广东省高速公路发展股份有限公司
Guangdong Provincial Expressway Development Co.，Ltd.
Semi-Annual Report 2012
1
I Important 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.
The financial report of the semi-annual report has not been audited by the Certified Public Accountants.
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.
2
II Basic Information of the Company
（I）Company information
Code of A-Stock 000429 Code of B-Stock 200429
Guangdong Expressway
Stock A abbreviation Guangdong Expressway A Stock B abbreviation
B
Shenzhen Stock Exchange
Stock exchange for listing
Statutory name of the
广东省高速公路发展股份有限公司
Company in Chinese:
Chinese abbreviation
Statutory name of the
Guangdong Provincial Expressway Development Co.,Ltd.
Company in English
English abbreviation GPED
Legal representative Zhou Yuming
Registered address 85 Banyun Road, Guangzhou, Guangdong Province
Postal Code: 510100
Office address 85 Banyun Road, Guangzhou, Guangdong Province
Postal Code: 510100
Website: www.gpedcl.com
E-mail zqb@gdcg.cn
（II）Contact person and contact manner
Board secretary Securities affairs Representative
Name Zuo Jiang Feng Xinwei
85 Banyun Road, Guangzhou, 85 Banyun Road, Guangzhou,
Contact address
Guangdong Province Guangdong Province
Tel 020-83731388-230 020-83731388-231
Fax 020-83731363 020-83731363
E-mail zuoj@126.com fengxw@gdcg.cn
（III）Information disclosure and placed
Newspapers selected by the Company Securities Times, China Securities, Shanghai Securities Daily and
for information disclosure Hongkong Commercial Daily.
Internet website designated by CSRC
for publishing the Interim report of the www.cninfo.com.cn
Company
The place where the Interim report is
Securities affair Dept of the Company
prepared and placed
3
III Highlights of financial data and indicators
（I）Highlights of financial data and indicators
Whether retroactive adjusted on previous financial report or not
□ Yes √ No
Main accounting data
Increase/decrease in this
Reporting period
Highlights accounting data Same period of last year report period
（January-June）
year-on-year(%)
Operating Gross income 544,249,165.97 513,043,078.52 6.08%
Operating profit 210,278,321.3 247,151,681.3 -14.92%
Total profit 214,804,416.06 196,930,632.47 9.08%
Net profit attributable to the
157,483,597.89 145,165,687.23 8.49%
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
160,029,525.36 172,333,269.24 -7.14%
to the shareholders of listed
company
Cash flow generated by business
324,157,232.77 311,622,476.31 4.02%
operation, net
Changed over last year
End of report year At the end of last year
（％）
Gross Assets 12,528,196,558.7 11,802,427,175.92 6.15%
Shareholders’ equity attributable to
4,200,153,815.94 4,115,126,105.45 2.07%
shareholders of the listed company
Capital stock 1,257,117,748 1,257,117,748 0%
Main financial indices
Increase/decrease in this
Reporting period
Main financial indices Same period of last year report period
（January-June）
year-on-year(%)
Basic gains per share(RMB/Share) 0.13 0.12 8.33%
Diluted gains per share(RMB/Share) 0.13 0.12 8.33%
Basic earning per share after
deducting of non-recurring 0.13 0.14 -7.14%
gains/losses(RMB/Share)
Diluted return on equity （%） 3.75% 3.49% 0.26%
Weighted average return on equity
3.77% 3.35% 0.42%
（%）
Diluted return on equity after
deducting non-recurring gains and 3.81% 4.15% -0.34%
losses（%）
4
Net income on asset, weighted and
3.83% 3.98% -0.15%
deducted non-recurring gain/loss(%)
Net cash flow per share generated by
0.26 0.25 4.02%
business operation (RMB/Share)
Changed over last year
End of report year At the end of last year
（％）
Net asset per share attributable to
shareholders of the listed 3.34 3.27 2.14%
company(RMB/Share)
Assets liabilities ratio(%) 60.61% 59.71% 0.90%
The information of main accounting data and main financial indices of the company by the end of report
period.(Filling the adjustment explanation if retroactive adjusted)
（II）The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable√ Not applicable
2. Simultaneously pursuant to both Chinese accounting standards and overseas accounting standards disclosed in
the financial reports of differences in net income and net assets.
□ Applicable√ Not applicable
3. Significant differences between line items
Explanation on IAS and
Items with major
Amount involved （RMB） Reasons for differences (or) foreign accounting
differences
standards involved
4. The explanation of accounting data from the Statement on differences between the IAS and Domestic
accounting Standard
（III）Items and amount of deducted non-current gains and losses
√Applicable□ Not applicable
Amount
Items Notes
（RMB）
Gain/loss form disposal of non-current assets -3,545,681.93
Tax refund, deduction and exemption that is examined and approved by authority
exceeding or has no official approval 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
5
Company’s business operation.
Capital occupation fee collected from non-financial organizations and accounted as
current gain/loss.
Income from the exceeding part between investment cost of the Company paid for
obtaining subsidiaries associates and joint-ventures and recognizable net assets fair value
attributable to the Company when acquiring the investment.
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 -980,412.83
Other non-recurring Gains/loss items
Amount of influence of minority interests 848,643.13
Amount of influence of income tax 1,131,524.16
Total -2,545,927.47 --
6
IV Particulars about the Changes of Share Capital and Shareholders
(I)Particulars about the Changes of Share Capital
1.Statement of changes in shares
√Applicable□ Not applicable
Before the change Increase/decrease（+，-） After the Change
Amount Proporti Capitaliz
on Share ation of
Bonus Proporti
allotmen common Other Subtotal Quantity
shares on
t reserve
fund
I. Share with
conditional 440,707,188 35.05% -94,288 -94,288 440,612,900 35.05%
subscription
1.State-owned shares 409,920,279 32.61% 16,329 16,329 409,936,608 32.61%
2.Staee-owned legal
22,301,977 1.77% 22,301,977 1.77%
person shares
3.Other domestic
8,484,932 0.67% -110,617 -110,617 8,374,315 0.67%
shares
Of which：Domestic
Non-state –owned 7,661,136 0.61% -70,641 -70,641 7,590,495 0.6%
legal person shares
Domestic natural
627,758 0.05% -50,974 -50,974 576,784 0.05%
person shares
4.Share held by foreign
investors
Of which：Foreign
legal person shares
Foreign natural person
shares
5 .Executive shares 196,038 0.02% 10,998 10,998 207,036 0.02%
II. Shares with
unconditional 816,410,560 64.94% 94,288 94,288 816,504,848 64.95%
subscription
1.Common shares in
467,660,560 37.2% 94,288 94,288 467,754,848 37.21%
RMB
2.Foreign shares in
348,750,000 27.74% 348,750,000 27.74%
domestic market
3.Foregin shares in
overseas market
4.Other
III. Total of capital
1,257,117,748 100% 1,257,117,748 100%
shares
Approval of changes in shares
7
1. In the report period, 22 shares of the shareholders repaid 16,329 counterpart shares to Guangdong
Communication Group Co., Ltd. Confirmed by judicial authorities, part shares of onshore corporation stocks were
converted from “Domestic natural person shares” to “held by state shares”
2. In the report period, 70,641 shares held by domestic legal persons subject to sale restriction were transferred
into shares held by domestic natural persons subject to sale restriction after judical confirmation of rights.
3. In the report period, 105,286 shares held by domestic natural persons subject to sale restriction were unfrozen
and listed for trading and transferred into unrestricted shares on April 18, 2012. For the reasons mentioned in
paragraph 1 and 2, the number of shares held by domestic natural persons decreased by 50,974 shares in total.
4. Mr. Wang Jiachen resigned from the position of chief engineer of the Company. In accordance with Listing
Rules of Shenzhen Stock Exchange, 10,998 unrestricted negotiable shares held by him were transferred into
frozen shares for senior executives.
2.Change in conditional shares
√Applicable□ Not applicable
Conditional Increased Reason of condition
Conditional
Name of the shares at Released this year Date of
shares at end
shareholder beginning of this year releasing
of year
year
At present,，This
Guangdong
shareholders have not
Communication 409,920,279 16,329 409,936,608 Unsure
applied for the lifting of the
Group Co., Ltd.
ban yet.
Guangdong
As mentioned
Expressway 19,582,228 19,582,228 As mentioned above
above
Co., Ltd
Guangdong
Communication As mentioned
589,239 589,239 As mentioned above
Development above
Company
Guangdong
Traffic As mentioned
2,130,510 2,130,510 As mentioned above
Development above
Company
Part of legal shareholders
paid the price of equity
reform on be half of
State-owned Guangdong Communication
legal person and Group Co., Ltd., before As mentioned
8,288,894 105,286 8,167,279
other Domestic they return the price to above
shareholder Guangdong Communication
Group Co., Ltd., their
shares will be limited to
sell.
Directors,
Supervisors , As mentioned
196,038 10,998 207,036 Executive shares
Senior above
Executives
8
Total 440,707,188 105,286 27,327 440,612,900 -- --
（II）The information of issuing shares
1. The information of issuing shares in the previous three years
√Applicable□ Not applicable
The name of Issuing price The quantity of
stocks and its Issuing permitted Transaction
Issuing date （RMB/shares listing date
derivative Quantity listing terminated date
funds ） transaction
Stock
Convertible bonds, Separable-traded convertible bonds, company bonds
09 Guangdong
September 23, October 16, October 15,
Expressway 100 800,000,000 800,000,000
2009 2009 2014
Bond
Stock options
Statement of security issuing in latest three years(please state individually if different interest rates are applied to
each bond)
Document CSRC permit No.(2009) 849 issued by China Securities Regulatory Commission had been approved,
The Company conducted an online public offering of corporate bonds to public investors on September 21, 2009,
and an offline offering of corporate bonds to institutional investors from September 21 to 23, 2009.(The online
public offering code is “101699”, named as “09 Guangdong Expressway Bond”).the amount of current company
bond issuing is RMB 800 million. RMB 100/per bond, The issuing price of each bond is RMB100 yuan. The
Company issued 8 million corporate bonds at the price of RMB100 per bond. The coupon rate is 5.1% and the
term is five years.
China Securities Depository and Clearing Co., Ltd.Shenzhen branch completed registration of corporate bonds in t
he current period on September 28,2009.With the consent of Shenzhen Stock Exchange, company bond will be
listed in Shenzhen Stock Exchange since Oct. 16th, 2009. The short name of the bond is “09 Guangdong
Expressway Bond”, the stock code is “112009”.
2. Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable√ Not applicable
3.Current employees’ shares
□ Applicable√ Not applicable
（III）Shareholders and the substantial controller of the Company
1.Total of shareholders at the end of report term
Number of shareholding accounts at the end of report term was 96,208.
9
2. Particulars about the shareholding of the top ten shareholders
Particulars about the shareholding of the top ten shareholders
Nature of Proportion Quantity of Conditional Pledged or frozen
Name of shareholder
shareholder (%) shares held shares Status Quantity
Guangdong
State-owned 409,936,60 freeze
Communication Group 40.83% 513,316,350 103,379,742
shares 8
Co.,Ltd
Guangdong Expressway State-owned
1.56% 19,582,228 19,582,228
Co., Ltd shares
Foreign
Xinyue Co., Ltd. 1.05% 13,201,086
shares
Guangdong Yuecai
State-owned
Trust Investment CO., 0.97% 12,174,345
shares
Ltd.
China Merchants
Securities Co.,
Public legal
Ltd credit transaction 0.93% 11,643,990
person shares
guarantee securities
accounts
Haerbin Daoli District, Public legal
0.48% 6,022,531
Treasury Services Dept. person shares
China Securities Co.,
Ltd. credit transaction Public legal
0.4% 5,088,633
guarantee securities person shares
accounts
Shanxi Huiteng
Public legal
International Freight 0.29% 3,696,200
person shares
Forwarding Co., Ltd.
STICHTING PGGM Foreign
0.29% 3,599,861
DEPOSITARY shares
Lu Weiqiang Other 0.23% 2,888,848
Notes
Top 10 holders of unconditional shares
√Applicable□Not applicable
Amount of tradable Type and Quantity
shares with
unrestricted
Full name of shareholder
conditions held at Type Quantity
the end of report
period
Guangdong Communication Group Co.,Ltd 103,379,742 A shares 103,379,742
Xinyue Co., Ltd. 13,201,086 B shares 13,201,086
Guangdong Yuecai Trust Investment CO.,
12,174,345 A shares 12,174,345
Ltd.
China Merchants Securities Co., 11,643,990 A shares 11,643,990
Ltd credit transaction guarantee securities
10
accounts
Haerbin Daoli District, Treasury Services
6,022,531 A shares 6,022,531
Dept.
China Securities Co., Ltd. credit
5,088,633 A shares 5,088,633
transaction guarantee securities accounts
Shanxi Huiteng International Freight
3,696,200 A shares 3,696,200
Forwarding Co., Ltd.
STICHTING PGGM DEPOSITARY 3,599,861 B shares 3,599,861
Lu Weiqiang 2,888,848 B shares 2,888,848
Chen Shukai 2,868,220 B shares 2,868,220
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. and
Xinyue 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.
3. Introduction to the controlling shareholder and actual controller
（1）The changing information of the controlling shareholder and actual controller
□ Applicable√ Not applicable
（2）The actual introduction to the controlling shareholder and actual controller
Whether exist new actual controller
□ Yes √ No
State-owned Assets supervision and administration Commission
The Name of the actual controller of Guangdong Provincial People’s Government
The classification of actual controller State-owned Assets supervision and administration Commission
Particulars:
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Zhu
Xiaoling. Date of establishment: August 23, 2000. 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.
(3)The block diagram of the title and control relationship between the Company and actual
controller is as follows:
11
State-owned Assets supervision and administration Commission
of Guangdong Provincial People’s Government
（100%）
Guangdong Communication Group Co., Ltd
（40.83%）
Guangdong Provincial Expressway Development Co., Ltd.
（4）Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable√ Not applicable
4. The other legal person shareholders holding more than 10% shares of the Company.
□ Applicable√ Not applicable
（IV）Information of convertible corporate bonds
□ Applicable√ Not applicable
12
V . Directors, Supervisors, Senior Executives
（I）The changes of holding shares of the directors, supervisors and senior executives
The The Remuneratio
Number of Of which:
increased decreased Number of Final n drawn from
Beginning Ending date shares held at the number
number of number of shares held at numbers of Reason for shareholder
Name Position Sex Age date office of office the of restricted
shares on the shares on the the year-end stock options change entities or
term term year-begin stocks held
report period report period (shares） held（Shares） other related
（shares） （Shares）
（Shares） （Shares） parties or not
Zhou Board January 6, January
Male 59 None No
Yuming chairman 2010 6,2013
Director,
January 6, January
Li Xiyuan General Male 51 None No
2010 6,2013
Manager
Director,
Deputy
General January 6, January
Xiao Laijiu Male 48 11,274 11,274 None No
Manager and 2010 6,2013
General
accountant
Director,
Deputy January 6, January
Hou Jingfang Male 58 None No
General 2010 6,2013
Manager
Luo Director Male 58 January 6, January None Yes
13
Yingsheng 2010 6,2013
Chen November January
Director Female 47 None Yes
Yanqing 8,2011 6,2013
Zhu May 31, January 6,
Director Male 47 None Yes
Zhanliang 2012 2013
Tang Independent January 6, January
Male 51 None No
Qingquan director 2010 6,2013
Independent January 6, January
Wang Jian Male 51 None No
director 2010 6,2013
Independent January 6, January
Feng Ke Male 40 None No
director 2010 6,2013
Independent January 6, January
Wang Pu Male 44 None No
director 2010 6,2013
Chen January 6, January
Supervisor Male 44 5,987 5,987 None Yes
Chuxuan 2010 6,2013
Yang January 6, January
Supervisor Female 33 None Yes
Xiaohua 2010 6,2013
January 6, January
Zou Liming Supervisor Male 47 None No
2010 6,2013
January 6, January
Li Mei Supervisor Female 43 123,205 123,205 None No
2010 6,2013
January 6, January
Tu Huiling Supervisor Female 52 56,887 56,887 None No
2010 6,2013
Wang Deputy January 6, January
Male 48 None No
Chunhua General 2010 6,2013
14
Manager
Chief econo
January 6, January
Yun Wujun mist Male 57 20,043 20,043 None No
2010 6,2013
Chief April January
Wang Ping Female 47 3,500 3,500 None No
engineer 20,2012 6,2013
Head of inter
Peng March 28 January
nal audit Female 49 None No
Xiaofang 28,2012 6,2013
Board January 6, January
Zuo Jiang Female 39 None No
secretary 2010 6,2013
Yang January 6, January
Director Male 60 None Yes
Miaojian 2010 6,2013
Wang Chief January 6, April 20,
Male 47 43,990 43,990 None No
Juachen engineer 2010 2012
Total -- -- -- -- -- 264,886 264,886 -- --
The directors, supervisors and senior managers did not implement equity incentives.
□Applicable√Not applicable
15
（II）Representation information
Representation of shareholders
√Applicable□Not applicable
Whether receiving
Name Name of corporate shareholders Position Term start date Term terminated date remuneration or
subsidy
Supervisor 2002
Guangdong Communication Group
Yang Miaojian Chief legal February 2012 Yes
Co., Ltd. 2008
adviser
Director of
Guangdong Communication Group
Zhu Zhanliang Law affair April 2011 till now Yes
Co., Ltd.
Dept.
Full-time
Guangdong Communication Group
Chen Chuxuan field July 2008 till now Yes
Co., Ltd.
supervisors
Full-time
Guangdong Communication Group
Yang Xiaohua field January 2009 till now Yes
Co., Ltd.
supervisors
Board
chairman,
Luo Yingsheng Guangdong Expressway Co., Ltd Secretary of October 2006 till now Yes
Party
committee,
Deputy
Guangdong Yuecai Trust Investment
Chen Yanqing General October 2008 till now Yes
CO., Ltd.
Manager
The
explanation of In addition, other directors, supervisors, and senior managers are not serving in the company of the shareholders.
Representation
of shareholders
Representation in other unit
√Applicable□Not applicable
Whether received
Service term Service term
Name Other unit Post occupied remuneration from
from ended
other unit or not
16
Professor of a
ccounting of t
he Zhongshan
Tang Qingquan Zhongshan University University sch June 2002 till now Yes
ool of Manage
ment
Member of Party
Guangdong Hengjian Investment committee,
Wang Jian August 2007 till now Yes
Holding Co., Ltd. Deputy General
Manager
School of economic of Beijin The associate
Feng Ke g University professor of fi January 2006 till now Yes
nance
Beijing University Zhongheng
Wang Pu Chief expert 1996 till now Yes
Management Consultation Group
Explanation on
job The above mentioned four as the independent Directors of the company
occupation in
other unit
（III）Information of remuneration about Directors, Supervisors and Senior Executives
The determination of The income of Directors, Supervisors and Senior Executives is to be approved by the shareholders mee
remuneration of Directors, ting；
Supervisors and Senior Remuneration of senior managers by the company's Board of Directors Compensation Committee based
Executives. on their compliance with the duties and performance appraisal
The rewards determined
Remuneration of the directors, supervisors referred to pay levels in the formulation within the industry;
basis of directors,
Senior management remuneration based on the company's labor, personnel and payroll management sys
supervisors and senior
tem
executives
The actual salary payment
information of Directors, Payment on monthly basis.
Supervisors and Senior
（IV）Information about changing Directors, Supervisors and Senior Executives
Name Jobs taken Changed Date of change Cause of change
Peng
Head of internal audit New March 28, 2012 Appointed by the board of directors
Xiaofang
Wang Chief engineer Resignation April 20,2012 Changes in work
17
Jiachen
Appointed by the board of directors
Wang Ping Chief engineer New April 20,2012
Yang
Director Resignation April 20,2012 Retire
Miaojian
Zhu General meeting of Shareholders elections
Director New May 31, 2012
Zhanliang
（V）The Employees
Number of employees in position 1,477
Retired employees on the Company’s expense 75
Composition of professions
Categories of professions Number of persons
Production 1,108
Sales & Marketing 0
Technicians 0
Finance & Accounting 68
Executive 301
Education background
Categories of education Number of persons
Masters’ degree 29
Bachelors’ degree 207
College diploma 652
High school and below 589
Particulars about the employees
18
VI Report of the Board of Directors
(I) Management discussion and analysis
In the first half year of 2012, the volume of vehicle traffic and toll income of the expressways wholly and partly
held by the Company were as follows:
Toll income from Jan to
Traffic volume form Jan Increase
Jun 2012 Increase/Decrease(%)
to June /Decrease(%)
(RMB Million )
2012(million vehicles)
Guangfo Expressway 18.04 1.75% 145.75 -0.19%
Fokai Expressway 13.23 2.75% 362.38 7.78%
Jiujiang Bridge 3.5 -0.29% 26.13 11.46%
Shenzhen Huiyan
13.89 3.15% 131.78 -6.45%
Expressway
Maozhan Expressway 5.38 5.94% 236.82 11.81%
Jingzhu Expressway
23.66 6.04% 539.88 -4.27%
Guangzhu Section
Guangzhao Expressway 9.74 16.83% 218.68 22.31%
Guanghui Expressway 13.78 1.81% 620.65 -12.09%
Jiangzhong Expressway 16.73 7.35% 174.42 1.53%
Kangda Expressway 0.66 8.82% 88.19 28.85%
Gankang Expressway 0.74 -13.42% 59.43 57.20%
In the first half of the year, most of the traffic and toll revenues of equity participation or holding on Eexpressway
by the company keep increasing stably.
The traffic and toll revenue of Guangfo Expressway are essentially flat year-over-year, the toll income of Fokai
Expressway has slightly increased owing to part of the expansion sections completed and resumed, the toll income
of Jiujiang Bridge rises because of the implementation of toll by weight, the toll revenues of Shenzhen Huiyan
Expressway and Jingzhu Expressway (Guangzhou Section) have reduced due to the impact of unified
standardisation of the toll fees of expressway in Guangdong province since June 1, 2012, the traffic and toll
revenue of Yuezhao Expressway all have risen greatly owning to Yunwu Expressway and Phrase II of Yuezhao
Expressway opened to traffic and the road network formed, the roll income of Guanghui Expressway has declined
due to part of the trucks diverted after Guanghe Expressway opened to traffic, the roll income of Jiangzhong
Expressway has risen owning to Guangzhu Expressway West line opened and more of short-distance vehicles
induced, that of Kangda Expressway has been increased because of Shaogan Expressway opened and the road
network formed, and that of Gankang Expressway has risen greatly owning to RuiJin South hinge interconnection
19
of Yirui Expressway opened.
(II) Year-on-year increase/decrease of operating income, operating profit and net profit
Unit：RMB
Year-on-year
January-June 2012 January-June 2011
increase/decrease
Operating income 544,249,165.97 513,043,078.52 6.08%
Operating cost 276,072,432.07 251,728,804.04 9.67%
Operating profit 210,278,321.30 247,151,681.30 -14.92%
Investment income 195,979,887.96 170,469,406.79 14.96%
Net profit attributable to shareholders of the 157,483,597.89 145,165,687.23 8.49%
listed company
The main reason for increase of operating income: Increase of toll income resulted from natural increase of
vehicle traffic volume.
The main reason for the increase of operating cost: Increase of depreciation and labor cost resulted from increase
of vehicle traffic volume.
The main reason for decrease of operating profit: The above-mentioned increase of operating income and
operating cost and year-on-year increase of financial expenses resulted from the Company's issue of medium term
notes, increase of loan principal and interest rate adjustment.
The reason for increase of investment income: The change of profits of joint stock subsidiaries and dividend
distribution of Everbright Bank.
The reason for the decrease of net profit for the shareholders of the Company: In the same period of the previous
year, there was loss of RMB 54.6205 million from the disposal of non-current assets. In the current year, there is
loss of only 0.4112 million.
Description for above 20%of the company's actual business performance than the profit forecast disclosed
publicly during the reporting period
□ Yes √ No
Major subsidiaries of the company, shares of the company's operations and performance analysis
See (I) Management discussion and analysis
20
All the risk factors that maybe have adverse influence on the achievement of future development strategy and
business objective of the company
The toll revenues of road and bridge are main source of the major business income of the company, so, the charge
policy and the charge standard has a great influence on the business revenue of the company. Since the charge
policy is formulated by the relevant regulatory authorities of the country, the company isn't able to forecast and
difficult to influence our country to formulate and revise the charge policy.
The press conference of the special cleaning roll road and the unification of expressway charge standard has hold
by Guangdong People's Government at 10.00 a.m on May 31, 2012. According to the information of this
conference, the charge standard of equity participation or holding on many Eexpressways by the company will be
needed to make adjustment, and the toll revenue has suffered from different impact.
The charge standard of vehicle toll must be submitted to the same level people's government for review and
approval after the transport regulatory department of province, autonomous region or municipality directly under
the central government in conjunction with the price regulatory department at the same level consented upon
examination. Therefore, the adjustment trend of the charge price and the charge price if has the corresponding
adjustment in the future price level when the cost of the company rises still depend on the approval of relevant
national policies and government departments, and the company isn't able to make timely adjustment to the charge
standard in accordance with the its own operation cost or the change of market supply demand. So, the change of
charge policy and the adjustment of charge standard also have influence on the expressways operated by the
company to some extent.
The main response of the company: on the one hand pays close attention to the change of policy, and on the other
hand actively seeks the investment opportunities besides of the main business.
1.Main business and operations
（1）Statement of main business classified according to industries and products
Unit ：RMB
Change of
Increase/decr Increase/decr Gross profit
On industry Income from Cost of key Gross profit ease of key ease of key rate over the
or production key business business rate（％） business business cost same period
turnover（％） （％） of last year
（％）
In terms of business line
Highway
535,692,695.93 270,570,175.56 49.49% 5.54% 8.86% -1.54%
transportation
Other 3,376,659.05 2,801,113.83 17.04% 26.94% 22.38% 3.09%
In terms of product
Toll income 535,692,695.93 270,570,175.56 49.49% 5.54% 8.86% -1.54%
21
Other 3,376,659.05 2,801,113.83 17.04% 26.94% 22.38% 3.09%
Explanation on main business classified according to industries and products.
