mainly affected by the diversion of
surrounding roads that the toll revenue of Fokai
Operating income 1,483,673,245.21 1,535,864,145.14 -3.40%
Expressway and Guangzhu Eastern Highway has
decreased.
It was mainly influenced by the completion and
opening of the expansion work of Sanbao-
Operating cost 549,623,810.49 533,736,566.35 2.98% Gonghe Section in the Fokai Expressway, the
carry-forward of the fixed assets, the depreciation
increase of the road production increased.
Administrative
76,975,210.47 73,109,460.94 5.29%
expenses
Financial
103,529,762.40 112,780,215.47 -8.20%
expenses
Income tax
189,696,774.05 213,221,718.85 -11.03%
expenses
After April 2018, the research and development
R&D
2,485,173.03 -100.00% cost of "Blue Channel" project did not happen
Investment
again.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Cash flow
Mainly the corporate income tax paid by Fokai
generated by
1,050,811,097.23 819,779,588.10 28.18% Company that were written off in the same period
business
last year
operation, net
Net cash flow It was mainly affected by the increase of project
generated by -223,968,653.96 -138,624,695.43 61.56% payment in accordance with the expansion
investment project of Fokai South Section
It was mainly due to the combined influence of
Net cash flow
-1,220,463,569.0 the increase in dividend distribution and net
generated by -911,807,967.81 -25.29%
9 increase in total fund-raising over the same
financing
period last year
It was influenced by the increase of net cash
Net increasing of inflow from operating activities, the increase of
cash and cash -86,500,045.27 -541,576,561.05 -84.03% net cash outflow from investment activities and
equivalents the decrease of net cash outflow from financing
activities
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Nil
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Breakdown of main business
In RMB
Increase/decrea
Increase/decrea
Increase/decrea se of principal
se of gross
Gross se of reverse in business cost
Operating profit rate over
operating costs profit the same period over the same
revenue the same period
rate(%) of the previous period of
of the previous
year(%) previous year
year (%)
(%)
Industry
Highway
1,449,330,681.59 521,438,699.05 64.02% -3.32% 3.27% -2.30%
transportations
Other 15,810,135.72 15,369,563.00 2.79% -19.95% -11.63% -9.15%
Product
Highway
1,449,330,681.59 521,438,699.05 64.02% -3.32% 3.27% -2.30%
transportations
Other 15,810,135.72 15,369,563.00 2.79% -19.95% -11.63% -9.15%
Area
Guangfo
230,170,928.97 31,785,031.71 86.19% 2.19% 14.43% -1.48%
Expressway
Fokai
617,314,121.48 325,665,097.11 47.24% -3.33% 6.25% -4.76%
Expressway
Jingzhu
Expressway
601,845,631.14 163,988,570.23 72.75% -5.27% -3.89% -0.39%
Guangzhu
section
Other 15,810,135.72 15,369,563.00 2.79% -19.95% -11.63% -9.15%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
Ratio in total Whether be
Amount Note
profit sustainable
Investment It is due to the operation accumulation of
276,241,866.32 26.73% Yes
income participant companies
Non-operating Mainly the revenue incurred by claims for
735,359.76 0.07% No
income highway property
Non-operating 4,231,407.95 0.41% It was mainly the expenditure for repairing No
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
expenses damaged highway property facilities and the loss
of abandoned fixed assets
Assets disposal Income from transfer of intellectual property
13,129,094.29 1.27% No
income rights related with "Blue Channel" by Yuegaoke
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 Change in Reason for
As a percentage As a percentage percentage significant
Amount Amount
of total assets(%) of total assets(%) (%) change
Monetary fund 2,038,024,951.05 12.42% 1,821,466,139.37 11.48% 0.94%
Accounts
103,117,760.85 0.63% 94,111,175.70 0.59% 0.04%
receivable
Inventories 110,142.49 0.001% 139,076.49 0.001% 0.00%
Real estate
3,442,059.61 0.02% 2,523,650.98 0.02% 0.00%
Investment
Long-term
equity 3,237,607,137.38 19.74% 3,166,390,849.09 19.95% -0.21%
investment
Fixed assets 7,911,433,640.97 48.23% 7,945,714,512.39 50.07% -1.84%
Construction in
835,875,363.36 5.10% 629,469,949.60 3.97% 1.13%
process
Long-term
3,281,725,000.00 20.00% 4,391,170,000.00 27.67% -7.67%
loans
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Impairment Purchase Sold
Gain/Loss on Cumulative fair
provisions d amount amount
fair value value change Closing
Items Opening amount in the in the in the
change in the recorded into mount
reporting reporting reporting
reporting period equity
period period period
Financial assets
Other Equity
1,694,669,6
Instrument 1,668,791,594.53 378,760,459.84
38.37
Investment
Subtotal of 1,694,669,6
1,668,791,594.53 378,760,459.84
financial assets 38.37
Total of the 1,668,791,594.53 378,760,459.84 1,694,669,6
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
above 38.37
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
3. Assets right restriction till end of reporting period
The balance of restricted bank deposits at the end of the period was RMB 1,221,200.00, which was the land
reclamation fund deposited into the fund custody account for the reconstruction and expansion project of sanbao
to Shuikou section of Fokai Expressway.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
I. Investment situation
1. General
√ Applicable □ Not applicable
Current Investment Amount(Yuan) Same period of last year (Yuan) Change rate
489,183,814.45 273,407,293.65 78.92%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □Not applicable
In RMB
Gain or Whether
Name of the Share Progress up
Main Investm Investment Capital Investment Product Less or the to Involve Date of Disclosure
Company Proportion Partner to Balance Anticipate
Business ent Way Amount Source Horizon Type Current in Disclosure Index
Invested % Sheet Date d Income
Investment Lawsuit
Announcement
of Resolutions
On the
Huiyan of the 13th
basis of the
Shenzhen Co., Ltd. Yantian (Provisional)
term of
Huiyan Expressw Increase 38,917,650. Unallocate Port Limited October Meeting of the
33.33% operation Completed No
Expressway ay capital 00 d profit Co., Company 31,2017 Eighth Board
approved
Co., Ltd. conversion ltd. of Directors,
by the
Capital Announcement
government
of External
Investment
38,917,650.
Total -- -- -- -- -- -- -- -- 0.00 0.00 -- -- --
00
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □Not applicable
In RMB
Reasons for
Accumulated Accumulated
failure in
Fixed Industry in Investment actual amount realized return
meeting Date of Disclosure
Form of assets which the amount during invested as of Source of Estimated as of the end
Name Progress scheduled Disclosure( Index(If
investment investment investment the reporting the end of und return of the end of
progress and If any) any)
or not project operates period reporting the reporting
estimated
period period
return
Announce
ment of the
29th
Fokai (Provisiona
Expressway l) Meeting
Sanbao to of the
450,266,164.4 1,948,731,008 Self and Not June 17,
Shuikou Self Yes Expressway 58.87% Seventh
5 .60 Borrowing applicable 2016
section Board of
Extension Directors,
project Announce
ment of
External
Investment
450,266,164.4 1,948,731,008
Total -- -- -- -- -- 0.00 0.00 -- -- --
5 .60
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
Book value
Changes Purchase Sale
balance at Cumulativ Gain/loss Book value
Stock Initial Mode of in fair amount amount
Security Security the e fair value of the balance at the end Sauce of
Abbreviation investment accounting value of in the in the Accounting items
category code beginning of changes in reporting of the reporting the shares
: cost measurement the this this this
the reporting equity period period
period period period
period
Domesti
Other equity
c and Everbright 517,560,87 870,443,292 378,760,45 37,876,045
601818 FVM 896,321,336.64 Instrument Self
foreign Bank 6.80 .80 9.84 .98
Investment
stocks
517,560,87 870,443,292 378,760,45 37,876,045
Total -- 0.00 0.00 0.00 896,321,336.64 -- --
6.80 .80 9.84 .98
Disclosure Date of Announcement on
Securities Investment Approved by July 22,2009
the Board of Directors
Disclosure Date of Announcement on
Securities Investment Approved by August 7,2009
the Shareholders Meeting(If any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
19
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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
20
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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
Registe
Company Operating
Company Name Leading products and services red Total assets Net assets Operating profit Net Profit
type Income
capital
Operating Guangfo Expressway Co., RMB
Guangfo
Subsidiary Ltd.(starts from Hengsha, Guangzhou, ends in 200 503,032,983.60 442,885,221.80 231,359,875.86 190,238,384.88 142,527,223.05
Expressway
Xiebian, Foshan. Total length 15.7 kilometers million
Jingzhu The operation and management of
RMB
Expressway Guangzhou-Zhuhai Expressway and provision
Subsidiary 580 2,335,743,800.10 930,365,618.81 613,528,787.18 386,152,337.13 285,871,543.23
Guangzhu Section of supporting services including fueling,
million
Co., Ltd. salvage and supply of parts and components
Guangzhu Traffic
Investment Highway investment management and RMB 3
Subsidiary 2,340,653,396.83 516,610,687.09 613,528,787.18 386,102,723.36 157,179,735.01
Management Co., consultation; highway maintenance million
Ltd.
Investment in and construction of Guanghui
Expressway Co., Ltd. and supporting
Guangdong facilities, the toll collection and maintenance
RMB
Guanghui Sharing management of Guanghui Expressway, The 3,590,533,401.5
2.352 4,721,378,640.92 917,898,192.73 636,648,322.19 478,273,173.41
Expressway Co., company Guanghui Expressway's supporting gas 4
billion
Ltd. station, salvation, vehicle maintenance,
vehicle transport, catering, warehousing
investment and development
Subsidiaries obtained or disposed in the reporting period
21
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
□ Applicable √ Not applicable
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 50,219,596.66
yuan, a decrease of 14.95%, The main reasons for the decrease included the following factors: 1. reduction of the the toll income caused by traffic restriction of
Humen Bridge, diversion of Nansha Bridge and Fanguan Highway First Phase after the opening, etc. 2. during the same period last year, the revenue from highway
property disposal was confirmed to be RMB 44.72 million, which did not occur in the current period.
22
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2019
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.
23
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 participati Convened date Disclosure date
information
on ratio
Annual
2018 Shareholders’ general Shareholders’
67.59% May 20,2019 May 21,2019 www.cninfo.com.cn
meeting General
Meeting
First provisional Provisional
Shareholders’ general Shareholders’ 66.75% June 25,2019 June 26,2019 www.cninfo.com.cn
meeting of 2019 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.
24
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s”
Issued by CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding“ Modified auditor’ 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
Amount Litigation
Forming of Litigation Litigation Date Index
involved (arbitration)
Basic conditions of litigation the (arbitratio (arbitration) of of
（Ten judgement
(arbitration) predicted n) judgement result discl disclo
thousand execution
debt progress and influence osure sure
yuan ） 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
No major
liabilities for the toll losses of Fokai Waiting
influence on the
company due to the Jiujiang collapse. for the
company asset
On March 7, 2014, the court made the 1,935.75 No court None
conditions and
first instance judgement requiring the judgement
the operation
defendants Foshan Nanhai Yuhang result
results.
Shipping Co., Ltd. and Yang Xiong to
compensate the defendant Guangdong
Fokai Expressway Co., Ltd. jointly for
the vehicle toll revenue loss totaling
19,357,500.96 yuan. Guangdong Higher
People's Court entered a judgement on
25
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
June 5, 2014 and the lawsuit terminated.
By the end of the report period, the
abatement of action causes are already
removed and the provincial higher court
restores the hearing and conducts the
investigation on April 21, 2017. Now it’
s still the time waiting for the court
judgement.
On June 12, 2009, the 6.15
accident-causing boat owner Yang Xiong
filed a lawsuit with Guangzhou
Maritime Court requiring Fokai
company to compensate for the boat loss
and interest totaling 7.28 million yuan. During No major
On December 20, 2013, the court made abatement influence on the
the first instance judgement rejecting all of action company asset
728 No None
litigation claims of Yang Xiong. He filed by the conditions and
a lawsuit with Guangdong Higher second the operation
People's Court against such sentence instance results.
above, and the second instance
terminated the lawsuit in May 2015. By
the end of the report period, the lawsuit
is still suspended without any notice
from the provincial higher court.
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
26
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
No such cases in the reporting period.
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
√Applicable □ Not applicable
Is there a non-operational relationship between creditor's rights and liabilities?
□Yes √No
No such cases in the reporting period.
5. Other significant related-party transactions
√ Applicable □Not applicable
1.The 23th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal on Transferring the Intellectual Property Assets Group of the “Blue Channel” by Guangdong Expressway
Technology Investment Co., Ltd., a wholly-owned subsidiary. It is agreed that Guangdong Expressway
Technology Investment Co., Ltd., a wholly-owned subsidiary of the Company, will transfer the “Blue Channel”
related intellectual property asset group to Guangdong Union Electronic Service Co., Ltd. by way of agreement
transfer, with the assessed value of RMB 19,881,200.00 as the transfer price.
2.The 24th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal Concerning the Company Daily Associated Transactions Predicted of 2019 . Agree on the predicted daily
associated transactions for the company headquarters, wholly-owned and holding subsidiaries of 2019, whose
amount in total is RMB 49.4265 million .
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
Announcement of related party transaction January 23,2019 www.cninfo.com.cn
Estimates announcement of the Daily
March 29,2019 www.cninfo.com.cn
Related Party Transaction of 2019
27
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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.Guarantees
√Applicable□Not applicable
28
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（1）Guarantees
Ten thousand yuan
External guarantees made by the Company（Exclude those made for subsidiaries）
Relevant Guarantee
Date of
disclosure Complete for
Amount happening Actual
Name of the date/No. of Guarantee Guarantee implemen associated
of (Date of mount of
Company the type term tation parties
Guarantee signing guarantee
guaranteed or not (Yes or
agreement)
amount no)
Guangdong
2012.9.25
Communicati May
172,500 May 31,2013 172,500 Pledge -2020.3.2 No Yes
on Group 11,2012
5
Co.,Ltd
Total amount of approved Total actually amount of
external guarantee in the 0 external guarantee in the 0
report period(A1) report period(A2)
Total amount of approved Total actually amount of
external guarantee at the end 172,500 external guarantee at the end 172,500
of the report period(A3) of the report period(A4)
Guarantee of the Company for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implement for
date/No. of Guarantee Guarantee
Company of (Date o mount of ation associated
the type term
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implement for
date/No. of Guarantee Guarantee
Company of (Date o mount of ation associated
the type term
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the
Total of actual guarantee in
Period 0 0
the Period（A2+B2+C2）
（A1+B1+C1）
Total of guarantee at 172,500 Total of actual guarantee at 172,500
29
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Period-end（A3+B3+C3） Period-end
（A4+B4+C4）
The proportion of the total amount of actually guarantee in
18.77%
the net assets of the Company(that is A4+B4+C4)
Including
Amount of guarantee for shareholders, actual controller and
172,500
its associated parties（D）
Description of the guarantee with complex method
（2）Illegal external guarantee
□ Applicable √ Not applicable
No such cases in the reporting period.
3. Other significant contract
□ Applicable √ Not applicable
No such cases in the reporting period.
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
The Company's main business is highway operation and management, which does not belong to the key pollutant
discharge units announced by the environmental protection department.
2. Measures Taken for Targeted Poverty Alleviation
(1) Targeted poverty alleviation plans
The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up
plan either.
（2）Summary of related work done in the reporting period
Nil
30
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（3）Results of Targeted measures
Nil
（4）Subsequent plans
Nil
XVI.Other material events
√ Applicable □Not applicable
The annual shareholders' meeting of the Company held on May 20, 2019 examined and Adopted the Bill on
the Change of Commitments Related to the Company's Major Asset Restructuring and agreed the commitment
made by the Company that the land and property management rights registration procedures of Guangdong Fokai
Expressway Co., Ltd. and Jingzhu Expressway Guangzhu Section Co., Ltd. in the major asset reorganization of
Guangdong Communication Group Co., Ltd. has been changed in 2016 by issuing shares and paying cash to
purchase assets and raise matching funds.
Relevant Queries on the Disclosure Website of the Interim Report on this Matter
Description of the website for
Date of disclosing provisional
Description of provisional announcement disclosing provisional
announcement
announcements
Announcement of Resolutions of the 15th (Provisional) April 27,2019 www.cninfo.com.cn
Meeting of the Eighth Board of Directors
Announcement of Resolutions of the 14th (Provisional) April 27,2019 www.cninfo.com.cn
Meeting of the Eighth Board of Supervisors
Announcement on the Progress of Major Asset April 27,2019 www.cninfo.com.cn
Restructuring Commitments and the Deadline for
Controlling Shareholders to Apply for Changes in
Commitments
Announcement of Resolutions of the shareholders' May 21,2019 www.cninfo.com.cn
general meeting of 2018
XVII. Material events of subsidiaries
√Applicable □Not applicable
The 23th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal on Transferring the Intellectual Property Assets Group of the “Blue Channel” by Guangdong Expressway
Technology Investment Co., Ltd., a wholly-owned subsidiary. It is agreed that Guangdong Expressway Technology
Investment Co., Ltd., a wholly-owned subsidiary of the Company, will transfer the “Blue Channel” related
intellectual property asset group to Guangdong Union Electronic Service Co., Ltd. by way of agreement transfer,
31
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
with the assessed value of RMB 19,881,200.00 as the transfer price.
Relevant Queries on the Disclosure Website of the Interim Report on this Matter
Description of the website for
Date of disclosing
Description of provisional announcement disclosing provisional
provisional announcement
announcements
Announcement of Resolutions of the 23th (Provisional) Meeting of January 23,2019 www.cninfo.com.cn
the Eighth Board of Directors
Announcement of the Related Party Transaction January 23,2019 www.cninfo.com.cn
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
Bo
Share ation of
nus
allotm common Other Subtotal Quantity Proportion
sha
ent reserve
res
fund
1.Shares with conditional 1,273,271,62
60.90% -198,591 -198,591 1,273,073,036 60.89%
subscription 7
1.State-owned shares 410,002,853 19.61% 29,912 29,912 410,032,765 19.61%
2.State-owned legal
652,971,967 31.23% 0 0 652,971,967 31.23%
person shares
3.Other domestic shares 210,293,994 10.06% -225,690 -225,690 210,068,304 10.05%
Including ：Domestic
209,498,275 10.02% -40,771 -40,771 209,457,504 10.02%
Legal person shares
Domestic natural person
795,719 0.04% -184,919 -184,919 610,800 0.03%
shares
4.Foreign shares 2,813 0.00% -2,813 -2,813 0 0.00%
Including：Foreign Legal
0 0.00% 0 0 0 0.00%
person shares
Foreign natural person
2,813 0.00% -2,813 -2,813 0 0.00%
shares
II.Shares with
unconditional 817,534,499 39.10% 198,591 198,591 817,733,090 39.11%
subscription
32
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
1.Common shares in
468,885,824 22.43% 198,591 198,591 469,084,415 22.44%
RMB
2.Foreign shares in
348,648,675 16.67% 0 0 348,648,675 16.67%
domestic market
3. 2.Foreign shares in
0 0.00% 0 0 0 0.00%
Overseas market
2,090,806,12
III. Total of capital shares 100.00% 0 0 2,090,806,126 100.00%
6
Reasons for share changed
√ Applicable □Not applicable
1. Within the reporting period, 65 shareholders reimbursed 29,912 shares of Guangdong Provincial
Communication Group Company Limited, which were converted from 29,534 shares of "shareholding of
domestic natural person" and 378 shares of "shareholding of overseas natural person" to "national shareholding".
Note 2: During the reporting period,40,771 shares of "domestic legal person holding" were converted to "domestic
natural person holding shares.
3. Within the reporting period, 184,919 shares of "shareholding of domestic natural person with limited
conditions of sale" and 2,435 shares of "shareholding of overseas natural person with limited conditions of sale"
were converted to "unlimited conditional shares". 5,775 shares of limited conditional shares held by Li Mei, the
outgoing supervisor, were converted into limited conditional shares.
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable 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
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
33
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
Number of
Number of Restricted
Initial Increased
Unrestricted Shares in the Reason for Restricted Date of Restriction
Shareholder Name Restricted Restricted
Shares This End of the Shares Removal
Shares Shares This
Term Term
Term
Zhang Xiuling and other 65 Release of restrictions on
222,728 192,816 29,912 0 April 26,2019
shareholders sales
Guangdong Communication 65 shareholders repay the
410,002,853 0 29,912 410,032,765 Unknown
Group Co., Ltd. advance shares
Change of top
Lei Mei（Outgoing
92,404 5,775 0 86,629 management locking Unknown
Supervisor）
shares
Total 410,317,985 198,591 0 410,119,394 -- --
II. Issuing and listing
□ Applicable √ Not applicable
34
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
III. Shareholders and shareholding
In Shares
Total number of common
shareholders at the end of Total number of preferred shareholders that had restored the voting right
56,739 0
the at the end of the reporting period (if any) (note 8)
reporting period
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of share
Proportion of Number of Changes in Amount of Amount of
pledged/frozen
Shareholders Nature of shareholder shares held shares held at reporting restricted un-restricted
State of
（%） period -end period shares held shares held Amount
share
Guangdong Communication Group Co.,Ltd State-owned legal person 24.56% 513,412,507 410,032,765 10,337,972
Guangdong Highway Construction Co., Ltd, State-owned legal person 22.30% 466,325,020 466,325,020
Domestic non State-owned 156,652,50
Yadong Fuxing Yalian Investment Co., Ltd. 9.68% 202,429,149 202,429,149 Pledge
Legal person 0
Tibet Yingyue Investment Management Co., Ltd. State-owned legal person 4.84% 101,214,574 101,214,574
Guangdong Expressway Co., Ltd. State-owned legal person 2.53% 52,937,491 52,937,491
Guangfa Securities Co., Ltd. State-owned legal person 1.45% 30,364,372 30,364,372
Agricultural Bank of China－Jingshun Great Wall
Energy Infrastructure Mixed Securities Investment Other 1.27% 26,617,103
Fund
China Life Insurance Co., Ltd.－Dividend －
Other 1.15% 23,965,291
Personal dividend -005L-FH002 Shen
China Life Insurance Co., Ltd.－Traditional－
Other 1.08% 22,495,445
Common insurance products-005L-CT001Shen
35
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Domestic natural person
Feng Wuchu 0.97% 20,222,807
shares
Strategic investor or general legal person becoming
top-10 ordinary shareholder due to rights issue (if None
any)
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway Construction Co., Ltd. and Guangdong
Related or acting-in-concert parties among Expressway Co., Ltd., It is unknown whether there is relationship between other shareholders and whether they are persons taking
shareholders above 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 Share type
Name of the shareholder
the end of the reporting period Share type Quantity
Guangdong Communication Group Co.,Ltd 103,379,742 RMB Common shares 103,379,742
Agricultural Bank of China－Jingshun Great Wall Energy
26,617,103 RMB Common shares 26,617,103
Infrastructure Mixed Securities Investment Fund
China Life Insurance Co., Ltd.－Dividend －Personal dividend
23,965,291 RMB Common shares 23,965,291
-005L-FH002 Shen
China Life Insurance Co., Ltd.－Traditional－Common
22,495,445 RMB Common shares 22,495,445
insurance products-005L-CT001Shen
RMB Common shares 18,146,144
Feng Wuchu 20,222,807 Foreign shares placed in domestic
2,076,663
exchange
Foreign shares placed in domestic
VALUE PARTNERS CLASSIC FUND 13,339,892 13,339,892
exchange
Foreign shares placed in domestic
Xinyue Co., Ltd. 13,201,086 13,201,086
exchange
36
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Foreign shares placed in domestic
PRUSIK UMBRELLA UCITS FUND PLC 12,999,871 12,999,871
exchange
Khazanah Nasional Berhad－self fund 10,522,779 RMB Common shares 10,522,779
Foreign shares placed in domestic
MATTHEWS CHINA DIVIDEND FUND 10,498,218 10,498,218
exchange
Explanation on associated relationship or consistent action Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway Construction Co., Ltd. and
among the top 10 shareholders of non-restricted negotiable Guangdong Expressway Co., Ltd. ,It is unknown whether there is relationship between other shareholders and whether they
shares and that between the top 10 shareholders of non-restricted are persons taking concerted action specified in the Regulations on Disclosure of Information about Change in
negotiable shares and top 10 shareholders Shareholding of Shareholders of Listed Companies.
Top 10 ordinary shareholders conducting securities margin
Nil
trading (if any) (see note 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting
period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
37
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
38
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 2018 Annual Report
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Independent Leaves office after six years of
Xiao Duan Left May 20,2019
director term of office
Chairman of the
Ling Ping Supervisory Left May 20,2019 Retiree
Committee
Independent
Zeng Xiaoqing Elected May 20,2019
director
Chairman of the
Jiang
Supervisory Elected May 20,2019
Changwen
Committee
39
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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
40
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by：Guangdong Provincial Expressway Development Co., Ltd.
