Guangdong Provincial Expressway Development Co., Ltd.
Semi-Annual Report 2009
（Full Text）
Board chairman: Zhou Yu Ming
Stock Abbreviation: Guangdong Expressway A,
Guangdong Expressway B
Stock code: 000429, 200429
August 2009Important Notes
The board of directors and directors of the Company hereby guarantees that there are no false
records, misleading representation or important omissions in semi-annual report and shall assume joint
and several liability for the authenticity, accuracy and completeness of the contents hereof.
All the directors attended and vote the board meeting.
Chairman of board of directors Mr. Zhou Yuming, General Manager of the Company Mr. Li
Xiyuan ,Deputy General Manager and Chief Accountant of the Company Mr. Xiao Laijiu State:
Financial Report in Semi-annual report is true and complete.
The financial report of the semi-annual report has not been audited.
Table of Contents
I. Basic Information of the Company
Ⅱ.Highlights of financial data and indicators
Ⅲ. Change of Share Capital and Shareholding of Principal Shareholders
Ⅳ. Information about Directors, Supervisors and Senior Executives
V. Report of the Board of Directors
VI. Important Events
VII. Financial Report
VIII. Documents Available for Inspection
This report has been prepared in both Chinese and English. In case of any discrepancy,
the Chinese version shall prevail.1
I Basic Information of the Company
(I).Legal name of the company
Name in chinese：广东省高速公路发展股份有限公司
Name in English:Guangdong Provincial Expressway Development Co., Ltd.
English abbreviation:GPED
(II) Legal Representative：Zhou Yuming
(III) Secretary of the Board of Directors and Securities affair representative
Secretary of the Board of Directors
Securities affair representative
Name Zuo Jiang Feng Xinwei
Contact
Address
85 Banyun Road, Guangzhou,
Guangdong Province
85 Banyun Road, Guangzhou,
Guangdong Province
Tel： 020-83731388-230 020-83731388-231
Fax： 020-83731363 020-83731363
E-mail zuoj@gdcg.cn fengxw@gdcg.cn
(IV) Registered address of the Company: 85 Banyun Road, Guangzhou, Guangdong
Province
Office address: 85 Banyun Road, Guangzhou, Guangdong Province
Postal Code: 510100
E-mail：zqb@gdcg.cn
Website: http://www.gpedcl.com
(V) For information disclosure:
Newpapers:
.. Securities Times
.. China Secuties
.. Shanghai Secuties Daily
.. Hongkong Commercial Daily
Web address for Publication of semi-annual Report(appointed by the China Securities Regulatory
Commission):http:// www.cninfo.com.cn
Address for Reference of the Semi-annual report 2009: Securities affair Dept of the
Company
(VI) Stock exchange for listing: Shenzhen Stock Exchange
Stock abbreviation:Guangdong Expressway A, Guangdong ExpresswayB
Stock code：000429、2004292
(VII) Relevant information
1. First Registration Date of the Company: February 9, 1993
Registered Address:：4/F, No.503, Dongfeng Zhong Road, Guangzhou, Guangdong Province
The date of last registration change：December 17,2007
Registered Address：85 Banyun Road, Guangzhou, Guangdong Province
2.Company’s Enterprise Legal Business Registration Number:：440000400006921
3.Company’s Tax Registration Number: 440102190352102
4. Organization Code：19035210-2
5.Compnay’s Auditors:
Lixin Yangcheng Certified Public Accountants Co., Ltd.
Office address：11/F,Yaozhong Plaza, No.3-15 Linhe Xi Road, Tianhe District,Guangzhou3
II Highlights of financial data and indicators
(I) Highlights of financial data and indicators
Unit ：RMB
End of the report
year
End of the
previous year
Increase
/Decrease （％）
Total assets 8,093,877,491.88 7,299,537,500.43 10.88%
Owners’ equity attributable to shareholders of
the listed company
3,511,307,756.68 3,421,104,860.21 2.64%
Share capital 1,257,117,748.00 1,257,117,748.00 0.00%
Net assets per share attributable to
shareholders of the listed
company(RMB/share)
2.79 2.72 2.57%
Report period
(January-June)
Same period last
year
Increase /Decrease
（％）
Total operating income 471,816,749.75 492,935,283.48 -4.28%
Operating profit 300,241,306.83 348,864,543.50 -13.94%
Total profit 300,783,848.17 327,905,405.50 -8.27%
Net profit attributable to shareholders of the
listed company
215,914,671.27 251,244,086.75 -14.06%
Net profit attributable to shareholders of the
listed company after deducting non-recurring
gains and losses
212,985,533.11 262,346,066.80 -18.82%
Basic earnings per share(RMB/share) 0.17 0.20 -15.00%
Diluted earnings per share(RMB/share) 0.17 0.20 -15.00%
Return on equity（%） 6.15% 7.67% -1.52%
Net cash flow arising from operating
activities
207,537,355.80 249,456,540.61 -16.80%
Net cash flow per share arising from
operating activities (RMB/share)
0.17 0.20 -15.00%
(II) Non-recurring gain or loss items and related amount
Unit ：RMB
Items Amount4
Items Amount
（1）Gain/loss form disposal of non-current assets and Provision for impairment
of assets including the preparation of the write-off part .
7,045,378.25
(2)Tax refund, deduction and exemption that is examined and approved by
authority exceeding or has no official approval document.
(3)Governmental Subsidy accounted as current gain/loss, except for those
subsidies at with amount or quantity fixed by the national government and closely
related to the Company’s business operation.
(4)Capital occupation fee collected from non-financial organizations and
accounted as current gain/loss.
（ 5 ） Gain/loss generated when the consolidation costs is less then the
recognizable fair value attributable to the Company.
（6）Non-monetary asset exchange gain/loss.
(7) Gain/loss from consigned investment;
(8) Asset impairment provisions for force majeure such as natural disasters -4,386,536.35
(9) Gain/loss from debt reorganization
(10) Enterprise reorganization expenses, such as payment to stuff placement and
consolidation expenses;
(11) Gain/loss from trades obviously departed from fair value
(12) Net gain/loss of current term from consolidation of subsidiaries under
common control from beginning of term to the consolidation date
(13) Gain/loss from debt forecasting without connection to the main business
operation
（14）In addition to normal business with the company effective hedging related
business, holders of tradable financial assets, transactions and financial liabilities
arising from changes in fair value gains and losses, as well as the disposal of
trading of financial assets, trading financial liabilities and available-for-sale
financial assets gains return on investment;
（15）Single impairment test for impairment of receivables transferred back to
preparation
（16）Commissioned external loans by the Gain/loss
（17）The use of fair value measurement model of follow-up to the fair value of
real estate investment gains and losses arising from changes
（18）According to tax, accounting and other laws, regulations, the requirements
of the current Gain/loss for a one-time adjustment of the impact of the current
Gain/loss;
（19）Entrusted with the operating of the trust to obtain fee income5
Items Amount
（20）Net amount of non-operating income and expense except the aforesaid
items
613,233.52
（21）Other non-recurring Gains/loss items
（22）Amount of influence of minority interests -232,995.30
（23）Amount of influence of income tax -109,941.96
Total 2,929,138.16
（III） Difference of domestic and foreign accounting standards
□ Applicable√ Not applicable6
III．Change of Share Capital and Shareholding of Principal Shareholders
I.Changes in share capital Unit: share
Before the change Increase/decrease（+，-） After the Change
Amount Proportio
n Share
allotme
nt
Bon
us
shar
es
Capitaliz
ation of
common
reserve
fund
Other Subtotal Quantity Proportion
I. Share with
conditional
subscription
448,805,868 35.70% -4,714,478 -4,714,478 444,091,390 35.33%
1.State-owned shares 408,243,602 32.47% 717,520 717,520 408,961,122 32.53%
2.Staee-owned legal
person shares
23,468,541 1.87% 23,468,541 1.87%
3.Other domestic
shares
16,891,110 1.34% -5,431,998 -5,431,998 11,459,112 0.91%
Of which：Domestic
Non-state –owned
legal person shares
12,930,076 1.03% -2,929,191 -2,929,191 10,000,885 0.80%
Domestic natural
person shares
3,961,034 0.32% -2,502,807 -2,502,807 1,458,227 0.12%
4.Share held by
foreign investors
Of which：Foreign
legal person shares
Foreign natural person
shares
5 .Executive shares 202,615 0.02% 202,615 0.02%
II. Shares with
unconditional
subscription
808,311,880 64.30% 4,714,478 4,714,478 813,026,358 64.67%
1.Common shares in
RMB
459,561,880 36.56% 4,714,478 4,714,478 464,276,358 36.93%
2.Foreign shares in
domestic market
348,750,000 27.74% 348,750,000 27.74%
3.Foregin shares in
overseas market
4.Other
III. Total of capital
shares
1,257,117,748 100.00% 1,257,117,748 100.00%7
(1) In the report period, 679 shareholders repaid 717,520 shares to Guangdong Communication
Group Co., Ltd. as consideration. domestic legal person shares and domestic natural person shares
were converted into state shares.
(2) In the report period, ，4,622,870 domestic legal person shares subject to sale restriction and
2,539,239 domestic natural person shares subject to sale restriction were listed for trading and
converted into shares not subject to sale restriction on April 3, 2009. 91,608 domestic legal person
shares subject to sale restriction were listed for trading and converted into shares not subject to sale
restriction on May 5, 2009. After judicial confirmation, 430,796 domestic legal person shares were
converted into domestic natural person shares, which were still subject to sale restriction.
2.There are 109,280 shareholders as ended June 30, 2009, of which 69,598 are A share
shareholders, 39,682 are B share shareholders.
3.Particulars of the shareholding of the top ten shareholders and Top 10 holders of
unconditional shares as of June 30, 2009
Unit：Share
Total of shareholders 109,280
Particulars about the shareholding of the top ten shareholders
Name of shareholder
Nature of
shareholder
Proportion
(%)
Total shares Conditional shares Pledged or frozen
Guangdong
Communication Group
Co., Ltd.
State-owned
shares
40.76% 512,340,864 408,961,122 103,379,742
Guangdong Expressway
Co., Ltd
State-owned
legal person
1.59% 20,017,542 20,017,542
Xinyue Co., Ltd.
Overseas legal
person
1.05% 13,201,086 13,201,086
Guangdong Yuecai Trust
Investment CO., Ltd.
State-owned
legal person
0.97% 12,174,345
102 Portfolio of National
Social Security Fund
Domestic non-
State-owned
legal person
shares
0.8% 10,000,000
China Construction Bank
－Guotai Jinding
Valuechosen mixed
Securities Investment
Fund
Domestic non-
State-owned
legal person
shares
0.55% 6,885,342
Lu Weiqiang
Overseas
Natural person
0.23% 2,886,6488
Guangdong
Communication
Development Company
Overseas legal
person
0.17% 2,130,510 2,130,510
Huang Zhiyuan
Domestic
natural
person
0.17% 2,080,400
KGI ASIA LIMITED
Overseas legal
person
0.17% 2,075,517
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares
Guangdong Communication Group Co.,
Ltd.
103,379,742 RMB Common shares
Xinyue Co., Ltd. 13,201,086
Foreign shares placed in domestic
exchange
Guangdong Yuecai Trust Investment
CO., Ltd.
12,174,345 RMB Common shares
102 Portfolio of National Social Security
Fund
10,000,000 RMB Common shares
China Construction Bank－Guotai
Jinding Valuechosen mixed Securities
Investment Fund
6,885,342 RMB Common shares
Lu Weiqiang 2,886,648
Foreign shares placed in domestic
exchange
Huang Zhiyuan 2,080,400 RMB Common shares
KGI ASIA LIMITED 2,075,517
Foreign shares placed in domestic
exchange
Hong Qingyi 1,876,215
Foreign shares placed in domestic
exchange
NATWEST SECURITIES LIMITED 1,810,436
Foreign shares placed in domestic
exchange
Notes to the related
relationship between the
shareholders or their
concerted action
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong
Expressway Co., Ltd., Xinyue Co., Ltd..and Guangdong Communication
Development Company is subsidiary company of Guangdong Expressway Co., Ltd , It
is unknown whether there is relationship between other shareholders and whether they
are persons taking concerted action specified in the Regulations on Disclosure of
Information about Change in Shareholding of Shareholders of Listed Companies.
4.There was no change in the Company’s controlling shareholder or actual controller during
the reporting period.二○○九年半年度报告——董事、监事、高级管理人员情况
9
IV. Particulars about the Directors, Supervisors and Senior Executives
I. In the report period, Change of Shareholding of Directors, Supervisors and Senior
Executives
Name Position
Quantity of
shares held
at
beginning
of year
Quantity of
shares
purchased
in current
period
Quantity of
shares sold
in current
period
Quantity of
shares held
at the end
of period
Of which:
Quantity of
restricted
shares
Quantity of
share
options
held at the
end of
period
Reason for
change
Xiao Laijiu
Director,
Deputy
General
Manager and
Chief
accountant
20,043 0 5,011 15,032 0 0
Trading
based on
price
competitio
n
In the report period, The Company neither exercised stock options nor grant restricted stocks.
2. Particulars about employment and dismiss ion of directors, supervisors and executives in
the report period
Mr. He Qiang and Ms Xiang Tiangui have acted as independent directors of the
Company for six years in succession since June 1, 2003, According to relevant
regulations of CSRC, they shall no longer act as independent directors of the Company.
Mr. 2008 annual shareholders' general meeting of the Company elected Mr. Wang Pu and Mr. Feng
Ke as additional independent directors of the fifth board of directors of the Company. Their term of
office is the same with that of the members of the fifth board of directors of the
Company.10
V .Report of the Board of Directors
I. Business situation in the report term
(I) Operating status of the expressways wholly or partly held by the Company
In the first half year of 2009, the volume of vehicle traffic and toll income of the expressways
wholly and partly held by the Company were as follows:
Traffic volume form Jan
to June
2009(million vehicles)
Increase
/Decrease(%)
Toll income from Jan
to Jun 2009
(RMB Million yuan)
Increase/Decrease(%)
Guangfo
Expressway
14.36 -11.96% 132.57 -15.03%
Fokai
Expressway
12.03 -0.77% 331.57 -0.07%
Jiujiang
Bridge
0.35 - 2.47 -
Shenzhen
Huiyan
Expressway
12.89 -3.45% 144.86 -2.60%
Maozhan
Expressway
1.98 5.59% 182.77 2.42%
Jingzhu
Expressway
Guangzhu
Section
14.58 -3.17% 486.16 -8.02%
Guangzhao
Expressway
5.08 8.51% 94.41 3.49%
Guang-Zhao
Highway
6.95 3.39% 57.08 3.39%
Guanghui
Expressway
9.58 1.82% 638.39 2.39%
Jiangzhong
Expressway
8.61 3.27% 120.14 -1.01%
Kangda
Expressway
0.39 81.46% 11.36 97.36%
The toll income of Guangfo Expressway decreased by 15.03% year on year due to
the following unfavorable factors:
(1) Construction of expansion project;11
(2) Traffic control measures were taken for neighboring sections, which resulted in
split flow of vehicles;
(3) Continuous influence of "green channel" policy (the number of days of
exemption is more than that in the same period of the previous year by 25 days);
(4) The Huanan New Trunk Line, the 3 section of Huanan Expressway and the
Guangming Expressway has been opened to traffic in the first half of 2009 which caused
split flow of vehicles.
Shenzhen Huiyan Expressway, Guangzhu Section of Jingzhu Expressway and
Jiangzhong Expressway are located in Pearl River Delta area. This area is dominated by
export-oriented economic development, therefore, the local economy was greatly affected
by international economic crisis so that toll somewhat decreased.
In the Guangdong"6.15 "Jiujiang Bridge Collision Accident, 325 National Road
Jiujiang Bridge had been heated by the Nanguiji 035 ship, which resulted in more than
200 meters of Jiujiang Bridge collapsed. After the 2years reconstruction, the Jiujiang
Bridge is open to traffic On June 10, 2009, the toll income as stable as 2007 before the
bridge collapsed.
The toll income of other sections kept stable.
(II) Year-on-year increase/decrease of operating income, operating profit and net
profit
Unit：RMB
January-June 2009 January-June 2008
Year-on-year
increase/decrease
Operating income 471,816,749.75 492,935,283.48 -4.28%
Operating cost 167,659,678.25 181,525,005.66 -7.64%
Operating profit 300,113,928.29 348,864,543.50 -13.97%
Net Profit 215,787,292.73 251,244,086.75 -14.11%
Operating income decreased mainly due to decrease of toll income of Guangfo
Expressway. Operating cost decreased mainly due to year-on-year decrease of
maintenance work of Fokai Expressway. Operating profit decreased mainly due to12
decrease of toll income of expressways partly held by the Company in addition to the
decrease of operating income. Net profit decreased for all the above-mentioned reasons.
(III). The scope of main operation and its operating status
The company belongs to the industry of infrastructure construction, with
commercial development and operation of expressways and large bridges in Guangdong
Expressway system. The expressway industry is an industry with special support form the
state, and the Company’s operation benefits from the support of the industrial policy of
the country. Operating income and profit of the main operation for the report period were
RMB 471,816,749.75, coming form the toll collection on expressways and very large
bridges.
Unit：RMB’0000
The Status of key business in terms of industry of business
In terms of business line
or product
Income from
main operation
Cost of main
operation
Gross profit
ratio（%）
Increase/decreas
e of income
from main
operation over
the previous year
(%)
Increase/decrease
of cost of main
operation over the
previous year (%)
Increase or
decrease of Gross
profit ratio from
main operation
over the previous
year (%)
Toll income 47,031.79 16,692.63 64.51% -3.97% -7.71% 1.44%
The status of key business in terms of product business
Toll income 47,031.79 16,692.63 64.51% -3.97% -7.71% 1.44%
Of which: In the report period, The total amount of product sales or rendering of
services of the Company to its controlling shareholder and subsidiaries was RMB 0.00
million in the report period.
(IV) In the report period, there was no material change in the Company's profit
structure, main operation or its structure and profitability of main operation.
(V) The Company did not conduct other business operation activities having material influence
on the profit for the report period.
(VI) Particulars about single joint venture generating investment income that exceeded 10% of13
the net profit of the Company
1.Shenzhen Huiyan Expressway Co., Ltd.: It is mainly engaged in the organization and
management of the construction of the main line of Shenzhen section of Huiyan Expressway, its
operation, management and maintenance after its completion, collection of toll and road service
management, the construction management of road, bridge and culvert projects and engineering
consultation. The net profit of this company for Jan - June 2009 was RMB 8,389.97. The equity
investment income obtained by the Company was RMB2,796.66.
Jingzhu Expressway Guangzhu Section Co., Ltd.： It is mainly engaged in the construction,
operation and management of expressways from Guangzhou to Zhuhai and Jiangmen and provision of
the services supporting expressway including fueling, salvation, parts and components supply. The net
profit of this company for Jan - June 2009 was RMB27,326.42. The equity investment income
obtained by the Company was RMB5,465.28.
3.Guangdong Guanghui Expressway Co., Ltd.: It is mainly engaged in the investment in and
construction of Guanghui Expressway and supporting facilities, the toll collection and maintenance
management of Guanghui Expressway. The net profit of this company for Jan - June 2009 was
RMB21,908.55. The equity investment income obtained by the Company is RMB6,572.57.
(VII) Problems and difficulties occurred in operation
Difficulties confronted by the Company:
From July 18 to December 31, 2009, Guangqing Fly-over Bridge to Chencun
Section of Guangzhou Beihuan Expressway connected with Guangfo Expressway will be
completely closed for maintenance. As a result, the vehicle traffic volume of Guangfo
Expressway will sharply decrease and that of Fokai Expressway will also somewhat
decrease. On the other hand, bridge connection in places and finishing layer construction
will be carried out for the expansion project of Guangfo Expressway and Fokai
Expressway in the second half of year. At that time, half-closure construction will be
carried out, which will greatly affect the traffic capacity of vehicles. Therefore, the
Company's operating income in the second half year may continue to decrease year on
year.
The countermeasures of the Company mainly include:
The Company will make full use of the opportunity of vehicle traffic volume14
decrease caused by major repair of Beihuan Road, quicken the construction of Guangfo
and Fokai Expansion Project and decrease the influence of vehicle passing in the
construction period to the greatest extent.
II. Particulars about investments
(I) The Company did not use raised fund in the report period.
(II) The actual progress of important investment projects utilizing non-raised funds
III. Operation performance
Targets for operating income and operating cost in 2009 were RMB893.1384 million and
RMB509.2538 million respectively quoted in the 2008 annual report. As of June 30, 2009, operating
income of the Company was RMB471.8167 million, which accounts for 452.83% of the target;
operating cost of the Company is RMB167.6597 million, which accounts for 35.53% of the target.15
VI. Important events
I. Administrative Position
In the report period, The Company legally operated and regulated its operation according to the
requirements of relevant laws and regulations including the Company Law, the Securities Law,
Guidelines for Governance of Listed Companies, Opinions on Enhancing Quality of Listed
Companies, Regulations on Information Disclosure of Listed Companies and Stock Listing Rules of
Shenzhen Stock Exchange. The actual conditions of the corporate governance structure of the
Company basically complied with the provisions of regulatory documents concerning governance of
listed companies promulgated by China Securities Regulatory Commission. In the report period, two
special committees of the Company including remuneration and appraisal committee and audit
committee carried out relevant work according to the implementation rules of relevant special
committees.
At present, the Company is revising and supplementing relevant internal control systems and
unceasingly supplement and improve corporate governance structure to form more effective restriction
relationship between rights, decision making, supervision and executive bodies, further enhance its
level of standardized operation.
The Company will implement this distribution plan before August 29, 2009.
III. In the report period, What the Company was involved in significant lawsuit, arbitrations
The lawsuit happened during the report period:
(1). On June 30, 2003, China International Economic and Trade Arbitration Commission
Shenzhen Branch made final award on the lawsuit of the dispute in the contract and additional
agreement of the China-foreign constructed and operated Fozhan Expressway Dianbai (Magang) to
Zhanjian (Suixi) that at the September 25, 2001: (1) The arbitral award includes ruling Southeast
Asia Maofa Co., Ltd. to pay the default fine and part of expenses for handling the arbitration case and
allocated expenses of each party involved in this arbitration case to the Company. total is RMB
4,413,000 and related interest, Our company has submitted 《the application of enforcement action> to
Guangzhou Intermediate People's Court.In April 2005, Guangzhou Municipal Intermediate People's
Court made a judgment concerning entirely auctioning Maozhan Company’s stocks held by Southeast
Asia Maofa Co., Ltd. and made an announcement of auction. Guangzhou Municipal Intermediate
People's Court submitted this enforcement case to Guangdong Higher People's Court for jurisdiction
transfer in July 2005 according to the notice of Guangdong Higher People's Court regarding
liquidation of outstanding cases beyond the legal time limit of enforcement. On September 2, 2008,
Yangjiang Municipal Intermediate People's Court made the following ruling: (i) canceling the seizure
of 35% of Maozhan Company’s stocks and incomes held by Southeast Asia Maofa Co., Ltd. as the
party subject to enforcement; (ii) freezing the debts of RMB5,334,500 that are due to Maozhan
Company by Southeast Asia Maofa Co., Ltd. as the party subject to enforcement, and seizing
RMB5,334,500 that is due to Southeast Asia Maofa Co., Ltd. as the party subject to enforcement by16
Maozhan company for repayment of debts, and serving a notice of Assisting in Enforcement to
Maozhan Company. This enforcement case has not finally been closed yet.
(2) The technology company as the holding subsidiary of the Company filed a lawsuit with the
People’s Court of Yuexiu District of Guangzhou in May 2006, requesting Wang Jianji, as the guarantor
of Beijing Green Angel Organic Fertilizer Co., Ltd. for the RMB8 million entrusted loan purpose, to
perform its guarantee liabilities, repay RMB8 million and accrued interests and disburse a default fine
of RMB 93,716.00. The People’s Court of Yuexiu District of Guangzhou made the (2006) YFMEC Zi
No. 1708 Judgment of First Instance that the Defendant Wang Jianji should repay the principal of the
RMB8 million entrusted loan and its overdue interests as well as pay a default fine of RMB 93,716.00
to the technology company. The Defendant Wang Jianji lodged an appeal against the Judgment of First
Instance. Guangzhou Municipal Intermediate People's Court made the (2007) SZFMEZ Zi No. 1057
Judgment of Second Instance to affirm the original judgment on August 24, 2007.
