广东省高速公路发展股份有限公司
Guangdong Provincial Expressway Development Co.Ltd.
Semi-Annual Report 2010
（Full Text）
Stock Abbreviation: Guangdong Expressway A, Guangdong Expressway B
Stock code: 000429, 200429
Chairman of board of directors：Zhou Yuming
August 2010Important 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.Basic Information of the Company
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) Designated newspapers for information disclosure: Securities Times,China Secuties,Shanghai
Secuties Daily and Hongkong Commercial Daily.
Web address for Publication of semi-annual Report 2010 (appointed by the China Securities
Regulatory Commission): www.cninfo.com.cn
Address for Reference of the Semi-annual report 2010: Securities affair Dept of the Company
(VI) Stock exchange for listing: Shenzhen Stock Exchange
Stock abbreviation:Guangdong Expressway A, Guangdong ExpresswayBBasic Information of the Company
2
Stock code：000429、200429
(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,GuangzhouHighlights of financial data and indicators
3
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 9,960,028,276.12 8,915,176,490.28 11.72%
Owners’ equity attributable to shareholders
of the listed company
3,710,177,448.48 3,598,233,573.62 3.11%
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)
2.95 2.86 3.15%
Report period
(January-June)
Same period last
year
Increase /Decrease （％）
Total operating income 501,059,949.79 471,816,749.75 6.20%
Operating profit 301,783,513.71 300,241,306.83 0.51%
Total profit 313,151,772.82 300,783,848.17 4.11%
Net profit attributable to shareholders of the
listed company
237,803,790.41 215,914,671.27 10.14%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
215,914,671.27 212,985,533.11 8.63%
Basic earnings per share(RMB/share) 0.19 0.17 11.76%
Diluted earnings per share(RMB/share) 0.19 0.17 11.76%
Return on equity（%） 6.41% 6.00% 0.41%
Net cash flow arising from operating
activities
328,942,405.14 207,537,355.80 58.50%
Net cash flow per share arising from
operating activities (RMB/share)
0.26 0.17 52.94%
(II) Non-recurring gain or loss items and related amount
Unit ：RMB
Items of non-recurring gains and losses Amount
Notes (if
applicable
Gain/loss form disposal of non-current assets 10,114,620.23
Net amount of non-operating income and expense 1,253,638.88Highlights of financial data and indicators
4
except the aforesaid items
Amount of influence of income tax. -2,812,782.34
Amount of influence of Minor shareholders’
equity
-2,113,268.68
Total 6,442,208.09 -Change of Share Capital and Shareholding of Principal Shareholders
5
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
allotment
Bonus
shares
Capitalizati
on of
common
reserve
fund
Other Subtotal Quantity Proportion
I. Share with
conditional
subscription
444,091,390 35.33% -1,843,920 -1,843,920 442,247,470 35.18%
1.State-owned
shares
409,246,518 32.55% 456,200 456,200 409,702,718 32.59%
2.Staee-owned
legal person
shares
23,468,541 1.87% -435,314 -435,314 23,033,227 1.83%
3.Other domestic
shares
11,173,716 0.89% -1,861,048 -1,861,048 9,312,668 0.74%
Of which：
Domestic
Non-state –owned
legal person
shares
9,390,193 0.75% -1,488,990 -1,488,990 7,901,203 0.63%
Domestic natural
person shares
1,783,523 0.14% -372,058 -372,058 1,411,465 0.11%
4.Share held by
foreign investors
Of which：
Foreign legal
person shares
Foreign natural
person shares
5 .Executive
shares
202,615 0.02% -3,758 -3,758 198,857 0.02%
II. Shares with
unconditional
subscription
813,026,358 64.67% 1,843,920 1,843,920 814,870,278 64.82%Change of Share Capital and Shareholding of Principal Shareholders
6
1.Common shares
in RMB
464,276,358 36.93% 1,843,920 1,843,920 466,120,278 37.08%
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%
1. In the report period, 39 shareholders repaid 456,200 shares to Guangdong Communication
Group Co., Ltd. as consideration. 435,314 state legal person shares and 20,886 domestic natural
person shares were converted into state shares, were still the shares with limited sale conditions.
2.In the report period, 835,754 domestic legal person shares subject to sale restriction and
1,004,408 domestic natural person shares subject to sale restriction were listed for trading and
converted into shares not subject to sale restriction on March 16, 2010. After judicial confirmation,
653,236 domestic legal person shares were converted into domestic natural person shares, which
were still subject to sale restriction.
3．In the report period, Mr. Xiao Laijiu, director and deputy general manager of the Company sold
3,758 "senior executive shares".
2.There are 106,641 shareholders as ended June 30, 2010, of which 69,039 are A share
shareholders, 37,602 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：Shares
Total of shareholders 106,641
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
legal person
40.81% 513,082,460 409,702,718 103,379,742
Guangdong Expressway
Co., Ltd
State-owned
legal person
1.56% 19,582,228 19,582,228
Xinyue Co., Ltd.
Overseas legal
person
1.05% 13,201,086
Guangdong Yuecai Trust State-owned 0.97% 12,174,345Change of Share Capital and Shareholding of Principal Shareholders
7
Investment CO., Ltd legal person
Chen Haoming
Domestic
natural person
0.28% 3,472,900
Lu Weiqiang
Domestic
natural person
0.23% 2,888,848
LSV EMERGING
MARKETS EQUITY
FUND,L.P.
Overseas legal
person
0.21% 2,686,000
KGI ASIA LIMITED
Overseas legal
person
0.21% 2,623,017
Chen Shukai
Overseas
Natural person
0.21% 2,611,400
Liu Wanping
Domestic
natural person
0.20% 2,569,407
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
Chen Haoming 3,472,900
Foreign shares placed in domestic
exchange
Lu Weiqiang 2,888,848
Foreign shares placed in domestic
exchange
LSV EMERGING MARKETS EQUITY
FUND,L.P.
2,686,000
Foreign shares placed in domestic
exchange
KGI ASIA LIMITED 2,623,017
Foreign shares placed in domestic
exchange
Chen Shukai 2,611,400
Foreign shares placed in domestic
exchange
Liu Wanping 2,569,407 RMB Common shares
Hu Airong 2,528,085 RMB Common shares
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.Particulars about the Directors,Supervisors and Senior Executives
8
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
15,032 0 3,758 11,274 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
The company neither employed nor dismiss of directors, supervisors and executives in the report
period.Report of the Board of Directors
9
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 2010, 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
2010(million vehicles)
Increase
/Decrease(%)
Toll income from
Jan to Jun 2010
(RMB Million
yuan)
Increase/Decrease(%)
Guangfo
Expressway
15.61 7.38% 136.95 3.18%
Fokai
Expressway
13.52 -10.88% 337.02 1.64%
Jiujiang
Bridge
3.09 777.96% 20.15 634.17%
Huiyan
Expressway
14.13 9.64% 156.08 7.75%
Maozhan
Expressway
4.92 13.77% 211.61 15.78%
Jingzhu
Expressway
Guangzhu
Section
17.31 18.67% 570.14 17.28%
Guangzhao
Expressway
6.28 23.67% 123.06 30.35%
Guanghui
Expressway
12.25 27.87% 749.5 17.45%
Jiangzhong
Expressway
10.33 20.01% 145.68 21.27%
Kangda
Expressway
0.27 37.67% 14.91 31.22%
With the further improvement of domestic and international economy, the vehicle traffic volume
and toll income of many expressways increased sharply except that of Guangfo Expressway and
Fokai Expressway increased by small margin respectively due to shunting of roads in the
neighborhood and expansion project.
On May 24, 2010, Jiujiang Bridge Branch of Guangdong Fokai Expressway Co., Ltd. signedReport of the Board of Directors
10
Compensation Agreement with International Insurance Dept. of Guangdong Branch of PICC
Property and Casualty Co., Ltd. Both parties reached agreement on insurance indemnity scheme
through consultation. After full payment of RMB 111.75 million, the liability of the insurer for
compensation in respect of this insurance accident will be cancelled according to law. According
to the provisions of Accounting Standards for Business Enterprises and relevant clauses of the
insurance contract, Jiujiang Bridge Branch of Guangdong Fokai Expressway Co., Ltd. wrote off
the net asset value of Jiujiang Bridge with compensation of RMB 97.3250 million for
reconstruction project and accounted for the compensation of RMB 14.4250 million for expenses
on disposal of debris as non-operating income for current period.
(II) Year-on-year increase/decrease of operating income, operating profit and net profit
Unit：RMB
January-June 2010 January-June 2009
Year-on-year
increase/decr
ease
Operating income 501,059,949.79 471,816,749.75 6.20%
Operating cost 241,612,200.11 167,659,678.25 44.11%
Operating profit 301,783,513.71 300,113,928.29 0.56%
Investment income 190,006,307.13 132,758,229.87 43.12%
Net profit attributable to
shareholders of the listed
company
237,803,790.41 215,914,671.27 10.14%
Reasons for increasing of Operating income：Jiujiang Bridge was open to traffic after completion
of repair in June 2009 and Guangfo Expressway was open to traffic after completion of expansion
at the end of 2009. As a result, toll income increased.
Reasons for increasing of Operating cost：Jiujiang Bridge was open to traffic after completion of
repair in June 2009 and Guangfo Expressway was open to traffic after completion of expansion at
the end of 2009. The original value of expressway assets and vehicle traffic volume increased so
that the provision for depreciation made on basis of vehicle traffic volume increased.
Reasons for increasing of Investment income：The net profits of the joint venture companies and
affiliated companies increased so that the Company's investment income accounted for on equity
basis increased.
Reasons for increasing of Net profit attributable to shareholders of the listed company：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. TheReport of the Board of Directors
11
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 501,059,949.79, coming form the toll
collection on expressways and very large bridges.
The Status of key business in terms of industry of business and product:
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 (%)
Highway
transportation
49,482.27 23,658.45 52.19% 6.01% 43.83% -12.57%
Other 252.93 265.88 -5.12% 137.75% 53.44% 57.76%
The status of key business in terms of product business
Toll income 49,461.91 23,755.32 51.97% 5.97% 44.42% -12.79%
Other 273.28 169.00 38.16% 156.89% -2.47% 101.04%
The status of key business in terms of areas
Unit：RMB’0000
Area Income from key business
Increase/decrease of income
（％）
Guangdong 497,35.19 6.31%
(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% of 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 engineeringReport of the Board of Directors
12
consultation. The net profit of this company for Jan - June 2010 was RMB 79.9813 million. The
Long-term equity investment income obtained by the Company under Equity method was
RMB25.9496 million.
2. 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 2010 was RMB350.4405 million.
The Long-term equity investment income obtained by the Company under Equity method was
RMB66.2218 million.
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
2010 was RMB 299.8084 million. The Long-term equity investment income obtained by the
Company under Equity method was RMB 89.9425 million.
(VII) Problems and difficulties occurred in operation
Difficulties confronted by the Company: According to the Regulations on Toll Highway, the toll
term of a for-profit highway shall be determined according to the principle of investment recovery
and reasonable return and the longest term shall not exceed 25 years. The longest toll term of a
state-determined for-profit highway in mid-west provinces, autonomous regions and
municipalities directly under central government shall not exceed 30 years. The Company will
face certain operation pressure after the expiry of the toll-based project operation period.
The countermeasures of the Company mainly include: The Company should make reasonable and
unified planning for the toll expressway projects that have been put into operation, those that are
under construction and those to be invested in so as to make the toll terms of the projects orderly
connect and keep its own ability of continuous operation.
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
1. The Company signed the Contract for Share Capital Increase of Ganzhou Gankang Expressway
Co., Ltd. with Ganzhou Expressway Co., Ltd. in December 2007. The Company is expected to
invest RMB289.3002 million in 30% equity of Ganzhou Gankang Expressway Co., Ltd. for
constructing Ganzhou-Dayu expressway (from Maodian to Sanyi section) and Ganzhou highway
bridge. On January 11, 2008, the first provisional shareholders' general meeting of the Company in
2008 examined and adopted the resolution concerning this investment. The procedure of industrialReport of the Board of Directors
13
and commercial registration of shareholder change of Ganzhou Gankang Expressway Co., Ltd.
was completed on April 16, 2008. In the report period, The Company invested RMB 45 million to
Gankang company , As of June 30, 2010, The Company had accumulated increased capital RMB
210 million in total.
2. The Company held the 15th meeting of the fifth board of directors on September 10, 2009 to
review and approve the Motion of Investing in 30% Equity of Guangzhou-Lechang Expressway
Project. The board of directors consented to invest RMB2,561.914 million in 30% equity of
Guangzhou-Lechang highway project. Total investment and capital invested by shareholders shall
be the final accounts approved by the competent government authority. The board of directors
authorized the management team of the Company to negotiate about and modify the contracts and
articles related to the project, and deal with other matters that are not mentioned herein. The board
of directors authorized the chairman to sign the related contracts. The Company held the second
extraordinary general meeting of shareholders on September 28, 2009 to review and approve the
preceding motion and its contents. The Company invested RMB 309.9975 million to Guangle
company ,As of June 30, 2010, The company has invested accumulated RMB 339.9975 million.
III. Operation performance
Targets for operating income and operating cost in 2010 were RMB940.1269 million and
RMB554.6234 million respectively quoted in the 2009 annual report. As of June 30, 2010,
operating income of the Company was RMB501.0599 million, which accounts for 53.30% of the
target; operating cost of the Company is RMB241.6122 million, which accounts for 43.563% of
the target.Important events
14
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,
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.
II. Particulars and execution of profit distribution and capitalizing of common reserves for the
previous fiscal year
According to the resolution passed at the annual shareholders’ general meeting 2009, The
Company's dividend distribution plan for 2009: With the existing total share capital, i.e.,
1,257,117,748 shares, as the base, cash dividend of RMB 1.00 (including tax) is to be distributed
for every 10 shares，that is :
1. Cash dividend of RMB 0.9 is to be actually paid for every 10 shares to individual shareholders
of A shares, investment funds and qualified foreign institutional investors.
2. For the shareholders holding B shares that are non-resident enterprises, cash equivalent to RMB
0.9 will actually be paid for every 10 shares after tax deduction. For the shareholders holding B
shares that are not non-resident enterprises, income tax shall not be withheld.
Cash dividend of RMB 125,711,774.80is to be distributed, The undistributed profit was carried
forward to the
The Company had implemented this distribution plan on July 20，2010.
III. In the report period, What the Company was involved in significant lawsuit, arbitrationsImportant events
15
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
by 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) Guangdong Expressway technology Investment Co., Ltd. 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 madeImportant events
16
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
September 16, 2009, The case came to trial. In April 2010, the court decided in the first instance
that the Defendant Wang Jianji should pay the principal of entrusted loan, i.e., RMB 8 million, and
interest incurred to Guangdong High-tech. The Defendant Wang Jianji lodged an appeal against
the Judgment of First Instance. The hearings for the second instance of this case was held in
Beijing First Intermediate People's Court on July 15, 2010. So far, no judgment has been made for
the trial of second instance.
(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
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.
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.
(4)In November of 2009, Southeast Asia Maofa Co., Ltd. claimed an administrative proceedings
against Development of Foreign Trade and Economic Cooperation of Guangdong Province for
rescinding the Approval for Capital Investment of Guangdong Maozhan Expressway Co., Ltd. [No.
(2008) 425] made by Development of Foreign Trade and Economic Cooperation of Guangdong
Province to People’s Court of Tianhe District of Guangzhou. The Court notified the Company as a
third party who will be affected by the result of the case of attending the proceedings. The case
came to trial on January 18, 2010. On April 15, 2010, Guangzhou Tianhe District People's Court
made (2010) Tian Fa Xing Chu Zi No.9 administration judgment and rejected the Plaintiff's claim.
The Plaintiff refused to accept the judgment for the first instance and instituted an appeal. On July
5, 2010, Guangzhou Intermediate People's Court conducted court inquiry.Important events
17
IV. The equity of other listed companies and financial enterprises held by the Company
Unit：RMB
Name of
subjects
held
Initial
investment
amount
Number held
The
proportion
to the
equity of
the
company
Book value at
period end
Loss and
gain in
the
reporting
period
Changes of
owner’s
equity in
the
reporting
period
Accounting
calculation
subjects
Origin of
equity
China
Everbright
Bank Co.,
Ltd.
528,000,000.00 240,000,000 0.72% 528,000,000.00 0.00 0.00
Long-term
equity
investment
Subscript
ion in
2009
Huaxia
Securities
Co., Ltd.
5,400,000.00 5,400,000 0.27% 0.00 0.00 0.00
Long-term
equity
investment
Sharehol
der
investme
nt
Huazheng
Assets
Manageme
nt Co., Ltd.
1,620,000.00 1,620,000 0.54% 226,800.00 0.00 0.00
Long-term
equity
investment
Dividen
d
Investm
ent
Kunlun
Securities
Co., Ltd.
30,000,000.00 30,000,000 5.74% 0.00 0.00 0.00
Long-term
equity
investment
Purchas
ed
Total 565,020,000.00 277,020,000 - 528,226,800.00 0.00 0.00 - -
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
In the report period, The Company has no Significant Related transactions.
The 3rd meeting of the sixth board of directors of the Company was held on April 22,2010, The
meeting examined and adopted the Proposal for Borrowing Entrusted Loan from Guangdong
Guanghui Expressway Co., Ltd. ,The Company was approved to apply to Guanghui Company for
an entrusted loan. The amount of loan is RMB One Hundred and Five Million Only (RMB
105,000,000.00) and the term of loan is half a year. The interest rate of loan is the loan rate quoted
by People's Bank of China in the same period at 10% discount. The principal and interest of loan
will be repaid in lump sum on the maturity day. After expiration of the loan, the Company may
renew the entrusted loan contract with Guanghui Company with loan term and loan interest rate
remaining unchanged. As of June 30, 2010, The Company has not borrowed the above-mentionedImportant events
18
entrusted loan from Guangdong Guanghui Expressway Co., Ltd.
（2） In the report period, the Company were not involved in related transactions concerning
assets acquisition and disposal.
（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.
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,
and 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. The plan of increase in purchasing shares
was complete on December 10, 2009.
Status of fulfillment：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 inImportant events
19
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
punished 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. The registration form of acceptance of investigation, communication and interview in the
report period for future reference
Date Place Mode Visitor
Content of discussion and
materials provided
April 8,2010 The Company Onsite investigation
Analyst of Guotai
Junan Securities,
Senior-Analyst of
China Southern
Fund Management
1.The vehicle traffic volume
and toll income of the
expressways held or partly
held by the Company in 2010.
2. Main operation scope andImportant events
20
Co., Ltd., Analyst
of Franklin
Templeton
Sealand Fund
Management Co.,
Ltd.
operation Status in 2010.
3. The difficulties confronted
by the Company and
countermeasures.
4. The Company's investment.
5. The implementation status
of the Company's business
plan. 6. Developmental strategy
of the company
April 21,2010 The Company Onsite investigation
Hachiman Capital
Singapore Fund
Manager
1.The vehicle traffic volume
and toll income of the
expressways held or partly
held by the Company in 2010.
2. Main operation scope and
operation Status in 2010.
3. The difficulties confronted
by the Company and
countermeasures.
4. The Company's investment.
5. The implementation status
of the Company's business
plan. 6. Developmental strategy
of the companyFinancial Report
21
VII Financial Report(Uncensored)
I. Financial statement
1.Balance Sheet
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2010 Unit: RMB
Year-end balance Year-beginning balance
Items
Consolidated
Parent Company.
Consolidated
Parent Company.
Current asset：
Monetary fund 597,399,737.09 224,012,998.01 218,754,995.03 113,474,208.24
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable
Account receivable 25,668,410.95 11,873,742.02
Prepayments 364,331,582.77 292,435,314.87
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 132,750.00 531,000.00
Dividend receivable 69,459,045.51 89,121,531.88
Other account receivable 31,525,797.17 4,103,477.58 31,395,116.40 3,397,319.61
Repurchasing of
financial assets
Inventories 275,951.76 220,142.91
Non-current asset due in 1
year
Other current asset 100,000,000.00 400,000,000.00
Total of current assets 1,088,660,525.25 417,370,757.47 554,679,311.23 517,402,527.85
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 3,086,652,060.79 4,202,305,630.31 2,813,284,533.76 3,928,018,103.28Financial Report
22
Year-end balance Year-beginning balance
Items
Consolidated
Parent Company.
Consolidated
Parent Company.
investment
Property investment 6,240,294.63 5,985,219.93 6,508,675.44 6,217,326.63
Fixed assets 3,824,298,700.93 5,076,950.38 4,075,251,730.31 4,333,177.25
Construction in progress 1,881,469,204.85 1,388,953,103.98
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 62,581,400.83 66,342,785.41
R & D petrol
Goodwill
Long-germ expenses to be
amortized
126,088.84 156,350.15
Differed income tax asset 10,000,000.00 10,000,000.00
Other non-current asset
Total of non-current assets 8,871,367,750.87 4,213,367,800.62 8,360,497,179.05 3,938,568,607.16
Total of assets 9,960,028,276.12 4,630,738,558.09 8,915,176,490.28 4,455,971,135.01
Current liabilities
Short-term loans 500,000,000.00 100,000,000.00 654,000,000.00 100,000,000.00
Loan from Central Bank
Deposit received and hold
for others
Call loan received
Trade off financial
liabilities
Bill payable
Account payable 183,443,464.74 550,000.00 159,018,048.20
Advance payment 7,054,071.62 7,456,276.76
Selling of repurchased
financial assets
Fees and commissions
receivable
Employees’ wage payable 2,154,928.28 161,624.36 4,765,766.41 3,744,813.81
Tax payable 22,647,492.26 195,008.15 4,159,074.15 335,875.55
Interest Payable 37,371,133.91 31,733,333.33 16,523,915.41 11,373,158.33
Dividend Payable 144,958,039.81 138,403,877.68 13,205,176.58 13,205,176.58
Other account payable 173,789,637.34 2,617,578.55 165,005,234.22 2,586,897.36
Reinsurance fee payable
Insurance contract
provisionFinancial Report
23
Year-end balance Year-beginning balance
Items
Consolidated
Parent Company.
Consolidated
Parent Company.
