Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Report 2016
August 2016
1
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
I. Important Notice, Table of Contents and Definitions
The Board of Directors ,the Supervisory committee as well as all directors, supervisors and senior management
staff of the Company warrant that this report is factual, accurate and complete without any false record,
misleading statement or material omission. And they shall be jointly and several liable for that
All the directors have attended the meeting of the board meeting at which this report was examined.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Mr.Zheng Renfa, Compant principal , Mr. Wang Chunhua, General Manager ,Mr.Fang Zhi, Chief of the
accounting owrk, Ms.Liu Xiaomei, Chief of the accounting organ (chief of accounting ) hereby confirm the
authenticity and completeness of the financial report enclosed in this Semi-annual report.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Table of Contents
I. Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII .Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Definition
Refers
Terms to be defined Definition
to
Refers
The Company ,Listed Company, This Company Guangdong Provincial Expressway Development Co.,Ltd.
to
Refers
Communication Group Guangdong Communication Group Co., Ltd.
to
Refers
Province Expressway Guangdong Province Expressway Co., Ltd.
to
Refers
Construction Company Guangdong Highway Construction Co., Ltd.
to
Refers
Yadong Fuxing Yalian Yadong Fuxing Yalian Investment Co., Ltd.
to
Refers
Xizang Yingyue Xizang Yingyue Investment Co., Ltd.
to
Refers
Technology Company Guangdong Expressway Technology Investment Co.,Ltd.
to
Refers
Fokai Company Guangdong Fokai Expressway Co., Ltd.
to
Refers
Guangfo Company Guangdong Guangfo Expressway Co., Ltd.
to
Refers
Guangzhu Traffic Guangzhou Guangzhu Traffic Investment Management Co., Ltd.
to
Refers
Guangzhu East Company Jingzhu Expressway Guangzhu Section Co., Ltd.
to
Guangdong Provincial Expressway Development Co.,Ltd. issues shares
Refers
Major assets restructuring and uses cash to purchase assets and raise counterpart funds and Related
to
transaction
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
II. Basic Information of the Company
1.Company Information
Stock abbreviation: Expressway A, Expressway B Stock code： 000429、200429
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 广东省高速公路发展股份有限公司
Abbreviation of Registered
粤高速
Company (if any)
English name (If any) Guangdong Provincial Expressway Development Co.,Ltd.
English abbreviation (If
GPED
any)
Legal Representative Zhu Zhanliang
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Liu Xiaomei Liang Jirong
46/F, Litong Plaza, No.32, Zhujiang East 45/F, Litong Plaza, No.32, Zhujiang East
Contact address Road, Zhujiang New City, Tihe Disrtict , Road, Zhujiang New City, Tihe Disrtict ,
Guangzhou Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail 53537552@qq.com 139221590@qq.com
3.Other
1.Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
√ Applicable □Not applicable
Email：zqb@gpedcl.com
Registered address, Postal code of the Registered Address,Office Address,Internet Web Site has not changed, refers to the company’s
2015annual report.
2.About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2015 Annual Report.
3．Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license number of taxation
registration and organization code have no change in reporting period, found more details in annual report 2015.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
III. Summary of Accounting Highlights and Business Highlights
I. Summary of accounting /Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
Note:the Company make restatement of the accounting data of the same period last year and the end of last year due to Major assets
restructuring.
√Yes □No
Same period of last year YoY+/-（%）
Reporting period
Before adjustment After adjustment After adjustment
Operating income（RMB） 1,333,492,179.77 724,392,887.59 1,250,134,143.23 6.67%
Net profit attributable to the shareholders
505,899,144.29 231,855,370.05 338,837,143.73 49.30%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders 356,881,714.84 228,030,004.15 228,030,004.15 56.51%
of listed company（RMB）
Cash flow generated by business
932,882,829.38 518,081,630.75 804,186,516.45 16.00%
operation, net（RMB）
Basic earning per share(RMB/Share) 0.29 0.18 0.20 45.00%
Diluted gains per
0.29 0.18 0.20 45.00%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 8.39% 4.49% 6.03% 2.36%
As at the end of the As at the end of last year YoY+/-（%）
reporting period Before adjustment After adjustment After adjustment
Gross assets（RMB） 15,175,588,214.81 12,400,203,367.83 15,126,912,516.70 0.32%
Net assets attributable to Shareholders’
equity attributable to shareholders of the 7,758,425,258.69 5,235,242,444.46 5,855,404,300.43 32.50%
listed company（RMB）
Note 1, on the table over the same period last year (before adjusting) performance for the company implementation
of a major reorganization of assets before 2015 semi annual report to disclose data; over the same period last year
(adjusted) data of the Department of the company a major reorganization of assets, according to enterprises under
the same control combined with related standards on the same period last year financial data retrospective
restatement data.
Note 2, the company during the reporting period, the implementation of the issuance of shares to buy assets of
matters, over the same period last year (before adjusting) basic earnings per share to total share capital
1257117748 shares is estimated; over the same period last year (adjusted) basic earnings per share to the company
non public offering of shares weighted average equity 1723442768 estimates; newspaper report that the basic
earnings per share of the company non - public offering of shares weighted average equity 1729001979 estimates.
Calculation process and calculation based on the "Ninth sections of the financial report" of the "Eighteen
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
supplementary information" "2, net assets income and earnings per share".
Total share capital of the Company up to a trading day before disclosure：
Total share capital of the Company up to a trading day before
2,090,806,126
disclosure(Shares)
Fully diluted EPS based on new share capital (RMB/Share) 0.242
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards.
□ Applicable √Not applicable
No difference .
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
No difference .
III.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
17,214.82
for which assets impairment provision is made)
Current net gains and losses occurred from period-begin to
combination day by subsidiaries resulting from business 102,025,476.76
combination under common control
Other non-business income and expenditures other than the above 62,934,995.14
Less: Amount of influence of income tax 15,736,437.22
Amount of influence of minority interests(after tax) 223,820.05
Total 149,017,429.45 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
IV. Report of the Board of Directors
I. General
In the first half of 2016, the Board of Directors actively promoted the major asset reorganization. Upon
receiving the official approval from the China Securities Regulatory Commission (CSRC), the Board of Directors
organized all parties to implement the reorganization plan. On June 17, 2016, the transfer and handover
procedures of underlying assets purchased by the Company in this major asset reorganization were completed; On
July 8, 2016, the registration and going public work of non-public shares in this major asset reorganization were
completed. So far, the major asset reorganization launched by the Company on April 8, 2015 has been
successfully completed. After completion of the transaction, the Company has taken a full ownership of Fokai
Expressway, and a new holding Guangzhu East Expressway, with shareholding ratio up to 75%, further enhancing
the continuing profitability of the main highway industry. In the first half of 2016, the net profit of the Company
attributable to shareholders of listed companies was RMB 506 million, an increase of 49.30% year-on-year,
showing the effectiveness of reorganization.
II. Analysis on principal Business
General
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of the
Company are as follows:
Volume of vehicle Increase Toll income in the first Increase /Decrease(%)
traffic in the first half /Decrease(%) half year of 2016
year of 2016( vehicles) （RMB’0000）
Guangfo Expressway 26,575,444 13.78% 19,083.76 9%
Fokai Expressway 23,968,177 15.52% 56,928.08 7.1%
Huiyan Expressway 17,044,547 15.49% 10,615.90 11.27%
Jingzhu Expressway Guangzhu 30,170,232 8.43% 54,158.82 5.38%
Section
Guangzhao Expressway 14,315,677 15.73% 28,997.89 20.68%
Guanghui Expressway 21,450,514 13.60% 80,078.11 3.18%
Jiangzhong Expressway 20,429,959 8.87% 19,625.92 4.44%
Kangda Expressway 1,187,605 5.28% 11,553.73 -0.22%
Gangkang Expressway 1,158,072 1.51% 7,324.78 -22.26%
In Guangdong province, Guangdong Expressway’s equity and participation and controlling projects all
increased in varying degrees. The relatively obvious growth was Guangzhao Expressway in the first half of year
increased more than 20.68%,Huiyan Expressway in the first half of year increased more than 10%.The main
factors influencing the revenue growth were: first, the positive influence of the total weight calculation of trucks
that began in June 2015 and the subsequent national ETC network on the revenue growth index over the same
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
period in the first half year of 2016; second, the natural influence of the economic growth; third, the Group
attached great importance to crack down the toll jumpers and do the inspection work. Jiangxi Kangda project drop
slightly with last year, Gankang section continued to decline to -22.26%, because the Xunquan Expressway was
opened to traffic at the end of October 2015, and the docking of the Ruixun section in Jiangxi province and
Pingxing section in Guangdong province of the Jiguang Expressway at the end of last year caused traffic diversion
in the Gankang Expressway, leading to a substantial toll decline.
Year-on-year change of main financial data
In RMB
Same period last YOY
This report period Cause change
year change（%）
Mainly due to the growth of Guangfo,
Operating income 1,333,492,179.77 1,250,134,143.23 6.67% Fokai and Guangzhu East Company Toll
revenue
Mainly due to the growth of toll revenue
Operating cost 558,947,473.08 527,672,324.82 5.93% has led to an increase in depreciation
expense
Strengthen the management of the
Administrative expenses 80,579,615.84 85,292,103.26 -5.53%
Company
Reducing interest-bearing debt led to an
Financial expenses 190,618,235.21 257,512,886.37 -25.98%
decrease in interest expense
Income tax expenses 157,332,820.43 117,044,170.80 34.42% The total profit increase
Mainly due to toll revenue increase
Net cash flows from operating
932,882,829.38 804,186,516.45 16.00% brought the increased cash flow from
activities
operating activities
Mainly due to the implementation of major
asset restructuring program in order to
Net cash flows from investing
-1,656,094,323.59 152,771,749.66 -1,184.03% hold higher cash purchase province Fokai
activities
Company equity and the construction of
the Guangzhu East company claims
Mainly due to the combined effect of the
following factors: (1) the implementation
Net cash flows from financing of major asset restructuring period
1,201,696,913.84 -797,860,532.80 250.61%
activities increased to raise matching funds; (2) the
repayment period to reduce
interest-bearing debt year on year.
Net cash from operating activities and net
Net increase in cash and cash cash from financing activities by the
477,962,215.77 158,597,395.16 201.37%
equivalents inflow and outflow from investing
activities due to the combined effects.
Major changes in profit composition or sources during the report period
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
√ Applicable □Not applicable
During the reporting period, the transfer and handover procedures of underlying assets purchased by the
Company in this major asset reorganization were completed. After completion of the transaction, the new
wholly-owned subsidiary Guangzhu Transportation indirectly controls the shares of Guangzhu East Company,
increasing the net profit of Guangzhu East attributable to its parent company by RMB 170,420,000.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
Implementation of business plans disclosed in previous periods in this period.
The 2016 annual plan disclosed by the Company in the annual report of 2015: under the premise of the
completion of major asset reorganization, the operating income of RMB 2.738 billion, the investment income of
RMB 360 million, and the operating cost less than RMB 1.277 billion shall be realized to ensure the full
completion of the annual objectives assigned by the Board of Directors of the Company. As of June 30, 2016, the
transfer and handover procedures of underlying assets purchased by the Company in this major asset
reorganization have been completed. From January to June in 2016, the Company realized the operating income
of RMB 1.333 billion, investment income of RMB 227 million, and operating cost of RMB 558 million.
III. Business composition
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of principal of gross profit
of revenue in the
Gross profit business cost over rate over the
Turnover Operation cost same period of
rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
Industry
Highway
1,301,706,539.57 540,372,946.74 58.49% 6.65% 4.99% 0.66%
transportations
Other 8,818,369.20 7,356,117.01 16.58% 35.81% 388.61% -60.23%
Product
Highway
1,301,706,539.57 540,372,946.74 58.49% 6.65% 4.99% 0.66%
transportations
Other 8,818,369.20 7,356,117.01 16.58% 35.81% 388.61% -60.23%
Area
Guangfo
190,837,582.98 118,652,429.93 37.83% 9.00% 6.68% 1.36%
Expressway
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Fokai
569,280,788.89 262,799,636.97 53.84% 7.10% 7.37% -0.11%
Expressway
Jingzhu
Expressway 541,588,167.70 158,920,879.84 70.66% 5.38% 0.12% 1.54%
Guangzhu section
Other 8,818,369.20 7,356,117.01 16.58% 35.81% 388.61% -60.23%
IV. Analysis On core Competitiveness
The Company is an infrastructure industry, with main business in developing and operating expressway and
big bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System.
Guangfo Expressway holding company, the Fokai Expressway and Jingzhu Expressway Guangzhu section
are the parts "five vertical and seven horizontal part of the national highway network planning. The holding
highways are also the Guangdong Provincial Expressway Network Plan which provide a strong guarantee for the
traffic flow. At the same time, the regional economy is an important factor affecting highway traffic volume. With
the gradual implementation of expressway network planning of Guangdong Province in recent years, the road
network connection effect has been increasingly better, which contributes to accelerating the growth of vehicle
traffic volume of expressways run by the Company.
V. Analysis on investment Status
1. Foreign Equity investment
（1）External investment
□ Applicable √ Not applicable
There was no foreign investment of the Company in the reporting period.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
（2）Holding of the equity in financial enterprises
√Applicable □Not applicable
Shareholdi
Shareholdi
ng
ng
Number of shares proportion
Number of shares held proportion Book balance at the Gain/loss of the
Company Initial Investment held at the beginning at the Accountin Source of
Company Name at the end of the at the end end of the reporting reporting period
type cost (RMB) of the reporting beginning g items the shares
reporting period(shares) of the period (RMB) (RMB)
period (shares) of the
reporting
reporting
period(%)
period (%)
Financial
China Everbright Commerci assets Subscribe
528,000,000.00 235,254,944 0.50% 235,254,944 0.50% 884,558,589.44 44,698,439.36
Bank al Bank available on 2009
for sale
Total 528,000,000.00 235,254,944 -- 235,254,944 -- 884,558,589.44 44,698,439.36 -- --
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
（3）Investment in securities
□ Applicable √ Not applicable
No securities investment in the report period.
（4） Statement of holding equities in other PLCs
√ Applicable □Not applicable
After approved by the first Provisional General Meeting of shareholders in 2009, which is also the 13th
(Provisional) meeting of the fifth Board of Directors, the Company invested RMB 528 million to subscribe for
240 million shares of China Everbright Bank (CEB) in August 2009. In 2013 the Company sold 4,745,056 shares
in the secondary market. During the reporting period, the number of shares of CEB held by the Company
remained unchanged and its investment income was RMB 45, 697,711.66.
2. Trusted financing, derivate instruments, and trusted loans
（1）Trust management
（2）Derivative investment
□ Applicable√ Not applicable
There was no derivative investment of the Company in the reporting period.
(3) Trusted loans
□ Applicable√ Not applicable
No trusted loans in the report period.
3. Actual usage of raised capital
√ Applicable □Not applicable
（1）General usage of raised capital
√ Applicable □Not applicable
In RMB’0000
Total raised capital 165,000
Total raised capital invested in reporting period 164,500
Total accumulative raised capital invested 164,500
Total raised fund for changes its usage area in report period 0
Total accumulative raised fund for changes its usage area 0
Proportion of total accumulative raised fund for changes its
0.00%
usage area
Explanation on general usage of raised capital
During the reporting period, the Company purchased 25% stock equity of Fokai Company held by Guangdong Expressway
Company through the issuance of A shares and cash payment, 100% stock equity of Guangzhu Transportation held by the
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Construction Company through the issuance of A shares, and the debt to the Guangzhu East Company held by the Construction
Company through cash payment. Meanwhile, the Company issued non-public A shares towards Yadong Fuxing Yalian, Tibet
Yingyue and Guangfa Securities (GF Securities) to raise counterpart funds for part of the cash payment and taxes of the transaction,
as well as to supplement the Company’s working capital. As of June 21, 2016, the Company raised a total sum of counterpart fund
of RMB 1650 million. During the reporting period, RMB 16.5 million was used to cover the underwriting fees; RMB 803.5 million
was used to pay part of the purchase price for 25% stock equity of Fokai Company; RMB 825 million was used to supplement the
working capital of listed companies, all was used to purchase the debts to Guangzhu East Company held by the Construction
Company; and the remaining 5 million has not been used.
（2）Commitments of raised capital
√ Applicable □Not applicable
In RMB’0000
Date
Accumul Investme
Total when the
ated nt Has any
Project raised Total Amount project Benefit
amount progress Has the material
changed(i capital investme invested has realized
Committed investment invested ended the predicted change
ncluding invested nt after in the reached in the
projects and investment at the end reporting result be taken
partial as adjustme reporting the reporting
of the period(% realized place in
change) committe nt (1) period predicted period
reporting )(3)=(2)( feasibility
d applicabl
period(2) 1)
e status
Committed investment projects
The acquisition to pay
part of the price of the June 13,
No 80,350 80,350 80,350 100.00% 1,545.37 Yes No
shares of Fokai 2016
company
Supplementary
June
liquidity of listed No 82,500 82,500 82,500 100.00% 159.37 Yes No
15,2016
companies
The payment for
No 2,150 1,650 1,650 76.74% Yes No
transaction taxes
Subtotal of committed
-- 165,000 164,500 164,500 -- -- 1704.74 -- --
investment projects
Investment orientation for und arising out of plan
No
Total -- 165,000 0 164,500 164,500 -- -- 1704.740 -- --
Situation about not
coming up to schemed
N/A
progress or expected
revenue and the reason
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
( in specific project)
Notes to significant
change in feasibility of N/A
the project
Amount, application Not applicable
and application
progress of the
unbooked proceeds
About the change of
Not applicable
the implementation
site of the projects
invested with the
proceeds
Adjustment of the
implementation way of
investment funded by
raised capital
About the initial Not applicable
investment in the
projects planned to be
invested with the
proceeds and the
replacement
Using the idle Not applicable
proceeds to
supplement the
working capital on
temporary basis
Balance of the Not applicable
proceeds in process of
project implementation
and the cause
About application and
During the reporting period, the unused funds raised 5 million yuan stored in the proceeds account.
status of the proceeds
unused
Problems existing in
application of the
proceeds and the N/A
information disclosure
or other issues
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
（3）Changes of raised funds projects
□ Applicable√ Not applicable
There is no change in raised funds in company reporting period.
（4）Raise capital project situation
Overview of the project to raise funds Date of disclosure Disclosure index
www.cninfo.com.cn .Report of Issuing of shares and
The acquisition to pay part of the price of the
February 16,2016 cash to buy assets and raise matching funds Connected
shares of Fokai company
Transaction (Revised Version)
www.cninfo.com.cn Report of Issuing of shares and cash
to buy assets and raise matching funds Connected
Supplementary liquidity of listed companies February 16,2016
Transaction (Revised Version)
www.cninfo.com.cn Report of Issuing of shares and cash
The payment for transaction taxes February 16,2016 to buy assets and raise matching funds Connected
Transaction (Revised Version)
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
4.Analysis on principal subsidiaries and Mutual Shareholding Companies
√ Applicable □ Not applicable
Particulars about the principal subsidiaries and Mutual shareholding companies
In RMB
Company Company Sectors Registered Operating Income Operating profit
Leading products and services Total assets(RMB) Net assets (RMB) Net Profit (RMB)
Name type engaged in capital (RMB) (RMB)
Operation and management of Fokai
Guangdong RMB
Expressway Co., Ltd., supporting
Fokai Subsidiary Expressway 1.108 6,808,408,399.89 3,545,181,983.09 573,052,092.00 203,336,602.02 199,153,361.78
salvage, maintenance and cleaning,
Expressway billion
supply of parts and components
Operation and management of Fokai
Guangdong RMB
Expressway Co., Ltd., supporting
Fokai Subsidiary Expressway 1.108 376,104,482.72 330,455,438.12 192,164,999.38 55,507,264.96 41,079,773.35
salvage, maintenance and cleaning,
Expressway billion
supply of parts and components
Investing in science and technology
industries. Investment in technical
industries and provision of relevant
consulting services, research and
development of lighting technology,
Guangdong
energy saving and storage technology,
Expressway
photovoltaic technology of solar energy RMB 100
Technology Subsidiary Composite 56,630,990.49 16,021,385.10 14,281,820.92 3,328,860.76 3,335,321.83
and production and sales of relevant million
Investment
products, design, production , release
Co., Ltd
and agency of all kinds of domestic and
foreign advertisements, construction and
maintenance management of highway
projects and domestic trade. （excluding
illegally， or prohibited and restricted
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
by law products）
Guangzhu
Traffic
Highway investment management and RMB 3
Investment Subsidiary Expressway 3,615,220,003.74 1,600,380,976.64 553,201,818.43 303,089,662.33 227,163,929.23
consultation; highway maintenance million
Management
Co., Ltd.