Wang Jianji did not accept the civil award of (2007) Suizhongfamingzhong No.1057 by
Guangdong Guangzhou Intermediate People's Court and applied to Guangdong Provincial Higher
People's Court for retrial. On November 26, 2007, Guangdong Provincial Higher People's Court made
(2007) Yegaofaliming No. 1010 award, This case entered the retrial proceedings. On September 11,
2008, Guangzhou Municipal Intermediate People's Court issued the (2008) SZFSJMZ Zi No. 66
Written Civil Ruling that the (2006) SZFLMZ Zi No. 1146 Written Civil Ruling and the (2006)
YFMEC Zi No. 1708 Written Civil Ruling made by the People’s Court of Yuexiu District of
Guangzhou of Guangdong should be rescinded, the (2007) SZFMEZ Zi No. 1057 Paper of Civil
Judgment and the (2006) YFMEC Zi No. 1708 Paper of Civil Judgment made by the People’s Court of
Yuexiu District of Guangzhou of Guangdong should be rescinded and this case should be transferred
to the People’s Court of Xicheng District of Beijing for processing. On May 11, 2009, Beijing
Xicheng People's Court issued the case acceptance notice. On June 22, 2009, the court issued Civil
Ruling Paper and sealed up three houses under the name of Wang Jianji for litigation-related
preservation. So far, the notice of trial of this case has not been received.
(3) On June 15, 2007 morning, the Nanguiji 035 ship owned by Yang Xiong, Foshan Nanhaiyu
Ship Co., Ltd. heated Jiujiang Bridge on 325 National Road owned by the controlling company of the
company, and resulted in more than 200 meters of Jiujiang Bridge collapsed.
On June 19, 2007, The Ministry of Communications, the State Production Safety Supervision and
Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the
Guangdong"6.15 "Jiujiang Bridge Collision Accident", initially determined the causes of the accident
are: the incident ship suddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain
neglected looking out, did not take proper measures and deviated from the main channel, touched the
325 National Road Jiujiang Bridge the non-navigation bridge pier and caused the collapsion of part of
the Jiujiang bridge. The accident was an unilateral responsibility of the ship.
On July 19, 2007,Fokai Expressway Co., ltd. applied preservation of property to Guangzhou
Maritime Court. On August 22, 2007, Fokai Company officially prosecuted to Guangzhou Maritime17
Court, asking Foshan South Sea Shipping Company Limited and Yang Xiong to undertake the
conpensation 25,587,684 yuan for the loss caused by collapsion of Jiujiang Bridge. After the court
accepted the case, 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 proceeded 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.
At present, no further notice related to this case has been received from the court and its hearing is still
in suspense.
IV. The equity of other listed companies and financial enterprises held by the Company
The equity of Huaxia Securities Co., Ltd. held by the Company in the report period:
In 1993, the Company invested RMB 5.4 million in Huaxia Securities Co., Ltd., which accounts
for 0.54% of its registered capital (RMB 1 billion) at that time. Later, Huaxia Securities increased
share capital. The shareholding ratio of the Company decreased to 0.27%.
On December 16, 2005 after stock market trading hour, the China Securities Regulatory
Commission and the People’s Government of Beijing had issued announcement to exercise the
security trading rights of Huaxia Securities Co., Ltd due to the Huaxia Securities Co., Ltd has
Financial Risk Existence and it didn’t has the continual management ability.
On December 19, 2005, the liquidation committee of Huaxia Securities issued No.1 and No.2
Creditor's Rights Registration Announcement of Liquidation Committee of Huaxia Securities Co., Ltd.
The liquidation committee exercised the rights of Huaxia Securities Co., Ltd. on its behalf and was
responsible for its liquidation. In 2005, Guangdong Express Technology Investment Co., Ltd. fully
made provision for impairment in respect of the long-term equity investment of Huaxia Securities Co.,
Ltd. held by it. So far, Huaxia Securities Co., Ltd. has not closed deregistration.
V. Not Material acquisition and disposal of assets and asset reorganization in the
report period.
VI. Not significant acquisition in the report period.
VII. Significant related transactions
（1）In the report period, The Company were not Significant Related transactions .
（2） In the report period, the Company were not involved in related transactions concerning
assets acquisition and disposal.18
（3） In the report period, the Company and related parties were not involved in material
claims and debts or guarantee.
VIII. Important contracts and implementing
1. In the report period, the Company did not hold in trust or contract for or lease the material
assets of other companies nor did other companies hold in trust, contract for or lease the material
assets of the Company.
2. In the report period, the Company neither provided material guarantee to other companies nor
provided guarantee to its controlled subsidiaries.
3. In the report period, the Company did not entrust others to manage its material cash assets
management
IX. In the reporting period, there is no significant commitments concerning the Company or the
shareholders hold 5% share capital for disclosure. However the commitment issues made by the
shareholders during share equity relocation program were under processing and carried over to the
report term.
1.The Company's plan for share holding structure reform was voted through at the shareholders'
meeting concerning share holding structure reform on December 21, 2005. In addition to honoring
specified statutory commitment, shareholders holding non-negotiable shares made the following
commitment in this plan:
(1) The non-negoti1ble sh1res held by the Comp1ny's sh1reholders holding non-negoti1ble
sh1res sh1ll not be listed, tr1ded or 1ssigned within twelve months from the d1te of obt1ining the right
of listing 1nd negoti1tion. Meanwhile, Guangdong Communication Group Co., Ltd., the controlling
shareholder, and its related companies including Guangdong Expressway Co., Ltd., Guangdong
Traffic Development Company, Guangdong Communication Development Company and Guangdong
Guanghua Expressway Company further promised that the non-negotiable shares held by them would
not be listed and traded within twenty four months after the expiration of the said period of twelve
months.
(2) After the implementation of share holding structure reform, Guangdong Communication
Group Co., Ltd. promised to propose the maintenance of the Company's cash dividend policy in force
for the period from 2005 to 2007 and cast affirmative vote at the shareholders' general meeting.
Since the listing of the Company, i.e., in the period from 1996 to 2004, the arithmetic average of
the proportion of the amount of cash dividends to the net profit for current year was 61.26%. The
proportion of cash dividend distribution of the Company in the next three years will not be lower than19
this proportion.
(3) In order to maintain appropriate holding level and enhance its position of controlling
shareholder after share holding structure reform, Guangdong Communication Group Co., Ltd.
promised that it or its wholly-owned subsidiaries would invest RMB 400 million in purchasing
negotiable Guangdong Expressway A shares in secondary market at appropriate time within twelve
months after adoption of the plan for share holding structure reform at relevant shareholders' meeting
of the Company under the premise of obtaining CSRC's exemption of general tender offer. Within six
months after the completion of share purchase plan each time, Guangdong Communication Group Co.,
Ltd. and its wholly-owned subsidiaries will not sell the shares purchased and will perform relevant
information disclosure obligation. In case of sales in the said period, all income shall belong to all
shareholders of the Company.
Status of fulfillment:
(1) The non-negotiable shares held by the Company's shareholders holding non-negotiable shares
will be listed and traded after the expiry of the commitment term. At the end of this report period, the
commitment term has expired. During the commitment term, the shareholders holding non-negotiable
shares did not violate the commitment.
(2) Guangdong Communication Group Co., Ltd. proposed cash dividend distribution and cast
affirmative vote at 2007 annual shareholders' general meeting. The Company paid RMB 1.6
(including tax) for every 10 shares with total share capital, i.e., 1,257,117,748 shares, The dividend
was totalled to RMB201,138,839.68 and accounted for 61.85% of the total net profit of the year..as the
base in 2005 and paid RMB 1.7 in cash to all shareholders for every 10 shares. The Company paid
RMB 1.6 (including tax) for every 10 shares in 2005. Cash dividends of RMB 201,138,839.68 were
distributed in total, as the base in 2006 and paid RMB 1.7 in cash to all shareholders for every 10
shares. The dividend was totalled to RMB213,710,017.16 and accounted for 64.40% of the total net
profit of the year. For 2007 and the first quarter of 2008, the Company paid RMB 2.4 in cash to all
shareholders for every 10 shares. The dividend was totalled to RMB301,708,259.52 , The amount of
cash dividends accounts excessed the parent company's net profit 61.26%, This commitment has
already fulfilled.
(3) Guangdong Communication Group Co., Ltd., the largest shareholder, has fulfilled its
commitment to invest RMB400 million to buy in Expressway A shares from the secondary market. As
of February 16 2007, Guangdong Communication Group Co., Ltd. has increased its holding of
Expressway A shares by 98,932,191 shares, which accounted for 7.87% of the total capital shares of
the Company. This commitment has already fulfilled.
2. Guangdong Communication Group Co.,Ltd. as a controlling shareholder of the Company and
Xinyue Company Limited as its person acting in concert increased part of A stocks and B stocks of the
Company by Stock Trading System of Shenzhen Stock Exchange on December 11, 2008, and20
promised that they would not reduce their stocks of the Company during the execution of the plan of
stock increase and within the legal time limit.
Details of performance: up to the publishing date of this report, Guangdong Provincial Transport
Group Co., Ltd. and Xinyue Company Limited as its person acting in concert have not reduced their
stocks of the Company. Therefore, this promise is still being performed.
X. The special statement and independent opinions of the independent directors of the Company
on fund occupation by related parties and external guarantee of the Company
According to relevant regulations including the Guiding Opinions on Establishment of
Independent Director System by Listed Companies, Guidelines for Governance of Listed Companies
and Stock Listing Rules of Shenzhen Stock Exchange, we, as independent directors of Guangdong
Expressway Development Co., Ltd. ("the Company"), make special statement and express
independent opinions on the Company's external guarantee on accumulative basis and in current
period and status of fund occupation by related parties as follows:
According to the Circular on Certain Issues Relating to Standardization of Fund Transfer
Between Listed Companies and Their Related Parties and Guarantees Provided by Listed Companies
(Zheng Jian Fa (2003) No. 56 Document) and the Circular of Regulating External Guarantees
Provided by Listed Companies (Zheng Jian Fa (2005) No. 120 Document), we seriously audited and
confirmed the external guarantees provided by the Company and the status of fund occupation by the
controlling shareholder and other related parties of the Company with the attitude of being responsible
to the Company, all shareholders and investors and according to the principle of seeking truth from
facts.
1. According to our prudent examination and inspection, the Company strictly complied with
relevant provisions of the Articles of Association of the Company, seriously implemented the
provisions of Zheng Jian Fa (2003) No. 56 Document and (2005) No. 120 Document and strictly
controlled the risk of external guarantee. In the report period, the Company did not provide guarantee
to the controlling shareholder and related parties or other parties. At the end of the report period, there
was no external guarantee on accumulative basis.
2. In the report period, The fund transfers between the Company and related parties were all for
normal operation. The related parties did not occupy the funds of the Company in violation of
regulations.
XI Lixin Yangcheng Certified public Accountants audited the financial report of the Company for
this Report period. The financial report of the semi-annual report has not been audited.
XII. In the report period, none of the directors, supervisors, executives, shareholders, substantial
dominators, buyer of the Company was investigated by relative departments, executed by legal &
discipline departments, delivered to legal departments, appeared for crime, investigated or punished21
by China Securities Regulatory Commission, restricted to security market, criticized publicly,
regarded as improper person, punished by other executive departments, or publicly condemned by the
Stock Exchange.
XIII. Communication, interviewing and investigation in the report term
Date Place Mode Visitor
Content of discussion and
materials provided
January 22, 2009 The Company Onsite
investigation
Deputy Analyst of
transport Industry
of Guoxin Securities
Economic Research
Institute
Learning about the basic status
of the Company
February 25, 2009 Shenzhen
Wuzhou Hotel
Notes meeting
of Earnings
Jinyuan Securities Co., Ltd.,
Analyst of China merchants
securities ，Guangfa
Securities Co., Ltd.,
Development
Center ,Lianhe Securities
Co., Ltd.
Learning about the basic
operating status of the
Company, Introduced the
basic operating information
of the company;
Communicated with
researchers on the industry
and the development of the
Company and answer some
of problems.
May 8, 2009 The Company Onsite
investigation
Analyst of Research
Dept of BOC
international Ltd
I. Main content of discussion:
1) Routing operation status of
company 2) Financial data
analysis of company 3)
Development strategy of
company 4) Company’s
opinion on industry changes
II. Main data provided: Public
information from company
periodical reports etc.
May 14, 2009 The Company Onsite
investigation
Analyst of UBS Securities
Co., Ltd.
I. Main content of discussion:
1) Routing operation status of
company 2) Financial data
analysis of company 3)
Development strategy of
company 4) Company’s
opinion on industry changes
II. Main data provided: Public
information from company
periodical reports etc.
May 19, 2009 The Company Onsite
investigation
Researchers of Shanghai
Rongzheng Investment
Consultation Co., Ltd.
I. Main content of discussion:
1) Routing operation status of
company 2) Financial data
analysis of company 3)
Development strategy of
company 4) Company’s
opinion on industry changes
II. Main data provided: Public
information from company
periodical reports etc.22
June 29,2009 Guangzhou
Ramada Hotel
2008 annual
shareholders’
meeting
Reporters of National
Business Daily、Financial
Planning Department of
Information Times and
China Security Journal.
I Main content of discussion:
1) Routing operation status of
company 2) Financial data
analysis of company
II Main data provided: Public
information from company
periodical reports 、documents
of shareholders’ meeting etc.
XIV. Making or implementation of share purchase plan by shareholders holding
more than 30% equity in the report period
Guangdong Communication Group Co., Ltd., the controlling shareholder of the Company, and
Xinyue Co., Ltd., a person taking concerted action purchased some A shares and B shares of the
Company through securities trading system of Shenzhen Stock Exchange on December 11, 2008 and
planned to continue to purchase A shares and B shares of the Company through the securities trading
system of Shenzhen Stock Exchange within next 12 months. The total quantity of the shares to be
purchased will not exceed 2% of the total share capital of the Company.
At the end of the report period, Guangdong Communication Group Co., Ltd. accumulatively
purchased 1,207,859 A shares through secondary market and Xinyue Company purchased
accumulatively 10,382,999 B shares through secondary market.
This purchase plan is still in progress.23
VII Financial Report(Uncensored)
I. Financial statement
Balance Sheet
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June,2009 Unit: RMB
Year-end balance Year-beginning balance
Items
Consolidated Parent Company.
Consolidated Parent Company.
Current asset：
Monetary fund 622,360,763.72 239,631,811.27 350,765,725.76 41,195,556.89
Settlement provision
Outgoing call loan
Trading financial
assets
Bill receivable
Account receivable 25,997,653.39 12,654,511.88
Prepayments 252,668,125.81 85,087,576.90
Insurance receivable
Reinsurance receivable
Provisions of
Reinsurance contracts
receivable
Interest receivable
Dividend receivable 54,842,253.25 141,259,357.03 14,970,025.14 14,970,025.14
Other account
receivable 51,632,804.64 3,508,278.73 28,323,738.28 31,749,471.14
Repurchasing of
financial assets
Inventories 248,754.99 405,711.52
Non-current asset due
in 1 year
Other current asset
Total of current assets 1,007,750,355.80 384,399,447.03 492,207,289.48 87,915,053.17
Non-current assets：
Loans and payment on
other’s behalf
disbursed
Disposable financial
asset
Expired investment in
possess
Long-term receivable
Long term share equity
investment 2,152,645,686.48 3,214,849,256.00 2,196,261,073.68 3,257,393,823.31
Property investment
Fixed assets 3,634,450,290.71 10,889,687.15 3,443,865,259.05 11,186,504.90
Construction in
progress 1,219,765,861.34 1,083,046,214.97
Engineering material
Fixed asset disposal24
Production physical
assets
Gas & petrol
Intangible assets 67,659,805.00 71,220,847.00
R & D petrol
Goodwill
Long-germ expenses to
be amortized 1,209,894.17 1,968,947.82
Differed income tax
asset 10,395,598.38 10,967,868.43
Other non-current
asset
Total of non-current
assets 7,086,127,136.08 3,225,738,943.15 6,807,330,210.95 3,268,580,328.21
Total of assets 8,093,877,491.88 3,610,138,390.18 7,299,537,500.43 3,356,495,381.38
Current liabilities
Short-term loans 258,000,000.00 300,000,000.00
Loan from Central Bank
Deposit received and
hold for others
Call loan received
Trade off financial
liabilities
Bill payable
Account payable 203,705,615.68 107,100,915.00
Advance payment 6,402,672.80 6,125,701.56
Selling of repurchased
financial assets
Fees and commissions
receivable
Employees’ wage payable 9,416,978.99 6,741,114.77 11,827,195.03 7,000,193.40
Tax payable 898,114.75 5,168.96 3,911,924.42 196,664.32
Interest Payable 5,891,456.92 5,537,848.30
Dividend Payable 165,674,377.48 138,308,961.28 12,316,103.37 12,316,103.37
Other account payable 214,393,533.99 107,424,588.78 263,417,611.91 139,138,865.17
Reinsurance fee
payable
Insurance contract
provision
Entrusted trading of
securities
Entrusted selling of
securities
Non-current liability
due in 1 year 450,000,000.00 290,000,000.00
Other current liability 57,154,942.61
Total of current
liability 1,314,382,750.61 309,634,776.40 1,000,237,299.59 158,651,826.26
Non-current liabilities：
Long-term loan 2,732,664,803.54 2,348,324,803.5425
Bond payable
Long-term payable 2,022,210.11 2,022,210.11 2,022,210.11 2,022,210.11
Special payable 100,000.00 100,000.00
Expected liabilities
Differed income tax
liability 110,856,273.74 101,054,676.23
Other non-current
liabilities
Total of non-current
liabilities 2,845,643,287.39 2,022,210.11 2,451,501,689.88 2,022,210.11
Total of liability 4,160,026,038.00 311,656,986.51 3,451,738,989.47 160,674,036.37
Owners’ equity
Share capital 1,257,117,748.00 1,257,117,748.00 1,257,117,748.00 1,257,117,748.00
Capital reserves 1,534,906,856.32 1,534,906,856.32 1,534,906,856.32 1,534,906,856.32
Less：Shares in stock
Special reserve
Surplus reserves 91,921,501.73 91,921,501.73 91,921,501.73 91,921,501.73
Common risk provision
Undistributed profit 627,361,650.63 414,535,297.62 537,158,754.16 311,875,238.96
Different of foreign
currency translation
Total of owner’s equity
belong to the parent
company
3,511,307,756.68 3,298,481,403.67 3,421,104,860.21 3,195,821,345.01
Minor shareholders’ equity 422,543,697.20 426,693,650.75
Total of owners’ equity 3,933,851,453.88 3,298,481,403.67 3,847,798,510.96 3,195,821,345.01
Total of liabilities and
owners’ equity 8,093,877,491.88 3,610,138,390.18 7,299,537,500.43 3,356,495,381.38
Profit statement
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June 2009 Unit：RMB
Current term Same period last year
Items
Consolidated Parent Company Consolidated Parent Company
I. Total business income 471,816,749.75 3,600.00 492,935,283.48 255,600.00
Incl：Business income 471,816,749.75 3,600.00 492,935,283.48 255,600.00
Interest income
Insurance fee earned
Fee and commission received
II.Total business cost 304,333,672.79 25,272,882.70 302,614,819.39 23,769,262.83
Incl：Business cost 167,659,678.25 181,525,005.66
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves
Insurance policy dividend
paid
Reinsurance expenses26
Business tax and surcharge 15,533,972.20 180.00 16,029,568.82 12,780.00
Sales expense
Administrative expense 47,896,913.39 23,962,124.27 45,822,121.24 24,288,029.13
Financial expenses 68,856,572.60 1,310,578.43 59,954,001.06 -46,153.63
Asset impairment loss 4,386,536.35 -715,877.39 -485,392.67
Add：Gains from change of fir
value （“-”for loss）
Investment gain（“-”for loss） 132,758,229.87 253,606,591.16 158,544,079.41 381,110,027.53
Incl: investment gains from
affiliates 125,642,159.44 125,944,912.23 158,544,079.41 159,314,523.96
Gains from currency exchange
（“-”for loss）
III. Operational profit（“-”
for loss） 300,241,306.83 228,337,308.46 348,864,543.50 357,596,364.70
Add：Non-business income 1,019,915.03 34,525.00 1,770,670.66
Less：Non business expenses 477,373.69 22,729,808.66 100,000.00
Incl：Loss from disposal of
non-current assets 70,692.18 21,620,634.42
IV.Gross profit(“-”for loss） 300,783,848.17 228,371,833.46 327,905,405.50 357,496,364.70
Less：Income tax expenses 46,465,237.48 38,080,018.49
V. Net profit（“-”for net loss） 254,318,610.69 228,371,833.46 289,825,387.01 357,496,364.70
Net profit attributable to the
owners of parent company 215,914,671.27 228,371,833.46 251,244,086.75 357,496,364.70
Minor shareholders’ equity 38,403,939.42 38,581,300.26
VI. Earnings per share：
（I）Basic earnings per share 0.17 0.20
(II)Diluted earnings per
share 0.17 0.20
Cash flow statement
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June 2009 Unit：RMB
Current term Same period last year Items
Consolidated Parent Company Consolidated Parent Company
I. Net cash flow from
business operation
Cash received from sales
of products and
providing of services
456,566,626.51 473,485,036.71
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 against27
original insurance
contract
Net cash received from
reinsurance business
Net increase of client
deposit and investment
Net increase of trade
financial asset disposal
Cash received as
interest, processing
fee and commission
Net increase of
inter-bank fund
received
Net increase of
repurchasing business
Tax returned
Other cash received from
business operation 19,592,585.12 468,173,266.49 13,711,162.10 67,870,401.52
Sub-total of cash
inflow 476,159,211.63 468,173,266.49 487,196,198.81 67,870,401.52
Cash paid for purchasing
of merchandise and
services
32,476,288.73 67,269,839.44
Net increase of client
trade and advance
Net increase of savings n
central bank and brother
company
Cash paid for original
contract claim
Cash paid for interest,
processing fee and
commission
Cash paid for policy
dividend
Cash paid to staffs or
paid for staffs 48,317,351.22 10,982,692.41 44,785,321.39 9,541,224.02
Taxes paid 57,480,998.53 26,049.52 69,991,411.94 43,028.00
Other cash paid for
business activities 130,347,217.35 410,069,752.55 55,693,085.43 15,445,089.58
Sub-total of cash
outflow from business
activities
268,621,855.83 421,078,494.48 237,739,658.20 25,029,341.60
Cash flow generated by
business operation, net 207,537,355.80 47,094,772.01 249,456,540.61 42,841,059.92
II.Cash flow generated by
investing
Cash received from
investment retrieving 797,000.0028
Cash received as
investment gains 163,117,251.43 193,265,607.66 197,957,494.71 382,936,275.79
Net cash retrieved from
disposal of fixed assets,
intangible assets, and
other long-term assets
1,200.00 540.00
Net cash received from
disposal of subsidiaries
or other operational
units
Other investment-related
cash received 4,198,040.80
Sub-total of cash inflow
due to investment
activities
163,915,451.43 193,265,607.66 202,156,075.51 382,936,275.79
Cash paid for
construction of
fixed assets,
intangible assets
and other long-term
assets
446,610,971.81 419,320.00 260,705,765.57 1,111,221.00
Cash paid as investment 34,500,000.00 34,500,000.00 276,251,100.00 276,251,100.00
Net increase of loan
against pledge
Net cash received
from subsidiaries and
other operational
units
Other cash paid for
investment activities 2,528.44 683.93
Sub-total of cash
outflow due to
investment activities
481,113,500.25 34,919,320.00 536,957,549.50 277,362,321.00
Net cash flow generated
by investment -317,198,048.82 158,346,287.66 -334,801,473.99 105,573,954.79
III.Cash flow generated
by financing
Cash received as
investment
Incl: Cash received as
investment from minor
shareholders
Cash received as
loans 802,340,000.00 1,630,000,000.00
Cash received from
bond placing
Other financing
–related ash received
Sub-total of cash
inflow from financing 802,340,000.00 1,630,000,000.0029
activities
Cash to repay debts 300,000,000.00 1,085,000,000.00
Cash paid as dividend,
profit, or interests 121,084,051.88 7,004,588.15 86,520,529.35 3,211,269.24
Incl: Dividend and
profit paid by
subsidiaries to minor
shareholders
Other cash paid for
financing activities
Sub-total of cash
outflow due to financing
activities
421,084,051.88 7,004,588.15 1,171,520,529.35 3,211,269.24
Net cash flow generated
by financing 381,255,948.12 -7,004,588.15 458,479,470.65 -3,211,269.24
IV.Influence of exchange
rate alternation on cash
and cash equivalents
-217.14 -217.14 -33,503.88 -33,503.88
V.Net increase of cash
and cash equivalents 271,595,037.96 198,436,254.38 373,101,033.39 145,170,241.59
Add: balance of cash and
cash equivalents at the
beginning of term
350,765,725.76 41,195,556.89 190,665,302.76 34,847,364.21
VI. Balance of cash and
cash equivalents at the
end of term
622,360,763.72 239,631,811.27 563,766,336.15 180,017,605.8030
Consolidated Statement of Change in Owners’ Equity
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June,2009 Unit：RMB
Amount of the Current term
Owner’s equity Attributable to the Parent Company
Items
Share
Capital
Capital
reserves
Less:
Share
s in
stock
Specia
l
reserv
e
Surplus
reserves
Common
risk
provisions
Attributable
profit
Other
Minor
shareholders’
equity
Total of
owners’
equity
I.Balance at the end of
last year
1,257,117,748.00 1,534,906,856.32 91,921,501.73 537,158,754.16 426,693,650.75 3,847,798,510.96
Add: Change of
accounting policy
Correcting of previous
errors
Other
II.Balance at the
beginning of current year
1,257,117,748.00 1,534,906,856.32 91,921,501.73 537,158,754.16 426,693,650.75 3,847,798,510.96
III.Changed in the current
year
90,202,896.47 -4,149,953.55 86,052,942.92
（I） Net profit 215,914,671.27 38,403,939.42 254,318,610.69
（II） Gains losses
accounted into owners’
equity directly
I.Changed in fair value31
of sellable financial
assets, net
2. Influence of change
in other owners’ equity of
invested enterprises on
equity basis
3．Influence of income
tax related to owners’
equity items
4．Other
Total of (I) and (II) 215,914,671.27 38,403,939.42 254,318,610.69
（III） Investment or
decreasing of capital by
owners
1.Investment by
owners
2．Amount of shares
paid and accounted as
owners’ equity
3．Other
（IV） Profit allotment -125,711,774.80 -42,553,892.97 -168,265,667.77
1．Providing of
surplus reserves
2.Providing of common
risk provisions32
3．Allotment to the
owners
-125,711,774.80 -42,553,892.97 -168,265,667.77
4．Other
（V） Internal
transferring of owners’
equity
1．Capitalizing of capital
reserves
2．Capitalizing of surplus
reserves
3．Making up losses by
surplus reserves
4．Other
IV. Balance at the end of
this term
1,257,117,748.00 1,534,906,856.32 91,921,501.73 627,361,650.63 422,543,697.20 3,933,851,453.8833
Consolidated Statement of Change in Owners’ Equity(Con.)