Explanation on major changes of gross profit over same period of last year
(2)The status of key business in terms of areas
Unit：RMB
Area Income from key business Increase/decrease of income（％）
Guangfo Expressway 146,309,406.68 -0.14%
Fokai Expressway 363,251,687.25 7.59%
Jiujiang bridge 26,131,602 11.46%
Other 3,376,659.05 26.94%
Explanation on main business according to areas
Explanation on main business institution
（3）Explanation on reasons of material changes in main operations and its structure
□ Applicable√ Not applicable
（4）Reasons for the material change of the profitability ( gross profit rate) of the key business compared with the
previous year
□ Applicable√ Not applicable
（5）Analysis of the reasons for the material change of profit structure compared with the previous year
□ Applicable√ Not applicable
(6) Particulars about single joint venture generating investment income that exceeded 10% of the net profit of the
Company
1.Shenzhen Huiyan Expressway Co., Ltd. The Company holds one third equity of this company. The registered
capital of the company is RMB 36 million. The company is engaged in the organization and management of the
construction of the main line of Shenzhen section of Huiyan Expressway, its operation, management and
maintenance after its completion, collection of toll and road service management, the construction management of
road, bridge and culvert projects and engineering consultation. The net profit of this company for Jan - June 2012
was RMB 62.3742 million. The Long-term equity investment income obtained by the Company under Equity
method was RMB 20.0805 million.
2. Jingzhu Expressway Guangzhu Section Co., Ltd. The Company holds 20% equity of this company. The
22
registered capital of the company is RMB 580 million. The company is engaged in the operation and management
of Guangzhou-Zhuhai Expressway and provision of supporting services including fueling, salvage and supply of
parts and components. The net profit of this company for Jan - June 2012 was RMB 272.626 million. The
Long-term equity investment income obtained by the Company under Equity method was RMB 50.6590 million.
3. Guangdong Guanghui Expressway Co., Ltd. The Company holds 30% equity of this company. The registered
capital of the company is RMB 2.352 billion. It is engaged in the investment in and construction of Guanghui
Expressway Co., Ltd. and supporting facilities, the toll collection and maintenance management of Guanghui
Expressway. The net profit of this company for Jan - June 2012 was RMB 201.7919 million. The Long-term
equity investment income obtained by the Company under Equity method was RMB60.5376 million.
4. Zhaoqing Yuezhao Highway Co., Ltd. The Company holds 25% equity of this company. The registered capital
of the company is RMB 818.3 million. It is engaged in the construction, operation and management of Guangzhao
Expressway, old highways and their supporting facilities, service facilities and integrated projects. The net profit
of this company for Jan - June 2012 was RMB 80.7262 million. The Long-term equity investment income
obtained by the Company under Equity method was RMB19.8187 million.
2. Internal control mechanism related with fair-value measurement
□ Applicable√ Not applicable
3.Foreign currency financial assets and financial liabilities held
□ Applicable√ Not applicable
（II）Investment of the Company
1.General application of the raised proceeds
□ Applicable√ Not applicable
2.Commitments on projects of raised funds
□ Applicable√ Not applicable
3.Changes of projects of raised funds
□ Applicable√ Not applicable
4.Investment on major projects of non-raised funds
√Applicable □Not applicable
Unit：RMB’0000
Projects Initial date for Funds Progress Earnings
23
disclosure
The Motion of Investing in
30% Equity of September 11,
256,191.4 None
Guangzhou-Lechang 2009
Expressway Project.
Total 256,191.4 -- --
The actual progress of important investment projects utilizing non-raised funds
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 RMB390 million to Guangle company ,As of June 30,
2012, The company has invested accumulated RMB729.9975 million.
（III）Revising of business plan of the second half of year by the Board
□ Applicable√ Not applicable
（IV）Prediction of Business performance for Jan-Sept 2012.
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable√ Not applicable
（V）The management’s remarks on the “non-standard opinions” by the auditors for the report period
□ Applicable√ Not applicable
（VI）The management’s remarks on any changes in and results of issues related to the “non opinions” by the
auditors for the previous year.
□ Applicable√ Not applicable
（VII）Results of discussion by the Board on the causation and impact of change in accounting policies and
estimations or correction of material accounting errors..
□ Applicable√ Not applicable
24
（VIII）Establishment and Implementation of Cash Dividend Policy of the Company
In the report period, According to the relevant provisions of China Securities Regulatory Commission and
Shenzhen Stock Exchange, and considering reality of the company, the company has made a further improvement
on cash dividend policy, clarified the dividend decision-making mechanism and the dividend supervision &
constraint mechanisms, and made a corresponding amendment to the profit distribution terms in the "Articles of
Association". Also, the company has formulated "Management System on Dividend Payment" and "Shareholder
Returns Plan in the Next Three Years from 2012 to 2014", and submitted the proposal on the Second provisional
General Meeting of Shareholders 2012 held on August 10, 2012, which has been adopted. According to the
resolution passed at the annual shareholders’ general meeting 2011, The Company's dividend distribution plan for
2011: With the existing total share capital, i.e., 1,257,117,748 shares, as the base, cash dividend of RMB 0.50
(including tax) is to be distributed for every 10 shares,Cash dividend of RMB 62,855,887.40 is to be distributed,
The undistributed profit was carried forward to the nest year. The Company had implemented this distribution
plan on July 21，2012. The company has strictly conformed to the "Articles of Association" to implement the
profit distribution policy, establish the cash dividend policy of the company, perform the provisions in line with
the "Articles of Association" and the resolution requirements of General Meeting of Shareholders, define and
clarify the standard and the proportion of dividend, and have the relevant decision-making procedures and
mechanisms prepared completely.
（IX）Profit distribution or capitalizing of common reserves
□ Applicable√ Not applicable
(X)Situation Of positive retained profit at end of 2011 but no cash dividend was proposed
□ Applicable√ Not applicable
（XI）Other Disclosures
In order to standardize the conduct of inside information learner of the company, strengthen the confidentiality of
inside information and maintain the publicity, fairness and impartiality of the company's information disclosure,
the company has formulated the "Management System on Learners of Inside Information" and clarified the scope,
reporting procedures, the registration record management, the confidentiality management of inside information
and the relevant responsibility claim according to the relevant laws and regulations of "Corporate Law",
"Securities Law", "Information Disclosure Management Method of Listed Companies" and "Listing Rules of
Shenzhen Stock Exchange" and the provisions of "Articles of Association".
During the report period, the company has standardized the conduct of information disclosure, strengthened the
training of inside information management, intensified the responsibility and self-discipline consciousness of
inside information learners, and conducted the strict management for periodic reports and other major inside
information. There not exists the situation that the inside information learners use the inside information to deal
with the company's stocks before the disclosure of important sensitive information impacting the company's stock
prices, and the company doesn't have the crackdown by the supervision department.
Whether implemented self-examination and accountability on insiders who dealing with stock of the Company as
25
well as derivative products
（XII）Liabilities, credit changes and cash arrangement for debt paying in later year(only applies to listed
company with corporate convertible bonds offered)
□ Applicable√ Not applicable
26
VII . Important Events
(I) Governance of the Company
The company strictly abides by the requirements of laws and regulations of "Corporate Law", "Securities Law",
"Governance Rules of Listed Companies" and "Listing Rules of Stocks" to continuously perfect the corporate
governance structure and improve the norms operation level. Also, the company has set up the "Articles of
Association", the parliamentary procedure of three meetings operating, the work rules of the special committee of
the Board of Directors, the work rules of General Manager and other systems, as well as the internal control
systems basically covering the company's financial management, investment management, information disclosure,
affiliated transactions, external guarantee, funds-raising and all aspects of business management, and all the
systems have been implemented better.
During the report period, The company has formulated the construction scheme of internal control according to
the relevant provisions of "Listing Rules of Shenzhen Stock Exchange", "Fundamental Norms for Enterprise
Internal Control" and the China Securities Regulatory Commission, and the relevant specific implementation is on
schedule smoothly.
During the report period, On the basis of the existing system, the company has supplemented "Management
System on Dividend Payment", "Work System on Secretary of the Board of Directors" and "Shareholder Returns
Plan in the Next Three Years from 2012 to 2014" according to all the rules, regulations and requirements of the
latest release of the China Securities Regulatory Commission and Shenzhen Stock Exchange. Currently, the actual
governance situation of the company and the requirements related to the normative governance documents of
listed companies released by the China Securities Regulatory Commission is basically consistent.
（II）Dividend plans, reserve capitalizing plans, or share issuing plans proposed in previous period and
implemented in the current period.
√ Applicable □Not applicable
According to the resolution passed at the annual shareholders’ general meeting 2011, The Company's dividend
distribution plan for 2011: With the existing total share capital, i.e., 1,257,117,748 shares, as the base, cash
dividend of RMB 0.5 (including tax) is to be distributed for every 10 shares，that is :
1. Cash dividend of RMB 0.45 is to be actually paid for every 10 shares to individual shareholders of A shares,
investment funds and qualified foreign institutional investors. our company did not withhold the income tax, the
taxpayers would pay the income tax from the local location for the non-resident enterprises
2. Cash of RMB 0.45 is to be paid to individual shareholders and non-resident enterprises holding B shares for
every 10 shares.
Cash dividend of RMB 62,855,887.40 is to be distributed, The undistributed profit was carried forward to the
The Company had implemented this distribution plan on July 18，2012.
27
（III）Material lawsuits
√ Applicable □Not applicable
Date of Serial number of
Joint liability Profile of the Amount claimant Progress of the Results and Progress of
The claimer The defendant Type of claim information the
party claim RMB’0000 lawsuit influence execution
disclosure announcement
The technology 1.In May and On May 8,
company as the August of 2007, 2012, Beijing
holding Guangzhou Higher People's
subsidiary of the Yuexiu issued On May 21,
District Court
Company filed a People's Court (2012) Gao Min 2012,
lawsuit with the and Guangzhou Ti Zi No. 391 Guangdong
People’s Court of Intermediate Written Civil Expressway
Yuexiu District People's Court Judgment to Technology
Guangdong
Guarantee con
of Guangzhou in respectively revoke the Investment Co.,
Expressway
Beijing Gelin
tract dispute
May 2006, made judgment judgment of Ltd. applied to
technology Wang Jianji 800
Enze requesting Wang in the trial of the Beijing First the court for
Investment Co.,
Jianji, as the first and second Intermediate enforcement. At
Ltd
guarantor of instance. 2. The People's Court present, the
Beijing Green Defendant Wang and Xicheng enforcement
Angel Organic Jianji refused to District People's procedure is still
Fertilizer Co., accept the Court. Within 15 being
Ltd. for the judgment and days from the implemented.
RMB8 million applied for effective date of
entrusted loan retrial. In this judgment,
purpose, to September 2008, Gelin Company
28
Guangzhou
Intermediate
People's Court
issued Civil
Ruling Paper to
revoke the shall pay RMB 8
aforesaid million and
judgment. This accrued interest
case was and damages
transferred to (1% of payment)
perform its
Beijing Xicheng to Technology
guarantee
District People's Company with
liabilities, repay
Court for trial. 3. all its assets.
RMB8 million
In April and When Gelin
and accrued
October 2010, Company's assets
interests and
Beijing Xicheng are insufficient to
disburse a default
District People's repay the loan,
fine of RMB
Court and Wang Jianji shall
93,716.00.
Beijing first pay the part that
Intermediate Gelin Company
People's Court fails to pay.
respectively
made judgment
in the trial of the
first and second
instance. 4. Wang
Jianji refused to
accept the final
29
judgment and
applied for
retrial. On May
8, 2012, Beijing
Higher People's
Court issued
(2012) Gao Min
Ti Zi No. 391
Written Civil
Judgment.
On June 15, 2007 1. The incident
morning, the investigation
Nanguiji 035 team of
ship owned by Guangdong
Yang Xiong, Provincial
Foshan Nanhaiyu Government had
Ship Co., Ltd. not made the
Guangdong Yang Xiong,
Infringement heated Jiujiang final report of
Fokai Foshan Nanhai
dispute Bridge on 325 2,558.77 Jiujiang Bridge
Expressway Co., Yuhang Shipping
National Road accident. The
Ltd. Co., Ltd.
owned by the Court, on
controlling November 5,
company of the 2007, decided to
company, and suspend the
resulted in more proceeding.2. In
than 200 meters September 2008,
of Jiujiang Jiujiang Bridge
30
accident
investigation
report was
officially
Bridge collapsed.
reported and
On August 22,
resumed the
2007, Fokai
proceedings.3.
Company
On December 5,
officially
2008,
prosecuted to
Guangzhou
Guangzhou
Marine Court
Maritime Court,
opened a court
asking Foshan
trial to proceeded
South Sea
the case.
Shipping
Currently,
Company
Guangzhou
Limited and
Haizhu
Yang Xiong to
prosecutorial
undertake the
office was intend
conpensation
to prosecute the
25,587,684 yuan
accident captain
for the loss
Shi Guide,
caused by
therefore, on
collapsion of
January 5, 2009,
Jiujiang Bridge.
Guangzhou
Maritime Court
ruled the
suspension of the
31
case. At present,
no further notice
related to this
case has been
received from the
court and its
hearing is still in
suspense.
Material lawsuit or arbitration issues occurred after the last annual report were amounted to RMB 0.
Material lawsuit or arbitration issues presented in the last annual report but was not settled were amounted to RMB 33.5877million.
Provisions provided for the liabilities formed by the lawsuit was RMB0.
Description of the material lawsuit or arbitration issues
(1)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 .
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
32
the (2006) SZFLMZ Zi No. 1146 Written Civil Ruling and the (2006) YFMEC Zi No. 1708 Written Civil Ruling made by the People’s Court of Yuexiu District of
Guangzhou of Guangdong should be rescinded, the (2007) SZFMEZ Zi No. 1057 Paper of Civil Judgment and the (2006) YFMEC Zi No. 1708 Paper of Civil Judgment
made by the People’s Court of Yuexiu District of Guangzhou of Guangdong should be rescinded and this case should be transferred to the People’s Court of Xicheng District
of Beijing for processing. On 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. On October 19, 2010, Guangzhou
Municipal Intermediate People's Court made the final adjudication, rejected accuser's appeal and affirmed the original judgment. Currently, Beijing West District People's
Court has placed this case on file for execution. In November 2010, Technology Company applied to the court for enforcement. In February 2011, the procedure of placing
the case on file was completed. On July 25, 2011, Technology Company received (2011) Gao Min Shen Zi No. 2516 Hearing Notification served by Beijing Higher People's
Court. Wang Jianji refused to accept final judgment and applied for retrial. Beijing Higher People's Court held the opinion that the conditions for retrial were satisfied and
judged to put the case on trial on December 19, 2011. During retrial, the enforcement of the original judgment suspended. The court session for the retrial is to be opened on
March 19, 2012, has not received the judgment from the court
On May 8, 2012, Beijing Higher People's Court issued (2012) Gao Min Ti Zi No. 391 Written Civil Judgment to revoke the judgment of Beijing First Intermediate People's
Court and Xicheng District People's Court. Within 15 days from the effective date of this judgment, Gelin Company shall pay RMB 8 million and accrued interest and
damages (1% of payment) to Technology Company with all its assets. When Gelin Company's assets are insufficient to repay the loan, Wang Jianji shall pay the part that
Gelin Company fails to pay. On May 21, 2012, Guangdong Expressway Technology Investment Co., Ltd. applied to the court for enforcement. At present, the enforcement
procedure is still being implemented.
（2）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. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa No. 332 ruling book issued by
33
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 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.
34
（IV）Bankruptcy or capital reorganizing
□ Applicable√ Not applicable
（V）Holding other PLC’S shares or participating of financial entities
1. Securities investment
□ Applicable√ Not applicable
Statement on securities investment
2. Holding of other PLC’S shares
√ Applicable □Not applicable
Changes of
Initial Profits or Subject of
Stock Proportion of Book value at owners’ Resource of
Stock code investment losses in the accounting
abbreviation shareholding period-end equity in the share
amount report period calculation
report period
Financial
China
assets Subscribe on
601818 Everbright 528,000,000 0.72% 681,600,000 31,920,000 -9,600,000
available for 2009
Bank
sale
Total 528,000,000 -- 681,600,000 31,920,000 -9,600,000 -- --
Statement on holding of other PLC’s shares
3.Shareholding in non-listed financial entities
√ Applicable □Not applicable
Changes of
The Loss and gain
Initial owner’s Accounting
Name of proportion to Book value at in the Origin of
investment Number held equity in the calculation
subjects held the equity of period end reporting equity
amount reporting subjects
the company period
period
Huaxia Long-term
Shareholder
Securities 5,400,000 5,400,000 0.27% 0 0 0 equity
investment
Co., Ltd. investment
Huazheng Long-term Dividend
Assets 1,620,000 1,620,000 0.54% 226,800 0 0 equity Investmen
Management investment t
35
Co., Ltd.
Kunlun Long-term
Securities 30,000,000 30,000,000 5.74% 0 0 0 equity Purchased
Co., Ltd. investment
Total 37,020,000 37,020,000 -- 226,800 0 0 -- --
Statement on shareholding in non-listed financial entities
4.Trading of other PLC’S shares
□ Applicable√ Not applicable
Statement on trading of other PLC’S shares.
（VI）Asset trade
1. Acquisition or swap in of assets
□ Applicable√ Not applicable
Statement on acquisition of assets.
2. Disposal or swap out of assets
□ Applicable√ Not applicable
Statement on disposal of assets
3.Asset exchange
□ Applicable√ Not applicable
Statement on asset exchange.
4.Merger of entities
□ Applicable√ Not applicable
36
5. The progress of the event after the publishing of asset reorganization report or announcement of acquisition or
disposal of assets and its influence on the operating results and financial status for the report period.
□ Applicable√ Not applicable
（VII）Statement on share increasing proposal raised by the holding shareholder or its action-in-concert parties in
the report period
□ Applicable√ Not applicable
（VIII）Implementation and influences of share equity incentive program
□ Applicable√ Not applicable
37
（IX）Important Related transactions
1.Related transactions related to daily operation
□ Applicable√ Not applicable
2.Related transactions related to asset purchasing or disposal
□ Applicable√ Not applicable
3.Material related transactions related to collaborated external investment
□ Applicable√ Not applicable
4. Credits/Debts with Related Parties
√Applicable □ Not applicable
The Company's financing to related party(RMB’0000) Financing of related party to the Company(RMB’0000)
Interest Intere
Balance at Refun Balance at Refun
Balance at Balance at st
Related parties related relation the d amo Interest the d amo Interest
beginning
Amount
unt
the end of expens beginning
Amount
unt
the end of expen
return return
period e period se
of period of period
The controlling Parent
Guangdong Guanghui Expressway 199.39 199.39
Company
The controlling Parent
Guangdong Expressway 8 18.44 26.44
Company
Guangdong Lulutong Co., Ltd. The controlling Parent 1.8 1.8
38
Company
The controlling Parent
Guangdong Kaiyang Expressway 55.92 55.92
Company
The controlling Parent
Yunfu Guangyun Expressway 8.6 8.6
Company
Guangdong Changda Highway The controlling Parent
8,145.64 2,994.98 2,324.9 8,815.72
Engineering Co., Ltd. Company
Guangdong Guanyue Luqiao The controlling Parent
3,496.97 730.86 925.21 3,302.62
Co.,Ltd. Company
Guangdong Hualu
The controlling Parent
Communication Technology Co., 20 20
Company
Ltd.
Guangdong Guanyue Luqiao The controlling Parent
157.6 157.6
Co.,Ltd. Company
Guangdong Litong Property The controlling Parent
210.03 70.01 140.02
Investment Co., Ltd. Company
The controlling Parent
Guangdong Guanghui Expressway 50 50
Company
The controlling Parent
Guangdong Kaiyang Expressway 6.24 39.95 46.19
Company
The controlling Parent
Guangdong Maozhan Expressway 1.57 13.48 3.2 11.85
Company
The controlling Parent
Guangdong Yunwu Expressway 0.26 10.46 10.71
Company
Guangdong Gaoda Property The controlling Parent
9.15 9.15
Development Co., Ltd. Company
39
Yunfu Guangyun Expressway Co., The controlling Parent
8.3 8.3
Ltd. Company
Guangdong Highway Construction The controlling Parent
4.82 4.82
Co., Ltd. Company
The controlling Parent
Guangdong Shanfen Expressway 2.45 2.45
Company
The controlling Parent
Guangdong Yuzhan Expressway 1.43 0.94 2.37
Company
The controlling Parent
Guangdong Zhanxu Expressway 2.33 2.33
Company
The controlling Parent
Guangdong Shanshan Expressway 0.66 0.66
Company
Guangdong Guangshao The controlling Parent
0.38 0.38
Expressway Company
Guangdong Xinyue
The controlling Parent
Communication Investment Co., 0.22 0.22
Company
Ltd.
The controlling Parent
Guangdong Expressway Co., Ltd. 481.86 481.86
Company
The controlling Parent
Guangdong Yangmao Expressway 13.06 13.06
Company
Beijing Gelin Enze Affiliated company 1,222.01 1,222.01
Guangdong Expressway Wholly owned
1,000 1,000
Technology Investment Co., Ltd. subsidiary
Guangdong Expressway Wholly owned
13.63 13.63
Technology Investment Co., Ltd. subsidiary
40
Guangdong Expressway Wholly owned
10.35 10.35
Technology Investment Co., Ltd. subsidiary
Controlling
Guangfo Expressway 4,891.56 4,891.56
Subsidiary
Controlling
Guangfo Expressway 16,000 15,000 1,000
Subsidiary
Controlling
Guangfo Expressway 31.69 500.36 1.82 470.5
Subsidiary
Zhaoqing Yuezhao Highway Co.,
Joint venture 141.87 141.87
Ltd.
Zhaoqing Yuezhao Highway Co.,
Joint venture 41.28 23.32 22.68 41.93
Ltd.
5,444.3
Jingzhu Expressway Guangzhu Affiliated company 5,444.34
4
Guangdong Guanghui Expressway Joint venture 3,621.54 3,000 621.54
29,005.
Total 44,054.83 5,068.92 20,602.23 484.13
64
The amount that the company provided to
the controlling shareholder of the company
and its subsidiaries during the reporting per 4,035.25
iod
（RMB’0000）
The balance of the funds that the company provided to the
controlling shareholder of the company and its 12,813.02
subsidiaries（RMB’0000）
Project funds, quality guarantees funds, deposits and other operational funds and other operational
The reason of the associated debt
funds flowing
41
The settlement status of the associated debt
The commitment about the associated debt
The impact of the associated debt on the co
mpany's operating results and financial posi
tion
Including：In the report period, RMB 40.3525 million were offered to controlling shareholders and its subsidiary by listed company, balance amounting to RMB
128.1302 million.
Fund occupation and progress of paying off
□ Applicable√ Not applicable
Till end of reporting period, accountability plan proposed by the Board for completed no non-operational fund occupation from listed company
□ Applicable√ Not applicable
42
5. Other Important Related transactions
（X）Important contracts and their performance
1.Trusteeship , contract, or leasing issues which contributes 10% or over of total profit of the
period
（1）Trusteeship
□ Applicable√ Not applicable
（2）Contracts
□ Applicable√ Not applicable
（3）Leasing
□ Applicable√ Not applicable
2.Guarantees
√Applicable □ Not applicable
Unit：RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Guarante
Relevant e
Date of
disclosure Complete for
happening Actual
Name of the date/No. of Amount of Guarantee Guarantee implemen associate
(Date of mount of
Company the Guarantee type term tation d
signing guarantee
guaranteed or not parties
agreement)
amount (Yes or
no)
Guangdong
May 11,
Communication 150,000 May 31, 2012 150,000 Impawn No Yes
2012
Group Co., Ltd.
Total of external guarantee Total of actual external
150,000 150,000
approved in Period(A1) guarantee in Period(A2)
Total of external guarantee 150,000 Total balance of actual 150,000
43
approved at Period-end(A3) external guarantee at
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Total of actual guarantee
Total of guarantee for subsidiaries
for subsidiaries in the
approved in the Period (B1)
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
for subsidiaries at
approved at Period-end (B3)
Period-end (B4)
Total of Company’s guarantee（namely total of the large two aforementioned）
Total of actual guarantee in
Total of guarantee in the Period
the Period
(A1+B1)
(A2+B2)
Total of actual guarantee at
Total of guarantee at Period-end
Period-end
(A3+B3)
(A4+B4)
The proportion of the total amount of actually
guarantee in the net assets of the Company(that is A4+
B4)
Including：
Amount of guarantee for shareholders, actual controller and its
associated parties(C)
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed
70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of
the Company exceed 50%(E)
Total guarantee amount of the abovementioned
guarantees(C+D+E)
44
Explanations on possibly bearing joint and several liquidating
responsibilities for undue guarantees
Remarks on illegal providing of external guarantee
3.Entrusted capital management
□ Applicable√ Not applicable
4.Performing of material contracts
5.Other material contracts
□ Applicable√ Not applicable
（XI）Statement on issuing of company bonds
√Applicable □ Not applicable
Document CSRC permit No.(2009) 849 issued by China Securities Regulatory Commission had
been approved, The Company conducted an online public offering of corporate bonds to public
investors on September 21, 2009, and an offline offering of corporate bonds to institutional
investors from September 21 to 23, 2009.(The online public offering code is “101699”, named as
“09 Guangdong Expressway Bond”).the amount of current company bond issuing is RMB 800
million. RMB 100/per bond, The issuing price of each bond is RMB100 yuan. The Company
issued 8 million corporate bonds at the price of RMB100 per bond. The coupon rate is 5.1% and
the term is five years.
China Securities Depository and Clearing Co., Ltd.Shenzhen branch completed registration of cor
porate bonds in the current period on September 28,2009.With the consent of Shenzhen Stock
Exchange, company bond will be listed in Shenzhen Stock Exchange since Oct. 16th, 2009. The
short name of the bond is “09 Guangdong Expressway Bond”, the stock code is “112009”.
(XII)Fulfilling of commitments
1.Commitments made by the Company or shareholders holding above 5% shares of the Company
in reporting period or extending to reporting period.
□ Applicable√ Not applicable
2.Explanation on assets or projects that reached the original profit forecast as well as its reasons
while the reporting period still in forecast period, and there are profit forecast on assets or projects
45
of the Company.
□ Applicable√ Not applicable
（XIII）Other misc. income subjects
Unit：RMB
Items Occurred current term Occurred in previous term
1．Gains(losses)from sellable financial assets -9,600,000 -146,400,000
Less：Income tax influence of sellable financial assets
Net amount written into other gains and transferred into gain/loss in
previous terms
Subtotal -9,600,000 -146,400,000
2．Shares in the other misc. income subjects in the investee on equity
basis
Less：income tax influence of shares in other gains of investees on
equity basis
Net amount written into other gains and transferred into gain/loss in
previous terms
Subtotal
3．Amount of gains(or losses) from cash flow hedge instrument
Less: Income tax influence of cash flow hedge instruments
Net amount written into other gains and transferred into gain/loss in
previous terms
Adjusted amount transferred to initial amount of the target project
Subtotal
4．Difference from translating of foreign currency financial statements
Less: Net amount of disposing overseas Business and transferred to
current gain/loss
Subtotal
5．Other
Less：Income tax influence by other accounted into other misc. incomes
Net amount accounted into other misc. income and transferred into
current gain/loss in previous terms
Subtotal
Total -9,600,000 -146,400,000
46
（XIV）The registration form of acceptance of investigation, communication and interview in the
report period for future reference
Content of discussion and
Date Place Mode Type Visitor
materials provided
（XV）Engagement and removal of certified public accountants
If the Semi-annual Report is audited
□ Yes √ No
（XVI）Punishment on the Company and/or the directors, supervisors, executives,
shareholders, substantial controller, and purchasers, and correcting of misbehaviors
□ Applicable√ Not applicable
（XVII）Other Material events
□ Applicable√ Not applicable
（XVIII）Material change in profit ability, asset, and credit situation of the guarantor
of the convertible bonds
（Only applies to listed company with corporate convertible bonds offered）
□ Applicable√ Not applicable
（XIX）Index for information disclosed
Name and layout of Website for publishing and searching
Matter Date of publishing
newspapers for publishing path
Securities Times, China
Securities, Shanghai
Announcement of the 21st Securities Daily and
(Provisional) Meeting of the Hongkong Commercial January 20,2012 www.cninfo.com.cn
Sixth Board of Directors Daily.