Investment in and construction of
Guangdong
Guanghui Expressway Co., Ltd. and
Guanghui Sharing RMB
Expressway supporting facilities, the toll collection 5,150,254,485.08 3,597,823,352.11 812,080,255.90 507,645,680.56 381,440,117.48
Expressway company 2.352billion
and maintenance management of
Co., Ltd.
Guanghui Expressway
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
5. Significant projects of investments with non-raised funds
□ Applicable √ Not applicable
The company has no project invested by raised fund in the reporting period.
VI. Performance Forecast for January to September 2016
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or
comparing with the same period of last year, and statement of causations.
□ Applicable √ Not applicable
VII. Explanation by the Board of Directors and the Supervisory Committee about the ―non-standard audit report‖
issued by the CPAs firm for the reporting period
□ Applicable √ Not applicable
VIII. Explanation by the Board of Directors about the relevant situation of the ―non-standard audit report‖ of the
previous year
□ Applicable √ Not applicable
IX. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report
period.
√Applicable□ Not Applicable
Which has been adopted. According to the resolution passed at the annual shareholders’ general meeting 2015,
The Company's dividend distribution plan for 2015: With the existing total share capital, i.e., 1,257,117,748 shares,
as the base, cash dividend of RMB 1.50 (including tax) is to be distributed for every 10 shares,Cash dividend of
RMB188,567,662.20 is to be distributed, The undistributed profit was carried forward to the nest year. The
Company had implemented this distribution plan on May 18, 2016.
Special explanation of the cash dividend policy
Whether conformed with the regulations of the Articles of association or the
Yes
requirements of the resolutions of the shareholders’ meeting:
Whether the dividend standard and the proportion were definite and clear: Yes
Whether the relevant decision-making process and the system were complete: Yes
Whether the independent director acted dutifully and exerted the proper function: Yes
Whether the medium and small shareholders had the chances to fully express their
Yes
suggestions and appeals, of which their legal interest had gained fully protection:
Whether the conditions and the process met the regulations and was transparent of the
Yes
adjustment or altered of the cash dividend policy:
X. Preplan for profit distribution and turning capital reserve into share capital in the reporting period
□ Applicable √ Not applicable
The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
21
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
into share capital.
22
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
XI. Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Contents discussed and material
Time Place Way Type Reception
provided
Taikang Asset Management
1. The main content of research:1.
Co., Ltd. Director, Guangzhou
the daily operation; 2. the company's
Securities Asset Management
financial data analysis;3.
Meeting Director ,Beijing Hongdao
March 31,2016 Investigation Institution development strategy; 4. analysis on
room Investment Management Co.,
the industry. 2.Primary data
Ltd. Director and CITIC
investigation: Public information
Secutities Delivery Industry .
company regularly reports
researcher.
Guotai Junan
1. The main content of research:1.
Institute .Researcher ,E-Fund
the daily operation; 2. the company's
Management Co., Ltd.Senior
financial data analysis;3.
Meeting Researcher,Dacheng Fund
April 7,2016 Investigation Institution development strategy; 4. analysis on
room Management Co., Ltd.
the industry. 2.Primary data
Researcher, Lombarda China
investigation: Public information
Fund Management
company regularly reports
Co.,Ltd..Researcher.
1. The main content of research:1.
GF Securities Development the daily operation; 2. the company's
Research Center.Researcher, financial data analysis;3.
Meeting
April 15,2016 Investigation Institution senior analyst at Societe development strategy; 4. analysis on
room
Generale Securities Research the industry. 2.Primary data
Institute.. investigation: Public information
company regularly reports
1. The main content of research:1.
the daily operation; 2. the company's
financial data analysis;3.
Meeting Tianhong Fund Management
April 20,2016 Investigation Institution development strategy; 4. analysis on
room Co., Ltd.Researcher.
the industry. 2.Primary data
investigation: Public information
company regularly reports
23
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
V. Important Events
I. Administrative position
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.
At present, the actual status of corporate governance complied with the requirements of relevant documents of
CSRC and regulatory authority. According to the requirements of relevant laws and regulations and regulatory
documents, the Company will stick to the policy of continuous rectification, unceasingly strengthen the
construction of corporate governance structure, continously enhance its level of corporate governance and make
its governance structure more steady and transparent.
II. Lawsuits affairs
Major lawsuits and Arbitration affairs
□ Applicable √ Not applicable
The Company has no major lawsuit or arbitration in the report period.
Other Lawsuits affairs
□ Applicable √ Not applicable
III. Query form media
□ Applicable √ Not applicable
In the reporting year, the Company had no query from media
IV. Bankruptcy or Reorganization Events
□ Applicable √ Not applicable
There Company was not involved in any bankruptcy or reorganization events in the reporting period.
V. Transaction in Assets
1. Purchase of assets
□ Applicable √ Not applicable
24
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
There is no purchase of assets in the Company during the reporting period.
2. Sale of assets
□ Applicable √ Not applicable
There is no sale of assets in the Company during the reporting period
3. Business combination
□ Applicable √ Not applicable
VI. Implementation and Influence of Equity Incentive Plan of the Company
□ Applicable √ Not applicable
There is no equity incentive plan and its implementation in the Company during the reporting period.
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
□ Applicable √ Not applicable
The company has no transactions related to daily operations in the reporting period.
2. Related-party transactions arising from asset acquisition or sale
√Applicable □ Not applicable
The Company has involved in any related-party transactions arising from asset acquisition or sale during the
reporting period,details refers to content No.5.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the reporting
period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
Was there any non-operating credit or liability with any related party?
□ Yes √ No
The Company was not involved in any credits and liabilities with related parties during the reporting period.
5. Other significant related-party transactions
√ Applicable □ Not applicable
（1）The 26th meeting of the seventh board of directors of the Company was held on March 28,2016. The meeting
examined and adopted the Proposal for Renewing the Lease of Litong Plaza as Office Building. The Company
approved to continue to lease the 43rd and 44th floor (conceptual design floor) of Litong Plaza as offices from
Guangdong Litong Property Investment Co., Ltd. The renewal period starts from May 5, 2016 to May 4, 2017
with the monthly rent per square meter (gross floor area) is RMB 159.60 , the total amount of the contract is RMB
25
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
10.5897 million .
（2）The 18th Meeting of the Seventh Board of Directors (provisional) meeting, 20th (provisional) meeting, the
23rd (provisional) meeting and 25th (provisional) meetings and on 2015 the second provisional General Meeting
by the issue of shares and cash to buy assets and raise matching funds connected transaction matters. The
transaction is divided into issue of shares and payment of cash to buy assets and raise matching funds of two parts.
(1)Issue of Share and Cash to Buy Asset
The Company planned to purchase the 25% stock rights of Fokai Co., Ltd. which is held by Guangdong
Provincial Expressway Co., Ltd.(hereinafter referred to as ―Provincial Expressway‖) with issue of A shares and
cash to buy ; The Company planned to purchase the 100% stock rights of Guangzhu Co., Ltd. which is held by
Guangdong Provincial Highway Construction Co., Ltd.(hereinafter referred to as ―Construction Company‖) with
issue of A shares and cash to buy, and planned to purchase the creditor’s rights of Guangzhu East Co., Ltd. from
the Construction Company with cash to buy.
(2)Raise of Matching Funds
on Asian Union Investment Co., Ltd., Tibet Yingyue Investment and Management Co., Ltd., and GF
Securities Co., Ltd. to raise matching funds which is to used for the payment of this transaction’s partial cash
consideration and transaction tax as well as supplementing the cash flow of listed company, of which the raised
matching funds’ amount shall not be over 1650 million RMB and 100% transaction price of the asset planned to
buy
On January 14, 2016, the Company received the notice from CSRC. After being examined by the 4th working
conference in 2016 of Merger and Reorganization Committee held by Merger and Reorganization Audit
Committee for Listed Companies of CRSC on January 14, 2016, the Company’s issue of shares and cash to buy
assets and raise matching funds and related transactions was adopted conditionally.
The company received the China Securities Regulatory Commission, "the approval of Guangdong Provincial
Expressway Development Co., Ltd. issued shares to Guangdong Expressway Co., Ltd. to buy assets and raise
matching funds of approval" on February 5, 2016 (Commission license [2016 ] No. 230).
On June 17, 2016, the Company completed the transfer procedures of the underlying assets purchased by the
Company in this major asset reorganization.
On July 8, 2016, the Company completed the issuance of new shares and the going public work in this major
asset reorganization.
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
Announcement on the Company’s Significant
Asset Reorganization Adopted by Mergers and
January 15,2016 www.cninfo.com.cn
Acquisitions Committee of CSRC and Trade
Resumption
Announcement regarding company's major
asset reorganization approved by the China February 6,2016 www.cninfo.com.cn
Securities Regulatory Commission
Report of Issuing of shares and cash to buy
assets and raise matching funds Connected February 16,2016 www.cninfo.com.cn
Transaction (Revised Version)
26
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Related transaction announcement March 29,2016 www.cninfo.com.cn
Announcement regarding a major asset
June 17,2016 www.cninfo.com.cn
restructuring transfer completed
Issue of shares and cash to buy assets and raise
matching funds of non-public issuance Report
July 7, 2016 www.cninfo.com.cn
and the listing announcement of the Related
Transaction
VIII. Non-operational capital appropriation by holding shareholder and related parties
□ Applicable √Not applicable
No non-operational capital appropriation by holding shareholder or related parties occurred in the report period.
IX. Material contracts and execution
1. Entrustment, contracting, and leasing issues
(1) Entrustment
No entrustment in the report period.
(2) Contracting
□ Applicable √Not applicable
No contracting in the report period.
(3) Leasing
□ Applicable √Not applicable
No leasing in the report period.
2.Guarantee
√ Applicable □ Not applicable
In 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 September
May
Communication 150,000 May 31,2013 150,000 Mortgage 25,2012 to No Yes
11,2012
Group Co., Ltd. July 25,2021
27
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Total balance of actual
Total of external guarantee
150,000 external guarantee at 150,000
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
The Company’s total guarantee(i.e.total of the first three main items)
Total guarantee quota already Total balance of the actual
approved at the end of the 150,000 guarantee at the end of the 150,000
reporting period（A3+B3+C3） reporting period（A4+B4+C4）
The proportion of the total amount of actually guarantee in the
19.33%
net assets of the Company (that is A4+B4+C4）%
Including：
Amount of guarantee for shareholders, actual controller and its
150,000
related parties(D)
Total amount of the aforesaid three guarantees （D+E+F） 150,000
Description of the guarantee with complex method
（1）Illegal providing of external guarantees
□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.
3. Other material contracts
No other material contract in the report period.
4. Other material trades
28
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
No other material trade in the report period.
29
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
X. Commitment issues by shareholders with 5% or over of shares in the report period or carried over to the report period from previous periods
√ Applicable □ Not applicable
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
Commitment on
share reform
Commitment in the
acquisition report
or the report on
equity changes
Guangdong Expressway A shares acquired by the Company through subscription in this major
asset reorganization cannot be transferred or listed for transaction within thirty-six months from
the date of the completion of the shares issuance in this major asset reorganization. Upon the
expiry of the lock-up period, the transfer and transaction of these shares will be made in
Guangdong
accordance with the effective laws and regulations, and relevant provisions of CSRS and The date of the Fulfill the
Highway
Shenzhen Stock Exchange (SSE). Upon the completion of this major asset reorganization, if the June 26, 2015 expiration of the commitment
Construction Co.,
closing price of the A-share of Guangdong Expressway is below the issue price for 20 share lock. normally
Ltd.
consecutive trading days within six months, or at the end of six months after the completion of
Commitments made
the transaction the closing price is below the issue price, the lock-up period of the A-share of
upon the assets
Guangdong Expressway acquired by the Company through this major asset reorganization will
replacement
be automatically extended for six months.
Guangdong Expressway A shares acquired by the Company through subscription in this major
asset reorganization cannot be transferred or listed for transaction within thirty-six months from
Yadong Fuxing the date of the completion of the shares issuance in this major asset reorganization. Upon the The date of the Fulfill the
Yalian Investment expiry of the lock-up period, the transfer and transaction of these shares will be made in June 18, 2015 expiration of the commitment
Co., Ltd. accordance with the effective laws and regulations, and relevant provisions of CSRS and share lock. normally
SSE.The company guarantees that the company and the controlling shareholder or actual
controller of the company in a timely manner to provide the major asset restructuring related
30
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
information, and to ensure that the information provided is true, accurate and complete. If the
information provided by the existence of false records, misleading statements or material
omissions, the Guangdong Expressway or investors caused losses, will be liable for
compensation in accordance with law.
Upon the mutual agreement by the Company and the Guangdong Provincial Highway
Construction Co., Ltd., the predicted annual net profit of the Guangzhou Guangzhu
Transportation Investment Management Co., Ltd. is RMB 230,.3606 million in 2016, RMB The period of
Guangdong
263.2329 million in 2017, and RMB 286.5018 million in 2018. Within the term of compensation Fulfill the
Highway
compensation, if the cumulated net profit of Guangzhou Guangzhu Transportation Investment August 26, 2015 and the date of commitment
Construction Co.,
Management Co., Ltd. by the end of a year is lower than the accumulated predicted net profit of completion of normally
Ltd.
that year, the Company will buy back the compensated shares at the price of RMB 1 from the the agreement.
Guangzhou Guangzhu Transportation Investment Management Co., Ltd. that should be
calculated in accordance with the agreement, and deregister such shares.
The commitment to avoid horizontal competition: 1. the Company and the companies that are This
under direct or indirect control of the Company, except Guangdong Expressway and its commitment is
subsidiaries, will not use the controlling shareholders to damage the legitimate interests of the valid from the
business activities of Guangdong Expressway and its medium and small shareholders and its date of signing
Guangdong
subsidiaries. 2. The Company and the companies that are under direct or indirect control of the this letter of
Communication
Company, except Guangdong Expressway and its subsidiaries, will not use the information commitment to
Group Co., Ltd., Fulfill the
acquired from Guangdong Expressway and its subsidiaries to engage in core business which the date on
Guangdong June 26,2016 commitment
competes with Guangdong Expressway and its subsidiaries and will not conduct any activity that which the shares
Highway normally
damages or may damage the legitimate interests of Guangdong Expressway and its medium and of Company is
Construction Co.,
small shareholders and its subsidiaries. 3. As for the transfer of toll roads, bridges, tunnels and no longer
Ltd.
related ancillary facilities or equity invested, constructed or managed by the Company or controlled by the
companies, that are under direct or indirect control of the Company, except Guangdong controlling
Expressway and its subsidiaries to the Company or any company that is under direct or indirect shareholder of
control of the company, unless it is a transferee expressly designated by the relevant government the Guangdong
31
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
departments, to the extent permitted by relevant laws and regulations, Guangdong Expressway Expressway.
has the right of preemption under the same conditions. 4. In the future, if the Company and the
companies that are under direct or indirect control of the Company, except Guangdong
Expressway and its subsidiaries, invest and construct a parallel highway or a highway in the
same direction on either side of the Highway within 20 km, to the extent permitted by relevant
laws and regulations, except in the project whose investors have been expressly specified by the
relevant government departments, Guangdong Expressway has the priority right to invest ahead
of the Company and the companies that are under direct or indirect control of the Company,
except Guangdong Expressway and its subsidiaries,. This commitment, when signed,
constitutes the irrevocable legal obligations of the Company. If the circumstances arise that
cause damage to Guangdong Expressway because of the Company’s breach of the commitment,
the Company will bear the corresponding liability according to laws. The commitment to reduce
and regulate the connected transactions: 1. After the completion of this major asset
reorganization, the Company and the companies that are under direct or indirect control of the
Company, except Guangdong Expressway and its subsidiaries, and other related parties will try
to avoid the connected transaction with Guangdong Expressway and its subsidiaries; the
necessary and unavoidable connected transactions shall be conducted in accordance with the
principles of fairness and compensation of equal value, the transaction prices shall be
determined according to the reasonable market price, the transaction approval procedures and
the disclosure obligations should be conducted in accordance with relevant laws, regulations and
regulatory documents, to effectively protect the interests of medium and small shareholders of
Guangdong Expressway . 2. The Company guarantees to be in strict accordance with relevant
laws and regulations, the regulations and regulatory documents promulgated by CSRC, the
business rules promulgated by Shenzhen Stock Exchange (SSE) and the rules of the system such
as the Articles of Association of Guangdong Provincial Expressway Development Co., Ltd.,
exercise the shareholder rights and fulfill the obligations of shareholders according to laws,
without using controlling shareholders’ holding position to seek improper interests, without
damage to the legitimate rights and interests of Guangdong Expressway and its medium and
32
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
small shareholders. Once in violation of the above-stated commitment, the company conducts
a transaction with Guangdong Expressway and its subsidiaries, causing damages to them, it shall
bear the liability for compensation according to laws.
(1) The commitment to the authenticity, accuracy and completeness of the information
disclosure and application documents: The Company guarantees that there is no false,
misleading statement or major omission in the information disclosure and application documents
for the major asset reorganization, and it bears the legal liability for the authenticity, accuracy
and completeness of the above-mentioned information disclosure and application documents. (2)
The commitment of Guangdong Expressway to not violate Article 39 of the Administrative
Measures for the Issuance of Securities by Listed Companies. The Company confirms and
warrants that there is no violation of the following matters regulated by the Article 39 of the
Administrative Measures for the Issuance of Securities by Listed Companies: 1. The issuance
application documents have false, misleading statements or major omissions; 2. The interests of
Guangdong
the Company are seriously damaged by the controlling shareholders or the actual controller, and
Provincial Fulfill the
such damages have not been eliminated; 3. The Company and its subsidiaries illegally provide No commitment
Expressway June 26,2015 commitment
external guarantees and such guarantees have not been eliminated; 4. The Board of Directors or period.
Development Co., normally
senior management have recently been subject to administrative penalty by CSRC within
ltd.
thirty-six months, or within 12 months have been publicly condemned by the Stock Exchange; 5.
The current Board of Directors and senior management of the Company are suspected of a crime
and investigated by the judiciary authorities or suspected of breaking the laws or the regulations
and investigated by CSRC; 6. In the financial report of the most recent year or period, the CPA
issues an audit report with qualified opinion, adverse opinion or disclaimer of opinion, except
that the significant impact of matters concerning the qualified opinion, adverse opinion and
disclaimer of opinion has been eliminated or that the issue relates to the major reorganization; 7.
Other cases seriously damaging the legitimate interests of investors and the public interests. (3)
Other commitments: urge Fokai Expressway Co., Ltd. to transfer the Xiebian Office to Guangfo
Expressway Co., Ltd.