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June,2009 Unit：RMB
Amount of the previous term
Owner’s equity Attributable to the Parent Company
Items
Share
Capital
Capital
reserves
Les
s:
Sha
res
in
sto
ck
Sp
ec
ia
l
re
se
rv
e
Surplus
reserves
Common
risk
provision
s
Attributa
ble
profit
Ot
he
r
Minor
shareholde
rs’ equity
Total of
owners’
equity
I.Balance at the end of last year 1,257,117,748.00 1,534,906,856.32 43,852,074.48 488,675,530.65 453,992,476.96 3,778,544,686.41
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current
year
1,257,117,748.00 1,534,906,856.32 43,852,074.48 488,675,530.65 453,992,476.96 3,778,544,686.41
III.Changed in the current year -50,464,172.77 -35,350,534.26 -85,814,707.03
（I） Net profit 251,244,086.75 38,581,300.26 289,825,387.01
（II） Gains losses accounted into
owners’ equity directly
I.Changed in fair value of sellable
financial assets, net34
2. Influence of change in other
owners’ equity of invested enterprises
on equity basis
3．Influence of income tax related
to owners’ equity items
4．Other
Total of (I) and (II) 251,244,086.75 38,581,300.26 289,825,387.01
（III） Investment or decreasing of
capital by owners
1.Investment by owners
2．Amount of shares paid and
accounted as owners’ equity
3．Other
（IV） Profit allotment -301,708,259.52 -73,931,834.52 -375,640,094.04
1．Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners -301,708,259.52 -73,931,834.52 -375,640,094.04
4．Other
（V） Internal transferring of owners’
equity
1．Capitalizing of capital reserves
2．Capitalizing of surplus reserves
3．Making up losses by surplus
reserves35
4．Other
IV. Balance at the end of this term 1,257,117,748.00 1,534,906,856.32 43,852,074.48 438,211,357.88 418,641,942.70 3,692,729,979.38
Parent Company Statement of Change in Owners’ Equity
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June, 2009 Unit:RMB
Amount of the Current term
Items
Share Capital
Capital
reserves
Less:
Shares
in
stock
Special
reserve
Surplus
reserves
Attributable
profit
Total of
owners’
equity
I.Balance at the end of last year 1,257,117,748.00 1,534,906,856.32 91,921,501.73 311,875,238.96 3,195,821,345.01
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of
current year
1,257,117,748.00 1,534,906,856.32 91,921,501.73 311,875,238.96 3,195,821,345.01
III.Changed in the current year 102,660,058.66 102,660,058.66
（I） Net profit 228,371,833.46 228,371,833.46
（II） Gains losses accounted into
owners’ equity directly36
I.Changed in fair value of sellable
financial assets, net
2. Influence of change in other
owners’ equity of invested
enterprises on equity basis
3．Influence of income tax
related to owners’ equity items
4．Other
Total of (I) and (II) 228,371,833.46 228,371,833.46
（III） Investment or decreasing of
capital by owners
1.Investment by owners
2．Amount of shares paid and
accounted as owners’ equity
3．Other
（IV） Profit allotment -125,711,774.80 -125,711,774.80
1．Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners -125,711,774.80 -125,711,774.80
4．Other
（V） Internal transferring of
owners’ equity
1．Capitalizing of capital reserves
2．Capitalizing of surplus reserves37
3．Making up losses by surplus
reserves
4．Other 1,257,117,748.00 1,534,906,856.32 91,921,501.73 414,535,297.62 3,298,481,403.67
IV. Balance at the end of this term
Parent Company Statement of Change in Owners’ Equity( Con.)
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June, 2009 Unit:RMB
Amount of the previous term
Items
Share Capital
Capital
reserves
Less:
Shares
in
stock
Special
reserve
Surplus
reserves
Attributable
profit
Total of
owners’
equity
I.Balance at the end of last year 1,257,117,748.00 1,534,906,856.32 43,852,074.48 180,958,653.20 3,016,835,332.00
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of
current year
1,257,117,748.00 1,534,906,856.32 43,852,074.48 180,958,653.20 3,016,835,332.00
III.Changed in the current year 55,788,105.18 55,788,105.18
（I） Net profit 357,496,364.70 357,496,364.70
（II） Gains losses accounted into
owners’ equity directly38
I.Changed in fair value of sellable
financial assets, net
2. Influence of change in other
owners’ equity of invested
enterprises on equity basis
3．Influence of income tax
related to owners’ equity items
4．Other
Total of (I) and (II) 357,496,364.70 357,496,364.70
（III） Investment or decreasing
of capital by owners
1.Investment by owners
2．Amount of shares paid and
accounted as owners’ equity
3．Other
（IV） Profit allotment -301,708,259.52 -301,708,259.52
1．Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners -301,708,259.52 -301,708,259.52
4．Other
（V） Internal transferring of
owners’ equity
1．Capitalizing of capital reserves
2．Capitalizing of surplus reserves39
3．Making up losses by surplus
reserves
4．Other 1,257,117,748.00 1,534,906,856.32 43,852,074.48 236,746,758.38 3,072,623,437.18
IV. Balance at the end of this term40
Guangdong Provincial Expressway Development Co., Ltd.
Notes to the Financial Statements（January- June 2009）
I. Company Profile
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.,RMB 418.2136 million, was
converted into 155.025 million shares. Guangdong Expressway Co. invested cash of RMB 115
million to subscribe for 35.9375 million shares. Other legal persons invested cash of RMB
286.992 million to subscribe for 89.685 million shares. Staff of the Company invested RMB
87.008 million to subscribe for 27.19 million shares. The total is 307.8375.
2．Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong
Securities Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of
non-state-owned legal person shares transferred 20 million non-state-owned legal person shares to
Malaysia Yibao Engineering Co., Ltd. in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No.
24 approval document and that of Guangdong Economic System Reform Committee with YTG
(1996) No. 68 document, the Company issued 135 million domestically listed foreign investment
shares (B shares) to overseas investors at the price of HKD 3.54 (equivalent to RMB 3.8) with the
par value of each share being RMB 1 during June to July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’
s Republic of China with (1996) WJMZYHZ No. 606 document, the Company was approved to be
a foreign-invested joint stock company limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in
the following manner: The Company paid 1.7 bonus shares for each 10 shares and capitalized
capital common reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997)
No. 486 and No. 487 document, the Company issued 100 million public shares (A shares) at the41
price of RMB 5.41 in term of “payable in full on application, pro-rate placing and subject to
refund” with the par value of each share being RMB 1 in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company
and pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC with
GZZJH (2000) No. 99 and that of CSRC with ZJGSZ (2000) No. 98, the Company offered 3
Rights for every 10 shares of 764.256249 million shares at the price of RMB 11 per
Right.73,822,250 ordinary shares were actually placed to all shareholders.
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 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. As of June 30, 2009,the quantity of the shares subject to sale restriction held by senior
executives is 202,615.
14. The Company is mainly engaged in the construction of expressways, grade
highways and bridges, tolling and maintenance management of highways and bridges,
salvation, repair, maintenance and cleaning of automobiles and concurrently engaged42
in automobile transport and warehousing supporting its business.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai
Expressway and Jiujiang Bridge, investment in technological industries and provision of relevant
consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangdong Maozhan
Expressway Co.,Ltd, Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu
Co., Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,
Ganzhou Gankang Expressway Co., Ltd., Huaxia Securities Co., Ltd and Huazheng Asset
Management Co., Ltd.
Guangdong Expressway Technology Investment Co., Ltd. invested on establishing of
Guangzhou Putian Zhongzhi Technologies & Industry Co., Ltd., Kunlun Securities Co., Ltd.,
Beijing Gelin Engze Fertilizer Ltd., and Guangzhou Xinglu Transportation Tech Ltd. On March
2009, Guangdong Express Technology Investment Co., Ltd. assigned 40% equity of Guangzhou
Xinlu Communication Technology Co., Ltd. held by it. On June 2009, Guangzhou Putian
Zhongzhi Technology Industrial Co., Ltd. entered bankruptcy liquidation procedure.
II. Principal accounting policies, accounting estimates and early errors
(I). Statement on the Accounting Standard Followed by the Company
The financial statements prepared by the Company comply with the requirements of
corporate accounting standards. They truly and completely reflect the financial situations,
operating results, equity changes and cash flow, and other relevant information of the company.
(II). Basis of Preparation
On the basis continuous operation, in accordance with actual transactions and
events, On February 15th 2006, the Minister of Finance issued the 38 detailed standards including
“Enterprise Accounting Standard – Basic Criteria” and “Enterprise Accounting Standard –
Inventory”. On October 30 2006, the “Enterprise Accounting Standard – Application Guide” was
released, on November 16, 2007, Explanation to Enterprise Accounting Standards No.
1 was issued. which made the new accounting standard a completed system. The Company
started to adopt the newly revised Enterprise Accounting Standard since January 1 2007.
(III) Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and
ending on December 31 as the fiscal year.
(IV)Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
(v) Report items with variable measurement properties and measurement properties
adopted43
The Company takes the accrual system as the basis for book keeping. At
measuring the accounting items, historic cost basis is normally adopted.
Statements of the current project does not change the measurement
Properties.
(VI)Determination of cash equivalent
At preparing of cash flow statement, those investments, which are featured with
short term (expire within 3 months since purchased), high liquidity, easy to convert to
know cash, low in risk of value change, could be recognized as cash equivalents.
Equity investment are not recognized as cash equivalents.
(VII)Accounting principle of foreign currency businesses
When the Company and subsidiary companies in China have foreign currency
businesses, they should be accounted by converting into the standard currency
according to the exchange rate given by People's Bank of China. At the end of the
year, the balance of foreign currency in foreign currency account should be adjusted
according to the exchange rate at the end of the year, and if the conversion differences
produced belong to the construction period, they should be included in the long-term
deferred expenses; if they belong to exchange profit and loss from foreign currency
special loan relating to purchase and construction of fixed assets, they should be
treated according to the principle of capitalization of loan expenses, and the other part
should be included in the profit and loss in the current year.
(VIII) Accounting of financial assets and financial liabilities
1. Categories of financial assets and financial liabilities
The Company divides the financial assets into four categories: financial assets measured at
fair value and their variations are recognized as current gain/loss, including trade financial assets
or financial liabilities and recognized directly as financial assets measured at fair value and their
variations are recognized as current gain/loss; Investment hold till expiration; loans and account
receivable; saleable financial assets .The company divides the financial liabilities into two
categories: financial liabilities measured at fair value and their variations are recognized as current
gain/loss; other financial liabilities.
2. Recognition and measurement of financial assets and liabilities
(1) Financial assets and liabilities measured at fair value and their variations are recognized
as current gain/loss44
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains.
The fair value will be adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as
investment gains, and thus adjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade
expenses is recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is
adopted when the difference between the actual rate and face rate is minor) during the period of
holding, and accounted as investment gains. Actual rate is recognized when obtained, and is not
changed in the predictable holding period or applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as
investment gains.
If the company sells or reclassifies large-amount due investments before the
expired date (large amount refers to comparing with the amount before the selling or
reclassifying the investments), the company will reclassify the rest of the investments
as financial assets for sale, and in the current accounting period or within two
complete accounting years, no financial assets will be classified as holding due assets,
except for the following situations: the sale date or reclassification date is close to the
expired date of the investment (such as three months before the expired), and the
change of interest rate has no significant influence on the fair value of the investment;
after all the initial principal is mostly recovered according to periodic payments or
repay in advance regulated in the contract, the rest part will be sold or reclassified; the
sale and reclassification is caused by the independent events which are uncontrollable
and unexpected and will not happen any more.
(3) Account receivable and Loan
The receivable debts of selling goods or providing services, and the credits of
other company hold by the company not including the debt which has price in active
market, including accounts receivable, notes receivable, prepaid accounts, other
receivables, long-term receivables, etc. The contract or agreement price charging from
purchaser should be taken as the initial confirmation amount; if it has the nature of
financing, it should be confirmed according its current value.45
When retrieved or disposed of, the difference between the actual received amount and the
book value is accounted as current gain/loss.
(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) plus the related trade expenses is recognized as initial amount when
obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment
gains. Change of fair value is accounted as capital reserves (other capital reserves) at the end of
term.
When disposed, the difference between the obtained price and book value is accounted as
investment gains. Meanwhile, the corresponding part of accumulated change of fair value
accounted as owners’ equity is transferred into investment gain/loss.
(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade
expenses. Successive measurement will be on the basis of amortized costs.
3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset
is terminated if almost all risks and rewards attached to the asset have been transferred to the
acceptor. If retain all the risks and rewards of ownership of financial assets, the
financial assets can be confirmed.
When determine whether the transfer of financial assets meet the conditions of
confirmation of the above financial assets, the principle of substance being more
important than form should be adopted. The transfer of financial assets can be divided
into overall transfer and part transfer of financial assets. If the transfer of financial
assets meet the conditions of terminating confirmation, the following the difference of
the two amounts will be included in the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair
value originally accounted as owners’ equity (when the asset to be transposed is saleable financial
asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book
value of the transferred financial assts, the difference between the confirmed part and the
unconfirmed part (in this case, the service assets retained should be deemed as the part of46
unconfirmed financial assets), should be amortized in accordance with their relative fair value, and
the difference between the following two amount should be included current profit and loss:
① Book value of the confirmed part;
②All fair values of financial assets and financial liabilities are recognized with reference to the
price in the active market.
If the transfer of financial assets does not meet the conditions
of terminating confirmation, the financial assets should be confirmed
again, the prices received will recognized as financial liabilities.
(4) Recognition basis of financial assets and financial liabilities
All fair values of financial assets and financial liabilities are recognized with reference to the price
in the active market（Using valuation technique, etc）.
(5) Impairment provision for financial assets
①Impairment provision for financial assets for sale:
If the fair value of financial assets for sale greatly drops at the end of the period, or after
considering all the relevant factors and expecting decrease trend is non-temporary, the impairment
should be confirmed, and the accumulative loss formed by the decrease of fair value of owner’s
equity originally included should be transferred out altogether and confirmed as impairment loss.
②Holding the impairment provision of expired investments:
The measurement of holding the impairment provision of expired
investment will be according to the method of the measurement of
impairment provision for receivables.
（IX）Confirmation standards and accounting methods for provision for bad debts for receivables
If there is objective evidence showing that receivables have impairment, its book value should be
reduced to the recoverable amount, the reduced amount should be recognized as asset impairment
loss, and included in the current gains and losses.
The receivables of significant single amount (including accounts receivable, notes
receivable, prepaid accounts receivable, other receivables, long-term receivables, and
so on) should have separate impairment test. If there is objective evidence showing
the occurrence of the impairment, the difference between the future cash flow value
and the book value should be confirmed as impairment loss and account bad debts
provision.
For the receivables of non-significant single amount, se the separate tests of
impairment of receivables in accordance with aging as similar credit risk
characteristics and divided into a number of combinations, and then the ratio of these
receivables combination at the end of the period (can make individual impairment test)47
to calculate and determine impairment loss, and account bad debt provision.
In addition to receivables that impairments have be separately accounted, the company bases on
the same or similar in the previous years, and has the aging of the receivables of similar credit risk
characteristics of the actual loss ratio. Determine the ratio of bad debt provision according to
current situation:
Age Proportion
Within 1 year 0%
1－2 years 10%
2－3 years 30%
3－4 years 50%
4－5 yarrs 90%
Over 5 years 100%
（X）Investories
1.Investories class
Class: Material and low value consumable goods, etc.
2.Determination of account value of inventory received
Various inventories should be accounted according to their actual costs.
3. Valuation method of inventory issued
The issued inventory should be accounted by FIFO method.
4. Amortization method for low value consumable goods and packaging
Low value consumable goods according to a reseller of martization
5. Inventory system for stocks
The company’s stock inventory system for sustainable use of the investory system.
6. Confirmation standards and accounting methods for inventory devaluation provision
The inventory at period end should be valuated according to which is lower between cost and
realizable net value. As inventory damage in whole or in part outdated and selling prices below
cost and other reasons the stock can not be recovered, inventory devaluation provision should be
accounted according to the difference between the cost of single inventory item and the net
realizable value. For the inventories with of large quantity and low unit price, their costs and
realizable net value according to inventory categories.
If the influences of inventory value reduced before have disappeared, the reduced amount
should be resumed and transferred back from the original inventory devaluation provision
amount, the amount transferred back should be included in the current profit and loss.
7. Determination of realizable net value of inventory
The realizable net value of inventory should be determined according to the estimated sale price
deducting the estimated costs and the necessary sale expenses in the course of normal48
production and operation.
（XI）Accounting of long-term equity investment
1. Long-term equity investment
（1）Initial measurement
①Long-term equity investment formed by merger
For merger of enterprise under common control, merger cost is determined on equity
combination basis. For equity investment paid by the Company in terms of cash, non-monetary
asset, undertaking of debts, or issuing of equity securities, the initial cost will be the booking value
of the long-term investment provided by the enterprise to be merged at the day of merger. The
differences between the initial investment cost of long-term investment and cash paid, the
non-monetary asset transferred out or book value of debt undertaken and the total face value of
shares placed, is used to adjust the capital reserves. When the capital reserve is not enough to
cover the adjustment, the retained gains will be adjusted. All direct expenses attached to the
merger are included in the gain/loss account of the current term.
The corporate merger under same control: the merger cost determined
according to on the purchase day should be the initial investment
cost of long-term investment.
(2) Long-term equity investment obtained by other ways
Long-term equity investment obtained by cash payment is recognized for initial investment
cost according to the price practically paid.
Long-term equity investment obtained by placing of equity stocks is recognized for initial
investment cost at the fair value of the stock.
Long-term equity investment input by investors is recognized for initial investment cost
according to the investment contract or agreement (less the cash dividend or profit announced but
not distributed). However when the value in the contract or agreement is not fair value is not
adopted.
The non-monetary asset exchange for a commercial real income and assets or the fair value other
assets can be reliably measured, the initial investment cost should be determined according to
long-term equity investment exchanged through the non-monetary asset exchange, unless there is
evidence showing that for the fair value of assets is more reliable; the non-monetary asset
exchange which does not meet the above premises, the book value of the exchanged assets to and
the relevant fees and taxes to be paid should be the initial investment cost of the long-term equity
investment.
The initial investment cost of the long-term equity investments obtained through debt restructuring
should be determined in accordance with fair value.49
(2). The unit invested has the reference of common control and major impact
According to the agreement in the contract, the common control of an economic activity will exist
in the economic activities related to the important financial and operational decision needed to
share control and the existence agreed by the investors will be taken as the joint control with the
unit invested; has the right to participate in and decide the financial and operational decision, but if
it can not control or joint control with other parties the formulation of these policies, it will be
considered that the investing enterprise can exert significant impact on
(3) Follow-up measurement and revenue recognition
If the company was able to joint control or exert significant impact on unit being invested, the
initial investment cost should be greater than the difference of the fair value of the recognizable
net value of the unit being invested, the initial investment cost of long-term equity investment will
not be adjusted; if initial investment cost is smaller than the difference of the fair value of the
recognizable net value of the unit being invested, it should be included in the current profit and
loss.
Accounting of long-term equity investment to subsidiaries is on cost basis. Whereas adjusted on
equity basis when preparing of consolidated financial statements.
Cost basis is adopted in accounting of long-term equity investment without joint control or
major influence, and with no quotation in an active market, thus the fair value is not able to be
reliably measured.
Equity basis will be adopted for the long-term equity investment with joint control or major
influence.
The investment income confirmed by cost method is only limited to distribution of accumulated
net profit after the unit being invested receives investment, the part of profit and cash dividends
more than the amount will be regarded as initial investment cost recovery.
The loss which should be confirmed to the unit being invested under equity method should be
treated in accordance with the following orders: First of all, deduct the book value of long-term
equity investment. Second, if the book value of long-term equity investment can not be deducted,
the long-term equity value of the net value of the unit being invested should be further confirmed
as investment loss and used to deduct the book value of long-term receivables. Finally, after the
above treatment, the additional liabilities to be undertaken according to investment contract or
agreement should be confirmed as expected liability according to the expected liability and be
concluded in the current investment loss.
If the unit being invested achieves profit in the following period, after deducting the unconfirmed
liabilities, it should be treated according to the adverse order as described above, the book value of
the confirmed expected liabilities should be deducted, the book value of the long-term equity
investment and long-term equity of net assets of the unit being invested should also be resumed,
and at the same time, the investment income should be confirmed.50
The treatment for the other changes of owner’s equity besides net loss and profit of the unit being
invested: for the other changes of owners’ equity besides net profit and loss of the unit being
invested, when shareholding ratio remains unchanged, the part shared or undertaken according to
share ratio, the book value of long-term equity investment should be adjusted, and at the same
time, the capital surplus (other capital surplus).
2. Impairment provision fro long-term investment
The long-term equity investment which calculated by cost and has no quotation in active market
and its fair value can not be reliably calculated, its devaluation loss is determined according to the
difference between it book value and the cash flow discount according to market income rate of
the similar financial assets. Other long-term equity investment, if the measurement result of the
recoverable amount shows that if the recoverable amount of the long-term equity investment is
lower than its book value, the difference should be confirmed as impairment loss.
The impairment loss of long-term equity investment will not be transferred back after
confirmation.
（XII）Commissioned loan
Commissioned loan should be accounted according to actual commissioned loan amount. Account
receivable interest rate according to the interest rate stipulated in commissioned loan.
Make overall inspection on the principal of commissioned loan on the balance sheet date, if there
is evidence showing that the principal of commissioned loan is higher than the recoverable amount,
impairment provision should be accounted on the commissioned loan.
（XIII）Pricing and depreciation method for the Fixed asset
1.Fixed assets standard
Fixed assets refer to physical assets owned for purpose of production, service providing,
leasing or management, and operation with service life of more than one year. Fixed assets are
recognized when all of the following conditions are satisfied:
(1) Financial benefits attached to the fixed asset is possibly inflowing to the Company;
(2) The cost of the fixed asset can be reliably measured.
2. Categories of fixed assets
Fixed assets are categorized as: Highway and Bridge, house and building, Macnineryand
equipment, vehicles, electronic and other equipment.
3. Confirmation standards and accounting methods for fixed asset valuation and impairment
provision
Fixed asset shall be accounted according to the its actual cost. On balance sheet date, the fixed
assets should be checked item by item, the difference between recoverable amount and book value
should be the impairment provision for fixed assets, and be included in the current profit and loss.
Impairment provision for fixed assets should be accounted according to individual value.
4. Providing of fixed asset depreciation51
Provision for depreciation of highways and bridges is made with work amount method.