June 30,2019
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 2,038,024,951.05 2,124,524,996.32
Settlement provision
Outgoing call loan
Transactional financial assets
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Notes receivable
Account receivable 103,117,760.85 91,076,995.07
Financing of receivables
Prepayments 2,863,265.25 1,912,943.40
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable 52,775,962.28 16,487,256.02
Including：Interest receivable
41
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items June 30,2019 December 31,2018
Dividend receivable 34,145,770.80 1,205,472.90
Repurchasing of financial assets
Inventories 110,142.49 81,017.91
Contract assets
Assets held for sales
Non-current asset due within 1 year 51,745.32 51,745.32
Other current asset
Total of current assets 2,196,943,827.24 2,234,134,954.04
Non-current assets：
Loans and payment on other’s behalf disbursed
Debt investment
Available for sale of financial assets 1,668,791,594.53
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 3,237,607,137.38 3,145,644,970.07
Other equity instruments investment 1,694,669,638.37
Other non-current financial assets
Property investment 3,442,059.61 3,579,007.54
Fixed assets 7,911,433,640.97 7,600,046,319.91
Construction in progress 835,875,363.36 1,089,473,425.63
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 4,554,091.05 5,739,020.48
Development expenses
Goodwill
Long-germ expenses to be amortized 1,168,273.16 1,221,781.88
Deferred income tax asset 403,367,030.48 447,485,034.79
Other non-current asset 115,709,087.82 99,794,665.58
Total of non-current assets 14,207,826,322.20 14,061,775,820.41
Total of assets 16,404,770,149.44 16,295,910,774.45
42
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items June 30,2019 December 31,2018
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair value with variations
accounted into current income account
Derivative financial liabilities
Notes payable
Account payable 215,439,814.83 203,779,190.74
Advance receipts 11,725,138.96 12,039,708.01
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 18,123,397.10 13,122,437.17
Tax payable 95,207,898.65 104,198,746.06
Other account payable 284,563,651.27 191,254,464.84
Including：Interest payable 17,157,289.56 8,971,576.57
Dividend payable 21,150,413.70 17,191,142.23
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1 year 2,041,365,000.00 2,498,480,000.00
Other current liability
Total of current liability 2,666,424,900.81 3,022,874,546.82
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 3,281,725,000.00 2,983,040,000.00
Bond payable 677,902,761.25
Including：preferred stock
Sustainable debt
43
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items June 30,2019 December 31,2018
Lease liability
Long-term payable 39,625,983.68 38,022,210.11
Long-term remuneration payable to staff
Expected liabilities
Deferred income
Deferred income tax liability 203,179,299.45 205,672,389.59
Other non-current liabilities
Total non-current liabilities 4,202,433,044.38 3,226,734,599.70
Total of liability 6,868,857,945.19 6,249,609,146.52
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,562,570,465.31 2,536,774,965.31
Less：Shares in stock
Other comprehensive income 275,111,548.84 245,109,114.81
Special reserve
Surplus reserves 775,402,561.35 775,402,561.35
Common risk provision
Retained profit 3,488,708,792.60 3,938,609,136.59
Total of owner’s equity belong to the parent company 9,192,599,494.10 9,586,701,904.06
Minority shareholders’ equity 343,312,710.15 459,599,723.87
Total of owners’ equity 9,535,912,204.25 10,046,301,627.93
Total of liabilities and owners’ equity 16,404,770,149.44 16,295,910,774.45
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
44
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
2.Parent Company Balance Sheet
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 2,015,944,877.34 2,096,597,568.04
Transactional financial assets
Financial assets measured at fair value with variations accounted
into current income account
Derivative financial assets
Notes receivable
Account receivable 17,585,263.17 18,405,847.15
Financing of receivables
Prepayments 2,266,509.88 1,532,057.82
Other account receivable 72,684,121.08 9,323,782.66
Including：Interest receivable 32,460,868.78 1,880,148.12
Dividend receivable 34,145,770.80 1,205,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 100,000,000.00 100,000,000.00
Other current asset
Total of current assets 2,208,480,771.47 2,225,859,255.67
Non-current assets：
Debt investment 692,903,684.98
Available for sale of financial assets 1,668,791,594.53
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 4,771,272,146.19 4,679,309,978.88
Other equity instruments investment 1,694,669,638.37
Other non-current financial assets
Property investment 3,189,921.36 3,326,869.29
Fixed assets 5,728,126,768.64 5,292,898,635.00
45
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items June 30,2019 December 31,2018
Construction in progress 795,576,474.85 1,060,230,773.10
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 1,454,457.72 1,741,277.53
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 403,245,352.12 447,328,530.77
Other non-current asset 115,094,875.40 790,720,727.48
Total of non-current assets 14,205,533,319.63 13,944,348,386.58
Total of assets 16,414,014,091.10 16,170,207,642.25
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair value with variations accounted
into current income account
Derivative financial liabilities
Notes payable
Account payable 173,643,504.46 124,833,335.72
Advance receipts
Contract Liabilities
Employees’ wage payable 5,271,471.25 5,669,203.37
Tax payable 6,636,136.81 10,297,144.52
Other account payable 241,188,208.02 142,457,135.79
Including：Interest payable 16,683,582.06 8,373,096.36
Dividend payable 21,150,413.70 17,191,142.23
Liabilities held for sales
Non-current liability due within 1 year 2,002,685,000.00 2,327,180,000.00
Other current liability 566,301,158.49 977,236,252.44
Total of current liability 2,995,725,479.03 3,587,673,071.84
Non-current liabilities：
Long-term loan 2,933,705,000.00 2,731,990,000.00
46
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items June 30,2019 December 31,2018
Bond payable 677,902,761.25
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 39,625,983.68 38,022,210.11
Long-term remuneration payable to staff
Expected liabilities
Deferred income
Deferred income tax liability 94,690,114.96 88,220,604.00
Other non-current liabilities
Total non-current liabilities 3,745,923,859.89 2,858,232,814.11
Total of liability 6,741,649,338.92 6,445,905,885.95
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,974,458,696.93 2,948,663,196.93
Less：Shares in stock
Other comprehensive income 275,111,548.84 245,109,114.81
Special reserve
Surplus reserves 759,558,277.70 759,558,277.70
Retained profit 3,572,430,102.71 3,680,165,040.86
Total of owners’ equity 9,672,364,752.18 9,724,301,756.30
Total of liabilities and owners’ equity 16,414,014,091.10 16,170,207,642.25
47
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
3.Consolidated Income statement
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 1,483,673,245.21 1,535,864,145.14
Incl：Business income 1,483,673,245.21 1,535,864,145.14
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 736,685,807.33 728,964,530.78
Incl：Business cost 549,623,810.49 533,736,566.35
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 6,557,023.97 6,853,114.99
Sales expense
Administrative expense 76,975,210.47 73,109,460.94
R & D expense 2,485,173.03
Financial expenses 103,529,762.40 112,780,215.47
Including：Interest expense 115,040,857.71 125,752,286.60
Interest income 15,761,707.69 18,076,236.30
Add：Other income 420,227.62
Investment gain（“-”for loss） 276,241,866.32 259,358,302.20
Including: investment gains from affiliates 237,712,998.09 216,777,157.34
Financial assets measured at amortized cost cease to be recognized
as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets 57,890.35
48
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items Semi-annual of 2019 Semi-annual of 2018
Assets disposal income 13,129,094.29 44,860,186.67
III. Operational profit（“-”for loss） 1,036,778,626.11 1,111,175,993.58
Add ：Non-operational income 735,359.76 2,687,560.58
Less: Non-operating expense 4,231,407.95 2,007,967.43
IV. Total profit(“-”for loss) 1,033,282,577.92 1,111,855,586.73
Less：Income tax expenses 189,696,774.05 213,221,718.85
V. Net profit 843,585,803.87 898,633,867.88
(I) Classification by business continuity
1.Net continuing operating profit 843,585,803.87 898,633,867.88
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 736,486,112.30 779,002,246.98
2.Minority shareholders’ equity 107,099,691.57 119,631,620.90
VI. Net after-tax of other comprehensive income 18,938,083.74 -73,795,549.55
Net of profit of other comprehensive income attributable to owners o 18,938,083.74 -73,795,549.55
f the parent company.
（I）Other comprehensive income items that will not be reclassified
19,408,532.88
into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or
net assets
2.Other comprehensive income under the equity method investee can
not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
19,408,532.88
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into profit or lo -470,449.14 -73,795,549.55
ss.
1.Other comprehensive income under the equity method investee can -470,449.14 -4,983,478.43
be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
-68,812,071.12
3.Gains and losses from changes in fair value available for sale finan
49
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items Semi-annual of 2019 Semi-annual of 2018
cial assets
4. Other comprehensive income arising from the reclassification of
financial assets
5.Held-to-maturity investments reclassified to gains and losses of ava
ilable for sale financial assets
6. Allowance for credit impairments in investments in other debt
obligations
7. Reserve for cash flow hedges
8. Translation differences in currency financial statements
9.Other
Net of profit of other comprehensive income attributable to Minority
shareholders’ equity
VII. Total comprehensive income 862,523,887.61 824,838,318.33
Total comprehensive income attributable to the owner of the parent
755,424,196.04 705,206,697.43
company
Total comprehensive income attributable minority shareholders 107,099,691.57 119,631,620.90
VIII. Earnings per share
（I）Basic earnings per share 0.35 0.37
(II)Diluted earnings per share 0.35 0.37
The current business combination under common control, the net profits of the combined party before achieved 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
50
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
4. Income statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 623,126,517.35 675,894,267.74
Incl：Business cost 329,190,674.52 310,310,687.32
Business tax and surcharge 3,486,292.37 3,493,775.90
Sales expense
Administrative expense 46,996,060.64 42,233,003.03
R & D expense
Financial expenses 96,377,160.24 104,206,424.94
Including：Interest expenses 109,559,414.30 118,866,427.75
Interest income 15,652,128.26 17,806,734.11
Add：Other income 70,758.72
Investment gain（“-”for loss） 975,659,501.70 880,579,568.71
Including: investment gains from affiliates 237,712,998.09 216,777,157.34
Financial assets measured at amortized cost cease to be
recognized as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets
Assets disposal income 138,427.18
II. Operational profit（“-”for loss） 1,122,806,590.00 1,096,368,372.44
Add ：Non-operational income 298,935.96 916,331.99
Less：Non -operational expenses 370,829.17 485,826.09
III. Total profit(“-”for loss) 1,122,734,696.79 1,096,798,878.34
Less：Income tax expenses 44,083,178.65 54,054,827.41
IV. Net profit 1,078,651,518.14 1,042,744,050.93
1.Net continuing operating profit 1,078,651,518.14 1,042,744,050.93
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 18,938,083.74 -73,795,549.55
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting 19,408,532.88
period
51
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items Semi-annual of 2019 Semi-annual of 2018
1.Re-measurement of defined benefit plans of changes in n
et debt or net assets
2.Other comprehensive income under the equity method in
vestee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
19,408,532.88
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into -470,449.14 -73,795,549.55
profit or loss.
1.Other comprehensive income under the equity method in
-470,449.14 -4,983,478.43
vestee can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3.Gains and losses from changes in fair value available for
-68,812,071.12
sale financial assets
4. Other comprehensive income arising from the
reclassification of financial assets
5.Held-to-maturity investments reclassified to gains and lo
sses of available for sale financial assets
6. Allowance for credit impairments in investments in
other debt obligations
7. Reserve for cash flow hedges
8.Translation differences in currency financial statements
9.Other
VI. Total comprehensive income 1,097,589,601.88 968,948,501.38
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
52
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
5. Consolidated Cash flow statement
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Cash flows from operating activities
Cash received from sales of goods or rending of services 1,509,571,069.40 1,567,523,150.21
Net increase of customer deposits and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned
Other cash received from business operation 25,618,718.28 41,946,329.98
Sub-total of cash inflow 1,535,189,787.68 1,609,469,480.19
Cash paid for purchasing of merchandise and services 92,703,135.93 96,705,259.73
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 143,256,732.77 138,291,293.37
Taxes paid 210,497,035.66 532,821,606.22
Other cash paid for business activities 37,921,786.09 21,871,732.77
Sub-total of cash outflow from business activities 484,378,690.45 789,689,892.09
Net cash generated from /used in operating activities 1,050,811,097.23 819,779,588.10
II. Cash flow generated by investing
Cash received from investment retrieving
53
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items Semi-annual of 2019 Semi-annual of 2018
Cash received as investment gains 176,375,388.78 84,683,907.47
Net cash retrieved from disposal of fixed assets, intangible assets, and
13,961,500.00 100,573,025.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 190,336,888.78 185,256,932.47
Cash paid for construction of fixed assets, intangible assets and other
414,305,542.74 323,881,627.90
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 investment activities 414,305,542.74 323,881,627.90
Net cash flow generated by investment -223,968,653.96 -138,624,695.43
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 2,231,700,000.00 800,000,000.00
Cash received from bond placing
Other financing –related cash received
Sub-total of cash inflow from financing activities 2,231,700,000.00 800,000,000.00
Cash to repay debts 1,620,130,000.00 637,830,000.00
Cash paid as dividend, profit, or interests 1,522,586,583.81 1,382,633,569.09
Including: Dividend and profit paid by subsidiaries to minor shareholders 220,140,964.92 179,899,173.50
Other cash paid for financing activities 791,384.00
Sub-total of cash outflow due to financing activities 3,143,507,967.81 2,020,463,569.09
Net cash flow generated by financing -911,807,967.81 -1,220,463,569.09
IV. Influence of exchange rate alternation on cash and cash equivalents -1,534,520.73 -2,267,884.63
V.Net increase of cash and cash equivalents -86,500,045.27 -541,576,561.05
Add: balance of cash and cash equivalents at the beginning of term 2,123,303,796.32 2,363,042,700.42
VI ..Balance of cash and cash equivalents at the end of term 2,036,803,751.05 1,821,466,139.37
54
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
6. Cash Flow Statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 641,027,153.33 661,994,572.24
Tax returned
Other cash received from business operation 24,885,810.30 48,829,459.08
Sub-total of cash inflow 665,912,963.63 710,824,031.32
Cash paid for purchasing of merchandise and services 24,226,244.52 39,912,969.27
Cash paid to staffs or paid for staffs 56,174,438.87 55,205,264.99
Taxes paid 24,543,436.06 25,922,199.03
Other cash paid for business activities 444,674,884.91 402,529,977.62
Sub-total of cash outflow from business activities 549,619,004.36 523,570,410.91
Net cash generated from /used in operating activities 116,293,959.27 187,253,620.41
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 846,967,754.67 580,905,173.98
Net cash retrieved from disposal of fixed assets, intangible
3,700.00 195,540.00
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 432,250.00
Sub-total of cash inflow due to investment activities 846,971,454.67 581,532,963.98
Cash paid for construction of fixed assets, intangible assets
399,081,697.08 312,406,878.23
and other long-term assets
Cash paid as investment
Net cash received from subsidiaries and other operational
units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 399,081,697.08 312,406,878.23
Net cash flow generated by investment 447,889,757.59 269,126,085.75
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 1,845,000,000.00 400,000,000.00
55
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items Semi-annual of 2019 Semi-annual of 2018
Cash received from bond placing
Other financing –related ash received 291,000,000.00
Sub-total of cash inflow from financing activities 1,845,000,000.00 691,000,000.00
Cash to repay debts 1,197,780,000.00 50,100,000.00
Cash paid as dividend, profit, or interests 1,289,730,502.83 1,142,614,308.52
Other cash paid for financing activities 791,384.00 374,200,000.00
Sub-total of cash outflow due to financing activities 2,488,301,886.83 1,566,914,308.52
Net cash flow generated by financing -643,301,886.83 -875,914,308.52
IV. Influence of exchange rate alternation on cash and cash
-1,534,520.73 -2,267,884.63
equivalents
V.Net increase of cash and cash equivalents -80,652,690.70 -421,802,486.99
Add: balance of cash and cash equivalents at the beginning of
2,095,376,368.04 2,130,475,892.67
term
VI ..Balance of cash and cash equivalents at the end of term 2,014,723,677.34 1,708,673,405.68
56
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Semi-annual of 2019
Owner’s equity Attributable to the Parent Company
Other Equity instrument Minor Total of
Items Less: Other Common
share Capital Specialized Surplus Retained shareholders’ owners’
preferred Sustai Shares Comprehensive risk Other Subtotal
Capital Other reserves reserve reserves profit
stock nable in stock Income provision equity equity
debt
2,090,806 2,536,77 775,402,5 3,938,609,1 9,586,701 10,046,30
I.Balance at the end of last year 245,109,114.81 459,599,723.87
,126.00 4,965.31 61.35 36.59 ,904.06 1,627.93
Add: Change of accounting -11,353,413 -289,063. -289,063.
11,064,350.29
policy .48 19 19
Correcting of previous errors
Merger of entities under
common control
Other
II. Balance at the beginning of 2,090,806 2,536,77 775,402,5 3,927,255,7 9,586,412 10,046,01
256,173,465.10 459,599,723.87
current year ,126.00 4,965.31 61.35 23.11 ,840.87 2,564.74
25,795,5 -438,546,93 -393,813, -510,100,
III .Changed in the current year 18,938,083.74 -116,287,013.72
00.00 0.51 346.77 360.49
（1）Total comprehensive 736,486,112 755,424,1 862,523,8
18,938,083.74 107,099,691.57
income .30 96.04 87.61
（II）Investment or decreasing
of capital by owners
57
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi-annual of 2019
Owner’s equity Attributable to the Parent Company
Other Equity instrument Minor Total of
Items Less: Other Common
share Capital Specialized Surplus Retained shareholders’ owners’
preferred Sustai Shares Comprehensive risk Other Subtotal
Capital Other reserves reserve reserves profit
stock nable in stock Income provision equity equity
debt
1．Ordinary Shares invested by
shareholders
2．Holders of other equity instru
ments invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other
-1,175,033, -1,175,03 -1,398,41
（III）Profit allotment -223,386,705.29
042.81 3,042.81 9,748.10
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or -1,175,033, -1,175,03 -1,398,41
-223,386,705.29
shareholders) 042.81 3,042.81 9,748.10
4．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital
58
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi-annual of 2019
Owner’s equity Attributable to the Parent Company
Other Equity instrument Minor Total of
Items Less: Other Common
share Capital Specialized Surplus Retained shareholders’ owners’
preferred Sustai Shares Comprehensive risk Other Subtotal
Capital Other reserves reserve reserves profit
stock nable in stock Income provision equity equity
debt
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
4.Change amount of defined
benefit plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V). Special reserves
1. Provided this year
2．Used this term
25,795,5 25,795,50 25,795,50
（VI）Other
00.00 0.00 0.00
IV. Balance at the end of this 2,090,806 2,562,57 775,402,5 3,488,708,7 9,192,599 9,535,912
275,111,548.84 343,312,710.15
term ,126.00 0,465.31 61.35 92.60 ,494.10 ,204.25
59
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount in last year
In RMB
Semi -annual of 2018
Owner’s equity Attributable to the Parent Company
Minor Total of
Items
Other Equity instrument
Other Common shareholders
Less: Shares Specialized Surplus Retained owners’
share Capital preferred Capital reserves Comprehensive risk Other Subtotal
Sustainab Other in stock reserve reserves profit ’ equity
stock Income provision equity
le debt
2,090,806,12 544,821,13 3,550,110 9,023,071, 431,039,563. 9,454,110,
I.Balance at the end of last year 2,510,069,749.76 327,263,824.17
6.00 0.03 ,288.49 118.45 00 681.45
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current 2,090,806,12 544,821,13 3,550,110 9,023,071, 431,039,563. 9,454,110,
2,510,069,749.76 327,263,824.17
year 6.00 0.03 ,288.49 118.45 00 681.45
-278,945, -348,794,8 -426,915,2
III.Changed in the current year 3,946,375.55 -73,795,549.55 -78,120,441.
652.78 26.78 68.54
76
779,002,2 705,206,69 119,631,620.
（1）Total comprehensive income -73,795,549.55 824,838,31
46.98 7.43 90
8.33
（II）Investment or decreasing of
capital by owners
60
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi -annual of 2018
Owner’s equity Attributable to the Parent Company
Minor Total of
Items
Other Equity instrument
Other Common shareholders
Less: Shares Specialized Surplus Retained owners’
share Capital preferred Capital reserves Comprehensive risk Other Subtotal
Sustainab Other in stock reserve reserves profit ’ equity
stock Income provision equity
le debt
1．Ordinary Shares invested by shareho
lders
2．Holders of other equity instruments i
nvested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other
-1,057,94 -1,057,947 -197,752,062 -1,255,699
（III）Profit allotment
7,899.76 ,899.76 .66 ,962.42
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or -1,057,94 -1,057,947 -197,752,062 -1,255,699
shareholders) 7,899.76 ,899.76 .66 ,962.42
4．Other
(IV) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
61
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi -annual of 2018
Owner’s equity Attributable to the Parent Company
Minor Total of
Items
Other Equity instrument
Other Common shareholders
Less: Shares Specialized Surplus Retained owners’
share Capital preferred Capital reserves Comprehensive risk Other Subtotal
Sustainab Other in stock reserve reserves profit ’ equity
stock Income provision equity
le debt
2. Capitalizing of surplus reserves (or
to capital shares)
3．Making up losses by surplus
reserves.
4.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V). Special reserves
1. Provided this year
2．Used this term
3,946,375. 3,946,375.
（VI）Other 3,946,375.55
55 55
2,090,806,12 544,821,13 8,674,276, 352,919,121. 9,027,195,
IV. Balance at the end of this term 2,514,016,125.31 253,468,274.62 3,271,164
6.00 0.03 291.67 24 412.91
,635.71
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Semi-annual of 2019
Other Equity instrument
Other Total of
Items Share Less: Shares Specialized Surplus Retained
preferred Capital reserves Comprehensive Other owners’
capital Sustainabl Other in stock reserve reserves profit
stock Income equity
e debt
2,090,806 759,558,277 3,680,165,0 9,724,301
I.Balance at the end of last year 2,948,663,196.93 245,109,114.81
,126.00 .70 40.86 ,756.30
Add: Change of accounting -11,353,413 -289,063.
11,064,350.29
policy .48 19
Correcting of previous errors
Other
II.Balance at the beginning of 2,090,806 759,558,277 3,668,811,6 9,724,012
2,948,663,196.93 256,173,465.10
current year ,126.00 .70 27.38 ,693.11
-96,381,524 -51,647,9
III.Changed in the current year 25,795,500.00 18,938,083.74
.67 40.93
（I）Total comprehensive 1,078,651,5 1,097,589
18,938,083.74
income 18.14 ,601.88
(II) Investment or decreasing of
capital by owners
1．Ordinary Shares invested by s
hareholders
2．Holders of other equity instru
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi-annual of 2019
Other Equity instrument
Other Total of
Items Share Less: Shares Specialized Surplus Retained
preferred Capital reserves Comprehensive Other owners’
capital Sustainabl Other in stock reserve reserves profit
stock Income equity
e debt
ments invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
-1,175,033, -1,175,03
（III）Profit allotment
042.81 3,042.81
1.Providing of surplus reserves
2．Allotment to the owners (or -1,175,033, -1,175,03
shareholders) 042.81 3,042.81
3．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
4.Change amount of defined
benefit plans that carry forward
Retained earnings
64
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi-annual of 2019
Other Equity instrument
Other Total of
Items Share Less: Shares Specialized Surplus Retained
preferred Capital reserves Comprehensive Other owners’
capital Sustainabl Other in stock reserve reserves profit
stock Income equity
e debt
5．Other comprehensive income
carry-over retained earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term
25,795,50
（VI）Other 25,795,500.00
0.00
IV. Balance at the end of this 2,090,806 759,558,277 3,572,430,1 9,672,364
2,974,458,696.93 275,111,548.84
term ,126.00 .70 02.71 ,752.18
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount in last year
In RMB
Semi-annual of 2018
Other Equity instrument
Other Total of
Items Capital Less: Shares Specialized Surplus Retained
Share Capital preferred Comprehensive Other owners’
Sustainable Other reserves in stock reserve reserves profit
stock Income equity
debt
I.Balance at the end of last 2,090,806,12 2,921,957,981. 528,976,846 2,662,880, 8,531,88
327,263,824.17
year 6.00 38 .38 058.78 4,836.71
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning 2,090,806,12 2,921,957,981. 528,976,846 2,662,880, 8,531,88
327,263,824.17
of current year 6.00 38 .38 058.78 4,836.71
III.Changed in the current -15,203,84 -85,053,0
3,946,375.55 -73,795,549.55
year 8.83 22.83
（I）Total comprehensive 1,042,744, 968,948,
-73,795,549.55
income 050.93 501.38
(II) Investment or decreasing
of capital by owners
1．Ordinary Shares invested
by shareholders
2．Holders of other equity in
struments invested capital
66
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi-annual of 2018
Other Equity instrument
Other Total of
Items Capital Less: Shares Specialized Surplus Retained
Share Capital preferred Comprehensive Other owners’
Sustainable Other reserves in stock reserve reserves profit
stock Income equity
debt
3.Amount of shares paid and
accounted as owners’
equity
4．Other
-1,057,947, -1,057,94
（III）Profit allotment
899.76 7,899.76
1.Providing of surplus
reserves
2．Allotment to the owners -1,057,947, -1,057,94
(or shareholders) 899.76 7,899.76
3．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
67
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Semi-annual of 2018
Other Equity instrument
Other Total of
Items Capital Less: Shares Specialized Surplus Retained
Share Capital preferred Comprehensive Other owners’
Sustainable Other reserves in stock reserve reserves profit
stock Income equity
debt
4.Change amount of defined
benefit plans that carry
forward
Retained earnings
5．Other comprehensive
income carry-over retained
earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term
3,946,37
（VI）Other 3,946,375.55
5.55
IV. Balance at the end of this 2,090,806,12 2,925,904,356. 528,976,846 2,647,676, 8,446,83
253,468,274.62
term 6.00 93 .38 209.95 1,813.88
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
III .Company Profile
(1)History
1.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.<0}
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.<0}
22,250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co., Ltd.
(Group Co.) for holding and management without compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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, 2019，Registration capital:RMB2,090,806,126，Legal representative：Zheng Renfa,Registration
place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32, Zhujiang East Road,
Zhujiang New City, Tihe Disrtict , Guangzhou，The company has set up: Investment Development Dept, Security
Affairs Department, Management Department, Financial Management Department, Base construction Department,
Audit and Supervise Department, Affairs Department, Personnel Department , Party Work Department, Law
affairs Department , Project Office and Labour union etc.
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Deng
Xiaohua. Date of establishment: June 23, 2000. As of June 30, 2019,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. The State-owned assets Supervision and Administration Committee of the
Guangdong Provincial people's Government shall be the final controlling shareholder of the company.
（3）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Management fees and
70
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 and
Jingzhu Expressway Guangzhu
Section , investment in technological industries and provision of relevant consultation while investing in Shenzhe
n Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co.,
Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Ex
pressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangd
ong Guangle Expressway Co.,Ltd. and Guoyuan Securities Co., Ltd.
The financial statements have been authorized for issuance by the Board of Directors of the Group on August
28,2019.
As of June 30,2019,A total of 5 subsidiaries of the Company that were included in the scope of consolidation are
listed in Note 9 “The equity in other entities”. The scope of consolidation of the Company for the current year was
reduced by one subsidiary from the previous year. Refer to Note 8 “Changes of the scope of consolidated financial
statements” for details.
IV. Basis for the preparation of financial statements
1.Preparation basis
The financial statements of the Company have been prepared on basis of going concern in conformity with
Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises
issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33, the
Ministry of Finance revised order No.76) on February 15, 2006, and revised Accounting Standards (order 42 of
the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to
the Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China Securities
Regulatory Commission (CSRC).
According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises, the
Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the lower
of its book value at its classification date and fair value minus expected disposal costs. Where assets are impaired,
provisions for asset impairment are made in accordance with relevant requirements
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates are indicated as follows:
The Company and subsidiaries are mainly engaged in highway investment and operation management. The
Company formulates the specific accounting policies and accounting estimates for revenue recognition and other
transactions and events in accordance with the actual business operation characteristics of the Company and
subsidiaries, and provisions of the relevant accounting standard for business enterprises, please see Note 5.24
“Revenue” for details. The description of significant account judgment and estimates made by management,
please see Note 5.28 “Significant accounting judgment and estimates.”
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are recognized and measured in accordance with the regulations in the
Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial position,
business result and cash flow of the Company as of June 30, 2019. In addition, the financial statements of the
Company comply, in all material respects, with the revised disclosing requirements for financial statements and
the Compilation Rules for Information Disclosure by Companies Offering Securities to the Public
No.15—General Provisions on Financial Reports (2014 Revision) issued by China Securities Regulatory
Commission (CSRC) in 2014.
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim period refers to
the reporting period shorter than a complete annual period. The accounting period of the Company is the calendar
year from January 1 to December 31.
3.Operating cycle
The normal business cycle refers to the period from the purchase of assets for processing to the realization of cash
or cash equivalents. The Company takes 12 months as a business cycle and uses it as a criterion for liquidity
classification of assets and liabilities.
4.Standard currency for bookkeeping
Yuan (CNY) is the currency of the primary economic environment in which the Company and its domestic
subsidiaries operate. Therefore, the Company and its domestic subsidiaries choose CNY as their functional
currency. The Company adopts CNY to prepare its functional statements.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control
A business combination is a transaction or event that brings together two or more separate entities into one
reporting entity. Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
72
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
1.Business Combinations under the Same Control
A business combination involving enterprises under common control is a business combination in which all
of the combining enterprises are ultimately controlled by the same party or parties both before and after the
combination, and that control is not transitory.
For a business combination involving enterprises under common control, the party that, on the combination
date, obtains control of another enterprise participating in the combination is theabsorbing party, while that other
enterprise participating in the combination is a party being absorbed. Combination date is the date on which the
absorbing party effectively obtains control of the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being
combined at the combination date. The difference between the carrying amount of the net assets obtained and the
carrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to
the capital premium (or share premium) in the capital reserve. If the balance of the capital premium (or share
premium) is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to the
combination shall be recognized as an expense through profit or loss for the current period when incurred.