33
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
(1) The commitment to the authenticity, accuracy and completeness of the information provided:
(1) a promise
The Company guarantees that there is no false, misleading statement or major omission in the
without a
information disclosure and application documents for the major asset reorganization. If it is
commitment
suspected that there is false, misleading statement or major omission in the information
period.
disclosed or provided for the major asset reorganization, and it is investigated by the judiciary
(2) the date of
authorities or by CSRC, before the clear conclusion of the case is reached, the Company will
the validity of
suspend the transfer of shares of Guangdong Expressway held by the Company, and within two
the term
business days upon receipt of the notice of filing a case and inspection, the written application
commitment
for suspending the transfer and the stock account should be submitted to the Board of Directors
from the date of
of Guangdong Expressway, and the Board of Directors of Guangdong Expressway, shall, on
this letter of
behalf of the Company, apply for the lockout towards Shenzhen Securities Exchange (SSE) and
commitment to
Registration and Clearing Company; if the application for the lockout is not submitted within
the date of the
two business days, after verification the Board of Directors authorized by the Company will
Guangdong company no Fulfill the
directly submits the Company’s identity and account information to the Registration and
Communication June 18,2015 longer is the commitment
Clearing Company and apply for the lockout; if the Board of Directors fails to do so, the
Group Co., Ltd. date of the normally
Securities Exchange and the Registration and Clearing Company will be authorized to directly
controlling
lock the related shares. If it is found that the Company has illegal circumstances, the Company
shareholder of
promises that the lockout shares should be automatically used for the compensation for the
guangdong.
relevant investors. (2) The commitment to maintain the independence of the listed company. The
(3) the date of
Company and the companies, that are under direct or indirect control of the Company, except
the validity of
Guangdong Expressway and its subsidiaries, have increased their shares of Guangdong
the term
Expressway after the completion of the major asset reorganization; however they will not
commitment to
damage the independence of Guangdong Expressway. They will continue to be separated from
the completion
Guangdong Expressway in assets, personnel, finance, organization and business and strictly
of the
abide by the relevant provisions on the independence of listed companies of CSRC. They will
completion of
not illegally use Guangdong Expressway to provide guarantee, or occupy its capital, and they
the completion
will keep and maintain the its independence and safeguard the legitimate rights and interests of
of the major
other shareholders of it. (3)The company confirmed and guaranteed: 1, the company set up and
34
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
effectively exist in accordance with the law of the enterprise, the company has an independent asset
legal personality, independent of the ability to assume legal responsibility. 2, as the commitment restructuring.
letter issued by the Japanese, the company does not exist in the listed company acquisition
management approach "the provisions of Article 6 of the acquisition of a listed company may
not be under any of the following circumstances: (1) bears a relatively large amount of debt, due
and outstanding, and in persistent state; (2) in recent 3 years, have major violations or suspected
of major violations; (3) in recent 3 years, have severe stock market acts of dishonesty; (4) the
laws, administrative regulations and recognized by the CSRC shall not purchase of Listed
Companies in other circumstances. This commitment is issued to the completion of the
reorganization before, if the company does not conform to the fact that these commitments, the
company that will be occurring in the facts, from within 3 days notice of Ganyue expressway,
otherwise it will bear incurred in the full legal responsibility.
(1) The commitment to the authenticity, accuracy and completeness of the information provided:
This
1. The Company guarantees to provide the information related to the major asset reorganization
commitment is
for Guangdong Expressway and ensures its authenticity, accuracy and completeness; if there is
valid from the
false, misleading statement or major omission in the information provided, which causes losses
date of signing
to Guangdong Expressway or the investors, the Company will assume the compensation
this letter of
liabilities in accordance with laws. If it is suspected that there is false, misleading statement or
commitment to
Guangdong major omission in the information disclosed or provided for the major asset reorganization, and
the date on
Highway it is investigated by the judiciary authorities or by CSRC, before the clear conclusion of the case
June 26,2015 which the shares
Construction Co., is reached, the Company will suspend the transfer of shares of Guangdong Expressway held by
of Company is
Ltd. the Company, and within two business days upon receipt of the notice of filing a case and
no longer
inspection, the written application for suspending the transfer and the stock account should be
controlled by the
submitted to the Board of Directors of Guangdong Expressway , and the Board of Directors of
controlling
Guangdong Expressway , shall, on behalf of the Company apply for the lockout towards
shareholder of
Shenzhen Securities Exchange (SSE) and Registration and Clearing Company; if the application
the Guangdong
for the lockout is not submitted in two business days, after verification the Board of Directors
Expressway.
authorized by the Company will directly submits the Company’s identity and account
35
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
information to the Registration and Clearing Company and apply for the lockout; if the Board of
Directors fails to do so, the Securities Exchange and the Registration and Clearing Company
will be authorized to directly lock the related shares. If it is found that the Company has illegal
circumstances, the Company promises that the lockout shares should be automatically used for
the compensation for the relevant investors. (2) The commitment to maintain the independence
of the listed company. The Company and the companies, that are under direct or indirect control
of the Company, except Guangdong Expressway and its holding subsidiaries, have increased
their shares of Guangdong Expressway after the completion of the major asset reorganization;
however they will not damage the independence of Guangdong Expressway . They will continue
to be separated from Guangdong Expressway in assets, personnel, finance, organization and
business and strictly abide by the relevant provisions on the independence of listed companies of
CSRC. They don’t illegally use Guangdong Expressway to provide guarantee, or occupy its
capital so as to keep and maintain its independence and safeguard the legitimate rights and
interests of other shareholders of Guangdong Expressway . All losses will be borne by the
Company if it breaks the above commitments and causes losses to Guangdong Expressway . (3)
The commitment to good credit record without penalties: The Company hereby acknowledges
and warrants that: in the recent three years or the period, the Company has no dishonest behavior
in the stock market. The Company and its directors, supervisors and senior management (or
main person in charge) within the recent five years before signing this letter of commitment,
have not been subject to administrative penalties (except those apparently unrelated to the stock
market), criminal penalties, or major civil litigation or arbitration related to economic disputes
(including the litigation or arbitration which is ongoing, pending or may occur). The Company
and its directors, supervisors and senior executives have good credit in recent five years before
signing the letter of commitment, and there is no circumstance in which they have large overdue
debts, or don’t fulfill their commitments, or they are subject to the administrative regulation by
CSRC or subject to disciplinary actions by the Securities Exchange. (4) The commitment on
the qualification of the purchaser of the listed companies: The Company acknowledges and
warrants: 1. The Company is a legally established and validly existing corporate entity, and has
36
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
an independent qualification for enterprise legal person, and independently bears the legal
responsibility. 2. As of the issuing date of the letter of commitment, the Company doesn’t have
the following circumstances in which the listed companies cannot be purchased, as regulated by
Article 6 of the Measures for the Administration of the Takeover of Listed Companies: (1) bears
a relatively large amount of overdue debt, and is in persistent state; (2) in recent three years is in,
or suspected of, major violations; (3) in recent three years, commits serious acts of dishonesty in
the stock market; (4) other circumstances that cannot purchase the listed companies, as regulated
by laws, administrative regulations and CSRC. From the issuance of the commitment to the
completion of this reorganization, if the Company has actions that are in noncompliance with
these commitments, the Company will inform the West Guangzhou Highway within 3 days from
the day on which the action occurs, or they will bear the legal responsibility arising there from.
Guangdong Communication Group Co., Ltd. and Guangzhu Section of Jingzhu Expressway ,
Ltd. commit: within 10 working days after the closing of the transferred equities of the
Guangdong
Guangzhou Guangzhu Investment Management Co., Ltd., the cash pooling of the Guangzhu
Communication
Section of Jingzhu Expressway Co., Ltd will be dispersed ( including: Guangdong
Group Co., Ltd.
Transportation Group Co., Ltd., Guangzhu Section of Jingzhu Expressway Co., Ltd., and August 26, 2015 2016-06-24 Completed
Jingzhu Expressway
Industrial and Commercial Bank of China agree to terminate the Settlement Agreement on the
Guangzhu Section
Group Account Fund , Guangdong Transportation Group Co., Ltd. and Guangzhu Section of
Co., Ltd.
Jingzhu Expressway Co., Ltd. agree to terminate the Agreement on Settlement and Credit
Management System Service of Guangdong Transportation Group Co., Ltd. ).
Guangdong
Guangdong Expressway Co., Ltd. and Guangdong Fokai Expressway Co., Ltd commit: within
Expressway Co.,
30 working days after the effective date of the agreement (December 7, 2015), the application December
Ltd., Guangdong 2016-01-18 Completed
for transfer procedures of the ownership of Heshan hostel shall be submitted to the relevant 7,2015
Fokai Expressway
departments.
Co., Ltd.
Guangdong Guangdong Communication Group Co., Ltd. commits: within 3 years from the date of Fulfill the
2016-1-19 2019-06-14
Communication completion of the reorganized underlying asset transfer, in which Guangzhu Section of Jingzhu commitment
37
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
Group Co., Ltd. Highway Co., Ltd. shall hire professional organizations to sort out and prepare the documents normally
needed for the ownership registration and complete the ownership registration procedures within
1 year for the relevant lands or real estates in Guangzhou and Zhuhai city for which the
Guangdong Fokai Expressway Co., Ltd and Guangzhu Section of Jingzhu Expressway Co.,
Ltd. have not gone through the procedures of ownership registration.
Related land,
Guangdong Communication Group Co., Ltd. commits: for the lands, real estates and allocated real estate
lands for which the Guangdong Fokai Expressway Co., Ltd. and Guangzhu Section of Jingzhu management
Expressway Co., Ltd. have not gone through the procedures of ownership registration (1) the authority
Guangdong Fulfill the
property rights of the above-mentioned lands are clear, and can be legally used by the target certificate or
Communication 2016-1-19 commitment
company; (2) assist or ask the Guangdong Highway Co., Ltd. and Guangdong Highway related land to
Group Co., Ltd. normally
Construction Co., Ltd to assist in conducting the ownership registration of the real estates; (3) complete the
the land can continue to be used unscathed before the ownership registration; (4) once losses transfer
arise, bear the losses of Guangdong Expressway according to its shareholding ratio. procedures of
the day.
The company
submitted to the
China Securities
Guangdong
Regulatory
Expressway Co.,
Guangdong Highway Construction Co., Ltd. transfers its shareholder loans from Guangzhu Commission
Ltd., Guangdong August 26,2015 Completed
Section of Jingzhu Expressway Co., Ltd. into entrusted loans. before a major
Fokai Expressway
asset
Co., Ltd.
restructuring
application
documents.
Commitments made
upon first issuance
38
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Time of making Period of
Commitment Commitment maker Contents Fulfillment
commitment commitment
or refinance
Other commitments
made to minority
shareholders
Executed timely or
Yes
not?
39
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
√ Yes □Not
Guangdong Zhengzhong Zhujiang Certified Public
Name of the domestic CPAs
Accountants Co., Ltd.（Special General Partnership）
Remuneration for domestic accounting firm (RMB’0000) 20
Has the CPAs been changed in the current period
□ Yes √No
XII. Punishment and improvement
□ Applicable √ Not applicable
No punishment or improving approach in the report period.
XIII. Disclosure of illegal action causing risk of delisting.
□ Applicable √ Not applicable
No such illegal action causes risk of delisting.
XIV. Statement on other material issues
√Applicable □Not applicable
On June 24, 2013, Guangdong Provincial Department of Transportation held a Teleconference on Speeding
up the Special Clean-up of the Toll Roads, and issued a Notice on Matters Related to the Acceleration of the
Special Clean-up of the Toll Roads (Yue Jiao Ming Dian [2013] No. 56) text. According to which, the National
Road 325 Jiujiang Bridge of the Company’s subsidiary — Jiujiang Bridge Branch of Guangdong Fokai
Expressway-- stopped charging tolls since 24 pm on June 30, 2013.
Subsequently, the Company submitted the application for compensation to relevant government
departments. The relevant government authorities have approved that the loss caused by the early termination of
the toll of Jiujiang Bridge is RMB 140,765,667.68, and it is planned to be included in the state-owned capital
budget for three consecutive years from 2015 (the Company did not receive an official document approval).
In September 2015, Guangdong Fokai Co., Ltd received RMB 20 million for the compensation of the early
termination of the toll of Jiujiang Bridge; on June 16, 2016, Guangdong Fokai Co., Ltd received RMB 60.77
million as compensation, which is included in the non-operating income, and increased the net profit of RMB
45.5775 million attributable to shareholders of listed companies of the Company from January to June in 2016,
accounting for 9.71% of the net profit of RMB 469,386,906.79 attributable to shareholders of listed companies.
XV. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No.
40
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
VI. Change of share capital and shareholding of Principal Shareholders
(I).Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with conditional
439,698,752 34.98% -8,455 -8,455 439,690,297 34.98%
subscription
1.State-owned shares 409,977,151 32.61% 409,977,151 32.61%
2.State-owned legal person
21,712,738 1.73% 21,712,738 1.73%
shares
3.Other domestic shares 8,008,863 0.64% -8,455 -8,455 8,000,408 0.64%
Including ：Domestic
7,352,867 0.59% 7,352,867 0.59%
Legal person shares
Domestic natural person
655,996 0.05% -8,455 -8,455 647,541 0.05%
shares
II.Shares with
817,418,996 65.02% 8,455 8,455 817,427,451 65.02%
unconditional subscription
1.Common shares in RMB 468,668,996 37.28% 8,455 8,455 468,677,451 37.28%
2.Foreign shares in
348,750,000 27.74% 348,750,000 27.74%
domestic market
III. Total of capital shares 1,257,117,748 100.00% 0 0 1,257,117,748 100.00%
Reasons for share changed
√ Applicable □Not applicable
In the report period, Mr.Xiao Laijiu because of job transfer ,8,455 unrestricted negotiable shares held by him were
Approval of Change of Shares
□Applicable √Not applicable
Transfer of Change of shares
□Applicable √Not applicable
Influence from the shareholding movements upon such financial indicators as eamings per share, net asset per
share of the lastest year and the latest accounting period
□Applicable √Not applicable
Other information as the Company considers necessary to be disclosed or demanded by the securities regulatory
authority for disclosing.
□Applicable √Not applicable
41
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
of the Company
√ Applicable □Not Applicable
The Company in June 2016 began to issue shares and use cash to purchase assets and raise counterpart funds
and connected transactions, it purchased 25% equity of Fokai Company held by the Guangdong Highway by
issuing 33,355,263 A-shares and paying cash; it purchased 100% equity of Guangzhu Transportation held by the
Construction Company by issuing 466,325,020 A-shares; it purchased the debts to Guangzhu East Company held
by the Construction Company by paying cash.
Meanwhile, the Company issued 202,429,149 A shares, 101,214,574 A shares and 30,364,372 A shares
towards Yadong Fuxing Yalian, Tibet Yingyue and GF Securities respectively to raise counterpart funds for part of
the cash payment and taxes of the transaction, as well as to supplement the listed company’s working capital.
The Company completed the registration, issuance and going public work of the above-mentioned shares on
July 8, 2016, the Company’s total number of shares is 2,090,806,126, the number of its restricted outstanding
shares becomes 1,273,378,675, and the number of its outstanding shares has not changed and remains 817,427,451.
I1.Number of shareholders of the Company and share-holding
In shares
The total number of preferred share
Total number of common
holders voting rights restored at per
shareholders at the end of the 75,656 0
iod-end
reporting period
(if any)(See Notes 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of share
Proportion Number of Changes in Amount of Amount of
Shareholders Nature of pledged/frozen
of shares shares held at reporting restricted un-restricted
shareholder State of
held（%） period -end period shares held shares held Amount
share
Guangdong
State-owned legal
Communication 40.84% 513,356,893 0 409,977,151 103,379,742
person
Group Co.,Ltd
Domestic natural
Feng Wuchu 1.76% 22,137,997 2478688 0 22,137,997
person shares
Guangdong
State-owned legal
Expressway 1.56% 19,582,228 0 19,582,228 0
person
Co., Ltd
Haerbin Hali Domestic non
Industrial Co., State-owned 1.18% 14,850,682 0 0 14,850,682
Ltd. Legal person
Xinyue Co., Foreign legal
1.05% 13,201,086 0 0 0
Ltd. person
42
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Domestic natural
Li Zhuo 0.75% 9,458,390 1831702 0 9,458,390
person shares
ICBC－South
Domestic non
Preferred stock
State-owned 0.56% 7,000,060 0 0 7,000,060
investment
Legal person
Fund
China
Everbright
Bank Co., Ltd.
Domestic non
－China Europe
State-owned 0.53% 6,678,925 0 0 6,678,925
New Power
Legal person
Stock Securities
Investment
Fund（LOF）
BBH A/C
VANGUARD
EMERGING Foreign legal
0.35% 4,417,431 0 0 4,417,431
MARKETS person
STOCK
INDEX FUND
GUOTAI
JUNAN
Foreign legal
SECURITIES( 0.34% 4,327,802 0 0 4,327,802
person
HONGKONG)
LIMITED
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if applicable)
（See Notes 3）
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Expressway
Explanation on associated Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is relationship between other
relationship among the aforesaid shareholders and whether they are persons taking concerted action specified in the Regulations
shareholders on Disclosure of Information about Change in Shareholding of Shareholders of Listed
Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
Guangdong Communication Group RMB Common
103,379,742 103,379,742
Co.,Ltd shares
Feng Wuchu 22,137,997 RMB Common 20,206,409
43
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
shares 1,931,588
RMB Common
Haerbin Hali Industrial Co., Ltd. 14,850,682 14,850,682
shares
Foreign shares
Xinyue Co., Ltd. 13,201,086 placed in domestic 13,201,086
exchange
RMB Common
Li Zhuo 9,458,390 9,458,390
shares
ICBC－South Preferred stock RMB Common
7,000,060 7,000,060
investment Fund shares
China Everbright Bank Co., Ltd.－
RMB Common
China Europe New Power Stock 6,678,925 6,678,925
shares
Securities Investment Fund（LOF）
BBH A/C VANGUARD Foreign shares
EMERGING MARKETS STOCK 4,417,431 placed in domestic 4,417,431
INDEX FUND exchange
GUOTAI JUNAN Foreign shares
SECURITIES(HONGKONG) 4,327,802 placed in domestic 4,327,802
LIMITED exchange
RMB Common
China Securities Finance Co., Ltd. 4,144,500 4,144,500
shares
Explanation on associated
relationship or consistent action Guangdong Communication Group Co., Ltd. is the parent company of Xinyue Co., Ltd.. It is
among the top 10 shareholders of unknown whether there is relationship between other shareholders and whether they are
non-restricted negotiable shares and persons taking concerted action specified in the Regulations on Disclosure of Information
that between the top 10 shareholders about Change in Shareholding of Shareholders of Listed Companies.
of non-restricted negotiable shares
and top 10 shareholders
Harbin Hali Industry Co., Ltd. holds 14,849,774 A shares of the Company through stock
account with credit transaction and guarantee and holds 908 A shares through ordinary stock
Notes to the shareholders involved
account. hold 14,850,682 shares of the Company's stock totally；Li Zhuo holds 9,362,409 A
in financing securities (if any)(See
shares of the Company through stock account with credit transaction and guarantee and
Notes 4)
holds95,981 A shares through ordinary stock account, hold 9,458,390 shares of the Company's
stock totally.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
44
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by the
shareholders and act-in-concert persons
□ Applicable √ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the reporting
period proposed or implemented by the shareholders and act-in-concert persons.
45
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
46
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□ Applicable √ Not Applicable
There was no change in shareholding of directors, supervisors and senior Executives, for the specific information
please refer to the 2015 Annual Report.
II. Changes in directors, supervisors and senior Executives
□ Applicable √ Not Applicable
No Change in Directors, Supervisors and Senior Executives, for the specific information please refer to the 2015
Annual Report.
47
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
IX. Financial Report
1. Audit report
Has this semi-annual report been audited?
√Yes □ No
Type of audit opinion Standard Unqualified Audit Opinion
Date for signing the auditor’s report August 22,2016
Guangdong Zhengzhong Zhujiang Certified Public Accountants
Name of audit firm
Co., Ltd.（Special General Partnership）
The audit report number 广会审字[2016]G16036790019 号
Name of Certified Public Accountant Yao Jing、Xu Jihong
Are Semi-annual audit report is non-standard audit report?
□ Yes √No
48
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by:：Guangdong Provincial Expressway Development Co., Ltd.