Estimated net residual value rate is zero. Estimated useful life is determined according to the
period of operation right in respect of charge collection. The concrete calculation method is as
follows: The amount of provision for depreciation per standard vehicle traffic volume is to be
calculated based on the estimated total standard vehicle traffic volume within expected useful life
of highways and bridges and the original value or book value of highways and bridges. Then
provision for depreciation is made according to the actual standard vehicle traffic volume in each
fiscal period.
The Company regularly rechecks the estimated total standard vehicle traffic volume within
the remaining operation period of highways and bridges. When there is big difference between
actual standard vehicle traffic volume and estimated standard vehicle traffic volume, the Company
will re-estimate future total standard vehicle traffic volume and adjust the provision for
depreciation per standard vehicle traffic volume to ensure that the book value of relevant highways
and bridges will be completely amortized within useful life.
Provision for depreciation of fixed assets except highways and bridges is made with
composite life method. The concrete calculation method is as follows: Provision is made
according to the book value within estimated useful life after deduction of estimated net residual
value.
With respect to the fixed assets for which provision for impairment has been made, the
amount of depreciation is determined according to the book value after deduction of provision for
impairment and remaining useful life in future periods.
Depreciation ages and ratios of fixed assets:
Type Service life Predicted retained
value rate
Annual depreciation rate
Highway and Bridge
Including：Guangfo Expressway 28 years 0 Working flow basis
Fokai Expressway 30 years 0 Working flow basis
Jiujiang Bridge 19 years 0 Working flow basis
House Building 20-30 years 3%—10％ 3.17%-4.75%
Machine Equipment 10 years 3%—10％ 9％-9.6%
Transportation Equipment 5-8 years 3%—10％ 11.88%-19%
Electric Equipment and other
equipment
5-15 years 3%—10％ 6.33%-19.4%
（XIV）Calculation of Construction-in-process
The projects in construction are the infrastructure works, installation works, technological
transformation projects, big maintenance works of the company. After the delivery of the projects
under construction, the actual expenses should be confirmed as fixed assets; and fixed assets52
constructed have reached the intended use state, but not completed. Since the date of reaching
intended use state, they should be transferred to fixed assets and impairment provision should be
accounted, and then process the completion budget procedures and then make adjustments.
On the balance sheet date, conduct an overall inspection on projects under construction, if there is
evidence showing that impairment has happened in the projects under construction, then account
impairment provision on the projects under construction and included in the current profit and loss.
The impairment provision for projects under construction should be accounted according to
individual asset.
（XV）Calculation of intangible assets
Intangible assets should be accounted according to the actual costs. Since the current month of
obtaining the assets, they should be amortized according to the contract period or the expected
period. The unforeseen intangible assets which bring economic benefits for enterprises will be
regarded as the intangible assets of uncertain life, and will not be amortized.
On the balance sheet date, check the capacity of bringing future economic interests of all
intangible asset, if the estimated recoverable amount is less than book value, the impairment
provision for intangible assets should be accounted according to the difference between the
recoverable amount and book value.
（XVI）Long-term amortizable expenses
Long-term prepaid expenses refer to that enterprises have already spent,
and amortization periods of all expenses are more than one year
(excluding 1 year), they should be amortized in the regulated years.
（XVII）Bood payable
1. Valuation of payable bonds
When the company is issuing bonds, the total price issued should be included in the "payable
bonds" subject.
2. Amortization method for bond premium or discount
The difference between bond issuance total amount and the total amount of bond face value
should be worked as bond premium or discount and be amortized within the bond period
according to actual interest rate and vertical line method, and be treated according to borrowing
costs described below.
（XVIII）Capitalizing of Loan expenses
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or
production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost
of related asset. Other borrowing expenses are recognized as expenses according to the occurred
amount, and accounted into gain/loss of current term.
The assets meeting capital conditions refer to the fixed assets, investment real estates and
inventories which are constructed or produced in a long time to reach the predicted use or sale53
state.
When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct
or produce the assets which meet the capitalization conditions, and expend by cash or transferring
non-cash assets or bearing interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state
have begun.
When the construction or production of the assets which meet the capitalization conditions was
broken and the break time is more than three months, the capitalization of loan costs should be
suspended.
When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used
individually, the capitalization of the loan costs of the assets should be stopped.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop
of capitalization, the period of the break of capitalization of Loan costs is not included.
3. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the
asset which satisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less
weighted average of specialized loan part of asset expense multiplies capitalizing rate of common
Loan occupied. Capitalizing rate is determined according to weighted average interest of common
Loan.
If the Loan has discount or premium, the discount or premium amount should be determined
according to actual interests in each accounting period. The interest amount should be adjusted in
each period.
（XIX）Recognizing of Income
The incomes of the company mainly include: selling products, providing labor services.
1. The income from goods sale should be confirmed when meeting the following conditions: The
company had transferred the ownership of the goods to the buyer, and the company did not retain
the continuing management right relating to ownership right, and did not control the goods sold;
the economic interests relating to transaction will go into the company; the company can reliably
measure the related revenue and costs.
2. Principles for the confirmation of incomes from providing service are as follows:
The service started and completed in the same accounting year should be confirmed upon the54
completion of labor income. If the beginning and completion of the service belongs to different
accounting year, when the results of providing service transaction can be reliably estimated, on the
balance sheet date, the company should confirm the relevant service income according to the
completion percentage. When all the following conditions can be met, the results of the
transaction can reliably estimated:
(1). Total labor revenue and total labor costs can be reliably measured;
(2). The economic benefits relating to transactions will flow into the enterprise;
(3). The progress of completion of the service can be reliably identified.
(XX）References for confirmation of deferred income tax assets
The company is likely to determine the deferred income tax assets produced from deductible
temporary differences with the limit of offsetting the taxable income of temporary difference.
（XXI）Reasons for the changes of combination scope in the combined statement
In June 2009, Guangzhou Putian Zhongzhi Technology Industrial Co., Ltd. entered bankruptcy
liquidation procedure. From June 2009, Guangzhou Putian Zhongzhi Technology Industrial Co.,
Ltd. fell out of the consolidation scope of consolidated financial statements.
（XXII）Changing of main accounting policies, accounting estimations, and correcting of
major accounting errors, and their influences
1. Changing of main accounting policies
No changing of accounting estinations in report term.
2.Changing of Major accounting estimations
No changing of accounting estinations in report term.
3. Correcting of major accounting errors in the report term.
No changing of major accounting errors in the report term.
III.Taxation
(I)Turnover tax ans surcharges
1.Turnover tax
Taxable Items Type of taxes Tax ratio
Toll income Business tax 3%
Gains from rents Business tax 5%
Gains from service providing Business tax 5%
2.Urban Maintenance and construction Tax
Calculated and paid at 7% or 5% of the turnover tax. Foreign invested enterprise under the
Company is exempted from urban mairtenance and construction tax according to the regulations.
3.Education surcharges
Calculated and paid at 3% of the turnover tax. Foreign invested enterprise under the Company
is exempted from education surcharges according to the regulations.55
(II) Enterprise income tax
According to “Provisional Regulations of Enterprise Income Tax of PRC”, the Company pays
enterprise income tax at 25%.
According to “Provisional Regulations of Enterprise Income Tax of PRC”, Guangfo
Expressway Co., Ltd. pays enterprise income tax. As approved by Guangzhou Tax Bureau Foreign
Division with Shui-Wai-Fa[1993]1669, Guangfo Expressway Co., Ltd. pays enterprise income tax
at 20% in 2009.
According to “Provisional Regulations of Enterprise Income Tax of PRC”, Fokai Expressway
Co., Ltd. pays enterprise income tax at 25%.
According to “Provisional Regulations of Enterprise Income Tax of PRC”, Guangdong
Expressway Technology Investment Co., Ltd. pays enterprise income tax at 25%.
IV.Enterprise Consolidated and Consolidated Financial Statement
The consolidated financial statement should be implemented in accordance with Corporate
Accounting Standards No. 33 - Consolidated Financial Statements issued on the February 2006.
All subsidiaries controlled by the company should be included in the scope of consolidated
financial statements.
The consolidated financial statements should be on the basis of individual financial statement of
the mother company and the consolidated subsidiaries, according to the relevant data and adjust
the long-term equity investment of the subsidiaries according to equity method, and the parent
company will prepare the consolidated financial statement. The internal equity investment and
owner’s equity of subsidiaries, internal investment income and distribution of profits of subsidiary,
internal transactions, internal debts and credits will be offset.
The accounting policies adopted by subsidiaries should be in line with those of parent company.
（I）Subsidiaries
1．Subsidiaries obtained through merger of enterprises under common control56
Name of
Subsidiari
es
Type
Regis
tered
place
Business
property
Regist
ered
capital
(RMB’
0000))
Business Scope
Actual
investment as
of the end of
current
term(RMB)
Balance of
other
substantia
l
investment
, net
Proportion Total of voting share Consolidation Statement
Guangfo
Expresswa
y Co., Ltd.
Hol
din
g
sub
sidi
arie
s
West
Shab
ei,
Guan
gzho
u
Limited
Liability
Company
(Taiwan,
Hongkong
and Macao
in
cooperation
20,000
Construction, tolling,
maintenance and management
of Guangfo Expressway,
automobile fueling, Form
Hengsha Guangzhou to Foshan
xiebian，A total length of 15.7
km, salvage, maintenance and
cleaning up.
242,151,386.98 75% 75% Yes
Guangdong
Fokai
Expresswa
y Co., Ltd.
Hol
din
g
sub
sidi
arie
s
No.83
Baiyu
n
Road,
Yuexi
u,
Guang
zhou
Limited
Liability
Company
110,800
Operation and management of
Fokai Expressway and its
supporting facilities, automobile
salvage, maintenance and
cleaning, supply of automobile
parts and components,
maintenance and management
of Jiujiang Bridge of Guangzhan
Highway. Auto rescue and
repair (operated by
subsidiaries). Sales of industrial
capital goods (excluding gold,
silver, motor vehicles and
dangerous chemicals),
construction materials,
department goods, needles,
textiles, metals, cross-powers.
1,579,807,995.45 75% 75% Yes57
1. Judgment references for "Corporate Merger Under Same Control"
Determine the references for “corporate merger under same control” according to Business
Accounting Standards No. 20 – Corporate Merger the [2007] No.5 File by Ministry of Finance as
follows:
If the involved companies are controlled by the same party or the same parties and the control is
not temporary, it is the corporate merger under same control. The same party refers to the
investors involved in the merger and implementing ultimate control before and after the merger.
Corporate merger under the same control refers to the merger of enterprises within the group,
otherwise, can not be regarded as the corporate merger under same control.
2. Substantial dominator under common control
For subsidiaries obtained under common control as provided above, the substantial dominator is
Guangdong Communication Group Co., Ltd.
（II）Subsidiaries obtained from merging of enterprises under different control
Name of
Subsidiari
es
Type
Registered
place
Busines
s
propert
y
Regis
tered
capita
l(RM
B’00
00))
Business
Scope
Actual
investm
ent as
of the
end of
current
term(R
MB)
Balance of
other
substantial
investment,
net
Proportion
Total of voting
share
Consolidat
ion
Statement
Guangzho
u Putian
Zhongzhi
Ow
ned
sub
sidi
ary
of a
sub
sidi
ary
2011, 2012
Room,
No.201,Hua
ngpu West
Road,
Tianhe
District,
Guangzhou
Limited
Liability
Compan
y
500
Researc
h and
develop
ment of
electroni
c
products
and
technica
l
service.
Wholesa
le trade.
1.00 3,000,000.00 60% 60% No
(III) Entities with special purpose and not consolidated58
Name of
Subsidiari
es
Type
Registe
red
place
Busin
ess
prope
rty
Regis
tered
capita
l(RM
B’00
00))
Business Scope
Actual
investment
as of the
end of
current
term(RMB)
Balance of
other
substantial
investment,
net
Proportion
Total of voting
share
Consolidat
ion
Statement
Guangdo
ng
Expresswa
y
Technolog
y
Investmen
t Co.,
Ltd.
Hol
din
g
sub
sidi
arie
s
4/F,Guan
dong
Express
way
Builiding
, No.83
Baiyun,
Yuexiu ,
Guangzh
ou
Limite
d
Liabili
ty
Comp
any
10,000
Investment in
technical
industries and
provision of
relevant
consulting
services,
research and
development of
lighting
technology of
Cicy and Road,
energy saving
and storage
technology,
photovoltaic
technology of
solar energy and
production and
sales of relevant
products,
design,
production,
release and
agency of all
kinds of
domestic and
foreign
advertisements,
construction and
maintenance
management of
highway
projects and
domestic trade.
95,000,000.00 95% 95% Yes
(1I). Change of subsidiaries and scope of consolidated statements in the report period
In June 2009, Guangzhou Putian Zhongzhi Technology Industrial Co., Ltd. entered
bankruptcy liquidation procedure. From June 2009, Guangzhou Putian Zhongzhi Technology
Industrial Co., Ltd. fell out of the consolidation scope of consolidated financial statements.
Name of
subsidiary
Original total
shareholding
Net assets at
beginning of year
Net assets on
disposal day
Net profit for the period
from beginning of year59
ratio to disposal day
Guangzhou
Putian Zhongzhi
Technology
Industrial Co.,
Ltd.
60% -6,607,956.42 -6,614,226.51 -6,270.09
(III) Minority shareholders’ equity and gain/loss
1. Minority shareholders’ equity
Name
Amount in
year-begin
Increase/decres
es
Other Change
（Notes）
Amount in
year-end
（1）Guangfo Expressway 101,386,716.36 12,896,806.64 -28,805,701.26 85,477,821.74
（2）Fokai Expressway 324,844,051.11 25,507,589.13 -13,748,191.71 336,603,448.53
(3)Guangdong Expressway Technology 462,883.28 -456.35 462,426.93
Total 426,693,650.75 38,403,939.42 -42,553,892.97 422,543,697.20
Note：Other changes are the part of dividends of subsidiaries attributable to minority shareholders
in the accounting period.
2. Minority shareholders gain/loss
Items Report period
Same period of the previous
year
（1）Guangfo Expressway 12,896,806.64 18,617,210.58
（2）Fokai Expressway 25,507,589.13 19,976,631.87
(3)Guangdong Expressway Technology -456.35 -12,542.19
Total 38,403,939.42 38,581,300.26
V. Notes to the major items of consolidated financial stateme
（I）Monetary Capital
Amount in year-end Amount in year-begin
Items Original
currency
Exchange
rate RMB Original
currency
Exchange
rate RMB
Cash
RMB 146,343.59 73,021.90
HKD
Subtotal 146,343.59 73,021.90
Bank deposit
RMB 621,304,374.32 349,774,544.8860
Amount in year-end Amount in year-begin
Items Original
currency
Exchange
rate RMB Original
currency
Exchange
rate RMB
HKD 601,938.99 0.88153 530,627.29 600,206.25 0.8819 529,315.89
Subtotal 621,835,001.61 350,303,860.77
Other currency
RMB 379,418.52 388,843.09
HKD
Subtotal 379,418.52 388,843.09
Total 622,360,763.72 350,765,725.76
Which restricted the monetary funds as follows：
Items Amount in year-end Amount in year-begin
Guarantee deposit 532,190.98 532,190.98
Total 532,190.98 532,190.98
Monetary Capital at the period end increased RMB 271,595,037.96, with an increase ratio of
77.43%, Main reasons for the increase as follows: the controlling subsidiary of the company
increased long-term and short-term borrowings for the construction expansion in the current
period, so the fund balance left at period end increased.
（2）Account receivable
1. Account receivable
（1）Age analysis：
Amount in year-end Amount in year-begin
Age
Book Balance Proportio
n
Bad debt
povision
Bad
debt
povis
ion
Proport
ion
Book Balance Proportion
Bad debt
povision
Bad debt
povision
Bad
debt
povi
sion
Propo
rtion
Within 1 year 25,997,653.39 100% 12,654,511.88 82.81%
1－2 years
2－3 years
3－4 years
4－5 years
Over 5 years 2,626,994.04 17.19% 2,626,994.04 100%
Total 25,997,653.39 100% 15,281,505.92 100.00% 2,626,994.04 100%61
（2）Items analysis:
Amount in year-end Amount in year-begin
Type
Book Balance Proportion
Bad de
bt povi
sion
Bad debt
povision
Proportion
Book Balance Proportion
Bad debt pov
ision Bad de
bt povision
Bad debt
povision
Proportion
Significant
account
receivable of
single amount
2.The
receivables
that the
individual
amount is not
large but the
risk is great
３ ． Other
risks of credit
features：
Incl ：
Singleaccou
nt with lare
amount
25,619,655.26 98.55% 14,240,911.70 93.19% 2,626,994.04 100%
Single
minor
accounts
377,998.13 1.45% 1,040,594.22 6.81%
Incl ： Single
account
without large
amount but
with greater
risks after
combined
with credit
features
Total 25,997,653.39 100% 15,281,505.92 100% 2,626,994.04 100%
2. The changes of accounts receivable for bad debts are as follows:62
Amount Decreased in current
period
Periods
Book balance at
year begining
Amount
accounted in
current period Transferred back
Reselli
ng
Book balance at
period end
January June
2008(last period)
2,364,294.64 2,364,294.64
January- June 2009
(Current period)
2,626,994.04 2,626,994.04 0.00
3. There is no balance of account receivable due from shareholders holding 5%( 5%) or over of
shares at the end of term.
4. The balance of receivables of the related party is RMB 17,998.13, accounting for 0.07 % of the total
receivables, details in the Notes 7(II)5
5. Account receivable with arrearage amount at the end of term.
Debtor
Relationship
with the
Company
Amount Age Proportion
Guangdong Union electric toll
Co., Ltd.
No
relationship
25,619,655.26
Within 1
year
98.55%
Guangdong Hongzhiri
advertising Co., Ltd.
No
relationship
310,000.00
Within 1
year
1.19%
Guangzhou Shengyuan
advertising Co., Ltd.
No
relationship
50,000.00
Within 1
year
0.19%
Guangdong Lulutong Co., Ltd.
No
relationship
17,998.13
Within 1
year
0.07%
6. The accounts receivable at the period end increased RMB 13,343,141.51, with an increase
ratio of105.44%, Reasons for the decrease are: the accounts receivable of the company at period
end decreased because the separate settlement of the households at all sections was not timely
（III）Prepayment
1.. Age analysis
Age Balance in year-end Balance in year-begin
Amount Proportion Amount Proportion
Within 1 year 216,547,916.57 85.70% 84,897,505.90 99.78%
1－2 years 35,950,471.24 14.23% 190,071.00 0.22%
2－3 years 169,738.00 0.07%
Over 3 years63
Total 252,668,125.81 100.00% 85,087,576.90 100.00%
2. Important payment in advance with account age of 1 year
Item Amount Reason for failure of timely
settlement
Guangdong Highway Construction Co., Ltd.
West Erhuan South Section Company
20,000,000.00 Prepayment for project was not
settled.
Guangdong Nanyue Logistics Co., Ltd. 11,539,328.74 Prepayment for project was not
settled.
GF02 Contract Section of Zhongtie No. 12
Bureau Group Co., Ltd.
3,181,861.50 Prepayment for project was not
settled.
Project Manager Dept. for GF01 Contract
Section of Jiangxi Modern Road & Bridge
Engineering Corporation
1,045,947.00 Prepayment for project was not
settled.
Experiment, Geophysical Prospecting & Test
Center of Guangdong Engineering Survey
Academy
183,334.00 Prepayment for project was not
settled.
Guangzhou Maritime Court 169,738.00 Prepayment for legal costs
3. Prepayment with large amount at the end of term
Balance in year-end Balance in year-begin
Amount Proportion Amount Proportion
（ 1 ） The top five
Arrearage units in
total and
proportion
203,290,050.05 80.46% 75,768,076.18 89.05%
（2）Advance payment is the main unit
Name
Relationship with the
Company
Amount Time Cause
Guangdong Changda
Highway Engineering Co.,
Ltd.
Owned
subsidiary of
parent company
72,192,502.30
Within 1
year
Material
advances
Guangdong Nanyue logistics
Co., Ltd.
Owned
subsidiary of
parent company
56,480,810.75
Within 2
year
Material
advances
Guangdong Jingtong wholly owned 28,958,024.00 Within 1 Material64
Name
Relationship with the
Company
Amount Time Cause
Highway Engineering
Construct Group Co., Ltd.
subsidiary of
parent company
year advances
Guangdong Guanyue
Luqiang Co., Ltd.
Owned
subsidiary of
parent company
21,634,678.30
Within 1
year
Material
advances
Guangdong Highway
Construction Co., Ltd. West
Erhuan South Section
Company
wholly owned
subsidiary of
parent company
20,000,000.00 1－2 years
Material
advances
Jilin Changcheng Luqiao
Construct Engineering Co.，
Ltd.
No relationship 14,795,823.00
Within 1
year
Material
advances
Zhongtie No. 23 Bureau
Group Co., Ltd.
No relationship 13,526,595.00
Within 1
year
Material
advances
Zhongtie No. 12 Bureau
Group Co., Ltd.
No relationship 12,886,018.50
Within 2
year
Material
advances
Total 240,474,451.85
4. There were no important accounts Prepayment from the main shareholders of the
Company holding nore than 5% (including 5%) of the total shares of the Company.
5. Prepayment of the related party is RMB 201,487,055.35, accounting for 79.74% of the total
Prepayment , details in the Notes 7(II)5
6. Prepayment at the period end increased RMB 167,580,548.91, with an increase ratio of
196.95%, Reasons for the increase: the expanded construction of Guangfo and Fokai expressway,
so the prepayment for project materials increased.
（4）Dividend receivable
Items
Amount at
year
beginning
Increase at
this period
Decrease at
this period
Amount at
period end
Reasons
for not
being
recovere
d
Whether the
relevant funds
have signs for
impairment
1.The dividends receivable
with account age less than one
year
14,970,025.14 54,842,253.25 14,970,025.14 54,842,253.25
No65
Items
Amount at
year
beginning
Increase at
this period
Decrease at
this period
Amount at
period end
Reasons
for not
being
recovere
d
Whether the
relevant funds
have signs for
impairment
Of which: the dividend of
Guangzhu East in 2007
14,970,025.14 14,970,025.14
No
The dividend of Guangzhu
East in 2008
54,842,253.25 54,842,253.25 Not been
paid
No
2. The dividends receivable
with account age more than
one year
Total 14,970,025.14 54,842,253.25 54,842,253.25
Dividend receivable at the period end increased RMB 39,872,228.11, Reasons for
the increase: the receivable dividends from Jingzhu Expressway Guangzhu Seciton
Company increased in this period.
（5）Other receivable
1. Account receivable
（1）Age analyse：：
Amount in year-end Amount in year-begin
Age
Book Balance Proportio
n
Bad debt povis
ion
Bad
debt
povisio
n
Proport
ion
Book Balance Proporti
on
Bad debt povi
sion
Bad
debt
povisio
n
Proport
ion
Within 1
year
44,187,891.18 36.80% 402,000.00 0.59% 25,068,036.22 26.88% 102,000.00 0.16%
1－2 years 4,913,183.70 4.09% 264,000.00 0.39% 315,250.00 0.34% 192,000.00 0.30%
2－3 years 262,749.91 0.22% 260,499.91 0.38% 3,296,930.21 3.54% 219,754.00 0.34%
3－4 years 6,416,131.88 5.34% 3,343,565.94 4.88% 3,312,635.05 3.55% 3,284,317.53 5.06%
4－5 years 8,589,493.82 7.15% 8,466,580.00 12.37% 8,634,938.88 9.26% 8,505,980.55 13.10%
Over 5 yea
rs
55,716,996.67 46.40% 55,716,996.67 81.39% 52,631,996.67 56.43% 52,631,996.67 81.04%
Total 120,086,447.16 100% 68,453,642.52 100% 93,259,787.03 100% 64,936,048.75 100%
（2）Items analysis:66
Amount in year-end Amount in year-begin
Type
Book Balance Proporti
on
Bad debt p
ovision
Bad
debt
povis
ion
Proport
ion
Book Balance Proporti
on
Bad debt p
ovision
Bad
debt
povis
ion
Proport
ion
1.Significant
account receivable
of single amount
66,794,504.78 55.62% 66,794,504.78 97.58% 63,193,504.78 67.76% 63,193,504.78 97.32%
2.The receivables
that the individual
amount is not large
but the risk is great
３．Other risks
of credit features：
53,291,942.38 44.38% 1,659,137.74 2.42% 30,066,282.25 32.24% 1,742,543.97 2.68%
Incl ：
Singleaccount
with lare amount
23,290,041.88 19.39%
Single
minor accounts 30,001,900.50 24.98% 1,659,137.74 2.42% 30,066,282.25 32.24% 1,742,543.97 2.68%
Incl：Single
account without
large amount but
with greater risks
after combined
with credit
features
Total 120,086,447.16 100% 68,453,642.52 100% 93,259,787.03 100% 64,936,048.75 100%
2. The changes of accounts receivable for bad debts are as follows:
Amount reduced in
current period
Periods
Book balance at
year begining
Amount
accounted in
current period
Transferred
back
Resel
ling
Book balance at
period end
January- June
2008(last period)
65,516,916.80 -5,527.47 710,349.92 64,801,039.41
January-June
2009(current period)
64,936,048.75 3,601,000.00 83,406.23 68,453,642.5267
3.The other receivables with significant single amount at period end or not significant
but accounting provision for impairment separately:
Other receivables Book balance
Ratio
accounted
Amount for
preparation for
bad debt
Reasons
Kunlun Securities Co.,
Ltd..