Securities Times, China
Securities, Shanghai
Announcement of the 22nd Securities Daily and
(Provisional) Meeting of the Hongkong Commercial February 14, 2012 www.cninfo.com.cn
Sixth Board of Directors Daily.
Notice of Holding the First Securities Times, China
provisional Shareholders’ Securities, Shanghai February 14, 2012 www.cninfo.com.cn
General Meeting Securities Daily and
47
Hongkong Commercial
Daily.
Securities Times, China
Securities, Shanghai
Announcement of 2011 Securities Daily and
Preliminary Earnings Estimate Hongkong Commercial February 16, 2012 www.cninfo.com.cn
Daily.
Securities Times, China
Securities, Shanghai
Announcement of the 23rd Securities Daily and
(Provisional) Meeting of the Hongkong Commercial February 25, 2012 www.cninfo.com.cn
Sixth Board of Directors Daily.
Securities Times, China
Securities, Shanghai
Supplement Announcement of Securities Daily and
the 23rd (Provisional) Meeting Hongkong Commercial February 25, 2012 www.cninfo.com.cn
of the Sixth Board of Directors Daily.
Securities Times, China
Securities, Shanghai
Announcement of Resolutions Securities Daily and
of the First Provisional Hongkong Commercial March 1, 2012 www.cninfo.com.cn
Shareholders’ General meeting Daily.
Legal opinion of the First
Provisional Shareholders’ None March 1, 2012 www.cninfo.com.cn
General meeting in 2012
Securities Times, China
Securities, Shanghai
Independent Directors’ Securities Daily and
Opinions Hongkong Commercial March 30, 2012 www.cninfo.com.cn
Daily.
The explanation and op
inions of the independe
nt directors about comp None March 30, 2012 www.cninfo.com.cn
any’s external guarante
e information
48
Internal control framew
ork implementation of t
None March 30,2012 www.cninfo.com.cn
he work program
The report on work of the indep
endent directors of 2011 None March 20, 2012 www.cninfo.com.cn
The explanation and opinions
of the Independent directors
concerning other related party None March 30, 2012 www.cninfo.com.cn
about occupying company's
funds information of 2011
Annual Report 2011 None March 30, 2012 www.cninfo.com.cn
Internal control self-assessment
reports of 2011 None March 30, 2012 www.cninfo.com.cn
The audit report of the
related funds between a
None March 30, 2012 www.cninfo.com.cn
ssociated companies
Securities Times, China
Announcement of Resolutions Securities, Shanghai
of the 14th (Provisional) Securities Daily and
Meeting of the Sixth Hongkong Commercial March 30, 2012 www.cninfo.com.cn
Supervisory Committee Daily.
Securities Times, China
Securities, Shanghai
Announcement of the 24th Securities Daily and
(Provisional) Meeting of the Hongkong Commercial March 30, 2012 www.cninfo.com.cn
Sixth Board of Directors Daily.
Annual audit report of
2011 None March 30, 2012 www.cninfo.com.cn
Securities Times, China
Summary of 2011 Annual Securities, Shanghai
March 30, 2012 www.cninfo.com.cn
Report Secuties Daily and
Hongkong Commercial
49
Daily.
Securities Times, China
Suggestive announcem Securities, Shanghai
ent of releasing shares Securities Daily and
with sale conditions Hongkong Commercial April 14, 2012 www.cninfo.com.cn
Daily.
lists of 22 released limited shar
eholders None April 14, 2012 www.cninfo.com.cn
Securities Times, China
Independent directors‘ opi
Securities, Shanghai
nions of the 25th (Provisio
Securities Daily and
nal) Meeting of the Sixth B
Hongkong Commercial April 23, 2012 www.cninfo.com.cn
oard of Directors
Daily.
The First Quarterly Report
None April 23, 2012 www.cninfo.com.cn
2012(Full text)
Securities Times, China
Announcement of Resolutions Securities, Shanghai
th
of the 15 (Provisional) Securities Daily and
Meeting of the Sixth Hongkong Commercial April 23, 2012 www.cninfo.com.cn
Supervisory Committee Daily.
Securities Times, China
Securities, Shanghai
Announcement of the 25th Securities Daily and
(Provisional) Meeting of the Hongkong Commercial April 23, 2012 www.cninfo.com.cn
Sixth Board of Directors Daily.
Securities Times, China
Securities, Shanghai
Securities Daily and
The First Quarterly Report Hongkong Commercial April 23, 2012 www.cninfo.com.cn
Daily.
The report summary of
the shareholding hypot None May 11, 2012 www.cninfo.com.cn
hecation of Guangdong
50
Province Fokai Expres
sway Co., Ltd.
shareholders all rights a
nd assets assessment
The opinions of the Ind
ependent directors conc
erning the Company's p
roviding counter guaran
None May 11, 2012 www.cninfo.com.cn
tee to Guangdong Com
munication Group Co.,
Ltd.
Securities Times, China
Announcement On External Securities, Shanghai Securities
May 11, 2012 www.cninfo.com.cn
Guarantee Daily and Hong Kong
Commercial Daily.
Announcement of resolutions Securities Times, China
of the 26th (Provisional) Securities, Shanghai Securities
May 11, 2012 www.cninfo.com.cn
Meeting of the Sixth Board of Daily and Hongkong
Directors Commercial Daily.
Announcement of Resolutions Securities Times, China
of the 16th (Provisional) Securities, Shanghai Securities
May 11, 2012 www.cninfo.com.cn
Meeting of the Sixth Daily and Hongkong
Supervisory Committee Commercial Daily.
Securities Times, China
Notice of Holding of 2011
Securities, Shanghai Securities
annual shareholders’ General May 11, 2012 www.cninfo.com.cn
Daily and Hongkong
Meeting
Commercial Daily.
Securities Times, China
Suggestive announcement of
Securities, Shanghai Securities
Holding of 2011 annual May 24, 2012 www.cninfo.com.cn
Daily and Hongkong
shareholders’ General Meeting
Commercial Daily.
Securities Times, China
Announcement of the 27th
Securities, Shanghai Securities
(Provisional) Meeting of the May 30, 2012 www.cninfo.com.cn
Daily and Hongkong
Sixth Board of Directors
Commercial Daily.
The Secretary of the board of
directors working system None May 30, 2012 www.cninfo.com.cn
（May 2012）
Securities Times, China
Announcement on Important
Securities, Shanghai Securities June 1, 2012 www.cninfo.com.cn
Events
Daily and Hongkong
51
Commercial Daily.
Securities Times, China
Announcement of Resolutions
Securities, Shanghai Securities
of 2011 Annual shareholders’ June 1, 2012 www.cninfo.com.cn
Daily and Hongkong
General Meeting
Commercial Daily.
Legal opinion of 2011 Annual
None June 1, 2012 www.cninfo.com.cn
shareholders’ General Meeting
The Corporate bond trustee Ma
nagement Services report of 20 None June 1, 2012 www.cninfo.com.cn
09（2011）
www.cninfo.com.cn
52
VIII Finacial Report (Uncensored)
1. Consolidated Balance sheet
Prepared by:：Guangdong Provincial Expressway Development Co., Ltd.
Unit：RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 1,260,099,335.12 1,018,999,531.05
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable
Account receivable 40,578,972.27 17,726,118.11
Prepayments 154,634,390.01 144,982,896.65
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable 6,215,431.47 90,658,881.05
Other account receivable 37,772,830.36 37,983,304.82
Repurchasing of financial assets
Inventories
Non-current asset due in 1 year
Other current asset
Total of current assets 1,499,300,959.23 1,310,350,731.68
Non-current assets：
Loans and payment on other’s behalf disbursed
Disposable financial asset 681,600,000 691,200,000
Expired investment in possess
Long-term receivable
Long term share equity investment 3,048,999,709.45 2,918,288,171.88
Property investment 5,308,931.38 5,541,038.08
Fixed assets 3,924,351,008.07 4,063,417,803.17
Construction in progress 3,319,291,782.82 2,760,092,723.87
53
Items Notes Year-end balance Year-beginning balance
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 49,003,885.71 53,166,163.9
R & D petrol
Goodwill
Long-germ expenses to be amortized 340,282.04 370,543.34
Differed income tax asset
Other non-current asset
Total of non-current assets 11,028,895,599.47 10,492,076,444.24
Total of assets 12,528,196,558.7 11,802,427,175.92
Current liabilities
Short-term loans 1,041,470,000 891,470,000
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Bill payable
Account payable 147,307,074.01 135,228,709.74
Advance payment 4,978,886.06 5,392,391.2
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 3,148,758.58 2,002,220.57
Tax payable 30,669,192.33 13,070,029.12
Interest payable 91,666,971.39 37,161,794.55
Dividend payable 91,946,474.11 29,154,211.1
Other account payable 350,548,280.35 319,750,258.89
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 910,610,000.00 384,200,000
54
Items Notes Year-end balance Year-beginning balance
Other current liability
Total of current liability 2,672,345,636.83 1,817,429,615.17
Non-current liabilities：
Long-term loan 3,003,474,803.54 3,309,764,803.54
Bond payable 1,791,972,908.14 1,790,792,109.05
Long-term payable 2,022,210.11 2,022,210.11
Special payable
Expected liabilities
Differed income tax liability 123,055,998.03 126,663,710.47
Other non-current liabilities
Differed income 4,920,525,919.82 5,229,242,833.17
Total of liability 7,592,871,556.65 7,046,672,448.34
Owners’ equity
Share capital 1,257,117,748 1,257,117,748
Capital reserves 1,688,358,715.57 1,697,958,715.57
Less：Shares in stock
Special reserves
Surplus reserves 191,496,386.02 191,496,386.02
Common risk provision
Undistributed profit 1,063,180,966.35 968,553,255.86
Different of foreign currency translation
Total of owner’s equity belong to the parent company 4,200,153,815.94 4,115,126,105.45
Minority shareholders’ equity 735,171,186.11 640,628,622.13
Total of owners’ equity 4,935,325,002.05 4,755,754,727.58
Total of liabilities and owners’ equity 12,528,196,558.7 11,802,427,175.92
Legal representative ：Zhou Yuming
Person-in-charge of the accounting work：Li Xiyuan
Person-in -charge of the accounting organ：Xiao Laijiu
55
2. Balance sheet of the Parent Company
Unit：RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 810,885,058.55 701,899,352.28
Trading financial assets
Bill receivable
Account receivable
Prepayments
Interest receivable 18,222.22 316,891.66
Dividend receivable 55,131,007.81 139,574,457.39
Other account receivable 6,009,810.94 3,657,454.9
Inventories
Non-current asset due in 1 year
Other current asset 10,000,000 160,000,000
Total of current assets 882,044,099.52 1,005,448,156.23
Non-current assets：
Disposable financial asset 681,600,000 691,200,000
Expired investment in possess
Long-term receivable
Long term share equity investment 5,073,758,278.97 4,763,046,741.4
Property investment 5,056,793.13 5,288,899.83
Fixed assets 6,118,468.99 5,837,841.17
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets
R & D petrol
Goodwill
Long-germ expenses to be amortized 335,238.4 335,238.4
Differed income tax asset
56
Items Notes Year-end balance Year-beginning balance
Other non-current asset
Total of non-current assets 5,766,868,779.49 5,465,708,720.8
Total of assets 6,648,912,879.01 6,471,156,877.03
Current liabilities
Short-term loans 481,470,000 481,470,000
Trade off financial liabilities
Bill payable
Account payable
Advance payment
Employees’ wage payable 328,469.48 88,015.62
Tax payable 250,911.13 1,912,304.18
Interest payable 84,111,047.15 29,720,154.33
Dividend payable 75,641,281.99 12,849,018.98
Other account payable 107,918,815.1 109,125,634.87
Non-current liability due in 1 year
Other current liability 91,769,621.41 65,542,566.45
Total of current liability 841,490,146.26 700,707,694.43
Non-current liabilities：
Long-term loan
Bond payable 1,791,972,908.14 1,790,792,109.05
Long-term payable 2,022,210.11 2,022,210.11
Special payable
Expected liabilities
Differed income tax liability
Other non-current liabilities
Total of Non-current liabilities 1,793,995,118.25 1,792,814,319.16
Total of liability 2,635,485,264.51 2,493,522,013.59
Owners’ equity
Share capital 1,257,117,748 1,257,117,748
Capital reserves 1,688,506,856.32 1,698,106,856.32
Less：Shares in stock
Special reserves
Surplus reserves 191,496,386.02 191,496,386.02
57
Items Notes Year-end balance Year-beginning balance
Undistributed profit 876,306,624.16 830,913,873.1
Different of foreign currency translation
Total of owners’ equity 4,013,427,614.5 3,977,634,863.44
Total of liabilities and owners’ equity 6,648,912,879.01 6,471,156,877.03
58
3. Consolidated Profit statement
Unit：RMB
Items Notes Report period Same period of the previous year
I. Income from the key business 544,249,165.97 513,043,078.52
Incl：Business income 544,249,165.97 513,043,078.52
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 529,950,732.63 436,360,804.01
Incl：Business cost 276,072,432.07 251,728,804.04
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 20,126,545.91 18,846,946.7
Sales expense
Administrative expense 77,632,477.02 60,950,667.18
Financial expenses 156,261,654.01 104,842,371.93
Asset impairment loss -142,376.38 -7,985.84
Add：Gains from change of fair value
（“-”for loss）
Investment gain（“-”for loss） 195,979,887.96 170,469,406.79
Incl: investment gains from affiliates 164,059,887.96 147,765,406.79
Gains from currency exchange
（“-”for loss）
III. Operational profit（“-”for loss 210,278,321.3 247,151,681.3
Add：Non-business income 5,298,494.57 4,541,890.38
Less：Non business expenses 772,399.81 54,762,939.21
Incl：Loss from disposal of non-current
411,158 54,620,542.73
assets
IV.Total profit(“-”for loss) 214,804,416.06 196,930,632.47
59
Less：Income tax expenses 32,590,527.41 40,695,134.57
V. Net profit（“-”for net loss 182,213,888.65 156,235,497.9
Including: Net profit realized by the entity
taken over before the takeover
Net profit attributable to the owners of
157,483,597.89 145,165,687.23
parent company
Minority shareholders’ equity 24,730,290.76 11,069,810.67
VI. Earnings per share： -- --
（I）Basic earnings per share 0.13 0.12
(II)Diluted earnings per share 0.13 0.12
VII. Other comprehensive income -9,600,000 -146,400,000
VIII. Total comprehensive income 172,613,888.65 9,835,497.9
Total comprehensive income attributable to the
147,883,597.89 -1,234,312.77
owner of the parent company
Total comprehensive income attributable
24,730,290.76 11,069,810.67
minority shareholders
Enterprise combination under same controlling at the end of current period. the net
profit for the enterprise to be combined is 0.00.
Legal representative ：Zhou Yuming
Person-in-charge of the accounting work：Li Xiyuan
Person-in -charge of the accounting organ：Xiao Laijiu
60
4. Profit statement of the Parent Company
Unit：RMB
Items Notes Report period Same period of the previous year
I. Income from the key business 4,612,807.08 1,790,886.95
Incl：Business cost 232,106.7 232,106.7
Business tax and surcharge 261,714.98 101,901.46
Sales expense
Administrative expense 40,952,010.35 31,963,844.23
Financial expenses 75,266,402.98 31,472,815.56
Asset impairment loss
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 220,348,068.29 199,722,496.76
Incl: investment gains from affiliates 164,059,887.96 147,765,406.79
III. Operational profit（“-”for loss 108,248,640.36 137,742,715.76
Add：Non-business income 3,391,900
Less：Non business expenses 1.9 230
Incl：Loss from disposal of
non-current assets
IV.Total profit(“-”for loss) 108,248,638.46 141,134,385.76
Less：Income tax expenses
V. Net profit（“-”for net loss） 108,248,638.46 141,134,385.76
VI. Earnings per share： -- --
（I）Basic earnings per share
(II)Diluted earnings per share
VII. Other comprehensive income -9,600,000 -146,400,000
VIII. Total comprehensive income 98,648,638.46 -5,265,614.24
61
5. Consolidated Cash flow statement
Unit ：RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or rending of
517,434,755.24 502,947,560.33
services
Net increase of customer deposits and capital
kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other
financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned
Other cash received from business operation 22,799,498.85 20,242,091.83
Sub-total of cash inflow 540,234,254.09 523,189,652.16
Cash paid for purchasing of merchandise and
56,034,700.62 67,332,165.99
services
Net increase of client trade and advance
Net increase of savings n central bank and
brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 88,289,960.91 67,207,759.01
Taxes paid 38,835,269.22 26,230,492.43
Other cash paid for business activities 32,917,090.57 50,796,758.42
Sub-total of cash outflow from business
216,077,021.32 211,567,175.85
activities
62
Items Report period Same period of the previous year
Cash flow generated by business operation, net 324,157,232.77 311,622,476.31
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 149,711,799.97 185,600,689.22
Net cash retrieved from disposal of fixed
assets, intangible assets, and other long-term 4,734,559.6 62,807
assets
Net cash received from disposal of subsidiaries
or other operational units
Net cash received from disposal of subsidiaries
or other operational units
Sub-total of cash inflow due to investment
154,446,359.57 185,663,496.22
activities
Cash paid for construction of fixed assets,
514,521,507.91 364,026,349.12
intangible assets and other long-term assets
Cash paid as investment 290,000,000
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment
514,521,507.91 654,026,349.12
activities
Net cash flow generated by investment -360,075,148.34 -468,362,852.9
III.Cash flow generated by financing
Cash received as investment 77,935,000 48,897,500
Incl: Cash received as investment from minor
77,935,000 48,897,500
shareholders
Cash received as loans 1,308,690,000 786,000,000
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
1,386,625,000 834,897,500
activities
Cash to repay debts 938,570,000 547,000,000
Cash paid as dividend, profit, or interests 165,569,467.02 126,890,429.62
Incl: Dividend and profit paid by subsidiaries
8,122,726.78
to minor shareholders
63
Items Report period Same period of the previous year
Other cash paid for financing activities 5,470,000
Sub-total of cash outflow due to financing
1,109,609,467.02 673,890,429.62
activities
Net cash flow generated by financing 277,015,532.98 161,007,070.38
IV. Influence of exchange rate alternation on cash
2,186.66 -9,339.08
and cash equivalents
V.Net increase of cash and cash equivalents 241,099,804.07 4,257,354.71
Add: balance of cash and cash equivalents at
1,018,999,531.05 258,881,333.75
the beginning of term
VI.Balance of cash and cash equivalents at the
1,260,099,335.12 263,138,688.46
end of term
64
6. Cash flow statement of the Parent Company
Unit：RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or rending of services
Tax returned
Other cash received from business operation 29,376,454.51 14,495,007.95
Sub-total of cash inflow 29,376,454.51 14,495,007.95
Cash paid for purchasing of merchandise and
services
Cash paid to staffs or paid for staffs 26,123,947.3 17,539,401.1
Taxes paid 325,058.59 67,738.05
Other cash paid for business activities 17,222,675.65 14,401,140.87
Sub-total of cash outflow from business
43,671,681.54 32,008,280.02
activities
Cash flow generated by business operation, net -14,295,227.03 -17,513,272.07
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 174,079,980.3 185,600,689.22
Net cash retrieved from disposal of fixed assets,
13,500
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other cash receivable for investment activities 164,804,783.32 101,572,247.5
Sub-total of cash inflow due to investment
338,884,763.62 287,186,436.72
activities
Cash paid for construction of fixed assets,
969,239 508,036
intangible assets and other long-term assets
Cash paid as investment 180,000,000 436,692,500
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities 10,000,000 205,000,000
Sub-total of cash outflow due to investment
190,969,239 642,200,536
activities
Net cash flow generated by investment 147,915,524.62 -355,014,099.28
65
Items Report period Same period of the previous year
III.Cash flow generated by financing
Cash received as loans
Cash received from bond placing 315,990,000 386,000,000
Other financing –related ash received
Sub-total of cash inflow from financing
315,990,000 386,000,000
activities
Cash to repay debts 315,990,000 50,000,000
Cash paid as dividend, profit, or interests 19,166,777.98 7,719,200.23
Other cash paid for financing activities 5,470,000
Sub-total of cash outflow due to financing
340,626,777.98 57,719,200.23
activities
Net cash flow generated by financing -24,636,777.98 328,280,799.77
IV. Influence of exchange rate alternation on cash
2,186.66 -9,339.08
and cash equivalents
V.Net increase of cash and cash equivalents 108,985,706.27 -44,255,910.66
Add: balance of cash and cash equivalents at the
701,899,352.28 179,597,767.35
beginning of term
VI.Balance of cash and cash equivalents at the end
810,885,058.55 135,341,856.69
of term
66
7. Consolidated Statement on Change in Owners’ Equity
Report period
Unit：RMB
Amount of the Current term
Owner’s equity Attributable to the Parent Company
Items Less: Comm Minor
Special Total of
Shares on risk shareholders’
Share Capital Capital reserves ized Surplus reserves Attributable profit Other owners’ equity
in provisi equity
reserve
stock on
I.Balance at the end of last year 1,257,117,748 1,697,958,715.57 191,496,386.02 968,553,255.86 640,628,622.13 4,755,754,727.58
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
1,257,117,748 1,697,958,715.57 191,496,386.02 968,553,255.86 640,628,622.13 4,755,754,727.58
current year
III.Changed in the current year -9,600,000 94,627,710.49 94,542,563.98 179,570,274.47
（I） Net profit 157,483,597.89 24,730,290.76 182,213,888.65
（II）Other misc.income -9,600,000 -9,600,000
Total of (I) and (II) -9,600,000 157,483,597.89 24,730,290.76 172,613,888.65
(III) Investment or decreasing
0 0 0 0 0 0 0 0 77,935,000 77,935,000
of capital by owners
67
Amount of the Current term
Owner’s equity Attributable to the Parent Company
Items Less: Comm Minor
Special Total of
Shares on risk shareholders’
Share Capital Capital reserves ized Surplus reserves Attributable profit Other owners’ equity
in provisi equity
reserve
stock on
1. Capital inputted by owners 77,935,000 77,935,000
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 0 0 0 0 0 0 -62,855,887.4 0 -8,122,726.78 -70,978,614.18
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
-62,855,887.4 -8,122,726.78 -70,978,614.18
shareholders)
4．Other
(V) Internal transferring of
0 0 0 0 0 0 0 0 0 0
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
68
Amount of the Current term
Owner’s equity Attributable to the Parent Company
Items Less: Comm Minor
Special Total of
Shares on risk shareholders’
Share Capital Capital reserves ized Surplus reserves Attributable profit Other owners’ equity
in provisi equity
reserve
stock on
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
（VII）Other
IV. Balance at the end of this
1,257,117,748 1,688,358,715.57 191,496,386.02 1,063,180,966.35 735,171,186.11 4,935,325,002.05
term
69
Amount of the previous term
Unit：RMB
Amount of the previous term
Owner’s equity Attributable to the Parent Company
Items Less: Comm Minor
Special Total of owners’
Shares on risk shareholders’
Share Capital Capital reserves ized Surplus reserves Attributable profit Other equity
in provisi equity
reserve
stock on
I.Balance at the end of last year 1,257,117,748 1,957,158,715.57 164,481,109.54 904,494,101.24 516,723,439.8 4,799,975,114.15
Add：Retrospective adjustment
caused by merger of entities
under common control
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
1,257,117,748 1,957,158,715.57 164,481,109.54 904,494,101.24 516,723,439.8 4,799,975,114.15
current year
III.Changed in the current year -259,200,000 27,015,276.48 64,059,154.62 123,905,182.33 -44,220,386.57
（I） Net profit 216,786,205.9 7,086,956.05 223,873,161.95
（II）Other misc.income -259,200,000 -259,200,000
Total of (I) and (II) -259,200,000 216,786,205.9 7,086,956.05 -35,326,838.05
70
(III) Investment or decreasing
0 0 0 0 0 0 0 0 140,962,500 140,962,500
of capital by owners
1. Capital inputted by owners 140,962,500 140,962,500
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 0 0 0 0 27,015,276.48 0 -152,727,051.28 0 -24,144,273.72 -149,856,048.52
1.Providing of surplus reserves 27,015,276.48 -27,015,276.48
2.Providing of common risk
provisions
3．Allotment to the owners (or
-125,711,774.8 -24,144,273.72 -149,856,048.52
shareholders)
4．Other
(V) Internal transferring of
0 0 0 0 0 0 0 0 0 0
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by
surplus reserves.