Entrusted trading of
securities
Entrusted selling of
securities
Non-current liability due in
1 year
159,000,000.00 150,000,000.00
Other current liability 53,950,987.42 79,010,228.67
Total of current liability 1,230,418,767.96 327,612,409.49 1,174,133,491.73 210,256,150.30
Non-current liabilities：
Long-term loan 3,675,964,803.54 2,820,874,803.54
Bond payable 790,435,836.91 790,435,836.91 789,376,380.58 789,376,380.58
Long-term payable 2,022,210.11 2,022,210.11 2,022,210.11 2,022,210.11
Special payable
Expected liabilities
Differed income tax
liability
116,588,405.59 115,352,612.14
Other non-current
liabilities
Total of non-current
liabilities
4,585,011,256.15 792,458,047.02 3,727,626,006.37 791,398,590.69
Total of liability 5,815,430,024.11 1,120,070,456.51 4,901,759,498.10 1,001,654,740.99
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 1,534,758,715.57 1,534,906,856.32 1,534,906,856.32 1,534,906,856.32
Less：Shares in stock
Special reserve
Surplus reserves 130,342,184.11 130,342,184.11 130,342,184.11 130,342,184.11
Common risk provision
Undistributed profit 787,958,800.80 588,301,313.15 675,866,785.19 531,949,605.59
Different of foreign
currency translation
Total of owner’s equity
belong to the parent
company
3,710,177,448.48 3,510,668,101.58 3,598,233,573.62 3,454,316,394.02
Minor shareholders’ equity 434,420,803.53 415,183,418.56
Total of owners’ equity 4,144,598,252.01 3,510,668,101.58 4,013,416,992.18 3,454,316,394.02
Total of liabilities and
owners’ equity
9,960,028,276.12 4,630,738,558.09 8,915,176,490.28 4,455,971,135.01Financial Report
24
2.Profit statement
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June 2010 Unit：RMB
Current term Same period last year
Items
Consolidated Parent Company Consolidated Parent Company
I. Total business income 501,059,949.79 6,015,720.00 471,816,749.75 3,600.00
Incl：Business income 501,059,949.79 471,816,749.75
Interest income
Insurance fee earned
Fee and commission
received
II.Total business cost 389,282,743.21 44,248,588.33 304,333,672.79 25,272,882.70
Incl：Business cost 241,612,200.11 232,106.70 167,659,678.25
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves
Insurance policy dividend
paid
Reinsurance expenses
Business tax and surcharge 17,664,837.45 306,200.15 15,533,972.20 180.00
Sales expense
Administrative expense 47,100,615.59 20,286,182.17 47,896,913.39 23,962,124.27
Financial expenses 82,905,090.06 23,424,099.31 68,856,572.60 1,310,578.43
Asset impairment loss 4,386,536.35
Add：Gains from change
of fir value （“-”for loss）
Investment gain（“-”for loss） 190,006,307.13 220,193,605.69 132,758,229.87 253,606,591.16
Incl: investment gains from
affiliates
190,006,307.13 190,006,307.13 125,642,159.44 125,944,912.23
Gains from currency
exchange（“-”for loss）
III. Operational profit（“-”for
loss）
301,783,513.71 181,960,737.36 300,241,306.83 228,337,308.46
Add：Non-business income 15,990,763.99 266,710.70 1,019,915.03 34,525.00
Less：Non business expenses 4,622,504.88 163,965.70 477,373.69
Incl：Loss from disposal of
non-current assets
4,310,379.77 70,692.18
IV.Gross profit(“-”for loss） 313,151,772.82 182,063,482.36 300,783,848.17 228,371,833.46Financial Report
25
Current term Same period last year
Items
Consolidated Parent Company Consolidated Parent Company
Less：Income tax expenses 45,276,305.33 46,465,237.48
V. Net profit（“-”for net loss） 267,875,467.49 182,063,482.36 254,318,610.69 228,371,833.46
Net profit attributable to the
owners of parent company
237,803,790.41 182,063,482.36 215,914,671.27 228,371,833.46
Minor shareholders’ equity 30,071,677.08 38,403,939.42
VI. Earnings per share：
（I）Basic earnings per
share
0.19 0.14 0.17 0.18
(II)Diluted earnings per
share
0.19 0.14 0.17 0.18
VII. Other comprehensive
income
VIII. Total comprehensive
income
267,875,467.49 182,063,482.36 254,318,610.69 228,371,833.46
Total comprehensive income
attributable to the owner of
the parent company
237,803,790.41 182,063,482.36 215,914,671.27 228,371,833.46
Total comprehensive
income attributable minority
shareholders
30,071,677.08 38,403,939.42Financial Report
26
3.Cash flow statement
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
January-June 2010 Unit：RMB
Current term Same period last year
Item
Consolidated Parent Company Consolidated Parent Company
I. Net cash flow from
business operation
Cash received from sales of
products and providing of
services
481,910,013.25 456,566,626.51
Net increase of customer
deposits and capital kept for
brother company
Net increase of loans from
central bank
Net increase of inter-bank
loans from other financial
bodies
Cash received against
original insurance contract
Net cash received from
reinsurance business
Net increase of client deposit
and investment
Net increase of trade
financial asset disposal
Cash received as interest,
processing fee and
commission
Net increase of inter-bank
fund received
Net increase of
repurchasing business
Tax returned
Other cash received from
business operation
477,063,376.90 424,663,023.39 19,592,585.12 468,173,266.49
Sub-total of cash inflow 958,973,390.15 424,663,023.39 476,159,211.63 468,173,266.49
Cash paid for purchasing of
merchandise and services
33,777,904.47 32,476,288.73
Net increase of client trade
and advance
Net increase of savings n
central bank and brotherFinancial Report
27
Current term Same period last year
Item
Consolidated Parent Company Consolidated Parent Company
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
54,057,871.21 14,559,140.80 48,317,351.22 10,982,692.41
Taxes paid 44,794,920.28 338,241.53 57,480,998.53 26,049.52
Other cash paid for
business activities
497,400,289.05 458,664,729.00 130,347,217.35 410,069,752.55
Sub-total of cash outflow
from business activities
630,030,985.01 473,562,111.33 268,621,855.83 421,078,494.48
Cash flow generated by
business operation, net
328,942,405.14 -48,899,087.94 207,537,355.80 47,094,772.01
II.Cash flow generated by
investing
Cash received from
investment retrieving
797,000.00
Cash received as investment
gains
202,177,234.59 212,702,046.78 163,117,251.43 193,265,607.66
Net cash retrieved from
disposal of fixed assets,
intangible assets, and other
long-term assets
477,817.00 305,800.00 1,200.00
Net cash received from
disposal of subsidiaries or
other operational units
Other investment-related
cash received
306,409,170.00
Sub-total of cash inflow due
to investment activities
202,655,051.59 519,417,016.78 163,915,451.43 193,265,607.66
Cash paid for construction of
fixed assets, intangible
assets and other
long-term assets
395,583,707.51 1,278,945.00 446,610,971.81 419,320.00
Cash paid as investment 355,917,500.00 355,917,500.00 34,500,000.00 34,500,000.00
Net increase of loan against
pledge
Net cash received fromFinancial Report
28
Current term Same period last year
Item
Consolidated Parent Company Consolidated Parent Company
subsidiaries and other
operational units
Other cash paid for
investment activities
2,528.44
Sub-total of cash outflow
due to investment
activities
751,501,207.51 357,196,445.00 481,113,500.25 34,919,320.00
Net cash flow generated by
investment
-548,846,155.92 162,220,571.78 -317,198,048.82 158,346,287.66
III.Cash flow generated by
financing
Cash received as
investment
Incl: Cash received as
investment from minor
shareholders
Cash received as loans 1,378,210,000.00 802,340,000.00
Cash received from
bond placing
Other financing –related
ash received
Sub-total of cash inflow
from financing activities
1,378,210,000.00 802,340,000.00
Cash to repay debts 668,120,000.00 300,000,000.00
Cash paid as dividend,
profit, or interests
111,537,594.78 2,778,781.69 121,084,051.88 7,004,588.15
Incl: Dividend and
profit paid by subsidiaries to
minor shareholders
3,508,270.73
Other cash paid for financing
activities
Sub-total of cash outflow
due to financing activities
779,657,594.78 2,778,781.69 421,084,051.88 7,004,588.15
Net cash flow generated by
financing
598,552,405.22 -2,778,781.69 381,255,948.12 -7,004,588.15
IV.Influence of exchange rate
alternation on cash and cash
equivalents
-3,912.38 -3,912.38 -217.14 -217.14
V.Net increase of cash and
cash equivalents
378,644,742.06 110,538,789.77 271,595,037.96 198,436,254.38
Add: balance of cash and
cash equivalents at the
218,754,995.03 113,474,208.24 350,765,725.76 41,195,556.89Financial Report
29
Current term Same period last year
Item
Consolidated Parent Company Consolidated Parent Company
beginning of term
VI. Balance of cash and cash
equivalents at the end of term
597,399,737.09 224,012,998.01 622,360,763.72 239,631,811.27Financial Report
30
4. Consolidated Statement of Change in Owners’ Equity
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2010 Unit：RMB
Amount of the Current term
Owner’s equity Attributable to the Parent Company
Items
Share Capital Capital reserves
Less:
Shares
in
stock
Specia
l
reserv
e
Surplus reserves
Com
mon
risk
provis
ions
Attributable profit Other
Minor
shareholders’
equity
Total of owners’
equity
I.Balance at the end of last
year
1,257,117,748.00 1,534,906,856.32 130,342,184.11 675,866,785.19 415,183,418.56 4,013,416,992.18
Add: Change of
accounting policy
Correcting of previous
errors
Other
II.Balance at the beginning
of current year
1,257,117,748.00 1,534,906,856.32 130,342,184.11 675,866,785.19 415,183,418.56 4,013,416,992.18
III.Changed in the current
year
-148,140.75 112,092,015.61 19,237,384.97 131,181,259.83
（I） Net profit 237,803,790.41 30,071,677.08 267,875,467.49
（II）Other misc.income
Total of (I) and (II) 237,803,790.41 30,071,677.08 267,875,467.49
(III) Investment or
decreasing of capital by
-148,140.75 -771,859.25 -920,000.00Financial Report
31
Amount of the Current term
Owner’s equity Attributable to the Parent Company
Items
Share Capital Capital reserves
Less:
Shares
in
stock
Specia
l
reserv
e
Surplus reserves
Com
mon
risk
provis
ions
Attributable profit Other
Minor
shareholders’
equity
Total of owners’
equity
owners
1. Capital inputted by
owners
2．Amount of shares
paid and accounted as
owners’ equity
3. Other -148,140.75 -771,859.25 -920,000.00
（IV）Profit allotment -125,711,774.80 -10,062,432.86 -135,774,207.66
1.Providing of surplus
reserves
2.Providing of common
risk provisions
3．Allotment to the owners
(or shareholders)
-125,711,774.80 -10,062,432.86 -135,774,207.66
4．Other
(V) Internal transferring
of owners’ equity
1. Capitalizing of capital
reserves (or to capitalFinancial Report
32
Amount of the Current term
Owner’s equity Attributable to the Parent Company
Items
Share Capital Capital reserves
Less:
Shares
in
stock
Specia
l
reserv
e
Surplus reserves
Com
mon
risk
provis
ions
Attributable profit Other
Minor
shareholders’
equity
Total of owners’
equity
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
IV. Balance at the end of
this term
1,257,117,748.00 1,534,758,715.57 130,342,184.11 787,958,800.80 434,420,803.53 4,144,598,252.01Financial Report
33
Consolidated Statement of Change in Owners’ Equity(Cont’d)
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2010 Unit：RMB
Amount of the previous term
Owner’s equity Attributable to the Parent Company
Items
Share
Capital
Capital reserves
Less:
Shares
in
stock
Specia
l
reserv
e
Surplus reserves
Com
mon
risk
provis
ions
Attributable profit Other
Minor
shareholders’
equity
Total of owners’
equity
I.Balance at the end of
last year
1,257,117,74
8.00
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
-12,809.96 -35,837,284.34 -12,170,856.62 -48,020,950.92
Other
II.Balance at the
beginning of current year
1,257,117,74
8.00
1,534,906,856.32 43,839,264.52 452,838,246.31 441,821,620.34 3,730,523,735.49
III.Changed in the
current year
90,202,896.47 -4,149,953.56 86,052,942.91
（I） Net profit 215,914,671.27 38,403,939.42 254,318,610.69
（II）Other
misc.income
Total of (I) and (II) 215,914,671.27 38,403,939.42 254,318,610.69
(III) Investment orFinancial Report
34
Amount of the previous term
Owner’s equity Attributable to the Parent Company
Items
Share
Capital
Capital reserves
Less:
Shares
in
stock
Specia
l
reserv
e
Surplus reserves
Com
mon
risk
provis
ions
Attributable profit Other
Minor
shareholders’
equity
Total of owners’
equity
decreasing of capital by
owners
1. Capital inputted
by owners
2．Amount of shares
paid and accounted as
owners’ equity
3. Other
（IV）Profit allotment -125,711,774.80 -42,553,892.98 -168,265,667.78
1.Providing of surplus
reserves
2.Providing of common
risk provisions
3．Allotment to the
owners (or shareholders)
-125,711,774.80 -42,553,892.98 -168,265,667.78
4．Other
(V) Internal transferring
of owners’ equity
1. Capitalizing ofFinancial Report
35
Amount of the previous term
Owner’s equity Attributable to the Parent Company
Items
Share
Capital
Capital reserves
Less:
Shares
in
stock
Specia
l
reserv
e
Surplus reserves
Com
mon
risk
provis
ions
Attributable profit Other
Minor
shareholders’
equity
Total of owners’
equity
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
IV. Balance at the end of
this term
1,257,117,74
8.00
1,534,906,856.32 43,839,264.52 543,041,142.78 437,671,666.78 3,816,576,678.40Financial Report
36
5. Parent Company Statement on Change in Owners’ Equity
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2010 Unit：RMB
Amount of the Current term
Items Share Capital Capital reserves
Less:
Shares
in stock
Special
reserve
Surplus reserves
Commo
n risk
provisio
ns
Attributable profit
Total of owners’
equity
I.Balance at the end of
last year
1,257,117,748.00 1,534,906,856.32 130,342,184.11 531,949,605.59 3,454,316,394.02
Add: Change of
accounting policy
Correcting of previous
errors
Other
II.Balance at the
beginning of current year
1,257,117,748.00 1,534,906,856.32 130,342,184.11 531,949,605.59 3,454,316,394.02
III.Changed in the
current year
56,351,707.56 56,351,707.56
（I） Net profit 182,063,482.36 182,063,482.36
（II）Other
misc.income
Total of (I) and (II) 182,063,482.36 182,063,482.36
(III) Investment or
decreasing of capital by
ownersFinancial Report
37
Amount of the Current term
Items Share Capital Capital reserves
Less:
Shares
in stock
Special
reserve
Surplus reserves
Commo
n risk
provisio
ns
Attributable profit
Total of owners’
equity
1. Capital inputted
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 (or shareholders)
-125,711,774.80 -125,711,774.80
4．Other
(V) Internal transferring
of owners’ equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or toFinancial Report
38
Amount of the Current term
Items Share Capital Capital reserves
Less:
Shares
in stock
Special
reserve
Surplus reserves
Commo
n risk
provisio
ns
Attributable profit
Total of owners’
equity
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
IV. Balance at the end of
this term
1,257,117,748.00 1,534,906,856.32 130,342,184.11 588,301,313.15 3,510,668,101.58Financial Report
39
Parent Company Statement on Change in Owners’ Equity(Cont’d)
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2010 Unit：RMB cont.d
Amount of the previous term
Items
Share Capital Capital reserves
Less:
Shares
in stock
Special
reserve
Surplus reserves
Commo
n risk
provisio
ns
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）Other
misc.incomeFinancial Report
40
Amount of the previous term
Items
Share Capital Capital reserves
Less:
Shares
in stock
Special
reserve
Surplus reserves
Commo
n risk
provisio
ns
Attributable profit
Total of owners’
equity
Total of (I) and (II) 228,371,833.46 228,371,833.46
(III) Investment or
decreasing of capital by
owners
1. Capital inputted
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 (or shareholders)
-125,711,774.80 -125,711,774.80
4．Other
(V) Internal transferring
of owners’ equity
1. Capitalizing ofFinancial Report
41
Amount of the previous term
Items
Share Capital Capital reserves
Less:
Shares
in stock
Special
reserve
Surplus reserves
Commo
n risk
provisio
ns
Attributable profit
Total of owners’
equity
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
IV. Balance at the end of
this term
1,257,117,748.00 1,534,906,856.32 91,921,501.73 414,535,297.62 3,298,481,403.6742
Notes to the Financial Statements（January- June 2010）
(Referring to notes to consolidated financial statements unless separately stated.
Currency: RMB)
I. Company Profi le
1.The Company was es tablished in February 1993, which was or iginally named
as Guangdong Fokai Expres sway Co., Ltd On June 30, 1993, it was renamed as
Guangdong Provincial Expressway Development Co. , Ltd. after reorganizat ion
pursuant to the approval of the Off ice of Joint Examinat ion Group of
Experimental Units of Share Holding Sys tem wi th YLSB (1993)No. 68 document .
The share capi tal st ructure after reorganizat ion is as fol lows: Composition of
state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge
Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong
State-owned Asset Management Dept., i.e.,RMB 418.2136 million, was converted into 155.025
million shares. Guangdong Expressway Co. invested cash of RMB 115 million to subscribe for
35.9375 million shares. Other legal persons invested cash of RMB 286.992 million to subscribe
for 89.685 million shares. Staff of the Company invested RMB 87.008 million to subscribe for
27.19 million shares. The total is RMB 307.8375.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong
Securities Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of
non-state-owned legal person shares transferred 20 million non-state-owned legal person shares to
Malaysia Yibao Engineering Co., Ltd. in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No.
24 approval document and that of Guangdong Economic System Reform Committee with YTG
(1996) No. 68 document, the Company issued 135 million domestically listed foreign investment
shares (B shares) to overseas investors at the price of HKD 3.54 (equivalent to RMB 3.8) with the
par value of each share being RMB 1 during June to July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’
s Republic of China with (1996) WJMZYHZ No. 606 document, the Company was approved to be
a foreign-invested joint stock company limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in
the following manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized
capital common reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997)
No. 486 and No. 487 document, the Company issued 100 million public shares (A shares) at the
price of RMB 5.41 in term of “payable in full on application, pro-rate placing and subject to
refund” with the par value of each share being RMB 1 in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company
and pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC with
GZZJH (2000) No. 99 and that of CSRC with ZJGSZ (2000) No. 98, the Company offered 3
Rights for every 10 shares of 764.256249 million shares at the price of RMB 11 per
Right.73,822,250 ordinary shares were actually placed to all43
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong
Province with YBH (2000) No. 574 document, the state-owned shares were transferred to
Guangdong Communication Group Co., Ltd. (Group Co.) for holding and management without
compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the
Company (132,722 shares held by directors, supervisors and senior executives are temporarily
frozen) were listed on February 5, 2001.As of June 30, 2010, the quantity of the shares subject to
sale restriction held by senior executives is 198,857.
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 Secur it ies Regulatory Commiss ion
by document Zheng-J ian-Gong-Si -Zi [2003]No.3, the 45,000,000 non-negot iable
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, 2010，Registration capital :RMB1,257,117,748，Legal reprwsentative：Zhou
Yuming，Registration place:No.85, Baiyun Road, Guangzhou, Headquarters Office: No.85, Baiyun
Road, Guangzhou.，The company has set up: Investment Development Dept, Security Affairs
Department, Financial Management Dept, Base construction Dept, Audit and Supervise Dept,
Affairs Dept, Personnel Department , Party Work Dept and Law affairs Dept etc.
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 engaged in automobile transport and
warehousing supporting its business.
15.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 Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd., China Everbright
Bank, Guangzhou Guangle Expressway Co., Ltd. Huaxia Securities Co., Ltd and Huazheng Asset
Management Co., Ltd.
16. Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal
representative: Zhu Xiaoling. Date of establishment: June 23, 2000. As of June 30,
2010,Registered capital: RMB 26.8 billion. It is a solely state-owned limited company. Business
scope：equity management, organization of asset reorganization and optimized allocation, raising
funds by means including mortgage, transfer of property rights and joint stock system
transformation, project investment, operation and management, traffic infrastructure construction,
highway and railway project operation and relevant industries, technological development,
application, consultation and services, highway and railway passenger and cargo transport, ship44
industry, relevant overseas businesses.
II. Principal accounting policies, accounting estimates and early errors
（1）Basis for Preparing the Financial Statements
The company prepares the financial statements on the basis of a continuous operation, the actual
transactions, “Accounting Standards for Enterprises – Basic Standards”, other accounting
standards & related regulations.
(2). 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.
(3)Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
(4)Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
(5)Accountings for Business Combinations under the Same Control & Business
Combinations not under the Same Control
1.Business Combinations under the Same Control
The assets and liabilities that the company obtains in a business combination shall be measured on
the basis of their carrying amount in the combined party on the combining date. As for the balance
between the carrying amount of the net assets obtained by the combining party & the carrying
amount of the consideration paid by it (or the total par value of the shares issued), the additional
paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be offset, the
retained earnings shall be adjusted.
The direct costs for the business combination of the company, including the expenses for audit,
assessment and legal services, shall be recorded into the profits & losses at the current period.
The handling fees, commissions & other expenses for the issuance of equity securities for the
business combination shall be credited against the surplus of equity securities; if the surplus is not
sufficient, the retained earnings shall be offset.
Where the accounting policies adopted by the combined parties are different from those adopted
by the company, the company shall adjust them on the combining date according to the accounting
policy it adopts, and shall, pursuant to the Accounting Standards for Enterprises, recognize them
on the basis of such adjustments.45
2. Business Combinations not under the Same Control
The assets paid as the consideration for the business combination & the liabilities assumed on the
acquisition date shall be measured in accordance with the fair value. The difference between the
fair value & its carrying amount shall be recorded into the profits & losses at the current period.
The company will distribute the combination costs on the acquisition date.