50,973,424.87 100% 50,973,424.87 Note 1
Beijing Gelin Enze 12,220,079.91 100% 12,220,079.91 Note 2
Guangzhou Putian Zhongzhi 3,601,000.00 100% 3,601,000.00 Note 3
Total 66,794,504.78 66,794,504.78
Notes1: The parent company once paid RMB33.683,774.79 into KunLun Stock Co, Ltd,
Guangdong expressway technology investment Co, Ltd once paid RMB18.000,000.00 into
KunLun Stock Co, Ltd. QingHai Province XiNing City’s intermediate people's court made a
adjudication under law declared that KunLun Stock Co, Ltd went bankrupt and repaid debt in
November 11, 2006. On March 2007,My company and Guangdong Expressway Technology
investment Co, Ltd had switched the money that paid into KunLun Stock Co, Ltd to other account
receivable, and follow the careful principle to doubtful debts provision.The RMB 710,349.92 credit
was recovered in 2008, and the provision for bad debt is deducted.
2: GuangDong Expressway technology investment Co, Ltd should charge Beijing Green
EnZhe Organic fertilizer Co, Ltd for RMB 12,220,079.91. Eight millions of it was entrust loan,
three millions was temporary borrowing, the rest of it was advance money for another. Beijing
Green EnZe Organic fertilizer Co, Ltd’s operating status was bad and had already ceased
producing, Accordingly, the controlling subsidiary of the company Guangdong Gaoshu Investment
Co., Ltd. accounted full provision for bad debt RMB 12,220,079.91 Provision .
3. The amount of other accounts receivable by Guangdong Express Technology Investment
Co., Ltd., a controlled subsidiary of the Company, from Guangzhou Putian Zhongzhi Technology
Industrial Co., Ltd. is RMB 3,601,000.00. RMB 3,301,000.00 is loan for temporary turnover and
the balance of RMB 300,000.00 is the advanced payment for bankruptcy liquidation. As
Guangzhou Putian Zhongzhi Technology Industrial Co., Ltd. entered bankruptcy liquidation
procedure in June 2009, intrabranch elimination was no longer carried out. Guangdong Express
Technology Investment Co., Ltd.,full provision of RMB 3,601,000.00 for bad debts in respect of
this sum of money.
4. There were no other receivable from the main shareholders of the Company holding nore
than 5% (including 5%) of the total shares of the Company.68
5. The balance of receivables of the related party is 27,134,910.00, accounting for 22.60 % of the
total receivables, details in the Notes 7(II)5
6.Accounts receivable at the end of the top five in the amount
Debtor
Relationship
with the
Company
Property Amount Age Proportion
Kunlun Securities
Co., Ltd.
No relationship Deposit,etc. 50,973,424.87
Over 5
years
42.45%
Beijing Gelin Enze Joint venture
Entrusted loans,
The provisional
Revolving loans,
Current fund
12,220,079.91 1－5 years 10.18%
Guangdong
Expressway Co.,
Ltd.
wholly owned
subsidiary of
parent
company
Current fund 10,589,975.02
Within 1
year
8.82%
Chancheng Branch
of Foshan Municipal
bureau of land and
resources
No relationship Deposit 7,366,300.00
Within 1
year
6.13%
Guangfa Securities
Co., Ltd.
No relationship
details in the Notes
11(2)
3,072,000.00 3－4 years 2.56%
8. Other receivables at period end increased RMB 23,309,066.36 than at period beginning, with
an increase ratio of 82.30%, Reasons for the increase: Current accounts receivable from
Guangdong Expressway Co., Ltd. and security deposit receivable increased in current period.
（VI）Inventory and inventory depreciation reserves
Item Book balance BBaaladn dceeb itn p yoevairs-ieonnd Book balance BaBlaandc ed einb ty peoarv-ibseiognin
Rew materials 76,544.84 88,398.72
In product
Finished products
Store goods 172,210.15 317,312.80
Turnover Material69
Item Book balance BBaaladn dceeb itn p yoevairs-ieonnd Book balance BaBlaandc ed einb ty peoarv-ibseiognin
Consumption of biological
assets
Total 248,754.99 405,711.52
Inventory at the period end decreased RMB 156,956.53, with an decreased ratio of 38.69%
（7）Long-term equity investment
Balance in year-end Balance in year-begin
Items
Book balance
Bad debt
povision
Book balance Bad debt povision
Equity method: Long-term equity
investment
Joint venture 1,002,868,101.82 960,630,468.57
Affiliated company 1,149,423,406.12 1,235,403,805.11
Subtotal 2,152,291,507.94 2,196,034,273.68
Cost method: Long-term equity
investment 37,805,536.35 37,578,736.35 37,020,000.00 36,793,200.00
Total 2,190,097,044.29 37,578,736.35 2,233,054,273.68 36,793,200.00
1. Information of Joint venture and Associated Enterprise70
Name Type Registered
place
Legal
Representative
Property Register capital Proportion Voting
proportion
Joint venture
1. Guangdong Guanghui Expressway
Limited liability
Company
Guangzhou,
Guangdong
Liu Gangliang
Expressway
Management
2,351,678,000.00 30% 30%
2. Zhaoqing Yuezhao Highway Co., Ltd.
Limited liability
Company(Taiwan,
Hong Kong and
Macao and in
cooperation）
Zhaoqing,
Guangdong
Wang Juachen
Expressway
Management
818,300,000.00 25% 25%
3. Beijing Gelin
Limited liability
Company
Beijing Wang Juanji
Organic
fertilizer
production
and sell
20,000,000.00 35% 35%
2. Affiliated company
1.Shenzhen Huiyan Expressway Co., Ltd.
Limited liability
Company
Shenzhen,
Guangdong
Xu Xiaoyang
Expressway
Management
36,000,000.00 33.33% 33.33%
2.Guangdong Maozhan Expressway Co., Ltd.
Limited liability
Company
Guangzhou,
Guangdong
Li Jinfeng
Expressway
Management
1,120,000,000.00 20% 20%
3.Jingzhu Exprwssway Guanzhu
Limited liability
Company(Taiwan,
Hong Kong and
Guangzhou,
Guangdong
Lu Yaxing
Expressway
Management
580,000,000.00 20% 20%71
Name Type Registered
place
Legal
Representative
Property Register capital Proportion Voting
proportion
Macao and in
cooperation）
4.Guangdong Jiangzhong Expressway Co., Ltd.
Limited liability
Company
Guangzhou,
Guangdong
Lu Yaxing
Expressway
Management
1,045,000,000.00 15% 15%
5.Ganzhou Kangda Expressway
Other Limited
liability Company
Ganzhou,
Jiangxi
Yao Diming
Expressway
Management
600,000,000.00 30% 30%
6.Ganzhou Gankang Expressway Co., Ltd.
Limited liability
Company
（State-owned
holding）
Ganzhou,
Jiangxi
Liu Zhequan
Expressway
Management
450,000,000.00 30% 30%
Name
Total assets at the
end
Total liabilitiesat
the end
Total income Net profit Related party relationship
Organiz
ation
Code
Joint venture
1. Guangdong Guanghui Expressway 6,630,545,118.25 4,057,858,616.58 647,076,393.88 219,085,513.29 Joint venture
707685
410
2. Zhaoqing Yuezhao Highway Co., Ltd. 2,459,529,203.54 1,600,345,595.52 102,101,920.50 371,365.68 Joint venture
708157
00-372
Name
Total assets at the
end
Total liabilitiesat
the end
Total income Net profit Related party relationship
Organiz
ation
Code
3. Beijing Gelin 25,925,805.89 16,707,626.85 Joint venture
735596
044
2. Affiliated company
1.Shenzhen Huiyan Expressway Co., Ltd. 479,874,059.28 35,569,153.66 146,894,177.50 83,517,585.76 Affiliated
192203
792
2.Guangdong Maozhan Expressway Co., Ltd. 2,852,978,732.06 2,234,399,388.95 183,521,740.00 6,310,090.08 Affiliated
707668
63-7
3.Jingzhu Exprwssway Guanzhu 4,319,158,356.16 3,064,949,069.77 496,768,802.43 273,264,249.58 Affiliated
617401
445
4.Guangdong Jiangzhong Expressway Co., Ltd. 2,821,836,419.89 1,897,727,295.53 127,815,519.13 -649,181.27 Affiliated
742962
35-6
5.Ganzhou Kangda Expressway 1,998,323,024.90 1,581,105,757.15 11,360,224.00 -59,765,894.72 Affiliated
772390
39-5
6.Ganzhou Gankang Expressway Co., Ltd. 1,477,269,401.18 1,027,269,401.18 Affiliated
799467
19-673
2. Long- term s equity investment- Equity method
Increase/ decrease in the amount
Name of current Equity Initial
amount
Balance in
year-begin
Total
Balance in
year-end
Joint venture
1.Guangdong Guanghui Expressway Co.,
Ltd. 705,503,400.00 728,227,522.82 43,578,427.70 22,147,226.29 771,805,950.52
2. Zhaoqing Yuezhao Highway Co.,
Ltd. 183,690,616.22 231,332,125.86 -269,974.56 231,062,151.30
3. Guangzhou Xinlu 800,000.00 1,070,819.89 -1,070,819.89
4. Beijing Gelin 6,614,483.90
2. Affiliated company
1.Shenzhen Huiyan Expressway 14,024,586.42 208,625,794.92 -42,871,644.31 70,000,000.00 165,754,150.61
2. Guangdong Maozhan Expressway 224,000,000.00 122,453,850.61 1,262,018.02 123,715,868.63
3. Jingzhu Exprwssway Guanzhu 66,779,449.38 472,635,328.71 -60,055,646.19 110,842,253.25 412,579,682.52
4.Guangdong Jiangzhong Expressway
Co., Ltd. 156,750,000.00 134,213,745.86 4,402,622.81 138,616,368.67
5.Ganzhou Kangda Expressway 216,251,100.00 192,475,085.01 -18,717,749.32 173,757,335.69
6.Ganzhou Gankang Expressway Co.,
Ltd. 135,000,000.00 105,000,000.00 30,000,000.00 135,000,000.00
Total 1,709,413,635.92 2,196,034,273.68 -43,742,765.74 202,989,479.54 2,152,291,507.94
Increase/ decrease in the
amount of current Equity
Name Initial
amount
Balance in
year-begin
Total
Of which：
Return
Cash
dividend
Balance in
year-end
Huaxia Securities Co., Ltd. 5,400,000.00 5,400,000.00 5,400,000.00
Huazheng Assets Management Co.
Ltd.
1,620,000.00 1,620,000.00 1,620,000.00
Kunlun Securities Co., Ltd. 30,000,000.00 30,000,000.00 30,000,000.00
Guangzhou Putian Zhongzhi 785,536.35 785,536.35 785,536.35
Total 37,805,536.35 37,020,000.00 785,536.35 37,805,536.35
4. Provision for impairment of long-term equity investment74
Name
Balance in
year-begin
Increase at
this period
Decrease at
this period
Balance in
year-end
Causes
Huazheng Assets Management Co.
Ltd.
1,393,200.00 1,393,200.00 Note 1
Huaxia Securities Co., Ltd. 5,400,000.00 5,400,000.00 Note 2
Kunlun Securities Co., Ltd. 30,000,000.00 30,000,000.00 Note 3
Guangzhou Putian Zhongzhi 785,536.35 785,536.35 Note 4
Total 36,793,200.00 785,536.35 37,578,736.35
Note1 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 RMB 279.132 million and the appraised value was RMB
- 2299.5486 million ,On October 14, 2005, Jianyin CITIC Asset Management Co., Ltd.
issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin
CITIC Asset Management Co., Ltd. was willing to pay the price of not more than RMB 42
million to acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the
Company's opinions. The Company replied on December 5, 2005, abandoning the
preemptive right under the same conditions. The Company made provision of RMB 1.3932
million for impairment in respect of this long-term equity investment of RMB 1.62 million.
Note 2. The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered
liquidation procedure in December 2005. The Company made full provision for impairment
in respect of this long-term equity investment of RMB 5.4 million.
Note 3. The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered
liquidation procedure in October 2005. Guangdong Express Technology Investment Co., Ltd.,
a controlled subsidiary of the Company, made full provision for impairment in respect of its
long-term equity investment of RMB 30 million in Kunlun Securities Co., Ltd.
Note 4. Guangzhou Putian Zhongzhi Technology Industrial Co., Ltd. entered bankruptcy
liquidation procedure in June 2009. Guangdong Express Technology Investment Co., Ltd., a
controlled subsidiary of the Company, made full provision for impairment in respect of long-term
equity investment of RMB 785,536.35 in Guangzhou Putian Zhongzhi Technology Industrial Co.,
Ltd.
5. The amount from beginning of the year to end-of-period of long term shared equity
investment is decrease, the decrease money is RMB43,742,765.7, the decreased proportion is
1.99%, the main reasons of increasing is that : In this period, RMB 4,500,000.00 investment
was increased to Gangdong Jiangzhong Expressway Co., Ltd. and RMB 30,000,000.0075
investment to Ganhou Gankang Expressway Co., Ltd.; net profit of the units being
invested decreased, and the corresponding owner's equity decreased. According to
equity accounting method, the appropriate balance of long-term equity investment
of the company also decreased.
（8）Original price of fixed assets and accumulated depreciation
1. Original price of fixed assets
Type
Balance in
year-begin
Increase at
this period
Decrease at
this period
Balance in
year-end
Guangfo
Expressway
957,801,778.55 957,801,778.55
Fokai Expressway 3,552,525,054.54 3,552,525,054.54
Jiujiang Bridge 308,511,962.83 308,511,962.83
House and Building 174,402,291.04 174,402,291.04
Machine equipment 13,002,392.68 13,002,392.68
Transportation
Equipment
45,730,028.90 867,895.00 718,921.80 45,879,002.10
Electricity equipment and
other
170,903,116.39 7,186,309.90 821,111.67 177,268,314.62
Total 4,914,364,662.10 316,566,167.73 1,540,033.47 5,229,390,796.36
Including：The original price of projects under construction transferred
to fixed assets is RMB 210,392,884.27 .
2. Accumulated depreciation
Type
Balance in
year-begin
Increase at
this period
Extraction at
this period
Decrease at
this period
Balance in
year-end
Guangfo
Expressway
439,743,909.33 15,119,031.15 454,862,940.48
Fokai Expressway 796,656,033.35 50,815,391.26 847,471,424.61
Jiujiang Bridge 47,848,921.21 1,057,511.52 48,906,432.73
House and Building 69,129,041.19 3,371,361.87 72,500,403.06
Machine equipment 3,443,072.08 92,635.08 3,535,707.16
Transportation
Equipment
33,990,095.45 1,314,881.33 647,029.62 34,657,947.16
Electricity equipment
and other
127,537,251.65 6,348,743.32 880,344.52 133,005,650.4576
Type
Balance in
year-begin
Increase at
this period
Extraction at
this period
Decrease at
this period
Balance in
year-end
Total 1,470,499,403.05 47,848,921.21 78,119,555.53 1,527,374.14 1,594,940,505.65
3. Book vulue of fixed assets
Type
Balance in
year-begin
Increase at
this period
Decrease at
this period
Balance in
year-end
Guangfo
Expressway
518,057,869.22 15,119,031.15 502,938,838.07
Fokai Expressway 2,755,869,021.19 50,815,391.26 2,705,053,629.93
Jiujiang Bridge 308,511,962.83 48,906,432.73 259,605,530.10
House and Building 105,273,249.85 3,371,361.87 101,901,887.98
Machine equipment 9,559,320.60 92,635.08 9,466,685.52
Transportation
Equipment
11,739,933.45 867,895.00 1,386,773.51 11,221,054.94
Electricity equipment
and other
43,365,864.74 7,186,309.90 6,289,510.47 44,262,664.17
Total 3,443,865,259.05 316,566,167.73 125,981,136.07 3,634,450,290.71
4. The original value of Fixed assets at period end increased RMB 315,026,134.26 than at
period beginning, with an increase ratio of 6.41%. Reasons for the increase: Jiujiang Bridge was
open to traffic again and transferred into fixed assets.
Accumulated depreciation at period end increased RMB 124,441,102.60 than the number at
the beginning of the year, with an increase ratio of 8.46%.the reasons were: the depreciation
accounted this year increased.77
（9）Construction on process
1.Change of Construction on process
Decrease at this period
Name Budget
Balance in
year-begin
Increase at
this period
Switch to fixed
asset
Other
decrease
Balance in year-end Capital Proportion
Fokai Extension
Project
4,002,000,000.00 717,359,297.43 166,838,610.94 884,197,908.37
Self funds,
Credit from
financial
institutio
ns
22.11%
Yayao to Xiebian
Extension Project
373,690,000.00 195,113,971.18 97,511,004.74 292,624,975.92
Self funds,
Credit from
financial
institutio
ns
78.31%
Jiujiang Bridge Repair
Project
135,989,810.21 69,677,204.76 205,667,014.97
Self funds,
Credit from
financial
institutio
ns
GuoG325Heshan Road
Repair Project 12,406,939.00 11,785,118.00 11,785,118.00 Self funds 94.99%
Yayao Station project logo 3,675,600.00 3,501,000.00 60,000.00 3,561,000.00 Self funds 100%78
Decrease at this period
Name Budget
Balance in
year-begin
Increase at
this period
Switch to fixed
asset
Other
decrease
Balance in year-end Capital Proportion
charges
Yayao station 1,457,462.87 1,457,462.87 Self funds
Surface of video
surveillance and
intelligence board
6,033,272.00 93,750.00 6,127,022.00 Self funds
G325 Jiujiang Bridge Toll
station extension 4,017,746.00 2,494,947.00 6,512,693.00 Self funds
Hengsha New staff
quartersBuilding project 8,000,000.00 3,917,284.86 1,971,620.05 5,888,904.91 Self funds 73.61%
Gonghe Conservation
Centre 5,000,000.00 636,227.00 1,752,889.00 2,389,116.00 Self funds 47.78%
Fokai Expressway repair
Project
5,295,000.85 5,295,000.85
Self funds,
Credit from
financial
institutio
ns
G325 Jiujiang Bridge
cable-stayed bridge bealth
monitoring system
1,770,000.00 1,770,000.00 Self funds
Other project 1,465,025.42 969,071.90 716,437.90 1,745.00 1,717,659.42 Self funds
Total 1,083,046,214.97 346,665,844.24 209,944,452.87 209,944,45
2.87 1,219,765,861.34
2. The capitalization amount of borrowing costs which were included in project cost.79
Project name Balance in year-begin
Increase at this
period
Amount of fixed
assets
transferred to
this period
Other decreases
Balance in
year-end
The rate of capitalization of
capitalized amount determined in
this period
Fokai Extension Project 38,310,371.04 29,344,740.79 67,655,111.83 5.212%
Yayao to Xiebian
Extension Project
1,786,050.00 1,857,600.00 3,643,650.00
4.63%
Jiujiang Bridge Repair
Project
539,487.00 799,595.20 1,339,082.20
5.162%
Fokai Expressway repair
Project
2,544.53 2,544.53
5.346%
Total 40,635,908.04 32,004,480.52 1,339,082.20 71,301,306.36
3. The Construction on process at period end increased RMB 136,719,646.37 than at period beginning, with an increase ratio of 12.62%.
The main reasons of increasing is that : Expansion project of Guangfo and Fokai Expressway.80
（10）Intangible assets
Items
Balance in
year-begin
Increase at
this period
Decrease at
this period
Balance in
year-end
I.Total cost 135,319,603.00 135,319,603.00
Jiujiang Bridge management
right
66,917,573.76 66,917,573.76
Jiujiang Land Use right 68,402,029.24 68,402,029.24
II.Total of accumulative
amortized
64,098,756.00 3,561,042.00 67,659,798.00
Jiujiang Bridge management
right
31,697,784.00 1,760,988.00 33,458,772.00
Jiujiang Land Use right 32,400,972.00 1,800,054.00 34,201,026.00
III. Total of Provision
for devaluation of
intangible asset
Jiujiang Bridge management
right
Jiujiang Land Use right
IV.Book value Total of
intangible assets
71,220,847.00 3,561,042.00 67,659,805.00
Jiujiang Bridge management
right
35,219,789.76 1,760,988.00 33,458,801.76
Jiujiang Land Use right 36,001,057.24 1,800,054.00 34,201,003.24
（11）Long term amortize expenses
Items Original
amount
Balance in
year-begin
Increase
in this
period
Amortized
expenses
Accumulative
amortized
Balance in
year-end
Surplus
Amortize
term
Building
maintain
755,956.74 240,920.63 28,106.04 543,142.15 212,814.59 3.79
years
Highway
Depreciation
9,299,304.27 431,093.31 369,508.80 9,237,719.76 61,584.51 1 month
Other 3,659,819.43 1,296,933.88 361,438.81 2,724,324.36 935,495.07 1.29 year81
Items Original
amount
Balance in
year-begin
Increase
in this
period
Amortized
expenses
Accumulative
amortized
Balance in
year-end
Surplus
Amortize
term
Total 13,715,080.44 1,968,947.82 759,053.65 12,505,186.27 1,209,894.17
Long term amortize expenses at period end decrease RMB 759,053.65 than at period
beginning, with an decrease ratio of 38.55%.
（12）Deferred income tax assets and deferred income tax liability
1. Confirmed the deferred income tax assets
Items Balance in year-end Balance in year-begin
Loss of clearing
unapproved fixed assets
395,598.38 395,598.38
Timing difference between
accounting and tax
10,000,000.00 10,572,270.05
Total 10,395,598.38 10,967,868.43
The amount of temporary differences corresponding to asset projects which make
temporary differences：
Items Amount of temporary differences
Loss of clearing unapproved
fixed assets
1,582,393.52
Timing difference between
accounting and tax
40,000,000.00
Total 41,582,393.52
2. Confirmed the deferred income tax liability
Items Balance in year-end Balance in year-begin
Impact from accumulated
depreciation
110,856,273.74 101,054,676.23
Total 110,856,273.74 101,054,676.23
The amount of temporary differences corresponding to asset projects which make temporary
differences：
Items Amount of temporary differences82
Impact from accumulated
depreciation(Guangfo)
113,525,380.81
Impact from accumulated
depreciation(Fokai)
343,522,759.84
Total 457,048,140.65
Notes to deferred income tax liabilities: The Company account accumulated depreciation
according to traffic volume in accounting, and account accumulated depreciation by straight line
method from tax law, if there is difference from time, the deferred income tax liabilities will
produce.
（13）Provision for depreciation of assets
Decreased amount in
current period
Items
Book balance at
the year
beginning
Withdrawal
amount
planned in
current period
Switch back
Switch
cancell
ation
Book balance at
the period end
I.Provision for bad debts 67,563,042.79 3,601,000.00 2,710,400.27 68,453,642.52
II.Provision for falling price of
inventory
III.Provision for devaluation of
financial asset available for
sales
IV.Provision for devaluation of
held-to maturity investment
V.Provision for devaluation of
long-term equity investment
36,793,200.00 785,536.35 37,578,736.35
VI.Provision for devaluation of
investing property
VII.Provision for devaluation of
fixed assets
VIII.Provision for devaluation
of engineering materials
IX.Provision for devaluation of
construction in progress
X.Provision for devaluation
Of productive biological asset
Including ： Provision for
devaluation of mature
productive biological asset
XI. Provision for devaluation of
oil asset
XII. Provision for devaluation of
intangible asset
XIII. Provision for devaluation
of goodwill
XIV.Other83
Total 104,356,242.79 4,386,536.35 2,710,400.27 0.00 106,032,378.87
（14）Short –tem loan
1. Short –tem loan
Items Balance in year-end Balance in year-begin
Credit loan 258,000,000.00 300,000,000.00
Impawn loan
Mortgage loan
Guarantee loan
Total 258,000,000.00 300,000,000.00
2. Short –tem loan at period end decreased RMB 42,000,000.00 than at period beginning,
with an decreased ratio of 14%. The main reasons of increasing is that : reduce short-term
borrowings.