June 30, 2016
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 1,677,591,492.62 1,199,629,276.85
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Bill receivable
Account receivable 85,563,075.45 77,396,705.54
Prepayments 4,039,664.37 7,390,264.97
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable 44,698,439.36
Other account receivable 18,901,657.90 18,265,472.13
Repurchasing of financial assets
Inventories 800,998.80 800,998.80
Assets held for sales
Non-current asset due in 1 year
Other current asset 55,744.14
Total of current assets 1,831,651,072.64 1,303,482,718.29
Non-current assets：
Loans and payment on other’s behalf
49
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items At the end of term Beginning of term
disbursed
Disposable financial asset 1,683,133,691.17 1,796,056,064.29
Expired investment in possess
Long-term receivable
Long term share equity investment 2,289,671,148.45 2,250,314,577.89
Property investment 3,452,077.78 3,684,184.48
Fixed assets 9,315,285,318.01 9,733,198,359.00
Construction in progress 33,512,790.35 23,624,279.71
Engineering material 1,549,556.00 1,549,556.00
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 6,694,795.40 8,634,141.79
R & D petrol
Goodwill
Long-germ expenses to be amortized 2,670,468.10 3,576,970.11
Differed income tax asset 4,958,570.39 448,397.20
Other non-current asset 3,008,726.52 2,343,267.94
Total of non-current assets 13,343,937,142.17 13,823,429,798.41
Total of assets 15,175,588,214.81 15,126,912,516.70
Current liabilities
Short-term loans
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable 138,652,556.81 173,079,084.60
Advance payment 34,264,444.93 35,079,806.09
Selling of repurchased financial assets
Fees and commissions receivable
50
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items At the end of term Beginning of term
Employees’ wage payable 11,983,655.61 6,616,356.87
Tax payable 112,419,482.29 90,711,647.65
Interest payable 93,197,701.63 23,143,564.41
Dividend payable 12,512,983.60 11,681,423.74
Other account payable 146,101,437.03 192,607,238.67
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 1,758,680,000.00 1,379,080,000.00
Other current liability
Total of current liability 2,307,812,261.90 1,911,999,122.03
Non-current liabilities：
Long-term loan 4,333,760,000.00 4,830,760,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 2,022,210.11 969,925,895.09
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Deferred income
Deferred income tax liability 291,982,464.37 297,540,718.21
Other non-current liabilities
Total non-current liabilities 4,627,764,674.48 6,098,226,613.30
Total of liability 6,935,576,936.38 8,010,225,735.33
Owners’ equity
Share capital 2,090,806,126.00 1,257,117,748.00
Other equity instruments
Including：preferred stock
Sustainable debt
51
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items At the end of term Beginning of term
Capital reserves 2,508,408,342.99 1,643,484,871.70
Less：Shares in stock
Other comprehensive income 366,997,712.64 479,920,085.76
Special reserves
Surplus reserves 295,642,270.96 295,642,270.96
Common risk provision
Undistributed profit 2,496,570,806.10 2,179,239,324.01
Total of owner’s equity belong to the
7,758,425,258.69 5,855,404,300.43
parent company
Minority shareholders’ equity 481,586,019.74 1,261,282,480.94
Total of owners’ equity 8,240,011,278.43 7,116,686,781.37
Total of liabilities and owners’ equity 15,175,588,214.81 15,126,912,516.70
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Liu Xiaomei
2.Parent Company Balance Sheet
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 964,876,456.11 822,286,507.11
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable
Account receivable
Prepayments 3,313,209.55 1,994,822.56
Interest receivable 2,025,527.74 137,958.34
Dividend receivable 44,698,439.36
Other account receivable 2,607,029.46 2,256,822.99
52
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items At the end of term Beginning of term
Inventories
Assets held for sales
Non-current asset due in 1 year 110,000,000.00
Other current asset
Total of current assets 1,127,520,662.22 826,676,111.00
Non-current assets：
Disposable financial asset 1,683,133,691.17 1,796,056,064.29
Expired investment in possess
Long-term receivable
Long term share equity investment 6,954,833,368.11 5,053,688,539.24
Property investment 3,199,939.53 3,432,046.23
Fixed assets 3,044,784.91 3,734,470.83
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 899,803.39 1,056,003.37
R & D petrol
Goodwill
Long-germ expenses to be amortized 2,410,715.06 3,261,555.68
Differed income tax asset
Other non-current asset 932,903,684.98 75,000,000.00
Total of non-current assets 9,580,425,987.15 6,936,228,679.64
Total of assets 10,707,946,649.37 7,762,904,790.64
Current liabilities
Short-term loans
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable
Advance payment
53
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items At the end of term Beginning of term
Employees’ wage payable 944,420.17 1,022,391.27
Tax payable 4,390,655.36 4,915,239.62
Interest payable 51,248,494.23 17,625,272.46
Dividend payable 12,512,983.60 11,681,423.74
Other account payable 4,800,426.40 6,378,723.77
Liabilities held for sales
Non-current liability due in 1 year 1,047,000,000.00 997,000,000.00
Other current liability 666,973,897.94 309,154,118.44
Total of current liability 1,787,870,877.70 1,347,777,169.30
Non-current liabilities：
Long-term loan 1,500,000,000.00 1,500,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 2,022,210.11 52,022,210.11
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total of Non-current liabilities 1,502,022,210.11 1,552,022,210.11
Total of liability 3,289,893,087.81 2,899,799,379.41
Owners’ equity
Share capital 2,090,806,126.00 1,257,117,748.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 3,359,791,693.12 1,534,920,742.49
Less：Shares in stock
Other comprehensive income 366,997,712.64 479,920,085.76
Special reserves
Surplus reserves 279,797,987.31 279,797,987.31
54
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items At the end of term Beginning of term
Undistributed profit 1,320,660,042.49 1,311,348,847.67
Total of owners’ equity 7,418,053,561.56 4,863,105,411.23
Total of liabilities and owners’ equity 10,707,946,649.37 7,762,904,790.64
3.Consolidated Income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 1,333,492,179.77 1,250,134,143.23
Incl：Business income 1,333,492,179.77 1,250,134,143.23
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 862,251,224.53 914,491,445.90
Incl：Business cost 558,947,473.08 527,672,324.82
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 32,283,347.45 43,942,749.79
Sales expense
Administrative expense 80,579,615.84 85,292,103.26
Financial expenses 190,618,235.21 257,512,886.37
Asset impairment loss -177,447.05 71,381.66
Add：Gains from change of fir value
（―-‖for loss）
Investment gain（―-‖for loss） 227,430,687.32 197,546,547.39
Incl: investment gains from affiliates 181,732,975.66 152,934,917.52
Gains from currency exchange（―-‖for
loss）
III. Operational profit（―-‖for loss） 698,671,642.56 533,189,244.72
55
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Report period Same period of the previous year
Add ：Non-operational income 63,681,145.14 6,033,478.51
Including：Income from disposal of
111,175.47 10,682.00
non-current assets
Less：Non business expenses 878,328.59 849,482.98
Incl：Loss from disposal of non-current
102,453.65 365,730.09
assets
IV.Total profit(―-‖for loss) 761,474,459.11 538,373,240.25
Less：Income tax expenses 157,332,820.43 117,044,170.80
V. Net profit 604,141,638.68 421,329,069.45
Net profit attributable to the owners of
505,899,144.29 338,837,143.73
parent company
Minority shareholders’ equity 98,242,494.39 82,491,925.72
VI. Other comprehensive income -112,922,373.12 112,922,373.12
Net of profit of other comprehensive inco
me attributable to owners of the parent co -112,922,373.12 112,922,373.12
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be -112,922,373.12 112,922,373.12
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
-112,922,373.12 112,922,373.12
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
56
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Report period Same period of the previous year
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
7.Net of profit of other comprehensive in
come attributable to Minority
shareholders’ equity
VII. Total comprehensive income 491,219,265.56 534,251,442.57
Total comprehensive income attributable
392,976,771.17 451,759,516.85
to the owner of the parent company
Total comprehensive income
98,242,494.39 82,491,925.72
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.29 0.20
(II)Diluted earnings per share 0.29 0.20
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 102,025,476.76, last period the combined party realized RMB106,981,773.68.
Legal Representative:Zheng Renfa
General Manager Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Liu Xiaomei
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 10,505,002.81 9,327,468.61
Incl：Business cost 232,106.70 232,106.70
Business tax and surcharge 361,322.43 573,183.35
Sales expense
Administrative expense 30,982,771.89 37,108,447.40
Financial expenses 73,447,382.17 85,517,724.54
Asset impairment loss
57
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Report period Same period of the previous year
Add：Gains from change of fir value
（―-‖for loss）
Investment gain（―-‖for loss） 292,397,437.40 259,765,299.53
Incl: investment gains from affiliates 215,901,030.71 187,979,091.58
II. Operational profit（―-‖for loss） 197,878,857.02 145,661,306.15
Add ：Non-operational income 26,300.00
Including：Income from disposal of
non-current assets
Less：Non business expenses 7,697.44
Incl：Loss from disposal of non-current
7,577.44
assets
III.Total profit(―-‖for loss) 197,878,857.02 145,679,908.71
Less：Income tax expenses
IV. Net profit（―-‖for net loss） 197,878,857.02 145,679,908.71
V.Net of profit of other comprehensive i
-112,922,373.12 112,922,373.12
ncome
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
Other comprehensive income that will b -112,922,373.12 112,922,373.12
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
-112,922,373.12 112,922,373.12
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
58
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Report period Same period of the previous year
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income 84,956,483.90 258,602,281.83
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
1,332,381,201.70 1,155,264,691.61
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest, processing fee
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned
Other cash received from business
42,007,100.90 51,907,173.11
operation
59
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Report period Same period of the previous year
Sub-total of cash inflow 1,374,388,302.60 1,207,171,864.72
Cash paid for purchasing of
47,639,137.85 50,599,622.38
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 138,780,053.43 144,520,075.28
Taxes paid 191,444,172.08 179,427,875.72
Other cash paid for business activities 63,642,109.86 28,437,774.89
Sub-total of cash outflow from business
441,505,473.22 402,985,348.27
activities
Cash flow generated by business
932,882,829.38 804,186,516.45
operation, net
II.Cash flow generated by investing
Cash received from investment
40,549,909.00
retrieving
Cash received as investment gains 143,375,677.40 197,998,345.87
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 606,975.00 10,682.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 60,770,000.00
Sub-total of cash inflow due to
204,752,652.40 238,558,936.87
investment activities
Cash paid for construction of
fixed assets, intangible assets 69,443,291.01 85,787,187.21
and other long-term assets
Cash paid as investment 803,500,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
60
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Report period Same period of the previous year
Other cash paid for investment
987,903,684.98
activities
Sub-total of cash outflow due to
1,860,846,975.99 85,787,187.21
investment activities
Net cash flow generated by investment -1,656,094,323.59 152,771,749.66
III.Cash flow generated by financing
Cash received as investment 1,633,499,989.30
Incl: Cash received as investment from
minor shareholders
Cash received as loans 499,000,000.00 755,000,000.00
Cash received from bond placing
Other financing –related ash received 5,173.81
Sub-total of cash inflow from financing
2,132,505,163.11 755,000,000.00
activities
Cash to repay debts 596,400,000.00 1,241,720,000.00
Cash paid as dividend, profit, or
330,423,880.43 308,140,532.80
interests
Incl: Dividend and profit paid by
10,266,231.67
subsidiaries to minor shareholders
Other cash paid for financing activities 3,984,368.84 3,000,000.00
Sub-total of cash outflow due to
930,808,249.27 1,552,860,532.80
financing activities
Net cash flow generated by financing 1,201,696,913.84 -797,860,532.80
IV. Influence of exchange rate
-523,203.86 -500,338.15
alternation on cash and cash equivalents
V.Net increase of cash and cash
477,962,215.77 158,597,395.16
equivalents
Add: balance of cash and cash
1,199,629,276.85 737,462,446.86
equivalents at the beginning of term
VI ..Balance of cash and cash
1,677,591,492.62 896,059,842.02
equivalents at the end of term
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
61
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
6,683,948.58 2,941,717.07
rending of services
Tax returned
Other cash received from business
377,038,257.24 106,775,060.83
operation
Sub-total of cash inflow 383,722,205.82 109,716,777.90
Cash paid for purchasing of
merchandise and services
Cash paid to staffs or paid for staffs 18,319,723.15 24,072,836.07
Taxes paid 695,332.37 743,853.55
Other cash paid for business activities 23,791,412.76 133,568,926.05
Sub-total of cash outflow from business
42,806,468.28 158,385,615.67
activities
Cash flow generated by business
340,915,737.54 -48,668,837.77
operation, net
II.Cash flow generated by investing
Cash received from investment
40,549,909.00
retrieving
Cash received as investment gains 174,174,372.43 197,998,345.87
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 22,151,791.67 6,323,061.11
Sub-total of cash inflow due to
196,326,164.10 244,871,315.98
investment activities
Cash paid for construction of
fixed assets, intangible assets 294,728.41
and other long-term assets
Cash paid as investment 803,500,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
987,903,684.98
activities
62
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Items Amount in this period Amount in last period
Sub-total of cash outflow due to
1,791,403,684.98 294,728.41
investment activities
Net cash flow generated by investment -1,595,077,520.88 244,576,587.57
III.Cash flow generated by financing
Cash received as investment 1,633,499,989.30
Cash received as loans 50,000,000.00
Cash received from bond placing
Other financing –related ash received 5,173.81
Sub-total of cash inflow from
1,633,505,163.11 50,000,000.00
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
232,245,858.07 170,505,364.48
interests
Other cash paid for financing activities 3,984,368.84 3,000,000.00
Sub-total of cash outflow due to
236,230,226.91 173,505,364.48
financing activities
Net cash flow generated by financing 1,397,274,936.20 -123,505,364.48
IV. Influence of exchange rate
-523,203.86 -500,338.15
alternation on cash and cash equivalents
V.Net increase of cash and cash
142,589,949.00 71,902,047.17
equivalents
Add: balance of cash and cash
822,286,507.11 332,632,828.69
equivalents at the beginning of term
VI ..Balance of cash and cash
964,876,456.11 404,534,875.86
equivalents at the end of term
63
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Commo
Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provisio equity
red Other in stock Income reserve
nable n
stock
debt
I.Balance at the
1,257,117,748.00 1,643,484,871.70 479,920,085.76 295,642,270.96 2,179,239,324.01 1,261,282,480.94 7,116,686,781.37
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
1,257,117,748.00 1,643,484,871.70 479,920,085.76 295,642,270.96 2,179,239,324.01 1,261,282,480.94 7,116,686,781.37
beginning of
64
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Commo
Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provisio equity
red Other in stock Income reserve
nable n
stock
debt
current year
III.Changed in the
833,688,378.00 864,923,471.29 -112,922,373.12 317,331,482.09 -779,696,461.20 1,123,324,497.06
current year
（1）Total
comprehensive -112,922,373.12 505,899,144.29 98,242,494.39 491,219,265.56
income
（II）Investment
or decreasing of 833,688,378.00 1,824,865,776.82 2,658,554,154.82
capital by owners
1．Ordinary Share
s invested by share 833,688,378.00 1,824,865,776.82 2,658,554,154.82
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
65
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Commo
Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provisio equity
red Other in stock Income reserve
nable n
stock
debt
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
-188,567,662.20 -10,266,231.67 -198,833,893.87
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or -188,567,662.20 -10,266,231.67 -198,833,893.87
shareholders)
4．Other
66
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Commo
Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provisio equity
red Other in stock Income reserve
nable n
stock
debt
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
67
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Commo
Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provisio equity
red Other in stock Income reserve
nable n
stock
debt
1. Provided this
year
2．Used this term
（VI）Other -959,942,305.53 -867,672,723.92 -1,827,615,029.45
IV. Balance at the
2,090,806,126.00 2,508,408,342.99 366,997,712.64 295,642,270.96 2,496,570,806.10 481,586,019.74 8,240,011,278.43
end of this term
68
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
In RMB
Amount in last year
Other Equity
instrument Commo
Less: Other Speciali Minor
Items n risk Total of owners’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit shareholders’
Sustai provisio equity
red Other in stock Income reserve equity
nable n
stock
debt
I.Balance at the
1,257,117,748.00 1,643,483,493.03 630,483,249.92 268,900,521.42 1,097,400,361.54 6,532,978,020.38
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
beginning of 1,257,117,748.00 1,643,483,493.03 630,483,249.92 268,900,521.42 1,635,592,646.47 1,097,400,361.54 6,532,978,020.38
current year
69
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
Other Equity
instrument Commo
Less: Other Speciali Minor
Items n risk Total of owners’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit shareholders’
Sustai provisio equity
red Other in stock Income reserve equity
nable n
stock
debt
III.Changed in the
1,378.67 -150,563,164.16 26,741,749.54 543,646,677.54 163,882,119.40 583,708,760.99
current year
（1）Total
comprehensive -150,563,164.16 696,100,201.88 169,648,010.50 715,185,048.22
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
70
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
Other Equity
instrument Commo
Less: Other Speciali Minor
Items n risk Total of owners’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit shareholders’
Sustai provisio equity
red Other in stock Income reserve equity
nable n
stock
debt
shareholders)
4．Other
(IV) Internal
transferring of 26,741,749.54 -152,453,524.34 -5,765,891.10 -131,477,665.90
owners’ equity
1. Capitalizing of
capital reserves (or 26,741,749.54 -26,741,749.54
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus -125,711,774.80 -5,765,891.10 -131,477,665.90
reserves.
4. Other
71
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
Other Equity
instrument Commo
Less: Other Speciali Minor
Items n risk Total of owners’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit shareholders’
Sustai provisio equity
red Other in stock Income reserve equity
nable n
stock
debt
(VI )Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
IV. Balance at the
end of this term
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other 1,378.67 1,378.67
IV. Balance at the 1,257,117,748.00 1,643,484,871.70 479,920,085.76 295,642,270.96 2,179,239,324.01 1,261,282,480.94 7,116,686,781.37
72
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
Other Equity
instrument Commo
Less: Other Speciali Minor
Items n risk Total of owners’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit shareholders’
Sustai provisio equity
red Other in stock Income reserve equity
nable n
stock
debt
end of this term
73
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
I.Balance at the
1,257,117,748.00 1,534,920,742.49 479,920,085.76 279,797,987.31 1,311,348,847.67 4,863,105,411.23
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of 1,257,117,748.00 1,534,920,742.49 479,920,085.76 279,797,987.31 1,311,348,847.67 4,863,105,411.23
current year
III.Changed in the
833,688,378.00 1,824,870,950.63 -112,922,373.12 9,311,194.82 2,554,948,150.33
current year
74
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in this period
Items
Share Capital Other Equity instrument Capital reserves Less: Other Specialize Surplus reserves Attributable profit Total of owners’
Shares in Comprehensive d reserve equity
（I）Total
stock Income
comprehensive -112,922,373.12 197,878,857.02 84,956,483.90
income
(II) Investment or
decreasing of 833,688,378.00 1,824,865,776.82 2,658,554,154.82
capital by owners
1．Ordinary Share
s invested by share 833,688,378.00 1,824,865,776.82 2,658,554,154.82
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
-188,567,662.20 -188,567,662.20
allotment
1.Providing of
surplus reserves
75
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in this period
Items
Share Capital Other Equity instrument Capital reserves Less: Other Specialize Surplus reserves Attributable profit Total of owners’
Shares in Comprehensive d reserve equity
2．Allotment to the
stock Income
owners (or -188,567,662.20 -188,567,662.20
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
76
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in this period
Items
Share Capital Other Equity instrument Capital reserves Less: Other Specialize Surplus reserves Attributable profit Total of owners’
year Shares in Comprehensive d reserve equity
stock Income
2．Used this term
（VI）Other 5,173.81 5,173.81
IV. Balance at the
2,090,806,126.00 3,359,791,693.12 366,997,712.64 279,797,987.31 1,320,660,042.49 7,418,053,561.56
end of this term
77
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
In RMB
Amount in last year
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
I.Balance at the
1,257,117,748.00 1,534,919,363.82 630,483,249.92 253,056,237.77 1,196,384,876.57 4,871,961,476.08
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of 1,257,117,748.00 1,534,919,363.82 630,483,249.92 253,056,237.77 1,196,384,876.57 4,871,961,476.08
current year
III.Changed in the
1,378.67 -150,563,164.16 26,741,749.54 114,963,971.10 -8,856,064.85
current year
（I）Total -150,563,164.16 267,417,495.44 116,854,331.28
78
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
comprehensive
income
(II) Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit 26,741,749.54 -152,453,524.34 -125,711,774.80
79
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
allotment
1.Providing of
26,741,749.54 -26,741,749.54
surplus reserves
2．Allotment to the
owners (or -125,711,774.80 -125,711,774.80
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
80
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2016
Amount in last year
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other 1,378.67 1,378.67
IV. Balance at the
1,257,117,748.00 1,534,920,742.49 479,920,085.76 279,797,987.31 1,311,348,847.67 4,863,105,411.23
end of this term
81
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Guangdong Provincial Expressway Development Co., Ltd.