4. Other
71
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this
1,257,117,748 1,697,958,715.57 191,496,386.02 968,553,255.86 640,628,622.13 4,755,754,727.58
term
72
8. Statement of change in owner’s Equity of the Parent Company
Amount of the Current term
Unit：RMB
Amount of the Current term
Items
Less: Specializ Common
Share Capital Capital reserves Shares in ed Surplus reserves risk Attributable profit Total of owners’ equity
stock reserve provision
I.Balance at the end of last year 1,257,117,748 1,698,106,856.32 191,496,386.02 830,913,873.1 3,977,634,863.44
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
1,257,117,748 1,698,106,856.32 191,496,386.02 830,913,873.1 3,977,634,863.44
current year
III.Changed in the current year -9,600,000 45,392,751.06 35,792,751.06
（I） Net profit 108,248,638.46 108,248,638.46
（II）Other misc.income -9,600,000 -9,600,000
Total of (I) and (II) -9,600,000 108,248,638.46 98,648,638.46
(III) Investment or decreasing of
0 0 0 0 0 0 0 0
capital by owners
1. Capital inputted by owners
73
Amount of the Current term
Items
Less: Specializ Common
Share Capital Capital reserves Shares in ed Surplus reserves risk Attributable profit Total of owners’ equity
stock reserve provision
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 0 0 0 0 0 0 -62,855,887.4 -62,855,887.4
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
-62,855,887.4 -62,855,887.4
shareholders)
4．Other
(V) Internal transferring of
0 0 0 0 0 0 0 0
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
74
Amount of the Current term
Items
Less: Specializ Common
Share Capital Capital reserves Shares in ed Surplus reserves risk Attributable profit Total of owners’ equity
stock reserve provision
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this
1,257,117,748 1,688,506,856.32 191,496,386.02 876,306,624.16 4,013,427,614.5
term
75
Amount of the previous term
Unit：RMB
Amount of the previous term
Items
Less: Specializ Common
Share Capital Capital reserves Shares in ed Surplus reserves risk Attributable profit Total of owners’ equity
stock reserve provision
I.Balance at the end of last year 1,257,117,748 1,957,306,856.32 164,481,109.54 713,488,159.63 4,092,393,873.49
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
1,257,117,748 1,957,306,856.32 164,481,109.54 713,488,159.63 4,092,393,873.49
current year
III.Changed in the current year -259,200,000 27,015,276.48 117,425,713.47 -114,759,010.05
（I） Net profit 270,152,764.75 270,152,764.75
（II）Other misc.income -259,200,000 -259,200,000
Total of (I) and (II) -259,200,000 270,152,764.75 10,952,764.75
(III) Investment or decreasing of
0 0 0 0 0 0 0 0
capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners’ equity
76
Amount of the previous term
Items
Less: Specializ Common
Share Capital Capital reserves Shares in ed Surplus reserves risk Attributable profit Total of owners’ equity
stock reserve provision
3. Other
（IV）Profit allotment 0 0 0 0 27,015,276.48 0 -152,727,051.28 -125,711,774.8
1.Providing of surplus reserves 27,015,276.48 -27,015,276.48
2.Providing of common risk
provisions
3．Allotment to the owners (or
-125,711,774.8 -125,711,774.8
shareholders)
4．Other
(V) Internal transferring of
0 0 0 0 0 0 0 0
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(VI) Special reserves
77
Amount of the previous term
Items
Less: Specializ Common
Share Capital Capital reserves Shares in ed Surplus reserves risk Attributable profit Total of owners’ equity
stock reserve provision
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this
1,257,117,748 1,698,106,856.32 191,496,386.02 830,913,873.1 3,977,634,863.44
term
78
I.Basic Information of the Company
1.The Company was established in February 1993, which was originally named as Guangdong Fokai Expressway Co.,
Ltd.
On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co., Ltd. after reorganization
pursuant to the approval of the Office of Joint Examination Group of Experimental Units of Share Holding System with
YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge Co.
and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong State-owned Asset Management
Dept., i.e.,RMB 418.2136 million, was converted into 155.025 million shares. Guangdong Expressway Co. invested
cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons invested cash of RMB 286.992
million to subscribe for 89.685 million shares. Staff of the Company invested RMB 87.008 million to subscribe for
27.19 million shares. The total is 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 yuan/sheres in term of
“payable in full on application, pro-rate placing and subject to refund” with the par value of each share being RMB 1 in
January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant to the
approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of CSRC with
ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249 million shares at the price of
RMB 11 per Right.73,822,250 ordinary shares were actually placed to all
79
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, 2012, the quantity of the shares subject to sale restriction held by senior executives is 207,036.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized capital
common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000, i.e.,
838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May 22,
2001.
11．On March 8, 2004,As approved by China Securities Regulatory Commission by document Zheng-Jian-Gong-Si-Zi
[2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at the
shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “The
approval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the share
equity relocation and transformation. On October 9 2006, according to the “Circular about implementing of share
equity relocation and relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’s A
shares was restored from “G-Expressway” “Expressway A”.
（II）The Company’s Organizational structure and the actual cortroller
As of June 30, 2012，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 , Security Affairs Department, Management Development , Financial Management
Development , Base construction Department, Audit and Supervise Department, Affairs Department, Personnel
Department , Party Work Departmen, Law affairs Department and Labour union etc.
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, 2012,Registered capital: RMB 26.8 billion. It is a solely
state-owned limited company. Business scope：equity management, organization of asset reorganization and optimized
allocation, raising funds by means including mortgage, transfer of property rights and joint stock system transformation,
project investment, operation and management, traffic infrastructure construction, highway and railway project
operation and relevant industries, technological development, application, consultation and services, highway and
railway passenger and cargo transport, ship industry, relevant overseas businesses（if the above mentioned business
scope requires licenses to operate, then operation licenses are required）.
（III）The Company’s main business and share, holding company
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
80
concurrently engaged in automobile transport and warehousing supporting its business.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and Jiujiang
Bridge, investment in technological industries and provision of relevant consultation while investing in Shenzhen
Huiyan Expressway Co., Ltd., Guangdong Maozhan Expressway Co.,Ltd, Guangzhou Guanghui Expressway Co.,
Ltd.,Jingzhu Expressway Guangzhu Co., Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao
Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd. And Guangzhou
Guangle Expressway Co., Ltd. <0}
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.
Furthermore, all the materials of financial statements of the company meet the relevant disclosure requirements of
financial statements and notes on the “Editing and Reporting Rules Regarding Information Disclosure for Companies
Publicly Issuing Securities No. 15 – General Provisions of Financial Statements” promulgated and revised by China
Securities Regulatory Commission in 2010.
(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.
81
The direct costs for the business combination of the company, including the expenses for audit, assessment and legal
services, shall be recorded into the profits & losses at the current period.
The handling fees, commissions & other expenses for the issuance of equity securities for the business combination
shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be
offset.
Where the accounting policies adopted by the combined parties are different from those adopted by the company, the
company shall adjust them on the combining date according to the accounting policy it adopts, and shall, pursuant to
the Accounting Standards for Enterprises, recognize them on the basis of such adjustments.
2. Business Combinations not under the Same Control
The assets paid as the consideration for the business combination & the liabilities assumed on the acquisition date shall
be measured in accordance with the fair value. The difference between the fair value & its carrying amount shall be
recorded into the profits & losses at the current period.
The company will distribute the combination costs on the acquisition date.
The company shall recognize the positive balance between the combination costs & the fair value of the identifiable net
assets it obtains from the 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
82
the consolidated financial statements should be consistent with those adopted by the company. If the accounting
policies & accounting periods adopted by the subsidiaries are different from those adopted by the company, the
company shall make necessary adjustments according to the accounting policies & accounting periods it adopts when
preparing the consolidated financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity method, the company shall
prepare the consolidated financial statements based on the financial statements of the company & its subsidiaries, and
other related documents.
The influences of the internal transactions between the company & its subsidiaries, and its subsidiaries themselves on
the consolidated balance sheet, consolidated profit statement, consolidated cash flow statement & consolidated
statement of changes in owner’s equity will be counteracted at the preparation of the consolidated financial statements.
The portion of a subsidiary’s equity that is not attributable to the parent is treated as minority shareholders’ interest and
presented as “minority interest” in the consolidated balance sheet within owners’ equity. The portion of net profits or
losses of subsidiaries for the period attributable to minority interest is presented in the consolidated income statement
below the “net profit” line item as “minority interest”. In the consolidated financial statements, when the amount of loss
for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders’ portion of the
opening balance of owners’ equity of the subsidiary, the excess amount should be still allocated against minority
interest.
In the report period, If the subsidiary is added through the business combination under the same control, the beginning
balance of the consolidated balance sheet shall be adjusted. The incomes, expenses & profits of the subsidiary incurred
from the beginning of the current period to the end of the reporting period shall be included into the consolidated profit
statement. The cash flow from the beginning of the current period to the end of the reporting period shall be included
into the consolidated cash flow statement.
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.
For purchase of minority interests held by the minority shareholders of a subsidiary, when preparing the consolidated
financial statements, the difference between the long-term equity investment newly gained by buying minority interests
and the portion of net assets consistently calculated from the acquisition date (or the consolidation date) pursuant to
newly added shareholding percentage entitled by the subsidiary should be adjusted to the owners’ equity (the capital
reserve). If the capital reserve is not sufficient to absorb the difference, any excess is adjusted against retained earnings.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from the
beginning of the subsidiary to the disposal date shall be included into the consolidated profit statement. The cash flow
from the beginning of the subsidiary to the disposal date shall be included into the consolidated cash flow statement.
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（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 tools
1. Categories of financial Tools
The Company divides the financial assets into four categories: financial assets measured at fair value and their
variations are recognized as current gain/loss, including trade financial assets or financial liabilities and recognized
directly as financial assets measured at fair value and their variations are recognized as current gain/loss; Investment
hold till expiration; loans and account receivable; saleable financial assets .The company divides the financial liabilities
into two categories: financial liabilities measured at fair value and their variations are recognized as current gain/loss;
other financial liabilities.
2. Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond interests) is
recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus
adjust the gain/loss of fair value.
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(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses is recognized as
initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when the
difference between the actual rate and face rate is minor) during the period of holding, and accounted as investment
gains. Actual rate is recognized when obtained, and is not changed in the predictable holding period or applicable
shorter period.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
If the company sells or reclassifies large-amount due investments before the expired date (large amount refers to
comparing with the amount before the selling or reclassifying the investments), the company will reclassify the rest of
the investments as financial assets for sale, and in the current accounting period or within two complete accounting
years, no financial assets will be classified as holding due assets, except for the following situations: the sale date or
reclassification date is close to the expired date of the investment (such as three months before the expired), and the
change of interest rate has no significant influence on the fair value of the investment; after all the initial principal is
mostly recovered according to periodic payments or repay in advance regulated in the contract, the rest part will be sold
or reclassified; the sale and reclassification is caused by the independent events which are uncontrollable
and unexpected and will not happen any more.
(3) Account receivable
The receivable debts of selling goods or providing services, and the credits of other company hold by the company not
including the debt which has price in active market, including accounts receivable, notes receivable, prepaid accounts,
other receivables, long-term receivables, etc. The contract or agreement price charging from purchaser should be taken
as the initial confirmation amount; if it has the nature of financing, it should be confirmed according its current value.
When retrieved or disposed of, the difference between the actual received amount and the book value is accounted as
current gain/loss.
(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond 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.
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(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade expenses. Successive
measurement will be on the basis of amortized costs.
3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is terminated if almost all
risks and rewards attached to the asset have been transferred to the acceptor. If retain all the risks and rewards of
ownership of financial assets, the financial assets can be confirmed.
When determine whether the transfer of financial assets meet the conditions of confirmation of the above financial
assets, the principle of substance being more important than form should be adopted. The transfer of financial assets
can be divided into overall transfer and part transfer of financial assets. If the transfer of financial assets meet the
conditions of terminating confirmation, the following the difference of the two amounts will be included in the current
profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally
accounted as owners’ equity (when the asset to be transposed is saleable financial asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book value of the transferred
financial assts, the difference between the confirmed part and the unconfirmed part (in this case, the service assets
retained should be deemed as the part of unconfirmed financial assets), should be amortized in accordance with their
relative fair value, and the difference between the following two amount should be included current profit and loss:
① Book value of the confirmed part;
②All fair values of financial assets and financial liabilities are recognized with reference to the price in the active
market.
If the transfer of financial assets does not meet the conditions of terminating confirmation, the financial assets should
be confirmed again, the prices received will recognized as financial liabilities.
4.the conditions to stopping the financial liabilities
The obligation of financial liabilities are already cancelled which should be stopped confirming the financial liability or
the part of it. Our company could stop confirming the currently financial liability and begin to confirm the newly
financial liability if the loaner made an agreement that they would assume the new way of financial liability which
replace the current one, and make sure the newly financial liability is totally different from the old one in contract with
our company.
Stop admitting the financial liability or a part of it, and at mean time we could admit the newly financial liability 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.
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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. Accounts receivable with material specific amount and specific provisioned bad bebt preparation.
（1）Judgment criteria or amount standard of material specific amount or amount criterial：the accounts receivable
whose single amount is over RMB 1 million & accounts for over 10% of the accounts receivable amount.
（2）Provision method with material specific amount and provision of specific bad debt preparation：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.
2. The accounts receivable of bad debt provisions made by Group
（1）Recognition basis of credit risk feature portfolio：the accounts receivable whose single amount is over RMB 1
million & accounts for over 10% of the accounts receivable amount. the accounts receivable under 5 years of age which
are not significant without any business connections any more.
（2）Counting & drawing method according to credit risk feature portfolio：
①The adopting aging analysis method：
Resere proportion for Reserve Proportion for other
Aging
accounts receivable (%) receivables(%)
Within 1 year(Including 1 year) 0 0
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Resere proportion for Reserve Proportion for other
Aging
accounts receivable (%) receivables(%)
1－2 years 10 10
2－3 years 30 30
3－4 years 50 50
4－5 years 90 90
Over 5 years 100 100
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.
②The accounts receivable of bad debt provisions withdrawn by adopting other methods：
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. Recognition Standard and Counting & Drawing Method of Bad Debt Reserves for the Accounts Receivable Whose
Single Amount Is not Significant
（1）The accounts receivable under 5 years of age which are not significant without any business connections any
more.
Account receivable with non-material specific amount but specific bad debt preparation:
the accounts receivable under 5 years of age which are not significant without any business connections any more.
（2）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 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.
（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.
4. Inventory System:Adopts the Perpetual Inventory System
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（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. 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
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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 the 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
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being invested should also be resumed, and at the same time, the investment income should be confirmed.
（3）Disposal of a long-term equity investment
On disposal of a long term equity investment, the difference between the proceeds actually received and the carrying
amount is recognized in profit or loss for the current period. For a long-term equity investment accounted for using the
equity method, any changes in the owners’ equity of the investee other than net profits or losses included in the owners’
equity of the investing enterprise, shall be transferred to profit or loss for the current period on a pro-rata basis
according to the proportion disposed of.
(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.
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.
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（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 assets
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.
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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 Annual depreciation rate
value 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%-4.85%
Machine Equipment 10 years 3%—10% 9%-9.7%
Transportation Equipment 5-8 years 3%—10% 11.25%-19.4%
Electric Equipment and other equipment 5-15 years 3%—10% 6 %-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 amount 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.
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（16）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 future 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.
（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.
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The assets meeting capital conditions refer to the fixed assets, investment real estates and inventories which are
constructed or produced in a long time to reach the predicted use or sale state.
When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct or produce the assets
which meet the capitalization conditions, and expend by cash or transferring non-cash assets or bearing interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization, the
period of the break of capitalization of Loan costs is not included.
When the construction or production meets the intended use or sale of state of capitalization conditions, the Loan costs
should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used individually, the
capitalization of the loan costs of the assets should be stopped.
Where each part of a asset under acquisition and construction or production is completed separately and is ready for use
or sale during the continuing construction of other parts, but it can not be used or sold until the asset is entirely
completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.
.3 Capitalization Suspension Period
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If the
interruption is a necessary step for making the qualified asset under acquisition and construction or production ready
for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs incurred
during such period shall be recorded into the profits & losses at the current period, till the acquisition and construction
or production of the asset restarts.
4. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the asset which satisfies
the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less weighted average of
specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied. 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
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(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,amortization of concession and interest charges meeting the
capitalization conditions and othe direct costs that occur before the intangible assets meeting the predetermined
objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.
The intangible assets that have limited serviceable life are amortized by the straight-line method during the period
when the assets can bring about economic interests;The intangible assets are deemed as uncertain serviceable life and
are not amortized if it is impossible to expect the period when the assets could bring about economic interests.
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
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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 payable
When the company is issuing bonds, the total price issued should be included in the "payable bonds" subject.
The difference between bond issuance total amount and the total amount of bond face 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 incomes of the company mainly include: The toll service income, providing labor services.
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;
97
(3). The progress of completion of the service can be reliably identified.
（22）Government subsidies
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.
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 non-operating 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 non-operating
earnings; When the subsidies are used to compensate the relevant expenses or loss that occurred, the subsidies are
directly charged to the current non-operating earnings.
(23)Deferred income tax assets and deferred income tax liabilities
The company is likely to determine the deferred income tax assets produced from deductible temporary differences
with the limit of offsetting the taxable income of temporary difference.
The Company confirms the temporary differences of the taxable that is not paid in the current and prior periods as the
deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger and those
will affect either accounting profit or the temporary differences of the taxable income when the transactions occur are
not included in the deferred income tax liabilities.
（24）Accounting Methods of Income Tax
The company’s income tax is accounted in Balance Sheet Liability Approach.
The company recognizes the sum of current income tax and deferred tax as the income tax expenses (or incomes) in the
income statement on the basis of calculating and determining the income tax of the current period (namely the current
taxes payable) and the deferred tax (the deferred tax expenses or incomes), but excluding the effects of the business
combination and the income taxes related to the transactions or events directly recorded in the owner’s rights and
interests.
（25）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
98
No Changing of Major accounting estimations in report term.
(26)Correcting of accounting errors in the prior period
No changing of accounting errors in the prior period
III. Taxation
(I)Turnover tax and surcharges
1.Turnover tax
Type of taxes Taxable Items Tax ratio
Business tax Toll income 3%、5%
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.
3．.Education surcharges
Calculated and paid at 3% of the turnover tax.
4.Local Education surcharges
Calculated and paid at 2% of the turnover tax.
5.Defend expense
Calculated and paid at 0.1% or 0.12% of the turnover tax.
(II) Enterprise income tax
According to “Provisional Regulations of Enterprise Income Tax of PRC”, the Company pays enterprise income tax at
25%.
IV.Enterprise Consolidated and Consolidated Financial Statement
（I）Informationof subsidiaries
1.The subsidiary acquired through the establishment or investment and other means.
99
Name of Business
Type Registered address Registered capital Operating scope
subsidiary nature
Investment in technical industries and provision
of relevant consulting services, research and
development of lighting technology of City and
Road, energy saving and storage technology,
Guangdong 4/F,Expressway
Expressway Holding Technology photovoltaic technology of solar energy and
Builidin No.85
Technology subsidiaries Baiyun, Investment 100,000,000.00 production and sales of relevant products, design,
Investment Yuexiu ,
and production, release and agency of all kinds of
Co., Ltd. Guangzhou
Consultation domestic and foreign advertisements, construction
and maintenance management of highway
projects and domestic trade. (excluding gold,
silver, motor vehicles and dangerous chemicals)
On table
The balance between current losses
Balance of other assumed by minority shareholders’
The year end’s essenfaly Whether Amount deducted from owners’ equity
Equity Voting
Name of consolida Minority deduct from
holding power
actual amount of constituting net te hareholderminority belongs to parent company and the
percenta
subsidiary （%） financial ’ equity shareholders’
capital investment investment in ge minority shareholders’ attributable
statement equity
subsidiar share of owners’ equity at the
opening balance
Guangdong
Expressway
Technology 95,920,000.00 100.00 100.00 Yes
Investment
Co., Ltd.
2.The Subsidiary through business combination under the same control
Name of Registered Business
Type Registered capital Operating scope
subsidiary address nature
HoldingWest Express
Construction, tolling, maintenance and management of
Guangfo subsidiar Shabei, way Guangfo Expressway, automobile fueling, Form
Expressway 200,000,000.00
Co., Ltd. ies Guangzh Manage Hengsha Guangzhou to Foshan xiebian，A total length
of 15.7 km, salvage, maintenance and cleaning up.
ou ment
No.83 Operation and management of Fokai Expressway and
Holding Express its supporting facilities, automobile salvage,
Guangdong Baiyun maintenance and cleaning, supply of automobile parts
Fokai subsidiar way and components, maintenance and management of
Expressway Road,Yu 1,108,000,000.00
ies Manage Jiujiang Bridge of Guangzhan Highway. Auto rescue
Co., Ltd. exiu, and repair (operated by subsidiaries). Sales of industrial
ment capital goods (excluding gold, silver, motor vehicles
Guangzh
and dangerous chemicals), construction materials,
100
ou department goods, needles, textiles, metals,
cross-powers.
On table
Balance of
TThe balance betwee
other Whet urrent
her
essenfaly cons Amount losses assumed by
The year end’s Equity Voting minority shareholders’
Name of constitutin holding olidat Minority deduct from
power e shareholders’ minority deducted from owners’
actual amount of
subsidiary g net percent equity belongs to parent
finan equity shareholders’
capital investment age （%） company and the minority
investment cial equity
state shareholders’ attributable
in ment share of owners’ equity a
the opening balance
subsidiary
Guangfo
Expressway 242,151,386.98 75.00 75.00 Yes 72,072,575.06
Co., Ltd.
Guangdong
Fokai
Expressway 2,537,173,165.77 75.00 75.00 Yes663,098,611.05
Co., Ltd.
3.The Subsidiaries through business combinations not under the same control
None.
(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
None.
V. Notes to the major items of consolidated financial stateme
Unless otherwise specified, in the following notes to the items in theconsolidated financial statements: the beginning of
the period refers to the day of December 31, 2011, the end of the period refers to the day of June 30, 2012, The
previous period refers to January –June 2011, and the current period refers to January- June 2012.
（I）Monetary Capital
Amount in year-end Amount in year-begin
Items Foreign
Foreign currency Exchange rate RMB Exchange rate RMB
currency
Cash 136,250.36 84,289.76
101
Amount in year-end Amount in year-begin
Items Foreign
Foreign currency Exchange rate RMB Exchange rate RMB
currency
RMB 136,250.36 84,289.76
Bank deposit 1,259,422,364.41 1,017,878,434.19
RMB 1,259,027,971.69 1,017,486,248.01
HKD 483,786.86 0.8152 394,392.72 483,762.40 0.8107 392,186.18
Other currency 540,720.35 1,036,807.10
RMB 540,720.35 1,036,807.10
Total 1,260,099,335.12 1,018,999,531.05
Which restricted the monetary funds as follows：
Items Amount in year-end Amount in year-begin
Tolls clearing account funds 19,579,994.85 12,073,656.90
Total 19,579,994.85 12,073,656.90
（2）Account receivable
1.Classification accojunt receivables.
Amount in year-end
Classification Book Balance Bad debt provision
Amount Proportion(%) Amount Proportion(%)
Receivables with major individual amount and
38,005,712.26 93.63
bad debt provision provided individually
Receivables provided bad debt provision in
2,587,212.44 6.37 13,952.43 0.54
groups
Incl:account reveivables on which bad debt
2,587,212.44 6.37 13,952.43 0.54
provisions are provided on age basis
Account receivable with minor individual
amount but bad debt provision is provided
Total 40,592,924.70 100.00 13,952.43 0.03
On table
Amount in year- begin
Classification Book Balance Bad debt provision
Amount Proportion(%) Amount Proportion(%)
102
Receivables with major individual amount and
14,496,628.58 81.72
bad debt provision provided individually
Receivables provided bad debt provision in
3,243,441.96 18.28 13,952.43 0.43
groups
Incl:account reveivables on which bad debt
3,243,441.96 18.28 13,952.43 0.43
provisions are provided on age basis
Account receivable with minor individual
amount but bad debt provision is provided
Total 17,740,070.54 100.00 13,952.43 0.08
——Account reveivables on which bad debt provisions are provided on age basis in the group：
Balance in year-end Balance in year-begin
Age Balance of book Bad debt Balance of book Bad debt
Amount Propertion(%) provision Amount Propertion(%) provision
Within 1
2,552,707.59 98.67 3,208,937.11 98.94
year
1-2 years
2-3 years 16,500.00 0.64 4,950.00 16,500.00 0.51 4,950.00
3-4years 18,004.85 0.69 9,002.43 18,004.85 0.55 9,002.43
4-5 years
Over 5 years
Total 2,587,212.44 100.00 13,952.43 3,243,441.96 100.00 13,952.43
——No individually insignificant receivables with bad debt provision recognized individually at the end of period.
Name Balance of book Bad debt Proportion(%) Reason
provision
Guangdong Union Electric toll Co., Ltd. 36,011,782.26 Account collected
Guangdong Guanghui Expressway
1,993,930.00 Account collected
Co., Ltd.
Total 38,005,712.26
⑵There is no Reversal during the reporting period
(3). There is no recovery of accounts receivable through restructuring in the current.
(4) There is no accounts receivable that were written off in the current.
(5)There was no account receivable due from shareholders with more than 5% (including 5%) of the voting shres of the
103
company.
(6)The top 5 arrearage in accounts receivable
Proportion to
Relationship with the
Name Amount Aging total accounts
Company
receivalbe(%)
Guangdong Union Electric Within 1 year
No relationship 36,011,782.26 88.71
toll Co., Ltd.
Guangdong Guanghui Expressway Within 1 year
Joint venture 1,993,930.00 4.91
Co., Ltd.
Guangzhou Zhongqiu Within 1 year
No relationship 772,267.76 1.90
advertising Co., Ltd.
Zhaoqing Guanghe Expressway Co., Ltd No relationship 482,416.00 Within 1 year 1.19
Controlled by the same Within 1 year
Guangdong Expressway Co., Ltd. 264,375.00 0.65
parent company
Total 39,524,771.02 97.36
⑺The situation on the accounts receivable from the Related parties
Proportion to
total
Relationship with the
Name Amount Aging accounts
Company
receivalbe(%
)
Guangdong Guanghui Expressway Co., Within 1
Joint venture 1,993,930.00 4.91
Ltd. year
Controlled by the same Within 1
Guangdong Expressway Co., Ltd. 264,375.00 0.65
parent company year
Controlled by the same
Guangdong Lulutong Co., Ltd. 18,004.85 3-4 years 0.04
parent company
Total 2,276,309.85 5.60
(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.
（3）Prepayment
104
1.Age analysis
Balance in year-end Balance in year-begin
Age
Amount Proportion Amount Proportion
Within 1 year 69,643,524.21 45.04 96,717,091.73 66.70
1-2 years 60,225,199.60 38.95 12,494,376.72 8.62
2-3 years 24,544,927.30 15.87 35,601,690.20 24.56
Over 3 years 220,738.90 0.14 169,738.00 0.12
Total 154,634,390.01 100.00 144,982,896.65 100.00
⑵The top five companies according to the Prepayment
Reasons for
Name Relationship with the Company Amount Time pending
accounts
Within 3 years Prepayment ha
Guangdong Changda Highway Controlled by the same
88,157,232.60 s not been dedu
Engineering Co., Ltd. parent company
cted
Within 3 years Prepayment ha
Controlled by the same
Guangdong Guanyueluqiao Co., Ltd. 33,026,247.00 s not been dedu
parent company
cted
Prepayment ha
Hubei Luqiao Group Co., Ltd. No relationship 11,221,476.40 Within 2 years s not been dedu
cted
Prepayment ha
Zhiguang Jietong Technology Co.,
No relationship 5,610,003.00 Within 3 years s not been dedu
Ltd
cted
Prepayment ha
Guangdong Xinguang International
No relationship 4,144,265.00 1-2 years s not been dedu
Co., Ltd.
cted
Total 142,159,224.00
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
105
Proportion
Name Relationship with the Company Amount Time
(%)
Guangdong Changda Highway Controlled by the same
88,157,232.60 Within 3 years 57.01
Engineering Co., Ltd. parent company
Controlled by the same
Guangdong Guanyueqiao Co., Ltd. 33,026,247.00 Within 3 years 21.36
parent company
Guangdong Hualu Communication Controlled by the same
200,000.00 1-2 years 0.13
Technology Co., Ltd. parent company
Total 121,383,479.60 78.50
(4) Dividends receivable
Whether
the
Reasons for relevant
Amount at year Increase at this Decrease at this Amount at
Items not being funds have
beginning period period period end
recovered signs for
impairmen
t
1.The dividends receivable
with account age less than one 90,658,881.05 65,268,350.39 149,711,799.97 6,215,431.47
year
The dividend of Jungzhu
Expressway in 2010 and 54,443,449.58 54,443,449.58
surplus dividend in last year
The surplus dividend of
Guangdong Guanghui Not
Expressway Co., Ltd in 2010 36,215,431.47 30,000,000.00 6,215,431.47 paydividen No
and dividend in First ds
quarter-Third quarter 2011.