2. Business Combinations not under the Same Control
A business combination involving enterprises not under common control is a business combination in which
all of the combining enterprises are not ultimately controlled by the same party or parties both before and after the
business combination.
For a business combination not involving enterprises under common control, the party that, on the
acquisition date, obtains control of another enterprise participating in the combination is the acquirer, while that
other enterprise participating in the combination is the acquiree. Acquisition date is the date on which the acquirer
effectively obtains control of the acquiree.
For a business combination not involving enterprise under common control, the combined cost including the
sum of fair value, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities
issued by the acquirer. The intermediary expenses incurred by the acquirer in respect of auditing, legal services,
valuation and consultancy services, etc. and other associated administrative expenses attributable to the business
combination are recognized in profit or loss when they are incurred.
The transaction cost arose from issuing of equity securities, or liability securities shall be initially recognized
as equity securities or liability securities. The contingent consideration related to the combination shall be booked
as combination cost at the fair value at the acquisition date. If within the 12 months after the acquisition,
additional information can prove the existence of related information at the acquisition date and the contingent
consideration need to be adjusted, goodwill can be adjusted.
Combination cost of the acquirer’s interest and identifiable net assets of the acquirer acquired through the
business combination shall be measured by the fair value at the acquisition date. Where the costof combination
exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference shall be
recognized as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference shall be accounted for according to the following requirements: (i)
the acquirer shall reassess the measurement of the fair values of the acquiree’s identifiable assets, liabilities and
contingent liabilities and measurement of the cost of combination; (ii) if after that reassessment, the cost of
combination is still less than the acquirer’s interest in the fair values of the acquiree’s identifiable net assets, the
acquirer shall recognize the remaining difference immediately in profit or loss for the current period.
Where the temporary difference obtained by the acquirer was not recognized due to conformity with the
conditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional
73
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
information can prove the existence of related information at acquisition date and the expected economic benefits
on the acquisition date arose from temporary deductible difference by the acquiree can be achieved, relevant
income tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall be
recognized as the profit of the current period.
Apart from above, the differences shall be taken into profit or loss of the current period if the recognition of
deferred income tax assets is related to the combination.
For a business combination not involving enterprise under common control, which achieved in stages that
involves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance of
Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article 51 of “Accounting Standards for
Business Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion (see Note 4.5.2),
to judge the multiple exchange transactions whether they are the "package deal". If it belongs to the “package
deal” in reference to the preceding paragraphs of this section and the Notes described in 4.13 “long-term
investment” accounting treatment, if it does not belong to the “package deal” to distinguish the individual
financial statements and the consolidated financial statements related to the accounting treatment:
In the individual financial statements, the total value of the book value of the acquiree's equity investment
before the acquisition date and the cost of new investment at the acquisition date, as the initial cost of the
investment, the acquiree's equity investment before the acquisition date involved in other comprehensive income,
in the disposal of the investment will be in other comprehensive income associated with the use of infrastructure
and the acquiree directly related to the disposal of assets or liabilities of the same accounting treatment (that is,
except in accordance with the equity method of accounting in the defined benefit plan acquiree is remeasured net
changes in net assets or liabilities other than in the corresponding share of the lead, and the rest into the current
investment income).
In the combination financial statements, the equity interest in the acquiree previously held before the
acquisition date re-assessed at the fair value at the acquisition date, with any difference between its fair value and
its carrying amount is recorded as investment income. The previously-held equityinterest in the acquiree involved
in other comprehensive income and other comprehensive income associated with the purchase of the foundation
should be used party directly related to the disposal of assets or liabilities of the same accounting treatment (that is,
except in accordance with the equity method of accounting in the acquiree is remeasured defined benefit plans
other than changes in net liabilities or net assets due to a corresponding share of the rest of the acquisition date
into current investment income).
6.Methods for Preparing the Consolidated Financial Statements
（1）The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control.
Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its
operating activities. The scope of consolidation includes the Company and all of the subsidiaries. The subsidiary
is an enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant elements
involved in the control of the change, the Company will be re-evaluated.
（2） Preparation of the consolidated financial statements
The subsidiary of the Company is included in the consolidated financial statements from the date when the
control over the net assets and business decisions of the subsidiary is effectively obtained and excluded from the
date when the control ceases.
For a subsidiary disposed of by the Company, the operating results and cash flows before the date of
disposal (the date when control is lost) are included in the consolidated income statement and consolidated
74
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
statement of cash flows, as appropriate. For a subsidiary disposed of during the period, no adjustment is made to
the opening balance of the consolidated financial statements. For a subsidiary acquired through a business
combination not under common control, the operating results and cash flows from the acquisition (the date when
the control is obtained) are included in the consolidated income statement and consolidated statement of cash
flows, as appropriate; no adjustment is made to the opening balance and comparative figures in the consolidated
financial statements.
Where a subsidiary was acquired during the reporting period, through a business combination involving
enterprises under common control, the financial statements of the subsidiary are included in the consolidated
financial statements. The results of operations and cash flow are included in the consolidated balance sheet and
the consolidated income statement, respectively, based on their carrying amounts, from the date that common
control was established, and the opening balances and the comparative figures of the consolidated financial
statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of theCompany,
the Company makes necessary adjustments to the financial statements of the subsidiary based on the Company’s
own accounting period or accounting policies. Where a subsidiary was acquired during the reporting period
through a business combination not under common control, the financial statements were reconciled on the basis
of the fair value of identifiable net assets at the date of acquisition. Intra-Group balances and transactions and any
unrealized profit or loss arising from intra-Group transactions are eliminated in preparing the consolidated
financial statements.
Minority interest and the portion of the net profit or loss not attributable to the Company are presented
separately in the consolidated balance sheet within shareholders’/ owners’ equity and net profit. Net profit or loss
attributable to minority shareholders in the subsidiaries is presented separately as minority interest in the
consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders. of a subsidiary
exceeds the minority shareholders’ portion of the opening balance of shareholders’/equity of the subsidiary, the
excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment or
other reasons, the remaining equity investment is re-measured at its fair value at the date when control is lost. The
difference between 1) the total amount of consideration received from the transaction that resulted in the loss of
control and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in the
former subsidiary’s net assets immediately before the loss of the control is recognized as investment income for
the current period when control is lost. Other comprehensive income related to the former subsidiary's equity
investment, using the foundation and the acquiree directly related to the disposal of the same assets or liabilities
are accounted when the control is lost (i.e., in addition to the former subsidiary, which is remeasured at the net
defined benefit plan or changes in net assets and liabilities resulting from, the rest subsidiaries are transferred to
the current investment income). The retained interest is subsequently measured according to the rules stipulated in
the - “Chinese Accounting Standards for Business Enterprises No.2 - Long-term equity investment” or “Chinese
Accounting Standards for Business Enterprises No.22 - Determination and measurement of financial instruments”.
See Note 5.14 Long-term equity investments and Note 5.10 Financial instruments for details.
Where loss of control over a subsidiary result from multiple transactions (agreements), the assessment shall
be made as to whether the multiple agreements shall be viewed as a whole as a single transaction. Multiple
agreements giving rise to loss of control over a subsidiary is generally viewed as a whole as a single transaction if
the terms, conditions and economic implications of the multiple agreements satisfy one or more of the following
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conditions: 1) the agreements are entered into simultaneously or taking into account the implication of each other;
2) the business objective cannot be achieved without successful completion of all the agreements; 3)the
occurrence of oneagreement is dependent on the result of at least another one agreement; and/or 4) any one single
agreement is not recognized as economic, and the agreements as a whole is economic. Where multiple agreements
do not satisfy the conditions of being viewed as a single transaction, each agreement shall be treated and
accounted for in accordance with the provisions of disposal of long-term equity investments not resulting loss of
control (see Note 5.14.2.4) or loss of control due to disposal of shares or other events (see the previous paragraph).
Where multiple agreements satisfy the conditions of being viewed as a single transaction, each agreement shall be
treated and accounted for as a transaction which results in loss of control; differences between the consideration
for disposals prior to loss of control and the net assets proportionate to the shares disposed prior to loss of control
are recognized as other comprehensive income in the consolidated financial statements and transferred to profit or
loss at the time of loss of control.
7.Joint venture arrangements classification and Co-operation accounting treatment
A joint arrangement is an arrangement of which two or more parties have joint control. A joint arrangement
is either a joint operation or a joint venture, depending on the rights and obligation of the Company in the joint
arrangement. A joint operation is a joint arrangement whereby the Company has rights to the assets, and
obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the
Company has rights to the net assets of the arrangement.
The Company accounts for joint ventures using the equity method, see Note 5.14.2.2 for details.
The Company, a joint operator, recognizes in relation to its interest in a joint operation: (a) its assets,
including its share of any assets held jointly; (b) its liabilities, including its share of any liabilities incurred jointly;
(c) its revenue from the sale of its share of the output arising from the joint operation;(d)its share of the revenue
from the sale of the output by the joint operation; and (e)its expenses, including its share of any expenses incurred
jointly.
When the Company enters into a transaction with a joint operation in which it is a joint operator, such as a
sale or contribution of assets, the Company, prior to disposal of the assets to a third party by the joint operation,
recognizes gains and losses resulting from such a transaction only to the extent of the other parties' interests in the
joint operation. When there is evidence of a reduction in the net realizable value of the assets to be sold or
contributed to the joint operation, or of an impairment loss of those assets which is in line with provision
stipulated by CAS 8, those losses are recognized fully by the Company. When there is evidence of a reduction in
the net realizable value of the assets to be purchased or of an impairment loss of those assets, the Company shall
recognize its share of those losses.
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase), with strong
liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of
change.
9.Foreign Currency Transaction
1 Translation in foreign exchange transactions
Transactions denominated in foreign currencies are translated into the functional currency using the
transaction-date spot exchange rates. Where a transaction is conducted purely for the purpose of exchange one
currency into another currency, the exchange rate used to translate the foreign currency into the functional
currency is the exchange rate that is actually used for the currency exchange.
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2 Translation of foreign monetary currency and non-monetary foreign currency
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the
balance sheet date. All the exchange differences thus resulted are taken to profit or loss, except for ①those
relating to foreign currency borrowings specifically for construction and acquisition of qualifying assets, which
are capitalized in accordance with the principle of capitalization of borrowing costs, ②hedging accounting, the
exchange difference related to hedging instruments for the purpose of net oversea operating investment is
recorded in the comprehensive income till the date of disposal and recognized in profit or loss of the period;
exchange difference from changes of other account balance of foreign currency monetary items,
③available-for-trade is recorded into profit or loss except for amortized cost.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spot
exchange rate prevailing on the transaction date, and the amount denominated in the functional currency is not
changed. Non-monetary foreign currency items measured at fair value are translated at the spot exchange rate
prevailing at the date when the fair values are determined. The exchange difference thus resulted are recognized in
profit or loss for the current period or as capital reserve.
（3）Conversion method of Foreign currency Financial statements
Where the preparation of consolidated financial statements involves overseas operations, if any foreign
currency monetary item constitutes a net investment in overseas operations in essence, the exchange difference
resulting from the change of exchange rate shall be recognized as other comprehensive gains as the "conversion
difference of foreign currency statements"; when dealing with overseas operations, it shall be included in the
profits and losses of the current period of disposal.
Foreign currency financial statements operated abroad are converted into RMB statements by the following
methods: assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet
date; shareholder equity items are converted at the spot exchange rate at the time of occurrence, except for
"undistributed profit" items. The revenues and expenses in the income statement are converted with the spot
exchange rate on the transaction day. The undistributed profit at the beginning of the year is the undistributed
profit at the end of the year after the conversion of the previous year; the undistributed profit at the end of the year
is calculated and shown according to the items of the profit distribution after the conversion; the difference
between the total amount of assets and liabilities and shareholders' equity after the conversion is recognized as the
conversion difference of foreign currency statements and as other comprehensive income. When the foreign
operation is disposed and the control right is lost, the conversion balance which is presented under the
shareholders’ equities item in the balance sheet and arises from the conversion of foreign currency financial
statements related to this foreign operation will be transfered into the current profit and loss fully or in the foreign
operation proportion.
Cash flow of foreign currency shall be converted into spot exchange rate on the date of occurrence of cash
flow. The influence of exchange rate fluctuation on cash will be separately presented as an adjustment item in the
Cash Flow Statement.
The account at the beginning of current year and the actual amount of previous year shall be listed in
accordance with the translation differences statements of the previous year.
During the management of the entire owner's equity of the Company's operations abroad or the loss of
control over overseas operations due to the disposal of part of the equity investment or other reasons, the
converted balance of the foreign currency statements related to the overseas operations, which are attributable to
the owner's rights and interests of the parent Company, as shown below in the balance sheet, shall be transferred
to the current profit and loss.
During the management of part of the equity investment or other reasons leading to the reduction of the
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
proportion of holding overseas operating rights and interests but not losing control over overseas operations, the
balance of foreign currency statement conversion related to the part of overseas operation and disposal will be
attributed to the rights and interests of minority shareholders and shall not be transferred to current profits and
losses. During the management of part of the equity of an overseas joint venture or joint venture, the difference in
the conversion of foreign currency statements related to the overseas operation shall be transferred to the profits
and losses of the current period according to the proportion of disposing of the overseas operation.
10.Financial instruments
The Company recognizes the financial assets or liabilities when involved in financial instruments’
agreements.
（1）Classification, recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractual
cash flow of financial assets, the Company classifies financial assets into: financial assets measured in amortized
cost; financial assets measured at fair value and their's changes are included in other comprehensive income;
financial assets measured at fair value and their's changes are included in current profits and losses.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value, whose changes are included in current profits and losses, relevant transaction costs are directly included
in current profits and losses; For other types of financial assets, relevant transaction costs are included in the
initial recognition amount. Accounts receivable or notes receivable arising from the sale of products or the
provision of labor services that do not include or take into account significant financing components are initially
recognized by the Company in accordance with the amount of consideration that the Company is expected to be
entitled to receive.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements, that is, the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets, the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.
②Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow,
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculated
according to the actual interest rate method are included in current profits and losses.
In addition, the Company designated some non-trading equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company includes the relevant
dividend income of such financial assets in current profits and losses, and the changes in fair value in other
comprehensive gains. When the financial asset ceases to be recognized, the accumulated gains or losses
previously included in other comprehensive gains shall be transferred into retained income from other
comprehensive income, and not be included in current profit and loss.
③Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
at fair value and their's changes in financial assets other than financial assets of comprehensive income and
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition, the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets, the Company adopts fair value for
subsequent measurement, and includes changes in fair value into current profits and losses.
（2）Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.
.1 Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting, changes in fair value are included in current
profits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset, financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,
measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: ① The
contractual right to collect the cash flow of the financial asset is terminated; ② The financial asset has been
transferred, and almost all the risks and rewards in the ownership of the financial asset have been transferred to
the transferee; ③ The financial asset has been transferred, although the enterprise neither transfers nor retains
almost all the risks and rewards in the ownership of the financial asset, but it abandoned control of the financial
assets.
In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets
ownership nor waive to control these assets, relevant financial assets shall be recognized in accordance with the
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized
correspondingly. westbank The term "continuous involvement in the transferred financial asset" shall refer to the
risk level that the enterprise faces resulting from the change of the value of the financial asset.
If the overall transfer of the financial assets satisfies the derecognition criteria, the difference between the
book value of the transferred financial assets and the sum of the consideration received from transfer and
cumulative change in fair value previously recognized in other comprehensive income is accounted into the
current profit or loss.
In case that the partial transfer of financial assets meets de-recognition conditions, the book value of
financial assets transferred shall be allocated as per respective fair value between de-recognized or not
de-recognized parts, and the difference between the sum of the consideration received due to transfer with the
accumulated amount of fair value changes that is previously included in other comprehensive income and shall be
allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or
loss.
The Company shall determine whether almost all the risks and rewards of the ownership of the financial
assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee, the
confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the
financial asset have been retained, the confirmation of the financial asset shall not be terminated; if neither the
transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.
In case of remuneration, it shall continue to determine whether the enterprise has retained control over the assets
and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets
and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is
presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date. The fair value of financial instruments existing in an active
market is determined by the Company according to its quoted price in this market. westbank The quoted prices in
the active market refer to the prices, which are easily available from the stock exchanges, brokers, industry
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
associations, pricing service institutions and etc. at a fixed term, and which represent the prices at which actually
occurred market transactions are made under fair conditions.¨ In can a financial instrument does not exist in
active markets, its fair value shall be determined by the Company with assessment techniques. The value appraisal
techniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latest
market transaction upon their own free will, the current fair value obtained by referring to other financial
instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc. In
valuation, the Company adopts valuation techniques that are applicable in the current situation and supported by
sufficient data and other information to select input values consistent with the characteristics of assets or liabilities
considered by market participants in the transactions of related assets or liabilities, and give priority to the use of
relevant observable input values as far as possible. Unallowable values are used if the relevant observable input
values are not available or are not practicable.
（7）Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. The consideration received from issuing equity instruments, net of transaction costs,
are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to
holders of equity instruments are deducted from shareholders’ equity.
The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the
Company's equity instruments during the period of their existence shall be treated as profit distribution.
11. Impairment provision for financial assets
The Company requires to confirm that the financial assets lost by impairment are financial assets measured
by amortized cost, investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains, mainly including notes receivable, accounts receivable,
other receivables, creditor's rights investment, other creditor's rights investment and long-term receivables and etc.
In addition, provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss, the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).
Credit loss refers to the difference between the cash flow of all contracts discounted according to the original
real interest rate and the expected cash flow of all contracts receivable according to the contract, that is, the
present value of all cash shortages. Among them, the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.
The general method of measuring anticipated credit loss is whether the credit risk of the Company's
financial assets (including other applicable items such as contract assets, similarly hereinafter) has increased
significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly
since the initial recognition, the Company shall measure the loss preparation according to the amount equivalent
to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial
recognition, the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information,
including forward-looking information, when evaluating expected credit losses.
Assuming that their credit risk has not increased significantly since the initial recognition, the Company may
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial
instruments with low credit risk on the balance sheet date.
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition, the credit risk of the
financial asset is significantly increased. Except for special circumstances, the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk, such as
tthe receivables in dispute with the other party or involving litigation and arbitration, and receivables that has been
proved that the debtor may not be able to fulfill the obligation of repayment, etc.
In addition to the financial assets that assess credit risk individually, the Company shall divide financial
assets into different groups based on common risk characteristics, and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration, the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision, the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision, the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
①Receivable
In regard to receivables without significant financing components, the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.
In regard to accounts receivable with significant financing components, the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.
In addition to the accounts receivable that assesses the credit risk individually, receivables are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1 This portfolio is characterized by the aging of receivables as a credit risk.
For the above portfolio 1, the measurement method of bad debts reserve is the aging analysis method,
specifically as follows
Aging Proportion （%） Other receivable proportion（%）
Within 1 year（Including 1 year） 0 0
1-2 years 10 10
2-3 years 30 30
3-4 years 50 50
4-5 years 90 90
Over 5 years 100 100
②Other receivable
The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration, based on whether the credit risk of other receivables has increased significantly
since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually,
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
they are divided into different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1 This portfolio is a collection of various deposits, advances, pledges and other
receivables in daily activities.
Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business
activities.
Protfolio 3 Other receivables other than the above portfolio.
For portfolios 1 and 2 above, no provision for bad debts is generally made unless there is evidence of loss of
assets. For portfolio 3 above, the provision for bad debts is the same as portfolio 1 for receivables.
③ Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration, based on whether the credit risk has increased significantly since the initial recognition. The
Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
12.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
1.Investories class: The company’s stocks can be classified as: raw materials, etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the
weighted averages method or the first-in first-out method.
3. Determination of net realizable value of inventories and impairment allowance for inventories
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable value is
determined on the basis of clear evidence obtained and takes intoconsideration the purpose of holding inventories
and effect of post balance sheet events.
At the balance sheet date, inventories are measured at the lower of the cost and net realizable value. If the
net realizable value is below the cost of inventories, a provision for decline in value of inventories is made. The
provision for inventories decline in value is normally determined by the difference of the cost of the individual
item less its realizable value. For large quantity and low-value items of inventories, provision for decline in value
is made based on categories of inventories.
For items of inventories relating to a product line that are produced and marketed in the same geographical
area, have the same or similar end users or purposes, and cannot be practicably evaluated separately from other
items in that product line provision for decline in value is determined on an aggregate basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused
inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher
than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss
for the period.
4. Physical inventories are managed by the perpetual inventory taking system.
5. Amortization of low-value consumables and packaging materials.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Low-value consumables and packaging materials are fully amortized at the time of issuance.
13. Held-for-sale assets and disposal group
The Company classify a non-current asset or disposal group as held for sale if its carrying amount will be
recovered principally through a sale transaction rather than through continuing use. For this to be the case, the
following conditions shall be met: a) the asset (or disposal group) must be available for immediate sale in its
present condition subject to terms that are usual and customary for sales of such assets or disposal groups; b) the
Company has made the resolution on the disposal plan and must be committed to a plan to sell the asset (or
disposal group); c) the sale is expected to be completed within one year from the date of classification. A disposal
group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and
liabilities directly associated with those assets that will be transferred in the transaction. The group shall include
goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been
allocated in accordance with the requirements of Accounting Standard for Business Enterprises No. 8 –
Impairment of assets.
The Company measure a non-current asset or disposal group classified as held for sale at the lower of its
carrying amount and fair value less costs to sell on initial recognition and subsequent remeasurement on the
balance sheet date. An impairment loss is recognized when the carrying amount is higher than the fair value less
costs to sell, and allowance for impairment is recognized accordingly. For the disposal group, the recognized
impairment loss on assets is offset against the carrying amount of the goodwill in the disposal group, and then
reduced in proportion of the book value of the non-current assets applicable to "Accounting Standard for Business
Enterprises No. 42 - Non-current Assets Held for Sale, Disposal Group and Discontinued Operations (hereinafter
referred to as "held for sale accounting principle") measurement requirements. The Company shall recognize a
gain during the period for any subsequent increase in fair value less costs to sell of an asset, but not in excess of
the cumulative impairment loss that has been recognized after the reclassification to non-current assets held for
sale. The book value of assets in the disposal group is increased proportionately according to the proportion of the
book value of each non-current asset except for goodwill. Impairment loss recognized before the reclassification
to non-current assets held for sell shall not be recovered.
Non-current asset or non-current asset in the disposal group classified as held for sale are not subject to
depreciation or amortization. The interest and other expenses on liabilities held in the disposal group for sale are
continuously recognized.
Non-current assets or disposal group that no longer meet the conditions of non-current asset held for sell
shall be removed from the category, and shall be measured at the lower of the following: (a) The carrying amount
before classification as held for sale after adjustment of depreciation, amortization or impairment that should be
recognized if it is not classified as non-current assets held for sell; (b) recoverable amount.
.14. Long-term equity investments
Long-term equity investments in this section refer to the long-term investment through which the Company
has control, joint control, or material influence on the investee. Long-term equity investments through which the
Company does not have control, joint control or material influence on the investee shall be recognized as
available-for-sale financial assets or financial assets measured by fair value with changes in fair value recognized
in profit or loss. See 10 for details.
Joint control is the contractually agreed sharing of control over economic activity and exists when the
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strategic financial and operating decisions relating to the activity require the unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy decisions of
the investee but is not control or joint control over those policies.
（1）Determination of Investment cost
Long-term equity investment acquired through business combination under common control are measured at
the acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller's
consolidated financial statements. The difference between the initial cost and cash paid, non-monetary assets
transferred, and liabilities assumed by is adjusted to capital reserves, and to retained earnings if capital reserves
are insufficient. If the consideration is paid by issuing equity instruments, the initial cost is measured at the
acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller's
consolidated financial statements, with the face value of the equity instruments issued recognized as share capital
and the difference between the initial cost and the face value of the equity instruments issued adjusted to capital
reserves, and to retained earnings if capital reserves is insufficient. For business combination involving entities
under common control achieved through multiple transactions (acquisition in stages), the multiple agreements are
assessed to determine whether they should be viewed as a lump-sum purchase. Where multiple agreements of an
acquisition in stages are viewed as a lump-sum purchase, the transactions are viewed as one transaction that
acquires the control power. Where multiple agreements of an acquisition fail the conditions of a lump-sum
purchase, long-term equity investment acquired through business combination under common control are
measured at the acquirer's share of the combination date book value of the acquiree's net equity in the ultimate
controller's consolidated financial statements. The difference between the initial cost, and the book value of the
long-term equity investment before combination date and considerations paid to acquire new shares on the
combination date, is adjusted to capital reserves, and to retained earnings if capital reserves are insufficient.
Long-term equity investment acquired through business combination not under common control is measured
at combination cost on the combination date. The combination cost includes assets contributed by the purchaser,
liabilities incurred or assumed by, and fair value of the equity instruments issued by the acquirer. For business
combination involving entities not under common control achieved through multiple transactions (acquisition in
stages), the multiple agreements are assessed to determine whether they should be viewed as a lump-sum purchase.
Where multiple agreements of an acquisition in stages are viewed as a lump-sum purchase, the transactions are
viewed as one transaction that acquires the control power. Where multiple agreements of an acquisition fail the
conditions of a lump-sum purchase, long-term equity investment acquired through business combination not under
common control are measured at the sum of the original book value of the equity investment on the investee and
the new investment cost, which is regarded as the new initial cost of the long-term investment when transferred to
cost method. If the original equity is measured by the equity method, not accounting treatment is applied to
relevant other comprehensive income temporarily.
The audit, legal services, valuation, and other directly associated administrative expenses incurred by the
acquirer are recognized in profit or loss on the transaction dates.
Long-term equity investments acquired not through business combination are measured at cost onnitial
recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair value
of equity instrument issued, the contract price, the fair value or book value of the assets given away in the case of
non-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost of
acquisition of a long-term equity investment acquired not through business combination also includes all directly
associated expenses, applicable taxes and fees, and other necessary expenses. When the Company increase
investment to have material influence or joint control, but not control over the investee, long-term investments are
measured at the sum of the fair value of initial equity investment and cost of new investment as defined in
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CAS22-Recognition and Measurement of Financial Assets.
（2）Subsequent measurement and recognition and measurement of gain or loss
Where a long-term equity investment gives the Company either joint control or significant influence over
the respective investee, the investment is subsequently measured using the equity method. Where a long-term
equity investment gives the Company control over the respective investee, the investment is subsequently
measured at cost.
① Long-term equity investments measured at cost
A long-term equity investment is measured at the cost of investment, excluding declared cash dividends or
profit pending distribution included in the consideration paid. Investment income for the relevant period from a
long-term equity investment measured at cost is recognized as the Company's share of the cash dividends or profit
declared for distribution by the investee.
② Long-term equity investments measured using the equity method
When the cost of a long-term equity investment measured using the equity method on initial recognition
exceeds the Company's share of the fair value of the respective investee's net identifiable assets, no adjustment is
made to the cost of the investment for the excess. When the Company's share of the fair value of an investee's net
identifiable assets exceeds the cost of the respective long-term equity investment measured using the equity
method on initial recognition, adjustment is made to the cost of the investment for the difference and the
difference is carried to profit or loss for the period during which the investment is recognized.