Notes to financial statements
January -June 2016
I . C o mp a n y P r o fi l e
(1).History
Th e C o m p a n y w a s e s t a b l i s h e d i n F e b r u a r y 1 9 9 3 , wh i c h w a s o r i gi n a l l y n a m e d a s Gu a n gd o n g
F o ka i E xp r e s s w a y C o . , Lt d . O n J u n e 3 0 , 1 9 9 3 , i t w a s r e n a m e d a s Gu a n gd o n g P r o vi n c i a l
E xp r e s s w a y D e v e l o p m e n t C o . , Lt d . a f t e r r e o r ga n i z a t i o n p u r s u a n t t o t h e a p p r o v a l o f t h e O ff i c e o f
J o i n t E xa m i n a t i o n Gr o u p o f E xp e r i m e n t a l U n i t s o f S h a r e H o l d i n g S ys t e m wi t h Y LS B ( 1 9 9 3 ) N o .
6 8 d o c u me n t . Th e s h a r e c a p i t a l s t r u c t u r e a f t e r r e o rg a n i z a t i o n i s a s f o l l o w s :
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 million shares.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities Regulatory
Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legal person shares
transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co., Ltd. in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval document
and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document, the Company issued
135 million domestically listed foreign investment shares (B shares) to overseas investors at the price of HKD 3.54
(equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of China
with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested joint stock company
limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following manner:
The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No. 487
document, the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of ―payable in full
on application, pro-rate placing and subject to refund‖ with the par value of each share being RMB 1 in January 1998.
13
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant to the
approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of CSRC with
ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249 million shares at the price of
RMB 11 per Right.73,822,250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH (2000)
No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co., Ltd. (Group Co.)
for holding and management without compensation.
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
30,2016, the quantity of the shares subject to sale restriction held by senior executives is 135,069.
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 ． O n M a r c h 8 , 2 0 0 4 , As a p p r o v e d b y C h i n a S e c u r i t i e s R e gu l a t o r y C o m m i s s i o n b y d o c u m e n t
Z h e n g - J i a n - Go n g - S i - Z i [ 2 0 0 3 ] N o . 3 , t h e 4 5 , 0 0 0 , 0 0 0 n o n - n e go t i a b l e fo r e i gn s h a r e s w e r e p l a c e d i n
S h e n z h e n St o c k.
12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at the shareholders'
meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued ―The approval on share
converting of Guangdong Provincial Expressway Development Co., Ltd.‖ to approve the share equity relocation and
transformation. On October 9 2006, according to the ―Circular about implementing of share equity relocation and relative
trading‖ issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’s A shares was restored from
―G-Expressway‖ ―Expressway A‖.
13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties such
as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by Guangdong Provincial
Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares and paid RMB 803.50 million to
Guangdong Provincial Expressway Co., Ltd for purchasing the 25% stake of Guangdong Provincial Fokai Expressway
Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; and issued 466,325,020 shares to Guangdong Provincial
Highway Construction Co., Ltd for purchasing the 100% stake of Guangzhou Guangzhu Traffic Investment Management
Co., Ltd held by Guangdong Provincial Highway Construction Co., Ltd. On June 21, 2016, the company directionally
issued 334,008,095 A-shares to Yadong Fuxing Yalian Investment Co.,Ltd, Tibet Yinyue Investment Management
Co.,Ltd and GF Securities Co.,Ltd.
(2)Organization structure and the actual controller of the Company
As of June 30, 2016，Registration capital :RMB2,090,806,126，Legal representative：Zhu Zhanliang,Registration
place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32, Zhujiang East Road,
Zhujiang New City, Tihe Disrtict , Guangzhou，The company has set up: Investment Development Dept, Security Affairs
14
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Department, Management Department, Financial Management Department, Base construction Department, Audit and
Supervise Department, Affairs Department, Personnel Department , Party Work Department, Law affairs Department ,
Project Office and Labour union etc.
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Li Jing. Date
of establishment: June 23, 2000. As of June 30, 2016,Registered capital: RMB 26.8 billion. It is a solely state-owned
limited company. Business scope：equity management, organization of asset reorganization and optimized allocation,
raising funds by means including mortgage, transfer of property rights and joint stock system transformation, project
investment, operation and management, traffic infrastructure construction, highway and railway project operation and
relevant industries, technological development, application, consultation and services, highway and railway passenger and
cargo transport, ship industry, relevant overseas businesses; The value-added telecom business.
（3）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Management fees and mainte
nance of roads, bridges, and car rescue, maintenance, cleaning, concurrently with the company's business supporting moto
r transport, warehousing operations.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway, investment in tec
hnological industries and provision of relevant consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Gu
angzhou 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.,
Guangdong Yueke Technology Micro Loan Co., Ltd.and Guangdong Guangle Expressway Co.,Ltd.
（4）Scope of consolidated financial statements
The company's 2016(Jan-June) annual consolidated subsidiaries of total 4 companies,
the scope of consolidated financial statements did not change compared with the previous period, Compared with the
prior period, one new business combination was added to the scope of consolidate financial statement in reason of being
under the same control. Refer to Notes VI, Notes of financial statements ,Change of consolidation scope and Notes VII,
Notes of financial statements, Equity in other entities for more details.
（5）Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group on August 4,2016.
II. Basis for the preparation of financial statements
1.Preparation basis
The company prepares the financial statements on the basis of a continuous operation, the actual transactions,
―Accounting Standards for Enterprises – Basic Standards‖, other accounting standards & related regulations. Furthermore,
all the materials of financial statements of the company meet the relevant disclosure requirements of financial statements
and notes on the ―Editing and Reporting Rules Regarding Information Disclosure for Companies Publicly Issuing
Securities No. 15 – General Regulations for Financial Reporting (revised in 2014) by China Securities Regulatory
Commission.
2.Continuation
15
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
There will be no such events or situations in the 12 months from the end of the reporting period that will cause material
doubts as to the continuation capability of the Company.
III. Important accounting policies and estimations
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of corporate accounting standards. They
truly and completely reflect the financial situations, operating results, equity changes and cash flow, and other relevant
information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the fiscal
year.
3.Operating cycle
An operating cycle for the Company is 12 months, which is also the classification criteria for the liquidity of its assets and
liabilities.
4.Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same Control
1.Business Combinations under the Same Control
The assets and liabilities acquired by the company in the business combination shall be measured as per the obtained book
value of owner’s equity of the combined party in the consolidated financial statements. As for the balance between the
carrying amount of the net assets obtained by the combining party & the carrying amount of the consideration paid by it (or
the total par value of the shares issued), the additional paid-in capital shall be adjusted. If the additional paid-in capital is
not sufficient to be offset, the retained earnings shall be adjusted.
The direct costs for the business combination of the company, including the expenses for audit, assessment and legal
services, shall be recorded into the profits & losses at the current period.
The handling fees, commissions & other expenses for the issuance of equity securities for the business combination shall
be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be offset.
Where the accounting policies adopted by the combined parties are different from those adopted by the company, the
company shall adjust them on the combining date according to the accounting policy it adopts, and shall, pursuant to the
Accounting Standards for Enterprises, recognize them on the basis of such adjustments.
2. Business Combinations not under the Same Control
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.
16
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
The company shall recognize the positive balance between the combination costs & the fair value of the identifiable net
assets it obtains from the acquire as Goodwill while it shall record the negative balance between the combination costs &
the fair value of the identifiable net assets it obtains from the acquire into the profits & losses of the current period.
As for the assets other than intangible assets acquired from the acquire in a business combination (not limited to the assets
which have been recognized by the acquire), if the economic benefits brought by them are likely to flow into the enterprise
and their fair values can be measured reliably, they shall be separately recognized and measured in light of their fair values.
As for any intangible asset acquired in a combination, if its fair value can be measured reliably, it shall be separately
recognized as an intangible asset and shall measured in light of its fair value. As for the liabilities other than contingent
liabilities acquired from the acquire, if the performances of the relevant obligations are likely to result in any out-flow of
economic benefits from the enterprise, and their fair values can be measured reliably, they shall be separately recognized
and measured in light of their fair values. As for the contingent liabilities of the acquire obtained in a combination, if their
fair values can be measured reliably, they shall be separately recognized as liabilities and shall be measured in light of their
fair values.
6.Methods for Preparing the Consolidated Financial Statements
The scope of the consolidated financial statements will be recognized on the basis of controlling. All the subsidiaries will
be included into the consolidated financial statements.
The accounting policies & accounting periods adopted by all the subsidiaries that have been included into the scope of the
consolidated financial statements should be consistent with those adopted by the company. If the accounting policies &
accounting periods adopted by the subsidiaries are different from those adopted by the company, the company shall make
necessary adjustments according to the accounting policies & accounting periods it adopts when preparing the consolidated
financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity method, the company shall
prepare the consolidated financial statements based on the financial statements of the company & its subsidiaries, and other
related documents.
The influences of the internal transactions between the company & its subsidiaries, and its subsidiaries themselves on the
consolidated balance sheet, consolidated profit statement, consolidated cash flow statement & consolidated statement of
changes in owner’s equity will be counteracted at the preparation of the consolidated financial statements.
The portion of a subsidiary’s equity that is not attributable to the parent is treated as minority shareholders’ interest and
presented as ―minority interest‖ in the consolidated balance sheet within owners’ equity. The 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.
17
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
For purchase of minority interests held by the minority shareholders of a subsidiary, when preparing the consolidated
financial statements, the difference between the long-term equity investment newly gained by buying minority interests
and the portion of net assets consistently calculated from the acquisition date (or the consolidation date) pursuant to newly
added shareholding percentage entitled by the subsidiary should be adjusted to the owners’ equity (the capital reserve). If
the capital reserve is not sufficient to absorb the difference, any excess is adjusted against retained earnings.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from the beginning of
the subsidiary to the disposal date shall be included into the consolidated profit statement. The cash flow from the
beginning of the subsidiary to the disposal date shall be included into the consolidated cash flow statement.
7.Joint venture arrangements classification and Co-operation accounting treatment
⑴A joint arrangement refers to an arrangement jointly controlled by two participants or above.，the joint venture
arrangements include co-operation and joint ventures.
(2)When the joint venture company for joint operations, confirm the following items and sh
are common business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
⑶When a company is a joint ventures, joint venture investment will be recognized as long-term equity investments and lo
ng-term equity investments are accounted for in accordance with the method of the Notes to Financial Statements.
8.Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash when preparing the
cash flow statement.which are featured with short term (expire within 3 months since purchased), high liquidity, easy to
convert to know cash, low in risk of value change, could be recognized as cash equivalents. Equity investment are not
recognized as cash equivalents.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
For the company with non-functional currency business, the middle rate of the market exchange rate published by People’s
Bank of China on the date of occurrence of business are recorded as the functional currency, and the balances of foreign
currency shall be adjusted by the end of the month according to the middle rate of the market exchange rate published by
People’s Bank of China at the end of period. The differences between the recording currency amount converted by the
exchange rate at the end of period and the carrying currency amount are as ―Finance Costs – Exchange Gains and Losses‖
and recorded into the current profits or losses. The exchange gains and losses related to borrowings on the fixed assets
shall be made treatment according to the principles of borrowing costs capitalization.
18
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
（2）Conversion of Foreign Financial statement
If overseas subsidiaries, cooperative enterprises, joint ventures, branches of the company adopt the different functional
recording currency and record the overseas business of the company into the financial statements through the consolidated
statements and the accounting by the equity method, the overseas financial statements shall be translated as the recording
functional currency. Before the translation, the company shall adjust the accounting period and policy of overseas business
in order to make the consistent adjustment, and translate the overseas financial statements according to the financial
statements of the preparation of corresponding currency after the accounting policy and period adjusted and as per the
following methods:
① For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is adopted as the
translation exchange rate. For the owner’s equity, the shot exchange rate on the transaction date is adopted as the
translation exchange rate, with the exception of ―undistributed profits‖.
② The incomes and expenses in the income statement shall be translated at the spot exchange rate or the approximate
exchange rate on the transaction date.
③ The translation gap of financial statement of foreign currency shall be listed under the owner’s equity in the
consolidated balance sheet in the preparation of the consolidated financial statements.
10.Financial tools
1. Categories of financial Tools
The Company divides the financial assets into four categories: financial assets measured at fair value and their
variations are recognized as current gain/loss, including trade financial assets or financial liabilities and recognized
directly as financial assets measured at fair value and their variations are recognized as current gain/loss; Investment hold
till expiration; loans and account receivable; saleable financial assets .The company divides the financial liabilities into
two categories: financial liabilities measured at fair value and their variations are recognized as current gain/loss; other
financial liabilities.
2. Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond interests) is
recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus adjust
the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses is recognized as
initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when the difference
between the actual rate and face rate is minor) during the period of holding, and accounted as investment gains. Actual
rate is recognized when obtained, and is not changed in the predictable holding period or applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
19
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
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.
(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
20
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
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.
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.
11.Recognition criteria and withdrawal methods for bad debts provision of accounts receivable
(1)Accounts receivable with material specific amount and specific provisioned bad debt preparation.
①Judgment 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.
②Provision 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.
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Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
⑵Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
①The adopting aging analysis method：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.
②In the Groups, adopting aging analysis method to withdraw bad debt provision
A. Age analysis method
Withdrawal proportion for accounts Withdrawal proportion for other
Age
receivable accounts receivable(%)
Within 1 year (including 1 year) 0 0
1－2 years 10 10
2－3 years 30 30
3－4 years 50 50
4－5 years 90 90
Over 5 years 100 100
When the provision for bad debts is summed and drew by age analysis, it will be counted with the balance of the C/A
between the subsidiary in the scope of consolidated statements which has been deducted by the ending receivables.
B. Other counting methods for bad-debt provisions:
Launching impairment test separately and summing and drawing the provision for bad debts according to the gap
whose expected future value of cash flow is lower than its book value to count into current profit and loss
(3)The determining basis and methods of counting for bad-debt provisions for the no significant amount but counted
separately receivables.
The determining basis of bad-debt provisions for the no significant amount but separately counted receivables: The
accounts receivable under 5 years of age which are not significant without any business connections any more.
②Recognition Standard and Counting & Drawing Method of Bad Debt Reserves for the Accounts Receivable Whose
Single Amount Is not 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
12.Inventory
1.Investories class: The company’s stocks can be classified as: raw materials, inventory goods, low-value consumables &
other materials, etc.
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2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the weighted
averages method or the first-in first-out method.
3. Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method of Obsolete Inventory
Reserves: After taking stock at the end of the period,
4. Inventory System: Adopts the Perpetual Inventory System
13. Divided as assets held for sale
In the presence of the following conditions are satisfied when non-current assets or a part of the company is classified as h
eld for sale:
(1) The components should be immediately sold under the current condition only according to the usual terms of the parts
sold.
(2) The enterprise has made resolution for the disposal of the components, the approval of shareholders’ meeting or
relevant authority agency if the shareholder’s approval is requested by the rules.
(3) The enterprise has signed the irrevocable transfer agreement with the transferee.
(4) The transfer shall be completed within one year.
For the non-current assets held for sale (excluding the financial assets and the deferred income tax
assets), the less amount after the book value and fair value respectively minus the disposal costs shall be
presented as Divided as assets held for sale assets. If the amount of the fair value minus the disposal
costs is less than that of the original book value, the assets impairment loss shall be recognized.
14. Long-term equity investment
(1) The Classification of Long-term Equity Investments
The long-term equity investments of the company should include the investments in the subsidiaries and the investments in
cooperative enterprises and joint ventures.
(2) The Recognition of Investment Cost
① For the business combination under common control and the combining party paying in cash, transferring
non-monetary assets, bearing debts or issuing the equity securities as the consideration, the initial investment cost
shall be recognized according to the shares of the book value in the consolidated financial statement of the ultimate
controlling party that acquired by the combined party on the combination date. The capital reserves shall be adjusted
for the difference between the initial investment cost of long-term equity investment and the book value of the paid
cash, the transferred non-monetary assets and the borne debts. The retained earnings shall be adjusted if the capital
reserves are insufficient to offset.
For the long-term equity investment after the business combination under common control realized step-by-step through
multiple transactions, the shares of the book value of the owner’s equity of the combined party shall be as the initial
investment cost in the individual financial statements and the consolidated financial statements as per the shareholding
proportion. The capital reserves shall be adjusted for the balance between the sums of the book value of the equity
investment of the combined party held on the combination date and the new investment cost increased on the combination
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date minus the initial investment cost of long-term equity investment. The retained earnings shall be adjusted if the capital
reserves are insufficient to offset.
②For the business combination under non-common control, the initial investment cost shall be recognized according to the
fair value of the merger consideration paid on the purchase date. For the long-term equity investment after the business
combination under non-common control realized step-by-step through multiple transactions, the relevant accounting
treatment should be respectively conducted for the individual financial statement and the consolidated financial statements:
1) In the individual financial statements, the sum of the book value of equity investment from the purchased party held
before the purchase date and the new investment cost at the purchase date shall be as the initial investment cost of the
investment. Other comprehensive incomes related to the equity of the purchased party held before the purchase date shall
be transferred into the current investment incomes in the disposal of the investment. 2) In the consolidated financial
statements, the equity of the purchased party held before the purchase date should be measured again according to the fair
value of the equity on the purchase date, and the gap of the fair value and the book value should be recorded into the
current investment incomes. Other comprehensive incomes related to the equity of the purchased party held before the
purchase date shall be transferred into the current investment incomes on the purchase date.
③With the exception of the business combination:
The long-term equity investment acquired by the payment in cash should be as the investment cost as per the actual
purchase payment. The investment costs include fees, taxes and other necessary expenses directly related to the achieved
long-term equity investment.
The long-term equity investment acquired by the issuance of equity securities should be as the investment cost as per the
fair value of the issued equity securities.
The long-term equity investment acquired by the non-monetary assets exchange (the exchange with the commercial
substance) should be as the investment cost as per the fair value of the investment and the payable taxes.
For the long-term equity investment acquired by the debt reorganization, the creditors shall recognize the fair value of the
enjoyed shares as the investment of the debtors.
(3) Subsequent Measurement and Recognition Method of Profit and Loss
The cost method shall be adopted to account the long-term equity investment controlled by the invested party and the
equity method shall be adopted to account the long-term equity investment with joint control or significant influence.
(4) Recognition Criteria for the Invested Party with Joint Control or Significant Influence
The joint control on the economic activity appointed as per the contract shall exist when the major finance and the
operating decision related to the economic activity are agreed by the invested party sharing the control right, which shall be
regarded as the joint control on the invested party implemented by other parties. The decision power to participate in the
finance and operating decision on the enterprise, but without control or joint control with other parties to formulate these
policies, shall be regarded as the significant influence on the invested party implemented by the investment enterprise.
(5) Impairment Test Method and Withdrawing Method
For the impairment test method and the withdrawing method of the long-term equity investment, please refer to
―Long-term Assets Impairment in Article 21 of Important Accounting Policies and Accounting Estimates in Notes 3 of
Financial Statements‖.
15. Entrusted Loans
The entrusted loans shall be made bookkeeping according to the actually entrusted loan amount. The receivable interests
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Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
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January-Ju ne 2016 In RMB
shall be withdrawn according to the interest rate stated in the entrusted loans.