（15）Account payable
Items Balance in year-end Balance in year-begin
Within 1 year 185,849,972.17 89,095,271.49
1－2 years 2,549,253.43
2－3 years 4,127,382.33 1,728,128.90
Over 3 years 13,728,261.18 13,728,261.18
Total 203,705,615.68 107,100,915.00
1. There were no other receivable from the main shareholders of the Company holding nore
than 5% (including 5%) of the total shares of the Company.
2. The balance of payable of the related party is RMB 147,677,447.40, accounting for 72.50
% of the total payable, details in the Notes 7(II)5
3. High balance account payable over 1 year has listed below
Name Amount Not return
cause
Remark
Guangdong Expressway
Co.,Ltd
13,728,261.18
Not
settlement
Account payable
of Xiebian
Project and
Guangfo second84
expansion project
quality amount
Guangdong Xinyue 2,359,189.18
Not
settlement
Yuexi join
Project account
4. Account Payable at the period end increased RMB 96,604,700.68 than at period beginning,,
with an increase ratio of 90.20%, Increase reason: jiujiang bridge repair project to increase fixed
assets transfer to accounts payable.
（16）Advance account
Items Balance in year-end Balance in year-begin
Within 1 year 6,402,672.80 6,000,000.84
1－2 years 125,700.72
2－3 years
Over 3 years
Total 6,402,672.80 6,125,701.56
1. There were no other receivable from the main shareholders of the Company holding nore
than 5% (including 5%) of the total shares of the Company.
2. The balance of payable of the related party is RMB 569,338.58, accounting for 8.89 % of
the total payable, details in the Notes 7(II)5
3. Advance account at the period end increased RMB 276,971.24, with an increased ratio of
4.52%.
（17）Payable Employee wage
1. Payable Employee wage
Items Balance in
year-begin
Increase in this
period
Payable in this
period
Balance in
year-end
1.wage,bonuds,subsidy 10,716,309.46 33,357,867.75 36,865,402.28 7,208,774.93
2.Employee welfare 658,939.89 2,103,199.83 2,103,199.83 658,939.89
3.Security insurance 43,411.82 6,759,238.86 5,909,238.86 893,411.82
Of which：1．Medical insurance 1,317,938.17 1,317,938.17 -
2．Basic old-age insurance 3,588,135.83 3,588,135.83 -
3．Annuity Payment 1,482,881.00 632,881.00 850,000.00
4.Unemployment insurance 101,283.60 101,283.60 -
5．Work injury insurance 14,695.52 176,057.38 174,459.58 16,293.32
6．Maternity insurance 27,118.50 92,942.88 92,942.88 27,118.5085
Items Balance in
year-begin
Increase in this
period
Payable in this
period
Balance in
year-end
4. Housing fund 125,260.74 4,987,415.00 4,850,435.00 262,240.74
5. Labour union outlay and
Employee Educatation outlay
283,273.12 1,137,413.54 1,027,075.05 393,611.61
6.. Non-Money Welfare 1,736,865.87 1,736,865.87
7.. Due to the lifting of labor
relations for compensation -
8. Staff incentive fund
9.Other 1,080,776.67 1,080,776.67
Of which：paid Cash
Total 11,827,195.03 51,162,777.52 53,572,993.56 9,416,978.99
2. Payable Employee wage at the period end decreased RMB 2,410,216.04 than at period
beginning,with an decreased ratio of 20.38%. Increase reason: The bonuses for which provision
was made at the end of last year were paid in current period.
（18）Payable tax
Type Balance in
year-end
Balance in
year-begin
Legal tax tate
VAT 144,718.87 17%
Bunsiness tax 3,253,207.90 3,033,131.34 3%、5%
City construction tax
119,746.75 102,011.83
Turnover tax
7%、5%
Education subjion 74,663.02 67,062.10
Enterprise income tax -2,927,749.48 -315,878.82 25%、18%
Property tax 76,294.95 1,256.07
Land use tax 139,842.00 297,840.00
Defend expense 104,436.91 96,101.76
Individual income tax 57,672.70 485,681.27
Stamp tax
Total 898,114.75 3,911,924.42
Payable tax at the period end Decrease RMB 3,013,809.67 than at period beginning,with an
Decrease ratio of 77.04%. Main reasons were: Over-paid corporate income tax was written back at
the end of period, the income was less than that of last year, so the corresponding payable taxes
were reduced.
（19）Interest payable86
Items Balance in year-end Balance in year-begin
Pay the interest for long-term
loans by installments.
4,954,624.42 4,995,260.80
Interet of company bonds
Payable interest for short-term
borrowings
936,832.50 542,587.50
Total 5,891,456.92 5,537,848.30
（20）Dividend payable
Names and categories of
investors
The end of arrears
of dividend
The Beginning of
arrears of
dividend
Reasons for not being paid
Zhujiang Construction
Investment Co., Ltd.
27,365,416.20
Dividends for 2008 were
not paid yet.
Dividends for
shareholders of
A-share and B-share of
Guangdong Expressway
138,308,961.28 12,316,103.37
Dividends for 2008 were
not paid yet.
Total 165,674,377.48 12,316,103.37
Dividend payable at the period end increased RMB 153,358,274.11 than at period
beginning,with an increased ratio of 1245.19%. Reasons for the change:
According to resolution in 2008，Guangfo Expressway Co.,Ltd and the Board of
Directors of the Company announced that the provision dividends for 2008 were not
paid yet. Guangfo Expressway Co.,Ltd and the Board of Directors of the Company
according to resolution in 2008 the provision dividends for 2008 were not paid yet.
（21）Other payable
Items Balance in year-end Balance in year-begin
Within 1 year 98,515,369.25 217,525,440.30
1－2 years 97,536,442.25 6,308,274.30
2－3 years 2,933,947.76 4,294,395.4387
Over 3 years 15,407,774.73 35,289,501.88
Total 214,393,533.99 263,417,611.91
1. There were no other receivable from the main shareholders of the Company holding nore
than 5% (including 5%) of the total shares of the Company.
2. The balance of payable of the related party is RMB 148,864,057.40, accounting for 69.43 %
of the total payable, details in the Notes 7(II)5
3. High balance Other payable over 1 year has listed below
Name Amount Not Refund cause Remark
Guangdong Guanghui
ExpresswayCo., Ltd.
104,979,364.01 Current account no
rertur
Current Account
Guangdong Guanyue 2,293,604.00 Project no
settlement
Project Guarantee
account
Total 107,272,968.01
4. Other payabnles with the greater amount
Name Amount Content Remark
Zhongtie No.12 Bureau
Group Co., Ltd.
16,265,494.00 Project account
Project Guarantee
account
Guangdong Changda
Engineering Co., Ltd.
16,155,179.87 Project account
Project Guarantee
account
GF01 Contract Section
Management Dept of Jiangxi
Xiandai Luqiao Engineering
Company
11,975,821.00 Project account
Project Guarantee
account
Guangdong Guanyue Luqiao
Co., Ltd. 12,611,802.70 Project account
Project Guarantee
account and Contract
guarantees
Shenzhen Sitong Investment
Development Co., Ltd.
10,300,000.00 Compensation
Guangdong Guanhui
Expressway Co., Ltd.
104,979,364.01 Current account88
Total 172,287,661.58
5. Other payable at the period end decreased RMB 49,024,077.92 than at period
beginning,with an decreased ratio of 18.61%.
（22）Non-current liability due in 1 year
Items Balance in year-end Balance in year-begin
Long-term loan 450,000,000.00 290,000,000.00
Bond payable
Long-term payable
Total 450,000,000.00 290,000,000.00
1. Long-loan due in 1 year
Items Balance in year-end Balance in year-begin
Credit loan 450,000,000.00 290,000,000.00
Impawn loan
Mortgage loan
Guarantee loan
Total 450,000,000.00 290,000,000.00
Name
The
beginning
of Date
Termination
Date
Balance in
year-end
Balance in
year-begin
China Everbright
Bank ,Wuyang Branch
2006-4-11 2009-4-11 100,000,000.00
Constrution
Bank ,Guangzhou Liwan
Branch
2008-12-3 2009-12-2 40,000,000.00 40,000,000.00
Constrution
Bank ,Guangzhou Liwan
Branch
2009-1-6 2009-12-2 260,000,000.00
Industrial and commercial
Bank..Guangzhou Second
Branch
2008-10-30 2009-10-21 150,000,000.00 150,000,000.00
Total 450,000,000.00 290,000,000.0089
（23）Long –term loan
Items Balance in year-end Balance in year-begin
Credit loan 2,732,664,803.54 2,348,324,803.54
Impawn loan
Mortgage loan
Guarantee loan
Shareholder loans
Total 2,732,664,803.54 2,348,324,803.54
Name
The
beginning
of Date
Termination
Date
Balance in
year-end
Balance in
year-begin
Industry Bank.
Guangzhou Tianhebei
Branch
2003-11-28 2011-11-28 100,000,000.00 100,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2005-6-30 2010-6-30 50,000,000.00 50,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2006-5-11 2011-5-11 50,000,000.00 50,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2008-4-24 2010-4-24 100,000,000.00 100,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2008-6-10 2023-6-10 200,000,000.00 200,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2008-4-23 2023-4-23 200,000,000.00 200,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2008 2023 300,000,000.00 300,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2009-5-26 2014-5-26 3,170,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2009-6-2 2024-5-26 18,400,000.00
Industrial and commercial
Bank..Guangzhou Second
Branch
2005-7-28 2012-10-31 150,000,000.00 150,000,000.00
Communications
Bank ,Foshan
Branch
2008 2015 300,000,000.00 300,000,000.00
SPD Guangzhou Jiefang
Road Branch 2008 2011 70,000,000.00 70,000,000.0090
Name
The
beginning
of Date
Termination
Date
Balance in
year-end
Balance in
year-begin
SPD Guangzhou Jiefang
Road Branch 2009-1-20 2012-1-19 4,000,000.00
SPD Guangzhou Jiefang
Road Branch 2009-3-5 2012-3-4 3,000,000.00
SPD Guangzhou Jiefang
Road Branch 2009-3-24 2012-3-23 9,000,000.00
SPD Guangzhou Jiefang
Road Branch 2009-4-28 2012-4-27 11,700,000.00
Constrution
Bank ,Guangzhou Liwan
Branch
2003-12-29 2013-9-28 578,324,803.54 578,324,803.54
China Everbright
Bank ,Wuyang Branch 2009-1-9 2018-1-8 111,730,000.00
China Everbright
Bank ,Wuyang Branch 2009-6-25 2019-6-25 5,000,000.00
Shenzhen Development
Bank 2008-6-11 2013-6-10 100,000,000.00 100,000,000.00
China CITIC Bank,
Dongshan Branch 2009-3-27 2023-8-15 135,220,000.00
Mingsheng
Bank ,Guangzhou Branch 2009-6-25 2019-5-18 3,120,000.00
China merchants Bank.
Guangzhou Baiyun Branch 2008-1-10 2011-1-9 60,000,000.00 60,000,000.00
China merchants Bank.
Guangzhou Baiyun Branch 2008-6-19 2011-1-9 40,000,000.00 40,000,000.00
Industrial and commercial
Bank..Guangzhou
Fangchun Branch
2008-6-27 2011-6-16 50,000,000.00 50,000,000.00
Agricultural Bank of
China, Zhongshan No.1
Road Branch
2009-5-31 2012-5-31 30,000,000.00
Agricultural Bank of
China, Zhongshan No.1
Road Branch
2009-6-23 2012-6-23 50,000,000.00
Total 2,732,664,803.54 2,348,324,803.54
Long-term loan at the period end Increase RMB 384,340,000.00 than at period
beginning,with an Increase ratio of 16.37%. Increase reason: Borrowings increased due to
expanded construction of the controlling subsidiary.
（24）Capital share
Items ShareBs alance in year-Aenmd ount SharBesa lance in year-Abemgoinu nt
A shares （Face value of each
share was 1 RMB ）
908,367,748 908,367,748.00 908,367,748 908,367,748.00
B shares （Face value of each 348,750,000 348,750,000.00 348,750,000 348,750,000.0091
Items ShareBs alance in year-Aenmd ount SharBesa lance in year-Abemgoinu nt
share was 1 RMB ）
Total 1,257,117,748 1,257,117,748.00 1,257,117,748 1,257,117,748.00
Changes in Capital shares
Balance in
year-begin Changed（+，-） Balance in year-end
Items
Amount
Prop
ortio
n
％
Share
allot
ment
Bon
us
shar
es
Capit
alizati
on of
com
mon
reserv
e
fund
Other Subtotal Amount
Propo
rtion
％
1.Shares with conditional
subscription
1.State-owned shares 408,243,602 32.47 717,520（Note） 717,520 408,961,122 32.53
2.State –owned legal
person shares
23,468,541 1.87 23,468,541 1.87
3.Other domestic shares 17,093,725 1.36 -5,431,998（Note） -5,431,998 11,661,727 0.93
Including：
Domestic non-state
ovened legal person
shares
12,930,076 1.03 -2,929,191（Note） -2,929,191 10,000,885 0.80
Domestic natural person
shares
3,961,034 0.32 -2,502,807（Note ） -2,502,807 1,458,227 0.12
Executives
shares
202,615 0.01 202,615 0.01
(4). Foreign shares
Including：
Foreign legal person
shares
Domestic natural person
shares
Total Shares with
conditional subscription
448,805,868 35.70 -4,714,478 -4,714,478 444,091,390 35.33
2.Shares with
uncounditional
subscription
(1). Common shares in
RMB
459,561,880 36.56 4,714,478 4,714,478 464,276,358 36.93
(2).foreign shares in
domestic market
348,750,000 27.74 348,750,000 27.74
(3).Foreign shares in
overseas market
(4)other92
Balance in
year-begin Changed（+，-） Balance in year-end
Items
Amount
Prop
ortio
n
％
Share
allot
ment
Bon
us
shar
es
Capit
alizati
on of
com
mon
reserv
e
fund
Other Subtotal Amount
Propo
rtion
％
Total Shares with
uncounditional
subscription
808,311,880 64.30 4,714,478 4,714,478 813,026,358 64.67
3．.Total of capital shares 1,257,117,748 100 1,257,117,748 100
Notes：(1) In the report period, 679 shareholders repaid 717,520 shares to Guangdong
Communication Group Co., Ltd. as consideration. 323,156 domestic legal person shares and
394,364 domestic natural person shares were converted into state shares, were still the shares
with limited sale conditions.
(2) In the report period, 2,083,631 domestic legal person shares subject to sale restriction and
2,539,239 domestic natural person shares subject to sale restriction were listed for trading and
converted into shares not subject to sale restriction on April 3, 2009. 91,608 domestic legal person
shares subject to sale restriction were listed for trading and converted into shares not subject to
sale restriction on May 5, 2009. After judicial confirmation, 430,796 domestic legal person shares
were converted into domestic natural person shares, which were still subject to sale restriction.
（25）Capital reserves
Items Balance in
year-begin
Increase
in this
period
Decrease
in this
period
Balance in year-end
Share capital premium 1,534,759,970.60 1,534,759,970.60
Other capital reserves 146,885.72 146,885.72
Total 1,534,906,856.32 1,534,906,856.32
（26）Surplus reserves
Items Balance in
year-begin Increase in
this period
Decrease
in this
period
Balance in
year-end
Statutory Surplus reserves 91,921,501.73 91,921,501.73
Statutory commonweal fund
Repertory fund93
Items Balance in
year-begin Increase in
this period
Decrease
in this
period
Balance in
year-end
Enterprise Development fund
Other Surplus reserves
Total 91,921,501.73 91,921,501.73
（27）Retained profit
Items
Report period
Same period of the
previous year
Balance at the end of last year 537,158,754.16 488,675,530.65
Add：Change of accounting policy
Correcting previous errors
Balance at the beginning of current yea 537,158,754.16 488,675,530.65
Add: Net profit attributable to the owners of
parent company
215,787,292.73 251,244,086.75
Other switch into
Less ： Withdrawing statutory surplus public
reserve
Withdrawing Employee incentive and welfare
fund
Withdrawing Repertory fund
Withdrawing Enterprise Development fund
The return of investment profits
Preferred stock dividend payable
Withdrawing Surplus reserves
Common stock dividend payable 125,711,774.80 301,708,259.52
Transferring into capital
Balance at the end of this term 627,234,272.09 438,211,357.88
（28）Operating income and operating cost
Items Report period Same period of the previous year
Income Cost Income Cost
Main operation 467,835,596.38 166,221,106.86 488,725,065.00 180,543,856.36
Other operation 3,981,153.37 1,438,571.39 4,210,218.48 981,149.30
Total 471,816,749.75 167,659,678.25 492,935,283.48 181,525,005.66
1. The particular figures about item Main operating income and Main operating cost has
listed as follows94
Report period Same period of the previous year
Items Income for main
operation
Cost for main
operation
Income for main
operation
Cost for main
operation
（1）Industry
（2）Business
（3）Real estate
（4）Tourism catering
services
（ 5 ） Highway
Transportation
466,771,765.00 164,488,334.30 486,618,485.00 179,202,869.37
（6）Other 1,063,831.38 1,732,772.56 2,106,580.00 1,340,986.99
Total 467,835,596.38 166,221,106.86 488,725,065.00 180,543,856.36
2. The particular figures about Product Main operating income and Main operating cost has
listed as follows
Report period Same period of the previous year
Items Income for main
operation
Cost for main
operation
Income for main
operation
Cost for main
operation
(1)Toll 466,771,765.00 164,488,334.30 486,618,485.00 179,202,869.37
(2)Other 1,063,831.38 1,732,772.56 2,106,580.00 1,340,986.99
Total 467,835,596.38 166,221,106.86 488,725,065.00 180,543,856.36
3. The particular figures about Area Main operating income and Main operating cost has
listed as follows
Report period Same period of the previous year
Area Income for main
operation
Cost for main
operation
Income for main
operation
Cost for main
operation
Guangfo Expressway 132,732,823.00 44,984,731.03 156,020,085.00 46,601,207.27
Fokai Expressway 331,564,121.00 112,971,489.81 330,598,400.00 127,142,498.11
Jiujiang Bridge 2,474,821.00 6,532,113.46 5,459,163.99
Other 1,063,831.38 1,732,772.56 2,106,580.00 1,340,986.99
Total 467,835,596.38 166,221,106.86 488,725,065.00 180,543,856.36
4. The amount from current period to last year same period of operation income is Decrease,
the decrease number is RMB21,118,533.73, the decrease proportion is 4.28%, Reasons for the
decrease: The toll income of Guangfo Expressway decreased in current period due to closure of
Xiebian Ramp of Guangfo Expansion Project on October 28, 2008 and split traffic resulted from
the commencement of use of South China Expressway (3rd Phase) and Guangming Expressway in
the first half of this year.95
（29）Business tax and subjoin
Items Statutory tax rate
Report period
Same period of the previous
year
Business tax 3%、5% 14,470,361.50 14,984,234.54
Urban
construction
tax
7% 724,075.36 707,495.07
Education
surcharge 3% 311,364.59 304,445.76
Other 28,170.75 33,393.45
Total 15,533,972.20 16,029,568.82
The amount from current period to last year same period of sales tax and addition is Decrease,
the decrease number is RMB495,596.62, the decrease proportion is 3.09%, the main reason is that
decrease income from toll fee caused the decrease money of the corresponding taxes.
（30）Management expenses
Items
Report period
Same period of the
previous year
Total Management expenses 47,896,913.39 45,822,121.24
Management expenses rate 10.15% 9.30%
The amount from current period to last year same period of Management expenses is
increases, the Increases number is RMB2,074,792.15, the increase proportion is 4.53%.
（31）Financial Expenses
Items
Report period
Same period of the
previous year
Interest expense 70,327,489.21 62,053,598.63
Less:Interest income 1,526,537.90 2,199,496.29
Exchange Income and loss 217.14 33,503.88
Other 55,404.15 66,394.84
Total 68,856,572.60 59,954,001.06
The amount from current period to last year same period of financial cost is increases, the
Increases number is RMB8,902,571.54, the increase proportion is 14.85%. Reasons for the
increase: Bank borrowings in the current period increased, and the corresponding
interet payments increased.96
（32）Loss for depreciation of assets
Items
Report period
Same period of the
previous year
1．Loss for bad debts 3,601,000.00 -715,877.39
2．Loss for falling price of Inventory
3．Loss for devaluation of financial
asset available for sales
4．Loss for devaluation of held-to
maturity investment
5．Loss for devaluation of long-term
equity investment
785,536.35
6．Loss for devaluation of investing
property
7．loss for devaluation of fixed assets
8．loss for devaluation of engineering
materials
9．loss for devaluation of
construction in progress
10．loss for devaluation
Of productive biological asset
11．loss for devaluation of oil asset
12．loss for devaluation of intangible
asset
13．loss for devaluation of goodwill
14．other
Total 4,386,536.35 -715,877.39
（33）Investment income
Items
Report period
Same period of the
previous year
1. Iinvestment income from
financial asset
(1). Investment income obtained
during holding transactional
financial assets
(2). Investment income obtained
during holding due investments.97
Items
Report period
Same period of the
previous year
(3). Investment income obtained
during holding financial assets for
sale
(4). Investment income obtained by
disposing transactional financial
assets
(5).Investment income obtained by
disposing due investment held
(6). Investment income obtained by
disposing financial investment for
sale
2. Investment income from
long-term equity
132,630,851.33 158,544,079.41
(1). Long-term equity investment
income conformed according to
cost method
(2). Long-term equity investment
income conformed according to
equity method (a total of 10)
125,514,780.90 158,544,079.41
(3). Investment income from
producing Long-term equity
investment(a total of 2)
7,116,070.43
3．Other
Total 132,630,851.33 158,544,079.41
Of which：
(1). long-term equity investment incomes confirmed by equity method include:
Unit
Report period
Same period of the
previous year
Guangdong Maozhan Expressway
Co., Ltd.
1,262,018.02 3,637,865.11
Guangdong Guanghui Expressway 65,725,653.99 71,375,680.63
Zhaoqing Yuezhao Highway -269,974.56 3,246,135.28
Guangzhou Xinlu -302,752.79 -770,444.55
Beijing Gelin Enze
Shenzhen Huiyan Expressway 27,128,355.69 31,025,120.3098
Unit
Report period
Same period of the
previous year
Jingzhu Expressway Guangzhu 50,786,607.06 56,595,440.16
Guangdong Jiangzhong
Expressway
-97,377.19 -806,567.33
Ganzhou Kangda Expressway -18,717,749.32 -5,759,150.19
Ganzhou Gankang Expressway
Total 125,514,780.90 158,544,079.41
（2）Disposal of long-term equity investment return on investment include:
Unit
Report period
Same period of the
previous year
Guangzhou Xinlu 28,932.90
Guangzhou Putian Zhongzhi 7,087,137.53
Total 7,116,070.43
1. There were no significant limits on investment income of the Company.
2. Investment income happened in the current period decreased RMB 25,913,228.08 over the
previous period, with decrease ratio 16.34%, the reasons for the decrease: the net profit of every
expressway had growth in the current year, the corresponding investment income also increased.
（34）Non-operation income
Items
Report period
Same period of the
previous year
1. Total profits of non-current assets
disposal
Including ： Fixed asset disposal
profits
Intangible asset disposal profits
2. Non-monetary assets exchange
profit
3. Debt restructuring profits
4．Donation income
5．Government Subsidy
6．Check income 42,062.00
7．Road permits claims income 908,097.53 1,538,726.56
8．Sell Ticket surplus 4,689.00 42,062.00
9．IC card Cost fee 15,375.00 12,425.0099
Items
Report period
Same period of the
previous year
10．House income 3,147.00 11,290.00
11．Fine income 15,000.00 3,050.00
12．Insurance claims
income
13．Other 73,606.50 121,055.10
Total 1,019,915.03 1,770,670.66
Non-business income happened in the current period decreased RMB 750,755.63 over the
previous period, with decreased ratio 42.40%, the reasons for the increase: the road compensation
income decreased.
（35）Non-Operation expense
Items
Report period
Same period of the
previous year
1.Total of non-current asset
Disposition loss 70,692.18 21,620,634.42
Incl: loss of fixed assets disposition 70,692.18 21,620,634.42
Loss of Intangible assets
disposition
2 ． Loss of Non-monetary
assetsexchange
3．Debt restructuring loss
4.External donor expenditure 100,000.00
Incl ：Donations for public welfare
spending
5．Special loss
6．Check loss
7．Fines and late fees expenses 81.28 100.00
8 ． Road property damage repair
expenses
43,415.82 570,928.24
9．Risk of payment charges 410.00
10．Other 362,774.41 438,146.00
Total 477,373.69 22,729,808.66
Non-business expense happened in the current period decrease RMB 22,252,434.97 over the
previous period, with decrease ratio 97.90%, the reasons for the decrease: costs for clearing up100
Jiujiang Bridge reduced.