Investment income or loss and other comprehensive income for the relevant period from a long-term equity
investment measured using the equity method is measured at the Company's share of the net profit or loss and
other comprehensive income of the respective investee for the relevant period, and the book value of long-term
equity investments is adjusted accordingly. If the investee declares profit distribution or cash dividends, long-term
equity investments are reduced by the Company’s share of declared profit distribution or cash dividends in the
investee. Long-term equity investments will be adjusted, and capital reserves are recognized with variations other
than net profit or loss, other comprehensive income, and profit distribution. When computing the Company's share
of the net profit or loss of the investee for the relevant period, net profit or loss of the investee for the relevant
period is adjusted, if necessary, for the fair value of the investee's identifiable assets and identifiable liabilities on
acquisition and the Company's accounting policies and accounting period. Investment income and other
comprehensive income is recognized accordingly. The computation of the Company's share of the net profit or
loss of the investee for the relevant period also eliminates unrealized profit and loss arising from transactions
between the Company and the investee (a joint venture or associate, whichever is applicable) and contributing or
selling assets to the investee which forms an operation, to the extent of the Company's share calculated by the
Company's shareholding in the investee for the relevant period, except for the unrealized loss resulted from
impairment of transferred assets. When contributing assets to the joint venture or associate by the Company forms
an operation, and the investor acquires the long-term equity investment without control, long-term equity
investments are measured at fair value of the contributed operations, with the difference between initial
investment cost and book value of the contributed operation fully recognized in profit or loss for the period. When
selling assets to the joint venture or associate by the Company forms an operation, the difference between
considerations received and book value of the operation is fully recognized in profit and loss for the period. When
purchasing assets from the joint venture or associate by the Company belongs to an operation, income and losses
are fully recognized as specified in CAS20-Business Combination. When the Company's share of an investee's net
loss exceeds the sum of the carrying amount of the respective long-term equity investment measured using the
equity method and other investments in the investee, the carrying amount of the long-term equity investment and
other investments in the investee is reduced to zero. If the Company is obliged to share loss of the investee after
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its long-term equity investment and other investments have been reduced to zero, an investment loss and provision
is recognized to the extent of the estimated obligation. If the investee reports profits in subsequent periods, the
Company only recognizes its share of profit after its share of profit equals the share of loss not recognized.
For long-term equity investments in associates and joint ventures which had been held by the Company
before its first time adoption of new accounting standards, where the initial investment cost of a long-term equity
investment exceeds the Company’s share in the investee’s net assets at the time of acquisition, the excess is
amortized and is recognized in profit or loss on a straight-line basis over the original remaining life.
③ Acquisition of minority interests
If minority interests in an investee is acquired by the Company, during the Company's preparation of the
consolidated financial statements, the difference between the Company's cumulative share of the investees net
assets calculated on the basis of the new shareholding in the investee from the acquisition date (or combination
date) and the Company's investment in the investee following the minority interest acquisition is adjusted to
capital reserves, and to retained earnings if capital reserves is insufficient.
④Disposal of long-term equity investments
On the consolidated financial statements, when partly disposal of a long-term equity investment in a
subsidiary which does not cause loss of control over the subsidiary, the difference between the consideration for
disposal and the net identifiable asset given away proportionate to the disposed shares in the subsidiary is
recognized in equity; partly disposal of a long-term equity investment in a subsidiary which causes loss of control
over the subsidiary is accounted for in accordance with Note 5.6.2.
The difference between the consideration for disposal of long-term equity investments and the carrying
amount of the long-term equity investments disposed of is recognized in profit or loss for the period during which
the investments are disposed of.
When a long-term equity investment measured using the equity method is disposed, and the residual equity
after disposal is still measured using equity method, the respective cumulative other comprehensive income
recognized in equity proportionate to the disposed of investment shall adopt the same accounting treatment as the
investee disposes of relevant assets or liabilities directly. Movement in investee's equity other than changes in net
profit or loss, other comprehensive income, and profit distribution is recognized in profit or loss proportionally.
When a long-term equity investment measured using the cost method is disposed and the residual equity
after disposal is still measured using cost method, other comprehensive income, which is recognized by equity
method or recognition and measurement applicable to financial instruments prior to the Company's acquisition of
control over the investee, shall adopt the same accounting treatment as the investee disposes relevant assets or
liabilities directly on the date of loss of control, and profit or loss is recognized proportionally. Movement in
investee's equity other than changes in net profit or loss, other comprehensive income, and profit distribution is
recognized in profit or loss proportionally. Where the Company's control over an investee is lost due to partial
disposal of investment in the investee and the Company continues to have significant influence over the investee
after the partial disposal, the investment is measured by equity method in the Company's separate financial
statements; where the Company's control over an investee is lost due to partial disposal of investment in the
investee and the Company ceases to have significant influence over the investee after the partial disposal, the
investment is measured in accordance with the recognition and measurement principles applicable to financial
instruments in the Company's separate financial statements and the difference between the fair value and book
value of the remaining investment at the date of loss of control is recognized in profit or loss. Cumulative other
comprehensive income relevant to the investment, which is recognized by equity method or recognition and
measurement principles applicable to financial instruments prior to the Company's acquisition of control over the
investee, shall adopt the same accounting treatment as the investee disposes relevant assets or liabilities directly
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on the date of loss of control, The investee's equity movement other than changes in net profit or loss, other
comprehensive income and profit distribution, as a result of accounting by equity method, is recognized in profit
or loss when control is lost. Where the remaining investment is measured by equity method, the afore-mentioned
other comprehensive income and other equity movement are recognized in profit or loss proportionate to the
disposal; Where the remaining investment is measured in accordance with the recognition and measurement
principles applicable to financial instruments, the afore-mentioned other comprehensive income and other equity
movement are fully recognized in profit or loss.
Where the Company's joint control or significant influence over an investee is lost due to partial disposal of
investment in the investee, the remaining investment in the investee is measured in accordance with the
recognition and measurement principles applicable to financial instruments, the difference between the fair value
and the book value of the remaining investment at the date of loss of joint control or significant influence is
recognized in profit or loss. Cumulative other comprehensive income relevant to the investment, which is
recognized by equity method or recognition and measurement principles applicable to financial instruments prior
to the Company's acquisition of control over the investee, shall adopt the same accounting treatment as the
investee disposes relevant assets or liabilities directly on the date of loss of control, The investee's equity
movement other than changes in net profit or loss, other comprehensive income and profit distribution, as a result
of accounting by equity method, is recognized in profit or loss when control is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple disposals
can be viewed as a lump-sum transaction, the multiple disposals are accounted for one single transaction which
results in the Company's loss of control over the investee. Difference between the consideration received and the
book value of the investment disposed at each time of disposal is recognized in other comprehensive income and
reclassified in full to profit or loss at the period when control over the investee is lost.
15..Investment Property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings. Investment
property is initially measured at cost. Subsequent expenditures related to an investment real estate are likely to
flow about the economic benefits of the asset, and its cost can be measured reliably, is included in the cost of
investment real estate. Other subsequent expenditure in the profit or loss when it incurred.
The Group uses the cost model for subsequent measurement of investment property, and in accordance with
the depreciation or amortization of buildings or land use rights policy.
Investment property impairment test method and impairment accrual method described in Note 20
“Non-current and non-financial assets impairment."
Occupied real estate for investment property or investment property is transferred to the owner-occupied real
estate or stock conversion as the recorded value after the conversion, according to the book value before the
conversion.
Investment property change into the Owner-occupied real estate, since the change of date for the investment
property, is transferred to fixed assets or intangible assets. Change the owner-occupied property held to earn
rentals or for capital appreciation, since the change of date, the fixed assets or intangible assets to investment
property. Conversion occurs when converted to investment property using the cost model, as the book value
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before the conversion of the recorded value after the conversion; converted to investment property measured at
fair value model, the fair value of the conversion date as the recorded value after conversion.
Derecognized, when the investment property is disposed of or permanently withdrawn from use and the
expected economic benefits, cannot be obtained from the disposal of investment property. Proceeds on disposal of
investment property is sold, transferred, retired or damaged through profit or loss after deducting the book value
and related taxes.
16.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management,
and operation with service life of more than one year.
The fixed assets are recognized only after relevant economic interests probably flow into the Company and
costs are reliably measured. The initial calculation will be made for the fixed assets based on the cost and the
influence of expected disposal cost.
Expected useful Residual rate Annual depreciation
Type Depreciation method
life(Year) （%） rate(%)
Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to Sanbao
Working flow basis 40 years 0%
Section
Fokai Expressway-Sanbao to Shuikou
Working flow basis 30 years 0%
Section
Jingzhu Expressway Guangzhu Section Working flow basis 30 years 0%
House Building The straight-line method 20-30 years 3%-10% 3%-4.85%
Machine Equipment The straight-line method 10 years 3%-10% 9%-9.7%
Transportation Equipment The straight-line method 5-8 years 3%-10% 11.25%-19.4%
Electric Equipment and other The straight-line method 5-15 years 3%-10% 6%-19.4%
（2）Depreciation method
The Company's fixed assets of highways and bridges are depreciated within the approved charging period by
workload method from the next month after reaching the intended usable state. The specific method is as follows:
calculate the depreciation amount of each standard traffic flow based on the predicted total standard traffic flow or
book value of roads and bridges within the tolling period, and then calculate and withdraw depreciation amount
according to the actual standard traffic flow during each accounting period. Fixed assets other than highways and
bridges are depreciated within the service life by the method of average life from the next month when they reach
the intended usable state.
Expected net residual value of fixed assets is the balance of the Company currently obtained from the
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disposal of the asset less the estimated costs of disposal amount, assuming the asset is out of useful life and state
the expected service life in the end.
(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 21 of Important Accounting Policies and Accounting
Estimates in Notes 5 of Financial Statements”.
（4）Recognition and measurement of fixed assets held under financial lease
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an
asset. The title may or may not eventually be transferred. Fixed assets that are held under finance leases shall be
depreciated by applying the same policy as that for the fixed assets owned by the Company. If it can be reasonably
determined that the ownership of the leased assets can be obtained at the end of the lease period, the leased assets
are depreciated over their useful lives; otherwise, the leased assets are depreciated over the shorter of the lease
terms and the useful lives of the leased assets.
（5） Other notes
A fixed asset is recognized only when the economic benefits associated with the asset will probably flow to
the Company and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset
that meets the recognition criteria shall be included in the cost of the fixed asset, and the carrying amount of the
component of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall be
recognized in profit or loss in the period in which they are incurred.
The revenue from selling or transferring or disposing of a fixed asset is booked into profit and loss after
deduction of carrying value and related tax.
The Company conducts a review of useful life, expected net realizable value and depreciation methods of
the fixed asset at least on an annual base. Any change is regarded as a change in accounting estimates.
17.Construction-in process
The cost of construction in progress is measured at the actual expenditure incurred, including construction
expenditure and capitalization of borrowing costs and other applicable costs incurred prior to the completion. An
item of construction in progress is reclassified to fixed asset upon completion.
See Note 5.21 for details of assessment for impairment of construction in progress and impairment
allowance for construction in progress.
18.Borrowing cost
Borrowing costs include interests on loans, amortization of discount or premium, ancillary expenses, and
foreign exchange difference on loans denominated in foreign currencies. Borrowing costs directly associated with
the acquisition of construction of a qualifying asset are eligible for capitalization. Capitalization starts when
expenditure on the qualifying asset is incurred, borrowing costs are incurred, or production or construction of the
qualifying asset for its intended use or sales is started, whichever is later. Capitalization stops when the qualifying
assets reach the condition of its intended use or sales. All other borrowing costs are recognized in profit or loss for
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the period during which they are incurred.
When a loan is taken out specifically for the construction of a particular qualifying asset, the interest
expense capitalized for a particular period is the residual amount after deducting interest income from unused
facilities for the period and/or income from temporary investment of the unused facilities for the period from the
interest expense incurred for the period. Borrowing costs on general purpose financing are calculated by
multiplying the weighted average of the excess of cumulative capital expenditure over the designated financing
facilities with the capitalization rate of general purpose financing. The capitalisation rate of general purpose
financing is calculated as the weighted average of the interest rates of general purpose financing.
Foreign exchange difference on designated financing denominated in foreign currencies incurred during the
capitalization period is wholly capitalized. Foreign exchange difference on general purpose financing
denominated in foreign currencies is recognized in profit or loss for the period during which it is incurred.
A qualifying asset is an item of fixed assets, investment property, inventories, etc. which requires a
substantial period of time for the construction or production for its intended use of sales.
If the construction or production of a qualifying asset stops for a period longer than three months,
capitalization of borrowing costs is suspended until the construction or production is resumed.
19.Intangible assets
(1) Pricing method, useful life and impairment test
An intangible asset is an identifiable non-monetary asset without a physical form which is owned or control
by the Company. Intangible assets are measured at cost on initial recognition. If it is probable that economic
benefits associated with expenditure directly associated with an item of intangible assets will flow to the Company
and the cost of the expenditure can be reliably measured, the expenditure is measured as part of the intangible
asset's initial cost; all other expenditure is recognized in profit or loss for the period during which it is incurred.
Land use rights acquired are generally recognized as intangible assets. In the case of a self-constructed
building, the costs of acquiring the respective land use right(s) and the costs of building construction are
separately recognized and measured as intangible assets and fixed assets respectively. In the case of a purchased
building, the costs of acquisition are allocated to land useright(s) and building; if the reasonable allocation is
impossible, the costs of acquisition as a whole are recognized and measured as fixed assets. For an item of
intangible assets which is with a finite useful life, the residual amount after deducting its estimated residual value
and previously recognized impairment from its cost is amortized over its estimated remaining useful life using the
straight-line method starting from the month in which it reaches the conditions of its intended use of sales.
Intangible assets with infinite useful life are not amortized.
Useful lives of intangible assets are a review on each balance sheet date. If circumstances indicate that there
is a change in the useful life of an item of intangible assets with a finite useful life, a change in accounting
estimates is carried out. If circumstances indicate that the useful life of an item of intangible assets with infinite
useful life becomes finite, the useful life of the intangible asset is estimated, and the intangible asset is amortized
accordingly.
See Note 5.21 for details of assessment for impairment of intangible assets and impairment allowance for
intangible assets.
（2） Research and development expenditure
A research and development project is divided into research stage and development stage. Expenditure
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incurred during the research stage is recognized in profit or loss for the period during which it is incurred.
Expenditure incurred during the development stage is recognized as intangible assets if all of the following
conditions are satisfied:
a. it is technically feasible to complete the intangible asset so that it can be used or sold;
and b. the Company has clear intention to complete the intangible asset and to use it or sell it;
and c. it is evidential that the intangible asset will generate economic benefits either by selling the
intangible asset itself or the goods produced by the intangible asset or by using it internally;
and d. there are sufficient technical, financial and other resources to complete the intangible asset and the
Company is able to use it or sell it,
and e. expenditure incurred in the development stage of the intangible asset can be reliably measured.
Where a research and development project cannot be separated into the research stage and development
stage, all expenditure incurred for the project is recognized in profit or loss for the period during which it is
incurred.
20. Long-term amortizable expenses
An item of deferred charges is an expense incurred which brings economic benefits to the Company for a
period exceeding one year starting from the transaction date. An item of deferred charges is amortized over its
estimated useful life using the straight-line method.
21.Impairment of Long-term assets
Non-current non-monetary assets, such as fixed assets, construction in progress, intangible assets with finite
useful life, investment property measured by cost, and long-term equity investments in subsidiaries, joint ventures,
and associates, are assessed for impairment on each balance sheet date. If circumstances on a balance-sheet date
indicate that a non-current non-monetary asset is impaired, the recoverable amount of the asset is estimated. The
recoverable amounts of goodwill, intangible assets with infinite useful live and intangible assets which have not
yet reached the conditions of their intended use or sales are estimated at least once a year regardless of whether
there is an indication of impairment.
If the carrying amount of a non-current non-monetary asset exceeds its estimated recoverable amount, the
excess of the carrying amount over the estimated recoverable amount is recognized as impairment allowance, and
an impairment loss of the same amount is recognized. The estimated recoverable amount of an asset is the higher
of the residual amount after deducting disposal expense of the asset from its fair value and the present value of its
future cash flows. Where there is a sales contract for an asset, and the contract is entered into for an arm's length
transaction, the fair value of the asset is the contract price; where there isn't a sales contract for an asset, but there
is an active market for it, the fair value of the asset is price offered by the buyer; where there is neither a sales
contract nor an active market for an asset, the fair value of the asset is the best estimate based on all available
information. The disposal cost of an asset includes legal expenses, applicable taxes and fees and transportation
costs directly associated with the asset's disposal and all direct costs necessary to bring the asset to its sellable
condition. The present value of an asset's future cash flows is calculated by multiplying the cash flows arising
from the continual use of the asset and its disposal at an appropriate discount rate. An impairment allowance is
generally calculated on the basis of individual assets. If it is not possible to estimate the recoverable amount of an
individual asset, the recoverable amount of a cash-generating unit to which the asset belongs is estimated. A
cash-generating unit is the smallest combination of assets that are capable of cash flow generation. Goodwill
separately presented on the (consolidated) financial statements is allocated to cash-generating units or groups of
units that are expected to benefit from the synergy of business combination for impairment testing. Where the
recoverable amount a cash-generating unit (or group of units) is lower than its carrying amount, an impairment
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loss is recognized.
The impairment loss is firstly allocated to the goodwill allocated to the unit (or group of units) and then to
individual assets pro rata on the basis of the carrying amount of each asset in the unit (or group of units) The
impairment loss recognized in accordance with this section is irreversible in subsequent periods.
22. Employee Benefits
（1）Accounting methods of short-term benefits
Short-term employee benefits include wages, bonuses, allowances and subsidies, welfare, health insurance,
maternity insurance, work injury insurance, housing funds, labor union funds, employee education funds,
non-monetary benefits etc. Short-term employee benefits are recognized as liabilities and profit or loss account or
the costs associated with the asset during the accounting period when employees actually provide services. The
non -monetary benefits are measured at fair value.
(2) Accounting methods for post-employment benefits Post-employment benefits include defined contribution
plans and defined benefit plans. Defined contribution plan which includes the basic pension, unemployment
insurance and annuities shall be recognized as cost of related assets or profit or loss.
(3) Accounting Treatment Method of Demission Welfare
When the Company terminates the labor relationship with employees prior to the employment contracts, or
encourages employees to accept voluntary redundancy compensation proposals in this company, a provision shall
be recognized for the compensation arising from the termination of employment relationship with employees at
the time when the Company cannot unilaterally withdraw layoff proposal termination benefits provided due to
termination of employment or the Company ensures the costs related to the payment for termination benefits
related to the restructuring, which one is early to confirm employee benefits liabilities, and recorded as profit or
loss. However, if termination benefits cannot be fully paid within twelve months of the reporting date the liability
shall be processed in accordance with other long-term employee benefits.
Retirement plan adopts the same principles as the termination benefits. The salaries and insurance to be
paid from the date when employees stop providing services to the date of normal retirement shall be recognized in
profit or loss (termination benefits) when satisfying the requirements of a provision.
（4）Other long-term employee benefits
Other long-term employee benefits provided by the Company to employees that are in line with defined
contribution plans shall adopt the accounting treatment in accordance with defined contribution plans, otherwise
the accounting treatment of defined benefit plans.
23.Estimated liabilities
A contingent liability is recognized as provision if all or the following conditions are satisfied:
a. it is a present obligation assumed by the Company;
and b. it is probable that the fulfillment of the obligation will cause economic benefit flows from the
Company;
and c. the amount of the obligation can be reliably measured.
A provision is measured on a balance-sheet date as the best estimate of the amount that is required for the
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
fulfillment of the present obligation after considering of the risks and uncertainty associated with the respective
contingent events and the time value of money.
If the amount required for settlement of a provision is wholly or partly reimbursed by a third party, the
reimbursement is recognized separately as an asset to the extent of the carrying amount of the provision if it is
probable that the reimbursement becomes receivable.
(1) Loss contract
Loss contract is a contract in which the cost of performing contractual obligations inevitably exceeds the
expected economic benefits. Where the pending contract becomes a loss contract, and the obligations arising from
the loss contract meet the recognition conditions of the above-mentioned expected liabilities, the part of the
expected loss of the contract exceeding the recognized impairment loss of the underlying asset of the contract (if
any) shall be recognized as the expected liability.
(2) Restructuring obligations
For a restructuring plan with detailed, formal and public announcement, the amount of the estimated
liabilities is determined according to the direct expenditure related to the restructuring, subject to the above
conditions for confirmation of the estimated liabilities.
24. Revenues
Whether the Company needs to comply with the disclosure requirements for specific industries
No
Whether implemented new revenue guidelines?
□ Yes √ No
The company’s incomes mainly include the toll service revenues and the services provision.
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
(2) Provision of labor service
Incomes from labors services that start and complete within the same fiscal year shall be recognized when
the services are finished. If the beginning and completion of labor services belong to different fiscal years, the
Company shall, on the balance sheet date, recognize the related labor income by the percentage of completion
method, provided that the result of the labor service transaction can be reliably estimated. When the following
conditions can be satisfied, the results of the transaction can be reliably estimated: ① the total income and total
cost of labor services can be reliably measured; ② the economic benefits related to the transaction can flow into
the enterprise; ③ the degree of completion of labor services can be reliably determined.
The income from provision of labor services shall be determined as follows in case the result of the provided
labor service transaction cannot be reliably estimated on the date of the Balance Sheet:
① If the labor cost already incurred is expected to be compensated, the income from the service shall be
recognized according to the amount of the labor cost already incurred, and the labor cost shall be carried over at
the same amount.
If the incurred labor cost is not expected to be compensated, the incurred labor cost shall be included in the
profits and losses of the current period, and the income from the provision of labor service shall not be
recognized.
If a contract entered into by the Company and a counterparty involves both sales of goods and rendering of
services and revenue arising from goods sold and services rendered can be distinguished, revenue from sales of
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
goods and rendering of services are separately accounted for; if, however, revenue arising from goods sold and
services rendered cannot be distinguished or can be distinguished but cannot be separately measured, all revenue
is accounted for as revenue arising from sales of goods.
25. Government Grants
A government grant is a transfer of monetary and non-monetary assets from the government to the Company
for no consideration, excluding resources transferred to the Company by the government in the capacity of the
shareholder. Government grants include grants related to assets and grants related to income.
Government grants obtained by the Company which is relevant to construction or acquisition of long-term
assets are classified as asset-related government grants; all other government grants are classified as
revenue-related government grants. For government grants without a specified beneficiary, the Company performs
classification in accordance with the following criteria.
a. Where a grant is obtained for a specified project, the grant is spat into asset-related and revenue related
portions proportionate to the project's investment to expense ratio; the classification is reviewed on each balance
sheet date and revised if necessary.
b. Where a grant is obtained for general purpose, the grant as a whole is classified as a revenue-related
government grant. If a government grant is in the form of monetary assets, it is measured at the amount received
or receivable.
If a government grant is in the form of non-monetary assets, it is measured by the fair value of the assets; if
the fair value of the assets granted cannot be reliably measured, the grant is measured by the nominal value of the
assets and is recognized immediately in profit or loss for the relevant period.
In general, the Company recognizes a government grant when it is actually received, and measures at the
amount actually received. However, a government grant may be recognized as receivable if it is objectively
evidential on the reporting date that conditions for the grant receipt are satisfied and thatthe grant is receivable. A
government grant is recognized as receivable if all following conditions are satisfied:
a. the amount of the grant is expressly stipulated in an official publication by the authorized governmental
agency or can be reasonably estimated in accordance with fiscal pronouncement issued by the authorized
governmental agency, and the estimate is not subject to significant uncertainty;
b. the grant is officially disclosed as part of publicly disclosed fiscal subsidized projects by the local fiscal
government bodies in accordance with the Government Information Disclosure Directives and is managed in
accordance with the fiscal plan published and the management of the grant if not entity-specific, i.e., every
eligible entity is entitled to apply;
c. the term for payment is expressly stipulated in the official pronouncement, and the payment is backed by
fiscal planning so that it is reasonable to expect receipt within the term of the payment;
and d. other conditions (inapplicable) need to be satisfied taking into account the Company's circumstances.
Grants related to assets are recognized as deferred income and amortized over the useful life of the relevant
assets using the straight-line method. A grant related to income is recognized as deferred income if it is related to
expenses or loss to be incurred in the future and is carried to profit or loss for the period during which the relevant
expenses or loss are recognized; it is recognized in profit or loss for the period during which it is received or
becomes receivable if it is related to expenses or loss already incurred. When assets are sold, transferred, disposed
or scraped before the end of useful life, the remaining differed income will be transferred to profit or loss in the
current period of asset disposal.
The government grants related to the daily activities of the Company are included in other income or
offsetting the related costs according to the substance of the economic business. The government grants unrelated
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
to the daily activities are included in the non-operating income and expenses. Where a recognized grant becomes
repayable, the amount repayable is firstly charged to the remaining deferred income (if any); the remaining
amount after charge to deferred income is recognized in profit or loss for the period during which it becomes
repayable
26.Deferred income tax assets and deferred income tax liabilities
（1）Current income tax
The current income tax liability (asset) on a balance-sheet date is measured at the amount of current income
tax payable (receivable) computed in accordance with the relevant tax law. Current income tax expense is
computed on the basis of taxable profit (loss) which is the amount after the adjustment of the relevant accounting
profit (loss) in accordance with the relevant tax law.
（2）Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are recognized on an accrual basis for the temporary
difference between the carrying amounts of assets and liabilities and their tax bases and the temporary difference
arising from the difference in recognition criteria for assets and liabilities between CAS and relevant tax
provisions.
No deferred tax liability is recognized for the temporary taxable difference arising from the initial
recognition of goodwill and the initial recognition of assets and liabilities acquired or assumed resulting from
transactions which are not business combination, and which do not have impact on both accounting profit and
taxable profit (deductible tax loss) at the time of their occurrence. Similarly, the deferred tax liability is not
recognized for temporary taxable difference associated with investments in subsidiaries, associates, and joint
ventures if the Company can control the reverse of the temporary difference and it is probable that the temporary
difference is not expected to reverse in the foreseeable future. Except for the circumstances described hereabove,
the deferred tax liability is recognized for all other taxable temporary difference.
No deferred tax asset is recognized for the temporary deductible difference arising from the initial
recognition of assets and liabilities acquired or assumed resulting from transactions which are not a business
combination, and which do not have an impact on both accounting profit and taxable profit (deductible tax loss) at
the time of their occurrence. Similarly, deferred tax asset is not recognized for temporary deductible difference
associated with investments in subsidiaries, associates, and joint ventures if the Company can control the reverse
of the temporary difference and it is probable that the temporary difference is not expected to reverse in the
foreseeable future. Except for the circumstances described hereabove, deferred tax asset is recognized for all other
deductible temporary difference to the extent that it is probable that taxable profit will be available against which
the temporary deductible difference can be utilized.
Deferred tax asset is recognized for deductible tax loss and tax credit carrying forward to the extent that it is
probable that taxable profit will be available against which the deductible tax loss and tax credit carryforward can
be utilized.
Deferred tax assets and deferred tax liabilities are measured on a balance-sheet date on the basis of tax rates
expected to be applicable in accordance with relevant tax law at the time when the relevant assets are recovered,
or relevant liabilities settled.
The carrying amount of deferred tax assets is reviewed on each balance sheet date. If it is probable that
insufficient taxable profit is available to utilize the deferred tax assets, the carrying amount of deferred tax assets
is reduced. When it is probable that sufficient taxable profit becomes available after the carrying amount of
deferred tax assets has been reduced, the reduction is reversed.