The company shall recognize the positive balance between the combination costs & the fair value
of the identifiable net assets it obtains from the acquiree as Goodwill while it shall record the
negative balance between the combination costs & the fair value of the identifiable net assets it
obtains from the acquiree into the profits & losses of the current period.
As for the assets other than intangible assets acquired from the acquiree in a business combination
(not limited to the assets which have been recognized by the acquiree), if the economic benefits
brought by them are likely to flow into the enterprise and their fair values can be measured reliably,
they shall be separately recognized and measured in light of their fair values. As for any intangible
asset acquired in a combination, if its fair value can be measured reliably, it shall be separately
recognized as an intangible asset and shall measured in light of its fair value. As for the liabilities
other than contingent liabilities acquired from the acquiree, if the performances of the relevant
obligations are likely to result in any out-flow of economic benefits from the enterprise, and their
fair values can be measured reliably, they shall be separately recognized and measured in light of
their fair values. As for the contingent liabilities of the acquiree obtained in a combination, if their
fair values can be measured reliably, they shall be separately recognized as liabilities and shall be
measured in light of their fair values.
（6）Methods for Preparing the Consolidated Financial Statements
The scope of the consolidated financial statements will be recognized on the basis of controlling.
All the subsidiaries will be included into the consolidated financial statements.
The accounting policies & accounting periods adopted by all the subsidiaries that have been
included into the scope of the consolidated financial statements should be consistent with those
adopted by the company. If the accounting policies & accounting periods adopted by the
subsidiaries are different from those adopted by the company, the company shall make necessary
adjustments according to the accounting policies & accounting periods it adopts when preparing
the consolidated financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity method,
the company shall prepare the consolidated financial statements based on the financial statements
of the company & its subsidiaries, and other related documents.
The influences of the internal transactions between the company & its subsidiaries, and its
subsidiaries themselves on the consolidated balance sheet, consolidated profit statement,
consolidated cash flow statement & consolidated statement of changes in owner’s equity will be
counteracted at the preparation of the consolidated financial statements.
If the current losses of a subsidiary’s minority shareholders exceed their ownership interests
gained at the beginning of the subsidiary, and there are no articles or agreements declaring that the46
minority shareholders should be obligated to bear all of these, the exceeded part shall be offset
against the ownership interests of the company. If there are articles or agreements declaring that
the minority shareholders should bear all of these, the exceeded part shall be offset against the
interests of the minority shareholders.
In the report period, If the subsidiary is added through the business combination under the same
control, the beginning balance of the consolidated balance sheet shall be adjusted. The incomes,
expenses & profits of the subsidiary incurred from the beginning of the current period to the end
of the reporting period shall be included into the consolidated profit statement. The cash flow from
the beginning of the current period to the end of the reporting period shall be included into the
consolidated cash flow statement.
In the report period, If the subsidiary is added through the business combination not under the
same control, the beginning balance of the consolidated balance sheet shall not be adjusted. The
incomes, expenses & profits of the subsidiary incurred from the acquisition date to the end of the
reporting period shall be included into the consolidated profit statement. The cash flow from the
acquisition date to the end of the reporting period shall be included into the consolidated cash flow
statement.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits
incurred from the beginning of the subsidiary to the disposal date shall be included into the
consolidated profit statement. The cash flow from the beginning of the subsidiary to the disposal
date shall be included into the consolidated cash flow statement.
（7） Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time as
cash when preparing the cash flow statement.which are featured with short term (expire within 3
months since purchased), high liquidity, easy to convert to know cash, low in risk of value change,
could be recognized as cash equivalents. Equity investment are not recognized as cash equivalents.
（8）Foreign Currency Transaction
The foreign currency transaction uses the spot rate at the time of the transaction as the exchange
rate to convert the currency into CNY for keeping account.
The balances of the foreign currency monetary items shall be converted according to the spot rate
on the balance sheet date. Except that the exchange balances on the foreign currency borrowings
for expenses on the assets eligible for capitalization shall be dealt according to the principle of
loan expense capitalization, all the other exchange balances shall be included into the profits &
losses at the current period. The foreign currency non-monetary items measured in historical costs
shall still be converted according to the spot rate at the time of the transaction. Their account
standard money amounts shall not be changed. The foreign currency non-monetary items
measured in fair values shall be converted according to the spot rate on the recognition date of the
fair values. The exchange balances incurred accordingly shall be recorded into the profits & losses
at the current period or the additional paid-in capital.
（9）Financial tools47
1. Categories of financial Tools
The Company divides the financial assets into four categories: financial assets measured at fair
value and their variations are recognized as current gain/loss, including trade financial assets or
financial liabilities and recognized directly as financial assets measured at fair value and their
variations are recognized as current gain/loss; Investment hold till expiration; loans and account
receivable; saleable financial assets .The company divides the financial liabilities into two
categories: financial liabilities measured at fair value and their variations are recognized as current
gain/loss; other financial liabilities.
2. Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as
current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The
fair value will be adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment
gains, and thus adjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade
expenses is recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is
adopted when the difference between the actual rate and face rate is minor) during the period of
holding, and accounted as investment gains. Actual rate is recognized when obtained, and is not
changed in the predictable holding period or applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as
investment gains.
If the company sells or reclassifies large-amount due investments before the expired date (large
amount refers to comparing with the amount before the selling or reclassifying the investments),
the company will reclassify the rest of the investments as financial assets for sale, and in the
current accounting period or within two complete accounting years, no financial assets will be
classified as holding due assets, except for the following situations: the sale date or reclassification
date is close to the expired date of the investment (such as three months before the expired), and
the change of interest rate has no significant influence on the fair value of the investment; after all
the initial principal is mostly recovered according to periodic payments or repay in advance
regulated in the contract, the rest part will be sold or reclassified; the sale and reclassification is
caused by the independent events which are uncontrollable
and unexpected and will not happen any more.
(3) Account receivable
The receivable debts of selling goods or providing services, and the credits of other company hold
by the company not including the debt which has price in active market, including accounts48
receivable, notes receivable, prepaid accounts, other receivables, long-term receivables, etc. The
contract or agreement price charging from purchaser should be taken as the initial confirmation
amount; if it has the nature of financing, it should be confirmed according its current value.
When retrieved or disposed of, the difference between the actual received amount and the book
value is accounted as current gain/loss.
(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) plus the related trade expenses is recognized as initial amount when
obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment gains.
Change of fair value is accounted as capital reserves (other capital reserves) at the end of term.
When disposed, the difference between the obtained price and book value is accounted as
investment gains. Meanwhile, the corresponding part of accumulated change of fair value
accounted as owners’ equity is transferred into investment gain/loss.
(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade
expenses. Successive measurement will be on the basis of amortized costs.
3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is
terminated if almost all risks and rewards attached to the asset have been transferred to the
acceptor. If retain all the risks and rewards of ownership of financial assets, the financial assets
can be confirmed.
When determine whether the transfer of financial assets meet the conditions of confirmation of the
above financial assets, the principle of substance being more important than form should be
adopted. The transfer of financial assets can be divided into overall transfer and part transfer of
financial assets. If the transfer of financial assets meet the conditions of terminating confirmation,
the following the difference of the two amounts will be included in the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair
value originally accounted as owners’ equity (when the asset to be transposed is saleable financial
asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book value
of the transferred financial assts, the difference between the confirmed part and the unconfirmed
part (in this case, the service assets retained should be deemed as the part of unconfirmed financial
assets), should be amortized in accordance with their relative fair value, and the difference
between the following two amount should be included current profit and loss:
① Book value of the confirmed part;
②All fair values of financial assets and financial liabilities are recognized with reference to the
price in the active market.
If the transfer of financial assets does not meet the conditions of terminating
confirmation, the financial assets should be confirmed again, the prices received will
recognized as financial liabilities.49
4.the conditions to stopping the financial liabilities
The obligation of financial liabilities are already cancelled which should be stopped confirming
the financial liability or the part of it. Our company could stop confirming the currently financial
liability and begin to confirm the newly financial liability if the loaner made an agreement that
they would assume the new way of financial liability which replace the current one, and make sure
the newly financial liability is totally different from the old one in contract with our company.
Stop admitting the financial liability or a part of it, and at mean time we could admit the newly
financial liability which is in new insertions of contract as the newly financial liability if the
current financial liability has been revised.
Stop admitting the balance of value of financial liability and consideration (Including the roll-out
of non-cash assets or financial liabilities) which could be consider as current profits and losses.
Stop and continue admitting a part of value, and distribute the value of financial liability, if our
company repurchased the part of financial liability. And the balance of value of which distributed
to the part of stopping admitting and paid (Including the roll-out of non-cash assets or financial
liabilities) which could be consider as current profits and losses.
5.Recognition basis of financial assets and financial liabilities
All fair values of financial assets and financial liabilities are recognized with reference to the price
in the active market（Using valuation technique, etc）.
6. Impairment provision for financial assets
①Impairment provision for financial assets for sale:
If the fair value of financial assets for sale greatly drops at the end of the period, or after
considering all the relevant factors and expecting decrease trend is non-temporary, the impairment
should be confirmed, and the accumulative loss formed by the decrease of fair value of owner’s
equity originally included should be transferred out altogether and confirmed as impairment loss.
②Holding the impairment provision of expired investments:
The measurement of holding the impairment provision of expired investment will be according to
the method of the measurement of impairment provision for receivables.
（10）Accounts Receivable
1. Recognition Standard and Counting & Drawing Method of Bad Debt Reserves for the Accounts
Receivable Whose Single Amount Is Significant
Recognition standard of the accounts receivable whose single amount is significant: the accounts
receivable whose single amount is over RMB 1 million & accounts for over 10% of the accounts
receivable amount.
Counting & drawing method of bad debt reserves for the accounts receivable whose single amount
is significant: Conduct the devalue test separately. Set up the bad debt reserve according to the50
shortfall of the present value of expected future cash flows against its carrying amount and record
it into the profits & losses at the current period.
2. Recognition Basis and Counting & Drawing Method of Bad Debt Reserves for the Accounts
Receivable Whose Single Amount Is not Significant but Whose Portfolio Risk Is Significant after
Being Grouped by Credit Risk Features
Recognition basis of credit risk feature portfolio: the accounts receivable under 5 years of age
which are not significant without any business connections any more.
Counting & drawing method according to credit risk feature portfolio: Conduct the devalue test
separately. Set up the bad debt reserve according to the shortfall of the present value of expected
future cash flows against its carrying amount and record it into the profits & losses at the current
period.
3. Counting & Drawing Method of Bad Debt Reserves for the Other Accounts Receivable besides
Those Whose Single Amount Is Significant & Those Whose Single Amount Is not Significant but
Whose Portfolio Risk Is Significant after Being Grouped by Credit Risk Features
The company adopts the account receivable aging analysis method for the bad debt reserves for
the other accounts receivable besides those whose single amount is significant & those whose
single amount is not significant but whose portfolio risk is significant after being grouped by
credit risk features.
Based on the actual loss ratio of the anterior-periods receivable accounts with similar credit risks,
with combination of actual situations, the company recognizes the following proportions of bad
debt reserves:
Age Resere proportion for
accounts receivable (%)
Reserve Proportion for other
receivables(%)
Within 1 year(Including 1
year)
0 0
1－2 years 10 10
2－3 years 30 30
3－4 years 50 50
4－5 years 90 90
Over 5 years 100 10051
The counting & drawing of bad debt reserves shall be based on the ending balance of the accounts
receivable after the deduction of the incomings & outgoings between the subsidiaries within the
scope of consolidated report forms.
（11）Investories
1.Investories class
The company’s stocks can be classified as: raw materials, inventory goods, low-value
consumables & other materials, etc.
2. Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method or
the first-in first-out method.
3. Recognition Basis of Inventories’ Net Realizable Values and Counting &
Drawing Method of Obsolete Inventory Reserves
After taking stock at the end of the period, the company sets up or adjusts the obsolete inventory
reserves according to the lower of the two indexes – the inventory costs or the inventories’ net
realizable values.
In normal production & management, the net realizable values of the merchandise inventories
including finished goods, inventory goods, etc. which are directly for sale shall be recognized by
deducting the estimated selling expenses & relevant taxes from the estimated selling price of the
inventories. In normal production & management, the net realizable values of the material
inventories which need to be processed shall be recognized by deducting the estimated processing
costs, the estimated selling expenses & relevant taxes from the estimated selling price of the
finished goods which have been made of the materials. The net realizable values of the inventories
for carrying out sales contracts or service contracts shall be calculated based on the contract prices.
If the inventory number is greater than the ordering amount of the sales contract, the net values of
the extra inventories shall be calculated based on the common selling prices.
4. Inventory System
Adopts the Perpetual Inventory System
5. Amortizing Method for Low-Value Consumables
The low-value consumables shall be based on the one-off amortization method.
（12） Long-term equity investment
1. Initial measurement
（1）Long-term equity investment formed by Consolidation
For Consolidation 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 consolidation.52
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
Consolidation are included in the gain/loss account of the current term.
Business combination not under the same control: The combination costs shall be the fair values,
on the acquisition date, of the assets paid, the liabilities incurred or assumed and the equity
securities issued by the acquirer in exchange for the control on the acquiree & all relevant direct
costs incurred for the business combination. For a business combination realized by two or more
transactions of exchange, the combination costs shall be the summation of the costs of all separate
transactions. Where any future event that is likely to affect the combination costs is stipulated in
the combination contract or agreement, if it is likely to occur and its effects on the combination
costs can be measured reliably, the amount shall also be recorded into the combination costs.
(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.
2. Follow-up Measurements & Recognitions of Profits or Losses
（1）Follow-up measurement
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 long-term equity investment that has joint control or significant influences over the invested
entity shall be measured by employing the equity method. If the initial cost is more than the
investing enterprise' attributable share of the fair value of the invested entity's identifiable net
assets for the investment, the initial cost of the long-term equity investment may not be adjusted.
If the initial cost is less than the investing enterprise' attributable share of the fair value of the53
invested entity's identifiable net assets for the investment, the difference shall be recorded into the
profits & losses at the current period.
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）Recognition of Profits or Losses
Employing the cost method, besides acquiring the actual payment for investing or the dividends /
profits which have already been declared but not distributed yet, the company shall recognize its
current investment income by enjoying the dividends / profits declared to be distributed by the
invested entity.
The investment income Recognition 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.
(3) Recognition Basis for the Joint Control & the Significant Influence over the Invested
Entity
The control over an economic activity in accordance with the contracts and agreements, which
does not exist unless the investing parties of the economic activity with one an assent on sharing
the control power over the relevant important financial & operating decisions, shall be recognized
as the joint control together with other parties over the invested entity. The power to participate in
making decisions on the financial & operating policies of a company, but not to control or to do
joint control together with other parties over the formulation of these policies shall be recognized
as the significant influence of the investing party on the invested entity.
(4) Test Method for Impairment and Counting & Drawing Method for Impairment
Reserves
As to a long-term equity investment with no significant influence, if there is no offer in the active
market for it and its fair value cannot be reliably measured, its impairment loss shall be recognized
according to the difference between its carrying amount & the current value recognized by
discounting the future cash flow according to the current market return similar to the financial
asset.54
Besides the business reputation formed by the business combination, where the measurement
results of the removable amounts show that the receivable amount of any other long-term equity
investment is lower than its carrying value, the difference shall be recognized as the impairment
loss.
No matter whether there is any sign of possible assets impairment, the business reputation formed
by the business combination shall be subject to impairment test every year.
Once any loss of the long-term equity investment impairment is recognized, it shall not be
switched back any more.
（13）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.
（14）Investment Real Estates
The term "investment real estates" refers to the real estates held for generating rent and / or capital
appreciation, including the right to use any land which has already been rented, the right to use
any land which is held and prepared for transfer after appreciation & the right to use any building
which has already been rented.
The company shall make a measurement to the investment real estate through the cost pattern. The
company shall adopt the same depreciation policy as its fixed assets for the investment real estates
measured by the cost pattern – buildings for renting & the same amortization policy as its
intangible assets for the right to use any land for renting. Where any evidence shows that there is
possible impairment, the recoverable amount of the fixed assets shall be estimated. Where the
recoverable amount is lower than its carrying value, the corresponding impairment loss shall be
recognized. Once any loss of the investment real estate impairment is recognized, it shall not be
switched back any more.
（15）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 assets55
Fixed assets are categorized as: Guangfo Expressway, Fokai Expressway, Jiujiang Bridge, house
and building, Macnineryand equipment, vehicles, electronic and other equipment.
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.
The company adopts the straight line method for the depreciation of fixed assets except highways
& bridges, and recognizes the depreciation rate according to the fixed asset group, expected useful
life & the expected net salvage value rate.
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%
3. Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset
Impairment Reserves
The company shall, at the end of each period, make a judgment on whether there is any sign of
possible fixed assets impairment.
Where any evidence shows that there is possible fixed assets impairment, the recoverable amount56
of the fixed assets shall be estimated. The recoverable amount shall be determined in light of the
higher one of the net amount of the fair value of the fixed assets minus the disposal expenses &
the current value of the expected future cash flow of the fixed assets.
Where a fixed asset's recoverable amount is lower than its carrying value, the carrying value of the
fixed asset shall be recorded down to the recoverable amount, and the reduced amount shall be
recognized as the loss of the fixed asset impairment and be recorded into the profits & losses at the
current period. Simultaneously, the fixed asset impairment reserve shall be made accordingly.
After the loss of the fixed asset impairment has been recognized, the depreciation expense of the
impaired fixed asset shall be adjusted accordingly in the future period so as to amortize the
post-adjustment carrying value of the fixed asset systematically (deducting the expected net
salvage value) within the residual service life of the fixed asset.
Once any loss of the fixed asset impairment is recognized, it shall not be switched back in the
future accounting periods.
Where there is any evidence indicating a possible impairment of a fixed asset, the company shall,
on the basis of a single fixed asset, estimate the recoverable amount. Where it is difficult to do so,
it shall determine the recoverable amount of the group fixed assets on the basis of the fixed asset
group to which the fixed asset belongs.
（16）Calculation of Construction-in-process
1. Calculation of Construction-in-process
The constructions in process are classified & accounted according to the established projects.
2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets
All the expenditures that bring the construction in process to the expected condition for use shall
be the credit value of the fixed asset. If the fixed asset construction in process has already reached
the expected condition for use, but hasn’t been made the final account; it shall be carried forward
to a fixed asset according to its estimated value based on the budget, cost or actual cost of the
construction starting from the date when it reaches the expected condition for use, and the fixed
asset shall be depreciated according to the company’s depreciation policy for fixed assets. After
the final account has been made, the original provisional estimated value shall be adjusted
according to the actual cost, but the depreciation which has originally been counted & drawn shall
not be adjusted.
.3 Test Method for Construction-in-Process Impairment and Counting & Drawing Method
for Construction-in-Process Impairment Reserves
The company shall, at the end of each period, make a judgment on whether there is any sign of
possible constructions-in-process impairment.
Where any evidence shows that there is possible constructions-in-process impairment, the
recoverable amount of the constructions-in-process shall be estimated. The recoverable amount
shall be determined in light of the higher one of the net amount of the fair value of the
constructions-in-process minus the disposal expenses & the current value of the expected future57
cash flow of the constructions-in-process.
Where a construction-in-process's recoverable amount is lower than its carrying value, the
carrying value of the construction-in-process shall be recorded down to the recoverable amount,
and the reduced amount shall be recognized as the loss of the construction-in-process impairment
and be recorded into the profits & losses at the current period. Simultaneously, the
construction-in-process impairment reserve shall be made accordingly.
Once any loss of the construction-in-process impairment is recognized, it shall not be switched
back in the future accounting periods.
Where there is any evidence indicating a possible impairment of a construction-in-process, the
company shall, on the basis of a single construction-in-process, estimate the recoverable amount.
Where it is difficult to do so, it shall determine the recoverable amount of the group
constructions-in-process on the basis of the construction-in-process group to which the
construction-in-process belongs.
（17）Loan expenses
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production
of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related
asset. Other borrowing expenses are recognized as expenses according to the occurred amount,
and accounted into gain/loss of current term.
The assets meeting capital conditions refer to the fixed assets, investment real estates and
inventories which are constructed or produced in a long time to reach the predicted use or sale
state.
When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct
or produce the assets which meet the capitalization conditions, and expend by cash or transferring
non-cash assets or bearing interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state
have begun.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop
of capitalization, the period of the break of capitalization of Loan costs is not included.
When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used
individually, the capitalization of the loan costs of the assets should be stopped.
Where each part of a asset under acquisition and construction or production is completed
separately and is ready for use or sale during the continuing construction of other parts, but it can
not be used or sold until the asset is entirely completed, the capitalization of the borrowing costs
shall be ceased when the asset is completed entirely.
.3 Capitalization Suspension Period58
Where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the
borrowing costs shall be suspended. If the interruption is a necessary step for making the qualified
asset under acquisition and construction or production ready for the intended use or sale, the
capitalization of the borrowing costs shall continue. The borrowing costs incurred during such
period shall be recorded into the profits & losses at the current period, till the acquisition and
construction or production of the asset restarts.
4. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the
asset which satisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less
weighted average of specialized loan part of asset expense multiplies capitalizing rate of common
Loan occupied. Capitalizing rate is determined according to weighted average interest of common
Loan.
If the Loan has discount or premium, the discount or premium amount should be determined
according to actual interests in each accounting period. The interest amount should be adjusted in
each period.
（18）Intangible assets
1. The valuation methods of intangible assets
(1)The initial measurement is conducted according to the actual cost when the
intangible assets are acquired
The cost of the purchased intangible assets includes its buying price,relevant tax and the othe
expenses that are directly attributed to this assets meeting its predetermined objective and other
expenses that occur.The buying price of intangible assets is over the deferred payment under
normal credit conditions,which has the nature of financing materially,the cost of intangible assets
is determined on the basis of the present value of its buying price.
We acquire the mortgaged intangible assets from debtors through debt restructuring and determine
the entry value on the basis of the fair value of the intangible assets,we have the balance between
the book value of debt restructuring and the fair value of intangible assets used for mortagage
charged to the current profit and loss.