For the impairment test method and the impairment provision withdrawing method of the entrusted loans, please refer to
―Long-term Assets Impairment in Article 21 of Important Accounting Policies and Accounting Estimates in Notes 3 of
Financial Statements‖.
16..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.
For the impairment test method and the impairment provision withdrawing method of the .Investment
Real Estates, please refer to ―Long-term Assets Impairment in Article 21 of Important Accounting
Policies and Accounting Estimates in Notes 3 of Financial Statements‖.
17.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management, and
operation with service life of more than one year. Fixed assets are recognized when all of the following conditions are
satisfied：Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2) The cost of the fixed asset
can be reliable measured.
（2）Depreciation method
Provision for depreciation of highways and bridges is made with work amount method. Estimated net residual value rate
is zero. Estimated useful life is determined according to the period of operation right in respect of charge collection. The
concrete calculation method is as follows: The amount of provision for depreciation per standard vehicle traffic volume is
to be calculated based on the estimated total standard vehicle traffic volume within expected useful life of highways and
bridges and the original value or book value of highways and Bridges. Then provision for depreciation is made according
to the actual standard vehicle traffic volume in each fiscal period.
The company regularly rechecks the estimate total standard vehicle traffic volume with in 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
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Notes to finan cia l state ments
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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 ration of fixed assets：
Depreciable life
Classification of fixed asset Residual rate（%） Depreciation rate（%）
（Year）
Highway and Bridge：
Including：Guangfo Expressway 28 years 0% Working flow basis
Fokai Expressway 30 years 0% Working flow basis
Jingzhu Expressway Guangzhu Section 30 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 5-15 years 3%—10% 6 %-19.4%
(3) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset Impairment Reserves
For the impairment test method and the impairment provision withdrawing method of the Fixed assets, please refer to
―Long-term Assets Impairment in Article 21 of Important Accounting Policies and Accounting Estimates in Notes 3 of
Financial Statements‖.
18.Construction-in process
1. Calculation of Construction-in-process:The constructions in process are classified & accounted according to the
established projects.
2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets
All the expenditures that bring the construction in process to the expected condition for use shall be the credit value of the
fixed asset. If the fixed asset construction in process has already reached the expected condition for use, but hasn’t been
made the final account; it shall be carried forward to a fixed asset according to its estimated value based on the budget, cost
or actual cost of the construction starting from the date when it reaches the expected condition for use, and the fixed asset
shall be depreciated according to the company’s depreciation policy for fixed assets. After the final account has been made,
the original provisional estimated value shall be adjusted according to the actual cost, but the depreciation which has
originally been counted & drawn shall not be adjusted.
3．Test Method for Construction-in-Process Impairment and Counting & Drawing Method
For the impairment test method and the impairment provision withdrawing method of the Construction-in process , please
refer to ―Long-term Assets Impairment in Article 21 of Important Accounting Policies and Accounting Estimates in Notes
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3 of Financial Statements‖.
19.Loan expenses
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the
conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing expenses are recognized
as expenses according to the occurred amount, and accounted into gain/loss of current term.
The assets meeting capital conditions refer to the fixed assets, investment real estates and inventories which are constructed
or produced in a long time to reach the predicted use or sale state.
When a loan expense satisfies all of the following conditions, it is capitalized:
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.
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If the Loan has discount or premium, the discount or premium amount should be determined according to actual
interests in each accounting period. The interest amount should be adjusted in each period.
20.Intangible assets
(1) Pricing method, useful life and impairment test
1. The valuation methods of intangible assets
(1)The initial measurement is conducted according to the actual cost when the intangible assets are acquired
The cost of the purchased intangible assets includes its buying price, relevant tax and the othe expenses that are
directly attributed to this assets meeting its predetermined objective and other expenses that occur. The buying price of
intangible assets is over the deferred payment under normal credit conditions, which has the nature of financing materially,
the cost of intangible assets is determined on the basis of the present value of its buying price.
We acquire the mortgaged intangible assets from debtors through debt restructuring and determine the entry value on
the basis of the fair value of the intangible assets, we have the balance between the book value of debt restructuring and
the fair value of intangible assets used for mortgage charged to the current profit and loss.
The entry value of the non-monetary assets exchanged into by the non-monetary assets are determined on the basis of
the fair value of the assets exchanged out if the exchange of non-monetary assets has commercial nature and the assets
exchanged into or out can be reliably measured, unless there is authentic evidence indicating that the fair value of assets
exchanged into are more reliable; if the non-monetary assets that cannot meet the above prerequisite use the book value of
the assets exchanged out and relevant taxes payable as the cost of the non-monetary assets, the profit and loss is not
confirmed.
The entry value of the intangible assets acquired by the absorption merger under the control of one company is determined
by the book value of the merged party;the entry value of the intangible assets acquired by the absorption merger that is not
under the control of one company is determined by the fair value.
The cost of the intangible assets developed internally includes the materials consumed in developing the assets, cost of
service, registration fees, other patent used in developing, amortization of concession and interest charges meeting the
capitalization conditions and other direct costs that occur before the intangible assets meeting the predetermined
objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.
The intangible assets that have limited serviceable life are amortized by the straight-line method during the period when
the assets can bring about economic interests;The intangible assets are deemed as uncertain serviceable life and are not
amortized if it is impossible to expect the period when the assets could bring about economic interests.
At the end of period, the Group shall check the service life and amortization method of intangible assets with finite service
life, if there is any change, it shall be regarded as a change of the accounting estimates. Besides, the Group shall check the
service life of intangible assets without certain service life, if there is any evidence showing that the period of intangible
assets to bring the economic benefits to the enterprise can be prospected, it shall be estimated the service life and amortized
in accordance with the amortization policies for intangible assets with finite service life.
（2） Provision for the depreciation of value of the intangible assets
For the impairment test method and the impairment provision withdrawing method of the Intangible assets, please refer to
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January-Ju ne 2016 In RMB
―Long-term Assets Impairment in Article 21 of Important Accounting Policies and Accounting Estimates in Notes 3 of
Financial Statements‖.
21.Impairment of Long-term assets
(1) Scope
The assets Impairment main includes long-term equity investment, investment property (the investment property measured
by the fair value excluded), fixed assets, projects under construction, engineering material, intangible assets (the
capitalized development expenditure included), asset group, combination of asset group, business reputation, etc..
(2) Recognition of Possible Impairment Assets
The company makes judgment of the assets if there exists the possible impairment at the balance sheet date. The intangible
assets with indefinite goodwill and service life due to the combination of enterprise, shall be conducted the impairment test
every year regardless of the impairment. The impairment may occurs for the assets if there is the following status:
① The market price of assets fall sharply in the current period, and the decline is obviously beyond that estimated due to
the passage of time or normal use.
② The significant changes in the economy, technology or legal environment operated by the company and the assets
market in the current or the near future adversely affect the company.
③ The improvement of the market interest rates or other market investment returns in the current period, influence the
company to calculate assets estimating the discount rate of the present value of future cash flow and result in the sharp
drop of the recoverable amount of the assets.
④ There is evidence that shows the assets have become obsolete or the entities have been damaged.
⑤ The assets have been or will be idle, terminated the use or planned to dispose in advance.
⑥ The evidence in the internal report of the company shows that the economic performance of assets has been less than or
lower than the expected, such as the net cash flow created by assets or the achieved operating profit (or loss) is far below
(or above) the estimated amount.
⑦ Other evidences indicate the impairment of assets may have occurred.
(3) Measurement of the Recoverable Amount of the Assets
The recoverable amount shall be estimated if there exists the impairment for the assets. The recoverable amount should be
recognized according to the higher one between the net amount of the fair value minus the disposal costs and the present
value of the cash flow of assets expected in the future.
(4) Determination of Asset Impairment Loss
The measurement results of the recoverable amount show that the book value of assets shall be reduced to the recoverable
amount and the reduced amount shall be recognized as the impairment loss of assets and recorded into the current profits
and losses, and the impairment provisions of the relevant assets are withdrawn if the recoverable amount of the assets is
less than the book value. After the recognition of the assets impairment loss, the depreciation or amortization costs of the
impairment assets should be made adjustment accordingly in the future period in order to make the assets to systematically
amortize the book value of the assets after adjusted within the remaining service life (the estimated residual value
deducted). The impairment loss of assets after recognized shouldn’t be reversed in the future accounting period.
(5) Recognition and Impairment Treatment of Assets Group
If there is the impairment for one asset, the company shall estimate the recoverable amount based on the individual asset. If
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Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
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it is difficult for the company to estimate the recoverable amount of the individual asset, the recoverable amount of asset
group shall be recognized on the basis of the asset group which the asset is belong to. The recognition of the asset group
should be made on the basis of the main cash inflow generated by the assets group that if is independent to the cash inflow
of other assets or assets group.
The corresponding impairment loss shall be recognized if the recoverable amount of the assets group or the assets group
combination is less the book value (the book value of the assets group or the assets group combination should include the
amortization quota relevant to corporate assets and goodwill for the assets group or the assets group combination amortized
by the corporate assets and the goodwill). The book value of goodwill in the amortized assets group or assets group
combination shall be firstly offset for the impairment losses, and the book value of other assets shall be offset in proportion
according to the proportion of the book value of other assets in the assets group or the assets group combination, with the
exception of the goodwill.
(6) The Goodwill Impairment
The company has conducted the impairment test at least every year for the goodwill established by the business
combination. The book value of the goodwill generated by the combination shall be amortized into the related asset group
from the purchase date. If difficult to amortize into the relevant asset group, the book value shall be amortized into the
relevant asset group combination. The relevant asset group or asset group combination refers to that benefitting from the
synergistic effect of the business combination and is not more than the report portion recognized by the company.
When the relevant asset group or the asset group combination including the goodwill are conducted the impairment test,
the impairment test should be firstly conducted for the asset group without the goodwill or the asset group combination, the
recoverable amount shall be calculated and the corresponding impairment loss shall be recognized by comparison with the
relevant book value if there exists the impairment for the asset group relevant to the goodwill or the asset group
combination. Then the impairment test should be conducted for the asset group with the goodwill or the asset group
combination, the impairment loss of the goodwill shall be recognized and made the treatment according to the provisions
of the asset group impairment stated in the notes if the recoverable amount of the relevant asset group or the asset group
combination is less than the book value by comparison of the book value of these relevant asset group or the asset group
combination (including the book value of the goodwill amortized) with the recoverable amount.
22.Long-term amortizable expenses
Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods of all expenses are more
than one year (excluding 1 year), they should be amortized in the regulated years.
23.Remuneration
（1）The scope of the employee remuneration
Remuneration refers to all kinds of rewards or compensation that the Company gives to get in return for the services its
employees provide or employment termination. It includes short-term compensation, post-employment benefits,
demission benefits and other long-term employee benefits.
Enterprises to provide employees spouse, child welfare, dependents, survivors and other beneficiaries
of deceased employees, etc., also belong to payroll.
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Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
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During the company's accounting staff to provide services, the actual wages, bonuses, allowances and subsidies, welfare,
medical insurance, work injury insurance and maternity insurance and other social insurance, housing fund confirmed, lab
or union funds, employee education funds and as a liability profit or loss or costs related assets. If the debt is expected to
provide services after the end of the annual reporting period in which an employee can not be fully paid within twelve mo
nths, and the financial impact is material, the amount will be discounted liabilities measured after.
(2) Accounting methods for post-employment benefits
Post-employment benefits refer to the compensation and benefits that the Company gives to get in return for employees’
services for their retirement or employment termination, excluding short-term compensation and demission benefits. It
falls into two categories, defined contribution plans and defined benefit plans.
① The defined contribution plan: the company shall no longer bear the further obligation to pay severance benefit plans
after the company deposits the fixed costs to the independent funds. The basic pension insurance and the unemployment
insurance shall be recognized as the liability according to the payable amount accounted by the defined contribution plans
and recorded onto the current profits and losses or the relevant asset costs during the accounting period of the services
provided by the staffs.
② The defined benefit plan: the severance benefit plans with the exception of the defined contribution plans.
(3) Accounting Treatment Method of Demission Welfare
The Company offers compensation to terminate employment with its employees before it expires or encourage them to
accept lay-off. Such compensation is demission benefits and counted in current profit and loss. The employee
compensation liabilities generated by the demission welfare shall be recognized on the early date and recorded into the
current profits and losses: (1) when the company can’t withdraw the demission welfare provided due to the rundown
suggestion or the termination of labor relations plans. (2) when the enterprise recognizes the costs or the expenses related
to the reorganization of demission welfare payment.
The economic compensation before the official retirement date shall be belong to the demission welfare when the
implementation of the internal retirement plan for workers. During the period from the termination of service date to the
normal retirement date, the paid internal retirement payroll and social insurance charges shall be once recorded into the
current profits and losses. The economic compensation after the official retirement date (such as the normal retirement
pension) should be handled according to the welfares after the demission.
24.Estimated liabilities
The company should recognize the related obligation as a provision for liability when the obligation meets the following
conditions:
(1) That obligation is a present obligation of the enterprise;
(2) It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
(3) A reliable estimate can be made of the amount of the obligation. On the balance sheet date, an enterprise shall take into
full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the Contingencies to
measure the estimated liabilities in accordance with the best estimate of the necessary expenses for the performance of the
current obligation.
When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterprise is expected to be
compensated by a third party, the compensation should be separately recognized as an asset only when it is virtually certain
that the reimbursement will be obtained. Besides, the amount recognized for the reimbursement should not exceed the
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Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
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book value of the estimated liabilities
25.Bond payable
When the company is issuing bonds, the total price issued should be included in the ―Payable bonds‖ subject.
The difference between bond issuance total amount and the total amount of bond face 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.
26.Other Comprehensive Incomes
Other comprehensive incomes refer to the profits and losses unrecognized in the current profits and losses according to
other provisions of accounting standards. There are two reports:
(1) Other comprehensive incomes that unable to be reclassified into the profits and losses in the future accounting period,
mainly including the changes caused by the net liabilities and the net assets of the defined benefit plan that re-measured
and the shares of other comprehensive incomes that accounted and unable to be reclassified into the profits and losses for
the invested party in the future accounting period according to the equity method.
(2) Other comprehensive incomes that reclassified into the profits and losses in the future accounting period when the
requirements are met, the shares of other comprehensive incomes that accounted and reclassified into the profits and losses
for the invested party in the future accounting period according to the equity method when the requirements are met, the
profits or losses caused by the fair value changes of the sellable financial assets, the profits or losses generated by the
sellable financial assets reclassified for the held-to-maturity investment, the effective hedging portion of the profits and
losses issued by the cash flow hedging instruments, and the translation differences of foreign financial statements.
27.Revenues
The company’s incomes mainly include the toll service revenues and the services provision.
(1) The recognition principle of the toll service revenues is that the toll revenues refer to the charges of operating the toll
roads and shall be recognized in the actual charge.
(2) The recognition principle of the services provision is as follows:
The labor services started and completed within the same fiscal year shall be recognized as the revenues when the labor
services finished. If the labor services started and completed in the different fiscal year and under the reliable estimation of
the provided services transaction results, the company shall recognize the relevant service incomes according to the
completion percentage method at the balance sheet date. The results of the transaction can be estimated reliably when the
following requirements are all met: (1) total revenues and total labor costs can be measured reliably. (2) the economic
benefits relevant to the transaction will flow into the enterprise. (3) the competition degree of the labor services can be
reliably determined.
28.Governmental subsidy
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
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Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
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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.
29.Deferred income tax assets and deferred income tax liabilities
The company is likely to determine the deferred income tax assets produced from deductible temporary differences with
the limit of offsetting the taxable income of temporary difference.
The Company confirms the temporary differences of the taxable that is not paid in the current and prior periods as the
deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger and those will
affect either accounting profit or the temporary differences of the taxable income when the transactions occur are not
included in the deferred income tax liabilities.
30.Accounting Methods of Income tax
The company’s income tax is accounted in Balance sheet liability approach.
The company recognizes the sum of current income tax and deferred tax as the income tax expenses(or income) in the
income statement on the basis of calculating and determining the income tax of the current period(namely the current
taxes payable) and the deferred tax (the deferred tax expenses or income ), but excluding the effects of the business
combination and the income taxes related to the transactions or events directly recorded in the owner’s rights and
interests.
31.Change of main accounting policies and estimations
⑴Change of accounting policies
N/A
⑵Change of accounting estimations
N/A
IV. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
Toll income, Rent income and Labour
VAT 3%、5%、6%、11%、17%
income
33
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Tax category Tax basis Tax rate
Toll income, Rent income and Labour
Business tax 3%、5%
income
City maintenance and construction tax The actual payment of turnover tax 7%、5%
.Education surcharges The actual payment of turnover tax 3%
Local Education surcharges
The actual payment of turnover tax 2%
Enterprise income tax Taxable income 25%
2.Preferential tax and approving documents
N/A
V. Notes to the major items of consolidated financial statement
With respect to the notes item disclose below, unless otherwise specified, ―Year-beginning‖ refers to December 31, 2015,
― Year-end ― refers to June 30, 2016, ―Previous period‖ refers to Jan-June 2015, ―This period‖ refers to Jan-June 2016.
1.Monetary Capital
In RMB
Items Amount in year-end Amount in year-begin
Cash 84,796.99 138,192.93
Bank deposit 1,676,634,398.25 1,198,752,797.31
Other 872,297.38 738,286.61
Total 1,677,591,492.62 1,199,629,276.85
Thereinto ：The total amount of deposited
abroad
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end
Type
Book Balance Bad debt provision Book value
34
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount Proportio Amount Proportion
n(%) (%)
Account receivable with single
major amount and withdrawal bad 69,507,918.82 81.14 69,507,918.82
debt provision for single item
Account receivable withdrawal bad
debt provision by group of credit 16,160,141.31 18.86 104,984.68 0.65 16,055,156.63
risk characteristics
Account receivable with minor
individual amount but bad debt
provision is provided
Total 85,668,060.13 100.00 104,984.68 0.12 85,563,075.45
Continued table
Amount in year- begin
Book Balance Bad debt provision
Type
Amount Proportio Amount Proportio Book value
n(%) n(%)
Account receivable with single
major amount and withdrawal bad 64,144,586.08 82.58 64,144,586.08
debt provision for single item
Account receivable withdrawal bad
debt provision by group of credit 13,532,877.08 17.42 280,757.62 2.07 13,252,119.46
risk characteristics
Account receivable with minor
individual amount but bad debt
provision is provided
Total 77,677,463.16 100.00 280,757.62 0.36 77,396,705.54
-- Receivable accounts with large amount individually and bad debt provisions were provided
Amount in year-end
Name Receivable Bad debt
Proportion Reason
accounts provision
Guangdong Union Electronic Services Been recovered after
51,065,424.16
Co., Ltd. the period
35
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount in year-end
Name Receivable Bad debt
Proportion Reason
accounts provision
Guangdong Humen Bridge Co., Ltd. 18,442,494.66 Period after recovery
Total 69,507,918.82
- Account receivable on which bad debt provisions are provided on age basis in the group：
Balance in year-end
Aging
Receivable accounts Bad debt provision Withdrawal proportion
Within 1 year 15,792,627.92
1-2 years 141,513.39 14,151.34 10.00
2-3 years 110,833.33 33,250.00 30.00
3-4 years 115,166.67 57,583.34 50.00
4-5 years
Over 5 years
Total 16,160,141.31 104,984.68 0.65
Notes of the basis of recognizing the group:
Refer to "Notes 3 the financial statements of the important accounting policies and accounting estimates No. 11 Recogniti
on and withdrawal method of bad debts.
- In the groups, accounts receivable adopting other method to withdraw bad debt provision：N/A
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB-175,772.94 ; recovery or payback for bad debts Amount is
RMB0.00.