（3） Income tax expenses
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Income tax expenses include current income tax expenses and deferred income tax expenses.
All current income tax expenses (credit) and deferred income tax expenses (gains) are recognized inprofit
or loss for the relevant period except for a. current income tax and deferred income tax on transactions and events
which are accounted for in other comprehensive income or directly in equity, which are included in other
comprehensive income or directly recognized in equity depending on the treatment of its underlying transactions
and events, and b. deferred income tax arising from business combination, which is accounted for as an
adjustment to the carrying amount of the respective goodwill.
（4）Offsetting of income tax
A current income tax liability and current income tax asset are presented on (consolidated) financial
statements after netting only if the Company is permitted by law to settle the asset and liability net in cash and is
planning to do so or to recover the asset and settle the liability simultaneously.
A deferred tax asset and deferred tax liability are presented on (consolidated) financial statements after
netting only if all of the following conditions are satisfied: the Company is permitted by law to settle the current
asset and liability related to an income tax net in cash; and the deferred tax asset and deferred tax liability arising
from that income tax is levied by the same tax authority on the same entity or on different entities but the relevant
entities are planning to settle the underlying income tax net in cash or simultaneously recover the relevant assets
and settle the relevant liabilities during each future period during which significant deferred tax assets and
deferred tax liabilities are reversed.
27.Change of main accounting policies and estimations
⑴Change of accounting policies
√ Applicable □Not applicable
① Changes in accounting policies resulting from the implementation of the new financial instrument
guidelines
The Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments
(Revised in 2017), the Accounting Standards for Enterprises No. 23 - Transfer of Financial Assets (Revised in
2017), and the Accounting Standards for Enterprises No. 24 - Hedge Accounting Standards for Enterprises
(Revised in 2017) (Accounting [2017] No. 9) promulgated by the Ministry of Finance on March 31, 2017, as well
as the Accounting Standards for Enterprises No. 37 - Financial Instruments Presentation (Revised in 2017)
(Accounting [2017] No. 14) (collectively referred to as "New Financial Instruments Standards") issued on May 2,
2017 requires domestic listed enterprises to implement the new standards from January 1, 2019. Guidelines for
financial instruments.
Through the resolution of the 25th (provisional) meeting of the eighth board of directors of the Company on
April 26, 2019, the Company began to implement the aforementioned new financial instrument guidelines on
January 1, 2019.
All recognized financial assets under the new financial instrument standards are subsequently measured at
the amortized cost or fair value. On the date of implementation of the new financial instrument standards, the
business model of managing financial assets is evaluated on the basis of the existing facts and circumstances of
the Company on that day, and the characteristics of contractual cash flow on the financial assets are evaluated on
the basis of facts and circumstances at the time of initial recognition of financial assets. The financial assets are
divided into three categories: measured according to the amortized cost and measured according to the public
value. Value is measured and its changes are included in other comprehensive income and fair value, and its
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
changes are included in current profits and losses. Among them, when the financial asset terminates recognition,
the accumulated gains or losses previously included in other comprehensive gains will be transferred from other
comprehensive gains to retained gains, not into current profits and losses.
Under the new financial instrument standards, based on the expected credit loss, the Company makes
provision for impairment of financial assets measured by amortized cost, investment in debt instruments measured
by fair value and its changes included in other comprehensive gains, lease receivables, contractual assets and
financial guarantee contracts, and confirms the loss of credit impairment.
The Company retrospectively applies the new financial instrument standards, but for classification and
measurement (including impairment) involving the inconsistency between the previous comparative financial
statement data and the new financial instrument standards, the Company chooses not to repeat. Therefore, for the
cumulative impact of the first implementation of this standard, the Company adjusted the retained earnings or
other comprehensive earnings at the beginning of 2019 and the amount of other related items in the financial
statements, which were not restated in the financial statements of 2018.
The main changes and impacts of the implementation of the new financial instrument guidelines on our
Company are as follows:
- On January 1, 2019 and beyond, the Company designated some non-tradable equity investments held as
financial assets measured at fair value and included their changes in other comprehensive income, and reported
them as investments in other equity instruments.
- For the long-term equity investment of associates, the Company re-classified and measured the financial
instruments according to the new financial instrument standards, and the Company adjusted accordingly according
to the equity method.
- The Company holds part of the debt instruments, whose cash flow generated on a specific date is only the
payment of principal and interest based on the amount of unpaid principal, and the business model of the
Company's management of the financial assets is to collect the cash flow of the contract. The Company will take it
from other sources on January 1, 2019 and beyond. Non-current assets are reclassified to creditor's rights
investment.
A. Comparison of financial assets classification and measurement before and after the first implementation
date
a. Impact on the consolidated financial statements
December 31, 2018 (before change) January 1, 2019 (after the change)
Items Measurement category Book value Items Measurement category Book value
Available-for-sales Measured at fair value 1,668,791,594.53 Investment in Measured at fair value and 1,668,791,594.53
financial assets and included in other other equity included in other
comprehensive benefits instruments comprehensive earnings
(equity instruments)
long-term equity Cost method/equity 3,145,644,970.07 long-term equity Cost method/equity method 3,145,355,906.88
investments method investments
b. Impact on the financial statement
December 31, 2018 (before change) January 1, 2019 (after the change)
Items Measurement Book value Items Measurement category Book value
category
Available-for-sales Measured at fair 1,668,791,594.53 Investment in Measured at fair value and 1,668,791,594.53
financial assets value and included in other equity included in other
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other comprehensive instruments comprehensive earnings
benefits (equity
instruments)
long-term equity Cost method/equity 4,679,309,978.88 long-term equity Cost method/equity method 4,679,020,915.69
investments method investments
Other non-current amortized cost 692,903,684.98 Creditor's right amortized cost 692,903,684.98
assets investment
B. On the first execution date, the book value of the original financial assets shall be adjusted to a new
adjustment table for the book value of the financial assets classified and measured in accordance with the
provisions of the new financial instrument standards.
a. Impact on consolidated statements
Items December 31, 2018 Re-measurem January 1,2019
(before change) Re-Class ent (after change)
Measured at fair value and included in other
comprehensive earnings:
Available-for-sale financial assets (original guidelines) 1,668,791,594.53
Less transfer to other creditor's rights investment
Less: transfer to other non-current financial assets
Less: transfer to other equity instruments 1,668,791,594.53
Balances shown in accordance with the new financial
instrument guidelines
Investment in other equity instruments
Add: transfer from available-for-sale financial assets 1,668,791,594.53
(original criteria)
Re-measurement: re-measurement at fair value
Balances shown in accordance with the new financial 1,668,791,594.53
instrument guidelines
b. Impact on the Company's financial statements
Items December 31, 2018 Re-Class Re-measurem January 1,2019
(before change) ent (after change)
Amortized cost
Other non-current assets (original criteria) 692,903,684.98
Less: transfer to creditor's rights investment 692,903,684.98
Balances shown in accordance with the new
financial instrument guidelines
Creditor's rights investment
Add: transfer from other non-current assets 692,903,684.98
(original criteria)
Re-measurement: expected credit loss preparation
Balances shown in accordance with the new 692,903,684.98
financial instrument guidelines
Measured at fair value and included in other
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
comprehensive earnings:
Available-for-sale financial assets (original 1,668,791,594.53
guidelines)
Less: transfer to other creditor's rights investment
Less: transfer to other non-current financial assets
Less: transfer to other equity instruments 1,668,791,594.53
Balances shown in accordance with the new
financial instrument guidelines
Investment in other equity instruments
Add ： transfer from available-for-sale financial 1,668,791,594.53
assets (original criteria)
Re-measurement: re-measurement at fair value
Balances shown in accordance with the new 1,668,791,594.53
financial instrument guidelines
C. Financial assets impairment provision adjustment table on the first implementation date
a. Impact on consolidated statements
Measurement category December 31, 2018 Re-Class Re-measurement January 1, 2019
(before change) (after change)
Measured at fair value and included in other
comprehensive benefits (debt instruments)
Provision for impairment of available-for-sale 37,020,000.00 37,020,000.00
financial assets
Investment in other equity instruments 37,020,000.00 37,020,000.00
b. Impact on the Company's financial statements
Measurement category December 31, Re-Class Re-measu January 1,
2018 rement 2019
(before change) (after change)
Measured at fair value and included in other comprehensive benefits
(debt instruments)
Provision for impairment of available-for-sale financial assets 7,020,000.00 7,020,000.00
Investment in other equity instruments 7,020,000.00 7,020,000.00
D. Impact on retained earnings and other comprehensive earnings as of January 1, 2019
December 31, 2018 Consolidated retained Consolidated surplus Consolidation of other
earnings reserve comprehensive benefits
December 31,2018 3,938,609,136.59 245,109,114.81
1. Re-measurement of long-term equity -11,353,413.48 11,064,350.29
investment
January 1, 2019 3,927,255,723.11 256,173,465.10
②Other accounting policy changes
E. On April 30, 2019, the Notice of the Ministry of Finance on Revising and Issuing the Format of Financial
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Statements of General Enterprises (No. 6 Finance and Accounting [2019]) issued by the Ministry of Finance
adjusts the format of financial statements of enterprises accordingly, and regulates that the detailed items of
"management expenses" and "R&D expenses" should be separated from the items of "management expenses" in
the profit statement; it also indicates that the actual government subsidies received should be listed in the item
"cash received from other business activities". In response to such change of accounting policy, the Company
adopts the retroactive adjustment method to retroactively adjust the items reported in the financial statements from
January to June in 2018, as follows:
a. Impact on consolidated statements
January - June 2018 Before adjustment After Adjustment Change
Administrative Fees 75,594,633.97 73,109,460.94 -2,485,173.03
R&D expense 2,485,173.03 2,485,173.03
Other cash receipts relating to operating 39,446,329.98 41,946,329.98 2,500,000.00
activities
Receipt of other cash related to fund-raising 2,500,000.00 -2,500,000.00
activities
b. Impact on the Company's financial statements
January - June 2018 Before adjustment After Adjustment Change
Other cash receipts relating to operating 46,329,459.08 48,829,459.08 2,500,000.00
activities
Receipt of other cash related to fund-raising 293,500,000.00 291,000,000.00 -2,500,000.00
activities
⑵Change of accounting estimations
□ Applicable √ Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases
√Applicable □ Not applicable
Items December 31,2018 Jan 1,2019 Adjustment
Current asset：
Monetary fund 2,124,524,996.32 2,124,524,996.32
Settlement provision
Outgoing call loan
Transactional financial assets
Financial assets measured at fair value with
variations accounted into current income account
Derivative financial assets
Notes receivable
Account receivable 91,076,995.07 91,076,995.07
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items December 31,2018 Jan 1,2019 Adjustment
Financing of receivables
Prepayments 1,912,943.40 1,912,943.40
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable 16,487,256.02 16,487,256.02
Including：Interest receivable
Dividend receivable 1,205,472.90 1,205,472.90
Repurchasing of financial assets
Inventories 81,017.91 81,017.91
Contract assets
Assets held for sales
Non-current asset due within 1 year 51,745.32 51,745.32
Other current asset
Total of current assets 2,234,134,954.04 2,234,134,954.04
Non-current assets：
Loans and payment on other’s behalf disbursed
Debt investment
Available for sale of financial assets 1,668,791,594.53 -1,668,791,594.53
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 3,145,644,970.07 3,145,355,906.88 -289,063.19
Other equity instruments investment 1,668,791,594.53 1,668,791,594.53
Other non-current financial assets
Property investment 3,579,007.54 3,579,007.54
Fixed assets 7,600,046,319.91 7,600,046,319.91
Construction in progress 1,089,473,425.63 1,089,473,425.63
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 5,739,020.48 5,739,020.48
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items December 31,2018 Jan 1,2019 Adjustment
Development expenses
Goodwill
Long-germ expenses to be amortized 1,221,781.88 1,221,781.88
Deferred income tax asset 447,485,034.79 447,485,034.79
Other non-current asset 99,794,665.58 99,794,665.58
Total of non-current assets 14,061,775,820.41 14,061,486,757.22 -289,063.19
Total of assets 16,295,910,774.45 16,295,621,711.26 -289,063.19
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair value with
variations accounted into current income account
Derivative financial liabilities
Notes payable
Account payable 203,779,190.74 203,779,190.74
Advance receipts 12,039,708.01 12,039,708.01
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’wage payable 13,122,437.17 13,122,437.17
Tax payable 104,198,746.06 104,198,746.06
Other account payable 191,254,464.84 191,254,464.84
Including：Interest payable 8,971,576.57 8,971,576.57
Dividend payable 17,191,142.23 17,191,142.23
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1 year 2,498,480,000.00 2,498,480,000.00
Other current liability
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Items December 31,2018 Jan 1,2019 Adjustment
Total of current liability 3,022,874,546.82 3,022,874,546.82
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 2,983,040,000.00 2,983,040,000.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 38,022,210.11 38,022,210.11
Long-term remuneration payable to staff
Expected liabilities
Deferred income
Deferred income tax liability 205,672,389.59 205,672,389.59
Other non-current liabilities
Total non-current liabilities 3,226,734,599.70 3,226,734,599.70
Total of liability 6,249,609,146.52 6,249,609,146.52
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,536,774,965.31 2,536,774,965.31
Less：Shares in stock
Other comprehensive income 245,109,114.81 256,173,465.10 11,064,350.29
Special reserve
Surplus reserves 775,402,561.35 775,402,561.35
Common risk provision
Retained profit 3,938,609,136.59 3,927,255,723.11 -11,353,413.48
Total of owner’s equity belong to the parent
9,586,701,904.06 9,586,412,840.87 -289,063.19
company
Minority shareholders’ equity 459,599,723.87 459,599,723.87
Total of owners’equity 10,046,301,627.93 10,046,012,564.74 -289,063.19
Total of liabilities and owners’equity 16,295,910,774.45 16,295,621,711.26 -289,063.19
Statement of adjustment
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Balance sheet of parent company
In RMB
Items December 31,2018 Jan 1,2019 Adjustment
Current asset：
Monetary fund 2,096,597,568.04 2,096,597,568.04
Transactional financial assets
Financial assets measured at fair value with
variations accounted into current income account
Derivative financial assets
Notes receivable
Account receivable 18,405,847.15 18,405,847.15
Financing of receivables
Prepayments 1,532,057.82 1,532,057.82
Other account receivable 9,323,782.66 9,323,782.66
Including: Interest receivable 1,880,148.12 1,880,148.12
Dividend receivable 1,205,472.90 1,205,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 100,000,000.00 100,000,000.00
Other current asset
Total of current assets 2,225,859,255.67 2,225,859,255.67
Non-current assets：
Debt investment 692,903,684.98 692,903,684.98
Available for sale of financial assets 1,668,791,594.53 -1,668,791,594.53
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 4,679,309,978.88 4,679,020,915.69 -289,063.19
Other equity instruments investment 1,668,791,594.53 1,668,791,594.53
Other non-current financial assets
Property investment 3,326,869.29 3,326,869.29
Fixed assets 5,292,898,635.00 5,292,898,635.00
Construction in progress 1,060,230,773.10 1,060,230,773.10
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 1,741,277.53 1,741,277.53
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 447,328,530.77 447,328,530.77
Other non-current asset 790,720,727.48 97,817,042.50 -692,903,684.98
Total of non-current assets 13,944,348,386.58 13,944,059,323.39 -289,063.19
Total of assets 16,170,207,642.25 16,169,918,579.06 -289,063.19
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair value with
variations accounted into current income account
Derivative financial liabilities
Notes payable
Account payable 124,833,335.72 124,833,335.72
Advance receipts
Contract Liabilities
Employees’wage payable 5,669,203.37 5,669,203.37
Tax payable 10,297,144.52 10,297,144.52
Other account payable 142,457,135.79 142,457,135.79
Including:Interest payable 8,373,096.36 8,373,096.36
Dividend payable 17,191,142.23 17,191,142.23
Liabilities held for sales
Non-current liability due within 1 year 2,327,180,000.00 2,327,180,000.00
Other current liability 977,236,252.44 977,236,252.44
Total of current liability 3,587,673,071.84 3,587,673,071.84
Non-current liabilities：
Long-term loan 2,731,990,000.00 2,731,990,000.00
Bond payable
Including：preferred stock
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Sustainable debt
Lease liability
Long-term payable 38,022,210.11 38,022,210.11
Long-term remuneration payable to staff
Expected liabilities
Deferred income
Deferred income tax liability 88,220,604.00 88,220,604.00
Other non-current liabilities
Total non-current liabilities 2,858,232,814.11 2,858,232,814.11
Total of liability 6,445,905,885.95 6,445,905,885.95
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,948,663,196.93 2,948,663,196.93
Less：Shares in stock
Other comprehensive income 245,109,114.81 256,173,465.10 11,064,350.29
Special reserve
Surplus reserves 759,558,277.70 759,558,277.70
Retained profit 3,680,165,040.86 3,668,811,627.38 -11,353,413.48
Total of owners’ equity 9,724,301,756.30 9,724,012,693.11 -289,063.19
Total of liabilities and owners’ equity 16,170,207,642.25 16,169,918,579.06 -289,063.19
Statement of adjustment
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases
□ Applicable √ Not applicable
28. Significant account judgment and estimates
During the application of accounting policies, judgements, estimates, and presumption need to be made for
elements of financial statements, which cannot be precisely measured due to inherent uncertainty existing in
operating activities. The judgments, estimates, and presumption are made on the basis of the Company's past
experience and other relevant factors. The exercise of judgements, estimates, and presumption has an impact on
the measurement of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities on the
balance sheet date. However, the inherent uncertainty of the judgments, estimates, and presumption may result in
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
future significant adjustments to be made to the measurement of the affected assets and liabilities.
The judgments, estimates, and presumption are regularly reviewed on the basis of going concern. Where a
change in accounting estimates is applicable, its impact on financial statements is recognized in the period during
which the change occurs if the change has an impact on the financial statements for that period only; and in
subsequent periods if the change also has an impact on the financial statements for subsequent periods.
Significant elements of financial statements and areas that are subject to judgements, estimates and
presumption on the balance-sheet date include the following.
（1）Impairment of financial assets
The Company adopts the anticipated credit loss model to evaluate the impairment of financial instruments,
which requires that significant judgments and estimates should be made and all reasonable and reliable
information, including forward-looking information should be taken into account. In making such judgment and
estimate, the Company deduces the expected change of debtor's credit risk based on historical data and
macroeconomic indicators of economic policies, industrial risks, external market environment, technical
environment, changes of customer conditions and other factors.
（2）Provision for impairment of long-term assets.
Non-current assets are assessed for indicators of impairment on each balance sheet date. In addition,
intangible assets with infinite useful life are subject to impairment testing on each balance-sheet date and
whenever there is evidence indicating impairment; other non-financial non-current assets are subject to
impairment testing only if their evidence indicating that the carrying amount becomes non-collectible.
Impairment exists when the carrying amount of an asset or cash-generating unit exceeds its recoverable
amount, which is higher of the residual amount after deducting necessary expenses for disposal from its fair value
and the present value of its future cash flows. An asset's residual amount after deducting necessary expenses for
disposal is determined by reference to the residual amount after deducting the incremental costs to dispose the
asset from the selling price provided by contracts for sales of similar assets or the observable market price of
similar assets.
When estimating the present value of future cash flows of an asset or cash-generating unit, significant
judgments must be made regarding the production capacity, selling price, relevant operating costs of the asset or
cash-generating unit and relevant discount rates for discounting the cash flows. The Company considers all
available relevant information when determining the recoverable amount, including estimates regarding future
production capacity, selling price and relevant operating costs made on the basis of reasonable and supportive
presumption.
Goodwill is assessed for impairment at least annually. The assessment involves an estimate of the present
value of the future cash flows associated with the assets or groups of assets to which goodwill has been allocated.
The estimate considers the future cash flows associated with the assets or groups of assets to which goodwill has
been allocated and the applicable discount rates for cash flow discounting.
（3）Depreciation and amortization
Investment property, fixed assets, and intangible assets are depreciated (amortized) over their useful lives
using the straight-line method after considering of their residual value. Useful lives of these assets are regularly
reviewed for the purpose of determining the depreciation and amortization recognized for each period. Useful
lives are determined on the basis of the Company's past experience on similar assets and expected new technology
development. If existing estimates change significantly, the adjustment is made to the depreciation and
amortization for future periods.
（4）Deferred tax assets
All unutilized tax loss is recognized as deferred tax assets to the extent it is probable that taxable profit will
108
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
be available against which the deductible tax loss can be utilized. Significant judgments are required to estimate
the timing and amount of future taxable profit and to consider tax planning strategy so as to determine the number
of deferred tax assets to be recognized.
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Sales by Sales of Goods or Tax Services 3%、5%、6%、9%、10%、11%、13%
City maintenance and construction tax The actual payment of turnover tax 5%、7%
Enterprise income tax Taxable income 25%
The applicable tax rates for VAT sales or imported goods in our company during the period from January to
March 2019 are 16% and 10%. According to the Announcement of the Ministry of Finance, the State
Administration of Taxation and the General Administration of Customs on the Policies for Deepening the Reform
of VAT (Announcement [2019] No. 39 of the Ministry of Finance, the State Administration of Taxation and the
General Administration of Customs), the applicable tax rate has been adjusted to 13% and 9% since April 1, 1919.
Where there are tax payers of different enterprise income tax rates, the disclosure information indicates that there
is no tax payer.
2.Preferential tax
Nil
3.Other
Nil
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 91,690.76 53,211.49
Bank deposit 2,037,418,254.12 2,123,807,010.07
Other 515,006.17 664,774.76
Total 2,038,024,951.05 2,124,524,996.32
Other note
On June 30,2019,The balance of restricted bank deposits at the end of the period was 1,221,200.00 yuan, which
was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion
project of Sanbao to Shuikou section of Fokai Expressway.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Amount Proportio Amount Propor Amount Proporti Amount Propor
Book value Book value
n(%) tion(% on(%) tion(%
) )
Accrual of bad debt provision by
single item
Of which：
Accrual of bad debt provision by
104,294,640.84 100.00% 1,176,879.99 1.13% 103,117,760.85 92,253,875.06 100.00% 1,176,879.99 1.28% 91,076,995.07
portfolio
Of which：
Portfolio 104,294,640.84 100.00% 1,176,879.99 1.13% 103,117,760.85 92,253,875.06 100.00% 1,176,879.99 1.28% 91,076,995.07
Total 104,294,640.84 100.00% 1,176,879.99 103,117,760.85 92,253,875.06 100.00% 1,176,879.99 91,076,995.07
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Accrual of bad debt provision by single item: Nil
Accrual of bad debt provision by single item: Nil
Accrual of bad debt provision by portfolio:
In RMB
Balance in year-end
Name
Receivable accounts Bad debt provision Withdrawal proportion
Within 1 year 101,225,645.16
1-2 years 752,716.49 75,087.85 9.98%
2-3 years 849,193.27 254,757.98 30.00%
3-4 years 1,128,781.92 564,390.96 50.00%
4-5 years 278,304.00 222,643.20 80.00%
Over 5 years 60,000.00 60,000.00 100.00%
Total 104,294,640.84 1,176,879.99 --
Notes of the basis of recognizing the portfolio:
Provision for bad debts according to the age portfolio
Notes of the basis of recognizing the group:
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 101,225,645.16
Within 1 year 101,225,645.16
1-2 years 752,716.49
2-3 years 849,193.27
Over 3 years 1,467,085.92
3-4 years 1,128,781.92
4-5 years 278,304.00
Over 5 years 60,000.00
Total 104,294,640.84
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Portfolio 1 1,176,879.99 1,176,879.99
Total 1,176,879.99 1,176,879.99
Of which the significant amount of the reversed or collected part during the reporting period :Nil
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services Co., Ltd. 47,675,526.05 45.71
Guangdong Humen Bridge Co., Ltd. 23,560,330.99 22.59
Shandong Boan Intelligent Technology Co., Ltd 7,409,966.25 7.10
Guangdong Jingzhu Expressway Guangzhu North 4,819,475.01 4.62
Section Co., Ltd.
Zhongyuan Shipping Technology Co., Ltd. 3,932,168.05 3.77
Total 87,397,466.35 83.79
（5）Account receivable which terminate the recognition owning to the transfer of the financial 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 Year-beginning
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 2,658,527.25 92.85% 1,708,205.40 89.30%
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Over 3 years 204,738.00 7.15% 204,738.00 10.70%
Total 2,863,265.25 -- 1,912,943.40 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
Nil
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Name Amount Aging Proportion(%)
Guangdong Litong Real estate Investment 735,092.38 Within 1 year 25.67
Co., Ltd.
Guangdong power transmission & 235,695.00 Within 1 year 8.23
transformation engineering company
Guangdong south educational science and 152,800.00 Within 1 year 5.34
technology research institute
Tianjing Kechang Huitong Information 134,339.62 Within 1 year 4.69
Technology Co., Ltd.
Foshan Yingya Advertising Co., Ltd. 35,000.00 Over 3 years 1.22
Total 1,292,927.00 45.15
Other notes: Nil
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 34,145,770.80 1,205,472.90
Other receivable 18,630,191.48 15,281,783.12
Total 52,775,962.28 16,487,256.02
（1）Interest receivable
Nil
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1,205,472.90 1,205,472.90
No.1 Limited partnership enterprise
Ganzhou Kangda Expressway Co., Ltd. 21,000,000.00
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Gluoyuan Securities Co., Ltd. 11,940,297.90
Total 34,145,770.80 1,205,472.90
（2）Significant dividend receivable aged over 1 year
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
Other notes：Nil
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Balance of settlement funds for
47,528,056.18 47,528,056.18
securities transactions
Cash deposit 8,230,858.96 7,813,222.94
Gelin Enze Account 4,007,679.91 4,007,679.91
Petty cash 4,554,632.19 3,800,100.00
Advertising and labor costs 1,023,421.29 924,266.65
Other 4,837,508.03 2,760,422.52
Total 70,182,156.56 66,833,748.20
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
16,228.99 51,535,736.09 51,551,965.08
1, 2019
Balance as at January
—— —— —— ——
1, 2019 in current
Balance as at June
16,228.99 51,535,736.09 51,551,965.08
30,2019
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 10,683,833.96
Within 1 year 10,683,833.96
1-2 years 3,143,087.25
2-3 years 1,534,307.90
Over 3 years 54,820,927.45
3-4 years 579,262.98
4-5 years 772,029.18
Over 5 years 53,469,635.29
Total 70,182,156.56
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Financial assets with
significantly different 51,535,736.09 51,535,736.09
credit risks
Portfolio 3 16,228.99 16,228.99
Total 51,551,965.08 51,551,965.08
Notes 1： The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd, Guangdong
Expressway technology investment Co., Ltd once paid 18,000,000.00 yuan into Kunlun Securities Co., Ltd.
Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun
Securities Co., Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007, The Company and
Guangdong Expressway Technology Investment Co., Ltd had switched the money that paid into Kunlun Securities
Co., Ltd to other account receivable, and follow the careful principle to doubtful debts provision. The 710,349.92
yuan Credit was Recovered in 2008, The 977,527.77 yuan credit was recovered in 2011, The 652,012.00 yuan
Credit was recovered in 2014, The 1,815,828.92 yuan Credit was recovered in 2018, and the provision for had deb
Notes2：Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze Organic
Fertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it was entrust loan, three million was temporary
borrowing 12,400.00 yuan is the commission loan interest, the rest of it was advance money for another, Beijing
Gelin Enze Organic Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly,
the controlling subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full provision
for Bad debt 12,220,079.91yuan provision. The company in 2014 recovered arrears of 8,000,000.00
yuan, rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tTh
115
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
e settlement agreement of 212,400.00 yuan.