The entry value of the non-monetary assets exchanged into by the non-monetary assets are
determined on the basis of the fair value of the assets exchanged out if the exchange of
non-monetary assets has commercial nature and the assets exchanged into or out can be reliably
measured,unless there is authentic evidence indicating that the fair value of assets exchanged into
are more reliable;if the non-monetary assets that cannot meet the above prerequisite use the book
value of the assets exchanged out and relevant taxes payable as the cost of the non-monetary
assets, the profit and loss is not confirmed.
The entry value of the intangible assets acquired by the absorption merger under the control of one
company is determined by the book value of the merged party;the entry value of the intangible
assets acquired by the absorption merger that is not under the control of one company is
determined by the fair value.
The cost of the intangible assets developed internally includes the materials consumed in
developing the assets,cost of service,registration fees,othe patent used in developing,amortization59
of concession and interest charges meeting the capitalization conditions and othe direct costs that
occur before the intangible assets meeting the predetermined objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible
assets.
The intangible assets that have limited serviceable life are amortized by the straight-line method
during the period when the assets can bring about economic interests;The intangible assets are
deemed as uncertain serviceable life and are not amortized if it is impossible to expect the period
when the assets could bring about economic interests.
2. Provision for the depreciation of value of the intangible assets
The intangible assets that have certain serviceable life are conducted at the ending with the test of
depreciation of value if the assets indicate obviously that those are depreciating
For conducting a test of depreciation of value of the intangible assets,it needs to estimate the
recoverable amount of the assets.The recoverable amount is determined by the higher between the
net amount obtained through the fair value of intangible assets minus settlement chanrges and the
present value of the future cash flow expected by the intangible assets.
When the recoverable amount of intangible assets is below their book value,the book value of
intangible assets is written down to the recoverable amount and the amount written down is
confirmed as the loss of depreciation of value of intangible assets and is charged to the current
profit and loss,while the corresponding provision for the depreciation of value of intangible assets
is made.
The depletion of the depreciation of value of intangible assets or the amortization charge in the
future period will be adjusted accordingly after confirmation of the loss of the depreciation of
value of intangible assets so that it can systematically allocate the book value of intangible assets
adjusted in the residual serviceable life of intangible assets(deduction of anticipated net value).
Upon confirmation of the loss of the depreciation of value of intangible assets,the loss will not be
reversed in the subsequent accounting period any longer.
The Company estimates its recoverable amount on the basis of the single intangible assets if there
is indication that possible loss of depreciation of one item of intangible assets.The Company uses
intangible assets belonging to the capital group as a basis to confirm the recoverable amount of
intangible assets.
（19）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.
（20）Bond payable60
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.
（21）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 the
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.
（22）Government subsidies
1.Type analyse
Government subsidies mean that the Company free of charge acquires the monetary assets and the
non-monetary assets.Government subsidies can be classified into capital-related government
subsidies and earnings-related one.
2.The methods of accounting treatment
The purchasing of the fixed assets,intangible assets and other long-term assets related to
government subsidies are confirmed as deferred revenue, the revenue is in installments charged to
the nonoperating earnings in accordance with the serviceable life of assets built or purchased.
The earning-related government subsidies that are used to compensate the relevant expenses or
loss are confirmed as deferred earnings when the subsidies are acquired, the deferred earnings are
charged to the current nonoperating earnings;When the subsidies are used to compensate the
relevant expenses or loss that occurred,the subsidies are directly charged to the current
nonoperating earnings.
(23)Deferred income tax assets and deferred income tax liabilities61
1. 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.
2.The confirmation basis of deferred income tax liabilities
The Company confirms the temporary differences of the taxable that is not paid in the current and
prior periods as the deferred income tax liabilities.However,the goodwill,the transactions formed
from non-business merger and those will affect either accounting profit or the temporary
differences of the taxable income when the transactions occur are not included in the deferred
income tax liabilities.
（24）Changing of main accounting policies, accounting estimations
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.
(25)Correcting of accounting errors in the prior period
According to the notice from the Financial Supervisors in the Office of Guangdong province
(hereinafter referred to as the Supervisor's Office)stationed by the Ministry of Finance, "on
quality inspection conclusions and the settlement decision of 2008 accounting information from
Guangdong Provincial Expressway Development Co.Ltd " (Guangdong Finance Supervisors
stationed by the Ministry of Finance [2009]No. 87 ), the Company conducted a retrospective
adjustment of prior accounting error proposed by the Office of the Supervisors and made an
announcement to the public and adjusted the financial data in the comparable period when the
Company prepared the 2009 financial statement.
III.Taxation
(I)Turnover tax ans surcharges
1.Turnover tax
Type of taxes Taxable Items Tax ratio
Business tax Toll income 3%
Business tax Gains from rents 5%
Business tax Gains from service providing 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.62
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.
(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%.63
IV.Enterprise Consolidated and Consolidated Financial Statement
（I）Informationof subsidiaries
1.The subsidiary acquired through the establishment or investment and other means.
Unit: RMB
Name of
subsidiary
Type
Registered
address
Business
nature
Registered capital Operating scope
The year end’s
actual amount of
capital investment
Balance of other
essenfaly
constituting net
investment in
subsidiary
Equity
holding
percent
age
Voting
power
（%）
Whe
ther
cons
olida
te
finan
cial
state
ment
Minority
shareholders’ equity
Amount
deduct from
minority
shareholders’
equity
The balance between current
losses assumed by minority
shareholders’ deducted from
owners’ equity belongs to
parent company and the
minority shareholders’
attributable share of owners’
equity at the opening balance
Guangdo
ng
Expresswa
y
Technolog
y
Investmen
t Co.,
Ltd.
Holdi
ng
subsid
iaries
4/F,Guan
dong
Express
way
Builidin
No.83
Baiyun,
Yuexiu ,
Guangzh
ou
Holding
subsidiari
es
100,000,000.00
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
95,920,000.00 100 100 Yes64
Name of
subsidiary
Type
Registered
address
Business
nature
Registered capital Operating scope
The year end’s
actual amount of
capital investment
Balance of other
essenfaly
constituting net
investment in
subsidiary
Equity
holding
percent
age
Voting
power
（%）
Whe
ther
cons
olida
te
finan
cial
state
ment
Minority
shareholders’ equity
Amount
deduct from
minority
shareholders’
equity
The balance between current
losses assumed by minority
shareholders’ deducted from
owners’ equity belongs to
parent company and the
minority shareholders’
attributable share of owners’
equity at the opening balance
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.
(excluding gold, silver,
motor vehicles and
dangerous chemicals)65
2.The Subsidiary through business combination under the same control
Name of
subsidiary
Type
Registered
address
Business
nature
Registered capital Operating scope
The year end’s
actual amount of
capital investment
Balance of other
essenfaly
constituting net
investment in
subsidiary
Equity
holding
percent
age
Voting
power
（%）
Whet
her
cons
olidat
e
finan
cial
state
ment
Minority
shareholders’ equity
Amount
deduct from
minority
shareholders’
equity
The balance between current
losses assumed by minority
shareholders’ deducted from
owners’ equity belongs to
parent company and the
minority shareholders’
attributable share of owners’
equity at the opening balance
Guangfo
Expressway
Co., Ltd.
Holdi
ng
subsi
diarie
s
West
Shabei,
Guangzh
ou
Limited
Liability
Company
(Taiwan,
Hongkong
and Macao
in
cooperation
200,000,000.00
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 75,815,113.04
Guangdong
Fokai
Expressway
Co., Ltd.
Holdi
ng
subsi
diarie
s
No.83
Baiyun
Road,Yu
exiu,
Guangzh
ou
Limited
Liability
Company
1,108,000,000.00
Operation and
management of Fokai
Expressway and its
supporting facilities,
automobile salvage,
maintenance and
cleaning, supply of
automobile parts and
1,579,807,995.45 75 75 Yes 358,605,690.4966
Name of
subsidiary
Type
Registered
address
Business
nature
Registered capital Operating scope
The year end’s
actual amount of
capital investment
Balance of other
essenfaly
constituting net
investment in
subsidiary
Equity
holding
percent
age
Voting
power
（%）
Whet
her
cons
olidat
e
finan
cial
state
ment
Minority
shareholders’ equity
Amount
deduct from
minority
shareholders’
equity
The balance between current
losses assumed by minority
shareholders’ deducted from
owners’ equity belongs to
parent company and the
minority shareholders’
attributable share of owners’
equity at the opening balance
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.
3.The Subsidiaries through business combinations not under the same control67
Name of
subsidiary
Type
Registered
address
Business
nature
Registered capital Operating scope
The year end’s
actual amount of
capital investment
Balance of other
essenfaly
constituting net
investment in
subsidiary
Equity
holding
percent
age
Voting
power
（%）
Whe
ther
cons
olida
te
finan
cial
state
ment
Minority
shareholders’ equity
Amount
deduct from
minority
shareholders’
equity
The balance between current
losses assumed by minority
shareholders’ deducted from
owners’ equity belongs to
parent company and the
minority shareholders’
attributable share of owners’
equity at the opening balance
Guangzho
u Putian
Zhongzhi
Owne
d
subsi
diary
of a
subsi
diary
2011,
2012
Room,
No.201
Huangp
u West
Road,
Tianhe
District,
Guangz
hou
Limited
Liability
Company
5,000,000.00
Research and
development of
electronic
products and
technical
service.
Wholesale
trade.
1.00 3,000,000.00 60 60 No68
(II)There is no business entities sharing the controlling power through specific purpose subjects or
by entrusted with operation or by leasing in the current period
（III）There is no change of scope of consolidated in the current periodChange of scope of
consolidated
（IV）The subjects newly taken into the consolidation range in the current and the subjects not
taken into the consolidation range any longer in the current
1.There is no business entities that are subsidies newly taken into the consolidation range, that
have specific purpose subjects or that are entrusted with operation or by leasing forming the
controlling power in the current
2. The business entities that are not taken into the consolidation range any longer, that have
specific purpose subjects or that are entrusted with operation or by leasing forming the controlling
power in the current.
V. Notes to the major items of consolidated financial stateme
（I）Monetary Capital
Amount in year-end Amount in year-begin
Items Foreign
currency
Exchang
e rate
RMB
Foreign
currency
Exchang
e rate
RMB
Cash
RMB 112,723.48 331,104.12
HKD
Subtotal 112,723.48 331,104.12
Bank deposit
RMB 596,467,709.03 217,935,978.14
HKD 465,260.19 0.8724 409,652.29 483,566.25 0.8805 425,770.41
Subtotal 596,877,361.32 218,361,748.55
Other currency
RMB 409,652.29 62,142.36
HKD
Subtotal 409,652.29 62,142.36
Total 597,399,737.09 218,754,995.03
Which restricted the monetary funds as follows：
Items Amount in year-end Amount in year-begin
Tolls clearing account funds 12,382,231.81 2,674,425.8769
Total 12,382,231.81 2,674,425.87
（2）Account receivable
1.Type analyse.
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo
rtio(
%)
Amount Propo
rtio(
%)
Amount Propo
rtio(
%)
Amount Propo
rtio(
%)
Individually
significant accounts
receivable
23,777,626.01 92.53 11,082,228.16 93.12
Account
receivablewhich are
not individually
significant but are
assessed at high risk
level through credit
risk combination
Other non-material
receivables
1,918,585.43 7.47 27,800.49 100 819,314.35 6.88 27,800.49 100
Total 25,696,211.44 100 27,800.49 100 11,901,542.51 100 27,800.49 100
2.There is no significant amount or the test of depreciation of value of bad debts provision of
accounts receivable at the ending.
3.There is no provision for bad debts in full or the provision for bad debts is much high while the
debts have been fully recovered or reversed,or no recovery or reversal of a large proportion of
accounts receivable in the current.
4.There is no recovery of accounts receivable through restructuring in the current.
5.There is no accounts receivable that were written off in the current.
6.There was no account receivable due from shareholders with more than 5% (including 5%) of
the voting shres of the company.
7.The top 5 arrearage in accounts receivable
Name
Relationship
with the
Company
Amount Aging
Proportion to
total accounts
receivalbe(%)
Guangdong Union Electric toll Co.,
Ltd.
No
relationship
23,777,626.01 Within 1 year 92.53
Guangzhou Zhongqiu advertising
Co., Ltd.
No relationship 891,672.11 Within 1 year 3.47
Zhaoqing Yuezhao Highway Co., Ltd. Jiont venture 208,851.50 Within 1 year 0.81
Guangzhou Xinjushu Culture
Co., Ltd.
No relationship 180,000.00 Within 1 year 0.70
Shenzhen Madison Advertising Co.,
Ltd.
No relationship 156,000.00 Within 1 year 0.6170
Name
Relationship
with the
Company
Amount Aging
Proportion to
total accounts
receivalbe(%)
Total 25,214,149.62 98.12
8. The situation on the accounts receivable from the affiliated parties
Name
Relationship
with the
Company
Amount Aging
Proportion to
total accounts
receivalbe(%)
Zhaoqing Yuezhao Highway Co.,
Ltd.
Jiont venture 208,851.50 Within 1 year 0.81
Guangdong Zhanjiang Bay
Bridge Co., Ltd.
Be controlled
by the same
parent
company
19,756.00 Within 1 year 0.08
Guangdong Lulutong Co.,Ltd.
Be controlled
by the same
parent
company
18,004.85 Within 1 year 0.07
Total 246,612.35 0.96
9.There is no accounts receivable that have been terminated to confirm in the current.
10.There is no accounts receivable as a object of securitization in the current.
（3）Prepayment
1.Age analysis
Balance in year-end Balance in year-begin
Age
Amount Proportion Amount Proportion
Within 1 year 364,161,844.77 99.95 292,135,576.87 99.90
1－2 years 169,738.00 0.05 299,738.00 0.10
2－3 years
Over 3 years
Total 364,331,582.77 100.00 292,435,314.87 100.0071
2. The top five companies according to the Prepayment
Name
Relationship with
the Company
Amount Time
Reasons for
pending
accounts
Guangdong Nanyue logistics
Co., Ltd.
controlled by the
same parent
company
143,352,557.47
Within 1
year
Pending
accounts
Guangdong Changda Highway
Engineering Co., Ltd.
controlled by the
same parent
company
95,279,811.30
Within 1
year
Pending
accounts
China Railway 12 Bureau Group
Co., Ltd
No relationship 31,370,213.00
Within 1
year
Pending
accounts
Guangdong Guanyueqiao Co.,
Ltd.
controlled by the
same parent
company
29,487,527.00
Within 1
year
Pending
accounts
Guangdong Jingtong Highway
Engineering Construction Group
Co., Ltd.
controlled by the
same parent
company
22,560,679.00
Within 1
year
Pending
accounts
Total 322,050,787.77
3.There was no Prepayment due from shareholders with nore than 5% (including 5%) of the
voting shares of the company.
4.Prepayment from related parties
Name
Relationship with
the Company
Amount Proportion (%)
Guangdong Nanyue logistics Co., Ltd.
controlled by the
same parent
company
143,352,557.47 39.35
Guangdong Changda Highway
Engineering Co., Ltd.
controlled by the
same parent
company
95,279,811.30 26.15
Guangdong Guanyueqiao Co., Ltd.
controlled by the
same parent
company
29,487,527.00 8.09
Guangdong Jingtong Highway
Engineering Construction Group Co.,
Ltd.
controlled by the
same parent
company
22,560,679.00 6.19
Guangdong Communication
Development Co., Ltd.
controlled by the
same parent
805,868.80 0.2272
Name
Relationship with
the Company
Amount Proportion (%)
company
Total 291,486,443.57 80.00
(4) Dividends receivable
Items
Amount at
year
beginning
Increase at this
period
Decrease at this
period
Amount at
period end
Reason
s for
not
being
recove
red
Whether
the
relevant
funds
have
signs for
impairme
nt
1.The dividends receivable with
account age less than one year
271,636,280.10 202,177,234.59 69,459,045.51 No
Of which: the dividend of
Shenzhen Huiyan Expressway
Co., Ltd. in 2009
60,000,000.00 60,000,000.00
The dividend of Jungzhu
Expressway Guangzhu station in
2007
113,459,045.51 44,000,000.00 69,459,045.51
No
The dividend of Guangdong
Guanghui Expressway Co., Ltd.
in 2007
73,713,657.27 73,713,657.27
The dividend of Zhaoqing
Yuezhao Highway Co., Ltd. in
2009
24,463,577.32 24,463,577.32
2. The dividends receivable with
account age more than one year
Total 271,636,280.10 202,177,234.59 69,459,045.51
(5) Other recievable
1.Type analyse:
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo
rtio(
%)
Amount Proport
io(%)
Amount Propo
rtio(
%)
Amount Propo
rtio(
%)
Individually
significant accounts
receivable
66,794,504.78 66.81 66,794,504.78 97.58 66,794,504.78 66.90 66,794,504.78 97.58
Account
receivablewhich are
not individually
significant but are73
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo
rtio(
%)
Amount Proport
io(%)
Amount Propo
rtio(
%)
Amount Propo
rtio(
%)
assessed at high risk
level through credit
risk combination
Other
non-materialreceiva
bles
33,184,934.91 33.19 1,659,137.74 2.42 33,054,254.14 33.10 1,659,137.74 2.42
Total 99,979,439.69 100 68,453,642.52 100 99,848,758.92 100 68,453,642.52 100
2. There is no significant amount or the test of depreciation of value of bad debts provision of
accounts receivable at the ending.
Other receivables Book balance Amount of bad debts
Proportion
(%)
Reasons
Kunlun Securities Co., Ltd. 50,973,424.87 50,973,424.87 100.00% Notes 1
Beijing Gelin Enze 12,220,079.91 12,220,079.91 100.00% Notes 2
Guangzhou Putian Zhongzhi 3,601,000.00 3,601,000.00 100.00% Notes 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.74
3.There is no provision for bad debts in full or the provision for bad debts is much high while the
debts have been fully recovered or reversed,or no recovery or reversal of a large proportion of
accounts receivable in the current.There is no recovery of accounts receivable through
restructuring in the current report period.
4.The cancellation after verification on other accounts receivable in the current
5.There was no other receivable due from shareholders with more than 5% (including 5%) of the
voting shares of the Company.
6.The top five companies in the amount of other receivables and the large amount of other nature
and content of receivables at the ending.
Name
Relationship
with the
Company
Amount Aging
The
proportion
of the total
of other
receivables
(%)
Nature or
content
Kunlun Securities Co.,Ltd
The subsidiary of
the Company
holds its 5.74%
stake of Kunlun
50,973,424.87
Over 5
years
50.98
See
“V(5)2,Notes
1
Beijing Gelin Enze Joint venture 12,220,079.91 1-5 years 12.22
See
“V(5)2,Notes
2
The Land Resource Office
of Foshan,Chancheng
Branch
No relationship 7,366,300.00
Within 1
year
7.37
Guarantee
deposit
Guangzhou Putian
Zhongzhi
The controlling
grandson company
3,601,000.00 1-5 years 3.60
See
“V(5)2,Notes
3
Heshan Finance Bureau No relationship 1,835,391.00
Within 1
year
1.84
Guarantee
deposit
Total 75,996,195.78 76.01
7.The accounts receivable from the Related parties75
Name
Relationship with
the Company
Relationship
with the
Company
The proportion
of the total of
other
receivables (%)
Beijing Gelin Enze Joint venture
12,220,079.91 12.22
Guangzhou Putian Zhongzhi
The controlling
grandson company
3,601,000.00 3.60
Beijing Gelin Enze Joint venture
500,000.00 0.50
Guangzhou Putian Zhongzhi Joint venture
250,000.00 0.25
Guangdong Gaoda Property
Development Co., Ltd.
controlled by the
same parent
company
87,000.00 0.09
Guangdong Zhanjiang Bay Bridge Co.,
Ltd.
controlled by the
same parent
company
11,428.86 0.01
Guangdong Xinyue Communication
Investment Co., Ltd.
controlled by the
same parent
company
2,158.60 0.00
Total
16,671,667.37 16.67
8.There is no accounts receivable that have been terminated to confirm in the current.
9.There is no accounts receivable as a object of securitization in the current.
（6）Inventory
1.Type analyse
Balance in year-end Balance Items in year-begin
Book balance
Bad debt
povision
Book Value
Book balance
Bad debt
povision
Book Value76
Balance in year-end Balance Items in year-begin
Book balance
Bad debt
povision
Book Value
Book balance
Bad debt
povision
Book Value
Rew
materials
70,117.88 70,117.88 73,932.41 73,932.41
Other 205,833.88 205,833.88 146,210.50 146,210.50
Total 275,951.76 275,951.76 220,142.91 220,142.91
2. Inventory and inventory depreciation reserves
Decrease in the current period
Type
Balance in
year-begin
Increase in
the current
period
Transferred
back
Reselling
Balance in
year-end
Rew materials
Other
Total78
（7） Information of Joint venture and Associated Enterprise
Name Type
Registered
place
Legal
Representative
Property
Register
capital
Proportion
Voting
proportion
End total assets
End total
Liabilities
End total net assets
Total current
revenues
Current 1. Joint
venture
1.
Guangdong
Guanghui
Expressway
Limited
liability
Company
Guangzhou,
Guangdong
Liu Gangliang
Expressway
Management
2,351,678,000.00 30% 30% 6,422,755,648.13 3,754,880,758.60 2,667,874,889.53 761,208,182.84 299,80
2. Zhaoqing
Yuezhao
Highway
Co., Ltd.
Limited
liability
Company
Zhaoqing ,
Guangdong
Wang Jiachen
Expressway
Management
818,300,000.00 25% 25% 2,773,344,536.06 1,990,761,600.64 782,582,935.42 123,376,469.70 41,354,718.66
3. Beijing
Gelin Enze
Limited
liability
Company
Beijing Wang Jianji
Organic
fertilizer
production
and sell
20,000,000.00 35% 35% 25,925,805.89 16,707,626.85 9,218,179.04
2. Affiliated
company
1.Shenzhen
Huiyan
Expressway
Limited
liability
Company
Shenzhen,
Guangdong Xu Xiaoyang
Expressway
Management 36,000,000.00 33.33% 33.33% 474,466,718.98 38,016,219.65 436,450,499.33 157,978,521.52 79,981,325.25
2.Guangdong
Maozhan
Expressway
Co., Ltd.