The dividend of Shenzhen
Huiyan Expressway in the 22,000,000.00 22,000,000.00
Second half of 2011
The dividend of China
Everbright Bank Co., Ltd. in 31,920,000.00 31,920,000.00
2011.
The dividend of Zhaoqing
Yuezhao Highway Co., Ltd. in
11,348,350.39 11,348,350.39
2011 and in the first half year
of 2012
106
Whether
the
Reasons for relevant
Amount at year Increase at this Decrease at this Amount at
Items not being funds have
beginning period period period end
recovered signs for
impairmen
t
Total 90,658,881.05 65,268,350.39 149,711,799.97 6,215,431.47
5 .Other receivable
1.Type analyses:
Amount in year-end
Book Balance Bad debt provision
Type
Amount Proportion(%) Amount Proportion(%
)
Individually significant accounts receivable 62,215,977.01 61.21 62,215,977.01 100.00
Receivables provided bad debt provision In
39,432,534.04 38.79 1,659,703.68 4.21
the group
Group I:Other Receivables account
receivables on which bad debt provisions are 25,391,283.08 24.98 1,659,703.68 6.54
provided on other basis
Group II：Other Receivables account
receivables on which bad debt provisions are 14,041,250.96 13.81
provided on other basis
Other
non-material other receivables
Total 101,648,511.05 100.00 63,875,680.69 62.84
On table
Amount in year-begin
Type Book Balance Bad debt provision
Amount Proportion(%) Amount Proportion(%)
Individually significant accounts receivable 62,215,977.01 60.90 62,215,977.01 100.00
Receivables provided bad debt provision In
the group 39,643,008.50 38.81 1,659,703.68 4.19
Group I:Other Receivables account
receivables on which bad debt provisions are 25,595,218.33 25.05 1,659,703.68 6.48
107
provided on other basis
Group II：Other Receivables account
receivables on which bad debt provisions are
provided on other basis 14,047,790.17 13.76
Other
non-material other receivables 300,000.00 0.29 300,000.00 100.00
Total 102,158,985.51 100.00 64,175,680.69 62.82
——Other Account receivables on which bad debt provisions are provided on age basis in the group：
Amount in year-end Amount in year-begin
Age Book Balance Bad debt provision Book Balance
Bad debt provision
Amount Proportion(%) Amount Proportion(%)
Within
23,731,579.40 93.46 23,935,514.65 93.52
1 year
1-2
years
2-3
years
3-4
years
4-5
years
Over 5
1,659,703.68 6.54 1,659,703.68 1,659,703.68 6.48 1,659,703.68
Years
Total 25,391,283.08 100.00 1,659,703.68 25,595,218.33 100.00 1,659,703.68
——Other Account receivables on which bad debt provisions are provided on Other basis in group
Other account receivables Book Balance Bad debt provision
Land and Resources Bureau of 7,366,300.00
Foshan.Chancheng Branch
Guangdong Xingyu Law Office 2,297,134.96
Heshan Financial Bureau 1,835,391.00
Foshan Chancheng Human Resources and 1,006,743.00
social Security Bureau
Heshan Human Resources and social Security 999,000.00
Bureau
108
Other account receivables Book Balance Bad debt provision
Foshan Nanhai Human Resources and Cocial 449,682.00
Security Bureau
Guangdong Gaoda Property Development Co., 87,000.00
Ltd.
Total 14,041,250.96
——There is no significant amount or the test of depreciation of value of bad debts provision of accounts
receivable at the ending.
Name Book balance Bad debt
Proportion (%) Reasons
provision
Kunlun Securities Co., Ltd. 49,995,897.10 49,995,897.10 100.00 Notes 1
Beijing Gelin Enze 12,220,079.91 12,220,079.91 100.00 Notes 2
Guangzhou Putian Zhongzhi 62,215,977.01 62,215,977.01
Total
Notes1: The parent company once paid RMB33.683,774.79 into KunLun Securities Co, Ltd, Guangdong expressway
technology investment Co, Ltd once paid RMB18.000,000.00 into KunLun Securities Co, Ltd. Qinghai Province
Xining City’s intermediate people's court made a adjudication under law declared that KunLun Securities Co, Ltd went
bankrupt and repaid debt in November 11, 2006. On March 2007,My company and Guangdong Expressway
Technology investment Co, Ltd had switched the money that paid into Kunlun Securities Co, Ltd to other account
receivable, and follow the careful principle to doubtful debts provision. The RMB 710,349.92 credit was recovered in
2008, and the provision for bad debt is deducted, The RMB 977,527.77 credit was recovered in 2011, and the provision
for bad debt is deducted.
2. Guangdong Expressway technology investment Co, Ltd should charge Beijing Gelin Enzhe Organic fertilizer Co,
Ltd for RMB 12,220,079.91. Eight millions of it was entrust loan, three millions was temporary borrowing. RMB
12.400.00 is the commission loan interest, the rest of it was advance money for another. Beijing Gelin Enze Organic
fertilizer Co, Ltd’s operating status was bad and had already ceased producing, Accordingly, the controlling subsidiary
of the company Guangdong Expressway Investment Co., Ltd. accounted full provision for bad debt RMB
12,220,079.91 Provision .
⑵Reversal or Recovery of the Current Period
Accumulatively Accruing
Amount of
Reasons of Reversal Determine the Basis of Allowances for Bad Debt
Other Receivables Reversal or
or Recovery Bad Debt Provision before Reversal or
Recovery
Recovery
Guangzhou Putian Recovered liqu Write-off 300,000.00 142,376.38
109
Zhongzhi idation balance
Total 142,376.38
(3)There is no recovery of other accounts receivable through restructuring in the current report period.
(4). The cancellation after verification on other accounts receivable in the current
Whether because
Verification
Notes Other Reason of associated
of the amount
transactions
liquidation co
Advance liquidation
Guangzhou Putian Zhongzhi 157,623.62 mpleted No
funds
Total 157,623.62
(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
The
proportion
Relationship with of the total
Name Amount Aging
the Company of other
receivables
(%)
Kunlun Securities Co.,Ltd No relationship 49,995,897.10 Over 5 years 49.19
Beijing Gelin Enze Joint venture 12,220,079.91 4-5 years 12.02
Foshan Land resources Bureau,
No relationship 7,366,300.00 2-3 years 7.25
Chancheng Branch
Li Jing（Reserve fund） Cashier of subsidiary company 2,551,500.00 Within 1 year 2.51
Guangdong Xingyu Law Office No relationship 2,297,134.96 1-5 years 2.26
Total 74,430,911.97 73.23
⑺The accounts receivable from the Related parties
The proportion of
Relationship with the
Name Amount Time the total of other
Company
receivables (%)
Beijing Gelin Enze Joint venture 12,220,079.91 4-5 years 12.02
Controlled by the same Within 1
Guangdong Guanyueluqiao Co.,Ltd. 1,575,967.15 1.55
parent company year
Guangdong Litong Property Controlled by the same Within 1
1,400,176.00 1.38
Investment Co., Ltd. parent company year
Guangdong Guanghui Expressway Joint venture 500,000.00 Within 1 0.49
110
The proportion of
Relationship with the
Name Amount Time the total of other
Company
receivables (%)
Co., Ltd. year
Guangdong Kaiyang Expressway Co., Controlled by the same Within 1
461,907.56 0.45
Ltd. parent company year
Within 1
Zhaoqing Yuezhao Highway Co., Ltd. Joint venture 419,254.95 0.41
year
Guangdong Maozhan Expressway Controlled by the same Within 1
118,469.97 0.12
Co., Ltd. parent company year
Guangdong Yunwu Expressway Co., Controlled by the same Within 1
107,122.00 0.11
ltd. parent company year
Guangdong Gaoda Property Controlled by the same
91,500.00 1-4 years 0.09
Development Co., Ltd. parent company
Yunfu Guangyun Expressway Co., Controlled by the same Within 1
82,960.14 0.08
Ltd. parent company year
Guangdong Highway Construction Controlled by the same Within 1
48,180.31 0.05
Co., Ltd. parent company year
Guangdong Shanfen Expressway Co., Controlled by the same Within 1
24,486.00 0.02
Ltd. parent company year
Guangdong Yuzhan Expressway Co., Controlled by the same Within 1
23,657.46 0.02
Ltd. parent company year
Guangdong Zhanxu Expressway Co., Controlled by the same Within 1
23,267.22 0.02
Ltd. parent company year
Guangdong Shenshan West Controlled by the same Within 1
6,601.92 0.01
Expressway Co., Ltd. parent company year
Guangdong Guangshao Expressway Controlled by the same Within 1
3,762.70 0.00
Co., Ltd. parent company year
Guangdong Xinyue Communication Controlled by the same Within 1
2,158.60 0.00
Investment Co., Ltd. parent company year
Total 17,109,551.89 16.82
⑻There 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）Financial assets available for sale
1. Financial assets available for sale
Items Period-end sound value Period-beginning sound value
Bonds available for sale
111
Equity instruments available for sale
Other 681,600,000.00 691,200,000.00
Total 681,600,000.00 691,200,000.00
2 Existing restricted circulation period of Financial assets available for sale
Deadline for restricted
Period-end sound Period-beginning
Type circulation period
value sound value
China Everbright Bank November 5, 2012 681,600,000.00 691,200,000.00
112
（7） Information of Joint venture and Associated Enterprise
Voting Total current
Name Popoortion End total assets End total liabilities End total net assets Net profit
proportion(%) revenues
1. Joint venture
1. Guangdong Guanghui
30.00 30.00 5,858,383,575.04 2,935,284,488.94 2,923,099,086.10 630,911,758.62 201,791,929.54
Expressway
Zhaoqing Yuezhao Highway
25.00 25.00 2,174,279,393.34 1,332,091,083.34 842,188,310.00 221,655,844.71 80,726,186.63
Co., Ltd.
Beijing Gelin Enze 35.00 35.00 25,925,805.89 16,707,626.85 9,218,179.04
2. Affiliated company
.Shenzhen Huiyan Expressway 33.33 33.33 441,646,202.40 37,154,127.12 404,492,075.28 133,384,602.43 62,374,165.90
Guangdong Maozhan Expressway 20.00 20.00 2,725,561,496.72 1,900,224,213.61 825,337,283.11 237,722,296.91 63,730,263.61
.Jingzhu Exprwssway Guanzhu 20.00 20.00 4,094,251,199.79 2,593,378,885.40 1,500,872,314.39 553,620,982.48 272,626,022.57
Guangdong Jiangzhong Expressway 15.00 15.00 2,598,102,150.14 1,564,329,835.33 1,033,772,314.81 186,483,167.13 20,348,918.52
Ganzhou Kangda Expressway 30.00 30.00 1,713,848,301.75 1,459,610,739.72 254,237,562.03 88,293,935.00 12,864,664.14
Ganzhou Gankang Expressway 30.00 30.00 2,010,943,411.54 1,371,399,052.47 639,544,359.07 61,225,774.67 -19,685,803.81
.Guangdong Guangle Expressway 30.00 30.00 13,627,922,178.07 10,096,388,105.62 3,531,534,072.45
Notes：As of June 30, 2012，.Guangdong Guangle Expressway Co., Ltd. is still in construction , not yet operational.
113
(8)Long- term s equity investment
Account Balance in Balance in
Name Initial amount Increase/decrease
method year-begin year-end
Guangdong Guanghui Expressway
Equity method 705,503,400.00 816,392,146.97 60,537,578.86 876,929,725.83
Co., Ltd.
Zhaoqing Yuezhao Highway
Equity method 201,770,945.42 216,166,050.63 8,470,380.29 224,636,430.92
Co., Ltd.
Beijing Gelin Enze Equity method 6,614,483.90
Shenzhen Huiyan Expressway Equity method 35,231,299.69 150,137,620.80 -1,919,450.93 148,218,169.87
Guangdong Maozhan Expressway Equity method 224,000,000.00 152,321,403.90 12,746,052.72 165,067,456.62
Jingzhu Exprwssway Guanzhu Equity method 247,848,488.93 388,055,869.31 50,658,961.65 438,714,830.96
Guangdong Jiangzhong Expressway
Equity method 156,750,000.00 152,013,509.44 3,052,337.78 155,065,847.22
Co., Ltd.
Ganzhou Kangda Expressway Equity method 216,251,100.00 117,064,120.24 3,071,418.34 120,135,538.58
Ganzhou Gankang Expressway
Equity method 226,379,000.00 197,769,048.86 -5,905,741.14 191,863,307.72
Co., Ltd.
Guangdong Guangle Expressway Equity method 729,997,500.00 728,141,601.73 728,141,601.73
Huaxia Securities Co., Ltd.(Notes 1) Cost method 5,400,000.00 5,400,000.00 5,400,000.00
Huazheng Assets Management
Co. Ltd. Cost method 1,620,000.00 1,620,000.00 1,620,000.00
(Notes 2)
Guangzhou Putian Zhongzhi(Notes 3) Cost method 30,000,000.00 30,000,000.00 30,000,000.00
Kunlun Securities Co., Ltd.(Notes 4) 2,787,366,217.94 2,955,081,371.88 130,711,537.57 3,085,792,909.45
Total
On table
Impairment
Impairment
Voting provision in Current cash
Name Proportion Notes provision in
proportion(%) the report dividend
year-end
period.
Guangdong Guanghui Expressway Co., Ltd. 30.00 30.00
Zhaoqing Yuezhao Highway Co., Ltd. 25.00 25.00 11,348,350.39
Beijing Gelin Enze 35.00 35.00
Shenzhen Huiyan Expressway 33.33 33.33 22,000,000.00
Guangdong Maozhan Expressway 20.00 20.00
Jingzhu Exprwssway Guanzhu 20.00 20.00
114
Impairment
Impairment
Voting provision in Current cash
Name Proportion Notes provision in
proportion(%) the report dividend
year-end
period.
Guangdong Jiangzhong Expressway
15.00 15.00
Co., Ltd.
Ganzhou Kangda Expressway 30.00 30.00
Ganzhou Gankang Expressway Co., Ltd. 30.00 30.00
Guangdong Guangle Expressway 30.00 30.00
Huaxia Securities Co., Ltd.(Notes 1) 0.27 0.27 5,400,000.00
Huazheng Assets Management Co. Ltd.
0.54 0.54 1,393,200.00
(Notes 2)
Guangzhou Putian Zhongzhi(Notes 3) 5.74 5.74 30,000,000.00
Kunlun Securities Co., Ltd.(Notes 4) 36,793,200.00 33,348,350.39
Total
Notes 1. The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in
December 2005. The Company made full provision for impairment in respect of this long-term equity investment
of RMB 5.4 million.
Notes2: 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.
Notes 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.
10.Investment real estate
Balance in Increase at this Decrease at Balance in
Items
year-begin period this period year-end
1. Original price 12,664,698.25 12,664,698.25
115
Balance in Increase at this Decrease at Balance in
Items
year-begin period this period year-end
1.Hoses and building 12,664,698.25 12,664,698.25
2.Land Use right
II. Accumulated depreciation 7,123,660.17 232,106.70 7,355,766.87
1.Hoses and building 7,123,660.17 232,106.70 7,355,766.87
2.Land Use right
III. Net value 5,541,038.08 5,308,931.38
1.Hoses and building 5,541,038.08 5,308,931.38
2.Land Use right
IV. Impairment prevision
1.Hoses and building
2.Land Use right
V.Total of book value 5,541,038.08 5,308,931.38
1.Hoses and building 5,541,038.08 5,308,931.38
2.Land Use right
The current depreciation and the amortized amount in the investment real estate is RMB 232,106.70.
10.Fixed assets
Balance in year- Increase at this Decrease at this
Items Balance in year-end
begin period period
1.Total of Original price of
fixed assets 6,293,664,995.28 53,592,126.65 5,354,074.15 6,341,903,047.78
Including：Guangfo Expressway 1,441,664,155.82 41,973,749.18 203,539.90 1,483,434,365.10
Fokai Expressway 4,054,064,636.34 4,054,064,636.34
Jiujiang Bridge 249,884,346.55 33,300.00 249,851,046.55
House and Building 245,936,098.24 4,417,270.90 250,353,369.14
Machine equipment 11,968,640.96 3,271,768.20 8,696,872.76
Transportation Equipment 47,889,892.24 1,289,800.00 1,412,425.00 47,767,267.24
Electricity equipment and other 242,257,225.13 5,911,306.57 433,041.05 247,735,490.65
Add provision
II. Total of Accumulated
depreciation 2,230,247,192.11 192,171,715.11 4,866,867.51 2,417,552,039.71
116
Balance in year- Increase at this Decrease at this
Items Balance in year-end
begin period period
Including：Guangfo Expressway 706,475,714.52 77,726,900.83 141,612.91 784,061,002.44
Fokai Expressway 1,142,414,143.93 85,710,649.34 1,228,124,793.27
Jiujiang Bridge 98,310,896.01 11,509,402.78 109,820,298.79
House and Building 85,829,182.94 5,932,374.83 91,761,557.77
Machine equipment 9,687,357.94 167,318.26 3,140,897.47 6,713,778.73
Transportation Equipment 33,462,932.87 1,363,247.12 1,205,323.00 33,620,856.99
Electricity equipment and other 154,066,963.90 9,761,821.95 379,034.13 163,449,751.72
III. Total net book value of
fixed assets 4,063,417,803.17 3,924,351,008.07
Including：Guangfo Expressway 735,188,441.30 699,373,362.66
Fokai Expressway 2,911,650,492.41 2,825,939,843.07
Jiujiang Bridge 151,573,450.54 140,030,747.76
House and Building 160,106,915.30 158,591,811.37
Machine equipment 2,281,283.02 1,983,094.03
Transportation Equipment 14,426,959.37 14,146,410.25
Electricity equipment and other 88,190,261.23 84,285,738.93
IV. Total of Accumulated
depreciation
Including：Guangfo Expressway
Fokai Expressway
Jiujiang Bridge
House and Building
Machine equipment
Transportation Equipment
Electricity equipment and other
V. Total book value of fixed
assets 4,063,417,803.17 3,924,351,008.07
Including：Guangfo Expressway 735,188,441.30 699,373,362.66
Fokai Expressway 2,911,650,492.41 2,825,939,843.07
Jiujiang Bridge 151,573,450.54 140,030,747.76
House and Building 160,106,915.30 158,591,811.37
117
Balance in year- Increase at this Decrease at this
Items Balance in year-end
begin period period
Machine equipment 2,281,283.02 1,983,094.03
Transportation Equipment 14,426,959.37 14,146,410.25
Electricity equipment and other 88,190,261.23 84,285,738.93
The current depreciation amount is RMB 192,171,715.11.
The original price of projects under construction transferred to fixed assets is RMB48,792,473.50.
118
11. Construction on process
1. Construction on process
Balance in year-end Balance in year-begin
Items Impairment Impairment
Book balance Book Value Book balance Book Value
provision provision
The period between Xiebian to Sanbao
3,167,564,066.00 3,167,564,066.00 2,734,235,124.56 2,734,235,124.56
extension project
The comprehensive maintenance base project
137,401,068.39 137,401,068.39 11,497,701.04 11,497,701.04
of the Xiebian to Sanbo station
Other project 14,326,648.43 14,326,648.43 14,359,898.27 14,359,898.27
Total 3,319,291,782.82 3,319,291,782.82 2,760,092,723.87 2,760,092,723.87
2. The variation in constructing the engineering project
Items Budget(RMB’0000) Balance in year-begin Increase at this period Transfer to fixed assets Other losses
The period between Xiebian to Sanbao extension
400,200.00 2,734,235,124.56 433,328,941.44
project
The comprehensive maintenance base project
54,858.66 11,497,701.04 126,314,525.35 411,158.00
of the Xiebian to Sanbo station
The period between Yaoyao to Xiebian extension
37,369.28 42,684,885.52 42,684,885.52
project
Other project 14,359,898.27 6,074,338.14 6,107,587.98
Total 2,760,092,723.87 608,402,690.45 48,792,473.50 411,158.00
119
On table
Capitalisation of Including：
Capitalisation
Budget interest Current amount
Items Progress of work of interest ratio Source of funds Balance in year-end
Proportion(%) accumulated of capitalization
（%)
balance of interest
The period between Xiebian to Sanbao extension
95.20 95.20 345,562,185.71 51,827,240.25 6.472 Self fund，Loan 3,167,564,066.00
project
The comprehensive maintenance base project
22.41 22.41 11,692,288.91 4,317,263.91 6.472 Self fund，Loan 137,401,068.39
of the Xiebian to Sanbo station
The period between Yaoyao to Xiebian extension
100.00 100.00 Self fund
project
Other project Self fund 14,326,648.43
Total 357,254,474.62 56,144,504.16 3,319,291,782.82
As of June 30, 2012, There is no the provision for decline in value of the construction in progress.
120
12. Intangible assets
Balance in Increase at this Decrease Balance in
Items year-begin period at this period year-end
I.Total cost 140,503,270.73 143,103.76 140,646,374.49
Jiujiang Bridge management right 68,402,029.24 68,402,029.24
Jiujiang Land Use right 66,917,573.76 66,917,573.76
Yayao Land use right 1,311,658.00 1,311,658.00
Office automation system
3,872,009.73 143,103.76 4,015,113.49
software
II.Total of accumulative amortized 87,337,106.83 4,305,381.95 91,642,488.78
Jiujiang Bridge management right 43,484,447.52 1,941,629.76 45,426,077.28
Jiujiang Land Use right 42,540,725.40 1,899,494.70 44,440,220.10
Yayao Land use right 466,647.70 75,672.60 542,320.30
Office automation system
845,286.21 388,584.89 1,233,871.10
software
III.Total lbook value of intangible
53,166,163.90 49,003,885.71
assets
Jiujiang Bridge management right 24,917,581.72 22,975,951.96
Jiujiang Land Use right 24,376,848.36 22,477,353.66
Yayao Land use right 845,010.30 769,337.70
Office automation system
3,026,723.52 2,781,242.39
software
IV. Total limpairment provision
Jiujiang Bridge management right
Jiujiang Land Use right
Yayao Land use right
Office automation system
software
V. Book value Total of intangible
53,166,163.90 49,003,885.71
assets
Jiujiang Bridge management right 24,917,581.72 22,975,951.96
Jiujiang Land Use right 24,376,848.36 22,477,353.66
Yayao Land use right 845,010.30 769,337.70
Office automation system 3,026,723.52 2,781,242.39
121
Balance in Increase at this Decrease Balance in
Items year-begin period at this period year-end
software
Current amortization of RMB 4,305,381.95.
13. Long term amortize expenses
Amortized
Balance in Increase in expenses Balance in Other loss
Items Other loss
year-begin this period year-end Reasons
Advertisement pillar
property insurance premium 35,304.94 30,261.30 5,043.64
amortization
Renovation fee for the office
335,238.40 335,238.40
building of litong squre
Total 370,543.34 30,261.30 340,282.04
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 liability
Timing difference between accounting and tax 123,055,998.03 126,663,710.47
Total 123,055,998.03 126,663,710.47
2. Unconfirmed deferred income tax assets
Items Balance in year-end Balance in year-begin
Impairment of assets prepares to
25,170,708.28 25,245,708.28
deduct timing differences
Total 25,170,708.28 25,245,708.28
has uncertainty to gain the taxable income in future; therefore these deductible
Notes：It
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
The taxability differences：
Timing difference between accumulated depreciation 492,223,992.01
122
Total 492,223,992.01
123
15.Provision for depreciation of assets
Book balance at the Increase in this period Decreased in current period
Balance in
Items
beginning of term Switch year-end
Provision Other Switch back Other
cancellation
I.Provision for bad debts 64,189,633.12 142,376.38 157,623.62 63,889,633.12
II.Provision for falling price of inventory
III.Provision for devaluation of financial asset
available for sales
IV.Provision for devaluation of held-to maturity
investment
V.Provision for devaluation of long-term equity
investment 36,793,200.00 36,793,200.00
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 100,982,833.12 142,376.38 157,623.62 100,682,833.12
124
16.Short –term loan
1. Short –term loan
Items Balance in year-end Balance in year-begin
Pledge loan
Mortgage loan
Guarantee loan
Credit loan 1,041,470,000.00 891,470,000.00
Total 1,041,470,000.00 891,470,000.00
2. The company had no unpaid due short-term loan.
17.Account payable
1.Agie analyse
Items Balance in year-end Balance in year-begin
Within 1 year 97,180,245.07 76,895,240.54
1－2 years 25,071,743.50 26,554,377.65
2－3 years 10,723,555.26 18,050,830.37
Over 3 years 14,331,530.18 13,728,261.18
Total 147,307,074.01 135,228,709.74
1. There was account payable due from shareholders with more than 5% (including 5%) of the voting
shares of the company
Items Balance in year-end Balance in year-begin
Guangdong Changda Highway Engineering Co., Ltd. 37,519,368.22 15,248,083.27
Guangdong Expressway Co., Ltd. 19,986,871.20 19,986,871.20
Guangdong Xinyue Communication Investment Co., Ltd. 8,724,800.94 10,026,441.09
Guangdong Guanyueluqiao Co., Ltd. 7,572,689.98 5,015,887.76
Guangdong Guanghui Expressway Co., Ltd. 5,133,333.34 3,941,666.67
Guangzhou Xinruan Computer Technology Co., Ltd. 1,079,980.00 2,218,780.00
Guangdong Hualu Communication Technology Co., Ltd. 750,109.00 780,722.00
Guangdong East Thinking Management Technology
207,804.00 207,804.00
Development Co., Ltd.