Where the current bad debts back or recover significant amounts:N/A
（3）The current accounts receivable write-offs situation:N/A
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Aging Proportion(%) Bad debt
provision
36
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Name Amount Aging Proportion(%) Bad debt
provision
Guangdong Union Electronic Services Co., Within 1 y
51,065,424.16 59.61
Ltd. ear
Within 1ye
18,442,494.66 21.53
Guangdong Humen Bridge Co., Ltd. ar
Guangdong Jingzhu Expressway Guangzhu Within 1ye
4,173,999.99 4.87
Section Co., Ltd. ar
Within 1ye
Guangdong Expressway Co., Ltd. 2,180,150.00 2.54
ar
Guangzhou Xiehou Advertising media Co., Within 1ye
2,002,000.00 2.34
Ltd. ar
Total 77,864,068.81 90.89
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
N/A
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable: N/A
3. Prepayments
（1）Age analysis
Balance in year-end Balance in year-begin
Age Proportion Proportion
Amount Amount
（%） （%）
Within 1 year 3,834,926.37 94.93 6,556,299.23 88.72
1-2 years 35,000.00 0.87 664,227.74 8.99
2-3 years
Over 3 years 169,738.00 4.20 169,738.00 2.29
Total 4,039,664.37 100.00 7,390,264.97 100.00
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
N/A
37
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Amount Time Proportion(%)
CITIC Securities Co., Ltd. 1,103,773.58 Within 1 year 27.32
Guangdong Guanyue Luqiao Co., Ltd. 646,014.00 Within 1 year 15.99
Ping An Insurance 469,204.50 Within 1 year 11.61
Guangdong Changda Highway Engineering Co., Ltd. 390,375.10 Within 1 year 9.66
Dongguan Yongyao Optoelectricity Technology Co., Within 1 year
363,487.50 9.00
Ltd.
Total 2,972,854.68 73.58
4.Dividend receivable
（1）Dividend receivable
In RMB
Items Balance in year-end Balance in year-begin
China Everbright Bank Co., Ltd. 44,698,439.36
Total 44,698,439.36
（2）Significant dividend receivable aged over 1 year: N/A
5.Other accounts receivable
(1) Other accounts receivable disclosed by category
Balance in year-end
Book Balance Bad debt provision
Type
Amount Proportio Amount Proportio Book value
n(%) n(%)
Other Account receivable with single
major amount and withdrawal bad 53,351,565.01 72.15 53,351,565.01 100.00
debt provision for single item
Other Account receivable
20,595,640.93 27.85 1,693,983.03 8.22 18,901,657.90
withdrawal bad debt provision by
38
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Balance in year-end
Book Balance Bad debt provision
Type
Amount Proportio Amount Proportio Book value
n(%) n(%)
group of credit risk characteristics
Other Account receivable with minor
individual amount but bad debt
provision is provided
Total 73,947,205.94 100.00 55,045,548.04 74.44 18,901,657.90
Continued table
Balance in year-begin
Book Balance Bad debt provision
Type
Amount Proportio Amount Proportio Book value
n(%) n(%)
Other Account receivable with
single major amount and withdrawal 53,351,565.01 72.77 53,351,565.01 100.00
bad debt provision for single item
Other Account receivable
withdrawal bad debt provision by 19,961,129.27 27.23 1,695,657.14 8.49 18,265,472.13
group of credit risk characteristics
Other Account receivable with
minor individual amount but bad
debt provision is provided
Total 73,312,694.28 100.00 55,047,222.15 75.09 18,265,472.13
- Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
Balance in year-end
Other receivable（Unit） Bad debt
Other receivable Proportion Reason
provision
Kunlun Securities Co.,Ltd. 49,343,885.10 49,343,885.10 100.00 Notes 1
Beijing Gelin Enze Organic Fertilizer
Co., Ltd. 4,007,679.91 4,007,679.91 100.00 Notes 2
Total 53,351,565.01 53,351,565.01
Notes 1：The parent company once paid RMB 33,683,774.79 into Kunlun Securities Co., Ltd, Guangdong
39
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Expressway technology investment Co., Ltd once paid RMB 18,000,000.00 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, The Company and Guangdong Expressway
Technology Investment Co., Ltd had switched the money that paid into Kunlun Securities Co., Ltd to other account
receivable, and follow the careful principle to doubtful debts provision. The RMB 710,349.92 Credit was Recovered in
2008, and the provision for bad debt is deducted, The RMB977,527.77 credit was recovered in 2011, and the provision for
had debt is deducted. The RMB 652,012.00 Credit was recovered in 2014, and the provision for had debt is deducted.
Notes 2：Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze Organic
Fertilizer Co., Ltd.for RMB12,220,079.91. Eight millions of it was entrust loan, three million 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 had 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.
The company in 2014 recovered arrears of RMB 8,000,000.00, rushed back to the provision for bad debts and write off un
collected interest entrusted loans according to the settlement agreement of RMB 212,400.00.
- Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
Amount in year-end
Age
Other receivable Bad debt provision Withdrawal proportion
Within 1 year 13,770,510.69
1-2 years 315,461.47 31,546.15 10.00
2-3 years 12,727.60 3,818.28 30.00
3-4 years 93.60 46.80 50.00
4-5 years
Over 5 years 1,658,571.80 1,658,571.80 100.00
Total 15,757,365.16 1,693,983.03 10.75
Notes of the basis of recognizing the group:
Refer to "Notes 3 the financial statements of the important accounting policies and accounting estimates No. 11 Recogniti
on and withdrawal method of bad debts.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:N/A
40
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
Amount in year-end
Other account Bad debt Withdrawal Reason
Name
receivable provisio proportion
n （%）
Guangdong Litong Real estate Investment Co., Ltd. 1,435,856.00 Rease deposit
Beijing Shibang Weilishi Property Management
393,331.00 Deposit
Services Co., Ltd.
Guangdong Guanghui Expressway Co., Ltd. 757,376.00 Guarantees fund, deposit
Foshan Nanhai Labor & social Security Bureau 449,682.00 Land deposit, recoverable
Zhaoqing Yuezhao Highway Co., Ltd. 447,849.00 Guarantees fund, deposit
Guangdong Guanyue Luqiao Co., Ltd. 364,594.20 Quality guarantees fund
Zhaoqing Guanghe Expressway Co., Ltd. 163,620.63 Quality guarantees fund
CRCC Harbour & Channel Engineering Bureau
165,169.25 Quality guarantees fund
Group Co., Ltd.
Guangshen Zhu Expressway Co., Ltd. 121,280.00 Guarantee fund
Guangdong Highway Construction Co., Ltd. 76,563.00 Guarantee fund
Chengdu Shuguang Fibre-optical Metwork Co., ltd. 59,758.09 Quality guarantees fund
Guangdong Guangzhu West Line Expressway Co., Guarantee fund
47,639.00
Ltd.
Guangdong Boda Expressway Co., Ltd. 45,480.00 Guarantee fund
Guangdong Expressway Co., Ltd. 39,654.00 Guarantee fund
Guangdong Feida Communication Engineering Co., Quality guarantees fund
34,849.25
Ltd.
Guangdong Kaiyang Expressway Co., Ltd. 33,300.00 Quality guarantees fund
Guangdong Weishi Highway Engineering Co., Ltd. 51,157.05 Quality guarantees fund
Guangzhou Chengcheng Auto Leasing Service Co.,
30,000.00 Deposit
Ltd.
41
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount in year-end
Other account Bad debt Withdrawal Reason
Name
receivable provisio proportion
n （%）
Guangdong West Coastal Expressway Zhuhai Section
20,466.00 Quality guarantees fund
Co., ltd.
Guangdong Jiangzhong Expressway Co.,Ltd. 19,708.00 Quality guarantees fund
Guangdong Humen Bridge Co., Ltd. 16,676.00 Guarantee fund
Shanxi Hantang Computer Co., Ltd. 14,250.00 Quality guarantees fund
Guangdong Dingrong Information Technology Co.,
10,950.00 Quality guarantees fund
Ltd.
Guangdong Zhonglin Electrical Installation
8,820.00 Quality guarantees fund
Engineering Co., Ltd.
Guangdong Jingzhu Expressway Guangzhu North
6,064.00 Deposit
Co., Ltd.
Deposit 5,700.00 Deposit
Beijing Gongke Feida Transport Engineering
4,140.00 Quality guarantees fund
Development Co., Ltd.
Guangdong West Coastal Expressway Xinhui Section
3,790.00 Quality guarantees fund
Co., Ltd.
Guangdong Road & Highway Construction
3,762.70 Quality guarantees fund
Development Co., Ltd.
Guangdong Yueyun Communication Co., Ltd. 3,032.00 Quality guarantees fund
Guangdong Xinyue Communication Investment Co.,
2,158.60 Quality guarantees fund
Ltd.
Shanxi Sihe Communication Engineering Co., Ltd. 1,600.00 Quality guarantees fund
Total 4,838,275.77
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB-1,674.11; recovery or payback for bad debts Amount is RMB 0.00.
Where the current bad debts back or recover significant amounts:N/A
42
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
(3) The actual write-off other accounts receivable: N/A
(4) Other accounts receivable classified by the nature of accounts
Nature Closing book balance Opening book balance
Securities trading settlement funds balance 49,343,885.10 49,343,885.10
Guarantee deposit 4,838,275.77 5,034,205.25
Current account of Gelin enze 4,007,679.91 4,007,679.91
Pretty cash 4,100,100.00 4,100,100.00
Advertising and service fee 952,925.61 1,978,678.79
Other 10,704,339.55 8,848,145.23
Total 73,947,205.94 73,312,694.28
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
Proportion of the
total year end Closing
Closing
Name Nature Aging balance of the balance of bad
balance
accounts debt provision
receivable(%)
Securities trading settle Over 5
Kunlun Securities Co.,Ltd 49,343,885.10 66.73 49,343,885.10
ment funds
years
Over 5
Beijing Gelin Enze Current account 4,007,679.91 5.42 4,007,679.91
years
Guangdong Expressway Co., Administration fee, Within 1
1,703,434.12 2.30
Ltd. Quality guarantees fund
year
Heshan Communication Real Over 5
Current account 1,470,000.00 1.99 1,470,000.00
estate Development Company
years
Guangdong Litong Real estate
Deposit 1,435,856.00 3-4 years 1.94
Investment Co., Ltd.
Total 57,960,855.13 78.38 54,821,565.01
43
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
(6) Accounts receivable involved with government subsidies: N/A
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets: N/A
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable: N/A
6.Inventory
Year-end balance Year-beginning balance
Items Provision for Provision for
Book Balance Book value Book Balance Book value
bad debts bad debts
Engineering construction 800,998.80 800,998.80 800,998.80 800,998.80
Total 800,998.80 800,998.80 800,998.80 800,998.80
- By the end of this period, no situation that needs provision for decline in value was found in inventories.
7.Non-current asset due within 1 year
Items
Year-end balance Year-beginning balance
Advance business tax 55,744.14
Total 55,744.14
8. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Amount in year-end
Items
Book balance Bad debt provision Book value
Available-for-sale Debt Instruments
Available-for-sale equity
1,719,926,891.17 36,793,200.00 1,683,133,691.17
Instruments
Measured by fair value 884,558,589.44 884,558,589.44
Measured by cost 835,368,301.73 36,793,200.00 798,575,101.73
44
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount in year-end
Items
Book balance Bad debt provision Book value
Other
Total 1,719,926,891.17 36,793,200.00 1,683,133,691.17
Continued table
Amount in year- begin
Items
Book balance Bad debt provision Book value
Available-for-sale Debt instruments
Available-for-sale equity
1,832,849,264.29 36,793,200.00 1,796,056,064.29
instruments
Measured by fair value 997,480,962.56 997,480,962.56
Measured by cost 835,368,301.73 36,793,200.00 798,575,101.73
Other
Total 1,832,849,264.29 36,793,200.00 1,796,056,064.29
(2) Available-for-sale financial assets measured by fair value at the period-end
Available-for-sale Debt Available-for-sale equity
Type instruments instruments Total
Cost of the equity
instruments/amortized
517,560,876.80 517,560,876.80
cost of the liabilities
instruments
Fair value 884,558,589.44 884,558,589.44
Changed amount of the
fair value accumulatively
366,997,712.64 366,997,712.64
included in other
comprehensive income
Amount of impairment
45
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of June 30, 2016 of RMB 3.76, the final calculation of fair value was RMB884,558,589.44.
(3) Available-for-sale financial assets measured by cost at the period-end
Book balance
Investee
Period-begin Increase decrease Period -end
Guangdong Rodio and Television
Networks investment No.1 Limited
partnership enterprise 50,000,000.00 50,000,000.00
Kunlun Securities Co., Ltd.（Notes1） 30,000,000.00 30,000,000.00
Huaxia Securities Co., Ltd.（Notes 2） 5,400,000.00 5,400,000.00
Huazheng Assets Management
Co. Ltd.（Notes3） 1,620,000.00 1,620,000.00
Guangdong Guangle Expressway Co.,
Ltd. 748,348,301.73 748,348,301.73
Total
835,368,301.73 835,368,301.73
Continued table
Shareholdi
Impairment provision
ng Cash bonus of
Investee proportion the reporting
Period-begin Period -end among the period
investees
Guangdong Radio and Television
Networks investment No.1 Limited
partnership enterprise 2,97 999,272.30
Kunlun Securities Co., Ltd.（Notes1） 30,000,000.00 30,000,000.00 5.74
Huaxia Securities Co., Ltd.（Notes 2） 5,400,000.00 5,400,000.00 0.27
Huazheng Assets Management
Co. Ltd.（Notes3） 1,393,200.00 1,393,200.00 0.54
46
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Shareholdi
Impairment provision
ng Cash bonus of
Investee proportion the reporting
Period-begin Period -end among the period
investees
Guangdong Guangle Expressway Co.,
Ltd. 9.00
Total 36,793,200.00 36,793,200.00 999,272.30
Notes1：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.
Notes 2：The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in December
2005. The Company made full provision for impairment in respect of this long-term equity investment of RMB 5.4
million.
Notes 3： According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co.,
Ltd. As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was 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.
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
Available-for-sale Available-for-sale
Type Total
Equity instruments Debt instruments
Balance of the withdrawn impairment at
the period-begin 36,793,200.00 36,793,200.00
Withdrawn at the period
47
Guangdong P rovinc ia l Expressw ay Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Available-for-sale Available-for-sale
Type Total
Equity instruments Debt instruments
Including ： Transferred from other
comprehensive income
Period Decrease
Including：Return after the fair value
recovery
Balance of the withdrawn impairment at
the period-end 36,793,200.00 36,793,200.00
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair
value or non temporary decline but not related to impairment provision: N/A.
48
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
9. Long-term equity investment
Increase/decrease
Investment Withdra Closing
Addition Adjustmen
Cash bonus or wal of balance of
Investees Opening balance Negative profit and loss t of other Changes Closing balance
al profits impairm impairment
investme recognized comprehe of other Other
announced to ent provision
investme nsive equity
nt under the equity issue provisio
nt income
method n
I. Joint venture
Guangdong Guanghui
1,069,914,970.39 114,432,035.24 105,000,000.00 1,079,347,005.63
Expressway Co., Ltd.
Zhaoqing Yuezhao Highway
274,277,246.91 31,638,610.61 37,376,405.10 268,539,452.42
Co., Ltd.
Subtotal
1,344,192,217.30 146,070,645.85 142,376,405.10 1,347,886,458.05
2. Affiliated Company
Shenzhen Huiyan Expressway 133,060,103.06 13,566,398.79 146,626,501.85
Guangdong Jiangzhong
175,416,968.11 3,524,508.08 178,941,476.19
Expressway
Ganzhou Kangda Expressway 187,783,489.51 11,971,498.99 199,754,988.50
49
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Increase/decrease
Investment Withdra Closing
Addition Adjustmen
Cash bonus or wal of balance of
Investees Opening balance Negative profit and loss t of other Changes Closing balance
al profits impairm impairment
investme recognized comprehe of other Other
announced to ent provision
investme nsive equity
nt under the equity issue provisio
nt income
method n
Ganzhou Gankang Expressway 204,765,919.28 3,860,074.44 208,625,993.72
Guangdong Yueke Technology
205,095,880.63 2,739,849.51 207,835,730.14
Petty Loan Co., Ltd.
Subtotal
906,122,360.59 35,662,329.81 941,784,690.40
Total
2,250,314,577.89 181,732,975.66 142,376,405.10 2,289,671,148.45
50
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
10. Investment property
(1) Investment property adopted the cost measurement mode
Houses and Construction in
Items Land use right Total
buildings progress
I.Original value
1.Opening balance 12,664,698.25 12,664,698.25
2.Increased amount of the period
（1）Outsourcing
(2)Inventory, Fixed assets and
Construction project into
(3)Enterprise consolidation
3.Decreased amount of the
period
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 12,664,698.25
II.Accumulated depreciation
accumulated amortization
1.Opening balance 8,980,513.77 8,980,513.77
2.Increased amount of the period 232,106.70 232,106.70
(1)Withdrawal or amortization 232,106.70 232,106.70
3.Decreased amount of the
period
（1）Disposal
（2）Other Out
4.Closing balance 9,212,620.47 9,212,620.47
III. Impairment provision
51
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Houses and Construction in
Items Land use right Total
buildings progress
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the
period
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 3,452,077.78 3,452,077.78
2.Opening book 3,684,184.48 3,684,184.48
⑵Details of investment property failed to accomplish certification of property
Items Book value Reason
Transportation and other ancillary 1,956,717.78 Transportation and other ancillary
facilities facilities, Not accreditation
52
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
11. Fixed assets
(1) List of fixed assets
Jingzhu Electricity
Guangfo House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
buildings equipment equipment
Expressway
Guangzhu section other
I. Original price
1.Opening balance 1,460,270,190.66 8,561,844,081.05 5,130,394,315.84 350,773,581.37 114,585,044.58 67,797,442.56 593,324,239.83 16,278,988,895.89
2.Increased amount of
7,078,323.12 7,078,323.12
the period
（1）Purchase 741,967.96 741,967.96
（2）Transfer of project
6,336,355.16 6,336,355.16
under construction
(3)Increased of
Enterprise
consolidation
3.Decreased amount of
2,707,181.16 260,173.00 2,967,354.16
the period
（1）Disposal or scrap 2,707,181.16 260,173.00 2,967,354.16
53
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Jingzhu Electricity
Guangfo House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
buildings equipment equipment
Expressway
Guangzhu section other
4.Closing balance 1,460,270,190.66 8,561,844,081.05 5,130,394,315.84 350,773,581.37 114,585,044.58 65,090,261.40 600,142,389.95 16,283,099,864.85
II. Accumulated
depreciation
1.Opening balance 1,270,715,339.72 2,543,582,942.82 2,088,271,612.25 188,217,319.83 39,150,635.60 49,533,318.08 366,319,368.59 6,545,790,536.89
2.Increased amount of
80,762,167.48 200,062,401.90 106,254,460.22 9,594,480.30 5,104,458.57 2,093,968.18 20,830,988.38 424,702,925.03
the period
（1）Withdrawal 80,762,167.48 200,062,401.90 106,254,460.22 9,594,480.30 5,104,458.57 2,093,968.18 20,830,988.38 424,702,925.03
3.Decreased amount of
2,433,963.80 244,951.28 2,678,915.08
the period
（1）Disposal or scrap 2,433,963.80 244,951.28 2,678,915.08
4.Closing balance 1,351,477,507.20 2,743,645,344.72 2,194,526,072.47 197,811,800.13 44,255,094.17 49,193,322.46 386,905,405.69 6,967,814,546.84
III. Impairment provision
1.Opening balance
2.Increased amount ofthe
period
（1）Withdrawal
54
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Jingzhu Electricity
Guangfo House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
buildings equipment equipment
Expressway
Guangzhu section other
3.Decreased amount of
the period
（1）Disposal or scrap
4.Closing balance
IV. Book value
1.Closing book
108,792,683.46 5,818,198,736.33 2,935,868,243.37 152,961,781.24 70,329,950.41 15,896,938.94 213,236,984.26 9,315,285,318.01
value
2.Opening book
189,554,850.94 6,018,261,138.23 3,042,122,703.59 162,556,261.54 75,434,408.98 18,264,124.48 227,004,871.24 9,733,198,359.00
value
⑵Temporarily idle fixed assets：N/A.