Limited
liability
Company
Guangzhou,
Guangdong
Li Jinfeng
Expressway
Management
1,120,000,000.00 20% 20% 2,808,445,472.91 2,128,602,831.46 679,842,641.45 211,664,938.00 52,790,651.90
3.Jingzhu
Exprwssway
Guanzhu
Limited
liability
Company
Guangzhou,
Guangdong
Lu Yaxing
Expressway
Management
580,000,000.00 20% 20% 4,343,908,155.79 3,025,248,976.71 1,318,659,179.08 580,258,516.99 350,440,462.19
4.Guangdong
Jiangzhong
Limited
liability
Guangzhou,
Guangdong Lu Yaxing
Expressway
Management
1,045,000,000.00 15% 15% 2,891,910,580.15 1,942,155,739.19 949,754,840.96 153,930,837.49 24,434,986.3479
Name Type
Registered
place
Legal
Representative
Property
Register
capital
Proportion
Voting
proportion
End total assets
End total
Liabilities
End total net assets
Total current
revenues
Current Expressway
Co., Ltd.
Company
5.Ganzhou
Kangda
Expressway
Other
Limited
liability
Company
Ganzhou,
Jiangxi
Yao Diming
Expressway
Management 600,000,000.00 30% 30% 1,871,698,819.75 1,565,032,214.75 306,666,605.00 14,906,369.00 -51,729,712
6.Ganzhou
Gankang
Expressway
Limited
liability
Company
Ganzhou,
Jiangxi Liu Zequan
Expressway
Management 700,000,000.00 30% 30% 2,250,945,156.42 1,550,945,156.42 700,000,000.00
7.Guangdong
Guangle
Expressway
Limited
liability
Company
Guangzhou,
Guangdong
Li Jinfeng
Expressway
Management
500,000,000.00 30% 30% 2,638,699,419.91 1,988,701,919.91 649,997,500.0080
(8)Long- term s equity investment
1.Long- term s equity investment
Name
Account
method
Initial amount
Balance in
year-begin
Increase/decrease
Balance in
year-end
Sharehol
dding
percentag
e(%)
Voting
percentag
e (%)
Instruction
Impairment
proision
Current
provision
Current cash
dividend
Guangdong Guanghui Expressway Co.,
Ltd.
Equity
method 705,503,400.00 784,133,616.22 16,228,850.65 800,362,466.87 30% 30% 73,713,657.27
Zhaoqing Yuezhao Highway Co.,
Ltd.
Equity
method 183,690,616.22 225,653,566.64 -14,487,713.63 211,165,853.01 25% 25% 24,463,577.32
Beijing Gelin Enze Equity
method 6,614,483.90 35% 35%
Shenzhen Huiyan Expressway Equity
method 14,024,586.42 195,764,733.87 -34,050,397.81 161,714,336.06 33.33% 33.33% 60,000,000.00
Guangdong Maozhan Expressway Equity
method 224,000,000.00 125,410,397.91 10,558,130.38 135,968,528.29 20% 20%
Jingzhu Exprwssway Guanzhu Equity
method 66,779,449.38 464,974,371.27 -47,237,195.93 417,737,175.34 20% 20% 113,459,045.51
Guangdong Jiangzhong
Expressway Co., Ltd.
Equity
method 156,750,000.00 138,797,978.21 3,665,247.95 142,463,226.16 15% 15%
Ganzhou Kangda Expressway
Equity
method 165,820,322.53 155,323,069.64 -16,306,894.58 139,016,175.06 30% 30%
Ganzhou Gankang Expressway
Co., Ltd.
Equity
method 210,000,000.00 165,000,000.00 45,000,000.00 210,000,000.00 30% 30%
Guangdong Guangle Expressway Equity
method 339,997,500.00 30,000,000.00 309,997,500.00 339,997,500.00 30% 30%
Subtotal 2,073,180,358.45 2,285,057,733.76 273,367,527.03 2,558,425,260.79 271,636,280.10
Huazheng Assets Management Co.
Ltd.(Notes 1)
Cost
method 1,620,000.00 1,620,000.00 1,620,000.00 0.54% 0.54% 1,393,200.00
Huaxia Securities Co., Ltd.(Notes
2)
Cost
method 5,400,000.00 5,400,000.00 5,400,000.00 0.27% 0.27% 5,400,000.00
Kunlun Securities Co., Ltd.(Notes
3)
Cost
method
30,000,000.00 30,000,000.00 30,000,000.00 5.74% 5.74% 30,000,000.00
Guangzhou Putian
Zhongzhi(Notes 4)
Cost
method
785,536.35 785,536.35 785,536.35 60% 60% 785,536.3581
China Everbright Bank
Cost
method 528,000,000.00 528,000,000.00 528,000,000.00 0.72% 0.72%
Subtotal 565,805,536.35 565,805,536.35 565,805,536.35 37,578,736.35
Total 2,638,985,894.80 2,850,863,270.11 273,367,527.03 3,124,230,797.14 37,578,736.35 271,636,280.1082
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 in Guangzhou Putian Zhongzhi Technology Industrial Co., Ltd.
（9）Investment real estate
1. measured by the cost of investment real estate
Items
Balance in
year-begin
Increase at this
period
Decrease at
this period
Balance in
year-end
1. Original price 12,664,698.25 12,664,698.25
1.Hoses and building 12,664,698.25 12,664,698.25
2.Land use right
II. Accumulated depriciation 6,156,022.81 268,380.81 6,424,403.62
1.Hoses and building 6,156,022.81 268,380.81 6,424,403.62
2.Land use right
III. Net value 6,508,675.44 268,380.81 6,240,294.63
1.Hoses and building 6,508,675.44 268,380.81 6,240,294.6383
Items
Balance in
year-begin
Increase at this
period
Decrease at
this period
Balance in
year-end
2.Land use right
IV. Impairment privision
1.Hoses and building
2.Land use right
V.Total of book value 6,508,675.44 268,380.81 6,240,294.63
1.Hoses and building 6,508,675.44 268,380.81 6,240,294.63
2.Land use right
Notes 1:The current depreciation and the amortized amount in the investment real
estate is RMB 268,380.81.
Notes 2: The amont of the current impairement in the investment real estate is RMB
0.00.
（ 10） Fixed assets
1. Fixed assets
Items
Balance in
year-begin
Increase at this
period
Decrease at this
period
Balance in
year-end
I.Total of Original price 5,780,744,650.11 20,172,923.51 117,026,724.00 5,683,890,849.62
Including ： Guangfo
Expressway
1,385,589,775.94 3,370,107.24 1,388,959,883.18
Fokai Expressway 3,630,421,541.96 17,428,248.00 3,612,993,293.96
Jiujiang Bridge 322,353,099.76 97,325,000.00 225,028,099.76
House and Building 178,587,489.55 11,727,739.17 190,315,228.72
Machine equipment 21,308,088.84 21,308,088.84
Transportation
Equipment
46,186,918.10 2,727,756.00 2,125,546.00 46,789,128.10
Electricity equipment
and other
196,297,735.96 2,347,321.10 147,930.00 198,497,127.06
II. Total of Accumulated 1,705,492,919.80 157,760,440.82 3,661,211.93 1,859,592,148.6984
Items
Balance in
year-begin
Increase at this
period
Decrease at this
period
Balance in
year-end
depriciation
including ： Guangfo
Expressway
483,827,728.77 61,711,203.10 545,538,931.87
Fokai Expressway 915,017,695.34 73,282,602.38 1,615,277.93 986,685,019.79
Jiujiang Bridge 59,276,529.15 8,082,704.49 67,359,233.64
House and Building 70,266,508.49 4,560,343.30 74,826,851.79
Machine equipment 9,412,549.58 1,199,351.10 10,611,900.68
Transportation Equipment 35,253,754.01 1,255,056.25 1,912,991.40 34,595,818.86
Electricity equipment and
other
132,438,154.46 7,669,180.20 132,942.60 139,974,392.06
III. Total net book value of
fixed assets
4,075,251,730.31 20,172,923.51 271,125,952.89 3,824,298,700.93
including ： Guangfo
Expressway
901,762,047.17 3,370,107.24 61,711,203.10 843,420,951.31
Fokai Expressway 2,715,403,846.62 89,095,572.45 2,626,308,274.17
Jiujiang Bridge 263,076,570.61 105,407,704.49 157,668,866.12
House and Building 108,320,981.06 11,727,739.17 4,560,343.30 115,488,376.93
Machine equipment 11,895,539.26 1,199,351.10 10,696,188.16
Transportation Equipment 10,933,164.09 2,727,756.00 1,467,610.85 12,193,309.24
Electricity equipment and
other
63,859,581.50 2,347,321.10 7,684,167.60 58,522,735.00
IV. Total of Accumulated
depriciation
including ： Guangfo
Expressway
Fokai Expressway
Jiujiang Bridge
House and Building
Machine equipment
Transportation Equipment
V. Total book value of
fixedassets
4,075,251,730.31 20,172,923.51 271,125,952.89 3,824,298,700.93
including ： Guangfo
Expressway
901,762,047.17 3,370,107.24 61,711,203.10 843,420,951.31
Fokai Expressway 2,715,403,846.62 89,095,572.45 2,626,308,274.1785
Items
Balance in
year-begin
Increase at this
period
Decrease at this
period
Balance in
year-end
Jiujiang Bridge 263,076,570.61 105,407,704.49 157,668,866.12
House and Building 108,320,981.06 11,727,739.17 4,560,343.30 115,488,376.93
Machine equipment 11,895,539.26 1,199,351.10 10,696,188.16
Transportation Equipment 10,933,164.09 2,727,756.00 1,467,610.85 12,193,309.24
Electricity equipment and
other
63,859,581.50 2,347,321.10 7,684,167.60 58,522,735.00
Notes 1：The current depreciation amount is RMB 157,760,440.82.
Notes 2：The original price of projects under construction transferred to fixed assets
is RMB 14,806,358.59 .
（ 11） Construction on process
1. Construction on process
Balance in year-begin Balance in year-begin
Items
Book balance
Impai
rment
povi
sion
Book Value Book Balance
Impair
ment
povis
ion
Book Value
1. The period between
Xiebian to Sanbao
extension project of the
Fokai
1,867,840,897.50 1,867,840,897.50 1,361,879,924.46 1,361,879,924.46
2. The comprehensive
maintenance base project
of the Gonghe toll
station in the Fokai
Expressway
11,595,384.17 11,595,384.17
3. The Jiujiang Bridge
specific
construction project
10,081,222.00 10,081,222.00 10,018,262.00 10,018,262.0086
Balance in year-begin Balance in year-begin
Items
Book balance
Impai
rment
povi
sion
Book Value Book Balance
Impair
ment
povis
ion
Book Value
4. The Electrical
improvement project of
the Gonghe toll station
in the Fokai Expressway
3,060,666.00 3,060,666.00 3,060,666.00 3,060,666.00
5.Other project
486,419.35 486,419.35 2,398,867.35 2,398,867.35
Total
1,881,469,204.85 1,881,469,204.85 1,388,953,103.98 1,388,953,103.9888
2. The variation in constructing the engineering project and the progress of important work
Items
Budget
(RMB’00
00)
Balance in
year-begin
Increase at
this period
Transfer to
fixed assets
Other
losses
Engine
er ing
input
account
Progr
ess of
work
Capitalisati
on of
interest
accumulate
Including
：Current
amount of
capitalizat
Capitalisa
tion of
interest
ratio（%）
Source of
funds
Balance in
year-end
Rem
arks
1. The period
between Xiebian
to Sanbao
extension project
of the Fokai
400,200.00 1,361,879,924.46 505,960,973.04 46.67 46.67% 144,634,915.75 45,534,669.71 4.657
Self-fund,l
oan
1,867,840,897.5089
Items
Budget
(RMB’00
00)
Balance in
year-begin
Increase at
this period
Transfer to
fixed assets
Other
losses
Engine
er ing
input
account
Progr
ess of
work
Capitalisati
on of
interest
accumulate
Including
：Current
amount of
capitalizat
Capitalisa
tion of
interest
ratio（%）
Source of
funds
Balance in
year-end
Rem
arks
2. The
comprehensive
maintenance
base project of
the Gonghe toll
station in the
Fokai
Expressway
1,090.86 11,595,384.17 11,595,384.17 106.29 100% Self fund
3. The Jiujiang
Bridge specific
construction
project
2,319.08 10,018,262.00 62,960.00 43.47 95% Self fund 10,081,222.0090
Items
Budget
(RMB’00
00)
Balance in
year-begin
Increase at
this period
Transfer to
fixed assets
Other
losses
Engine
er ing
input
account
Progr
ess of
work
Capitalisati
on of
interest
accumulate
Including
：Current
amount of
capitalizat
Capitalisa
tion of
interest
ratio（%）
Source of
funds
Balance in
year-end
Rem
arks
4. The Electrical
improvement
project of the
Gonghe toll
station in the
Fokai Expressway
371.00 3,060,666.00 82.50 95% Self fund 3,060,666.00
5.Other project
2,398,867.35 1,396,601.69 3,210,974.42 98,075.27 Self fund 486,419.35
Total
1,388,953,103.98 507,420,534.73 14,806,358.59 98,075.27 144,634,915.75 45,534,669.71 1,881,469,204.8592
（12）Intangible assets
Items
Balance in
year-begin
Increase at
this period
Decrease at
this period
Balance in
year-end
I.Total cost 137,877,961.00 137,877,961.00
Jiujiang Bridge management right 66,917,573.76 66,917,573.76
Jiujiang Land Use right 68,402,029.24 68,402,029.24
File Management software 200,000.00 200,000.00
Toll simulation training and
testingsystm
180,000.00 180,000.00
Highways vehicle wireless video
surveillance system software
69,000.00 69,000.00
Office automation system software 480,000.00 480,000.00
Toll system upgrade software 317,700.00 317,700.00
Yayao use right 1,311,658.00 1,311,658.00
II.Total of accumulative amortized 71,535,175.59 3,761,384.58 75,296,560.17
Jiujiang Bridge management right 35,219,760.00 1,760,988.00 36,980,748.00
Jiujiang Land Use right 36,001,080.00 1,800,054.00 37,801,134.00
File Management software 43,333.29 20,000.00 63,333.29
Toll simulation training and
testingsystm
90,300.00 18,000.00 108,300.00
Highways vehicle wireless video
surveillance system software
3,450.00 6,900.00 10,350.00
Office automation system software 8,000.00 48,000.00 56,000.00
Toll system upgrade software 5,295.00 31,770.00 37,065.00
Yayao use right 163,957.30 75,672.58 239,629.88
III.Total lbook value of intangible
assets
66,342,785.41 3,761,384.58 62,581,400.83
Jiujiang Bridge management right 31,697,813.76 1,760,988.00 29,936,825.76
Jiujiang Land Use right 32,400,949.24 1,800,054.00 30,600,895.24
File Management software 156,666.71 20,000.00 136,666.71
Toll simulation training and
testingsystm
89,700.00 18,000.00 71,700.00
Highways vehicle wireless video
surveillance system software
65,550.00 6,900.00 58,650.00
Office automation system software 472,000.00 48,000.00 424,000.00
Toll system upgrade software 312,405.00 31,770.00 280,635.00
Yayao use right 1,147,700.70 75,672.58 1,072,028.12
IV. Total limpairment provision
Jiujiang Bridge management right
Jiujiang Land Use right93
Items
Balance in
year-begin
Increase at
this period
Decrease at
this period
Balance in
year-end
File Management software
Toll simulation training and
testingsystm
Highways vehicle wireless video
surveillance system software
Office automation system software
Toll system upgrade software
Yayao use right
V. Book value Total of intangible
assets
66,342,785.41 3,761,384.58 62,581,400.83
Jiujiang Bridge management right 31,697,813.76 1,760,988.00 29,936,825.76
Jiujiang Land Use right 32,400,949.24 1,800,054.00 30,600,895.24
File Management software 156,666.71 20,000.00 136,666.71
Toll simulation training and
testingsystm
89,700.00 18,000.00 71,700.00
Highways vehicle wireless video
surveillance system software
65,550.00 6,900.00 58,650.00
Office automation system software 472,000.00 48,000.00 424,000.00
Toll system upgrade software 312,405.00 31,770.00 280,635.00
Yayao use right 1,147,700.70 75,672.58 1,072,028.12
Current amortization of RMB 3,761,384.58.
（13）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
Property
insurance 181,567.92 156,350.15 30,261.31 55,479.08
126,088.
84
25 month
Total 181,567.92 156,350.15 30,261.31 55,479.08
126,088.
84
（14）Deferred income tax assets and deferred income tax liability
1. Confirmed the deferred income tax assets and deferred income tax liability
Items Balance in year-end Balance in year-begin
Deferred income tax assets
Timing difference between
accounting and tax
10,000,000.00 10,000,000.00
Subtotal 10,000,000.00 10,000,000.00
Deferred income tax liability94
Timing difference between
accounting and tax
116,588,405.59 115,352,612.14
Subtotal 116,588,405.59 115,352,612.14
2. Unconfirmed deferred income tax assets
Items
Balance in
year-end
Balance in year-begin
Impairment of assets prepares to deduct
timing differences
26,515,044.84 26,515,044.84
Subtotal 26,515,044.84 26,515,044.84
Notes：It has uncertainty to gain the taxable income in future; therefore these
deductible temporary differences have not been confirmed as the deferred tax assets.
3. The amount of temporary differences corresponding to asset projects which make
temporary differences：
Items Balance in year-end
Timing difference between Fixed assets cost 40,000,000.00
Timing difference between accumulated
depreciation
-466,353,622.36
Total -426,353,622.36
（15）Provision for depreciation of assets
Decreased amount in
current period
Items
Provision for
depreciation of
assets
Increase in
this period Switch
back
Switch
cancellati
on
Balance in
year-end
I.Provision for bad debts 68,481,443.01 68,481,443.01
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
37,578,736.35 37,578,736.3595
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.Other
Total 106,060,179.36 106,060,179.36
（16）Short –tem loan
1. Short –tem loan
Items Balance in year-end Balance in year-begin
Pledge loan
Mortgage loan
Guarantee loan
Credit loan 500,000,000.00 654,000,000.00
Total 500,000,000.00 654,000,000.00
（17）Account payable
1.Age analyse
Items Balance in year-end Balance in year-begin
Within 1 year 168,137,074.66 143,699,450.12
1－2 years 12,208.00
2－3 years
Over 3 years 15,306,390.08 15,306,390.0896
Total 183,443,464.74 159,018,048.20
2. There was account payable due from shareholders with more than 5% (including 5%) of the
voting shres of the company：
Name Balance in year-end Balance in year-begin
Guangdong Changda Highway
Engineering Co., Ltd.
45,560,410.22 47,471,604.22
Guangdong Jingtong Enginneering
Construction Group Co., Ltd.
17,509,152.00 1,624,000.00
Guangdong Guanyueluqiao Co., Ltd. 16,035,184.00 19,468,667.00
Guangdong Expressway Co., Ltd. 13,931,764.11 13,728,261.18
Guangdong Communication
Development Company
7,283,943.00 10,377,100.80
Guangdong Hualu communication
Technology Co., Ltd.
1,545,624.00 1,618,891.00
Guangdong Guanghui Expressway
Co.,Ltd.
900,000.00
Guangdong East Thinking
Management Technology
Development Co., Ltd.
207,804.00 207,804.00
Xinyue Communication Investemnt
Co., Ltd.
116,662.64 1,516,312.54
Guangzhou Putian Zhongzhi
Technology Investry Co., Ltd.
99,447.00 99,447.00
Subtotal 103,189,990.97 96,112,087.74
3．High balance account payable over 1 year has listed below：
Debtor Amount Not return
cause
Remark
Guangdong Expressway
Co.,Ltd.
13,728,261.18
Not
settlement
Expansion End Funds and
Xiebian Project Funds
Construction office overhaul 1,578,128.90
Not
settlement
Overhaul project fund
（18）Advance account
1.Age analyse97
Items Balance in year-end Balance in year-begin
Within 1 year 7,054,071.62 7,456,276.76
1－2 years
2－3 years
Over 3 years
Total 7,054,071.62 7,456,276.76
2. There was Advance account due from shareholders with nore than 5% (including 5%)
of the voting shares of the company.
Name Balance in year-end Balance in year-begin
Zhaoqing Yuezhao Highway Co., Ltd. 189,865.00 189,865.00
Guangdong Expressway Co., Ltd. 1,297,905.64 1,599,744.16
Total 1,487,770.64 1,789,609.16
（19）Payable Employee wage
1. Payable Employee wage
Items
Balance in
year-begin
Increase in
this period
Decrease in
this period
Balance in
year-end
1.wage,bonuds,subsidy 4,097,648.73 35,489,883.73 39,225,968.97 361,563.49
2.Employee welfare 2,095,966.21 2,095,966.21
3.Security insurance 27,118.50 7,480,953.67 6,630,953.67 877,118.50
Of which：1．Medical insurance 2,288,318.22 2,288,318.22
2．Basic old-age insurance 4,870,156.12 4,020,156.12 850,000.00
3．Annuity Payment 8,704.00 8,704.00
4.Unemployment insurance 74,134.20 74,134.20
5．Work injury insurance 138,368.61 138,368.61
6．Maternity insurance 27,118.50 101,272.52 101,272.52 27,118.50
4. Housing fund 144,785.74 5,084,879.00 5,040,624.00 189,040.74
5.Termination Welfare
6. Other 496,213.44 4,564,799.94 4,333,807.83 727,205.55
Including：Labour union outlay
and Employee Educatation outlay
357,424.08 1,136,879.69 905,887.58 588,416.19
Non-Money Welfare 1,931,188.25 1,931,188.25
Other 138,789.36 1,496,732.00 1,496,732.00 138,789.36
Total 4,765,766.41 54,716,482.55 57,327,320.68 2,154,928.28
Notes：The amount of the staff remuneration payable which belongs to default is RMB0.00.98
（20）Payable tax
Items Balance in year-end Balance in year-begin
Bunsiness tax 3,616,108.19 3,740,410.54
City construction tax 128,179.75 141,248.61
Education subjion 78,157.11 83,758.04
Enterprise income tax 18,112,035.28 -1,956,560.00
Property tax 1,256.87 233,964.60
Land use tax 5,533.80 763,404.00
Defend expense 113,619.52 117,985.69
Individual income tax 592,601.74 1,034,862.67
Total 22,647,492.26 4,159,074.15
（21）Interest payable
Items Balance in year-end Balance in year-begin
Pay the interest for long-term loans by
installments.