（36）Income tax expenses
Items
Report period
Same period of the
previous year
Income tax in current term 36,091,369.92 35,115,412.19
Deferred income tax 10,373,867.56 2,964,606.30
Total 46,465,237.48 38,080,018.49
（37）Note Cash flow statement
1. Receive other cash
Items Report period
1. Interest income 1,526,537.90
2. Return of cash advance 2,777,657.93
3. Non-operating income 960,290.03
4. Receipt of security deposit 9,424,938.17
5. Recovery of advanced wage of dispatched personnel 1,703,665.19
6.Other 3,199,495.90
Total 19,592,585.12
2. Paid other
Items Report period
1. Refund of security deposit 74,312,673.81
2. Current accounts paid to related parties 23,021,675.00
3.Management Expenses 13,657,696.58
4. Payment of social insurance premium and public
accumulation fund for housing construction to be
contributed by employees
6,919,681.37
5. Payment of cash advance and deposit 6,742,164.06
6.Non-operating expenses 368,349.13
7.Other 5,324,977.40
Total 130,347,217.35
3. Supplement Information of Cash flow statement
Items
Report period
Same period of the
previous year
I.Adjusting net profit to net cash flow in operating activities101
Items
Report period
Same period of the
previous year
Net profit 254,191,232.15 289,825,387.01
Add: Asset devaluation reserve provided 4,386,536.35 -715,877.39
Fixed assets depreciation,Oil and gas depreciation, Produce
matter depreciation 78,119,555.53 77,443,689.50
Amortization of intangible assets 3,561,042.00 4,641,394.68
Amortization of long-term expenses to be amortized 759,053.65 775,162.86
The loss from the disposal of fixed assets, intangible assets
and other long-term assets 70,692.18 21,620,634.42
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 70,327,489.21 62,053,433.12
Investment loss -132,630,851.33 -158,544,079.41
decrease of deferred tax assets 572,270.05 -4,393,244.52
Increase of deferred tax Liabilities 9,801,597.51 7,357,850.82
Decrease of inventories 156,956.53 -11,539.59
Decrease of operating accounts receivable -208,619,293.13 -39,363,527.87
Increase of operating accounts payable 126,841,075.10 -11,232,743.02
Other
Net cash flow generated from operating activities 207,537,355.80 249,456,540.61
II.Investment and financing activities not involving cash
receipts and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III、Net increase of cash and cash equivalent
Balance of cash at the end of the period 622,360,763.72 563,766,336.15
Less: Balance of cash at the beginning of the period 350,765,725.76 190,665,302.76
Add: Balance of cash equivalent at the end of the period
Less: Balance of cash equivalent at the beginning of the period
Net increase of cash and cash equivalent 271,595,037.96 373,101,033.39
4.Relevant information of subsidiaries and other business units obtained or
disposed in current period102
Items Balance in year-end
Balance in
year-begin
I. Relevant information on obtaining subsidiaries and other
business units
1．Price on obtaining subsidiaries and other business units
2．Cash and cash equivalents paid for obtaining subsidiaries and
other business units
Less ：Cash and cash equivalents held by subsidiaries and
other business units
3．Net cash paid by obtaining subsidiaries and other business
units
4．Net assets from obtaining subsidiaries
Current assets
Non- Current assets
Current Liabilities
Non- Current Liabilities
II. Relevant information on disposing subsidiaries and other
business units
1．Price on disposing subsidiaries and other business units
2．Cash and cash equivalents received by disposing subsidiaries
and other business units
Less ：Cash and cash equivalents held by subsidiaries and
other business units 2,528.44
3．Net cash received by disposing subsidiaries and other business
units -2,528.44
4．Net assets by disposing subsidiaries -6,607,956.42
Current assets 500,612.69
Non- Current assets 30,449.88
Current Liabilities 4,145,289.08
Non-current liabilities 3,000,000.00
5. Composition of cash and cash equivalents:
Items Balance in year-end
Balance in
year-begin
I. Cash 622,360,763.72 350,765,725.76103
Items Balance in year-end
Balance in
year-begin
Incl：Stock cash 146,343.59 73,021.90
Bank deposits which can be used at any time 621,302,810.63 349,771,669.79
Other monetary funds which can be used at any time 379,418.52 388,843.09
Money kept in central bank which can be used
Money deposited in same industry
Money separated in same industry
II. cash equivalent
Incl ：Bond investment due in three months
III. Balance of cash equivalent at the end of the period 622,360,763.72 350,765,725.76
Incl：Parent company and subsidiaries in the group used the
limited ash and cash equivalents
532,190.98 532,190.98
VI. Notes to main items of financial statements of the parent company
1. Other receivables
(1). Other receivables at different levels are as follows:
（a）Age analyse
Balance in year-end Balance in year-begin
Age
Book Balance
Proporti
on
Bad debt
reserve
Proport
ion of
Bad
debt
reserve
Book Balance
Proporti
on
Bad debt
reserve
Proport
ion of
Bad
debt
reserve
Within 1 years 3,508,278.73 9.14% 5,509,446.14 8.27%
1－2 years 26,240,025.00 39.40%
2－3 years
3－4 years
4－5 years
Over 5 years 34,856,953.92 90.86% 34,856,953.92 100% 34,856,953.92 52.33% 34,856,953.92 100%
Total 38,365,232.65 100% 34,856,953.92 100% 66,606,425.06 100% 34,856,953.92 100%
（2）Items analyse
Type Balance in year-end Balance in year-begin104
Book Balance
Proport
ion
Bad debt
reserve
Proport
ion of
Bad
debt
reserve
Book Balance
Proport
ion
Bad debt
reserve
Proport
ion of
Bad
debt
reserve
1.Significant
account
receivable of
single amount
33,198,382.12 86.53% 33,198,382.12 95.24% 33,198,382.12 49.84% 33,198,382.12 95.24%
2.The
receivables that
the individual
amount is not
large but the
risk is great
３ ． Other
risks of credit
features：
5,166,850.53 13.47% 1,658,571.80 4.76% 33,408,042.94 50.16% 1,658,571.80 4.76%
Incl ：
Singleaccount
with lare
amount
Single
minor
accounts
5,166,850.53 13.47% 1,658,571.80 4.76% 33,408,042.94 50.16% 1,658,571.80 4.76%
Incl ：
Single account
without large
amount but with
greater risks
after combined
with credit
features
Total 38,365,232.65 100% 34,856,953.92 100% 66,606,425.06 100% 34,856,953.92 100%
2. The changes of other accounts receivable for bad debts are as follows:
Periods
Book balance at
year begining
Amount
accounted in
Amount reduced in
current period
Book balance at
period end105
current period Transferred
back
Resel
ling
January-June
2008(last period)
35,342,346.59 485,392.67 34,856,953.92
January-June
2009(current period)
34,856,953.92 34,856,953.92
3. The other receivables with significant single amount at period end or not significant but
accounting provision for impairment separately:
Other receivables Book balance
Ratio
accounted
Amount for
preparation for
bad debt
Reasons
Kunlun Securities Co.,
Ltd.
33,198,382.12 100% 33,198,382.12
The company
had entered the
stage of
bankruptcy
liquidation
4. There were no other receivable from the main shareholders of the Company holding nore
than 5% (including 5%) of the total shares of the Company.
5. The ending balance other receivables from related parties is RMB 0.00.
6. The big amount debts among other receivables at the end of period
Name of debtor
Relationship
with the
Company
Nature or
description
Amount of debt
Account
age
Proportion to
total of other
receivables
Kunlun Securities
Co., Ltd.
No
relationship
Security
Deposit
33,198,382.12
Over 5
years 86.53%
Heshan
Communication
Real Estate
Development
Company
No
relationship
Current
accounts
1,470,000.00
Over 5
years
3.83%
Guangdong
Finance Bureau
No
relationship
Prepayment 1,403,784.97
Within 1
year 3.66%106
The advancement
of equity
confirmation
expenses payable
by corresponding
shareholders
No
relationship
Advanceme
nt of
expenses
1,263,543.27
Within 1
year 3.29%
8. Other receivable at the period end decrease RMB 28,241,192.41 than at period beginning,with
an decrease ratio of 88.95%. the reasons for the decrease: Current accounts with Guangfo
Expressway Co., Ltd., a controlled subsidiary, were recovered.
（II）Long-term share equity investment
Balance in year-end Balance in year-begin
Items
Book balance Impairment
provision Book balance Impairment
provision
Long-term equity investment to
subsidiary 1,062,203,569.52 1,062,203,569.52
Equity method: Long-term equity
investment
Joint venture 1,002,868,101.82 959,559,648.68
Affiliated company 1,149,423,406.12 1,235,403,805.11
Subtotal 2,152,291,507.94 2,194,963,453.79
Cost method: Long-term equi
investment 7,020,000.00 6,793,200.00 7,020,000.00 6,793,200.00
Total 3,221,515,077.46 6,793,200.00 3,264,187,023.31 6,793,200.00
1. Investment to subsidiary.
Name of Subsidiary
Initial
investment
Balance in
year-begin
Increase
in this
period
Decrease
in this
period
Balance in
year-end
Guangfo Expressway Co.,
Ltd. 154,982,475.25 154,982,475.25 154,982,475.25
Guangdong Fokai Expressway 812,409,211.85 812,409,211.85 812,409,211.85
Guangdong Expressway
Technology Investment Co., Ltd. 94,811,882.42 94,811,882.42 94,811,882.42
Total 1,062,203,569.52 1,062,203,569.52 1,062,203,569.52
2.Infornation of Joint venture and Affiliated company107
Name Type
Registrated
place
Legal
Representative
Property
Registrated
capital
Held share
propoetion
Voting
proportion
I.Joint
venture
1.Guangd
ong
Guanghui
Expressw
ay Co.,
Ltd.
Limited
liability
Company
Guangzhou
,
Guangdong
Liu Gangliang
Expressway
Management
2,351,678,000.00 30% 30%
2.
Zhaoqing
Yuezhao
Highway
Co., Ltd.
Limited
liability
Company(Tai
wan, Hong
Kong and
Macao and in
cooperation）
Zhaoqiang,
Guangdong
Wang Jiachen
Expressway
Management
818,300,000.00 25% 25%
II.
Affiliated
company
1.Shenzhe
n Huiyan
Expressw
ay Co.,
Ltd.
Limited
liability
Company
Shenzhen,
Guangdong
Xu Xiaoyang
Expressway
Management
36,000,000.00 33.33% 33.33%
2.Guangd
ong
Maozhan
Expressw
ay Co.,
Ltd.
Limited
liability
Company
Guangzhou
,
Guangdong
Li Jinfeng
Expressway
Management
1,120,000,000.00 20% 20%
3. Jingzhu
Expressw
ay
Guanzhu
Limited
liability
Company(Tai
wan, Hong
Kong and
Macao and in
cooperation）
Guangzhou
,
Guangdong
Lu Yaxing
Expressway
Management
580,000,000.00 20% 20%
4.Guangd Limited Guangzhou Lu Yaxing Expressway 1,045,000,000.00 15% 15%108
Name Type
Registrated
place
Legal
Representative
Property
Registrated
capital
Held share
propoetion
Voting
proportion
ong
Jiangzhon
g
Expressw
ay Co.,
Ltd.
liability
Company
,
Guangdong
Management
5.Ganzho
u Kangda
Expressw
ay
Other Limited
liability
Company Ganzhou,
Jiangxi
Yao Diming
Expressway
Management
600,000,000.00 30% 30%
6.Ganzho
u
Gankang
Expressw
ay Co.,
Ltd.
Limited
liability
Company
（State-owned
holding）
Ganzhou ,Ji
angXI
Liu Zhequan
Expressway
Management
450,000,000.00 30% 30%
Name
Total Assets in
year-end
Total Liabilities
In year-end
The current
period total
revenues
Net profit in
current period
Relat
ed
party
relati
onshi
p
Organiz
ation
Code
I.Joint venture
1.Guangdong
Guanghui
Expressway Co.,
Ltd.
6,630,545,118.25 4,057,858,616.58 647,076,393.88 219,085,513.29
Joint
ventu
re
707685
410
2. Zhaoqing
Yuezhao Highway
Co., Ltd.
2,459,529,203.54 1,600,345,595.52 102,101,920.50 371,365.68
Joint
ventu
re
708157
00-3
II. Affiliated
company
1.Shenzhen Huiyan
Expressway Co.,
Ltd.
479,874,059.28 35,569,153.66 146,894,177.50 83,517,585.76
Affili
ated
comp
any
192203
792
2.Guangdong 2,852,978,732.06 2,234,399,388.95 183,521,740.00 6,310,090.08
Joint
ventu
707668
63-7109
Name
Total Assets in
year-end
Total Liabilities
In year-end
The current
period total
revenues
Net profit in
current period
Relat
ed
party
relati
onshi
p
Organiz
ation
Code
Maozhan
Expressway Co.,
Ltd.
re
3. Jingzhu
Expressway
Guanzhu
4,319,158,356.16 3,064,949,069.77 496,768,802.43 273,264,249.58
Affili
ated
comp
any
617401
445
4.Guangdong
Jiangzhong
Expressway Co.,
Ltd.
2,821,836,419.89 1,897,727,295.53 127,815,519.13 -649,181.27
Affili
ated
comp
any
742962
35-6
5.Ganzhou Kangda
Expressway
1,998,323,024.90 1,581,105,757.15 11,360,224.00 -59,765,894.72
Affili
ated
comp
any
772390
39-5
6.Ganzhou Gankang
Expressway Co.,
Ltd.
1,477,269,401.18 1,027,269,401.18
Affili
ated
comp
any
799467
19-6
3. . .Long-term share equity investment measured based on Equity method
Equity ncrease / decrease in
current period
Units being invested
Cost for initial
fund
Amount at year
beginning Total
Of which: cash
dividend
returned
Amount at period
end
I.Joint venture
1.Guangdong Guanghui
Expressway Co., Ltd.
705,503,400.00 728,227,522.82 43,578,427.70 22,147,226.29 771,805,950.52
2. Zhaoqing Yuezhao
Highway Co., Ltd.
183,690,616.22 231,332,125.86 -269,974.56 231,062,151.30
II. Affiliated company
1.Shenzhen Huiyan
Expressway Co., Ltd.
14,024,586.42 208,625,794.92 -42,871,644.31 70,000,000.00 165,754,150.61
2.Guangdong Maozhan
Expressway Co., Ltd.
224,000,000.00 122,453,850.61 1,262,018.02 123,715,868.63110
Equity ncrease / decrease in
current period
Units being invested
Cost for initial
fund
Amount at year
beginning Total
Of which: cash
dividend
returned
Amount at period
end
3. Jingzhu Expressway
Guanzhu
66,779,449.38 472,635,328.71 -60,055,646.19 110,842,253.25 412,579,682.52
4.Guangdong Jiangzhong
Expressway Co., Ltd.
156,750,000.00 134,213,745.86 4,402,622.81 138,616,368.67
5.Ganzhou Kangda
Expressway
216,251,100.00 192,475,085.01 -18,717,749.32 173,757,335.69
6.Ganzhou Gankang
Expressway Co., Ltd.
135,000,000.00 105,000,000.00 30,000,000.00 135,000,000.00
Total 1,701,999,152.02 2,194,963,453.79 -42,671,945.85 202,989,479.54 2,152,291,507.94
4.Long-term share equity investment measured based on cost method
Equity ncrease / decrease in
current period
Units being invested
Cost for initial
fund
Amount at year
beginning Total
Of which:
cash dividend
returned
Amount at
period end
Huaxia Securities Co., Ltd 5,400,000.00 5,400,000.00 5,400,000.00
Huazheng Asset Management
Co., Ltd.
1,620,000.00 1,620,000.00 1,620,000.00
Total 7,020,000.00 7,020,000.00 7,020,000.00
5. Impairment provisionof of long-term equity investment
Units being invested
Amount at year
beginning
Increase in
this period
Decrease in
this period
Amount at
period end
causse
Huazheng Asset
Management Co., Ltd.
1,393,200.00 1,393,200.00 V（7）4 Note 1
Huaxia Securities Co., Ltd 5,400,000.00 5,400,000.00 V（7）4 Note 2
Total 6,793,200.00 6,793,200.00
6. Long-term equity investment at the period end decreased RMB 42,671,945.85 than at
period beginning,with an decreased ratio of 1.31%. Decreased reason：In the current period, added new
investment RMB 45,500,000.00 to Guangdong Jiangzhong Expressway and RMB 30,000,000.00 to
Ganzhou Kangda Expressway Company Limited ,the net profit of the unit being invested decreased
and investment income decreased, and accordingly, the investment balance of long-term investment
decreased.111
（III）Business income and Business cost
Items Current term Same term previou years
Income Cost Income Cost
Main Business
Other Business 3,600.00 255,600.00
Other 3,600.00 255,600.00
The amount from current period to last year same period of Business income income is
decreased, the decreased number is RMB252,000.00, the decreased proportion is 98.59%.
（IV）Investment income
Items Current term Same term previou years
I.Investment income from financial assets
(1)Investment income obtained by
holding transactional financial assets
（ 2 ） Investment income obtained by
holding due investment
（ 3 ） Investment income obtained
holding financial assets for sale
（ 4 ） Investment income obtained by
disposing transactional financial assets
（ 5 ） Investment income obtained by
disposing transactional financial assets
（ 6 ） Investment income obtained by
disposing financial assets for sale
2 ． Income from long-term equity
investment
253,479,212.62 381,110,027.53
（ 1 ） Income from long-term equity
investment confirmed by cost calculation
(2 in total)
127,661,678.93 221,795,503.57
（ 2 ） Income from long-term equity
investment confirmed by equity
calculation（in 8 total）
125,817,533.69 159,314,523.96
（3）Investment income from disposing
long-term equity investment
3．Other112
Items Current term Same term previou years
Total 253,479,212.62 381,110,027.53
Of which：
Name Current term Same term previou years
Guangfo Expressway 86,417,103.78 136,816,722.49
Guangdong Fokai Expressway 41,244,575.15 84,978,781.08
Total 127,661,678.93 221,795,503.57
（2）Incomes from long-term equity investment confirmed by Equity method:
Name Current term Same term previou years
Guangdong Maozhan Expressway 1,262,018.02 3,637,865.11
Guangdong Guanghui Expressway 65,725,653.99 71,375,680.63
.Zhaoqing Yuezhao Highway Co., Ltd. -269,974.56 3,246,135.28
Shenzhen Huiyan Expressway 27,128,355.69 31,025,120.30
Jingzhu Expressway Guangzhu 50,786,607.06 56,595,440.16
Guangdong Jiangzhong Expressway -97,377.19 -806,567.33
Ganzhou Kangda Expressway -18,717,749.32 -5,759,150.19
Ganzhou Gankang Expressway
Total 125,817,533.69 159,314,523.96
1. No major restrictions on repatriation of investment income of the Company.
2. Investment income happened in current period decreased RMB 127,630,814.91 over the
previous period, with decreased ratio 33.49%, reasons for the reduction as follows: the net profit
realized in current year by units being invested decreased and the corresponding investment
income decreased, The distributable profit of the invested company for current year calculated on
cost basis decreased over the previous year.
VII. Relationships and Transactions of Related Parties.
(I) Standards for identifying the related parties.
1. The related parties that have relations of controlling.
１.Pearent Company （Unit:RMB’0000）113
Enter
prise
name
With
the
Corp
orate
Relati
ons
Type Registered address Legal
representative
The main
business.
Registrat
ed
capital
The
parent
compan
y of the
Compa
ny's
shareho
lding
ratio
The
parent
company
of the
Compan
y’s vote
ratio
The
ultim
ate
contr
olling
party
of the
Com
pany
Orga
nizati
on
Code
Guangdo
ng
communi
cation
Group
Co., Ltd
Pearen
t
Comp
any
State
owned
Co.,
Ltd.
No. 27, Baiyyun Road
Guangzhou.
Zhu Xiaoling
Equity
Management:
Organize the
reorganization of
assets, optimize
the allocations,
Raise funds
through the ways
of mortgage,
transfer of
property rights,
transformation of
joint-stock;
Project
investment,
operation and
management;
Infrastructure
construction of
transportation;
Projects of road
and rail and the
related industries;
Technology
development,
application and
consulting
services;
Transportation of
passengers and
freights by road
and rail; Shipping
industry; Related
businesses
1,980,000 40.76% 40.76%
Guang
dong
comm
unicati
on
Group
Co.,
Ltd
72383
8552114
Enter
prise
name
With
the
Corp
orate
Relati
ons
Type Registered address Legal
representative
The main
business.
Registrat
ed
capital
The
parent
compan
y of the
Compa
ny's
shareho
lding
ratio
The
parent
company
of the
Compan
y’s vote
ratio
The
ultim
ate
contr
olling
party
of the
Com
pany
Orga
nizati
on
Code
abroad.
2.Subsidiary
（Unit:RMB’0000）
Name
Type of
Subsidiar
y
Type of
Enterprise
Registered
address
Legal
represent
ative
The main business
Regist
rated
capital
Shareh
olding
ratio
Vote
ratio
Orga
nizati
on
Code
Guangfo
Expressway
Subsidi
ary
Limited
liability
Company
(Taiwan,
Hong
Kong and
Macao
and in
cooperati
on）
Shabei
West,Gu
angzhou
Zhou
Yuming
Construction, tolling,
maintenance and management
of Guangfo Expressway,
automobile fueling, Form
Hengsha Guangzhou to Foshan
xiebian，A total length of 15.7
km, salvage, maintenance and
cleaning up.
20,000 75% 75%
61740
143-7
Guangdong
Fokai
Expressway
Subsidi
ary
Limited
liability
Company
No.83,
Baiyun
Road,
Yuexiu
District ,Gu
angzhou
Li
Xiyuan
Investment in technical
industries and provision of
relevant consulting services,
research and development of
lighting technology, energy
saving and storage
technology, photovoltaic
technology of solar energy
and production and sales of
110,800 75% 75%
23112
431-8115
Name
Type of
Subsidiar
y
Type of
Enterprise
Registered
address
Legal
represent
ative
The main business
Regist
rated
capital
Shareh
olding
ratio
Vote
ratio
Orga
nizati
on
Code
relevant products, design,
production , release and
agency of all kinds of
domestic and foreign
advertisements, construction
and maintenance
management of highway
projects and domestic trade.
Guangdong
Expressway
Technology
Investment
Co., Ltd.
Subsidi
ary
Limited
liability
Company
4/F,Guangd
ong
Expresswa
y Building,
No.85,
Baiyun
Road,
Yuexiu
District,
Guangzhou
Zhang Yi
Investment in technical
industries and provision of
relevant consulting services,
research and development of
lighting technology
10,000 95% 95%
73145
698-4
The company‘s subsidiary’s registered capital alter situation
Name
Amount at year
beginning
Increase in
this period
Decrease in
this period
Amount at
period end
Guangzhou Putian Zhongzhi 500 500
3. Main information of joint-owned company and II. Affiliated company
details in the Notes 5(7)1
4.Other related parties.
Name Relation with the Company Organization Code
Guangdong Expressway Co., Ltd.
Fully owned subsidiary of the
parent company
190330413
Guangdong Highway Construction Co.,
Ltd.
Fully owned subsidiary of the
parent company
190335177
Guangdong Jingtong Enginneering
Construction Group Co., Ltd.
Fully owned subsidiary of the
parent company
23111091X116
Name Relation with the Company Organization Code
Guangdong Nanyue Logistics Co.,
Ltd.
Contral interest subsidiary of
the partent company
719285123
Guangdong Changda highway Co., Ltd.
contral interest subsidiary of
the partent company
190334510
Guangdong Communication Industry
Investment Company
Fully owned subsidiary of the
parent company
190366459
Xinyue Communication Investment
Co., Ltd.
contral interest subsidiary of
the partent company
Overseas Enterprises
Xinyue Communication Investment
Co., Ltd.
contral interest subsidiary of
the partent company
231129768
Guangdong Hualu communication
Technology Co., Ltd.
contral interest subsidiary of
the partent company
736195293
Guangdong Highway Survey and
Design Institute
contral interest subsidiary of
the partent company
455857836
Guangdong Gaoda Property
Development Co., Ltd.
contral interest subsidiary of
the partent company
707685592
Guangdong East Thinking Management
Technology Development Co., Ltd.
contral interest subsidiary of
the partent company
724762107
Guangzhou Xinruan Computer
Technology Co., Ltd.
contral interest subsidiary of
the partent company
725017352
Guangdong Communication
Development Company
contral interest subsidiary of
the partent company
190324937
Guangdong Tongyi Expressway
Services Area Co., Ltd.
contral interest subsidiary of
the partent company
724795996
Guangdong Xiangfei Highway
Engineering Management Co., Ltd
Fully owned subsidiary of the
parent company
23110364-6
Guangzhou Xinyue Asphale Co., Ltd.
contral interest subsidiary of
the partent company
714289942
Guangdong Guansheng Civil
Engineering Technology Co., Ltd.
contral interest subsidiary of
the partent company
766557961
Guangdong Lulutong Co., Ltd.
contral interest subsidiary of
the partent company
231125505
Guangzhou Putian Zhizhi Technoloty
Industry Co., Ltd
contral interest subsidiary of
the partent company
71243167-7
Zhaoqiang Yuezhao Highway Co., Ltd The company's joint
venture
70815700-3117
Name Relation with the Company Organization Code
Shenzhen Huiyan Expressway Co., Ltd
The company’s Affiliated
company
192203792
Guangdong Zhanjiang Bay Bridge
Co.,Ltd.
contral interest subsidiary of
the partent company
74083612-9
(II) Related transactions.