Where the current bad debts back or recover significant amounts:Nil
4)The actual write-off other accounts receivable: Nil
5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the total
Closing
Closing year end balance of
Name Nature Aging balance of bad
balance the accounts
debt provision
receivable(%)
Securities trading settle Over 5
Kunlun Securities Co.,Ltd 47,528,056.18 67.72% 47,528,056.18
ment funds years
Over 5
Beijing Gelin Enze Current account 4,007,679.91 5.71% 4,007,679.91
years
Shandong Boan Intelligent Within 1
Deposit 1,725,155.40 2.46%
Technology Co., Ltd. year
Guangdong Litong Real Estates
Deposit 1,515,077.22 2-3 years 2.16%
Investment Co., Ltd.
Guangdong Guanghui Expressway Over 4
Deposit 1,462,587.90 2.08%
Co., Ltd. years
Total -- 56,238,556.61 -- 80.13% 51,535,736.09
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
9. Inventories
Whether implemented new revenue guidelines?
□ Yes √No
（1）Category of Inventory
In RMB
Items Closing book balance Opening book balance
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 110,142.49 110,142.49 81,017.91 81,017.91
Total 110,142.49 110,142.49 81,017.91 81,017.91
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Inventory depreciation reserve
Nil
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
Nil
6.Non-current asset due within 1 year
In RMB
Items
Year-end balance Year-beginning balance
Advance business tax 51,745.32 51,745.32
Total 51,745.32 51,745.32
Other note：
Debt investments and other debt investments due within one important year of the end of the period：Nil
7. Available-for-sale financial assets
Items Amount in year-end
Book balance Bad debt provision Book value
Available-for-sale debt Instruments
Available-for-sale equity 1,705,811,594.53 37,020,000.00 1,668,791,594.53
Instruments
Measured by fair value 870,443,292.80 870,443,292.80
Measured by cost 835,368,301.73 37,020,000.00 798,348,301.73
Other
Total 1,705,811,594.53 37,020,000.00 1,668,791,594.53
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
8. Long-term equity investment
In RMB
Increase/decrease
Closing
Withd
Investment balance
Additi Negat rawal
Adjustment Cash bonus or of
profit and loss of
Investees Opening balance onal ive of other Changes of profits Ot Closing balance impairm
recognized impair
comprehensi other equity announced to her ent
invest invest ment
under the equity ve income issue provisio
ment ment provis
n
method ion
I. Joint venture
Guangdong Guanghui
992,521,223.58 143,481,952.02 25,795,500.00 84,638,655.14 1,077,160,020.46
Expressway Co., Ltd.
Zhaoqing Yuezhao Highway
307,172,338.10 27,819,228.16 53,207,865.41 281,783,700.85
Co., Ltd.
Subtotal 1,299,693,561.68 171,301,180.18 25,795,500.00 137,846,520.55 1,358,943,721.31
2. Affiliated Company
Shenzhen Huiyan Expressway 230,553,756.87 16,104,358.08 246,658,114.95
Guangdong Jiangzhong Expressway Co.,.
175,324,643.76 10,932,203.70 186,256,847.46
Ltd.
Ganzhou Kangda Expressway 219,985,018.52 17,339,428.35 21,000,000.00 216,324,446.87
Gan Ganzhou Gankang Expressway 209,995,910.71 4,937,249.59 214,933,160.30
Guangdong Yueke Technology Petty Loan
219,693,558.27 7,188,376.76 226,881,935.03
Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Guoyuan Securities Co., Ltd. 790,109,457.07 9,910,201.43 -470,449.14 11,940,297.90 787,608,911.46
Subtotal 1,845,662,345.20 66,411,817.91 -470,449.14 32,940,297.90 1,878,663,416.07
Total 3,145,355,906.88 237,712,998.09 -470,449.14 25,795,500.00 170,786,818.45 3,237,607,137.38
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
9.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co., Ltd. 748,348,301.73 748,348,301.73
Guangdong Radio and Television
Networks investment No.1 Limited 50,000,000.00 50,000,000.00
partnership enterprise
China Everbright Bank Co., Ltd. 896,321,336.64 870,443,292.80
Huaxia Securities Co., Ltd.（Notes1） 0.00 0.00
Huazheng Asset Management Co., Ltd.
0.00 0.00
（Notes2）
Kunlun Securities Co., Ltd.（Notes3） 0.00 0.00
Total 1,694,669,638.37 1,668,791,594.53
Note 1: The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in
December 2005. The Company made full provision for impairment in respect of this long-term equity investment
of RMB 5.4 million.
Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co.,
Ltd. As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was
279.132 million yuan and the appraised value was - 2299.5486 million yuan ,On October 14, 2005, Jianyin 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 42 million yuanto
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 investment of
1.62 million yuan.
Note 3.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.
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of Reasons for Reasons for
other designation as other
Dividend Cumul consolidated measured at fair consolidated
Items income Cumulative gain ative income value and changes income
recognized loss transferred to included in other transferred to
retained comprehensive retained
earnings income earnings
Guangle Expressway Co., Non-transactional
Ltd. purpose for
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
shareholding
Guangdong Radio and
Non-transactional
Television Networks
652,822.25 purpose for
investment No.1 Limited
shareholding
partnership enterprise
Non-transactional
China Everbright Bank Co.,
37,876,045.98 378,760,459.84 purpose for
Ltd.
shareholding
Non-transactional
Huaxia Securities Co., Ltd. purpose for
shareholding
Non-transactional
Huazheng Asset Management
purpose for
Co., Ltd.
shareholding
Non-transactional
Kunlun Securities Co., Ltd. purpose for
shareholding
Other notes：Nil
10. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Construction in
Items Houses and buildings Land use right Total
progress
I. Original value
1.Opening balance 12,664,698.25 2,971,831.10 15,636,529.35
2.Increased amount of
the period
（1）Outsourcing
(2)Inventory, Fixed
assets and
Construction project
into
(3)Enterprise
consolidation
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 2,971,831.10 15,636,529.35
II.Accumulated
depreciation
accumulated
amortization
1.Opening balance 10,373,153.97 1,684,367.84 12,057,521.81
2.Increased amount of
100,163.25 36,784.68 136,947.93
the period
(1)Withdrawal or
100,163.25 36,784.68 136,947.93
amortization
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 10,473,317.22 1,721,152.52 12,194,469.74
III. Impairment
provision
1.Opening balance
2.Increased amount of
the period
（1）Withdrawal
3.Decreased
amount of the period
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 2,191,381.03 1,250,678.58 3,442,059.61
2.Opening book 2,291,544.28 1,287,463.26 3,579,007.54
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary Transportation and other ancillary
1,514,070.42
facilities facilities, Not accreditation
(4) Real estate conversion:
Nil.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
11. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 7,911,422,302.11 7,600,046,319.91
liquidation of fixed assets 11,338.86
Total 7,911,433,640.97 7,600,046,319.91
(1) List of fixed assets
In RMB
Jingzhu Electricity
Guangfo Fokai House and Machinery Transportatio
Items Expressway equipment and Total
Expressway Expressway buildings equipment n equipment
Guangzhu section other
I. Original price
1.Opening balance 1,460,270,190.66 8,988,726,518.80 4,798,270,209.11 342,597,957.59 122,698,641.11 48,745,472.07 659,423,683.35 16,420,732,672.69
2.Increased amount of
677,371,219.45 453,016.00 24,456,055.29 606,062.20 13,570,262.33 716,456,615.27
the period
（1）Purchase 606,062.20 472,154.38 1,078,216.58
（2）Transfer of project
677,371,219.45 453,016.00 24,456,055.29 13,098,107.95 715,378,398.69
under construction
(3)Increased of Enterprise
consolidation
3.Decreased amount of 1,241,560.00 558,232.00 25,704,639.81 27,504,431.81
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Jingzhu Electricity
Guangfo Fokai House and Machinery Transportatio
Items Expressway equipment and Total
Expressway Expressway buildings equipment n equipment
Guangzhu section other
the period
（1）Disposal or scrap 1,241,560.00 558,232.00 25,704,639.81 27,504,431.81
4.Closing balance 1,460,270,190.66 9,666,097,738.25 4,798,270,209.11 343,050,973.59 145,913,136.40 48,793,302.27 647,289,305.87 17,109,684,856.15
II. Accumulated
depreciation
1.Opening balance 1,460,270,190.66 3,940,158,837.04 2,625,645,410.16 232,333,164.38 71,147,743.72 38,419,504.01 452,711,502.81 8,820,686,352.78
2.Increased amount of
258,648,669.85 110,175,156.27 6,740,911.11 6,561,004.35 1,343,196.17 18,970,099.01 402,439,036.76
the period
（1）Withdrawal 258,648,669.85 110,175,156.27 6,740,911.11 6,561,004.35 1,343,196.17 18,970,099.01 402,439,036.76
3.Decreased amount of
1,179,482.00 502,408.80 23,180,944.70 24,862,835.50
the period
（1）Disposal or scrap 1,179,482.00 502,408.80 23,180,944.70 24,862,835.50
4.Closing balance 1,460,270,190.66 4,198,807,506.89 2,735,820,566.43 239,074,075.49 76,529,266.07 39,260,291.38 448,500,657.12 9,198,262,554.04
II. Accumulated
depreciation
1.Opening balance
2.Increased amount of
125
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Jingzhu Electricity
Guangfo Fokai House and Machinery Transportatio
Items Expressway equipment and Total
Expressway Expressway buildings equipment n equipment
Guangzhu section other
the period
（1）Withdrawal
3.Decreased amount of the
period
（1）Disposal or scrap
4.Closing balance
IV. Book value
1.Closing book value 5,467,290,231.36 2,062,449,642.68 103,976,898.10 69,383,870.33 9,533,010.89 198,788,648.75 7,911,422,302.11
2.Opening book 5,048,567,681.76 2,172,624,798.95 110,264,793.21 51,550,897.39 10,325,968.06 206,712,180.54 7,600,046,319.91
126
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 78,592,579.67
facilities, Not accreditation
（6）Liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Other equipment scrap cleaning 11,338.86
Total 11,338.86
Other notes
127
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
12. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 834,325,807.36 1,087,923,869.63
Engineering material 1,549,556.00 1,549,556.00
Total 835,875,363.36 1,089,473,425.63
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Book balance Provisi Book value Book balance Provisi Book value
Items on for on for
devalu devalu
ation ation
Sanbao - Shuikou Expansion
788,231,558.91 788,231,558.91 1,052,834,193.16 1,052,834,193.16
project
Bridge deck pavement project
1,382,928.49 1,382,928.49 1,382,928.49 1,382,928.49
of hailong Bridge
Minzhong Service area
29,178,686.23 29,178,686.23 18,210,698.73 18,210,698.73
reconstruction project
Urban toll station project 5,053,672.53 5,053,672.53 5,008,642.53 5,008,642.53
Odd project 10,478,961.20 10,478,961.20 10,487,406.72 10,487,406.72
Total 834,325,807.36 834,325,807.36 1,087,923,869.63 1,087,923,869.63
128
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(2) Changes of significant construction in progress
In RMB
Including:
Capitalizat
capitalization Source
Name of Transferred to Other End Proportion Project Capitalization ion of
Budget Opening balance Increase of of
project fixed assets decrease balance % process of interest interest
Interest this funding
rate (%)
period
Self-financi
Sanbao -
ng and
Shuikou 788,231,55 56,941,383.4
3,426,206,700.00 1,052,834,193.16 450,266,164.45 714,868,798.70 58.87% 58.87 12,717,031.46 2.75% Loans from
Expansion 8.91 7
financial
project
institutions
788,231,55 56,941,383.4
Total 3,426,206,700.00 1,052,834,193.16 450,266,164.45 714,868,798.70 -- -- 12,717,031.46 2.75% --
8.91 7
(3)Provision for impairment of construction projects in the current period
Nil
（4）Engineering material
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision for Book value Book Provision for Book value
devaluation balance devaluation
Signpost 1,549,556.00 1,549,556.00 1,549,556.00 1,549,556.00
Total 1,549,556.00 1,549,556.00 1,549,556.00 1,549,556.00
129
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
13. Intangible assets
(1) List of intangible assets
In RMB
Patent Non-patent
Items Land use right Software Total
right right
I. Original price
1.Opening balance 1,311,658.00 28,619,133.57 29,930,791.57
2.Increased amount of the
period
(1) Purchase
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 1,311,658.00 28,619,133.57 29,930,791.57
II. Accumulated amortization
1.Opening balance 1,311,658.00 22,880,113.09 24,191,771.09
2.Increased amount of the
1,184,929.43 1,184,929.43
period
(1) Withdrawal 1,184,929.43 1,184,929.43
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 1,311,658.00 24,065,042.52 25,376,700.52
130
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Patent Non-patent
Items Land use right Software Total
right right
III. Impairment provision
1.Opening balance
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 4,554,091.05 4,554,091.05
2.Opening book value 5,739,020.48 5,739,020.48
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
Nil
(3) intangible assets with uncertain service life
Nil
(4) Important individual intangible assets
Nil
(5) Conditions of intangible assets subject to restrictions on ownership or right of use
Nil
14. Long-term amortize expenses
In RMB
Balance in Increase in this Amortized Balance in
Items year-begin period expenses Other loss
year-end
131
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Rental fee for Guangzhu
1,221,781.88 53,508.72 1,168,273.16
North Section sport ground
Total 1,221,781.88 53,508.72 1,168,273.16
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Deductible loss 1,126,696,090.04 281,674,022.51 1,281,389,685.73 320,347,421.43
Fixed assets 486,210,744.68 121,552,686.17 506,674,347.73 126,668,586.93
Intangible assets 561,287.20 140,321.80 1,876,105.71 469,026.43
Total 1,613,468,121.92 403,367,030.48 1,789,940,139.17 447,485,034.79
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in the fair
value of other equity 378,760,459.84 94,690,114.96 352,882,416.00 88,220,604.00
instruments
Fixed assets 433,956,737.96 108,489,184.49 469,807,142.34 117,451,785.59
Total 812,717,197.80 203,179,299.45 822,689,558.34 205,672,389.59
（3）Deferred tax assets of Liabilities that are presented at the net amount after offsetting
Nil
（4）Details of unrecognized deferred tax assets
In RMB
Items Balance in year-end Balance Year-beginning
Deductible temporary differences 89,748,845.07 89,748,845.07
Deductible losses 5,781,345.15 8,796,952.44
Total 95,530,190.22 98,545,797.51
132
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance Year-beginning Remark
2019 3,456,570.30
2020
2021
2022 1,133,109.04 2,121,083.91
2023 3,137,842.72 3,219,298.23
2024 1,510,393.39
Total 5,781,345.15 8,796,952.44 --
Other notes：
16. Other Non-current assets
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
Items Balance in year-end Balance Year-beginning
Prepaid Project fee 29,790,591.16 49,890,408.41
Prepaid business tax 492,900.42 518,773.08
Deductible import tax 85,425,596.24 49,385,484.09
Less：Part due within 1 year
Total 115,709,087.82 99,794,665.58
Other notes：
17.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 79,648,896.66 84,200,629.90
1-2 years（including2 years） 18,724,164.80 8,911,247.40
2-3 years（including 3 years） 7,471,269.20 84,119,053.06
Over 3 years 109,595,484.17 26,548,260.38
Total 215,439,814.83 203,779,190.74
133
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Heshan Land and resources Bureau 38,186,893.60 Unsettled
Foshan Land and resources
13,700,178.00 Unsettled
Bureau.Chancheng Branch
Foshan Land and resources Bureau. 11,335,478.40 Unsettled
Guangdong Highway Construction Co.,
25,630,651.00 Unsettled
Ltd.
Guangdong Expressway Co., Ltd. 8,746,491.18 Unsettled
Guangdong Xinyue Traffic Investment
1,829,141.32 Unsettled
Co., Ltd.
The third Research Institute of the
6,424,475.20 Unsettled
Ministryof Public Security
Dongguan Yongyao Photoelectricity
2,388,817.70 Unsettled
Technology Co., Ltd.
Total 108,242,126.40 --
Other notes：
18. Prepayment received
Whether implemented new revenue guidelines?
□ Yes √No
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 215,840.47 516,610.46
1-2 years（Including 2 years）
2-3 years（Including 3 years） 419,601.44
Over 3 years 11,509,298.49 11,103,496.11
Total 11,725,138.96 12,039,708.01
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/ Uncarry over reason
Guangzhou Huanlong Expressway Co., 9,229,313.18 Land rent is not in the settlement period
134
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Ltd.
Guanghdong Xinle Technology The Rental is not in the settlement
1,757,170.13
Development Co., Ltd. period
Total 10,986,483.31 --
19. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the Decrease in the current
Year-end balance
balance current period period
I. Short-term compensation 13,122,437.17 131,540,765.12 127,852,673.86 16,810,528.43
II.Post-employment benefits - def
20,234,926.19 18,922,057.52 1,312,868.67
ined contribution plans
Total 13,122,437.17 151,775,691.31 146,774,731.38 18,123,397.10
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the Decrease in the current
Year-end balance
balance current period period
1.Wages, bonuses, allowances
628,563.49 96,560,819.61 92,603,286.95 4,586,096.15
and subsidies
2.Employee welfare 8,294,025.59 8,268,433.50 25,592.09
3. Social insurance premiums 9,030,523.22 9,024,732.34 5,790.88
Including ：Medical insurance 5,950,272.65 5,945,195.29 5,077.36
Work injury insurance 151,140.26 151,079.52 60.74
Maternity insurance 823,534.50 822,881.72 652.78
Supplementary medical
2,105,575.81 2,105,575.81
insurance
4.Public reserves for housing 13,332,834.00 13,322,552.00 10,282.00
5.Union funds and staff
11,817,868.74 3,248,185.04 3,560,531.41 11,505,522.37
education fee
6. Other
3,600.00 3,600.00
Short-term remuneration
8.Other 676,004.94 1,070,777.66 1,069,537.66 677,244.94
135
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Total 13,122,437.17 131,540,765.12 127,852,673.86 16,810,528.43
（3）Defined contribution plans listed
In RMB
Balance Increase in this period Payable in this period Balance in year-end
Items
Year-beginning
1. Basic old-age
11,350,594.44 11,341,888.96 8,705.48
insurance premiums
2.Unemployment
433,378.99 433,010.35 368.64
insurance
3.Enterprise annuity
8,450,952.76 7,147,158.21 1,303,794.55
payment
Total 20,234,926.19 18,922,057.52 1,312,868.67
Other notes：
20. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 9,558,893.25 13,473,944.70
83,409,953.90 85,375,209.49
Enterprise Income tax
Individual Income tax 95,911.15 3,551,727.77
City Construction tax 510,507.83 793,960.96
Land use tax 607,742.40 200,454.00
Property tax 619,943.82 155,413.34
Education subjoin 247,654.02 371,885.57
Locality Education subjoin 151,087.55 233,892.04
Stamp tax 3,744.73 26,304.47
Other 2,460.00 15,953.72
Total 95,207,898.65 104,198,746.06
Other notes：
21.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Interest payable 17,157,289.56 8,971,576.57
136
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Dividend payable 21,150,413.70 17,191,142.23
Other account payable 246,255,948.01 165,091,746.04
Total 284,563,651.27 191,254,464.84
（1）Interest payable
In RMB
Items Balance in year-end Balance Year-beginning
Pay the interest for long-term loans by
6,702,057.71 7,832,311.57
installments.
Interest on medium-term bills 9,091,506.85
Interest payable on entrusted loans 1,363,725.00 1,139,265.00
Total 17,157,289.56 8,971,576.57
- Particulars of significant overdue unpaid interest
Nil
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 21,150,413.70 17,191,142.23
Total 21,150,413.70 17,191,142.23
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 16,962,838.73yuan for more than a year in unpaid dividends to shareholders over the year
was mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, 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.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Quality guarantee fund 69,503,074.61 67,696,625.43
Deposit 3,598,824.65 1,876,467.00
Other 38,154,048.75 50,518,653.61
137
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Borrowing 135,000,000.00 45,000,000.00
Total 246,255,948.01 165,091,746.04
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
China Railway Tunnel Group Co., Ltd. 5,514,979.86 Project Quality guarantees
China Railway 18 Bureau Group Co., Project Quality Guarantees,Contractual penalty,
7,134,981.40
Ltd. Wage deposit
Baoli Changda Highway Engineering Project Quality Guarantees, Project performance
8,106,409.63
Co., Ltd. fund
Dongguan Yueyu Optoelectronic
1,534,850.00 Project Quality guarantee
Technology Co., Ltd.
Total 22,291,220.89 --
Other notes
22. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 2,041,365,000.00 2,498,480,000.00
Total 2,041,365,000.00 2,498,480,000.00
Other notes
23. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 386,700,000.00 422,350,000.00
Guaranteed loan 750,000,000.00 1,125,000,000.00
Credit loan 4,186,390,000.00 3,934,170,000.00
Long-term loans due within one year -2,041,365,000.00 -2,498,480,000.00
Total 3,281,725,000.00 2,983,040,000.00
Other notes including interest rate range：
The Pledge loan rate is 4.41%; the guaranteed loan interest rate is 5.6%; the credit interest rate is 4.20%-4.41%.
138
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Notes：
See Section VII, 48 for the types and amounts of mortgaged assets of pledged loans.
139
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
24.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 677,902,761.25
Total 677,902,761.25
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability
In RMB
Pay
Open in
Withdraw Overflow
ing The current curre
Name of the bond Book value Issue date Period Issue amount interest at discount Closing balance
balan issue nt
par amount
ce perio
d
Guangdong
680,000,000.00 2019.3.1 2019.3.1-2024.3.1 680,000,000.00 680,000,000.00 -2,097,238.75 677,902,761.25
ExpresswayMTN001
(3) Note to conditions and time of share transfer of convertible bonds
Nil
（4）Other financial instruments that are classified as financial liabilities
Nil
140
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
25. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 39,625,983.68 38,022,210.11
Total 39,625,983.68 38,022,210.11
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2,022,210.11 2,022,210.11
Guangdong Jiangzhong Expressway Co.,
36,000,000.00 36,000,000.00
Ltd. Entrusted loan
Medium term bill underwriting fee 1,603,773.57
Part due within a year
Other notes：
（2）Special payable
Nil
26. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
2,500,000.00 2,500,000.00
subsidy
Total 2,500,000.00 2,500,000.00 --
Details of government subsidies：
In RMB
Other
Amount Amount of Asset-related
Beginn New subsidy income Other End
transferred to cost deducted or
Items ing of in current recorded in chang of
non-operationa in the current income-relate
term period the current es term
l income period d
period
Financial Related to
2,500,000.00 2,500,000.00
discount income
27. Stock capital
In RMB
141
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Changed（+，-）
Balance Balance in
Issuance of Bonus Capitalizatio
Year-beginning Other Subtotal year-end
new share shares n of public
reserve
Total of
2,090,806,126.00 2,090,806,126.00
capital shares
28. Capital reserves
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Share premium 2,508,408,342.99 2,508,408,342.99
Other capital reserves 28,366,622.32 25,795,500.00 54,162,122.32
Total 2,536,774,965.31 25,795,500.00 2,562,570,465.31
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 25,795,500.00 yuan due to the change of the owner's equity of the
joint-stock company
142
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
29. Other comprehensive income
In RMB
Amount of current period
Less：Amount
transferred into
profit and loss in Less：Prior period
the current included in other After-tax After-tax
Year-beginning Amount Year-end
Items period that composite income Less：Income attribute to the attribute to
balance incurred before balance
recognied into transfer to retained tax expenses parent minority
income tax
other income in the company shareholder
comprehensive current period
income in prior
period
Other comprehensive income will be
264,661,812.00 25,878,043.84 6,469,510.96 19,408,532.88 284,070,344.88
reclassified into income or loss in the future
Including: Share of other comprehensive
income of the investee that cannot be
264,661,812.00 25,878,043.84 6,469,510.96 19,408,532.88 284,070,344.88
transferred to profit or loss accounted
for using the equity method
Other comprehensive income reclassifiable
-8,488,346.90 -470,449.14 -470,449.14 -8,958,796.04
to profit or loss in subsequent periods
Including：Share of other comprehensive
income of the investee that cannot be
-8,488,346.90 -470,449.14 -470,449.14 -8,958,796.04
transferred to profit or loss accounted for
using the equity method
Total of other comprehensive income 256,173,465.10 25,407,594.70 6,469,510.96 18,938,083.74 275,111,548.84
143
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
Nil
144
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
30. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
775,402,561.35 775,402,561.35
reserve
Total 775,402,561.35 775,402,561.35
Notes: Nil
31. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last
3,938,609,136.59 3,550,110,288.49
period end
Adjust the total undistributed profits at the
-11,353,413.48
beginning of the period
After adjustments: Retained profits at the period
3,927,255,723.11 3,550,110,288.49
beginning
Add：Net profit belonging to the owner of the
736,486,112.30 1,677,028,179.18
parent company
Less: Statutory surplus reserve 230,581,431.32
Common stock dividend payable 1,175,033,042.81 1,057,947,899.76
Retained profit at the end of this term 3,488,708,792.60 3,938,609,136.59
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB -11,353,413.48
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB -11,353,413.48
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
145
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
32.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 1,465,140,817.31 536,808,262.05 1,518,875,852.56 522,317,994.54
Other operation 18,532,427.90 12,815,548.44 16,988,292.58 11,418,571.81
Total 1,483,673,245.21 549,623,810.49 1,535,864,145.14 533,736,566.35
Whether implemented new revenue guidelines?
□ Yes √No
Other notes
33. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 2,826,207.50 2,938,753.34
Education surcharge 1,334,286.59 1,380,805.75
Property tax 653,603.50 661,486.13
Land use tax 607,742.40 603,977.11
Vehicle use tax 27,413.99 38,698.53
Stamp tax 151,645.56 242,575.38
Business tax 25,872.66 25,872.66
Locality Education surcharge 889,523.37 920,536.09
Other 40,728.40 40,410.00
Total 6,557,023.97 6,853,114.99
Other notes：
The various taxes and additional payment criteria are detailed in the Section VI, tax.
34. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 51,876,703.42 49,712,683.56
Depreciation and Amortization 5,426,970.90 5,428,661.13
Low consumables amortization 270,716.05 279,304.70
146
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Travel expenses 425,060.93 384,417.28
Office expenses 4,046,634.57 2,828,218.57
Leased expenses 5,621,607.68 5,606,396.14
The fee for hiring agency 4,459,697.91 2,202,760.36
Consultation expenses 1,186,300.00 853,466.98
Listing fee 11,320.75 11,320.76
Information cost and maintenance fee 180,975.14 48,300.00
Other 3,469,223.12 5,753,931.46
Total 76,975,210.47 73,109,460.94
35. R & D cost
In RMB
Items Amount of this period Amount of last period
Labor cost 2,306,179.75
Depreciation expenses 52,214.75
Other 126,778.53
Total 2,485,173.03
36.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 115,040,857.71 125,752,286.60
Deposit interest income（-） -15,761,707.69 -18,076,236.30
Exchange Income and loss（Gain-） 1,590,432.88 2,348,188.17
Bank commission charge 904,728.33 2,755,977.00
Other 1,755,451.17
Total 103,529,762.40 112,780,215.47
37.Other gains
In RMB
Items Amount of this period Amount of last period
Maternity allowance 377,218.29
Return of income tax procedures 40,043.40
147
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
A 10% deduction for input tax 2,965.93
Total 420,227.62
38. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
237,712,998.09 216,777,157.34
method
Dividends eamed during the holding period on
38,528,868.23
investments in other equity instrument
Hold the investment income during from
42,581,144.86
available-for-sale financial assets
Total 276,241,866.32 259,358,302.20
39. Asset impairment loss
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
Items Amount of this period Amount of last period
I. Bad debt loss 57,890.35
Total 57,890.35
Other note：
40.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Income from disposal of Fixed assets 44,860,186.67
Income from disposal of Intellectual
13,129,094.29
property right
148
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Notes ： According to the overall plan of upgrading and renovation of Guangdong expressway toll collection
system. In April 2019, Guangdong Gaosu Science and Technology Investment Co., Ltd. transferred the related
rights of "Blue Channel" which had not been completed as an asset group to the related party, Guangdong Unitoll
Collection Inc.The transaction was based on the evaluation value of the underlying asset group of China
Federation International Assessment Consulting Co., Ltd. (Assessment Report No. WIGPD0664, CIFIC
International Commentary [2018]).
41. 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
Loss & abandonment of
110,018.02
non-current assets
Road property claim income 543,754.07 736,148.53 543,754.07
Other income 191,605.69 1,841,394.03 191,605.69
Total 735,359.76 2,687,560.58 735,359.76
- Government subsidy reckoned into current gains/losses: Nil
42. Non-Operation expense
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Loss & abandonment of
2,591,350.52 505,483.87 2,591,350.52
non-current assets
Fine 207.98 357,855.32 207.98
Other 1,639,849.45 1,144,628.24 1,639,849.45
Total 4,231,407.95 2,007,967.43 4,231,407.95
43. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 154,541,370.84 179,094,084.83
Deferred income tax expense 35,155,403.21 34,127,634.02
Total 189,696,774.05 213,221,718.85
149
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total profits 1,033,282,577.92
Current income tax expense accounted by tax and relevant
258,320,644.48
regulations
Influence of non taxable income -69,151,826.00
Impact of non-deductible costs, expenses and losses 1,297,869.31
Affect the use of deferred tax assets early unconfirmed deductible losses -1,111,136.29
The current period does not affect the deferred tax assets recognized
387,306.91
deductible temporary differences or deductible loss
other -46,084.36
Income tax expense 189,696,774.05
44. Other comprehensive income
Refer to the notes 7.29
45.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 15,761,707.69 18,076,236.30
Unit current account 9,857,010.59 23,870,093.68
Total 25,618,718.28 41,946,329.98
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 16,677,364.01 18,068,478.74
Network received toll income 6,999,980.83 3,803,254.03
Unit current account 14,244,441.25
Total 37,921,786.09 21,871,732.77
150
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(3)Cash received related to other investment activities
Nil
(4)Cash paid related to other investment activities
Nil
（5）Other cash received in relation to financing activities
Nil
（6）Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Medium-term bill issuance fee 791,384.00
Total 791,384.00
46. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current Amount of previous
period period
I. Adjusting net profit to cash flow from operating activities -- --
Net profit 843,585,803.87 898,633,867.88
Add: Impairment loss provision of assets -57,890.35
Depreciation of fixed assets, oil and gas assets and consumable biological
402,575,984.69 398,876,127.65
assets
Amortization of intangible assets 1,184,929.43 1,318,922.34
Amortization of Long-term deferred expenses 53,508.72 55,661.40
Loss on disposal of fixed assets, intangible assets and other long-term deferred
-13,129,094.29 -44,860,186.67
assets
Fixed assets scrap loss 2,591,350.52 395,465.85
Financial cost 116,631,290.59 130,600,474.77
151
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Supplement Information Amount of current Amount of previous
period period
Loss on investment -276,241,866.32 -259,358,302.20
Decrease of deferred income tax assets 44,118,004.31 54,102,320.89
Increased of deferred income tax liabilities -8,962,601.10 -42,912,043.91
Decrease of inventories -29,124.58 -139,076.49
Decease of operating receivables -16,566,898.76 -4,522,183.33
Increased of operating Payable -45,000,189.85 -312,353,569.73
Net cash flows arising from operating activities 1,050,811,097.23 819,779,588.10
II. Significant investment and financing activities that without cash flows: -- --
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 2,036,803,751.05 1,821,466,139.37
Less: Beginning balance of cash equivalents 2,123,303,796.32 2,363,042,700.42
Net increase of cash and cash equivalents -86,500,045.27 -541,576,561.05
(2) Net Cash paid of obtaining the subsidiary
Nil
(3) Net Cash receive of disposal of the subsidiary
Nil
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
2,036,803,751.05 2,123,303,796.32
Cash
91,690.76 53,211.49
Of which: Cash in stock
Bank savings could be used at any time 2,036,197,054.12 2,122,585,810.07
Other monetary capital could be used at
515,006.17 664,774.76
any time
Balance of cash and cash equivalents at
2,036,803,751.05 2,123,303,796.32
the period end
Other note：
Cash and cash equivalents exclude restricted cash and cash equivalents used by parent companies or
subsidiaries within a group.
47. Note of statement of changes in the owner's equity
152
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
Nil
48. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the period Restricted reason
Land reclamation funds in the
Monetary fund 1,221,200.00
fund escrow account
Total 1,221,200.00 --
Other notes：
Up to June 30, 2019, Jingzhu Expressway Guangzhu Section Co., Ltd., the controlling grandchildren
company of the Company, with the toll collection right 19.20% of Panyu Tangkeng-Zhuhai Jinding section project
in Jingzhu expressway, asked for386,700,000.00 yuan of loan from Guangzhou Wuyang Branch of ICBC to
provide pledge guarantee(of which the non-current debt balance with 1-year expiration was 38,680,000.00 yuan
and the long-term loan balance was 348,020,000.00 yuan).
49. Foreign currency monetary items
Nil
50.Hedging
Nil
51. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
Amount included in current
Items Amount Project
profit and loss
Financial discount 2,500,000.00 Financial expenses 2,500,000.00
Maternity allowance 377,218.29 Other income 377,218.29
Return of income tax
40,043.40 Other income 40,043.40
procedures
A 10% deduction for input
2,965.93 Other income 2,965.93
tax
（2）Government subsidy return
Nil
153
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
52.Other
Nil
VIII. Changes of merge scope
1. Business merger not under same control
Nil
2. Business combination under the same control
Nil
3. Counter purchase
Nil
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting 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
In August 2018, Guangdong Fokai Expressway Co., Ltd. completed the industrial and commercial
cancellation, and obtained the “Notice of Approval for Cancellation Registration” and the “Notice of Permit for
Cancellation Registration”. From August 2018, Guangdong Fokai Expressway Co., Ltd. was no longer included in
the scope of consolidated statements.
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
154
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Registr Shareholding Ratio
Main Places
Name of Subsidiary ation Nature of Business (%) Obtaining Method
of Operation
Place direct indirect
Under the same
Guangz Expressway
Guangfo Expressway Co., Ltd. Guangzhou 75.00% control business
Management
hou
combination
Investment in
Guangdong Expressway Technology Guangz technical industries
Guangzhou 100.00% Investment
Investment Co., Ltd.
hou and provision of
relevant
Under the same
Guangzhuo Guangzhu Traffic
Guangz Investment
Guangzhou 100.00% control business
Investment Management Co., Ltd.
hou management
combination
Under the same
Jingzhu Expressway Guangzhu Guangz Expressway
Zhongshan 20.00% 55.00% control business
Section Co.,Ltd.（Notes） hou 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.
Guangzhou Guangzhu Traffic Investment Management Co., Ltd. holds 55% equity in Guangzhu Section Co.,
Ltd. of Beijing-Zhuhai Expressway.
(2) Important Non-wholly-owned Subsidiary
In RMB
Shareholding
Profit or Loss Owned Dividends Distributed Equity Balance of the
Ratio of
by the Minority to the Minority Minority Shareholders
Name of Subsidiary Minority
Shareholders in the Shareholders in the in the End of the
Shareholders
Current Period Current Period Period
(%)
Guangfo Expressway Co., Ltd. 25.00% 35,631,805.76 64,914,807.35 110,721,305.45
155
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Jingzhu Expressway Guangzhu
25.00% 71,467,885.81 158,471,897.94 232,591,404.70
Section Co.,Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion
Nil
156
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Name Current Non- current Current Non- current Non- current Current Non- current Total
Total assets Total liabilities Current assets Total assets
assets assets Liabilities liabilities assets Liabilities liabilities liabilities
Guangfo
Expresswa 478,939,446.36 24,093,537.24 503,032,983.60 60,147,761.80 60,147,761.80 590,663,709.13 27,675,485.80 618,339,194.93 58,321,966.77 58,321,966.77
y Co., Ltd.
Jingzhu
Expresswa
y
144,135,264.47 2,191,608,535.63 2,335,743,800.10 280,965,311.82 1,124,412,869.47 1,405,378,181.29 432,281,073.29 2,301,876,076.48 2,734,157,149.77 419,370,011.85 1,036,405,470.57 1,455,775,482.42
Guangzhu
Section
Co.,Ltd.
In RMB
Amount of current period Amount of previous period
Total Cash flows from Cash flows from
Name Business Total Comprehensive
Business income Net profit Comprehensive operating Net profit operating
income income
income activities activities
Guangfo Expressway Co., Ltd. 231,359,875.86 142,527,223.05 142,527,223.05 146,829,390.44 226,325,833.32 142,435,343.71 142,435,343.71 145,431,353.01
Jingzhu Expressway Guangzhu
613,528,787.18 285,871,543.23 285,871,543.23 390,248,834.50 645,871,184.09 336,091,139.89 336,091,139.89 433,240,710.71
Section Co.,Ltd.
Other notes：
157
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Nil
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Nil
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
Nil
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting
treatment of the
Main operating Registration investment of
Name Business nature
place place Directly Indirectly joint venture or
associated
enterprise
Guangdong
Guanghui Guangzhou, Guangzhou, Expressway
30.00% Equity method
Expressway Guangdong Guangdong Management
Co., Ltd.
Zhaoqing
Yuezhao Zhaoqing, Zhaoqing, Expressway
25.00% Equity method
Highway Co., Management
Guangdong Guangdong
Ltd.
Shenzhen
Huiyan Shenzhen Shenzhen Expressway
33.33% Equity method
Expressway Guangdong Guangdong Management
Co., Ltd.
Guangdong
Jiangzhong Zhongshan , Guangzhou,Gu Expressway
15.00% Equity method
Expressway Guangdong angdong Management
Co., Ltd.
Ganzhou
kangda Gangzhou, Gangzhou, Expressway
30.00% Equity method
Expressway Jiangxi Jiangxi Management
Co., Ltd.
Ganzhou
Gangzhou, Gangzhou, Expressway
Gankang 30.00% Equity method
Jiangxi Jiangxi Management
Expressway
158
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Co., Ltd.
Guangdong
Yueke
Guangzhou, Guangzhou, Hande all kinds
Technology 20.00% Equity method
Guangdong Guangdong of small loans
Petty Loan Co.,
Ltd.
Guangyuan
Security
Securities Co., Hefei, Anhui Hefei, Anhui 2.37% Equity method
business
Ltd.
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Nil
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Guangdong, Jiangzhong Expressway Co., Ltd and 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-beginning balance/ Amount of previous
Year-end balance/ Amount of current period
period
Guangdong Guanghui Zhaoqing Yuezhao Guangdong Guanghui Zhaoqing Yuezhao
Expressway Co., Ltd. Highway Co., Ltd. Expressway Co., Ltd. Highway Co., Ltd.
Current assets 1,037,374,944.35 223,190,616.84 886,631,849.70 196,254,075.84
Including：Cash and
649,776,493.58 203,757,595.19 621,540,000.54 180,784,827.23
cash equivalent
Non-current assets 3,684,003,696.57 1,503,858,440.11 3,813,612,927.86 1,565,557,770.89
Total assets 4,721,378,640.92 1,727,049,056.95 4,700,244,777.56 1,761,811,846.73
Current liabilities 380,259,354.55 170,743,108.11 544,082,765.04 151,065,956.20
Non-current liabilities 750,585,884.83 429,171,145.43 847,757,933.94 382,056,538.13
Total liabilities 1,130,845,239.38 599,914,253.54 1,391,840,698.98 533,122,494.33
Attributable to
shareholders of the 3,590,533,401.54 1,127,134,803.41 3,308,404,078.58 1,228,689,352.40
parent company
Share of net assets
1,077,160,020.46 281,783,700.85 992,521,223.58 307,172,338.10
calculated by stake
Book value of equity
1,077,160,020.46 281,783,700.85 992,521,223.58 307,172,338.10
investment in joint
159
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
ventures
Operating income 917,898,192.73 271,809,006.27 878,931,209.54 264,667,911.36
Financial expenses 10,890,126.55 8,018,895.83 18,892,654.01 11,944,947.35
Income tax expenses 159,573,250.38 36,249,025.63 152,535,401.50 39,485,100.11
Net profit 478,273,173.41 111,276,912.65 447,126,957.50 114,543,781.53
Total comprehensive
478,273,173.41 111,276,912.65 447,126,957.50 114,543,781.53
income
Dividends received
from joint ventures this 84,638,655.14 53,207,865.41 37,805,847.20 43,088,859.48
year
Other notes
160
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Shenzhe
Guangdong Guangdong
n Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Guoyuan Ganzhou Yueke Guoyuan
Huiyan Jiangzhong Gankang Huiyan Jiangzhong Gankang
Kangda Technology Securities Co., Kangda Technology Securities Co.,
Express Expressway Expressway Expressway Expressway Expressway
Expressway Petty Loan Ltd. Expressway Petty Loan Co., Ltd.
way Co., Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Ltd
Ltd.
Current 203,740,2
197,428,062.33 55,202,301.36 291,779,329.73 1,435,055,907.93 61,855,277,205.05 153,631,998.00 86,313,236.14 35,495,996.32 270,093,954.27 1,394,967,072.45 42,721,180,653.50
assets 50.60
Non-cur
579,942,5
rent 1,616,367,531.02 1,442,449,120.81 1,326,869,593.48 8,497,468.27 23,466,136,337.81 569,633,252.71 1,701,322,494.90 1,463,543,288.08 1,372,121,014.40 8,047,674.82 35,374,232,070.51
39.84
assets
Total 783,682,7
1,813,795,593.35 1,497,651,422.17 1,618,648,923.21 1,443,553,376.20 85,321,413,542.86 723,265,250.71 1,787,635,731.04 1,499,039,284.40 1,642,214,968.67 1,403,014,747.27 78,095,412,724.01
assets 90.44
Current
31,708,44
liabilitie 210,083,276.93 112,133,062.29 81,897,874.17 73,463,278.19 47,675,073,040.50 31,603,980.10 170,304,772.67 72,629,731.89 109,921,418.26 40,797,858.70 46,417,460,063.63
5.60
s
Non-cur
rent 12,000,00
362,000,000.00 664,436,870.32 820,307,181.39 553,525.66 13,076,057,576.44 448,500,000.00 693,126,157.44 832,307,181.39 636,518.58 6,989,817,868.77
Liabiliti 0.00
es
Total
43,708,44
liabilitie 572,083,276.93 776,569,932.61 902,205,055.56 74,016,803.85 60,751,130,616.94 31,603,980.10 618,804,772.67 765,755,889.33 942,228,599.65 41,434,377.28 53,407,277,932.40
5.60
s
161
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Shenzhe
Guangdong Guangdong
n Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Guoyuan Ganzhou Yueke Guoyuan
Huiyan Jiangzhong Gankang Huiyan Jiangzhong Gankang
Kangda Technology Securities Co., Kangda Technology Securities Co.,
Express Expressway Expressway Expressway Expressway Expressway
Expressway Petty Loan Ltd. Expressway Petty Loan Co., Ltd.
way Co., Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Ltd
Ltd.
Minorit
y
Shareho 235,126,897.17 11,457,327.58 263,112,578.63 11,368,910.62
lders’
Equity
Shareho
lders’
equity
attributa
739,974,3
ble to 1,241,712,316.42 721,081,489.56 716,443,867.65 1,134,409,675.18 24,558,825,598.34 691,661,270.61 1,168,830,958.37 733,283,395.07 699,986,369.02 1,098,467,791.36 24,676,765,880.99
44.84
shareho
lders of
the
parent
Pro rata
share o
f the net 246,658,1
186,256,847.46 216,324,446.87 214,933,160.30 226,881,935.03 580,883,093.44 230,553,756.87 175,324,643.76 219,985,018.52 209,995,910.71 219,693,558.27 583,672,702.24
assets c 14.95
alculate
d
--Good 206,725,818.02 206,725,818.02
162
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Shenzhe
Guangdong Guangdong
n Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Guoyuan Ganzhou Yueke Guoyuan
Huiyan Jiangzhong Gankang Huiyan Jiangzhong Gankang
Kangda Technology Securities Co., Kangda Technology Securities Co.,
Express Expressway Expressway Expressway Expressway Expressway
Expressway Petty Loan Ltd. Expressway Petty Loan Co., Ltd.
way Co., Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Ltd
Ltd.
will
The boo
k value
of equit
246,658,1
y invest 186,256,847.46 216,324,446.87 214,933,160.30 226,881,935.03 787,608,911.46 230,553,756.87 175,324,643.76 219,985,018.52 209,995,910.71 219,693,558.27 790,398,520.26
14.95
ments i
n joint v
entures
Fair
value of
equity
investm
ent of
associat
896,321,336.64 555,621,862.28
ed
enterpri
ses with
open
quotatio
n
Buinses 117,304,8 242,978,582.04 120,016,044.66 86,684,080.43 71,544,176.43 1,616,521,271.21 121,958,669.64 238,655,329.27 113,055,381.54 78,967,126.91 91,160,960.52 1,109,717,564.95
163
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Shenzhe
Guangdong Guangdong
n Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Guoyuan Ganzhou Yueke Guoyuan
Huiyan Jiangzhong Gankang Huiyan Jiangzhong Gankang
Kangda Technology Securities Co., Kangda Technology Securities Co.,
Express Expressway Expressway Expressway Expressway Expressway
Expressway Petty Loan Ltd. Expressway Petty Loan Co., Ltd.
way Co., Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Ltd
Ltd.
s incme 47.55
Net 48,313,07
72,881,358.05 57,798,094.49 16,457,498.63 43,992,902.36 432,745,658.33 53,441,605.08 45,984,003.63 46,129,129.35 10,167,378.44 36,989,232.30 211,597,500.90
profit 4.35
Other
compre
6,888,669.24 -210,693,647.23
hensive
income
Total
compre 48,313,07
72,881,358.05 57,798,094.49 16,457,498.63 43,992,902.36 439,634,327.57 53,441,605.08 45,984,003.63 46,129,129.35 10,167,378.44 36,989,232.30 903,853.67
hensive 4.35
income
Dividen
ds recei
ved fro
m assoc 3,789,200.79 11,940,297.90
iates du
ring the
year
Other notes
164
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
(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
X. Risks Related to Financial Instruments
The main financial instruments of the Company include equity investments, financial products, trust
investments, accounts receivable, accounts payable etc., please refer to Note 6 for detail of related items. The risk
associated with financial instruments, and risk management policies which the Company uses to reduce these risks
are described below. The management of the Company manages and supervises the risks to ensure that the risks
can be controlled within a limited range.
The Company uses sensitivity analysis techniques to analyze the impact of reasonable and possible changes
in risk variables on current profit and loss or shareholders' equity. Since any risk variable seldom changes in
isolation, and the correlation between variables will have a significant impact on the final amount of change in a
risk variable, the following is assumed to be independent of each variable.
(I)The targets and policies of risk management
The target of risk management is to obtain the proper balance between the risk and benefit, to reduce the
negative impact that is caused by the risk of the Company to the lowest level, and to maximize the benefits of
shareholders and other equity investors. Based on the targets of risk management, the basic strategy of the
Company’s risk management is to identify and analyze the risks which are faced by the Company, establish
suitable risk tolerance baseline and proceed the risk management, and supervise a variety of risks timely and
reliably, and control the risks within a limited range.
1.Market risk
165
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（1）Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign exchange risk is
mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder dividends, other major
business activities of our Company are settled in RMB. During the reporting period, due to the short credit period
of the Company's income and expenditure related to foreign currency, it was not affected by foreign exchange
risk.
（2）Interest rate risk
The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly
related to floating rate bank borrowings (see this Section VII 23). The Company's policy is to maintain the floating
interest rate of these borrowings, and at the same time to reasonably reduce the risk of interest rate fluctuation by
shortening the term of a single loan and specifically agreeing on prepayment terms.
（3）Other price risk
The investments held by the Company are classified as financial assets measured at fair value and whose
changes are included in other comprehensive income (financial assets available for sale on or before December 31,
2018) and are measured at fair value on the balance sheet date. Therefore, the Company bears the risk of changes
in the securities market.
2.Credit risk
On June 30, 2019, the largest credit risk exposure that may cause financial losses of the Company mainly
comes from the loss of financial assets of the Company caused by the failure of the other party to perform its
obligations.
In order to reduce credit risk, the Company only deals with recognized and reputable customers. In addition,
the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate
bad debt provisions are made for unrecoverable amounts. Consequently, the Company's management believes that
the Company's credit risk has been greatly reduced.
3.Liquidity risk
When managing liquidity risks, the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.
(II) Transfer of financial assets
Nil
(III) Offsetting of financial assets and financial liabilities
Nil
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fir value Fir value Fir value
Items
measurement measurement measurement Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value -- -- -- --
166
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
measurement
（3）Other equity instrument investment 896,321,336.64 896,321,336.64
Total assets continuously measured at fair
896,321,336.64 896,321,336.64
value
II. Non –persistent measure -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of June 30, 2019 of 3.81 yuan, the final calculation of fair value was
896,321,336.64 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
At the end of the period, the fair value of financial assets and financial liabilities held by the Company that
are not measured at fair value is as follows:
Items Book value Fair values Rem
Balance at Beginning Ending amount Affiliated ark
of the Year hierarchy
167
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Financial assets not measured at fair 798,348,301.73 798,348,301.73 798,348,301.73
value
Investment in other equity instruments 798,348,301.73 798,348,301.73 798,348,301.73
Financial liabilities not measured at fair
value
9. The valuation method and relevant information description of the fair value change caused by the enterprise's
own credit risk of financial assets and financial liabilities designated as fair value measurement and whose
changes are included in current profits and losses
Nil
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
Register
Redistricted company of the company of the
Name ed Nature
capital Company's Company’s vote
address
shareholding ratio ratio
Equity
management,
traffic
Guangdong communication Guangzh
infrastructure 26.8 billion 24.55% 50.12%
Group Co., Ltd ou
construction and
railway project
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, 2019,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; The
value-added communication business.
The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see Note IX(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
168
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Company in reporting period, or form balance due to related party transactions in previous period:
Nil
4. Other Related parties
Name Relation with the Company
Guangdong Litong Real Estate Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guanghui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co., Ltd.
Guangdong Guangle Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Jiangzhong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Co., ltd. Fully owned subsidiary of the parent company
Guangdong Humen Bridge Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu Traffic Technology Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Gaoda Property Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Two Guang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hehui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Jiangzhao Expressway Management Center Fully owned subsidiary of the parent company
Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Lluoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Meihe Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Ninghua Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yuedong Expressway Industry Development Co.,
Fully owned subsidiary of the parent company
Ltd.
Guangshenzhu Expressway Co., Ltd. Fully owned subsidiary of the parent company
Heyuan Helong Expressway Co., Ltd. Fully owned subsidiary of the parent company
169
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Name Relation with the Company
Yunfu Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Industry Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Road & Bridge Construction Development Co.,
Fully owned subsidiary of the parent company
Ltd.
Guangdong Zhaoyang Expressway Co., ltd. Fully owned subsidiary of the parent company
Guangdong Baomao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Taishan Coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Chaohui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangfo Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Pingxing Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co., Controlled by the same parent company and equity
Ltd. participation unit
Controlled by the same parent company and equity
Guangdong Guangzhu West Line Expressway Co., Ltd.
participation unit
Baoli Changda Engineering Co., Ltd. Shareholding unit of parent company
Controlled by the same parent company and equity
Guangdong Shenshan Expressway Co., Ltd.
participation unit
Guangzhongjiang Expressway Project Management Center Managed by the parent company
Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company
Guangdong Nanyue Traffic Renbo Expressway Management
Managed by the parent company
Center
Guangdong Nanyue Traffic Shaogan Expressway Management
Managed by the parent company
Center
Guangdong Nanyue Traffic Yunzhang Expressway
Managed by the parent company
Management Center
Guangdong Nanyue Traffic Renhui Expressway Management
Managed by the parent company
Center
170
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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
Amount of Amount of Over the
Content of related Amount of
Related parties current previous trading
transaction last period
period period limit or not
Baoli Changda Engineering Co., Ltd. Service charge 2,440.62
Guangdong Litong Technology Investment
Project fund 784,739.50
Co., Ltd.
Guangdong Humen Bridge Co., Ltd. Project fund, service 539,307.09
Guangdong Tongyi Expressway Service Area
Service 103,076.37 259,399.97
Co., Ltd
Maintenance
Guangdong Lulutong Co., Ltd. 715,406.99 25,393.54
charges
Guangdong Union electronic services co., Ltd. Service 3,767,825.78 8,075,494.51
Guangdong Expressway Media Co., Ltd. Electric charge 6,431.59
Guangdong Guanghui Expressway Co., Ltd. Interest 2,014,593.75 1,349,043.75
Guangdong Jiangzhong Expressway Co., Ltd. Interest 708,615.00
Ganzhou Gankang Expressway Co., Ltd. Interest 765,623.34
Guangdong Expressway Media Co., Ltd. Service 606,132.08
Guangdong East Thinking Management
Service 60,000.00 60,000.00
Technology Development Co., Ltd.
183,277,074. 34,838,755.4
Baoli Changda Engineering Co., Ltd. Purchase assets
35 9
uangdong Hualu Traffic Technology Co., Ltd. Purchase assets 459,346.00 1,548,686.53
Guangdong Xinyue traffic Investment Co.,
Purchase assets 6,688,119.43
Ltd.
Related transactions on sale goods and receiving services
In RMB
Amount of current Amount of previous
Related party Content
period period
Jingzhu Expressway Guangzhu North section Commission
9,516,226.40 8,092,547.17
Co., Ltd. management fee
Guangdong Expressway Co., Ltd. Project fund 2,052,036.80 2,192,131.13
171
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount of current Amount of previous
Related party Content
period period
Guangdong Highway Construction Co., Ltd. Project fund 603,570.34 212,264.16
Guangdong Road & Bridge Construction
Project fund 120,550.07 267,452.83
Development Co., Ltd.
Guangshenzhu Expressway Co., Ltd. Project fund 114,655.17
Guangdong Boda Expressway Co., Ltd. Project fund 107,547.17 117,452.83
Guangdong Kaiyang Expressway Co., Ltd. Project fund 89,142.85 134,035.68
Yunfu Guangyun Expressway Co., Ltd. Project fund 69,535.81 35,377.36
Guangdong Traffic Industry Investment Co.,
Project fund 59,433.96
Ltd.