5,637,800.58 4,408,684.58
Interet of company bonds 31,733,333.33 11,333,333.33
Payable interest for short-term borrowings 781,897.50
Total 37,371,133.91 16,523,915.41
（22）Dividend payable
Amount Balance in
year-end
Balance in year-begin
Reason of overdue
for over 1 year
Dividends for
shareholders of
A-share and B-share of
Guangdong Expressway
144,958,039.81 13,205,176.58
Foshan Industry
Bank Stock
Exchange
Department had
not received
dividend
Total 144,958,039.81 13,205,176.58
（23）Other payable
1.Age analyse
Items Balance in year-end Balance in year-begin99
Within 1 year 165,217,273.10 154,991,038.02
1－2 years 4,473,616.67 5,852,476.58
2－3 years 675,754.39 628,754.39
Over 3 years 3,422,993.18 3,532,965.23
Total 173,789,637.34 165,005,234.22
2. There were other receivable from the main shareholders of the Company holding nore than
5% (including 5%) of the total shares of the Company.
Name Balance in year-end Balance in year-begin
Guangdong Changda Highway Engineering
Co., Ltd.
53,190,651.59 41,268,881.04
Guangdong Expressway Co., Ltd. 29,571,684.64 20,500,371.33
Guangdong Guanyue Luqiao Co., Ltd. 16,902,706.72 16,845,528.02
Guangdong Jingtong Engineering
Consturction Group Co., Ltd.
9,050,844.00 6,408,067.00
Guangdong Communication Development
Company
3,283,357.95 3,238,970.95
Xinyue Communication Investment Co.,
Ltd.
972,872.10 1,783,873.10
Guanggong Shipping planning and design
Instifute
587,876.20 549,279.00
Guangdong Hualu communication
Technology Co., Ltd.
264,900.50 173,633.50
Guangzhou Putian Zhongzhi 170,923.84 170,923.84
Guangzhou Xinruan Computer Technology
Co., Ltd.
59,100.00 59,100.00
Shenzhen Huiyan Expressway Co., Ltd. 34,989.00 34,989.00
Guangdong Xinlu Adverting Co., Ltd. 30,000.00 30,000.00
Guangdong East Thinking Management
Technology Development Co., Ltd.
3,097.00 3,097.00
Guangdong Tongyi Expressway Services
Area Co., Ltd.
1,665.81
Total 114,124,669.35 91,066,713.78
3. High balance Other payable over 1 year has listed below
Name Amount Aging Not Refund cause
Industrial and commercial
Bank,Foshan Securities Dept.
1,036,464.35 Over 3 yares Not receive100
Name Amount Aging Not Refund cause
Guangdong Changda
Engineering Co., Ltd.
829,573.21 1-2 years Quality
guarantees
Guangzhou Huangpu
Construction engineering Co.,
Ltd.
525,319.00 1-2 years
Performance
Guarantee fund
Freedom Law firm 500,000.00 Over 3 years Litigation fees
Total 2,891,356.56
4.Large amount of other payyables
Name Amount Content Remark
Guangdong Changda Engineering Co.,
Ltd.
53,190,651.59
Project
account
Projict Guarantee
account/ Bid
deposit/
performance
bond/Retention
money
Guangdong Expressway Co., Ltd. 29,571,684.64
Project
account
Project Guarantee
account
Guangdong Guanyue Luqiao Co., Ltd. 16,902,706.72
Project
account
Project Guarantee
account and
performance bond
Guangdong Jingtong Highway
Engineering Construction Group Co.,
Ltd.
9,050,844.00
Project
account
Project Guarantee
account
Zhongtie No.12 Bureau Group Co., Ltd. 8,331,044.00
Project
account
Project Guarantee
account
Guangdong Communication
Development Co., Ltd.
3,283,357.95
Project
account
Project Guarantee
account
Zhongtie No.23 Bureau Group Co., Ltd. 3,271,941.00
Project
account
Project Guarantee
account
Guangdong Nengda High Maintenance
Co., Ltd.
3,152,139.62
Project
account
Project Guarantee
account
Total 126,754,369.52
（24） Non-current liability due in 1 year
Items Balance in year-end Balance in year-begin
Long-term loan 159,000,000.00 150,000,000.00
Bond payable101
Items Balance in year-end Balance in year-begin
Long-term payable
Total 159,000,000.00 150,000,000.00
1. Long-loan due in 1 year
Items Balance in year-end Balance in year-begin
Pledoe Loan
Mortgage loan
Guarantee loan
Credit loan 159,000,000.00 150,000,000.00
Total 159,000,000.00 150,000,000.00
The long-term loans due within one year and belong to overdue loans gain the
extension amount is RMB 0.00.
2.Long-term loans due in 1 year top in amount
Unit
Date of
commenceme
nt of loan
Loan
termination
date
Curren
cy
Interest
rate
Balance in
year-end
Balance in
year-begin
China merchants
Bank.Guangzhou World
Trade Building Branch
2006-5-11 2011-5-11 RMB 5.184% 50,000,000.00
China merchants Bank
Guangzhou Baiyun
Branch
2008-1-1 2011-1-9 RMB 4.860% 60,000,000.00
Industrial and commercial
Bank..Guangzhou
Fangchun Branch
2008-6-27 2011-6-16 RMB 4.860% 49,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2008-4-24 2010-4-24 RMB 6.804% 100,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2005-6-30 2010-6-30 RMB 6.237% 50,000,000.00
Total 159,000,000.00 150,000,000.00
（25）Long –term loan
1.Categories of long-term loans102
Items Balance in year-end Balance in year-begin
Pledoe Loan
Mortgage loan
Guarantee loan
Credit loan 3,675,964,803.54 2,820,874,803.54
Total 3,675,964,803.54 2,820,874,803.54
2．The top five of long-term loans
Unit
Date of
commence
ment of
loan
Loan
termination
date
Curren
cy
Interest
rate
Balance in
year-end
Balance in
year-begin
Constrution
Bank ,Guangzhou
Liwan Branch
2003-12-29 2013-9-28 RMB 5.346% 578,324,803.54 578,324,803.54
Communications
Bank ,Foshan
Branch 2008 2015 RMB 5.346% 300,000,000.00 300,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2008 2023 RMB 5.346% 300,000,000.00 300,000,000.00
China merchants
Bank.Guangzhou World
Trade Building Branch
2008-6-10 2023-6-10 RMB 5.184% 200,000,000.00 200,000,000.00
Industrial and
commercial
Bank..Guangzhou
Second Branch
2010-2-5 2023-8-31 RMB 5.346% 200,000,000.00
Total 1,578,324,803.54 1,378,324,803.54
（26）Bonds payable103
Name
Par
Value
Date of
Issued
Bond
s
term
Issue
d
amou
Interest payable
in
year-beginning
Interest payable
in this period
Interest
paid in
this period
Interest payable
in year-end
Balance in
year-end
09
Guangdong
Expressway
debt
100.00 2009-9-21 5
0.8bil
lion
11,333,333.33 20,400,000.00 31,733,333.33 790,435,836.91
Total 11,333,333.33 20,400,000.00 31,733,333.33 790,435,836.91
（27）Long-term payable
Items Balance in year-end Balance in year-begin
Non-operating assets of payable 2,022,210.11 2,022,210.11
Total 2,022,210.11 2,022,210.11
（28）Capital stocks
Balance in year-begin Changed（+，-） Balance in year-end
Items
Amount
Propo
rtion
％
Share
allot
ment
Bon
us
shar
es
Capitali
zation
of
commo
n
reserve
fund
Other Subtotal Amount
Proport
ion％
1.Shares with conditional
subscription
1.State-owned shares 409,246,518 32.55 456,200 456,200 409,702,718 32.59
2.State –owned legal
person shares
23,468,541 1.87 -435,314 -435,314 23,033,227 1.83
3.Other domestic shares 11,173,716 0.89 -1,861,048 -1,861,048 9,312,668 0.74
Including：
Domestic non-state
ovened legal person
shares
9,390,193 0.75 -1,488,990 -1,488,990 7,901,203 0.63
Domestic natural person
shares
1,783,523 0.14 -372,058 -372,058 1,411,465 0.11104
Balance in year-begin Changed（+，-） Balance in year-end
Items
Amount
Propo
rtion
％
Share
allot
ment
Bon
us
shar
es
Capitali
zation
of
commo
n
reserve
fund
Other Subtotal Amount
Proport
ion％
Executives shares
(4). Foreign shares
Including：
Foreign legal person
shares
Domestic natural person
shares
202,615 0.02 -3,758 -3,758 198,857 0.02
Total Shares with
conditional subscription
444,091,390 35.33 -1,843,920 -1,843,920 442,247,470 35.18
2.Shares with
uncounditional
subscription
(1). Common shares in
RMB
464,276,358 36.93 1,843,920 1,843,920 466,120,278 37.08
(2).foreign shares in
domestic market
348,750,000 27.74 348,750,000 27.74
(3).Foreign shares in
overseas market
(4)other
Total Shares with
uncounditional
subscription
813,026,358 64.67 1,843,920 1,843,920 814,870,278 64.82
3．.Total of capital shares 1,257,117,748 100 1,257,117,748 100
Notes ： (1) In the report period, 39 shareholders repaid 456,200 shares to Guangdong
Communication Group Co., Ltd. as consideration. 435,314 state legal person shares and 20,886
domestic natural person shares were converted into state shares, were still the shares with limited
sale conditions.
(2) In the report period, 835,754 domestic legal person shares subject to sale restriction and
1,004,408 domestic natural person shares subject to sale restriction were listed for trading and
converted into shares not subject to sale restriction on March 16, 2010. After judicial confirmation,
653,236 domestic legal person shares were converted into domestic natural person shares, which
were still subject to sale restriction.105
(3) In the report period，senior executive of the Company sold 3,758 "senior executive shares".
（29）Capital reserves
Items
Balance in
year-begin
Increase in
this period
Decrease in
this period
Balance in year-end
Share capital premium 1,534,759,970.60 148,140.75 1,534,611,829.85
Other capital reserves 146,885.72 146,885.72
Total 1,534,906,856.32 148,140.75 1,534,758,715.57
Notes：The company acquisited 5% interest of Guangdong Expressway Technology Co.， Ltd.On
May 28, 2010, Lastly obtained long-term Equity investment on stocks capitalized cost and
calculated the difference of identiy net assets portion from the beginning of consolidation under
lastly shareholding ratio，adjust consolidation financial statement's capital reserve.
（30）Surplus reserves
Items
Balance in
year-begin
Increase in this
period
Decrease in this
period
Balance in
year-end
Statutory Surplus
reserves
130,342,184.11 130,342,184.11
Statutory
commonweal fund
Repertory fund
Enterprise
Development fund
Other Surplus reserves
Total 130,342,184.11 130,342,184.11
（31）Retained profit
Items Amount Extraction or distribution of the ratio
Before adjustment: Ratained profit at the
end of last year 675,866,785.19
Adjustment: Ratained profit at the
beginning of current year
After Adjustment: Ratained profit at the
beginning of current year
Add：Net profit attributable to the owners
of parent company
237,803,790.41
Less ： Withdrawing statutory surplus
public reserve106
Items Amount Extraction or distribution of the ratio
Withdrawing statutory Discretionary
surplus public reserve
Common stock dividend payable
125,711,774.80
RMB 1.00 is to be paid for every
10 shares (Including tax )
Transferring into capital
Retained profit at the end of this term 787,958,800.80
（32）Operating income and operating cost
Report period Same period of the previous year
Items
Income Cost Income Cost
Main operation 497,351,944.58 239,243,285.93 467,835,596.38 166,221,106.86
Other operation 3,708,005.21 2,368,914.18 3,981,153.37 1,438,571.39
Total 501,059,949.79 241,612,200.11 471,816,749.75 167,659,678.25
1.Main operating （Industry）
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
Highway
Transportation
494,822,677.00 236,584,493.23 466,771,765.00 164,488,334.30
Other 2,529,267.58 2,658,792.70 1,063,831.38 1,732,772.56
Total 497,351,944.58 239,243,285.93 467,835,596.38 166,221,106.86
2.Main operating（Product）
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
Toll income 494,619,117.00 237,553,243.76 466,771,765.00 164,488,334.30
Other 2,732,827.58 1,690,042.17 1,063,831.38 1,732,772.56
Total 497,351,944.58 239,243,285.93 467,835,596.38 166,221,106.86
3. Main operating (Area)
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
Guangfo Expressway 138,148,247.00 91,196,692.55 132,732,823.00 44,984,731.03
Fokai Expressway 337,523,145.00 130,637,074.33 331,564,121.00 112,971,489.81
Jiujiang Bridge 19,947,725.00 15,115,028.20 2,474,821.00 6,532,113.46107
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
Other 1,732,827.58 2,294,490.85 1,063,831.38 1,732,772.56
Total 497,351,944.58 239,243,285.93 467,835,596.38 166,221,106.86
4. The revenue of our company’s main business is transport tolls; it is
inapplicable for the top 5 clients’ operating income.
（33）Business tax and subjoin
Items
Report period
Same period of the
previous year
Standard
Business tax 15,863,674.51 14,470,361.50 3%、5%
Urban construction tax 752,414.04 724,075.36 7%
Education surcharge 311,105.33 311,364.59 3%
Other 737,643.57 28,170.75
Total 17,664,837.45 15,533,972.20
（35）Management expenses
Items
Report period
Same period of the previous
year
Total Management expenses 47,100,615.59 47,896,913.39
Management expenses rate 9.40% 10.15%
（36）Financial Expenses
Items Report period Same period of the previous
Interest expense 83,770,286.09 70,327,489.21
Less:Interest income 1,207,277.05 1,526,537.90
Exchange Income and loss 3,912.38 217.14
Other 338,168.64 55,404.15
Total 82,905,090.06 68,856,572.60
（37）Investment income
1. Investment income108
Items
Report period
Same period of the
previous year
Long-term equity investment income by costing
Long-term equity investment income by equity method 190,006,307.13 125,642,159.44
Dispose the investment income from the long-term equity
investments
7,116,070.43
Hold the investment income which gained from the
transactional financial assets
Gain the investment income from the held-to-maturity
investment
Hold the investment income during from
available-for-sale financial assets
Dispose the investment income from the transactional
financial assets
Dispose the investment income from the held-to-maturity
investment
Dispose the investment income from the available-for-sale
financial assets
Other
Total 190,006,307.13 132,758,229.87
2. long-term equity investment incomes confirmed by equity method include:
Unit
Report period
Same period of
the previous
year
Reason to increase or decrease
Guangdong Maozhan
Expressway Co., Ltd. 10,558,130.38 1,262,018.02
Increase in net profit affiliated
company
Guangdong Guanghui
Expressway Co., Ltd. 89,942,507.92 65,725,653.99
Increase in net profit joint
venture
Zhaoqing Yuezhao Highway Co.,
Ltd. 9,975,863.69 -269,974.56
Increase in net profit joint
venture
Guangzhou Xinlu -302,752.79
Previous term equity
transfer
Shenzhen Huiyan Expressway 25,949,602.19 27,255,734.23
Decrease in net profit affiliated
company
Jingzhu Expressway Guangzhu 66,221,849.58 50,786,607.06
Increase in net profit affiliated
company109
Unit
Report period
Same period of
the previous
year
Reason to increase or decrease
Guangdong Jiangzhong
Expressway 3,665,247.95 -97,377.19
Increase in net profit affiliated
company
Ganzhou Kangda Expressway -16,306,894.58 -18,717,749.32
Decrease in net profit affiliated
company
Total 190,006,307.13 125,642,159.44
3. Dispose the investment income from the long-term equity investments
Unit
Report period
Same period
of the
previous year
Reason to increase or
decrease
Guangzhou Xinlu 28,932.90
Previous term equity
transfer
Guangzhou Putian Zhongzhi 7,087,137.53
Previous term
liquidation
Total 7,116,070.43
4. There were no significant limits on investment income of the Company.
（37）Loss for depreciation of assets
Items
Report period
Same period of the previous
year
1．Loss for bad debts 3,601,000.00
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 progress110
Items
Report period
Same period of the previous
year
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
（39）Non-operation income
1. Non-operation income
Items
Report period
Same period of the
previous year
1. Total profits of non-current
assets disposal 401,983.70
Including：Fixed asset disposal
profits
401,983.70
Intangible asset
disposal profits
Debt restructuring profits
Non-monetary assets exchange
profit
Donation income
Government Subsidy 50,000.00
Check income
Road permits claims income 1,026,052.59 908,097.53
Insurance claims
income
14,425,000.00
Other 87,727.70 111,817.50
Total 15,990,763.99 1,019,915.03
2. Governmental subsidy details
Items
Report period
Same period
of the
previous year
Explanation
Big tax-payer
rewards
50,000.00
Our company had received the big
tax-payer rewards from Guangzhou
Baiyun District People’s Government
（40）Non-Operation expense111
Items
Report period
Same period of the
previous year
Total of non-current asset
Disposition loss
4,310,379.77 70,692.18
Incl: loss of fixed assets disposition 4,310,379.77 70,692.18
Loss of Intangible assets
disposition
Debt restructuring loss
.External donor expenditure
Donations for public welfare
spending
Special loss
Check loss
Fines and late fees expenses 187,686.92 81.28
Other 124,438.19 406,600.23
Total 4,622,504.88 477,373.69
（40）Income tax expenses
Items
Report period
Same period of the
previous year
The current income tax calculated
by the tax law and the relevant
regulations
44,040,511.88 36,091,369.92
Adjustment of Deferred income tax 1,235,793.45 10,373,867.56
Total 45,276,305.33 46,465,237.48
（41）Calculation of Basic earnings per share and Diluted earnings per share
Earnings per share
Profit of the report period Basic earnings per
share
Diluted gains per
share
Net profit attributable to the Company’s shareholders with
ordinary shares
0.19 0.19
January- June
2010
Net profit attributable to the company’s shareholders with
ordinary shares after deductiong extraordinary gains or
losses
0.18 0.18112
Net profit attributable to the company’s shareholders with
ordinary shares
0.17 0.17
January- June
2009
Net profit attributable to the company’s shareholders with
ordinary shares after deductiong extraordinary gains or
losses
0.17 0.17
Earnings per share-basis
Earnings per share-basis =P0÷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-recurring 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.
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 .
（42）Note Cash flow statement
1. Other cash received from business operation
Items Report period
Newwork received toll income 461,281,517.68
Quality Guarantee Fund，Deposit 10,449,214.10
Interest income 1,207,277.05
Non-Operation income 1,096,682.29
Other 3,028,685.78
Total 477,063,376.90113
2. Other cash paid for business activities
Items Report period
Newwork received toll income 452,117,958.73
Quality Guarantee Fund，Deposit 21,106,494.77
Management expense 12,190,270.93
Current Account payments 5,542,226.00
Other 6,443,338.62
Total 497,400,289.05
（43）Supplement Information of Cash flow statement
1. Supplement Information of Cash flow statement
Supplement Information
Report period
Same period of the
previous year
I.Adjusting net profit to net cash flow in operating
activities
Net profit 267,875,467.49 254,318,610.69
Add: Asset devaluation reserve provided 4,386,536.35
Fixed assets depreciation,Oil and gas depreciation,
Produce matter depreciation 158,028,821.63 78,119,555.53
Amortization of intangible assets 3,761,384.58 3,561,042.00
Amortization of long-term expenses to be
amortized 30,261.31 759,053.65
The loss from the disposal of fixed assets,
intangible assets and other long-term assets 3,908,396.07 70,692.18
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 83,770,286.09 70,327,489.21
Investment loss -190,006,307.13 -132,758,229.87
decrease of deferred tax assets 572,270.05
Increase of deferred tax Liabilities 1,235,793.45 9,801,597.51
Decrease of inventories -55,808.85 156,956.53
Decrease of operating accounts receivable -85,821,617.60 -208,619,293.13
Increase of operating accounts payable 86,215,728.10 126,841,075.10
Other
Net cash flow generated from operating activities 328,942,405.14 207,537,355.80
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 financing114
Supplement Information
Report period
Same period of the
previous year
III、Net increase of cash and cash equivalent
Balance of cash at the end of the period 597,399,737.09 622,360,763.72
Less: Balance of cash at the beginning of the period 218,754,995.03 350,765,725.76
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 378,644,742.06 271,595,037.96
2. Relevant information of subsidiaries and other business units obtained or disposed in current
period
Items
Report period
Same period of the
previous year
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 -6,614,226.51
Current assets 500,612.69
Non- Current assets 30,449.88
Current Liabilities 4,145,289.08
Non- Current Liabilities 3,000,000.00115
3. Composition of cash and cash equivalents:
Items Balance in year-end
Balance in
year-begin
I. Cash 597,399,737.09 218,754,995.03
Incl：Stock cash 112,723.48 331,104.12
Bank deposits which can be used at any time 584,495,129.51 215,687,322.68
Other monetary funds which can be used at any time 409,652.29 62,142.36
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 597,399,737.09 218,754,995.03
Incl：Parent company and subsidiaries in the group used the
limited ash and cash equivalents
12,382,231.81 2,674,425.87
Notes: Ending cash and cash equivalents balance include the clearing account fund of
use-restricted tolls were RMB 12,382,231.81.
VI. Related parties and related transactions
1. Related parties
(1).Particulars about the parent company of the Company
Name
Related
parties
Tyep
Registered
address
Legal
represen
tative
Nature
Registrat
ed
capital
The
parent
company
of the
Compan
y's
sharehol
ding
ratio
The parent
company of
the
Company’s
vote ratio
The
ultimate
controllin
g party of
the
Company
Orga
nizati
on
Code
Guangdong
communica
tion Group
Co., Ltd
Parent
Compan
y
State
owned
Co., Ltd.
No. 27,
Baiyyun
Road,Yuexiu
District ,
Guangzhou.