Guangdong Communication Development Company 284,502.65 2,337,674.15
Guangdong Communication Group Inspection &
90,474.00
Testing Center
Total 81,259,459.33 59,854,404.14
⑶High balance account payable over 1 year has listed below：
Debtor Amount Not return Remark
cause
125
Expansion project remai
Guangdong Expressway Co., Ltd. 13,728,261.18 Not settlement ning fund and xiebian gr
ade separation fund
Progress fund ，
Guangdong Changda Highway Engineering
10,210,487.22 Not settlement materials fund ，
Co., Ltd.
engineering quality prize
Rent of advertise
Guangdong Guanghui Expressway Co., Ltd. 2,750,000.00 Not settlement
ment spot
Tentative estimati
Guangdong Jingtong Highway Engineering
2,491,500.00 Not settlement on of expansion pr
Construction Group Co., Ltd.
oject funds
Engineering quality priz
China Railway 23 Bureau Group Co., Ltd. 2,061,500.00 Not settlement
e penalty
Engineering quality priz
China Railway 12 Bureau Group Co., Ltd. 1,984,500.00 Not settlement
e penalty
Engineering quality priz
Guangdong Guanyue Luqiao Co., Ltd. 1,571,300.00 Not settlement
e penalty
Guangdong Xinyue Communication
Progress fund
Investemnt 1,262,387.30 Not settlement
Co., Ltd.
Jilin Great wall Highway Engineering quality priz
1,135,300.00 Not settlement
Bridge construction Co., Ltd. e penalty
Guangdong Highway Survey & Design
1,018,944.00 Not settlement Progress fund
Institute
Total 38,214,179.70
18.Advance account
1.Age analyse
Items Balance in year-end Balance in year-begin
Within 1 year（Including 1 year） 55,000.00
1-2 years（Including 2 years） 5,000,001.12
2-3 years（Including 3 years） 4,923,886.06 392,390.08
Over 3 years
Total 4,978,886.06 5,392,391.20
2. There was Advance account due from shareholders with More than 5% (including 5%) of the voting shares
of the company.
Items Balance in year-end Balance in year-begin
Guangdong Expressway Co., Ltd. 90,551.56 392,390.08
⑶High Advance account over 1 year has listed below：
126
Debtor Amount Not return cause
Guangdong Provincial posts & Telecommunication Communication pipeline
4,833,334.50
Engineering Management Center Rent
19. Payable Employee wage
Balance in Increase in this Payable in this Balance in
Items period period year-end
year-begin
1.wage,bonuds,subsidy 465,063.49 50,961,788.08 50,961,788.08 465,063.49
2.Employee welfare 4,705,919.24 4,705,919.24
3.Security insurance 336,902.27 14,820,423.61 14,138,010.77 1,019,315.11
Including：1. Basic Medical
2,744,462.03 2,744,462.03
insurance
2. Supplement Medical insurance 2,924,087.16 2,924,087.16
3. Basic old-age insurance 5,584,013.76 5,584,013.76
4. Annuity Payment（Supplement
309,497.77 2,507,868.51 1,825,455.67 991,910.61
old-age insurance）
5.. Unemployment insurance 286.00 618,221.62 618,221.62 286.00
6. Work injury insurance 279,945.97 279,945.97
7. Maternity insurance 27,118.50 144,347.54 144,347.54 27,118.50
8.Other 17,477.02 17,477.02
IV. Housing fund 454,276.74 8,539,056.26 8,519,556.26 473,776.74
V. Labour union outlay and
745,978.07 1,893,730.68 1,455,605.51 1,184,103.24
Employee Eructation outlay
VI. Non-Money Welfare 2,852,727.25 2,852,727.25
VII.Redemption for terminations
113,712.00 113,712.00
of labor contract
VIII.Other 2,595,694.80 2,589,194.80 6,500.00
Including：Share payment by cash
total
Total 2,002,220.57 86,483,051.92 85,336,513.91 3,148,758.58
Notes ：
The amount of the staff remuneration payable which belongs to default has no unpaid
salary.
20. Payable tax
127
Items Balance in year-end Balance in year-begin
VAT 135,730.89 754.95
Business tax 3,918,819.46 4,243,843.28
Enterprise income tax 24,275,334.40 4,311,139.90
City construction tax 208,181.40 243,909.04
Property tax 613,824.35 483,226.59
Land use tax 1,245,286.00 1,116,511.60
Individual income tax -54,712.03 2,188,350.47
Education subjoin 110,013.45 116,068.17
Locality Education subjoin 62,028.58 66,314.99
Defend expense 131,269.53 139,316.68
Stamp tax 156,145.18
Cultural construction costs 21,668.03 2,700.00
Other 1,748.27 1,748.27
Total 30,669,192.33 13,070,029.12
21. Interest payable
Items Balance in year-end Balance in year-begin
Pay the interest for long-term loans by installments. 6,840,865.92 6,378,590.20
Interest of company bonds 80,583,611.08 26,233,611.10
Payable interest for short-term borrowings 4,242,494.39 4,549,593.25
Total 91,666,971.39 37,161,794.55
22. Dividend payable
Amount Balance in Balance in Reason of overdue for over 1 year
year-end year-begin
Zhujiang Basic Construction
Investment 16,305,192.12 16,305,192.12
Co., Ltd.
Incl: Did not receive dividends of
Dividends for shareholders of
75,641,281.99 12,849,018.98 RMB12,785,394.59 of Legal
Guangdong Expressway
shareholders overdue for over 1 year
Total 91,946,474.11 29,154,211.10
23. Other payable
1.Age analyse
Items Balance in year-end Balance in year-begin
128
Within 1 year(Including 1 year) 200,749,670.18 177,509,087.21
1-2 years(including 2 years) 102,790,141.09 111,093,832.75
2-3 years(including 3 years) 36,854,987.30 27,726,142.11
Over 3 years 10,153,481.78 3,421,196.82
Total 350,548,280.35 319,750,258.89
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.
Items Balance in year-end Balance in year-begin
Guangdong Guanghui Expressway Co., Ltd. 105,000,000.00 105,000,000.00
Guangdong Changda Highway Engineering
64,792,281.56 69,643,948.91
Co., Ltd.
Guangdong Guanyueluqiao Co., Ltd. 25,108,563.61 22,357,818.44
Guangdong Expressway Co., Ltd. 8,290,218.80 2,793,419.35
Guangdong Communication Development
1,492,418.03 1,952,418.03
Company
Guangdong Xinyue Communication
1,421,776.25 1,839,382.70
Investment Co., Ltd.
Guangdong Litong Property Investment Co., Ltd. 994,862.00
Guangdong Hualu communication Technology
255,054.50 255,254.50
Co., Ltd.
Guangdong Highway Construction Co., Ltd. 211,680.13 73,610.38
Guangdong Tongyi Expressway Services Area
205,000.00
Co., Ltd
Guangzhou Xinruan Computer Technology
131,630.00 99,130.00
Co., Ltd.
Guangdong Maozhan Expressway Co., Ltd. 61,129.53
Guangdong West Coast Expressway Trading
49,628.87 0.33
Co., Ltd.
Guangdong Zhanxu Expressway Co., Ltd 42,812.80
Guangdong Xinlu Adverting Co., Ltd. 30,000.00 30,000.00
Guangdong Yuzhan Expressway Co., Ltd. 20,612.44
Guangdong Zhaoyang Expressway Co., Ltd. 8,377.43
Guangzhou Xinyue Asphalt Co., Ltd. 3,100.00 3,100.00
Total 208,119,145.95 204,048,082.64
129
(3)High balance Other payable over 1 year has listed below
Name Amount Not Refund cause Remark
Project Quality guarantees/
Guangdong Changda Engineering
48,828,99 Bid Gruarantees/Performance
Co., Ltd.
3.16 Gruarantee
Project Quality guarantees/
Guangdong Guanyue Luqiao
18,726,31 Bid Gruarantees/Performance
Co., Ltd.
4.54 Gruarantee
Guangdong Jingtong Highway Project Quality guarantees/
Engineering Construction Group 15,097,53 Bid Gruarantees/Performance
Co., Ltd. 6.00 Gruarantee
Project Quality guarantees/
Zhongtie No.12 Bureau Group Co., Ltd. 14,046,77 Bid Gruarantees/Performance
1.00 Gruarantee
Project Quality guarantees/
Zhongtie No.23 Bureau Group Co., Ltd. 7,127,614 Bid Gruarantees/Performance
.50 Gruarantee
Project Quality guarantees/
Jilin Great wall Highway
6,753,707 Bid Gruarantees/Performance
Bridge construction Co., Ltd.
.00 Gruarantee
Project Quality guarantees/
Guangdong Nengda High Grade Highway
3,436,554 Bid Gruarantees/Performance
Maintenance Co., Ltd.
.37 Gruarantee
Project Quality guarantees/
Zhiguang Jietong Technology Co., Ltd. 2,667,899 Bid Gruarantees/Performance
.69 Gruarantee
Project Quality guarantees/
Guangdong Xinguang International Group
2,611,967 Bid Gruarantees/Performance
Co., Ltd.
.08 Gruarantee
Project Quality guarantees/
Hubei Luqiao Group Co., Ltd. 1,682,261 Bid Gruarantees/Performance
.22 Gruarantee
Project Quality guarantees/
Guangdong Communication Development
1,492,418 Bid Gruarantees/Performance
Company
.03 Gruarantee
122,472,0
Total
36.59
4.Large amount of other payables
130
Name Amount Content Remark
Guangdong Guanghui Expressway Co., Ltd. 105,000,000.00 Entrusts loan
Guangdong Changda Engineering
64,792,281.56 Project account
Co., Ltd.
Guangdong Guanyue Luqiao
25,108,563.61 Project account
Co., Ltd.
Guangdong Jingtong Highway
Engineering Construction Group 17,686,464.95 Project account
Co., Ltd.
Zhongtie No.12 Bureau Group Co., Ltd. 17,636,406.00 Project account
Jilin Great wall Highway
8,627,781.00 Project account
Bridge construction Co., Ltd.
Guangdong Expressway Co., Ltd. 8,290,218.80 Project account
Zhongtie No.23 Bureau Group Co., Ltd. 8,128,054.50 Project account
Guangdong Nengda High Grade Highway
5,696,054.37 Project account
Maintenance Co., Ltd.
Zhiguang Jietong Technology Co., Ltd. 3,431,034.69 Project account
Guangdong Xinguang International Group
3,277,191.08 Project account
Co., Ltd.
Hubei Luqiao Group Co., Ltd. 2,255,260.22 Project account
Guangdong Union Electronic Toll Co., Ltd. 1,715,711.25 Net clearing service fee
Guangdong Communication Development
1,492,418.03 Project account
Company
Total 273,137,440.06
25． Non-current liability due in 1 year
1.Type
Items Balance in year-end Balance in year-begin
Long-term loan 910,610,000.00 384,200,000.00
Bond payable
Long-term payable
Total 910,610,000.00 384,200,000.00
2. Long-term loan due in 1 year
①Long-term loan due in 1 year
Balance in year-end Balance in year-begin
Items
131
Pledoe Loan
Mortgage loan
Guarantee loan
Credit loan 910,610,000.00 384,200,000.00
Total 910,610,000.00 384,200,000.00
The long-term loans due within one year and belong to overdue loans gain the
extension amount is RMB 0.00.
132
2.Long-term loans due in 1 year top 5 in amount
Date of Balance in year-end Balance in year-begin
Loan termination Interest rate
Unit commencement Currency Foreign Foreign
date （%） RMB RMB
of loan currency currency
China Merchants
200,000,000
Bank .Guangzhou World trade 2008-6-10 2013-4-23 RMB 5.985
.00
building Branch
150,000,000
ICBC.Guangzhou Second Branch 2011-4-15 2012-10-15 RMB 6.345
.00
Communications 150,000,000
2012-3-1 2013-2-28 RMB 6.560
Bank ,Foshan Branch .00
Shenzhen Development Bank. 100,000,000
2008-6-10 2013-6-10 RMB 5.985
Guangdong Tianhe Branch .00
Communications 90,000,000.
2011-12-28 2013-2-28 RMB 6.400
Bank ,Foshan Branch 00
25,000,000.
ICBC.Guangzhou Second Branch 2008-9-1 2012-10-15 RMB 6.345
00
China Merchants
23,000,000.
Bank .Guangzhou World trade 2008-10-1 2012-12-31 RMB 6.120
00
building Branch
ICBC.Guangzhou Second Branch 2005-7-28 2012-10-30 RMB 6.345 150,000,00
0.00
SPD Bank, Jiefang Road Branch 2010-4-2 2012-11-18 RMB 5.985 150,000,00
133
0.00
Agricultural Bank of China 2009-5-31 2012-5-31 RMB 5.760 40,000,000
.00
SPD Bank, Jiefang Road Branch 2009-4-28 2012-4-27 RMB 5.985 11,700,000
.00
SPD Bank, Jiefang Road Branch 2009-3-24 2012-3-23 RMB 5.985 9,000,000.
00
690,000,000 360,700,00
Total
.00 0.00
134
26．Long –term loan
1.Type analyse
Items Balance in year-end Balance in year-begin
Pledoe Loan
Mortgage loan
Guarantee loan
Credit loan 3,003,474,803.54 3,309,764,803.54
Total 3,003,474,803.54 3,309,764,803.54
2．The top five of long-term loans
Balance in
Balance in year-end
year-begin
Date of commencement Loan termination Interest
Unit Currency Foreign
of loan date rate Foreign
RMB currenc RMB
currency
y
Construction The 10%Benchmark
573,324,8
Bank ,Guangzhou 2003-9-29 2013-9-28 RMB interest
03.54
Liwan Branch rates downward
ICBC Guangzhou Second The 10%Benchmark 300,000,0
2003-11-14 2013-11-13 RMB
Branch interest rates downward 00.00
135
Balance in
Balance in year-end
year-begin
Date of commencement Loan termination Interest
Unit Currency Foreign
of loan date rate Foreign
RMB currenc RMB
currency
y
The 10%Benchmark
ICBC Guangzhou Second 300,000,0
2008-9-1 2023-8-31 RMB interest
Branch 00.00
rates downward
Communications The 10%Benchmark
300,000,0
Bank ,Foshan 2008-3-26 2015-3-26 RMB interest rates downward
00.00
Branch
China merchants The 10%Benchmark
277,000,0
Bank.Guangzhou 2008-4-23 2023-4-23 RMB interest
00.00
World Trade Building Branch rates downward
China CITIC The 10%Benchmark
200,000,0
Bank.Guangzhou Dongshan 2008-8-15 2023-8-15 RMB interest
00.00
Branch rates downward
China merchants The 10%Benchmark 900,00
Bank.Guangzhou 2006-5-11 2024-5-26 RMB interest rates downward 0,000.
World Trade Building Branch 00
Construction 2003-9-29 2020-4-29 RMB The 10%Benchmark 830,53
136
Balance in
Balance in year-end
year-begin
Date of commencement Loan termination Interest
Unit Currency Foreign
of loan date rate Foreign
RMB currenc RMB
currency
y
Bank ,Guangzhou interest 4,803.
Liwan Branch rates downward 54
The 10%Benchmark 450,00
ICBC Guangzhou Second
2003-11-14 2023-8-31 RMB interest rates downward 0,000.
Branch
00
Communications The 10%Benchmark 444,00
Bank ,Fengchi 2008-3-26 2015-3-26 RMB interest 0,000.
Branch rates downward 00
The 10%Benchmark 270,00
Huaxia Bank ,Guangzhou
2010-3-25 2019-9-27 RMB interest rates downward 0,000.
Branch
00
2,894,
1,650,324
Total 534,80
,803.54
3.54
26. Bonds payable
137
Par Date of Interest payable in Interest payable in Interest paid in Interest payable in Balance in
Name Bonds term Issued amount
Value Issued year-beginning this period this period year-end year-end
09 Guangdong
100.00 2009-9-23 5 years 800,000,000.00 11,333,333.33 20,400,000.00 31,733,333.33 794,972,908.14
Expressway Bonds
11Guangdong
100.00 2011-10-13 5 years 1,000,000,000.00 14,900,277.77 33,949,999.98 48,850,277.75 997,000,000.00
Expressway MTN1
Total 1,800,000,000.00 26,233,611.10 54,349,999.98 80,583,611.08 1,791,972,908.14
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.Stocks capital
Changed（+，-）
Balance in Balance in
Items Issuance of new Capitalization of
year-begin Bonus shares Other Subtotal year-end
share public reserve
1.Shares with conditional
subscription
1.State-owned shares 409,920,279 16,329 16,329 409,936,608
2.State –owned legal person shares 22,301,977 22,301,977
138
Changed（+，-）
Balance in Balance in
Items Issuance of new Capitalization of
year-begin Bonus shares Other Subtotal year-end
share public reserve
3.Other domestic shares 8,288,894 -121,615 -121,615 8,167,279
Including：Domestic legal person
shares 7,661,136 -70,641 -70,641 7,590,495
Domestic natural person shares 627,758 -50,974 -50,974 576,784
4. Foreign shares
Including：Foreign legal person
shares
Foreign natural person shares
5. Executives shares 196,038 10,998 10,998 207,036
Total Shares with conditional
subscription 440,707,188 -94,288 -94,288 440,612,900
2.Shares with unconditional
subscription
(1). Common shares in RMB 467,660,560 94,288 94,288 467,754,848
(2).foreign shares in domestic
market 348,750,000 348,750,000
(3).Foreign shares in overseas
139
Changed（+，-）
Balance in Balance in
Items Issuance of new Capitalization of
year-begin Bonus shares Other Subtotal year-end
share public reserve
market
4.Other
Total Shares with unconditional
816,410,560 94,288 94,288 816,504,848
subscription
3．.Total of capital shares 1,257,117,748 1,257,117,748
Notes 1. In the report period, 22 shares of the shareholders repaid 16,329 counterpart shares to Guangdong Communication Group Co., Ltd. Confirmed by judicial authorities,
part shares of onshore corporation stocks were converted from “Domestic natural person shares” to “held by state shares”
Notes 2. In the report period, 70,641 shares held by domestic legal persons subject to sale restriction were transferred into shares held by domestic natural persons subject to sale
restriction after judical confirmation of rights.
Notes 3. In the report period, 105,286 shares held by domestic natural persons subject to sale restriction were unfrozen and listed for trading and transferred into unrestricted
shares on April 18, 2012. For the reasons mentioned in paragraph 1 and 2, the number of shares held by domestic natural persons decreased by 50,974 shares in total.
Notes 4. Mr. Wang Jiachen resigned from the position of chief engineer of the Company. In accordance with Listing Rules of Shenzhen Stock Exchange, 10,998 unrestricted
negotiable shares held by him were transferred into frozen shares for senior executives.
140
29. Capital reserves
Increase in thisDecrease in this
Items Balance in year-begin Balance in year-end
period period
Share capital premium 1,534,759,970.60 1,534,759,970.60
Other capital reserves 163,198,744.97 9,600,000.00 153,598,744.97
Total 1,697,958,715.57 9,600,000.00 1,688,358,715.57
Notes：The Capital reserves decreased because of the changing of sellable financial assets fair value in this
period
30. Surplus reserves
Decrease in
Items Balance in year-begin Balance in year-end
Increase in this period this period
Statutory Surplus reserves 191,496,386.02 191,496,386.02
Discretionary surplus reserve
Repertory fund
Enterprise Development fund
Total 191,496,386.02 191,496,386.02
31. Retained profit
Items Amount Extraction or distribution
of the ratio
Retained profit at the beginning of current year 968,553,255.86
Add：Net profit attributable to the owners of parent
157,483,597.89
company
Less：Withdrawing statutory surplus public reserve
Withdrawing statutory Discretionary surplus public
reserve
Withdrawing commonly risk reserve
RMB 0.50 is to
be paid
Common stock dividend payable 62,855,887.40
for every 10 shares
(Including tax )
Transferring into capital
Retained profit at the end of this term 1,063,180,966.35
32. Operating income and operating cost
1. Operating income and operating cost
141
Report period Same period of the previous year
Items
Income Cost Income Cost
Main operation 539,069,354.98 273,371,289.39 510,248,592.90 250,846,387.43
Other operation 5,179,810.99 2,701,142.68 2,794,485.62 882,416.61
Total 544,249,165.97 276,072,432.07 513,043,078.52 251,728,804.04
2.Main operating （Industry）
Report period Same period of the previous year
Items Cost for main Income for main Cost for main
Income for main operation
operation operation operation
Highway
535,692,695.93 270,570,175.56 507,588,565.04 248,557,433.17
Transportation
Other 3,376,659.05 2,801,113.83 2,660,027.86 2,288,954.26
Total 539,069,354.98 273,371,289.39 510,248,592.90 250,846,387.43
3.Main operating（Product）
Report period Same period of the previous year
Items Income for main Cost for main Income for main
Cost for main operation
operation operation operation
Toll income 535,692,695.93 270,570,175.56 507,588,565.04 248,557,433.17
Other 3,376,659.05 2,801,113.83 2,660,027.86 2,288,954.26
Total 539,069,354.98 273,371,289.39 510,248,592.90 250,846,387.43
4.Main operating (Area)
Same period of the previous
Report period year
Items
Income for main Cost for main Income for main Cost for main
operation operation operation operation
Guangfo
146,309,406.68 112,686,986.95 146,510,487.80 109,952,449.62
Expressway
Fokai Expressway 363,251,687.25 135,011,881.75 337,633,538.24 119,629,880.42
Jiujiang Bridge 26,131,602.00 22,871,306.86 23,444,539.00 18,975,103.13
Other 3,376,659.05 2,801,113.83 2,660,027.86 2,288,954.26
Total 539,069,354.98 273,371,289.39 510,248,592.90 250,846,387.43
33. Business tax and subjoin
Items Report period Same period of the previous year Standard
Business tax 17,344,383.30 16,230,403.22 3%、5%
Urban construction tax 1,214,744.66 1,132,163.78 7%、5%
Education surcharge 520,767.95 487,041.64 3%
142
Defend expense 654,106.85 617,691.36 0.1%-0.12%
Locality Education surcharge 347,181.80 324,529.41 2%
Culture Construction fee 41,048.03 53,072.40
Other 4,313.32 2,044.89
Total 20,126,545.91 18,846,946.70
34. Management expenses
Items Report period Same period of the previous year
Wage 49,559,751.76 36,364,239.48
Insurance expenses
Depreciation of fixed assets 2,899,391.32 3,274,579.42
Repairs fees 161,203.00 134,153.81
Amortization of intangible assets 24,869.28 24,869.28
Low consumables amortization 1,050,290.00 283,952.56
Entertatnment expenses 3,851,674.67 3,631,745.12
Travel Expenses 1,738,397.85 1,500,869.16
Office Expenses 1,112,378.69 1,500,865.45
Water and electricity 257,817.80 210,588.63
Taxes 2,143,207.49 993,573.99
Leased experses 3,055,218.59 1,120,598.33
Lawsuit expenses 106,413.00 187,653.00
The fee for hiring agency 1,516,656.00 2,660,272.00
Consultation expenses 283,151.20 173,309.52
Directorate Expenses 536,075.30 660,265.40
Other 9,335,981.07 8,229,132.03
Total 77,632,477.02 60,950,667.18
35. Financial Expenses
Items Report period Same period of the previous year
Interest expense 159,930,860.76 105,880,137.33
Deposit interest income（-） -3,866,155.18 -1,236,450.20
Exchange Income and loss（Gain-） -2,186.66 9,339.08
Bank commission charge 199,135.09 189,345.72
Total 156,261,654.01 104,842,371.93
36. Loss for depreciation of assets
143
Items Report period Same period of the previous year
1．Loss for bad debts -142,376.38 -7,985.84
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
6．Loss for devaluation of investing property
7．loss for devaluation of fixed assets
8．loss for devaluation of engineering materials
9．loss for devaluation of construction in progress
10．loss for devaluation
Of productive biological asset
11．loss for devaluation of oil asset
12．loss for devaluation of intangible asset
13．loss for devaluation of goodwill
Total -142,376.38 -7,985.84
37.Investment income
1. Investment income
Items Same period of the
Report period previous year
Long-term equity investment income by costing
Long-term equity investment income by equity method 164,059,887.96 147,765,406.79
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 held-to-maturity investment
Hold the investment income during from available-for-sale
22,704,000.00
financial assets 31,920,000.00
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 195,979,887.96 170,469,406.79
2. long-term equity investment incomes did not confirm by equity method include:
3. long-term equity investment incomes confirmed by equity method include:：
144
Same period of the Reason to increase
Unit
Report period previous year or decrease
Guangdong Maozhan Expressway Decrease in net profit
12,746,052.72 6,067,316.60
Co., Ltd. Investment Unit
Decrease in net profit
Jingzhu Expressway Guangzhu 50,658,961.65 61,664,514.57
Investment Unit
Decrease in net profit
Guangdong Jiangzhong Expressway 3,052,337.78 4,533,627.21
Investment Unit
Guangdong Guanghui Decrease in net profit
60,537,578.86 71,874,271.44
Expressway Investment Unit
Decrease in net profit
Ganzhou Gangkang Expressway -5,905,741.14 -11,633,109.99
Investment Unit
Increase in net profit
Gankang Kangda Expressway 3,071,418.34 -7,608,563.47
Investment Unit
Decrease in net profit
Shenzhen Huiyan Expressway 20,080,549.07 22,488,363.32
Investment Unit
Increase in net profit
Zhaoqing Yuezhao Highway 19,818,730.68 2,234,885.38
Investment Unit
Guangdong Guangle Expressway -1,855,898.27 Not yet operate
Total 164,059,887.96 147,765,406.79
4. Undispose the investment income from the long-term equity investments
5. The company has no big restriction on the investment earning repatriation.
38. Non-operation income
1. Type
The amount of
Items Report period non-operating
gains & lossed
Total profits of non-current
assets disposal 4,155,773.84 13,500.00 4,155,773.84
Including：Fixed asset disposal profits 4,155,773.84 13,500.00 4,155,773.84
Intangible asset disposal profits
construction in progress disposal profit
Other
Debt restructuring profits
Non-monetary assets exchange profit
Donation income
Government Subsidy 71,600.00
Check income
145
Insurance claims income 3,378,400.00
Other 1,142,720.73 1,078,390.38 1,142,720.73
Total 5,298,494.57 4,541,890.38 5,298,494.57
2. Governmental subsidy details
Same period of the Explanation
Items
Report period previous year
Big tax-payer rewards 50,000.00
Incentives of trade new auto for old 21,600.00
Total 71,600.00
39. Non-Operation expense
The amount of
Items Same period of the non-operating gains &
Report period previous year lossed
1.Total of non-current asset Disposition
610,091.91 54,620,542.73 610,091.91
loss
Incl: loss of fixed assets disposition 610,091.91 54,620,542.73 610,091.91
Loss of Intangible assets
disposition
Construction in progress disposal loss
Other
Non-monetary assets exchange loss
Foreign donation
Unusual loss
Assets retirement, loss of mutilation
Expense of fine 1.90 331.29 1.90
Other 162,306.00 142,065.19 162,306.00
Total 772,399.81 54,762,939.21 772,399.81
40. Income tax expenses
Items Report period Same period of the previous year
The current income tax calculated by the 36,198,239.85 26,968,746.65
tax law and the relevant regulations
Adjustment of Deferred income tax -3,607,712.44 13,726,387.92
Total 32,590,527.41 40,695,134.57
41. Calculation of Basic earnings per share and Diluted earnings per share
Same period of the
Items Line
Report period previous year
146
Same period of the
Items Line
Report period previous year
Net profit attributable to shareholders of parent
1
company 157,483,597.89 145,165,687.23
Non-recurring gain/loss attributable to the
netprofit of common shareholders of the parent
2
company after deducting of income tax
influences -2,545,927.47 -27,167,582.01
Net profit attributable to common share
holdersof the Company after deducting of 3=1-2
non-recurring gain/loss 160,029,525.36 172,333,269.24
Total shares at the beginning of the year 4 1,257,117,748 1,257,117,748
Additional share capital transferred from public
reserve or additional shares from shares 5
dividend distribution
Additional shares from issuing new shares or
6
debt-converted shares
Accumulative months of the additional share
commencing from the next moth till the end of 7
the year
Decreased shares due to repurchase 8
Accumulative months of the decreased shares
commencing from the next month till the end of 9
the year
Months during the report period, 10 6 6
11=(4+6×7÷10-8×9÷
Weighted average of comm. Shares issued
10)×(4+5+6)÷(4+6) 1,257,117,748 1,257,117,748
Basic earning per share（Net profit attributable
12=1÷11
to shareholders of parent company） 0.13 0.12
Basic earning per share（Non-recurring gain/loss
attributable to the netprofit of common
13=3÷11
shareholders of the parent company after
deducting of income tax influences） 0.13 0.14
Diluted potential comm. Shares dividend
14
recognized as expense
Income tax rate 15
Conversion expense 16
Weighted average of comm. Shares added 17
147
Same period of the
Items Line
Report period previous year
throuthwarrant, exercise of option and
convertible bonds
Diluted earnings per share（Net profit 18=[1+(14-16)×(1-15
attributable to shareholders of parent company） )]÷(11+17) 0.13 0.12
Diluted earnings per share（Non-recurring
gain/loss attributable to the netprofit of 19=[3+(14－
common shareholders of the parent company 16)×(1-15)]÷(11+17)
after deducting of income tax influences） 0.13 0.14
42. Other comprehensive income
Items Amount of current Amount of
period previous period
1.Loss amount produced by sellable financial assets -9,600,000.00 -146,400,000.00
Less ： Deduct: income tax infection produced by sellable
financial assets
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period
Subtotal -9,600,000.00 -146,400,000.00
2. The enjoyed share in other comprehensive income of other
invested unit according to equity method
Less：Deduct: income tax infection produced from the enjoyed
share in other comprehensive income of other invested unit
according to equity method
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former period
Subtotal
3.. Benefit (or loss) amount produced from cash flow
Less：Deduct: income tax infection produced from cash flow
hedging instruments
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former period
Transferred to the adjustment of initial confirmation amount
of items at hedged period
Subtotal
4. Translating difference in foreign currency financial reports
148
Items Amount of current Amount of
period previous period
Less：Deduct: net amount that transferred into profit and loss at
current period in disposed overseas business
Subtotal
5.Other
Less ： taxation infection arising from reckoning other
comprehensive income.