Guangdong Xinyue Traffic Investment Co., Ltd. Project fund 32,212.39
Guangdong West Line Expressway Co., Ltd. Project fund 234,905.66
Guangdong Humen Bridge Co., Ltd. Project fund 29,716.98 26,886.79
Guangdong Chaohui Expressway Co., Ltd. Project fund 192,452.83
Guangdong Guangfo Expressway Co., Ltd. Project fund 154,245.28
Guangdong Guanghui Expressway Co., Ltd. Project fund 144,339.62
Guangdong Guangle Expressway Co., Ltd. Project fund 142,924.53
Zhaoqing Yuezhao Highway Co., Ltd. Project fund 123,113.21 101,886.79
Guangdong Zhongjiang Expressway Project
Project fund 89,622.64
Management Dept
Guangdong Jiangzhong Expressway Co., Ltd. Project fund 169,001.14 82,075.47
Guangdong Taishan Coastal Expressway Co.,
Project fund 59,433.96
Ltd.
Guangdong Litong Technology Investment Co.,
Project fund 35,384.62
Ltd.
Shezhen Huiyan Expressway Co., Ltd. Project fund 663,319.81 26,886.79
Guangdong Yueyun Triffic Co., Ltd. Project fund 21,226.42
Notes
（2）Related trusteeship/contract
Nil
(3) Information of related lease
The Company was lessor：
In RMB
172
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
The lease income confirmed The lease income confirmed
Name of lessee Category of lease assets
in this year in last year
Guangdong Expressway Advertising lease
195,542.86 1,748.41
Media Co., Ltd.
- The company was lessee：
In RMB
The lease income confirmed
Lessor Category of leased assets Category of leased assets
in this year
Guangdong Litong Real Office space
4,469,957.38 4,406,113.37
Eatate Investment Co., Ltd
Guangdong Guanghui Advertising column lease
884,200.00
Expressway Co., Ltd.
Zhaoqing Yuezhao Highway
Advertising column lease 124,031.25
Co., Ltd.
Guangzhou Yueyun Traffic
Car rental fee 42,400.00 97,530.00
Co., Ltd.
Guangdong Gaoda Property Office space
52,686.57 7,230.00
Development Co., Ltd.
Notes
（4）Related-party guarantee
The Company was Guarantor
Nil
The Company was secured party
In RMB
Execution
Guarantor Guarantee amount Start date End date accomplished or
not
Guangdong Communication
1,725,000,000.00 September 25,2012 March 25,2020 No
Group Co., Ltd.
(5) Inter-bank lending of capital of related parties
In RMB
Amount
Related party borrowed and Initial date Due date Notes
loaned
Borrowed
173
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Guangdong Guanghui
30,000,000.00 April 1,2019 March 31,2020
Expressway Co., Ltd.
Guangdong Guanghui
105,000,000.00 April 2,2019 April 1,2020
Expressway Co., Ltd.
Guangdong Guanghui
45,000,000.00 May 22,2018 May 21,2019
Expressway Co., Ltd.
Guangdong Jiangzhong
36,000,000.00 November 14,2018 November 13,2023
Expressway Co Loaned., Ltd.
Loaned
(6) Related party asset transfer and debt restructuring
Nil
(7) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
2,417,800.00 2,415,100.00
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
189,879,309.18 381,881,836.28
Balance of Deposit
6,226,669.02 3,752,689.53
Interest Income
Reference to the deposit rate of the people's Bank of China for
Pricing Principle
the same period
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
174
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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.
③The subsidiary Guangdong Gaosu Science and Technology Investment Co., Ltd. signed the Blue Channel
Related Asset Transfer Contract with the affiliated party Guangdong Unitoll Collection Inc, transferring the rights
related to the Blue Channel that have not been developed and completed as an asset group to the affiliated party
Guangdong Unitoll Collection Inc at a transfer price of RMB 19,881,200.00, see Note VII, 40 for details.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Account
Guangdong Humen Bridge Co., Ltd. 23,560,330.99 12,579,159.31
receivable
Account Guangdong Union electron Service Co.,
47,675,526.05 45,159,424.41
receivable Ltd.
Account Jingzhu Expressway Guangzhu North
4,819,475.01 5,280,850.02
receivable Section Co., Ltd.
Account
Guangdong Expressway Co., Ltd. 2,579,058.00 873,408.00
receivable
Account Guangdong Highway Construction Co.,
699,980.00 358,484.00 109,152.00
receivable Ltd.
Account Guangdong Xinyue Traffic Investment
532,703.53 188,155.61 1,828,273.53 202,508.01
receivable Co., Ltd.
Account Guangdong Kaiyang Expressway Co.,
267,300.00 178,157.15
receivable Ltd.
Account
Guangdong Boda Expressway Co., Ltd. 114,000.00
receivable
Account Guangdong Road & Bridge Construction
108,000.00
receivable Development Co., Ltd.
Account Guangdong Zhongjiang Expressway
95,000.00 95,000.00
receivable Priject Management Dept
175
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Account Guangdong Jiangzhao Expressway
78,000.00 156,000.00
receivable Management Center
Account
Yunfu Guangyun Expressway Co., Ltd. 76,000.00
receivable
Account Guangdong Litong Technology
68,542.00 6,854.20
receivable Investment Co., Ltd.
Account Tuangdong Taishan Coastal Expressway
63,000.00 63,000.00
receivable Co., Ltd.
Account Guangdong Traffic Industry Investment
63,000.00
receivable Co., Ltd.
Account Guangdong Guanghui Expressway Co.,
21,125.65 901,822.65
receivable Ltd.
Account Guangdong Guangzhu West Line
294,260.00
receivable Expressway Co., Ltd.
Account
Guangdong Yueyun Traffic Co., Ltd. 45,000.00
receivable
Account
Zhaoqing Yuezhao Highway Co., Ltd. 135,329.98 4,829.98
receivable
Advanced Guangdong Litong Real Estate
735,092.38 735,092.38
payment Investment Co., Ltd.
Advanced
Zhaoqing Yuezhao Highway Co., Ltd. 20,671.75 144,702.50
payment
Other Account Guangdong Litong Real Estate
1,515,077.22 1,505,864.00
receivable Investment Co., Ltd.
Other Account Guangdong Guanghui Expressway Co.,
1,462,587.90 1,478,904.68
receivable Ltd.
Other Account
Guangdong Expressway Co., Ltd. 607,620.98 630,778.47
receivable
Other Account
Zhaoqing Yuezhao Highway Co., Ltd. 429,558.65 437,463.87
receivable
Other Account Guangdong Xinyue Traffic Investment
423,767.60 415,442.60
receivable Co., Ltd.
Other Account
Guangshenzhu Expressway Co., Ltd. 185,014.40 187,533.46
receivable
Other Account Guangdong Tongyi Expressway Service 160,191.20
176
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
receivable Area Co., Ltd.
Other Account Guangdong Guangzhu West Line
104,727.60 186,371.32
receivable Expressway Co., Ltd.
Other Account
Guangdong Expressway Media Co., Ltd. 126,660.80 275,166.57
receivable
Other Account Guangdong Highway Construction Co.,
133,083.25 129,529.29
receivable Ltd.
Other Account Guangdong Road & Bridge Construction
73,773.60 121,948.14
receivable Development Co., Ltd.
Other Account
Guangdong Boda Expressway Co., Ltd. 51,808.80 52,467.45
receivable
Other Account Guangdong Jiangzhong Expressway Co.,
28,120.00 28,474.26
receivable Ltd.
Other Account Guangdong Gaoda Property
15,906.00 11,748.00
receivable Development Co., Ltd.
Other Account Guangdong Shenshan Expressway East
12,000.00 12,081.56
receivable Section Co., Ltd.
Other Account
Guangdong Humen Bridge Co., Ltd. 11,306.50 9,141.89
receivable
Other Account Guangdong Maozhan Expressway Co.,
8,747.20 14,074.11
receivable Ltd.
Other Account Guangdong Shanfen Expressway Co.,
8,028.80 8,028.80
receivable Ltd.
Other Account Guangdong Baomao Expressway Co.,
7,633.60 7,633.60
receivable Ltd.
Other Account Guangdong Yuedong Expressway
7,367.20 7,367.20
receivable Industry Development Co., Ltd.
Other Account Guangdong Guangle Expressway Co.,
7,248.00 29,832.90
receivable Ltd.
Other Account Guangdong Yangmao Expressway Co.,
6,004.80 29,265.49
receivable Ltd.
Other Account Guangdong Zhaoyang Expressway Co.,
4,304.00 4,304.00
receivable Ltd.
Other Account
Guangdong Yueyun Traffic Co., Ltd. 3,032.00 3,032.00
receivable
177
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Other Account Guangdong Kaiyang Expressway Co.,
45,999.77
receivable Ltd.
Other Account Guangdong Jingzhu Expressway
6,064.00 6,202.46
receivable Guangzhu Section Co., Ltd.
Other Account
Yunfu Guangyun Expressway Co., Ltd. 5,831.32
receivable
Other Account Guangdong Litong Technology
5,273.00 5,273.00
receivable Investment Co., Ltd.
Other Account Guangdong Guangfo Expressway Co.,
3,619.10
receivable Ltd.
Other Account Hongkong Zhuhai Macao Bridge
3,000.00 3,000.00
receivable Connection line management center
Other Account Guangdong Chaohui Expressway Co.,
2,819.90
receivable Ltd.
Other Account Guangdong Two Guang Expressway
1,656.69
receivable Co., Ltd.
Other Account
Guangdong Meihe Expressway Co., Ltd. 574.17
receivable
Other Account
Heyuan Helong Expressway Co., Ltd. 467.14
receivable
Other Account Guangdong Ninghua Expressway Co.,
271.81
receivable Ltd.
Other Account
Guangdong Hehui Expressway Co., Ltd. 90.20
receivable
Dividend
Ganzhou Kangda Expressway Co., Ltd. 21,000,000.00
receivable
Dividend
Guiyuan Securities Co., Ltd. 11,940,297.90
receivable
Other
Non-Current Baoli Changda Engineering Co., Ltd. 18,380,900.94 4,216,292.57
Assets
Other
Guangdong Xinyue Traffic Investment
Non-Current 823,423.25
Co., Ltd.
Assets
Other Guangdong Hualu Traffic Technology 796,711.00
178
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Non-Current Co., Ltd.
Assets
Long-term Guangdong Jingzhu Expressway
1,168,273.16 1,221,781.88
amortization costs Guangzhu North Section Co., Ltd.
（2）Payables
In RMB
Amount at year Amount at year
Name Related party
end beginning
Account payable Baoli Changda Engineering Co., Ltd. 25,350,090.00 12,166,883.00
Account payable Guangdong Highway Construction Co., Ltd. 25,630,651.00 25,630,651.00
Account payable Guangdong Expressway Co., Ltd. 8,746,491.18 8,746,491.18
Account payable Guangdong Xinyue Traffic Investment Co., Ltd. 1,829,141.32 1,829,141.32
Account payable Guangdong Union Electron Service Co.,Ltd. 914,439.52
Account payable Guangdong Litong Technology Investment Co., Ltd. 772,350.00 1,631,800.00
Account payable Guangdong Guanghui Expressway Co., ltd. 551,400.00 551,400.00
Account payable Guangdong Hualu Traffic Technology Co., Ltd. 89,540.00 2,913,206.00
Account payable Guangzhou Xinyue Asphalt Co., Ltd. 2,537,848.10
Account payable Guangdong Maozhen Expressway Co., Ltd. 124,012.02 120,000.00
Interest payable Guangdong Guanghui Expressway Co., Ltd. 1,324,575.00 1,096,200.00
Interest payable Guangdong Jiangzhong Expressway Co., Ltd. 39,150.00 43,065.00
Other Payable account Guangdong Guanghui Expressway Co., Ltd. 134,979,941.98 45,000,000.00
Guangdong Zhongjiang Expressway Project Management
Other Payable account 28,200,000.00 200,491.55
Dept
Other Payable account Baoli Changda Engineering Co., Ltd. 14,612,208.16 11,346,061.22
Other Payable account Guangdong Union Electron Service Co.,Ltd. 5,033,004.70 3,800,226.36
Other Payable account Guangdong Xinyue Traffic Investment Co., Ltd. 1,679,918.51 1,779,918.51
Other Payable account Guangdong LHualu Traffic Technology Co., Ltd. 370,887.88 786,185.88
Other Payable account Guangdong Kaiyang Expressway Co., Ltd. 264,132.19
Other Payable account Guangdong Litong Technology Investment Co., Ltd. 232,127.70 203,655.20
Guangdong East Thinking Management Technology
Other Payable account 210,188.00 531,573.69
Development Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount at year Amount at year
Name Related party
end beginning
Other Payable account Guangdong Jiangzhong Expressway Co., Ltd. 149,269.03
Other Payable account Guangdong Maozhan Expressway Co., Ltd. 124,012.02
Other Payable account Guangdong Xintai Expressway Co., Ltd. 122,659.13
Other Payable account Guangdong Tongyi Expressway Service Area Co., Ltd. 120,000.00 120,000.00
Other Payable account Guangdong Expressway Media Co., Ltd. 70,000.00 70,000.00
Guangdong Jingzhu Expressway Guangzhu North Section
Other Payable account 68,454.90 9,327.00
Co., Ltd.
Other Payable account Guangdong Jiangzhao Expressway Management Center 59,092.11 7,217.12
Other Payable account Guangdong Lulutong Co., Ltd. 48,000.00 165,249.80
Other Payable account Guangdong Zhaoyang Expressway Co., Ltd. 32,513.24 2,145.78
Other Payable account Guangdong Traffic Industry Investment Co., Ltd. 23,026.67 2,347.68
Other Payable account Guangdong Yangmao Expressway Co., Ltd. 21,402.56
Other Payable account Guangdong Guangzhu West Line Expressway Co., Ltd. 16,226.72
Other Payable account Guangdong Expressway Co., Ltd. 257,336.62 15,342.09
Other Payable account Guangdong Shenfen Expressway Co., Ltd. 2,660.62 751.35
Other Payable account Guangshenzhu Expressway Co., Ltd. 2,395.56
Guangdong Yuedong Expressway Industry Development
Other Payable account 1,838.56 1,018.37
Co., Ltd.
Other Payable account Guangdong Yunwu Expressway Co., Ltd. 1,497.93
Other Payable account Guangdong Tianshan Expressway Co., Ltd. 640.96
Other Payable account Guangdong Lluoyang Expressway Co., Ltd. 500.75 319.21
Other Payable account Heyuan Helong Expressway Co., Ltd. 352.54
Other Payable account Guangdong Boda Expressway Co., Ltd. 219.13 100.97
Other Payable account Guangdong Hehui Expressway Co., Ltd. 32.93
Guangdong Road & Bridge Construction Development Co.,
Other Payable account 5,572.94 551.99
Ltd.
Other Payable account Guangdong Highway Construction Co., Ltd. 20,973.36 689.83
Other Payable account Guangdong Baomao Expressway Co., Ltd. 3,206.11
Guangdong Nanyue Traffic Yunzhan Expressway
Other Payable account 821.38
Management Center
Guangdong Nanyue Traffic Shaogan Expressway
Other Payable account 546.89
Management Center
Other Payable account Shenzhen Huiyan Expressway Co., Ltd. 391.36
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Amount at year Amount at year
Name Related party
end beginning
Guangdong Nanyue Traffic Chaozhang Expressway
Other Payable account 282.67
Management Center
Guangdong Nanyue Traffic Renbo Expressway
Other Payable account 225.79
Management Center
Other Payable account Guangdong Pingxing Expressway Co., LTD. 45.41
Other Payable account Guangdong Jiangzhong Expressway Co., Ltd. 36,000,000.00 36,000,000.00
7. Related party commitment
Nil
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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 30,2019, The accumulated expenses
occurred of Sanboto Shuikou Highway extension project was 1.945 billion yuan.
No Contract Counterparty Economic Content Contract Amount Fulfilled as of June 30, 2019
1 China Railway Tunnel Group Co., Ltd. Civil Engineering 251,026,485.00 220,694,631.00
2 Boli Changda Engineering Co., Ltd. Civil Engineering 624,878,240.00 422,197,236.40
3 China Railway 18th Bureau Group Co., 219,974,609.00 174,338,854.20
Civil Engineering
Ltd.
4 CCCC First Navigation Engineering 355,014,108.00 256,524,868.12
Civil Engineering
Bureau Co., Ltd
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be stated
Nil
(3) Contingent liabilities relating to investments in joint ventures or associated enterprises
See Section 9, Rights and Interests in Other Subjects.
(4) Other contingent liabilities and their financial impact
As of June 30,2019,The company does not disclose the pension plan undisclosed matter should exist.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
XV. Events after balance sheet date
1. Significant events had not adjusted
Nil
2.Profit distribution
Nil
3.Sales return
Nil
4.Notes of other significant event after balance sheet date
Nil
XVI. Other significant events
1.The accounting errors correction in previous period
Nil
2.Debt restructuring
Nil
3.Replacement of assets
Nil
4.Pension plan
Nil
5.Discontinuing operation
Nil
6. Segment information
The company's business for the Guangfo Expressway , the Fokai Expressway and Jingzhu Expressway Guangzhu
Section toll collection and maintenance work, the technology industry and provide investment advice, no other
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
nature of the business, no reportable segment.
7.Other important transactions and events have an impact on investors decision-making
8.Other
(1)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii 035#
collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads 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
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 compensation 25,587,684 yuan for the loss caused by
collapsing of Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to
the (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case
was suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial Government had
not made the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the
proceeding. In September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed
the proceedings. On December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case.
Currently, Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide,
therefore, on January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. On September 17,
2013, the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings,
the court decided to resume the trial. On December 19, 2013, the Guangzhou Maritime Court opened a court
session, has not yet made the first-instance judgment. On March 7, 2014 the Court made the first instance verdict:
the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong compensated the plaintiff Fokai
Expressway Co., Ltd. toll revenue losses of 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
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）The 19th (Provisional)Meeting of the Eighth board of directors of Guangdong Provincial Expressway
Development Co., Ltd. was held of August 7, 2018. The meeting examined and approved the Proposal on Issuing
Medium-Term Notes ， Agree that the company intends to register in the China Interbank Market Dealers
Association with a quota of not more than 3.4 billion yuan (inclusive), which is within 40% of the company's
latest audited net assets. Apply for a one-time or installment in a timely manner, with a term of no less than 5
years (including 5 years), and raise funds to repay the loan and replenish working capital; The matter has been
passed by the resolution of the first interim shareholders' meeting in 2018.
On January 4, 2019, the dealers association issued a Notice of Acceptance of Registration (ZSXZ [2019]
MTN 9). The amount of acceptance of the company's medium-term notes is 3.4 billion yuan, and the amount of
registration is valid for 2 years from the date of receipt of the notice of acceptance, and it is jointly underwritten
by Industrial and Commercial Bank of China Limited and China Construction Bank Limited. The company
borrowed 680 million yuan on March 1, 2019.
(4) According to the Implementation Plan for Accelerating the Electronic Non-stop Quick Toll Application
Services on Expressways (Development and Reform Foundation [2019] No. 935) issued by the National
Development and Reform Commission and the Ministry of Transport and the Notice on Vigorously Promoting the
Development and Application of ETC on Expressways issued by the General Office of the Ministry of Transport,
ETC users of expressway traffic vehicles shall strictly implement the basic preferential policies of not less than
5% of the vehicle tolls since July 1, 2019, and at the same time, from January 1, 2020, adjust the mode of freight
toll charging, and uniformly charge by vehicle (axle) type.
The above policies are expected to have an adverse impact on the Company's operating income, but the specific
impact has not yet determined.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
XVII..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category
Amount Proporti Amount Proportion( Book value Amount Proportio Amount Proportion( Book value
on(%) %) n(%) %)
Accrual of bad debt provision by
single item
Of which：
Accrual of bad debt provision by
17,585,263.17 17,585,263.17 18,405,847.15 100.00% 18,405,847.15
portfolio
Of which：
Total 17,585,263.17 17,585,263.17 18,405,847.15 100.00% 18,405,847.15
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Accrual of bad debt provision by single item: Nil
Accrual of bad debt provision by portfolio:
Account receivable on which bad debt provisions are provided on age basis in the group：
In RMB
Balance in year-end
Name
Receivable accounts Bad debt provision Withdrawal proportion
Within 1 year 17,585,263.17
Total 17,585,263.17 -
Notes of the basis of recognizing the portfolio:
Provision for bad debts according to the age portfolio .
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 17,585,263.17
Within 1 year 17,585,263.17
Total 17,585,263.17
(2) Accounts receivable withdraw, reversed or collected during the reporting period
Nil
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services 17,585,263.17 100.00
Co., Ltd.
Total 17,585,263.17 100.00
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（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
2.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Interest receivable 32,460,868.78 1,880,148.12
Dividend receivable 34,145,770.80 1,205,472.90
Other receivable 6,077,481.50 6,238,161.64
Total 72,684,121.08 9,323,782.66
（1）Interest receivable
1）Interest receivable
In RMB
Items Balance in year-end Balance Year-beginning
Entrusted loan 32,460,868.78 1,880,148.12
Total 32,460,868.78 1,880,148.12
2）Significant dividend receivable aged over 1 year
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1,205,472.90 1,205,472.90
No.1 Limited partnership enterprise
Ganzhou Kangda Expressway Co., Ltd. 21,000,000.00
Gluoyuan Securities Co., Ltd. 11,940,297.90
Total 34,145,770.80 1,205,472.90
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（2）Significant dividend receivable aged over 1 year
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Balance of settlement funds for
30,844,110.43 30,844,110.43
securities transactions
Cash deposit 1,953,995.00 1,930,943.00
Petty cash 1,581,352.00 1,605,100.00
Other 2,542,134.50 2,051,718.64
Current account 650,400.00
Total 36,921,591.93 37,082,272.07
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
30,844,110.43 30,844,110.43
1, 2019
Balance as at January
—— —— —— ——
1, 2019 in current
Banlance as at June
30,844,110.43 30,844,110.43
30,2019
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 3,277,275.23
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Within 1 year 3,277,275.23
1-2 years 1,045,544.39
2-3 years 897,839.00
Over 3 years 31,700,933.31
4-5 years 463,491.88
Over 5 years 31,237,441.43
Total 36,921,591.93
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Account receivable
with single major
amount and
30,844,110.43 30,844,110.43
withdrawal bad debt
provision for single
item
Total 30,844,110.43 30,844,110.43
Of which the significant amount of the reversed or collected part during the reporting period :Nil
4)The actual write-off other accounts receivable: Nil
5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion of the
total year end Closing
Name Nature Closing balance Aging balance of the balance of bad
accounts debt provision
receivable(%)
Securities trading Over 5
Kunlun Securities Co.,Ltd 30,844,110.43 83.54% 30,844,110.43
settlement funds years
Guangdong Litong Real
Deposit 1,505,864.00 2-3 years 4.08%
Estates Investment Co., Ltd.
Petty cash Petty cash 1,340,000.00 Within 1 3.63%
190
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
year
Guangdong Expressway Entrustment
463,491.88 4-5 years 1.26%
Co.,Ltd. management fee
Beijing Shibang Weilishi
Over 5
Property Management Service Deposit 393,331.00 1.07%
years
Co., Ltd. Guangzhou Branch
Total -- 34,546,797.31 -- 93.57% 30,844,110.43
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
Other notes：
3. Long-term equity investment
In RMB
End of term Beginning of term
Impairme Impairme
Items
Book Balance nt Book value Book Balance nt Book value
provision provision
Investment in
1,533,665,008.81 1,533,665,008.81 1,533,665,008.81 1,533,665,008.81
subsidiaries
Investment in
joint ventures 3,237,607,137.38 3,237,607,137.38 3,145,355,906.88 3,145,355,906.88
and associates
Total 4,771,272,146.19 4,771,272,146.19 4,679,020,915.69 4,679,020,915.69
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（1）Investment to the subsidiary
In RMB
Withdrawn
impairmen Closing
Increa Decr t provision balance of
Name Opening balance Closing balance
se ease in the impairment
reporting provision
period
Guangfo Expressway Co., ltd. 154,982,475.25 154,982,475.25
Guangdong Expressway Technology
95,731,882.42 95,731,882.42
Investment Co., Ltd.
Guangzhou Guangzhu Traffic
859,345,204.26 859,345,204.26
Investment Management Co., Ltd.
Jingzhu Expressway Guangzhu
419,105,446.88 419,105,446.88
Section Co., Ltd.
Yuegao Capital Investment (Hengqin)
4,500,000.00 4,500,000.00
Co., Ltd.
Total 1,533,665,008.81 1,533,665,008.81
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Withdraw O Closing
Decre Adjustment
Add Declaration of n t balance of
Name Opening balance ased Gain/loss of of other Other equity Closing balance
invest cash dividends impairme h impairmen
invest Investment comprehensi changes
ment or profit nt e t provision
ment ve income
provision r
I. Joint ventures
Guangdong Guanghui Expressway Co.,
992,521,223.58 143,481,952.02 25,795,500.00 84,638,655.14 1,077,160,020.46
Ltd.
ZhaoqingYuezhao Highway Co., Ltd. 307,172,338.10 27,819,228.16 53,207,865.41 281,783,700.85
Subtotal 1,299,693,561.68 171,301,180.18 25,795,500.00 137,846,520.55 1,358,943,721.31
II. Associated enterprises
ShenzhenHuiyan Expressway Co., Ltd. 230,553,756.87 16,104,358.08 246,658,114.95
Guangdong Jiangzhong Expressway Co.,
175,324,643.76 10,932,203.70 186,256,847.46
Ltd.
Ganzhou Kangda Expressway Co., Ltd. 219,985,018.52 17,339,428.35 21,000,000.00 216,324,446.87
Ganzhou Gankang Expressway Co., Ltd. 209,995,910.71 4,937,249.59 214,933,160.30
Guangdong Yueke Technology Petty Loan
219,693,558.27 7,188,376.76 226,881,935.03
Co., Ltd.
Guoyuan Securities Co.,Ltd. 790,109,457.07 9,910,201.43 -470,449.14 11,940,297.90 787,608,911.46
Subtotal 1,845,662,345.20 66,411,817.91 -470,449.14 32,940,297.90 1,878,663,416.07
Total 3,145,355,906.88 237,712,998.09 -470,449.14 25,795,500.00 170,786,818.45 3,237,607,137.38
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 617,314,121.48 325,665,097.11 638,591,636.62 306,898,726.06
Other 5,812,395.87 3,525,577.41 37,302,631.12 3,411,961.26
Total 623,126,517.35 329,190,674.52 675,894,267.74 310,310,687.32
Whether implemented new revenue guidelines?
□ Yes √ No
Other notes：
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted by
670,160,115.89 621,221,266.51
cost method
Long-term equity investment income accounted by
237,712,998.09 216,777,157.34
equity method
Dividend income from investments in other equity
38,528,868.23
instruments during the holding period
Investment return on investments held to maturity
42,581,144.86
during the holding period
Interest income from debt investment during
29,257,519.49
holding period.
Total 975,659,501.70 880,579,568.71
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current assets 10,537,743.77
Government grants recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 420,227.62
country’s unified standards
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
Net amount of non-operating income and expense except the aforesaid items -904,697.67
Less: .Amount of influence of income tax -796,580.71
Amount of influence of minority interests -597,222.81
Total 11,447,077.24 --
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 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)
Weighted EPS（Yuan/share）
Profit as of reporting period average ROE
EPS-basic EPS-diluted
(%)
Net profit attributable to common
7.53% 0.35 0.35
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
7.41% 0.35 0.35
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
195
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2019
XII. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, 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.
196