Zhu
Xiaolin
g
Equity
management,
traffic
infrastructur
e
2,680,000 40.81% 40.81%
Guangdo
ng
communi
cation
Group
72383
8552116
Name
Related
parties
Tyep
Registered
address
Legal
represen
tative
Nature
Registrat
ed
capital
The
parent
company
of the
Compan
y's
sharehol
ding
ratio
The parent
company of
the
Company’s
vote ratio
The
ultimate
controllin
g party of
the
Company
Orga
nizati
on
Code
construction
and railway
project
operation
Co., Ltd
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal
representative: Zhu Xiaoling. Date of establishment: June 23, 2000. As of June 30,
2010,Registered capital: RMB 26.8 billion. It is a solely state-owned limited company. Business
scope：equity management, organization of asset reorganization and optimized allocation, raising
funds by means including mortgage, transfer of property rights and joint stock system
transformation, project investment, operation and management, traffic infrastructure construction,
highway and railway project operation and relevant industries, technological development,
application, consultation and services, highway and railway passenger and cargo transport, ship
industry, relevant overseas businesses.118
2.Particulars of the subsidiaries
Name
Related
parties
Tyep Registered address
Legal
representative
Nature
Registrated
capital
The
subsidiar
ies of the
Compan
y's
sharehol
ding
ratio
The
subsidiar
ies of the
Company’
s vote
ratio
Organiza
tion
Code
Guangfo
Expressway Co.,
Ltd.
Subsidiary
Limited liability
Company(Taiwan,
Hong Kong and
Macao and in
cooperation）
Shabei
West,Guangzhou
Zhou Yuming
Expressway
Management
20,000 75% 75%
61740143-
7
Fokai Expressway
Co., Ltd.
Subsidiary
Limited liability
Company
No.83, Baiyun Road,
Yuexiu
District ,Guangzhou
Li Xiyuan
Expressway
Management
110,800 75% 75%
23112431-
8
Guangdong
Expressway
Technology
Investment
Co., Ltd.
Wholly-Owne
d subsidiary
Limited liability
Company
（Foreign-invested
enterprises and domestic
join
4/F,Guangdong Expressway
Building, No.85, Baiyun
Road, Yuexiu District,
Guangzhou
Xiao Laijiu
Investment in
technical industries
and provision of
relevant consulting
services
10,000 100% 100%
73145698-
4119
Name
Related
parties
Tyep Registered address
Legal
representative
Nature
Registrated
capital
The
subsidiar
ies of the
Compan
y's
sharehol
ding
ratio
The
subsidiar
ies of the
Company’
s vote
ratio
Organiza
tion
Code
Guangzhou
Putian Zhongzhi
A subsidiary
wholly-owned
subsidiary
Limited liability
Company
2011, 2012 Room,
No.201Huangpu West
Road, Tianhe District,
Guangzhou Cao Jianhong
Research and
development of
electronic
products and
technical service.
Wholesale trade.
500 60% 60%
71243167-
7120
3. Infornation of Joint venture and Affiliated company
Name Type
Regist
rated
addres
s
Legal
represen
tative
Nature
Registrated
capital
Held
share
proporti
on (%)
Voting
proportion(%)
End total assets
End total
liabilities
End total net assets
Total current
revenues
Current
net
profit
Related
parties
orgabuzat
uib code
I. Joint
venture
1.Guangdong
Guanghui
Expressway
Co., Ltd.
Limited
liability
Compa
ny
Guang
zhou,
Guang
dong
Liu
Ganglia
ng
Expres
sway
Manag
ement
2,351,678,000.00 30 30 6,422,755,648.13 3,754,880,758.60 2,667,874,889.53 761,208,182.84
299,808,3
59.74
Joint venture 70768541-0
2. Zhaoqing
Yuezhao
Highway Co.,
Ltd.
Limited
liability
Compa
ny(Tai
wan,
Hong
Kong
and
Macao
and in
coopera
tion）
Zhaoq
ing,
Guang
dong
Wang
Jiachen
Expres
sway
Manag
ement
818,300,000.00 25 25 2,773,344,536.06 1,990,761,600.64 782,582,935.42 123,376,469.70
41,354,71
8.66
Joint venture 70815700-3
3.Beijing Gelin
Enze
Limited
liability
Compa
ny
BeiJin
g
Wang
Jianji
Organi
c
fertiliz
er
produc
tion
and
sell
20,000,000.00 35 35 25,925,805.89 16,707,626.85 9,218,179.04 Joint venture 75941162-2121
Name Type
Regist
rated
addres
s
Legal
represen
tative
Nature
Registrated
capital
Held
share
proporti
on (%)
Voting
proportion(%)
End total assets
End total
liabilities
End total net assets
Total current
revenues
Current
net
profit
Related
parties
orgabuzat
uib code
II. Affiliated
company
1.Shenzhen
Huiyan
Expressway
Co., Ltd.
Limited
liability
Compa
ny
Shenz
hen,
Guang
dong
Xu
Xiaoyan
g
Expres
sway
Manag
ement
36,000,000.00 33.33 33.33 474,466,718.98 38,016,219.65 436,450,499.33 157,978,521.52
79,981,32
5.25
Affiliate
d
company
19220379-2
2.Guangdong
Maozhan
Expressway
Co., Ltd.
Limited
liability
Compa
ny
Guang
zhou,
Guang
dong
Li
Jinfeng
Expres
sway
Manag
ement
1,120,000,000.00 20 20 2,808,445,472.91 2,128,602,831.46 679,842,641.45 211,664,938.00
52,790,65
1.90
Affiliate
d
company
70766863-7
3. Jingzhu
Expressway
Guanzhu
Limited
liability
Compa
ny(Tai
wan,
Hong
Kong
and
Macao
and in
coopera
tion）
Guang
zhou,
Guang
dong
Lu
Yaxing
Expres
sway
Manag
ement
580,000,000.00 20 20 4,343,908,155.79 3,025,248,976.71 1,318,659,179.08 580,258,516.99
350,440,4
62.19
Affiliate
d
company
61740144-5
4.Guangdong
Jiangzhong
Expressway
Co., Ltd.
Limited
liability
Compa
ny
Guang
zhou,
Guang
dong
Lu
Yaxing
Expres
sway
Manag
ement
1,045,000,000.00 15 15 2,891,910,580.15 1,942,155,739.19 949,754,840.96 153,930,837.49
24,434,98
6.34
Affiliate
d
company
74296235-6
5.Ganzhou
Kangda
Expressway
Other
Limited
liability
Compa
Ganzh
ou,
Jiangx
i
Yao
Diming
Expres
sway
Manag
ement
600,000,000.00 30 30 1,871,698,819.75 1,565,032,214.75 306,666,605.00 14,906,369.00
-51,729,7
12.25
Affiliate
d
company
77239039-5122
Name Type
Regist
rated
addres
s
Legal
represen
tative
Nature
Registrated
capital
Held
share
proporti
on (%)
Voting
proportion(%)
End total assets
End total
liabilities
End total net assets
Total current
revenues
Current
net
profit
Related
parties
orgabuzat
uib code
ny
6.Ganzhou
Gankang
Expressway
Co., Ltd.
Limited
liability
Compa
ny
（State
-owned
holding
）
Ganzh
ou,
Jiangx
i
Li
Zequan
Expres
sway
Manag
ement
700,000,000.00 30 30 2,250,945,156.42 1,550,945,156.42 700,000,000.00
Affiliate
d
company
79946719-6
7.Guangdong
Guangle
Expressway Co.,
Ltd.
Limited
liability
Compa
ny
（Foreig
n-investe
d
enterpris
es and
domestic
joint
ventures
）
Guang
zhou,
Guang
dong
Li
Jinfeng
Expres
sway
Manag
ement
500,000,000.00 30 30 2,638,699,419.91 1,988,701,919.91 649,997,500.00
Affiliate
d
company
69693015-X124
4. Other Related parties
Name
Relation with the Company
Organization Code
Guangdong Expressway Co., Ltd.
Fully owned subsidiary of the
parent company
190330413
Guangdong Jingtong Enginneering
Construction Group Co., Ltd.
Fully owned subsidiary of the
parent company
23111091X
Guangdong Nanyue Logistics Co.,
Ltd.
Fully owned subsidiary of the
parent company
719285123
Guangdong Changda highway Co., Ltd.
Fully owned subsidiary of the
parent company
190334510
Guangdong Guanyue Luqiao Co., Ltd.
Fully owned subsidiary of the
parent company
231129768
Guangdong Hualu communication
Technology Co., Ltd.
Fully owned subsidiary of the
parent company
736195293
Guangdong Shipping Planning and
Design Institute
Fully owned subsidiary of the
parent company
45585776-4
Guangdong Xinyue Communication
Investment Co., Ltd.
Fully owned Grandson
Company of the parent
company
707656521
Guangdong Gaoda Property
Development Co., Ltd.
Fully owned Grandson
Company of the parent
company
707685592
Guangdong East Thinking Management
Technology Development Co., Ltd.
Fully owned Grandson
Company of the parent
company
724762107
Guangzhou Xinruan Computer
Technology Co., Ltd.
Fully owned Grandson
Company of the parent
company
725017352
Guangdong Communication
Development Company
Fully owned Grandson
Company of the parent
company
190324937
Guangdong Tongyi Expressway Services
Area Co., Ltd.
Fully owned Grandson
Company of the parent
company
724795996
Guangdong Lulutong Co., Ltd. Fully owned Grandson 231125505125
Name
Relation with the Company
Organization Code
Company of the parent
company
Guangdong Zhanjiang Bay Bridge Co.,
Ltd.
Fully owned Grandson
Company of the parent
company
74083612-9
Guangdong Xinlu Adverting Co., Ltd.
Fully owned Grandson
Company of the parent
company
74707234-4
(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.126
2 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）
Proportion
（％）
Amount
（RMB）
Proportion
（％）
1. Operating
costs
Guangdong
Guanghui
Expressway
Receiving
labor
Project
fund
Market
price
900,000.00 0.37 750,000.00 0.45
Guangdong
Changda
highway Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
19,387,567.00 8.02 21,701,488.00
12.94
Guangdong
Shipping
Planning and
Design
Institute
Receiving
labor
Project
fund
Market
price
1,800,000.00 0.74
Guangdong
Guanyue
Luqiao Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
3,988,324.00 1.65 5,058,153.40 3.02
Guangdong
Jingtong
Enginneering
Construction
Group Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
1,385,698.00 0.83
Subtotal of
Operating
costs
26,075,891.00 10.78 28,895,339.40 17.24
2. Management
expenses
Guangdong
Gaoda
Property
Development
Co., Ltd.
Receiving
labor
Rent
management
Fee
Market
price
1,056,148.08 2.24 528,074.04 1.10127
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）
Proportion
（％）
Amount
（RMB）
Proportion
（％）
Subtotal of
Management
expenses
1,056,148.08 2.24 528,074.04 1.10
3. Construction
on process
Guangdong
Guanyue
Luqiao Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
39,385,426.00 7.76 2,581,113.00 0.74
Guangdong
Changda
highway Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
131,801,028.00 25.97 77,849,162.00 22.46
Guangdong
Expressway Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
12,259,411.91 3.54
Guangdong
Hualu
communication
Technology
Co., Ltd.
Receiving
labor
Project
fund
Market
price
480,252.00 0.14
Subtotal of
Construction on
process
171,186,454.00 33.73 93,169,938.91 26.88
Total 198,318,493.08 122,593,352.35
3. Related transactions on sale 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
关联交易定
价方式及决
策程序
Amount
（RMB）
Proportion
（％）
Amount
（RMB）
Proportion
（％）
1. Operating128
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
关联交易定
价方式及决
策程序
Amount
（RMB）
Proportion
（％）
Amount
（RMB）
Proportion
（％）
income
Guangdong
Expressway Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
301,838.52 0.06
Zhaoqing
Yuezhao
Highway Co.,
Ltd.
Receiving
labor
Project
fund
Market
price
445,158.00 0.09
Guangdong
Guanyue Luqiao
Co., Ltd.
lease
Lease
exprese
Market
price
133,860.00 0.03
Total 880,856.52 0.18
4.Other Relationships Transactions
（1）The 3rd meeting of the sixth board of directors of the Company was held on April
22,2010, The meeting examined and adopted the Proposal for Borrowing Entrusted
Loan from Guangdong Guanghui Expressway Co., Ltd. ,The Company was approved
to apply to Guanghui Company for an entrusted loan. The amount of loan is RMB
One Hundred and Five Million Only (RMB 105,000,000.00) and the term of loan is
half a year. The interest rate of loan is the loan rate quoted by People's Bank of China
in the same period at 10% discount. The principal and interest of loan will be repaid in
lump sum on the maturity day. After expiration of the loan, the Company may renew
the entrusted loan contract with Guanghui Company with loan term and loan interest
rate remaining unchanged. As of June 30, 2010, The Company has not borrowed the
above-mentioned entrusted loan from Guangdong Guanghui Expressway Co., Ltd.
（2）Our controlled subsidiary company guang-fo highway Co., Ltd. is building an extension for
the section from yayao to xiebian. May 20, 2005,Guang-fo highway Co., Ltd. and Guangdong
province highway Co.,Ltd. had signed 《the agreement of construction and management
entrustment in Guang-fo highway extension project for the section from yayao to xiebie》in
Guangzhou. This agreement and its complementary agreement had been approved and made
effective by the resolutions of the 2nd provisional shareholders’ meeting held by our company in
Feb. of 2008. According to above agreement, Guang-fo highway Co.,Ltd. will entrust the
construction and management of Guang-fo highway extension project for the section from yayao
to xiebie to Guangdong province highway Co.,Ltd. and will pay the construction & management
Fee of entrustment. As of June 30, 2009,Our controlled subsidiary company guang-fo highway Co.,
Ltd. should pay construction & management Fee of entrustment to Guangdong Expressway
Co.,Ltd. This extension project has been finished and was commissioning in December
23，2009.129
(3)Our controlled subsidiary company Guangdong province fo-kai highway Co.,Ltd. is planning to
carry out expansion & reconstruction for the section from xiebian to sanbao. On May 20,
2005,Guangdong province fo-kai highway Co.,Ltd. and Guangdong province highway Co.,Ltd.
had signed《the agreement of construction and management entrustment in fo-kai highway
extension project for the section from xiebian to sanbao》. This agreement and its complementary
agreement had been approved and made effective by the resolutions of the 2nd provisional
shareholders’ meeting held by our company in Feb. of 2009. According to the above agreement,
Guangdong province fo-kai highway Co.,Ltd. will entrust the construction and management of
fo-kai highway extension project for the section from xiebian to sanbao to Guangdong province
highway Co.,Ltd. and Guangdong province fo-kai highway Co.,Ltd. will pay the construction &
management Fee of entrustment to Guangdong province highway Co.,Ltd.
（4）On June 15, 2007，The 325 Jiujiang Bridge collapsed for “Yueguijii 035” collision owned by
the controlling subsidiary of the company Guangdong Fokai Expressway Company and the
un-collapsed part has serious damage in structure. One of the shareholders of Guangdong Fokai
Expressway Company, Guangdong Provincial Expressway Company, established National Road
325 Jiujiang Bridge Restoration Project Office on June 18,2007, responsible for the repair works
of Jiujiang Bridge and related management work. The restoration has been finished and was
open in June 10, 2009.
5. Payables and receivables of the related party
Name Related party Amount at year end
Amount at year
beginning
Account
receivable Guangdong Lulutong Co., Ltd. 18,004.85 18,004.85
Guangdong Zhanjiang Bay Bridge Co., Ltd. 19,756.00 19,756.00
Zhaoqing Yuezhao Highway Co., Ltd. 208,851.50
Subtotal 246,612.35 37,760.85
Prepayment Guangdong Guanyue Luqiao Co., Ltd. 29,487,527.00 29,487,527.00
Guangdong Changda Highway Engineering
Co., Ltd. 95,279,811.60 100,633,122.60
Guangdong Nanyue Logistucs Co., Ltd. 143,352,557.47 70,456,772.62
Guangdong Jingtong Highway Engineering
Comapny 22,560,679.00 28,958,024.00
Guangdong Communication Development
Company 805,868.80
Subtotal 291,486,443.87 229,535,446.22
Other receivable Guangdong Guanghui Expressway Co., Ltd. 500,000.00 500,000.00
Xinyue Communication Investment
Co., Ltd.
2,158.60 2,158.60
Guangdong Gaoda Preperty
Development Co., Ltd.
87,000.00 91,500.00130
Name Related party Amount at year end
Amount at year
beginning
Beijing Gelin Enze 12,220,079.91 12,220,079.91
Guangdong Tongyi Expressway
Services Area Co., Ltd.
38,044.18
Zhaoqing Yuezhao Highway Co., Ltd. 250,000.00 250,000.00
Guangzhou Putian Zhongzhi 3,601,000.00 3,601,000.00
Guangdong Zhanjiang Bay Bridge Co., Ltd.
11,428.86 11,428.86
Subtotal 16,671,667.37 16,714,211.55
Account
payable
Guangdong Changda highway Co., Ltd. 45,560,410.22 47,471,604.22
Guangdong Jingtong Enginneering
Construction Group Co., Ltd.
17,509,152.00 1,624,000.00
Guangdong Guanyue Luqiao Co., Ltd. 16,035,184.00 19,468,667.00
Guangdong Expressway Co., Ltd. 13,931,764.11 13,728,261.18
Guangdong Communication
Development Co., Ltd.
7,283,943.00 10,377,100.80
Guangdong Hualu communication
Technology Co., Ltd.
1,545,624.00 1,618,891.00
Guangdong Guanghui Expressway Co.,
Ltd. 900,000.00
Guangdong East Thinking Management
Technology Development Co., Ltd.
207,804.00 207,804.00
Xinyue Communication Investment
Co., Ltd.
116,662.64 1,516,312.54
Guangzhou Putian Zhongzhi 99,447.00 99,447.00
Subtotal 103,189,990.97 96,112,087.74
Advance
account
Zhaoqing Yuezhao Highway Company 189,865.00 189,865.00
Guangdong Expressway Co., Ltd. 1,297,905.64 1,599,744.16
Subtotal 1,487,770.64 1,789,609.16
Other payable Guangdong Changda highway Co., Ltd. 53,190,651.59 41,268,881.04
Guangdong Expressway Co., Ltd. 29,571,684.64 20,500,371.33
Guangdong Guanyue Luqiao Co., Ltd. 16,902,706.72 16,845,528.02
Guangdong Jingtong Enginneering
Construction Group Co., Ltd.
9,050,844.00 6,408,067.00131
Name Related party Amount at year end
Amount at year
beginning
Guangdong Communication
Development Company
3,283,357.95 3,238,970.95
Xinyue Communication Investment
Co., Ltd.
972,872.10 1,783,873.10
Guangdong Shipping Planning and
Design Institute
587,876.20 549,279.00
Guangdong Hualu communication
Technology Co., Ltd.
264,900.50 173,633.50
Guangzhou Putian Zhongzhi 170,923.84 170,923.84
Guangzhou Xinruan Computer
Technology Co., Ltd.
59,100.00 59,100.00
Shenzhen Huiyan Expressway Co., Ltd. 34,989.00 34,989.00
Guangdong Xinlu Adverting Co., Ltd. 30,000.00 30,000.00
Guangdong East Thinking Management
Technology Development Co., Ltd.
3,097.00 3,097.00
Guangdong Tongyi Expressway
Services Area Co., Ltd.
1,665.81
Subtotal 114,124,669.35 91,066,713.78
VII. Contingency
(1)Pending aciton or arbitrationformative or indebted
There is no event happened in this accounting period.
（2）The contingent liabilities formed by the debt guarantee provided by related parties and other
units
There is no event happened in this accounting period.
（3）Other Events
There is no event happened in this accounting period.
VIII. Commitment events .
(I) The foreign investment contracts which had signed but not fulfilled or not completely fulfilled
and the related financial expenditure.
1. The controlling Subsidiary of the Company Fokai Expressway Co., Ltd is expanding the
construction of Yayao Xiebian Yayao – Xiebian. On May 22, 2007, Guangdong Development &
Reform Commission issued Gaijiaoyun [2007] No.1119 File, the Official Reply to the approval of
the project of Guangdong Xiebian-Sanbao Highway Expansion Construction from State
Development and Reform Commission: Approved the expansion project of Xiebian- Sanbao132
Highway, with the investment of the project for 3.71 billion Yuan, of which: the capital 1.47
billion Yuan by the Guangdong Fokai Expressway Co., Ltd, the remaining funds 2.24 billion Yuan
by loans from domestic banks. On April 3, 2008, State Highway Traffic Department released TAC
[2008]No. 16th, : 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. The Company held the second provisional Shareholders’ General meeting on September 28, 2009 ,
The meeting examined and adopted to review and approve the Motion of Investing in 30% Equity of
Guangzhou-Lechang Expressway Project. The board of directors consented to invest RMB2,561.914
million in 30% equity of Guangzhou-Lechang highway project. Total investment and capital invested
by shareholders shall be the final accounts approved by the competent government authority. As of
June 30, 2010, The company has invested accumulated RMB 339.9975 million.
3. 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 of June 30, 2010, the fund of the Company has not invested yet.
4. 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 registered 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 of June 30, 2010, Department. the fund of the
Company has not invested yet.
(II)Contingent liability formed by providing debt guarantee to other unit and its influence on
finance
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.
IX. Post-balance-sheet issues.
No post-balance-sheet issue with the company up to the date of this report.133
X. 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 Maritime
Court.On August 22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court,
asking Foshan South Sea Shipping Company Limited and Yang Xiong to undertake the
conpensation 25,587,684 yuan for the loss caused by collapsion of Jiujiang Bridge. On August 28,
2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa No.
332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case was suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial
Government had not made the final report of Jiujiang Bridge accident. The Court, on November 5,
2007, decided to suspend the proceeding. In September 2008, Jiujiang Bridge accident
investigation report was officially reported and resumed the proceedings. On December 5, 2008,
Guangzhou Marine Court opened a court trial to procceeded the case. Currently, Guangzhou
Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide, therefore, on
January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case.