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period
Subtotal
Total -9,600,000.00 -146,400,000.00
Notes：The Company is an investment enterprise. After deduction of investment income not subject to tax
payment, tax loss occurs each year, which is to be made up in the future. Based on the principle of prudence, the
Company has not recognized deferred income tax assets corresponding to uncovered losses. As it is expected that
the income from the disposal of financial assets available for sale is insufficient to make up the Company's tax loss,
the Company needs not pay income tax. Therefore, the Company will not calculate the influence on income tax
arising from these financial assets available for sale.
43. Note Cash flow statement
1. Other cash received from business operation
Items Amount
Newwork received toll income 7,521,055.87
Quality Guarantee Fund，Deposit 6,174,615.18
Interest income 3,852,867.77
Unit current account 5,250,960.03
Total 22,799,498.85
2. Other cash paid for business activities
Items Amount
Management expense 21,140,023.84
Unit current account 11,777,066.73
Total 32,917,090.57
44. Supplement Information of Cash flow statement
1. Supplement Information of Cash flow statement
Same period of the
Supplement Information
Report period previous year
149
Same period of the
Supplement Information
Report period previous year
I.Adjusting net profit to net cash flow in operating activities
Net profit 182,213,888.65 156,235,497.90
Add: Asset devaluation reserve provided -142,376.38 -7,985.84
Fixed assets depreciation, Oil and gas depreciation, Produce
192,403,821.81 180,296,473.69
matter depreciation
Amortization of intangible assets 4,305,381.95 4,043,657.10
Amortization of long-term expenses to be amortized 30,261.30 30,261.30
The loss from the disposal of fixed assets, intangible assets and
-3,545,681.93 54,607,042.73
other long-term assets
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 159,930,860.76 105,880,137.33
Investment loss -195,979,887.96 -170,469,406.79
decrease of deferred tax assets
Increase of deferred tax Liabilities -3,607,712.44 13,726,387.92
Decrease of inventories 60,951.92
Decrease of operating accounts receivable -22,755,884.84 -14,710,936.61
Increase of operating accounts payable 11,304,561.85 -18,069,604.34
Other
Net cash flow generated from operating activities 324,157,232.77 311,622,476.31
II. Investment and financing activities not involving cash receipts
and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III.Net increase of cash and cash equivalent
Balance of cash at the end of the period 1,260,099,335.12 263,138,688.46
Less: Balance of cash at the beginning of the period 1,018,999,531.05 258,881,333.75
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 241,099,804.07 4,257,354.71
2. Relevant information of subsidiaries and other business units obtained or disposed in current period
150
None.
3. Composition of cash and cash equivalents:
Balance in Balance in
Items
year-end year-begin
I. Cash 1,018,999,531.05 1,018,999,531.05
Incl：Stock cash 84,289.76 84,289.76
Bank deposits which can be used at any time 1,017,878,434.19 1,017,878,434.19
Other monetary funds which can be used at any time 1,036,807.10 1,036,807.10
II. Cash equivalent
Incl ：Bond investment due in three months
III. Balance of cash equivalent at the end of the period 1,018,999,531.05 1,018,999,531.05
Notes: Ending cash and cash equivalents balance include the clearing account fund of use-restricted tolls
were RMB 19,579,994.85.
151
VI. Related parties and related transactions
1. Related parties
(1) Particulars about the parent company of the Company
The parent
The parent Organization
company The ultimate
Related Registered Legal Registrated company of the
Name Tyep Nature of the controlling party of Code
parties address representative capital Company's
Company’s the Company
shareholding ratio
vote ratio
No. 27, 2,680,000.00 40.83 43.65 Guangdong 723838552
Equity management,
Guangdong State Baiyyun
Parent traffic infrastructure communication
communication owned Road,Yuexiu Zhu Xiaoling
Company construction and railway
Group Co., Ltd Co., Ltd. District , Group Co., Ltd
project operation
Guangzhou.
Notes
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,
2012,Registered capital: RMB 26.8 billion. It is a solely state-owned limited company. Business scope：equity management, organization of asset reorganization and optimized
allocation, raising funds by means including mortgage, transfer of property rights and joint stock system transformation, project investment, operation and management, traffic
infrastructure construction, highway and railway project operation and relevant industries, technological development, application, consultation and services, highway and railway
passenger and cargo transport, ship industry, relevant overseas businesses（if the above mentioned business scope requires licenses to operate, then operation
licenses are required）.
2.Particulars of the subsidiaries
The The
Related
Legal
Registrated subsidiarie subsidiaries Organization
Name Tyep Registered address representat Nature s of the of the Code
parties capital
ive Company's Company’s
shareholdi vote ratio
152
ng ratio
Limited liability
Company(Taiwan, Hong Zhou Expressway
Guangfo Expressway Subsidiary Kong and Macao and in Shabei West,Guangzhou 20,000.00 75.00 75.00 617401437
Yuming Management
cooperation）
Guangdong Fokai No.83, Baiyun Road, Yuexiu
Li Expressway
Subsidiary Limited liability Company Xiyu 110,800.00 75.00 75.00 231124318
Expressway District ,Guangzhou Management
an
Investment in
Guangdong technical
Limited liability Company
Expressway Wholly-Ow 4/F,Guangdong Expressway Xiao industries and
（Foreign-invested
ned
enterprises and domestic
Building, No.85, Baiyun Road, Laiji provision of 10,000.00 100.00 100.00 731456984
Technology subsidiary Yuexiu District, Guangzhou relevant
join u
Investment Co., Ltd. consulting
services
3. Infornation of Joint venture and Affiliated company
Legal Held Share
Registrated Registrated capital Voting Related Orgabuzatuib
Name Type representat Nature proportion(
address （RMB’0000） proportion(%) parties code
ive %)
I. Joint venture
1.Guangdong Guanghui Limited liability Guangzhou, Liu Expressway Joint
2,351,678,000.00 30.00 30.00 707685410
Expressway Co., Ltd. Company Guangdong Gangliang Management venture
2. Zhaoqing Yuezhao Highway Co., Limited liability Zhaoqing, Wang Expressway Joint
818,300,000.00 25.00 25.00 708157003
Ltd. Company Guangdong Jiachen Management venture
Limited liability Wang Organic fertilizer Joint
3.Beijing Gelin Enze Beijing 20,000,000.00 35.00 35.00 759411622
Company Jianji production and sell venture
II. Affiliated company
1.Shenzhen Huiyan Expressway Limited liability Shenzhen, Xu Expressway 36,000,000.00 33.33 33.33 Affiliated 192203792
153
Legal Held Share
Registrated Registrated capital Voting Related Orgabuzatuib
Name Type representat Nature proportion(
address （RMB’0000） proportion(%) parties code
ive %)
Co., Ltd. Company Guangdong Xiaoyang Management company
2.Guangdong Maozhan Expressway Limited liability Guangzhou, Expressway Affiliated
Li Jinfeng 1,120,000,000.00 20.00 20.00 707668637
Co., Ltd. Company Guangdong Management company
Limited liability Guangzhou, Expressway Affiliated
3. Jingzhu Expressway Guanzhu Lu Yaxing 580,000,000.00 20.00 20.00 617401445
Company Guangdong Management company
4.Guangdong Jiangzhong Limited liability Guangzhou, Expressway Affiliated
Lu Yaxing 1,045,000,000.00 15.00 15.00 742962356
Expressway Co., Ltd. Company Guangdong Management company
Other Limited
Yao Expressway Affiliated
liability Ganzhou, Jiangzi 600,000,000.00 30.00 30.00 772390395
Diming Management company
5.Ganzhou Kangda Expressway Company
6.Ganzhou Gankang Expressway Limited liability Gangzhou, Xiao Expressway Affiliated
700,000,000.00 30.00 30.00 799467196
Co., Ltd. Company Jiangxi Zhunliang Management company
7.Guangdong Guangle Expressway Limited liability Guangzhou, Expressway Affiliated
Li Jinfeng 500,000,000.00 30.00 30.00 69693015X
Co., Ltd. Company Guangdong Management company
154
4. Other Related parties
Organization Code
Relation with the Company
Name
Fully owned subsidiary of the
Guangdong Expressway Co., Ltd. 190330413
parent company
Fully owned subsidiary of the
Guangdong Nanyue Logistics Co., Ltd. 719285123
parent company
Fully owned subsidiary of the
Guangdong Changda highway Co., Ltd. 190334510
parent company
Fully owned subsidiary of the
Guangdong Guanyue Luqiao Co., Ltd. 231129768
parent company
Guangdong Hualu communication Technology Fully owned subsidiary of the
736195293
Co., Ltd. parent company
Fully owned subsidiary of the
Guangdong Shipping Planning and Design Institute 455857764
parent company
Guangdong Xinyue Communication Investment Fully owned subsidiary of the
707656521
Co., Ltd. parent company
Fully owned subsidiary of the
Guangdong Gaoda Property Development Co., Ltd. 707685592
parent company
Guangdong East Thinking Management Technology Fully owned subsidiary of the
724762107
Development Co., Ltd. parent company
Fully owned subsidiary of the
Guangzhou Xinruan Computer Technology Co., Ltd. 725017352
parent company
Guangdong Communication Development Fully owned subsidiary of the
190324937
Company parent company
Guangdong Tongyi Expressway Services Fully owned subsidiary of the
724795996
Area Co., Ltd. parent company
Fully owned subsidiary of the
Guangdong Lulutong Co., Ltd. 231125505
parent company
Fully owned subsidiary of the
Guangdong Xinlu Adverting Co., Ltd. 747072344
parent company
Fully owned subsidiary of the
Guangzhou Xinyue Asphalt Co., Ltd. 714289942
parent company
Fully owned subsidiary of the
Guangdong Highway Construction Co.,Ltd. 190335177
parent company
Guangdong Zhaoyang Expressway Co.,Ltd. Fully owned subsidiary of the 681314303
155
Organization Code
Relation with the Company
Name
parent company
Fully owned subsidiary of the
Guangdong Kaiyang Expressway Co., Ltd. 712226008
parent company
Fully owned subsidiary of the
Guangdong Yuzhan Expressway Co., Ltd. 752877577
parent company
Fully owned subsidiary of the
Guangdong Shanfen Expressway Co., Ltd. 719339187
parent company
Fully owned subsidiary of the
Guangdong Yunwu Expressway Co., Ltd. 75108396X
parent company
Fully owned subsidiary of the
Guangdong Shenshan West Expressway Co., Ltd. 675660592
parent company
Fully owned subsidiary of the
Guangdong Zhanxu Expressway Co., Ltd. 679739898
parent company
Fully owned subsidiary of the
Yunfu Guangyun Expressway Co., Ltd. 744489224
parent company
(II) Related transactions.
1. The transactions among the subsidiaries that have controlling relations and have been
incorporated into the consolidated accounting statements of the Company and the
transactions among the parent companies and subsidiaries have been offset.
2 Related transactions on purchasing goods and receiving services
Pricing Amount in current period Amount in last period
Content of
principle of
Related parties related Proportion Proportion
related Amount Amount
transaction （%） （%）
transactions
1. Operating costs
Guangdong Guanghui Expressway
Rent Market price 1,191,666.67 0.43 962,500.00 0.38
Co., Ltd.
Guangzhou Xinruan Computer Receiving
Market price 283,500.00 0.10 195,450.00 0.08
Technology Co., Ltd labor
Guangdong Xinyue
Receiving
Communication Investment Co., Market price 184,000.00 0.07
labor
Ltd.
Guangdong Hualu communication Receiving
Market price 116,775.00 0.04
Technology Co., Ltd labor
Guangdong Communication Receiving Market price 4,054,421.87 1.61
156
Pricing Amount in current period Amount in last period
Content of
principle of
Related parties related Proportion Proportion
related Amount Amount
transaction （%） （%）
transactions
Development Company labor
Guangdong Changda highway Receiving
Market price 2,235,559.28 0.89
Co., Ltd. labor
Subtotal of Operating costs 1,775,941.67 0.64 7,447,931.15 2.96
2. Management expenses
Rent
Guangdong Litong Property
Manageme Market price 1,694,950.00 2.18
Investment Co., Ltd.
nt fees
Rent
Guangdong Gaoda Property
Manageme Market price 1,360,268.59 1.75 1,117,663.80 1.83
Development Co., Ltd.
nt fees
Guangdong Xinlu Adverting Co., Services
Market price 244,316.00 0.31
Ltd. fee
Subtotal of Management expenses 3,299,534.59 4.24 1,117,663.80 1.83
3.Financial Expenses
Guangdong Guanghui Expressway
Interest Market price 2,857,706.25 1.83 2,359,350.00 2.25
Co., Ltd.
Guangdong Expressway Co., Ltd. Interest Market price 85,062.50 0.08
Subtotal of financial expenses 2,857,706.25 1.83 2,444,412.50 2.33
4. Construction on process
Guangdong Changda highway Project
Market price 210,860,019.00 34.66 130,628,036.00 26.13
Co., Ltd. fund
Guangdong Guanyue Luqiao Co., Project
Market price 116,884,549.00 19.21 87,105,657.00 17.42
Ltd. fund
Guangdong Hualu communication Project
Market price 2,644,690.00 0.43 1,365,089.00 0.27
Technology Co., Ltd. fund
Project
Guangdong Expressway Co., Ltd. Market price 9,583,404.53 1.92
fund
Guangdong Xinyue
Project
Communication Investment Co., Market price 284,014.20 0.06
fund
Ltd
Subtotal of Construction on
330,389,258.00 54.30 228,966,200.73 45.80
process
157
3.Related transactions on sale goods and receiving services
Pricing Amount in current period Amount in last period
Content of
principle of
Related parties related Proportion Proportion
related Amount Amount
transaction （%） （%）
transactions
1. Operating Income
Guangdong Expressway Co., Ltd. Rent Market price 486,213.52 0.09 301,838.52 0.11
Polyesterfi
Guangdong Changda highway
ber cloth Market price 322,951.46 0.06
Co., Ltd.
for sale
Guangdong Guanyue Luqiao Co.,
Rent Market price 45,546.00 0.01 133,860.00 0.05
Ltd.
Subtotal of Operating Income 854,710.98 0.16 435,698.52 0.16
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, 2012, The
Company has not borrowed the above-mentioned entrusted loan is RMB 105 million 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.,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.As of June 30, 2012, Guangfo Expressway expansion
project has not been completed budget of the project.
(3)Our controlled subsidiary company Guangdong Fokai Expressway Co.,Ltd. is planning to carry out expansion &
reconstruction for the section from xiebian to sanbao. On May 20, 2005,Guangdong Fokai Expressway Co.,Ltd. and
Guangdong Expressway 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 2008. According to the above agreement, Guangdong Fokai Expressway Co.,Ltd. will entrust the
construction and management of fo-kai highway extension project for the section from xiebian to sanbao to Guangdong
Expressway Co.,Ltd. and Guangdong Fokai Expressway Co.,Ltd. will pay the construction & management Fee of
entrustment to Guangdong Expressway Co.,Ltd.
（4）On June 15, 2007，The 325 Jiujiang Bridge collapsed on # 23 pier for “Nanguijii 035” collision owned by the
controlling subsidiary of the company Guangdong Fokai Expressway Company leads the collapse and the traffic jam of
200 meters long of the Jiujiang Bridge
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
158
works of Jiujiang Bridge and related management work. The restoration has been finished and was open in June 10,
2009.As of June 30, 2012, The final restoration is not complete.
(III). Payables and receivables of the related party
⑴Listed company related party fund
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Account receivable
Guangdong Guanghui Expressway
1,993,930.00 1,993,930.00
Co., Ltd.
Guangdong Expressway Co., Ltd. 264,375.00 80,000.00
Guangdong Lulutong Co., Ltd. 18,004.85 9,002.43 18,004.85 9,002.43
Zhaoqing Yuezhao Highway Co., Ltd 1,418,695.00
Guangdong Kaiyang Expressway
559,216.00
Co., Ltd
Yunfu Guangyun Expressway Co.,
85,999.00
Ltd.
Subtotal of account receivable 2,276,309.85 9,002.43 4,155,844.85 9,002.43
Prepayment
Guangdong Changda Highway
88,157,232.60 81,456,449.60
Engineering Co., Ltd.
Guangdong Guanyue Luqiao Co.,
33,026,247.00 34,969,681.00
Ltd.
Guangdong Hualu Communication
200,000.00 200,000.00
Technology Co., Ltd.
Subtotal of Prepayment 121,383,479.60 116,626,130.60
Dividend receivable
Jingzhu Expressway Guangzhu
6,215,431.47 54,443,449.58
Section
Guangdong Guanghui Expressway
36,215,431.47
Co., Ltd.
Subtotal of Dividend receivable 6,215,431.47 90,658,881.05
Other receivable
Beijing Gelin Enze 12,220,079.91 12,220,079.91 12,220,079.91 12,220,079.91
159
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Guangdong Guanyue Luqiao Co.,
1,575,967.15 1,575,967.15
Ltd.
Guangdong Litong Property
1,400,176.00
Investment Co., Ltd.
Guangdong Guanghui Expressway
500,000.00 500,000.00
Co., Ltd
Guangdong Kaiyang Expressway
461,907.56 62,443.00
Co., Ltd.
Zhaoqing Yuezhao Highway Co.,
419,254.95 412,811.45
Ltd.
Guangdong Maozhan Expressway
118,469.97 15,734.00
Co., Ltd.
Guangdong Yunwu Expressway Co.,
107,122.00 2,556.78
Ltd.
Guangdong Gaoda Preperty
91,500.00 91,500.00
Development Co., Ltd.
Yunfu Guangyun Expressway Co.,
82,960.14
Ltd.
Guangdong Highway Construction
48,180.31
Co.,Ltd.
Guangdong Shanfen Expressway
24,486.00 24,486.00
Co., Ltd.
Guangdong Yuzhan Expressway Co.,
23,657.46 14,294.00
Ltd.
Guangdong Zhanxu Expressway Co.,
23,267.22
Ltd.
Guangdong Shenshen Expressway
6,601.92
Co., Ltd
Guangdong Guangshao Expressway
3,762.70 3,762.70
Co., Ltd.
Guangdong Xinyue Communication
2,158.60 2,158.60
Investment Co., Ltd.
Guangdong Expressway Co., Ltd 4,818,608.57
160
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Guangdong Yangmao Expressway
130,577.74
Co., Ltd.
Subtotal of other receivable 17,109,551.89 12,220,079.91 19,874,979.90 12,220,079.91
Notes：The receivables from related parties can be offset if the related transaction is agreed to settle on the net basis,
after that, the amounts can be listed.
⑵The listed company Payables of the related party
Amount at year
Amount at year end
Name Related party beginning
Balance book Balance book
Account payabl
Guangdong Changda highway Co., Ltd. 37,519,368.22 15,248,083.27
Guangdong Expressway Co., Ltd. 19,986,871.20 19,986,871.20
Xinyue Communication Investment
8,724,800.94 10,026,441.09
Co., Ltd.
Guangdong Guanyue Luqiao Co., Ltd. 7,572,689.98 5,015,887.76
Guangdong Guanghui Expressway
5,133,333.34 3,941,666.67
Co., Ltd.
Guangzhou Xinruan Computer Technology
1,079,980.00 2,218,780.00
Co., Ltd
Guangdong Hualu communication
750,109.00 780,722.00
Technology Co., Ltd.
Guangdong East Thinking Management
207,804.00 207,804.00
Technology Development Co., Ltd.
Guangdong Communication Development
284,502.65 2,337,674.15
Co., Ltd.
Guangdong Communication Group
90,474.00
Inspection Center
Subtotal 81,259,459.33 59,854,404.14
Advance account
Guangdong Expressway Co., Ltd. 90,551.56 392,390.08
161
Amount at year
Amount at year end
Name Related party beginning
Balance book Balance book
Subtotal 90,551.56 392,390.08
Interest payable
Guangdong Guanghui Expressway Co., Ltd. 2,658,075.00 2,625,918.75
Subtotal 2,658,075.00 2,625,918.75
Other payable
Guangdong Guanghui Expressway Co., Ltd 105,000,000.00 105,000,000.00
Guangdong Changda highway Co., Ltd. 64,792,281.56 69,643,948.91
Guangdong Guanyue Luqiao Co., Ltd 25,108,563.61 22,357,818.44
Guangdong Expressway Co., Ltd. 8,290,218.80 2,793,419.35
Guangdong Communication Development
1,492,418.03 1,952,418.03
Company
Xinyue Communication Investment
1,421,776.25 1,839,382.70
Co., Ltd.
Guangdong Litong Property Investment Co., Ltd. 994,862.00
Guangdong Hualu communication
255,054.50 255,254.50
Technology Co., Ltd.
Guangdong HighwayConstruction Co., Ltd. 211,680.13 73,610.38
Guangdong Tongyi Expressway
205,000.00
Services Area Co., Ltd.
Guangzhou Xinruan Computer Technology
131,630.00 99,130.00
Co., Ltd.
Guangdong Maozhan Expressway Co., Ltd. 61,129.53
Guangdong West Coast Expressway Trading Co., Ltd. 49,628.87 0.33
Guangdong Zhanxu Expressway Co., Ltd. 42,812.80
Guangdong Xinlu Adverting Co., Ltd. 30,000.00 30,000.00
Guangdong Yuzhan Expressway Co., Ltd. 20,612.44
Guangdong Zhaoyang Expressway Co., Ltd. 8,377.43
Guangdong West Coast Expressway
3,100.00 3,100.00
Trading Co., Ltd.
Subtotal 208,119,145.95 204,048,082.64
162
Notes：The receivables from related parties can be offset if the related transaction is agreed to settle on the net basis,
after that, the amounts can be listed.
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- Sanbao
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. 16, : 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, 2012, The company has invested accumulated RMB
729.9975 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, 2012, 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, 2012, Department. the fund of the Company
has not invested yet.
5. The 9th (provisional) meeting of the sixth Board of Directors of Guangdong Provincial Expressway Development Co.,
Ltd. ("the Company") was held of January 31, 2011，The meeting examined and adopted the Proposal on Applying to
163
Guangdong Communication Group Co., Ltd. for Entrusted Loans.Approving the company to apply to the controlling
shareholder of Guangdong Communication Group Co., Ltd. for the entrusted loans of RMB 80 Million for the daily
management turnover with a period of 1 year, the interest rate of load will float down 10% based on People's Bank of
basic rate of interest for loans of the time. 预计利息为 418 万,For this load is Credit, the debts can be repaid in advance
as necessary, and the specific implementation can also be authorized to the operation team. As of June 30, 2012, the
company did not loan above-mentioned loan.
6. The Company held the first provisional Shareholders’ General meeting on February 29, 2012 , The meeting examined
and adopted the Proposal Concerning Matters Related to Fokai Company's Financing from State Development Bank.
Guangdong Fokai Expressway Co., Ltd. (hereinafter referred to as "Fokai Company"), a controlled subsidiary of the
Company, was approved to accept the project loan of RMB 750 million extended by State Development Bank Co., Ltd.
RMB 400 million and RMB 350 million will be used respectively for the reconstruction and expansion project of Fokai
Expressway and major repair project of Fokai Expressway under construction. The loan term is not more than 15 years
from the withdrawal day of the first sum of loan. As for the interest rate of the loan, the basic interest rate of RMB loans
of the same class quoted by People's Bank of China in the same period shall apply. It was approved to authorize the
management of the Company to implement the above-mentioned matters. 本项贷款为质押贷款,Fokai Company was
approved to provide pledge guarantee for the loan extended by State Development Bank Co., Ltd. with 25% of toll
collection right. As of June 30, 2012, It was approved to authorize the management of the Company to implement the
above-mentioned matters.