1. The transactions among the subsidiaries that have controlling relations and have
been incorporated into the consolidated accounting statements of the Company and
the transactions among the parent companies and subsidiaries have been offset.
2 Related transactions on purchasing goods and receiving services
Number happened in
current period
Number happened in last
Related period
parties
Types of
related
transaction
s
Content of
related
transaction
Pricing
principle of
related
transactions
Amount
（RMB）
Proportion
（％）
Amount
（RMB）
Proportion
（％）
1. Operating
costs
Guangdong
Guanghui
Expressway
Receiving
labor
Project
fund
Market price 612,500.00 0.34
Guangdong
Expressway
Receiving
labor
Design fee Market price 54,309.50 0.03
Xinyue
Communicati
on
Investement
Co., Ltd.
Receiving
labor
Project
fund
Market price 203,969.00 0.11
Guangdong
Guanyue Luqiao
Co., Ltd.
Receiving
labor
Project
fund
Market price 5,058,153.40 3.02 11,517,558.00 6.34
Guangdong
Changda
Highway
Engineering
Co., Ltd.
Receiving
labor
Project
fund
Market price 21,701,488.00 12.94 9,619,525.40 5.30
Guangdong
Jingtong
Highway
Engineering
Co., Ltd.
Receiving
labor
Project
fund
Market price 1,385,698.00 0.83 13,776,011.00 7.59
Guangdong
Highway
Survey and
Design
Institute
Receiving
labor
design fee Market price 645,750.00 0.39 1,792,758.00 0.99
Guangdong
Xiangfei
Receiving
labor
Supervis
ion fees Market price 22,569.82 0.01 199,905.00 0.11118
Number happened in
current period
Number happened in last
Related period
parties
Types of
related
transaction
s
Content of
related
transaction
Pricing
principle of
related
transactions
Amount
（RMB）
Proportion
（％）
Amount
（RMB）
Proportion
（％）
Highway
Engineering
Management
Co., Ltd
Subtotal of
Operating
costs
28,813,659.22 17.19 37,776,535.90 20.81
2.Management
expenses
Guangdong
Gaoda
Property
Development
Co., Ltd.
Receiving
labor
rental fee and
management
fee
Market price 528,074.04 1.10 555,416.88 1.21
Guangdong
Highway
Survey and
Design
Institute
Receiving
labor
design fee Market price 385,000.00 0.84
Subtotal of
Management
expenses
528,074.04 1.10 940,416.88 2.05
3.Non-
Operating
expwnses
Guangdong
Changda
highway Co.,
Ltd.
Receiving
labor
Project
fund
Market price 20,000,000.00 87.99
Subtotal of Non-
Operating
expwnses
20,000,000.00 87.99
4. Construction
on process
Guangdong
Expressway Co.,
Ltd.
Receiving
labor
Commissio
ned the
Construct
ion of
managemen
t
feesProjec
t fund
Market price 12,259,411.91 3.54
Guangdong
Guanyue Luqiao
Co., Ltd.
Receiving
labor
Project
fund
Market price 2,581,113.00 0.74
Guangdong
Changda Receiving Project Market price 77,849,162.00 22.43 29,325,128.60 31.53119
Number happened in
current period
Number happened in last
Related period
parties
Types of
related
transaction
s
Content of
related
transaction
Pricing
principle of
related
transactions
Amount
（RMB）
Proportion
（％）
Amount
（RMB）
Proportion
（％）
highway Co.,
Ltd.
labor fund
Guangdong
Hualu
communicatio
n Technology
Co., Ltd.
Receiving
labor
Project
fund
Market price 480,252.00 0.14
Guangdong
Highway
Survey and
Design
Institute
Receiving
labor
design fee Market price 1,797,712.00 1.93
Subtotal of
Construction on
process
93,169,938.91 26.88 31,122,840.60 33.46
5.Fixed Assets
Guangdong
Changda
highway Co.,
Ltd.
Receiving
labor
The
acquisiti
on of
fixed
assets
Market price 6,893,266.00 6.52
Subtotal of
Fixed assets
6,893,266.00 6.52
Total 123,261,672.17 96,733,059.38
3. Related transactions on purchasing goods and receiving services
Number happened
in current period
Number happened in
last period
Related
parties
Types of
related
transactions
Content of
related
transaction
Pricing
principle of
related
transactions
Amount
（RMB）
Amount
（RMB）
Proportion
（％）
Transactions
proportion
（％）
1. Operating
income
Xinyue
Communication
Investment Co.,
Ltd.
Receiving
labor
Project
fund
Market price 817,958.69 0.17
Total 817,958.69
4.Other Relationships and Transactions120
(1) On August 23, 2001,the Company signed the Agreement on Transferring the Investment
Equity of Guangdong Maozhan Expressway Co., Ltd with Guangdong Transportation Industry
Investment Co., Ltd, transferring all the actual investment of Guangdong Maozhao Expressway
Co., Ltd held by the Company, the price of transfer RMB 228.50 million, the date of transfer
August 1, 2001. Guangdong Transportation Industry Investment Co., Ltd paid the transfer fund
RMB 114.25 million in advance according to the Agreement. The Agreement comes into force
upon the agreement of Decision-making Institutions and the Management Department of the both
parties and after being approved by Guangdong Foreign Trade & Economic Cooperation
Department.
In March 18, 2002, the Company signed the Supplementary Agreement of Agreement on
Transferring the Investment Equity of Guangdong Maozhan Expressway Co., Ltd, reached the
following agreement: (1) The company paid the Reduction Pre-payment Fund RMB 79.975
million to Guangdong Transportation Industry Investment Co., Ltd. After the reduction, the actual
Pre-payment fund received is RMB 34.275 million ; (2) If the Agreement of Transfer is not
approved by the relevant Government Department, the Company will pay the actual fund back to
Guangdong Transportation Industry Investment Co., Ltd, and according the Income Reduction of
this time, pay the fund, paying the interest of the actual received fund according to the bank
interest in the same period. (3) If the Agreement of Transfer is eventually approved by the relevant
Government Department, then Guangdong Transportation Industry Investment Co., Ltd need to
pay the transfer fund RMB 194.225 million to the Company 15 day after the Transfer of
Agreement being in effect.
On December 27, 2002, the Company signed the Supplementary Agreement(II)of Agreement
on Transferring the Investment Equity of Guangdong Maozhan Expressway Co., Ltd, reached the
following agreement: the Company pays Reduction Pre-payment fund RMB 20.00 million to
Guangdong Transportation Industry Investment Co.,Ltd.
After returning the Pre-received fund according to the agreements in the Supplementary
Agreement, the Company received the original value of Pre-payment fund RMB 14,275,000.00 .
On April 21, 2008, according to : the total budget approved as RMB 4,002,409,114.00, total
construction period of the project is (since the date of opening) four years.
2. on September 18, 1998, the company signed the Contract on Cooperative Construction &
Operation of JingZhu Expressway (Tangtang-Taihe) with Guangdong Road & Bridge
Construction & Development Company, Dajian Industrial Co., Ltd, Guangdong Communications
Department and the Office of Introduction of Foreign Capital, the four parties, and cooperated to
establish Jingzhu(Tangtang –Taihe) Expressway Co., Ltd, and cooperated to construct, operate,
manage the Jingzhu expressway and its supporting facilities. The total investment of the first
phase of the project is about 2600.00 million Yuan, the registered capital of the first phase of the
cooperation company is 910 million Yuan. The capital proportion of the Company is 25%, the
investment amount 227.50 million Yuan. This contract is awaiting approval from the relevant
Government Department. As June 30, 2009, the fund of the Company has not invested yet.
3. In May 2000, the Company signed the Contract on Construction & operation of the
Expressway of Ji ngzhu Major Route Xiaotang-Gantang, and cooperated to establish
Guangdong Jingzhu North Expressway Co., Ltd to construct and operate the expressway of
Jingzhu Major Route Xiaotang-Gantang. The total investment of the project is 5657million Yuan,
the registered capital 566.70 million Yuan. The capital of the project( including the registered129
capital)is 35% of the general investment, namely 1,979.95 million Yuan, the investment
proportion of the Campany 10%. The capital other project shall be paid according to the
investment proportion. The investment amount of the project of the company is 1,979.95 million
Yuan. Guangdong Expressway Co., Ltd is responsible for the construction of the project. This
contract is awaiting approval from the relevant Government. As June 30, 2009, Department. the
fund of the Company has not invested yet.
4. The controlling subsidiary of the company Guangdong Fokai Expressway Company started
the expansion project of Fokai Expressway Xiebian to Sanbao, and entrusted Guangdong
Provincial Expressway Company to manage the project.
(II) The Renting Contract signed that is being implemented or is ready to be
implemented and its financial influences.
The controlling subsidiary of the company Guangdong Expressway Technology Investment Co.,
Ltd. signed the and related
supplementary agreements with Guangdong Guanghui Expressway Co., Ltd., Guangdong
Expressway Technology Investment Co., Ltd. leased advertisement position from Guangdong
Guanghui Expressway Co., Ltd.
the total rental fee reduced to 25.20 million Yuan, the leasing period from July 1, 2006 to June 30,
2016.
X. Events Occurring After the Balance Sheet Date.
(I)Board of Directors after the balance sheet date
The 14th (provisional) meeting of the fifth board of directors held on August 18th,2009
examined and adopted the Proposal of the Company’s Semi annual report and the summary of the
Semi annual report.
(2). Significant external investment after balance sheet day
The Company signed Share Subscription Agreement with Everbright Bank on July 20, 2009.
The Company will subscribe for 240,000,000 ordinary shares to be issued by this company to the
Company at the price of RMB 2.2 per share. The par value of each share is RMB 1.00 and the
total amount of investment is RMB 528,000,000, which accounts for 0.72% of the total share
capital of Everbright Bank after share capital increase. The Company will contribute capital in
cash with self-owned funds. This external investment does not constitute a related transaction.
On July 20, 2009, The 13th meeting of the fifth board of directors of the Company examined and
adopted the Proposal for Purchasing Equity of China Everbright Bank. On August 6, 2009, This
proposal is to be submitted to the first provisional shareholders' general meeting of the Company
in 2009 for examination. This transaction has been examined and adopted by the board of
directors and shareholders' general meeting of Everbright Bank and is subject to the approval by
relevant domestic regulatory authority.
(3)Issuing Company Coperate bond after balance sheet date130
The fifth provisional board meeting of the Company held on August 11, 2009 examined and
adoted the Proposal Concerning the issuing scheme and the authorization of the Corporate Bonds.
The fifth provisional board meeting alterated the annoument which made at the 10th (provisional)
meeting of the fifth board of directors. The Company ensures to issue corporate bonds with
principal of not more than RMB 1.3 billion and a term of not more than 5 years. Alteration
details refers to Note“XI、(3)”.
3. The third provisional shareholders' general meeting of the Company in 2008 held on
December 12, 2008 examined and adopted the Proposal Concerning the Company's Issue of
RMB Corporate Bonds.
The Company planned to issue corporate bonds with principal of not more than RMB 1.3
billion and a term of not more than 10 years. The shareholders' general meeting authorized the
board of directors to handle the matters related to the issue of RMB corporate bonds. The fifth
board of directors of the Company approved the Proposal Concerning Matters Related to
Corporate Bond Issue Plan on March 30, 2009. The total amount of the principal of corporate
bonds issued shall not exceed RMB 1.3 billion and the accumulative balance of bonds after issue
shall not exceed 40% of the net assets for the latest period. The amount of bonds issued in the
first period is RMB 650 million.
The application for issuing corporate bonds with amount of not more than RMB 1.3 billion
was conditionally approved by Issue Examination Committee of China Securities Regulatory
Commission on April 15, 2009.
XI. Other events
1．Fokai Expressway has operated Jiujiang Bridge’s management and maintain, 2007, June
15 early in the morning, The No. 035 Sand ship owned by Yang Xiong and operated by Foshan
Nanhai Yuhang Ship Co., Ltd. collided Jiujiang Bridge on 325 State Road which owned by the
controlling subsidiary Fokai Company. due to the deviation channel of the sand delivering ship in
Jiujiang channel and straightly hit Jiujiang Bridge, leading the 200m height bridge’s partial
collapsed that block the transportation on the bridge. Up to the deadline for submitting reports,
Jiujiang Bridge was still closed to transportation. On June 10, 2009, Jiujiang Bridge
opened to traffic has been restored.
On June 19,2007， The Ministry of Communications, the State Production Safety
Supervision and Administration Commission issued the JiaoAnWeiming File [2007] No. 8
"Notification on the Guangdong"6.15 "Jiujiang Bridge Collision Accident", initially determined
the causes of the accident are: the incident ship suddenly met heavy fog on the way from Foshan
Gaoming to Sunde, the captain neglected looking out, did not take proper measures and deviated
from the main channel, touched the 325 National Road Jiujiang Bridge the non-navigation bridge
pier and caused the collapsion of part of the Jiujiang bridge. The accident was an unilateral
responsibility of the ship.
On July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime131
Court.On August 22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court,
asking Foshan South Sea Shipping Company Limited and Yang Xiong to undertake the
conpensation 25,587,684 yuan for the loss caused by collapsion of Jiujiang Bridge. On August
28, 2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa
No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case was
suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial
Government had not made the final report of Jiujiang Bridge accident. The Court, on November
5, 2007, decided to suspend the proceeding. In September 2008, Jiujiang Bridge accident
investigation report was officially reported and resumed the proceedings. On December 5, 2008,
Guangzhou Marine Court opened a court trial to procceeded the case. Currently, Guangzhou
Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide, therefore, on
January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. At present, no
further notice related to this case has been received from the court and its hearing is still in
suspense.
By the date of the statement, the insurance compensation program was under negotiations
with insurance companies.
2. Our company held provisional shareholders meeting on December 20, 2006,Reviewed
and approved《The bill of Fo-kai company for setting up the toll right and usufruct to
support the financing proposal of beneficiary certificate’s specific asset management
plan》. Agreed in principle to set up “Fo-kai highway usufruct & beneficiary certificate
specific plan” for low cost financing, Guangdong fo-kai highway Co., Ltd. acted as
original equity owner and Guangfa securities Co., Ltd. acted as plan manager. Planned
financing scale is RMB 1 billion, the period are from 1 year to 5 years. The capital raised
this time is used for exchanging the original bank loan of Guangdong fo-kai highway Co.,
Ltd. The board of directors and management of Guangdong fo-kai highway Co., Ltd.
should decide the relevant matters of this plan according to market situation and
company’s needs. It includes interest rate of this certificate issuing and all contracts to be
discussed & signed required by the implementation of this specific asset management
plan etc. Guangdong fo-kai highway Co.,Ltd. On December 14, 2006, Guangfa securities
company have signed《the arrangement agreement of specific asset management
plan》,the agreed chargeable specific plan arrangement fee in this agreement is 0.768
％ of financing amount. It will be RMB 7.68 million based on the calculation of financing
amount RMB 1 billion. Guangdong fo-kai highway Co.,Ltd. had prepaid 40％ of amount
according to the agreement.On May 18, 2009, Guangdong fo-kai highway Co.,Ltd. and
Guangfa securities company have signed 《The agreement of terminating < the
arrangement agreement of specific asset management plan > and 》. The agreement requires Guangfa securities
company to return the management fee for RMB 3.072 million prepaid by Guangdong
fo-kai highway Co.,Ltd. This amount had been returned by July of 2009.
3. The third provisional shareholders' general meeting of the Company in 2008 held on
December 12, 2008 examined and adopted the Proposal Concerning the Company's Issue of
RMB Corporate Bonds. The Company planned to issue corporate bonds with principal of not
more than RMB 1.3 billion and a term of not more than 10 years. The shareholders' general
meeting authorized the board of directors to handle the matters related to the issue of RMB
corporate bonds. The fifth board of directors of the Company approved the Proposal Concerning
Matters Related to Corporate Bond Issue Plan on March 30, 2009. The total amount of the
principal of corporate bonds issued shall not exceed RMB 1.3 billion and the accumulative
balance of bonds after issue shall not exceed 40% of the net assets for the latest period. The
amount of bonds issued in the first period is RMB 650 million.
The application for issuing corporate bonds with amount of not more than RMB 1.3 billion
was conditionally approved by Issue Examination Committee of China Securities Regulatory
Commission on April 15, 2009.
The fifth provisional board meeting of the Company held on August 11, 2009 examined and
adoted the Proposal Concerning the issuing scheme and the authorization of the Corporate
Bonds.Details refers to Note“X、(3)”.
4. On February 23, 2009, Guangdong Express Technology Investment Co., Ltd. and
Guangzhou Branch of China Minsheng Bank Co., Ltd., as joint applicants, applied to Guangzhou
Intermediate People's Court for bankruptcy liquidation of Guangzhou Putian Zhongzhi
Technology Industrial Co., Ltd. for the reason of failure to settle due debts. On June 3, 2009, the
court decided to accept the applicants' bankruptcy liquidation application and designated
Guangdong Guangda Law Office as
XII. .Supplement Information
(1) Items of Non-recurring Gains & Losses
Items Amount
（ 1 ） Gain/loss form disposal of non-current assets and Provision for
impairment of assets including the preparation of the write-off part .
7,048,378.25
(2)Tax refund, deduction and exemption that is
examined and approved by authority exceeding or
has no official approval document.
(3)Governmental Subsidy accounted as current gain/loss, except for those
subsidies at with amount or quantity fixed by the national government and133
Items Amount
closely related to the Company’s business operation.
(4)Capital occupation fee collected from non-financial organizations and
accounted as current gain/loss.
(5)Gain/loss generated when the consolidation costs is less then the
recognizable fair value attributable to the Company.
(6)Non-monetary asset exchange gain/loss.
（7）Gain/loss investment of Commission
(8)Asset impairment provisions for force major such as natural disasters -4,386,536.35
(9) Gain/loss from debt reorganization
(10) Enterprise reorganization expenses, such as payment to stuff placement
and consolidation expenses
(11) Gain/loss from trades obviously departed from fair value
(12) Net gain/loss of current term from consolidation of subsidiaries under
common control from beginning of term to the consolidation date
(13) Gain/loss from debt forcasting without connection to the main business
operation
（14）In addition to normal business with the company effective hedging
related business, holders of tradable financial assets, transactions and financial
liabilities arising from changes in fair value gains and losses, as well as the
disposal of trading of financial assets, trading financial liabilities and
available-for-sale financial assets gains return on investment;
（15）Single impairment test for impairment of receivables transferred back to
preparation
（16）Commissioned external loans by the Gain/loss
（17）The use of fair value measurement model of follow-up to the fair value
of real estate investment gains and losses arising from changes
（ 18 ） According to tax, accounting and other laws, regulations, the
requirements of the current Gain/loss for a one-time adjustment of the impact
of the current Gain/loss;
（19）Entrusted with the operating of the trust to obtain fee income
（20）Net amount of non-operating income and expense except the aforesaid
items
613,233.52
（21）Other non-recurring Gains/loss items
（22）Amount of influence of minority interests -233,145.30134
Items Amount
（23）Amount of influence of income tax -109,941.96
Total 2,931,988.16
（2）Return on net assets and earnings per share
Return on net assets（%） Earnings per share（RMB）
Profit of the report period
Fully diluted
Weighted
average
Fully diluted
Weighted
average
Net profit attributable to the
owners of Company.
6.15% 6.11% 0.17 0.17
Net profit attributable to the
owners of Company after
deducting of non-recurring
gain/loss.
6.06% 6.03% 0.17 0.17
1.Calculation process
The following data is calculated by these formula:
（1）Fully diluted return on equity
Fully diluted return on equity=P÷E
Of which:P refers to Net profit attributable to common shareholder of the Company or net profit
after deducting non-recurring gains and losses attributable to common shareholder of the Cmpany ;
E refers to net assets at the period-end attributable to common shareholders of the company.
When the Company prepared and disclosed the consolidated statement, “ Net profit attributable to
common shareholder of the Company” excluded minority interest, : net profit after deducting
non-recurring gains and losses attributable to common shareholder of the Company” would be
calculated based on consolidated net profit after deducting minority interests; deducting
non-recurring gain and loss of parent company(ther company should consider influence of income
tax) and non-recurring gain and loss of each subsidiary (the company should consider influence of
income tax) and non-recurring gain and loss of each subsidiary (the company shluld consider135
influence of income tax); : net assets at the period-end attributable to common shareholders of the
company” excluded minority interests.
（2）Weighted average return on equity
Weighted average return on equity=P/（E0＋NP÷2＋Ei×Mi÷M0－
Ej×Mj÷M0±Ek×Mk÷M0）
Of which：P REFERS TO Net profit attributable to common shareholder of the Company or
netprofit after deducting non-recurring gains and losses attributable to common
shareholder of the Company; NP refers to net profit attributable to common shareholders
of the Company; EO refers to net assets at the period-begin attributable to common
shareholders of the company; Ei refers to net assets increased due to issuance of new
share ordebts for equity swap or attributable to common shareholders of the Company; Ej
refers to net assets decreased due to repurchased or dividends in cash or attributable to
common shareholders of the Company; Mo refers to the number of months during the
report period; Mi refers to the number of months from the next month when net assets
decreased to the end of the reort period; Ek refers to change of increase/decrease of net
assets due to other transaction events; Mk refers to the number of months from the next
month when other net assets changed the end of the report period.
（3）Earnings per share-basis
EPS=P÷S
S=S0＋S1＋Si×Mi÷M0-Sj×Mj÷M0-Sk
Of which：P refers to net profit attributable to shareholders holding ordinary shares or net
profitattributable to shareholders holding ordinary shares after deducting non-recurring136
gains and lossesl S weighted average number of ordinary shares issued out; S0 refers to
total number of shares at the period-begin; S1 refers to the number of shares increased
due to transferring capital reserve into share capital or dividend distribution of shares
during the report period; Si referrs to the number of shares incueased due to issuance of
new shares or debt for equity swap during the report period; Sj refers to the number of
shares decreased due to stock repurchase during the report period; Sk refers to the
number of split-share during the report period; M0 refers to the number of months during
the report period; Mi refers to the number of months from the next monthe to the end of
the report period for increase of sharesl Mj refers to the number of months from the next
month to the end of the report period for decrease of shares.
（4）Earnings per share-diluted
EPS-diluted=[P+（Potential diluted interests of ordinary shares recognized as expense－
Transfer fee）×（1-income tax rate）]/（S0＋S1＋Si×Mi÷M0-Sj×Mj÷M0-Sk+weighted average
amount of ordinary shares increased due to warrant , share options, convertible bood.
Of whichA:P refers to net profit attributable to shareholders holding ordinary shares or net profit
attributable to shareholders holding ordinary shares after deducting non-recurring gains and
losses; The Company shall consider all influence on potential diluted interests of ordinary shares
when the company calculated diluted earnings per share, till to minimum diluted EPS .
2.The ordinary shares which have no dilution in the current period but may have dilution in the
future accounting period.
No such cases exist in the company in the current period.
3. From the balance sheet date to the report date of the approval of financial report, major changes
in ordinary share and potential ordinary share number issued by the company
No such cases exist in the company in the current period.
XIII. The approval of financial reports137
The report of the financial statements was approved by all directors of the board
of directors of the Company on August 18,2009.
The Board of Directors of Guangdong Provincial Expressway Development Co., Ltd.
August 18,2009138139
VIII. Documents Available for Inspection
1. The interim report text with signatures of the president.
2.The financial report text with the signatures and stamps of the unit principal ,the
principal in charge of accounting , and the principal of the accounting Department .
3. Text of all the documents that disclosed on the newspapers and websites designated
in the Company Rule within the report period.
4. Other relevant materials.
The Board of Directors of Guangdong Provincial Development Co., Ltd.
August 12,2009