On May 24, 2010，Jiujiang Bridge Branch of Guangdong Fokai Expressway Co., Ltd.
signed Compensation Agreement with International Insurance Dept. of Guangdong
Branch of PICC Property and Casualty Co., Ltd. Both parties reached agreement on
insurance indemnity scheme through consultation. After full payment of RMB 111.75
million, the liability of the insurer for compensation in respect of this insurance
accident will be cancelled according to law. According to the provisions of
Accounting Standards for Business Enterprises and relevant clauses of the insurance
contract, Jiujiang Bridge Branch of Guangdong Fokai Expressway Co., Ltd. wrote off
the net asset value of Jiujiang Bridge with compensation of RMB 97.3250 million for
reconstruction project and accounted for the compensation of RMB 14.4250 million
for expenses on disposal of debris as non-operating income for current period.
2. 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 advance134
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 [Guangdong DFTEC 2008 No. 425] made by Department of Foreign Trade and Economic
Co-operation of Guangdong Province. The court noticed our company to participate the lawsuit as
the third party which has stake in the result of this case. This lawsuit held a hearing on Jan.
18th ,2010, there is no judgment was made till now. On April 15, 2010, Guangzhou Tianhe
District People's Court made (2010) Tian Fa Xing Chu Zi No.9 administration
judgment and rejected the Plaintiff's claim. The Plaintiff refused to accept the
judgment for the first instance and instituted an appeal. On July 5, 2010, Guangzhou
Intermediate People's Court conducted court inquiry.
3. On Fubruary 23, 2009，As the common applicant, Guangdong Expressway Technology
Investment Co., Ltd. and Guangzhou branch of CHINA MINSHENG BANKING CORP.,LTD.
had lodged a lawsuit in the Guangzhou municipal Intermediate People's Court against Guangzhou
Putianzhongzhi Technology Industrial Co., Ltd. and applied for the bankruptcy and liquidation in
Guangzhou Putianzhongzhi Technology Industrial Co., Ltd. as it can’t pay back the due debts, On
Jun. 3rd, 2009, the court made the judgment and accept the bankruptcy and liquidation application
from applicant and appointed Guangdong Guangda Law Firm as the custodian of Guangzhou
Putianzhongzhi Technology Industrial Co., Ltd. The custodian had provided on Nov.16th,
2009 and applied to the court for closing the case. On Nov. 30th, 2009, Guangzhou municipal
Intermediate People's Court made the civil ruling paper (Guangdong IPC civil bankruptcy 2009
No. 4-8), (1) This judgment will end the bankruptcy and liquidation procedures on Guangzhou
Putianzhongzhi Technology Industrial Co., Ltd. (2) The custodian of Guangzhou Putianzhongzhi
Technology Industrial Co., Ltd. should take this judgment to its original registration authority for
cancelling its registration. the registration cancellation of Guangzhou Putianzhongzhi Technology
Industrial Co., Ltd. is in processing.
XI. Parent company financial statements
（1）Other receivables
1. Type analyse：
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo
rtio(
%)
Amount Proport
io(%)
Amount Propo
rtio(
%)
Amount Propo
rtio(
%)
Individually
significant accounts
receivable
33,198,382.12 85.21 33,198,382.12 95.24 33,198,382.12 86.78 33,198,382.12 95.24
Account
receivablewhich are
not individually
significant but are
assessed at high risk
level through credit
risk combination
Othe 5,762,049.38 14.79 1,658,571.80 4.76 5,055,891.41 13.22 1,658,571.80 4.76136
Amount in year-end Amount in year-begin
Book Balance Bad debt povision Book Balance Bad debt povision
Type Amount Propo
rtio(
%)
Amount Proport
io(%)
Amount Propo
rtio(
%)
Amount Propo
rtio(
%)
non-materialreceiva
bles
Total 38,960,431.50 100 34,856,953.92 100 38,254,273.53 100 34,856,953.92 100
2. There is no significant amount or the test of depreciation of value of bad debts provision of
accounts receivable at the ending.
Other receivables Book balance Amount of bad
debts
Proportion
(%)
Reasons
Kunlun Securities Co.,
Ltd.
33,198,382.12 33,198,382.12 100.00% Notes
Total 33,198,382.12 33,198,382.12
Notes : For the balance amount of our company’s security trading settlement funds RMB
33.68377479 million deposited in Kunlun Securities Co., Ltd., The Xi’Ning municipal
Intermediate People's Court of Qinghai Province had made the judgment in accordance with the
law and declared on Nov. 11st, 2006 that Kunlun Securities Co., Ltd. was bankrupted for debt
payment. In Mar. of 2007, the liquidating group of Kunlun Securities preliminary judged the
relationship between our company and Kunlun Securities Co., Ltd. is debtor creditor relationship.
As Kunlun Securities Co., Ltd. was bankrupted for debt payment and it is in serious insolvency,
our company had moved the security trading settlement funds deposited in Kunlun Securities Co.,
Ltd., to other receivables account for reflection, we also have made full amount provision for bad
debts based on conservatism principle. The recovered debt amount in 2008 is RMB 485,392.67
which had been offset from the provision for bad debts.
3. The cancellation after verification on other accounts receivable in the current
4. The top five companies in the amount of other receivables and the large amount of other nature
and content of receivables at the ending.
Name
Relationship
with the
Company
Amount Aging
The proportion
of the total of
other
receivables (%)
Nature or content
Kunlun Securities Co.,Ltd
No
relationship
33,198,382.12
Over 5
years
85.21
“XI（I）2, Notes”
Heshan Transportation real
estate Development
Company
No
relationshi
p
1,470,000.00
Over 5
years
3.77
Current account
Guangdong Xingyu Law No 1,278,604.11 Within 2 3.28 Advance by the Equity137
Name
Relationship
with the
Company
Amount Aging
The proportion
of the total of
other
receivables (%)
Nature or content
office relationshi
p
years Transfer fee and stamp of
shareholders to payable
associated costs
Guangdong Finance No
relationship
1,030,997.04
Within 2
years
2.65
Advance by the Equity and
transaction fees of
shareholders to payable
associated costs
Yixing Jinchen Gift Co., Ltd’
No
relationship
283,200.00
Within 1
years
0.73
Current account
Total 37,261,183.27 95.64
5. There was no other receivable due from shareholders with more than 5% (including 5%) of the
voting shares of the Company.
6.The accounts receivable from the Related parties
Name
Relationship
with the
Company
Relationship with
the Company
The proportion of the total of
other receivables (%)
Guangdong Gaoda Property
Development Co., Ltd.
The
controlling
grandson
company
87,000.00 0.22
Total 87,000.00 0.22138
(II) Long- term s equity investment
Name
Account
method
Initial amount
Balance in
year-begin
Increase/decreas
e
Balance in
year-begin
Shareholdd
ing
percentage(
%)
Voting
percentage
(%)
Instruction
Impairment
proision
Current
provisi
on
Current cash
dividend
Guangdong Guanghui Expressway
Co., Ltd.
Equity
method
705,503,400.00 784,133,616.22 16,228,850.65 800,362,466.87 30% 30%
73,713,657.27
Zhaoqing Yuezhao Highway
Co., Ltd.
Equity
method
183,690,616.22 225,653,566.64 -14,487,713.63 211,165,853.01 25% 25%
24,463,577.32
Shenzhen Huiyan
Expressway
Equity
method
14,024,586.42 195,764,733.87 -34,050,397.81 161,714,336.06 33.33% 33.33%
60,000,000.00
Guangdong Maozhan
Expressway
Equity
method
224,000,000.00 125,410,397.91 10,558,130.38 135,968,528.29 20% 20%
Jingzhu Expressway Guanzhu
Equity
method
66,779,449.38 464,974,371.27 -47,237,195.93 417,737,175.34 20% 20%
113,459,045.51
Guangdong Jiangzhong
Expressway Co., Ltd.
Equity
method
156,750,000.00 138,797,978.21 3,665,247.95 142,463,226.16 15% 15%
Ganzhou Kangda Expressway
Equity
method
165,820,322.53 155,323,069.64 -16,306,894.58 139,016,175.06 30% 30%
Ganzhou Gankang
Expressway Co., Ltd.
Equity
method
210,000,000.00 165,000,000.00 45,000,000.00 210,000,000.00 30% 30%
Guangdong Guangle Expressway
Equity
method
339,997,500.00 30,000,000.00 309,997,500.00 339,997,500.00 30% 30%139
Name
Account
method
Initial amount
Balance in
year-begin
Increase/decreas
e
Balance in
year-begin
Shareholdd
ing
percentage(
%)
Voting
percentage
(%)
Instruction
Impairment
proision
Current
provisi
on
Current cash
dividend
Subtotal of Equity method 2,066,565,874.55 2,285,057,733.76 273,367,527.03 2,558,425,260.79 -- -- -- 271,636,280.10
Guangfo Expressway
Cost
method
154,982,475.25 154,982,475.25 154,982,475.25 75% 75% 19,662,486.37
Guangdong Fokai Expressway
Cost
method
864,939,211.85 864,939,211.85 864,939,211.85 75% 75% 10,524,812.19
Guangdong Expressway
Technology Investment Co.,
Ltd.
Cost
method
94,811,882.42 94,811,882.42 920,000.00 95,731,882.42 100% 100%
Huazheng Asset Management
Co., Ltd.(Notes1）
Cost
method
1,620,000.00 1,620,000.00 1,620,000.00 0.54% 0.54%
1,393,200.00
Huaxia Securities Co.,
Ltd(Notes 2）
Cost
method
5,400,000.00 5,400,000.00 5,400,000.00 0.27% 0.27%
5,400,000.00
China Everbright Bank Cost
method
528,000,000.00 528,000,000.00 528,000,000.00 0.72% 0.72%
Subtotal of cost method
1,649,753,569.52 1,649,753,569.52 920,000.00 1,650,673,569.52 -- -- -- 6,793,200.00 30,187,298.56
Total
3,716,319,444.07 3,934,811,303.28 274,287,527.03 4,209,098,830.31 -- -- -- 6,793,200.00 301,823,578.66
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 14,140
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.141
(III) Operating income and operating cost
Items Report period
Same period of the
previous year
Main Operating income
Other operating income 6,015,720.00 3,600.00
Operating cost 232,106.70
Total 5,783,613.30 3,600.00
(IV) Investment income
1. Investment income
Items Report period
Same period of the
previous year
Long-term equity investment income by costing 30,187,298.56 127,661,678.93
Long-term equity investment income by equity
method
190,006,307.13 125,944,912.23
Dispose the investment income from the
long-term equity investments
hold the investment income which gained from the
transactional financial assets
Gain the investment income from the
Hold the investment income during from
Dispose the investment income from the
transactional financial assets
Dispose the investment income from the
held-to-maturity investment
Dispose the investment income from the
available-for-sale financial assets
Other
Total 220,193,605.69 253,606,591.16142
2. long-term equity investment incomes confirmed by Cost method include:
Unit
Report period
Same period of
the previous year
Reason to increase or
decrease
Guangfo Expressway
19,662,486.37 86,417,103.78
Decrease the cash
dividend distribution
subsidiary
Guangdong Fokai Expressway
10,524,812.19 41,244,575.15
Decrease the cash
dividend distribution
subsidiary
Total 30,187,298.56 127,661,678.93
3. long-term equity investment incomes confirmed by equity method include:
Unit
Report period
Same period of
the previous year
Reason to increase
or decrease
Guangdong Maozhan
Expressway
10,558,130.38 1,262,018.02
Increase in net
profit affiliated
company
Guangdong Guanghui
Expressway
89,942,507.92 65,725,653.99
Increase in net
profit joint
venture
Zhaoqing Yuezhao Highway
Co.,Ltd.
9,975,863.69 -269,974.56
Increase in net
profit joint
venture
Shenzhen Huiyan Expressway 25,949,602.19 27,255,734.23
Increase in net
profit affiliated
company
Jingzhu Expressway Guangzhu 66,221,849.58 50,786,607.06
Increase in net
profit affiliated
company
Guangdong Jiangzhong
Expressway
3,665,247.95 -97,377.19
Increase in net
profit affiliated143
Unit
Report period
Same period of
the previous year
Reason to increase
or decrease
company
Ganzhou Kangda Expressway -16,306,894.58 -18,717,749.32
Decrease in net
profit affiliated
company
Total 190,006,307.13 125,944,912.23
4. There were no significant limits on investment income of the Company.
（V）. Supplement Information of Cash flow statement
Supplement Information
Report period
Same period of
the previous year
I.Adjusting net profit to net cash flow in operating activities
Net profit 182,063,482.36 228,371,833.46
Add: Asset devaluation reserve provided
Fixed assets depreciation,Oil and gas depreciation, Produce
matter depreciation
699,545.27 716,137.75
Amortization of intangible assets
Amortization of long-term expenses to be amortized
The loss from the disposal of fixed assets, intangible assets
and other long-term assets
-238,066.70
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 23,853,357.57 1,652,609.24
Investment loss -220,193,605.69 -253,606,591.16
Decrease of deferred tax assets
Increase of deferred tax Liabilities
Decrease of inventories
Decrease of operating accounts receivable -706,157.97 28,241,192.41
Increase of operating accounts payable -34,377,642.78 41,719,590.31
Other
Net cash flow generated from operating activities -48,899,087.94 47,094,772.01
II.Investment and financing activities not involving cash receipts144
XII．Supplement Information
(1) Items of Non-recurring Gains & Losses
Items Amount Explanation
Gain/loss form disposal of non-current assets and Provision
for impairment of assets including the preparation of the
write-off part .
10,114,620.23
The
compensation
for the expenses
on disposal of
debris of
Jiujiang Bridge
was accounted
for as
non-operating
income in
current period.
Non-operating
expenses
increased due to
Fokai
Expressway’s
removal of two
old fly-over
bridges for
expansion and
abandonment of
net asset value.
Tax refund, deduction and exemption that is examined and
approved by authority exceeding or has no official approval
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 224,012,998.01 239,631,811.27
Less: Balance of cash at the beginning of the period 113,474,208.24 41,195,556.89
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 110,538,789.77 198,436,254.38145
document.
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.
Capital occupation fee collected from non-financial
organizations and accounted as current gain/loss.
Gain/loss generated when the consolidation costs is less then
the recognizable fair value attributable to the Company.
Non-monetary asset exchange gain/loss.
Gain/loss investment of Commission
Asset impairment provisions for force major such as natural
disasters
Gain/loss from debt reorganization
Enterprise reorganization expenses, such as payment to stuff
placement and consolidation expenses
Gain/loss from trades obviously departed from fair value
Net gain/loss of current term from consolidation of
subsidiaries under common control from beginning of term to
the consolidation date
Gain/loss from debt forcasting without connection to the
main business operation
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;
Single impairment test for impairment of receivables
transferred back to preparation
Commissioned external loans by the Gain/loss
（The use of fair value measurement model of follow-up to
the fair value of real estate investment gains and losses
arising from changes
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;
Entrusted with the operating of the trust to obtain fee income
Net amount of non-operating income and expense except the
aforesaid items
1,253,638.88
Other non-recurring Gains/loss items
Amount of influence of minority interests -2,812,782.34146
Amount of influence of income tax -2,113,268.68
Total 6,442,208.09
Notes : Non-current items listed by before tax amount
（2）Return on net assets and earnings per share
Earnings per share（RMB）
Profit of the report period
Return on net assets,
Weighted (%) Fully diluted Weighted average
Net profit attributable to the
owners of Company. 6.43% 0.19 0.19
Net profit attributable to the
owners of Company after
deducting of non-recurring
gain/loss.
6.26% 0.18 0.18
1.Calculation process
The following data is calculated by these formula:
Weighted average return on equity
Weighted average return on equity=P0/（E0＋NP÷2＋Ei×Mi÷M0–Ej×Mj÷M0±Ek×Mk
÷M0）
Of which：Po 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 is the net profit, which is about repurchase
during the report or cash dividend reduce, and belongs to company common
shareholders.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.
Under the same control with business combination during the report, when calculated
the weighted average net assets yields, the net profit of the combined party has
weighted from the beginning of the report; when calculated the deducting after
non-recurring gains and losses weighted average return on equity, the net profit of the147
combined party started weighted from the next month of the merger date. When
calculated the weighted average net assets return on equity during the period, the net
profit of the combined party and the net asset started on weighted from the beginning
of the comparative period; when calculated the deducting weighted average return on
equity of non-recurring gains and losses from the comparative period, the net asset of
the combined party not weighted. (The weight is zero)
（3）Earnings per share-basis
Earnings per share-basis
Earnings per share-basis=P0÷S
S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0-Sk
Of which：Po refers to net profit attributable to shareholders holding ordinary shares or net
profitattributable to shareholders holding ordinary shares after deducting non-recurring 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.
Earnings per share-diluted
Earnings per share-diluted=P1/（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:P1 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. It has no dilutive at present but it may have dilutive potential common shares after.
There is no event happened in this accounting period.
3. Between the date of the balance sheet to the approved date of financial report, the company
issued the number of common shares or potential common shares have a great variation.148
There is no event happened in this accounting period.
（3）The anomalies and the explanation of our main financial statements project
1. The unusual amount or the abnormal changes in the comparative period in the financial
statement project
Items
Balance in
year-end
Balance in
year-begin
Percentage
in total
asset
Variable
Ratio
Alteration reason
Money fund 597,399,737.09 218,754,995.03 6.00% 173.09%
The net cash inflow from
operating activities and
financing activities is greater
than the net cash outflow
from investing activities.
Account receivable 25,668,410.95 11,873,742.02 0.26% 116.18%
Guangdong United
Electronic Charging Co.,
Ltd. failed to timely make
transfer so that the accounts
receivable at the end of
current period increased.
Dividends receivable 69,459,045.51 0.70%
Dividends receivable from
Jingzhu Expressway
Guangzhu Section Co., Ltd.
that was not received
increased in current period.
Prepayments 364,331,582.77 292,435,314.87 3.66% 24.59%
Due to expansion of Fokai
Expressway, the prepayment
for engineering materials
increased at the end of
period.
Long-term equity
investments
3,086,652,060.79 2,813,284,533.76 30.99% 9.72%
Investment totaling RMB
355 million was made into
Ganzhou Gankang
Expressway Co., Ltd.,
Guangdong Guangle149
Items
Balance in
year-end
Balance in
year-begin
Percentage
in total
asset
Variable
Ratio
Alteration reason
Expressway Co., Ltd. in
current period.
Fixed assets 3,824,298,700.93 4,075,251,730.31 38.40% -6.16%
Net fixed assets decreased in
current period due to receipt
of compensation for project
reconstruction that wrote off
fixed assets and provision
for depreciation of fixed
assets.
Construction-in-progress 1,881,469,204.85 1,388,953,103.98 18.89% 35.46%
The expansion project of
Fokai Expressway was not
completed in current period
so that construction in
progress increased.
Short-term loans 500,000,000.00 654,000,000.00 5.02% -23.55%
The amount of repayment of
short-term loans is greater
than the amount borrowed.
Account payable 183,443,464.74 159,018,048.20 1.84% 15.36%
Due to the expansion of
Fokai Expressway , payable
payment for projects
increased.
Staff Remuneration
Payables
2,154,928.28 4,765,766.41 0.02% -54.78%
The remuneration for which
provision was made in the
previous year was paid in
current period.
Tax payable
22,647,492.26 4,159,074.15 0.23% 444.53%
Unpaid taxes for which
provision was made
increased.
Interest payable
37,371,133.91 16,523,915.41 0.38% 126.16%
Long-term loans increased in
current period so that
end-of-period interest
payable increased.150
Items
Balance in
year-end
Balance in
year-begin
Percentage
in total
asset
Variable
Ratio
Alteration reason
Dividends payable 144,958,039.81 13,205,176.58 1.46% 997.74%
The dividends of the
Company for 2009 has not
been paid.
Long-term loans 3,675,964,803.54 2,820,874,803.54 36.91% 30.31%
Due to the expansion of
Fokai Expressway, long-term
loans increased
correspondingly.
2.The unusual amount or the abnormal changes in the items of the income statement
Items
Balance in
year-end
Balance in
year-begin
Percentage
in total
asset
Variable
Ratio
Alteration reason
Operating
income
501,059,949.79 471,816,749.75 160.01% 6.20%
Jiujiang Bridge was open to
traffic after completion of
repair in June 2009 and
Guangfo Expressway was
open to traffic after completion
of expansion at the end of
2009. As a result, toll income
increased.
Operating costs 241,612,200.11 167,659,678.25 77.15% 44.11%
Jiujiang Bridge was open to
traffic after completion of
repair in June 2009 and
Guangfo Expressway was
open to traffic after completion
of expansion at the end of
2009.The original value of
expressway assets and vehicle
traffic volume increased so151
Items
Balance in
year-end
Balance in
year-begin
Percentage
in total
asset
Variable
Ratio
Alteration reason
that the provision for
depreciation made on basis of
vehicle traffic volume
increased.
Administrative
expenses
47,100,615.59 47,896,913.39 15.04% -1.66%
The administrative expenses in
two periods were basically the
same.
Financial
expenses
82,905,090.06 68,856,572.60 26.47% 20.40%
The Company issued corporate
bonds in September 2009 so
that the financial expenses on
corporate bonds increased year
by year.
Investment
income
190,006,307.13 132,758,229.87 60.68% 43.12%
The net profits of the joint
venture companies and
affiliated companies increased
so that the Company's
investment income accounted
for on equity basis increased.
Non-operating
income
15,990,763.99 1,019,915.03 5.11% 1467.85%
The compensation for the
expenses on disposal of debris
of Jiujiang Bridge was
accounted for as non-operating
income in current period.
Non-operating
expenses
4,622,504.88 477,373.69 1.48% 868.32%
Fokai Expressway removed 2
old fly-over bridges for
expansion and abandoned net
asset value so that152
Items
Balance in
year-end
Balance in
year-begin
Percentage
in total
asset
Variable
Ratio
Alteration reason
non-operating expenses
increased.
Income tax
expense 45,276,305.33 46,465,237.48 14.46% -2.56%
Current income tax expense
remains the same as last term.
XIII. The approval of financial reports
The report of the financial statements was approved by all directors of the board
of directors of the Company on August 6 ,2010.Documents Available for Inspection
153
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 6, 2010.