7. The 23rd (Provisional) meeting of the Sixth board of directors of Guangdong Provincial Expressway Development
Co., Ltd. was held of February 24, 2012 ，The meeting examined and adopted the Proposal Concerning the Company's
Plan for Investing in Guangdong Broadcasting and Television Through Investing in Guangdong Broadcasting and
Television Network Investment Limited Partnership. The Company was approved to invest in Guangdong Broadcasting
& Television Network Co., Ltd. through investing in Guangdong Broadcasting and Television Network Investment
Limited Partnership (temporary name, subject to the name of partnership in the Partnership Agreement signed by the
Company) with self-owned funds of not more than RMB 200 million.The meeting agreed to authorizing the
management of the Company to handle relevant subsequent matters of this investment. As of June 30, 2012, the fund of
the Company has not invested yet.
8. The 26th (Provisional) meeting of the Sixth board of directors of Guangdong Provincial Expressway Development
Co., Ltd. was held of May 10, 2012. The meeting examined and adopted the Proposal Concerning the Company's
Accepting the Insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. The Company was approved to
accept the insurance bond investment plan made by Pacific Asset Management Co., Ltd. The amount of proceeds to be
raised is not more than RMB 1.5 billion. Floating interest rate plus guaranteed base interest rate applies as the interest
rate. The floating interest rate shall not exceed the basic interest rate of RMB loan with a term of over five years on the
day when the investment fund of the insurance company is transferred into the Company's account and the
corresponding days of the future years, which shall be adjusted once each year. The guaranteed base interest rate is 5.6%.
The concrete amount of raised proceeds shall be within maximum limit of investment fund filed with CIRC. the actual
amount wholly transferred to the Company shall apply. The final interest rate is subject to Investment Contract for Bond
Investment Plan Between Pacific and Guangdong Expressway filed with CIRC. It was approved to authorize the
management of the Company to implement the above-mentioned matters.
The Company was approved to provide counter guarantee to Guangdong Communication Group Co., Ltd. with 75%
equity of Guangdong Fokai Expressway Co., Ltd. held by it. As of June 30, 2012, the company did not loan
above-mentioned loan.
(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.
164
As of the approval of this financial reports date,there is no disclosure of the Post-balance-sheet of the Company.
X. Other events
1．Fokai Expressway has operated Jiujiang Bridge’s management and maintain,2007, June 15 early in the morning, The
325 Jiujiang Bridge collapsed on # 23 pier for “Nanguijii 035” collision owned by the controlling subsidiary of the
company Guangdong Fokai Expressway Company leads the collapse and the traffic jam of 200 meters long of the
Jiujiang Bridge. On June 10, 2009, Jiujiang Bridge opened to traffic has been restored.
On June 19,2007， The Ministry of Communications, the State Production Safety Supervision and Administration
Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15 "Jiujiang Bridge
Collision Accident", initially determined the causes of the accident are: the incident ship suddenly met heavy fog on the
way from Foshan Gaoming to Sunde, the captain neglected looking out, did not take proper measures and deviated from
the main channel, touched the 325 National Road Jiujiang Bridge the non-navigation bridge pier and caused the
collapsion of part of the Jiujiang bridge. The accident was an unilateral responsibility of the ship.
On July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August 22,2007，
Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping Company
Limited and Yang Xiong to undertake the conpensation 25,587,684 yuan for the loss caused by collapsion of Jiujiang
Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa No.
332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case was suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial Government had not made
the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the proceeding. In
September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed 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.
2.In June 2003, Guangdong Expressway Technology Investment Co., Ltd., a wholly-owned subsidiary of the Company,
signed Entrusted Loan Agreement with Beijing Bank and Beijing Gelin Enze Organic Fertilizer Co., Ltd. According to
the agreement, Guangdong Expressway Technology Investment Co., Ltd. entrusted Xisi Sub-branch of Beijing Bank to
lend RMB 8 million to Beijing Gelin Enze Organic Fertilizer Co., Ltd. with a term of one year. Meanwhile, Guangdong
Expressway Technology Investment Co., Ltd. Beijing Gelin Enze Organic Fertilizer Co., Ltd. and Wang Jianji (the
board chairman of Beijing Gelin Enze Organic Fertilizer Co., Ltd.) jointly signed Guarantee Contract. According to the
contract, Wang Jianji shall bear joint liability for repayment in respect of the loan of RMB 8 million and corresponding
interests, damages and expenses.
As Beijing Gelin Enze Organic Fertilizer Co., Ltd. failed to repay due borrowings, Guangdong Expressway Technology
Investment Co., Ltd. brought an action against Wang Jianji to Guangdong Guangzhou Yuexiu District People's Court on
May 31, 2006.
On September 11, 2008, Guangzhou Intermediate People's Court judged case transfer for jurisdiction. Beijing Xicheng
District People's Court held hearings on September 16, 2009. 2On April 15, 2010, Beijing Xicheng District People's
Court issued (2009) Xi Min Chu Zi No. 5881 Civil Judgment and judged that Guangdong Expressway Technology
Investment Co., Ltd. won the lawsuit. The Defendant refused to accept the judgment and instituted an appeal to Beijing
First Intermediate People's Court. 2On October 19, 2010, Beijing First Intermediate People's Court made the final
judgment and issued (2010) Yi Zhong Min Zhong Zi No. 10701 Civil Judgment to reject the appeal of the Defendant
and maintain the original judgment in the first instance.
In November 2010, Guangdong Expressway Technology Investment Co., Ltd. applied to the court for enforcement in
respect of the attached 2.5 flats of the Defendant. 2On February 15, 2011, the court informed that the procedure for
placing enforcement on file had been completed. File No.: (2011) Xi Zhi Zi No. 00039. At present, the enforcement
procedure is still being implemented.
On July 14, 2011, Wang Jianji has applied for a retrial.On May 8, 2012, Beijing Higher People's Court issued (2012)
Gao Min Ti Zi No. 391 Written Civil Judgment to revoke the judgment of Beijing First Intermediate People's Court and
Xicheng District People's Court. Within 15 days from the effective date of this judgment, Gelin Company shall pay
RMB 8 million and accrued interest and damages (1% of payment) to Technology Company with all its assets. When
Gelin Company's assets are insufficient to repay the loan, Wang Jianji shall pay the part that Gelin Company fails to pay.
On May 21, 2012, Guangdong Expressway Technology Investment Co., Ltd. applied to the court for enforcement. At
165
present, the enforcement procedure is still being implemented.
3. Guangdong Expressway Technology Investment Co., Ltd., a wholly-owned subsidiary of the Company, extended a
loan of RMB 3 million to Beijing Gelin Enze Organic Fertilizer Co., Ltd. in 2005. As Beijing Gelin Enze Organic
Fertilizer Co., Ltd. failed to repay due borrowings, Guangdong Expressway Technology Investment Co., Ltd. brought an
action against this company to Beijing Changping District People's Court. On July 25, 2006, Beijing Changping District
People's Court issued (2006) Chang Min Chu Zi No. 7131 Civil Judgment and judged that Beijing Gelin Enze Organic
Fertilizer Co., Ltd. should repay RMB 3 million to Guangdong Expressway Technology Investment Co., Ltd.
On December 28, 2006, Guangdong Expressway Technology Investment Co., Ltd. applied to the court for compulsory
enforcement. 2In June and September of 2008, the court put the properties of Beijing Gelin Enze Organic Fertilizer Co.,
Ltd. up for auction twice but failed to sell them. At present, the enforcement procedure is still being implemented.
4. According to Yue Fei (2012) No. 1 Notice of Unifying the Charging Standard of Vehicle Toll for Expressways in
Guangdong Province issued by Guangdong Price Bureau and Guangdong Transportation and Communication
Department, the Company estimated the toll income of the expressway projects partly or wholly held by it and expected
that its net profit for the owners of the parent company for 2012 would decrease by about RMB 32 million due to
decrease of income. On May 31, 2012, the Company issued an important event announcement in respect of this matter.
XI. Parent company financial statements
（1）Other receivables
1. Type analyse：
Amount in year-end
Type Book Balance Bad debt povision
Amount Proportio(%) Amount Proportio(%)
Individually significant accounts receivable 32,530,422.85 80.92 32,530,422.85 100.00
Group I:Receivables providedbad debt provision In the group 7,668,382.74 19.08 1,658,571.80 21.63
Group I:Other Receivables account reveivables on which
5,284,247.78 13.15 1,658,571.80 31.39
bad debt provisions are provided on other basis
Group II：Other Receivables account reveivables on which
2,384,134.96 5.93
bad debt provisions are provided on other basis
Other non-material other receivables
Total 40,198,805.59 100.00 34,188,994.65 85.05
On table
Amount in year-begin
Type Book Balance Bad debt povision
Amount Proportio(%) Amount Proportio(%)
Individually significant accounts receivable 32,530,422.85 85.95 32,530,422.85 100.00
Group I:Receivables providedbad debt provision In the group 5,316,026.70 14.05 1,658,571.80 31.20
166
Group I:Other Receivables account reveivables on which
2,925,352.53 7.73 1,658,571.80 56.70
bad debt provisions are provided on other basis
Group II：Other Receivables account reveivables on which
2,390,674.17 6.32
bad debt provisions are provided on other basis
Other non-material other receivables
Total 37,846,449.55 100.00 34,188,994.65 90.34
——Other Account reveivables on which bad debt provisions are provided on age basis in group：、
Amount in year-end Amount in year-begin
Age Book Balance Book Balance
Bad debt povision Bad debt povision
Amount Proportio(%) Amount Proportio(%)
Within 1
3,625,675.98 68.61 1,266,780.73 43.30
year
1-2 years
2-3 years
3-4 years
4-5 years
Over
1,658,571.80 31.39 1,658,571.80 1,658,571.80 56.70 1,658,571.80
5years
Total 5,284,247.78 100.00 1,658,571.80 2,925,352.53 100.00 1,658,571.80
——No individually insignificant receivables with bad debt provision recognized individually at the end of period.
Name Book Balance Bad debt provision
Guangdong Xingyu Law Office 2,297,134.96
Guangdong Gaoda Property Development Co., Ltd. 87,000.00
Total 2,384,134.96
receiv——There is no significant amount or the test of depreciation of value of bad debts provision of other
accounts able at the ending.
Other receivables Book balance Amount of bad debts Proportion (%) Reasons
Kunlun Securities Co., Ltd. 32,530,422.85 32,530,422.85 100.00 Notes
Total 32,530,422.85 32,530,422.85
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
167
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. The recovered debt amount in 2011 is RMB
667,959.27 which had been offset from the provision for bad debts.
(2) There is no Reversal or Recovery of the Current Period
⑶There 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.
⑹The top five companies in the amount of other receivables
The
proportion
Relationship with of the total
Name Amount Aging
the Company of other
receivables
(%)
Kunlun Securities Co.,Ltd No relationship 32,530,422.85 Over 5 years 80.92
Within 5
Guangdong Xingyu Law Office No relationship 2,297,134.96 5.71
years
Heshan Transportation real estate No
1,470,000.00 Over 5 years 3.66
Development Company relationship
Guangdong Litong Property Investment The controlling Parent Within 1
1,400,176.00 3.48
Co., Ltd. Company year
Guangzhou Meixiang Affairs Service Co., Within 1
No relationship 392,360.00 0.98
Ltd. year
Total 38,090,093.81 94.75
⑺The accounts receivable from the Related parties
The proportion of
Relationship with the
Name Amount Time the total of other
Company
receivables (%)
Guangdong Litong Property The controlling Parent Within 1
1,400,176.00 3.48
Investment Co., Ltd. Company year
Guangdong Gaoda Preporty The controlling Parent
87,000.00 3-4 years 0.22
Development Co., Ltd. Company
Total 1,487,176.00 3.70
⑻There 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.
168
（II）)Long- term s equity investment
Increase/ Balance in
Name Account method Initial amount Balance in year-begin
decrease year-end
Guangdong Guangfo Expressway
Cost method 242,151,386.98 154,982,475.25 154,982,475.25
Co., Ltd.
Guangdong Expressway Technology Investment
Cost method 95,920,000.00 95,731,882.42 95,731,882.42
Co., Ltd.
Guangdong Fokai Expressway Co., Ltd. Cost method 2,537,173,165.77 1,594,044,211.85 180,000,000.00 1,774,044,211.85
Guangdong Guanghui Expressway Co., Ltd. Equity method 705,503,400.00 816,392,146.97 60,537,578.86 876,929,725.83
Zhaoqing Yuzhao Highway Co., Ltd. Equity method 201,770,945.42 216,166,050.63 8,470,380.29 224,636,430.92
Shenzhen Huiyan Expressway Co., Ltd Equity method 35,231,299.69 150,137,620.80 -1,919,450.93 148,218,169.87
Guangdong Maozhan Expressway Co., Ltd. Equity method 224,000,000.00 152,321,403.90 12,746,052.72 165,067,456.62
Jingzhu Exprwssway Guanzhu Equity method 247,848,488.93 388,055,869.31 50,658,961.65 438,714,830.96
Guangdong Jiangzhong Expressway
Equity method 156,750,000.00 152,013,509.44 3,052,337.78 155,065,847.22
Co., Ltd.
Ganzhou Kangda Expressway Equity method 216,251,100.00 117,064,120.24 3,071,418.34 120,135,538.58
Ganzhou Gankang Expressway
Equity method 226,379,000.00 197,769,048.86 -5,905,741.14 191,863,307.72
Co., Ltd.
Guangdong Guangle Expressway Equity method 729,997,500.00 728,141,601.73 728,141,601.73
Huaxia Securities Co., Ltd.(Notes 1) Cost method 5,400,000.00 5,400,000.00 5,400,000.00
Huazheng Assets Management Cost method 1,620,000.00 1,620,000.00 1,620,000.00
169
Increase/ Balance in
Name Account method Initial amount Balance in year-begin
decrease year-end
Co. Ltd.(Notes 2)
Total 5,625,996,286.79 4,769,839,941.40 310,711,537.57 5,080,551,478.97
On table
Impairment
Impairment
Voting provision in Current cash
Name Popoortion Notes provision in
proportion(%) the report dividend
year-end
period.
Guangdong Guangfo Expressway
75.00 75.00
Co., Ltd.
Guangdong Expressway Technology Investment Co., Ltd. 100.00 100.00
Guangdong Fokai Expressway Co., Ltd. 75.00 75.00 24,368,180.33
Guangdong Guanghui Expressway Co., Ltd. 30.00 30.00
Zhaoqing Yuezhao Highway Co., Ltd. 25.00 25.00 11,348,350.39
Shenzhen Huiyan Expressway 33.33 33.33 22,000,000.00
Guangdong Maozhan Expressway 20.00 20.00
Jingzhu Exprwssway Guanzhu 20.00 20.00
Guangdong Jiangzhong Expressway Co., Ltd. 15.00 15.00
Ganzhou Kangda Expressway 30.00 30.00
170
Impairment
Impairment
Voting provision in Current cash
Name Popoortion Notes provision in
proportion(%) the report dividend
year-end
period.
Ganzhou Gankang Expressway Co., Ltd. 30.00 30.00
Guangdong Guangle Expressway 30.00 30.00
Huaxia Securities Co., Ltd.(Notes 1) 0.27 0.27 5,400,000.00
Huazheng Assets Management Co. Ltd.(Notes 2) 0.54 0.54 1,393,200.00
Total 6,793,200.00 57,716,530.72
171
Notes 1. The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in
December 2005. The Company made full provision for impairment in respect of this long-term equity investment
of RMB 5.4 million.
Notes 2:According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co.,
Ltd. As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was 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 investm ent of RMB 1.62 million.
(III) Operating income and operating cost
Report period Same period of the previous year
Items
Income Cost Income Cost
Other operating i 4,612,807.08 232,106.70 1,790,886.95 232,106.70
Other 4,612,807.08 232,106.70 1,790,886.95 232,106.70
(IV) Investment income
1. Investment income
Same period of the
Items
Report period previous year
Long-term equity investment income by costing 24,368,180.33 29,253,089.97
Long-term equity investment income by equity method 164,059,887.96 147,765,406.79
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 held-to-maturity
investment
Hold the investment income during from available-for-sale
31,920,000.00 22,704,000.00
financial assets
Dispose the investment income from the transactional
financial assets
Dispose the investment income from the held-to-maturity
investment
172
Same period of the
Items
Report period previous year
Dispose the investment income from the available-for-sale
financial assets
Other
Total 220,348,068.29 199,722,496.76
2. Long-term equity investment incomes confirmed by Cost method include:
Same period of Reason to increase or
Unit
Report period the previous year decrease
Guangdong Fokai Expressway Co., Increase the cash dividend
Ltd. 24,368,180.33 distribution
Decrease the cash dividend
Guangfo Expressway Co., Ltd.
29,253,089.97 distribution
Total 24,368,180.33 29,253,089.97
3.long-term equity investment incomes confirmed by equity method include:
Same period of
Unit the Reason to increase or decrease
Report period previous year
Increase in net profit
Guangdong Maozhan Expressway 12,746,052.72 6,067,316.60
Investment Unit
Decrease in net profit
Jingzhu Expressway Guangzhu 50,658,961.65 61,664,514.57
Investment Unit
Decrease in net profit
Guangdong Jiangzhong Expressway 3,052,337.78 4,533,627.21
Investment Unit
Decrease in net profit
Guanghui Expressway 60,537,578.86 71,874,271.44
Investment Unit
Decrease in loss investment
Ganzhou Gankang Expressway -5,905,741.14 -11,633,109.99
Unit in the report period
Increase in net profit
Ganzhou Kangda Expressway 3,071,418.34 -7,608,563.47
Investment Unit
Decrease in net profit
Shenzhen Huiyan Expressway 20,080,549.07 22,488,363.32
Investment Unit
Increase in net profit
Zhaoqing Yuezhao Highway 19,818,730.68 2,234,885.38
Investment Unit
Guangdong Guangle Expressway -1,855,898.27 Not yet operate
173
Total 164,059,887.96 147,765,406.79
4. Undispose the investment income from the long-term equity investments
5. In the report period, the company has no big restriction on the investment earning repatriation
（V）. Supplement Information of Cash flow statement
Same period of the
Supplement Information
Report period previous year
I.Adjusting net profit to net cash flow in operating activities
Net profit
Add: Asset devaluation reserve provided
Fixed assets depreciation,Oil and gas depreciation, Produce
matter depreciation
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
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses
Investment loss
Decrease of deferred tax assets
Increase of deferred tax Liabilities
Decrease of inventories
Decrease of operating accounts receivable
Increase of operating accounts payable
Other
Net cash flow generated from operating activities
II.Investment and financing activities not involving cash receipts
and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III、Net increase of cash and cash equivalent
Balance of cash at the end of the period
Less: Balance of cash at the beginning of the period
Add: Balance of cash equivalent at the end of the period
Less: Balance of cash equivalent at the beginning of the period
174
Same period of the
Supplement Information
Report period previous year
Net increase of cash and cash equivalent
Net profit 108,248,638.46 141,134,385.76
Add: Asset devaluation reserve provided
Fixed assets depreciation,Oil and gas depreciation, Produce
932,867.88 901,764.52
matter depreciation
Amortization of intangible assets
Amortization of long-term expenses to be amortized
The loss from the disposal of fixed assets, intangible assets and
-13,500.00
other long-term assets
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 77,681,118.64 31,940,802.70
Investment loss -220,348,068.29 -199,722,496.76
Decrease of deferred tax assets
Increase of deferred tax Liabilities
Decrease of inventories
Decrease of operating accounts receivable -2,352,356.04 1,080,203.31
Increase of operating accounts payable 21,542,572.32 7,165,568.40
Other
Net cash flow generated from operating activities -14,295,227.03 -17,513,272.07
II.Investment and financing activities not involving cash receipts
and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III、Net increase of cash and cash equivalent
Balance of cash at the end of the period 810,885,058.55 135,341,856.69
Less: Balance of cash at the beginning of the period 701,899,352.28 179,597,767.35
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 108,985,706.27 -44,255,910.66
XII．Supplement Information
(1) Items of Non-recurring Gains & Losses
175
Items Amount Explanation
Gain/loss form disposal of non-current assets -3,545,681.93
Tax refund, deduction and exemption that is examined and approved by
authority exceeding or has no official approval 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.
Income from the exceeding part between investment cost of the
Companypaid for obtaining subsidiaries associates and joint-ventures and
recognizable net assets fair value attributable to the Company when
acquiring the investment.
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
176
Items Amount Explanation
Net amount of non-operating income and expense except the aforesaid
-980,412.83
items
Other non-recurring Gains/loss items
Amount of influence of minority interests 1,131,524.16
Amount of influence of income tax 848,643.13
Total -2,545,927.47
（2）Return on net assets and earnings per share
Return on net Earnings per share（RMB）
Period Profit of the report period assets, Weighted
Fully diluted Weighted average
(%)
Net profit attributable to the
3.35 0.12 0.12
owners of Company.
January –June 2011 Net profit attributable to the owners
of Company after deducting of
3.98 0.14 0.14
non-recurring gain/loss.
Net profit attributable to the
3.77 0.13 0.13
owners of Company.
January –June 2012 Net profit attributable to the owners
of Company after deducting of
3.83 0.13 0.13
non-recurring gain/loss.
——1.Calculation process
Items Line January –June 2012 January –June 2011
Net profit attributable to shareholders of parent
1
company 157,483,597.89 145,165,687.23
Non-recurring gain/loss attributable to the net
profit of common shareholders of the parent
2
company after deducting of income tax
influences -2,545,927.47 -27,167,582.01
Net profit attributable to common share
holdersof the Company after deducting of 3=1-2
non-recurring gain/loss 160,029,525.36 172,333,269.24
Months during the report period, 4 6 6
net assets at the period-begin attributable to
5
common shareholders of the company 4,115,126,105.45 4,283,251,674.35
net assets increased due to issuance of new share
ordebts for equity swap or attributable to 6
common shareholders of the Company -9,600,000.00
net assets, which is about repurchase 7 62,855,887.40 125,711,774.80
177
Items Line January –June 2012 January –June 2011
during the report or cash dividend
reduce, and belongs to company
common shareholders.
number of months from the next month when
net assets Increased to the end of the report 8
period 3 3
number of months from the next month when
net assets decreased to the end of the report 9
period 1 1
Net assets attributable to common shareholders
10
of the Company to the end of the report period 4,200,153,815.94 4,156,305,586.78
weighted.Net assets attributable to common 11=5+1*50%+6×
shareholders of the Company 8÷4-7×9÷4 4,178,591,923.16 4,334,882,555.50
Weighted average return on equity（Net profit
attributable to common shareholders of the 12=1÷11
Company） 3.77% 3.35%
Weighted average return on equity
（Non-recurring gain/loss attributable to the net
profit of common shareholders of the parent 13=3÷11
company after deducting of income tax
influences） 3.83% 3.98%
（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
Balance in Balance in Percentage Variable
Items year-end year-begin in total Alteration reason
asset Ratio
Due to increase of borrowings,
Monetary fund 1,260,099,335.12 1,018,999,531.05 10.06% 23.66% recovery of dividends and cash
inflows from operating activities
Increase of un-split toll at the end of
Account
40,578,972.27 17,726,118.11 0.32% 128.92% month caused the increase of
receivable
accounts receivable
The recovery of dividends
Dividend receivable at the beginning of
6,215,431.47 90,658,881.05 0.05% -93.14%
receivable period in current period caused the
decrease of dividends receivable
178
Balance in Balance in Percentage Variable
Items year-end year-begin in total Alteration reason
asset Ratio
Available for The change of fair value is caused
sale financial 681,600,000.00 691,200,000.00 5.44% -1.39% by the change of share price of
assets China Everbright Bank
The increase of net assets of
Long term invested companies caused the
share equity 3,048,999,709.45 2,918,288,171.88 24.34% 4.48% increase of long-term equity
investment investment accounted for on equity
basis
Provision for depreciation of fixed
Fixed assets 3,924,351,008.07 4,063,417,803.17 31.32% -3.42% assets caused the decrease of book
value of fixed assets
The increase of investment in the
Construction-in expansion project of Fokai
3,319,291,782.82 2,760,092,723.87 26.49% 20.26%
-progress Expressway caused the increase of
construction in progress
Short-term Borrowings increased to meet the
1,041,470,000.00 891,470,000.00 8.31% 16.83%
Loan demand of fund turnover
The increase of income tax for
which Fokai Company made
Tax payable 30,669,192.33 13,070,029.12 0.24% 134.65% provision in current period caused
the increase of taxes and levies
payable
Interest
91,666,971.39 37,161,794.55 0.73% 146.67%The accrued bond interest is not due
payable
Dividends The dividends of the Company for
91,946,474.11 29,154,211.10 0.73% 215.38%
payable 2011 have not been paid
Borrowings increased to meet the
Long-term demand of expansion project and
3,003,474,803.54 3,309,764,803.54 23.97% -9.25%
Loan non-current liability due in 1 year
increased
The amortization for adjustment of
Bond payable 1,791,972,908.14 1,790,792,109.05 14.30% 0.07% interests of bonds issued at discount
caused the increase of book value
The Entrust loan decreased, it
Capital surplus 1,688,358,715.57 1,697,958,715.57 13.48% -0.57% caused the increment of Other
payable
2.The unusual amount or the abnormal changes in the items of the income statement
179
Items Report period Last period Rate Change Rate Reason
Natural increase of vehicle traffic
Business
544,249,165.97 513,043,078.52 253.4% 6.08% volume caused the increase of
income
income
Due to increase of depreciation and
Business cost 276,072,432.07 251,728,804.04 128.5% 9.67% labor cost caused by the increase of
vehicle traffic volume
Due to the change of labor cost and
Administrative 77,632,477.02 60,950,667.18 36.1% 27.37%
other special costs
expense
Financial expenses increased year
on year due to the Company's issue
Financial
156,261,654.01 104,842,371.93 72.7% 49.04% of medium term notes, increase of
expenses
loan principal and interest rate
adjustment.
The receipt of the balance of
Asset
liquidation fee advanced caused the
impairment -142,376.38 -7,985.84 -0.1% 1682.86%
writeback of provision for
loss
impairment of assets
The change of profits of joint stock
subsidiaries and dividend
Investment distribution of Everbright Bank
195,979,887.96 170,469,406.79 91.2% 14.96%
income caused the increase of the
Company's investment income in
current period
Mainly due to the scrapping of
partial intercommunication fly-over
bridges and toll sites along the
Non-operati 772,399.81 54,762,939.21 0.4% -99%
expansion project of Fokai
ng expenses
Expressway in the same period of
previous year.
XIII. The approval of financial reports
The report of the financial statements was approved by all directors of the board
of directors of the Guangdong Provincial Expressway Development Co., Ltd. on
August 10, 2012. .
180
IX . 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 10, 2012.
181