⑶Fixed assets through financial leasing：N/A
⑷Tenancy of fixed assets through operating lease：N/A.
⑸Details of fixed assets failed to accomplish certification of property
Items Book value Reason
55
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Transportation and other ancillary facilities
110,873,418.05 Transportation and other ancillary facilities, Not accreditation
12. Project under construction
（1）Project under construction
Year-end balance Year-beginning balance
Items Book balance Provision for Book Net value Book balance Provision for Book Net value
devaluation devaluation
Odd project 33,512,790.35 33,512,790.35 23,624,279.71 23,624,279.71
Total 33,512,790.35 33,512,790.35 23,624,279.71 23,624,279.71
56
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
(2) Changes of significant construction in progress
Amount at year Transferred to fixed
Name Budget Increase at this period Other decrease Balance in year-end
beginning assets
Odd project 23,624,279.71 16,224,865.80 6,336,355.16 33,512,790.35
Total 23,624,279.71 16,224,865.80 6,336,355.16 33,512,790.35
Continued table
Capitalization of
Name Progress of Including：Current amount of Capitalization of
Proportion(%) interest accumulated Source of funds
work capitalization of interest interest ratio（%)
balance
Odd project Self fund
Total
57
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
⑶Provision for impairment of construction projects in the current period：N/A.
58
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
13. Engineering material
Items Balance in year-end Balance in year-begin
Signpost 1,549,556.00 1,549,556.00
Total 1,549,556.00 1,549,556.00
14. Intangible assets
(1) List of intangible assets
Non-patent
Items Land use right Patent right Software Total
right
I. Original price
1.Opening balance 1,311,658.00 21,795,611.43 23,107,269.43
2.Increased amount of the
period 38,400.00 38,400.00
(1) Purchase 38,400.00 38,400.00
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 1,311,658.00 21,834,011.43 23,145,669.43
II.Accumulated amortization
1.Opening balance 1,072,028.50 13,401,099.14 14,473,127.64
2.Increased amount of the
period 75,672.60 1,902,073.79 1,977,746.39
(1) Withdrawal 75,672.60 1,902,073.79 1,977,746.39
3.Decreased amount of the
59
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Non-patent
Items Land use right Patent right Software Total
right
period
（1）Disposal
4.Closing balance 1,147,701.10 15,303,172.93 16,450,874.03
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 163,956.90 6,530,838.50 6,694,795.40
2.Opening book value 239,629.50 8,394,512.29 8,634,141.79
- Intangible assets formed through the company's internal R & D at the end of the
⑵Details of Land use right failed to accomplish certification of property：N/A
15. Development expenses
Increase decrease
Charged to
Beginning Internal Recognized income Ending
Items
balance research and Other as intangible statement Other balance
development assets of the
current
60
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
year
Expressway network toll collection
system based on "Internet" 790,927.27 790,927.27
identification and payment technology
Total 790,927.27 790,927.27
Notes：Description of the beginning of the capital point of time, the specific basis for the capital, as of the end of the
research and development progress, etc.
16. Long-term amortize expenses
Amortized
Balance in Increase in this expenses Balance in
Items year-begin period Other loss Reason
year-end
Renovation fee 3,261,555.68 850,840.62 2,410,715.06
Property
315,414.43 55,661.39 259,753.04
Insurance
Total 3,576,970.11 906,502.01 2,670,468.10
17. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment
3,798.64 949.66 57,266.35 14,316.59
provision
Amortization of intangible
1,332,637.97 333,159.49 1,319,174.98 329,793.74
assets
Timing difference between
18,497,844.96 4,624,461.24 417,147.47 104,286.87
accumulated depreciation
Total 19,834,281.57 4,958,570.39 1,793,588.80 448,397.20
61
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
(2) Deferred income tax liabilities had not been off-set
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Timing difference between
1,167,929,857.49 291,982,464.37 1,190,162,872.83 297,540,718.21
accumulated depreciation
Total 1,167,929,857.49 291,982,464.37 1,190,162,872.83 297,540,718.21
（3）Details of the un-recognized deferred income tax assets
Items Balance in year-end Balance in year-begin
Deductible temporary differences in the formation
91,939,934.08 92,063,913.42
of asset impairment
Deductible loss 1,054,430,798.38 946,615,429.28
Total 1,146,370,732.46 1,038,679,342.70
Notes：Due to the uncertainty existing in whether income tax payable will be prospectively obtained by the parent
company and Guangdong Expressway Technology Investment Co., Ltd. as well as Guangzhou Guangzhu Traffic
Investment Management Co., Ltd, its wholly-owned subsidiaries. Hence, this part can deduct temporary differences,
which isn’t confirmed as deferred income tax assets.
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
Year Balance in year-end Balance in year-begin Remark
2016 139,319,814.49 139,319,814.49
2017 221,573,717.76 218,901,780.38
2018 160,710,175.67 159,775,801.22
2019 227,972,299.53 227,972,299.53
2020 210,272,209.85 200,645,733.66
2021 94,582,581.08
Total 1,054,430,798.38 946,615,429.28
62
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
18. Other Non-current assets
Items Balance in year-end Balance in year-begin
Prepaid land occupation tax 1,176,432.55 1,176,432.55
Prepaid business tax 619,180.58
Prepaid fixed assets engineering fees 1,213,113.39 1,166,835.39
Total 3,008,726.52 2,343,267.94
19. Account payable
（1）List of Account payable
Items Balance in year-end Balance in year-begin
Within 1 year（Including 1 year） 87,995,698.42 123,690,558.76
1-2 year （Including 2 years） 27,325,094.91 34,545,331.99
2-3 year（Including 3 years） 9,795,435.80 1,161,629.15
Over 3 years 13,536,327.68 13,681,564.70
Total 138,652,556.81 173,079,084.60
(2) Notes of the accounts payable aging over one year
Items Balance in year-end Unpaid reason
Foshan Land and resources Bureau 10,996,790.40 Unsettled
Guangdong Expressway Co., Ltd. 8,746,491.18 Unsettled
Guangdong Changda Highway Engineering Co., Ltd. 6,316,565.49 Unsettled
Heshan Land and resources Bureau 5,149,599.60 Unsettled
Guangdong Guanghui Expressway Co., Ltd. 2,375,134.01 Unsettled
Dongguan Leyu Optoelectronic Technology Co.,
2,340,240.00 Unsettled
Ltd.
Guangdong Jingtong Highway Engineering
2,005,731.00 Unsettled
Construction Co., Ltd.
63
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Items Balance in year-end Unpaid reason
Total 37,930,551.68
20. Advance from customers
(1) List of advance from customers
Items Balance in year-end Balance in year-begin
Within 1 year（Including 1 year） 1,525,900.79 1,598,920.90
1-2 years（Including 2 years） 15,914,601.51 15,780,110.00
2-3 years（Including 3 years） 169,767.84
Over 3 years 16,823,942.63 17,531,007.35
Total 34,264,444.93 35,079,806.09
(2) Significant advance from customers aging over one year
Items Closing balance Unpaid/Uncarry over reason
Zhongshan Communication Development Group Road property transfer payments are
15,777,610.00
Co., Ltd. not settled
Land rent is not in the settlement
Guangzhou Huanlong Expressway Co., Ltd. 11,765,613.26
period
Guangdong Province Telecommunications The rental of the communication
Engineering Management Center 3,333,334.92 channel is not in the settlement period
Total 30,876,558.18
⑶The completion of the final construction contract has been completed and the project is not completed：N/A.
21. Payable Employee wage
（1）Payable Employee wage
Items Year-beginning Increase in the Decrease in the Year-end
balance
balance current period current period
I. Short-term compensation 6,616,356.87 128,861,347.37 124,447,857.42 11,029,846.82
64
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Items Year-beginning Increase in the Decrease in the Year-end
balance
balance current period current period
II.Post-employment benefits - defined c
12,586,548.63 11,632,739.84 953,808.79
ontribution plans
III. Dismiss welfare 1,330,759.47 1,330,759.47
IV. Other benefits due within One year
Total 6,616,356.87 142,778,655.47 137,411,356.73 11,983,655.61
（2）Short-term compensation
Items Year-beginning Increase in the Decrease in the Year-end
balance
balance current period current period
1.Wages, bonuses, allowances and
465,063.49 90,047,435.94 86,438,193.01 4,074,306.42
subsidies
2.Employee welfare 9,634,045.50 9,442,430.50 191,615.00
3. Social insurance premiums 6,399,238.41 6,397,503.86 1,734.55
Including ：Medical insurance 5,497,649.71 5,496,117.80 1,531.91
Work injury insurance 232,899.05 232,854.18 44.87
Maternity insurance 560,306.83 560,149.06 157.77
Supplementary medical insurance 108,382.82 108,382.82
4.Public reserves for housing 17,506,305.00 17,501,258.00 5,047.00
5.Union funds and staff education fee 6,151,293.38 3,784,790.25 3,179,949.78 6,756,133.85
6. Short paid absences
7. Short-term profit sharing plan
8.Other 1,489,532.27 1,488,522.27 1,010.00
Total 6,616,356.87 128,861,347.37 124,447,857.42 11,029,846.82
65
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
（3）List of drawing scheme
Balance in Increase in this Payable in this Balance in
Items
year-begin period period year-end
1. Basic old-age insurance premiums 9,834,915.68 9,832,671.98 2,243.70
2.Unemployment insurance 426,357.74 426,268.65 89.09
3.Enterprise annuity payment 2,325,275.21 1,373,799.21 951,476.00
Total 12,586,548.63 11,632,739.84 953,808.79
22. Tax Payable
Items Balance in year-end Balance in year-begin
VAT 7,222,778.08 227,418.75
Business Tax 912,233.33 8,236,565.84
Enterprise Income tax 96,863,242.36 71,941,818.25
Individual Income tax 695,135.96 3,866,695.56
City Construction tax 486,151.04 528,545.91
Land use tax 1,046,006.43 721,116.20
Property tax 965,146.96 961,360.80
Education subjoin 243,055.57 270,706.45
Locality Education subjoin 138,288.73 145,564.14
Stamp tax 3,697,319.40 3,711,221.89
Defend expense 52,746.42 96,769.86
Cultural construction costs 97,378.01 3,864.00
Total 112,419,482.29 90,711,647.65
23..Interest payable
Items Balance in year-end Balance in year-begin
66
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Items Balance in year-end Balance in year-begin
Pay the interest for long-term loans by
6,990,628.96 8,243,286.80
installments.
Interest of company bonds 48,850,277.59 14,900,277.61
Payable interest for short-term borrowings
Interest payable on entrusted loans 37,356,795.08
Preference shares classified as financial
liabilities\ Perpetual debt interest
Total 93,197,701.63 23,143,564.41
- Particulars of significant overdue unpaid interest: N/A
24. Dividends payable
Items Year-end balance Year-Beginning balance
Common stock dividends 12,512,983.60 11,681,423.74
Preference shares classified as equity instrument\
Perpetual debt dividends
Total 12,512,983.60 11,681,423.74
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable RMB11,676,131.49 for more than a year in unpaid dividends to shareholders over the year was m
ainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, did not share ref
orm of shareholders to receive dividends or provide application to receive dividends the bank information is incorrect, res
ulting in failure to pay a dividend or refund.
25.Other accounts payable
(1) Other accounts payable listed by nature of the account
Items Year-end balance Year-Beginning balance
Quality guarantee fund 103,329,986.28 130,119,710.02
Deposit 1,691,963.15 2,279,464.15
Other 41,079,487.60 60,208,064.50
67
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Items Year-end balance Year-Beginning balance
Total 146,101,437.03 192,607,238.67
(2) Other significant accounts payable with aging over one year
Items Closing balance Unpaid/un-carry over reason
Project Quality guarantees/ Bid
Guangdong Changda Engineering Co., Ltd 40,600,665.76
Gruarantees/Deposit
Project Quality guarantees/ Bid Guarantees/
Guangdong Guanyue luqiao Co., Ltd. 15,213,868.44
Performance Guarantees
China Railway 12 Bureau Group Co., ltd. 7,747,805.00 Project Quality guarantees
Jilin Great wall Highway Bridge Construction
4,754,449.50 Project Quality guarantees
Co., Ltd.
China Railway 23 Bureau Group Co., ltd. 3,340,658.50 Project Quality guarantees
Guangdong Nengda Grade Highway Project Quality guarantees/ Bid Guarantees/
2,815,865.57
Maintenance Co., Ltd. Performance Guarantee
Guangdong Jingtong Highway Engineering
2,149,909.76 Project Quality guarantees
Construction Group Co., ltd.
Total 76,623,222.53
26. Non-current liabilities due within 1 year
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 711,680,000.00 312,080,000.00
Bonds payable due within 1 year 997,000,000.00 997,000,000.00
Long-term payable account due within
50,000,000.00 70,000,000.00
1 year
Total 1,758,680,000.00 1,379,080,000.00
Notes：Long-term borrowing rate is due within one year benchmark lending rate over the same period or the same period
the benchmark lending rate to fall 10%, the real interest rate bonds payable due within one year was 6.79%.
68
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
27. Long-term loan
Items Balance year-end Year-beginning balance
Pledge loan 579,000,000.00 749,000,000.00
mortgage loan
Guaranteed loans 1,500,000,000.00 1,500,000,000.00
Credit loans 2,254,760,000.00 2,581,760,000.00
Total 4,333,760,000.00 4,830,760,000.00
Notes ：
Borrowing rate for the same period in the benchmark lending rate or benchmark lending rate over the same period fall 10
%.
28.Long term payroll payable
Items Balance in year-end Balance in year-begin
Non-operating asset payable 2,022,210.11 2,022,210.11
Guangdong Highway Construction Co., Ltd. 917,903,684.98
Ganzhou Gankang Expressway Co., Ltd. 50,000,000.00
Total 2,022,210.11 969,925,895.09
69
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
29. Stock capital
Increase/decrease this time (+ , - )
Items Balance Year-beginning Issuing of new Transferred from Balance year-end
Bonus shares Other Subtotal
share reserves
1.Shares with conditional subscription
1.State-owned shares 409,977,151 409,977,151
2.State –owned legal person shares 21,712,738 499,680,283 499,680,283 521,393,021
3.Other domestic shares 7,865,339 334,008,095 334,008,095 341,873,434
Including：Domestic legal person
7,352,867 341,360,962
shares 334,008,095 334,008,095
Domestic natural person shares 512,472 512,472
4. Foreign shares
Including：Foreign legal person shares
Foreign natural person shares
5. Executives shares 143,524 -8,455 -8,455 135,069
6. Directed, inquiry issued shares
Including：Domestic natural person
Total Shares with conditional
439,698,752 -8,455 833,679,923 1,273,378,675
subscription 833,688,378
70
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Increase/decrease this time (+ , - )
Items Balance Year-beginning Issuing of new Transferred from Balance year-end
Bonus shares Other Subtotal
share reserves
2.Shares with unconditional
subscription
(1). Common shares in RMB 468,668,996 8,455 8,455 468,677,451
(2).foreign shares in domestic market 348,750,000 348,750,000
(3).Foreign shares in overseas market
4.Other
Total Shares with unconditional
817,418,996 8,455 8,455 817,427,451
subscription
3．.Total of capital shares 1,257,117,748 833,688,378 833,688,378 2,090,806,126
Notes 1：In the report period, Mr. Xiao Laijiu was transferred to work, 8,455 unrestricted negotiable shares held by him were transferred into frozen shares for senior executives.
Notes 2： In this report period, 833,688,378 of new shares was issued. See details at 1.Development History of the Company of Note 1. Company’s Basic Information
30. Capital reserves
Items Year-beginning balance Increase in the current period Decrease in the current period Year-end balance
Share premium 1,643,483,493.03 1,824,865,776.82 959,947,479.34 2,508,401,790.51
Other capital reserves 1,378.67 5,173.81 6,552.48
Total 1,643,484,871.70 1,824,870,950.63 959,947,479.34 2,508,408,342.99
71
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
- The situation of change in the current capital reserve is as follows:
-In June 2016, the Company non-publicly issued shares to Guangdong Provincial Expressway Co., Ltd. to add131,419,737.00 RMB of capital reserve, and non-publicly issued shares to
Guangdong Provincial Highway Construction Co., Ltd. to add 393,020,184.26 RMB of capital reserve.
-In June 2016, the Company directionally issued shares to Yadong Fuxing Yalian Investment Co., Ltd., Tibet Yingyue Investment and Management Co., Ltd. and Guangfa Securities Co.,
Ltd. ,where RMB 1,300,425,855.56 was totally added to the capital reserve.
-The Company purchased 25% share rights of Guangdong Fokai Expressway Co., Ltd. from Guangdong Provincial Expressway Co., Ltd., which resulted in RMB 100,602,275.08 of
decrease in the capital reserve.
--In the reason of no payment for fractional dividend required at this period, the capital reserve was added with RMB 5,173.81.
31. Other comprehensive income
Items Year-beginning Amount of current period Year-end balance
72
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
balance Less：
Previously recog
Amount for the p nized in profit or After - tax attrib After - tax attrib
eriod before inco loss in other com Less：Income tax utable to the pare utable to minorit
me tax prehensive inco nt company y shareholders
me
1.Other comprehensive income will be reclassified into
income or loss in the future
Including: Remeasurement of net assets or net liabilities of
defined benefit plans
Share of other comprehensive income of the investee that
cannot be transferred to profit or loss accounted for using the
equity method
2.Other comprehensive income reclassifiable to profit or loss
in subsequent periods
479,920,085.76 -112,922,373.12 -112,922,373.12 366,997,712.64
Including：Share of other comprehensive income of the
investee that cannot be transferred to profit or loss
accounted for using the equity method
Gains and losses from changes in fair value of available for s
ale financial assets 479,920,085.76 -112,922,373.12 -112,922,373.12 366,997,712.64
73
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount of current period
Less：
Previously recog
Year-beginning Amount for the p nized in profit or After - tax attrib After - tax attrib
Items Year-end balance
balance eriod before inco loss in other com Less：Income tax utable to the pare utable to minorit
me tax prehensive inco nt company y shareholders
me
Held-to-maturity investment that is reclassified as
financial assets available for sale
Effective gains(losses) arising from cash flow hedging
instruments
Translation differences of financial statements denominated
Total of other comprehensive income 479,920,085.76 -112,922,373.12 -112,922,373.12 366,997,712.64
Notes：
1. The initial balance and the ending balance refer to other comprehensive incomes in the balance sheet. The initial balance + other comprehensive incomes belong to the parent company after
taxes = the ending balance. The occurrence amount in the period refers to other comprehensive incomes in the profit statement, and the occurrence amount before income tax in the period –
Other comprehensive income recorded in the earlier stage and transferred into the profits and losses in the current period – income taxes = other comprehensive incomes belong to the parent
company after taxes + other comprehensive incomes belong to the minority shareholders after taxes.
2. The company’s headquarters is the investment enterprise, the investment income after the non-taxable investment deducted can generate the tax losses and left to make up for the future
years. Based on the prudence concept, the company will not recognize the deferred income tax assets relevant to the undistributed deficit. For the profits and losses gained from the disposal of
the sellable financial assets in the future are estimated that can’t offset the losses in the taxes, the company shall not pay the income taxes and considerate the influence on the income taxes
caused by the sellable financial assets.
74
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus
295,642,270.96 295,642,270.96
reserve
Discretionary surplus
reserve
reserve fund
Enterprise development
fund
Other
Total 295,642,270.96 295,642,270.96
32. Surplus reserve
33. Retained profits
Items Amount of this period Amount of last period
Retained profit at the beginning of current year 2,179,239,324.01 1,635,592,646.47
Total of Retained profit at the beginning of current year
Retained profit at the beginning of current year 2,179,239,324.01 1,635,592,646.47
Add ：Net profit attributable to owners of the
Company 506,690,071.56 338,837,143.73
Less: Statutory surplus reserve
Discretionary surplus reserve
Common risk preparation
Common stock dividend payable 188,567,662.20 125,711,774.80
Common stock dividends transferred to share capital
Retained profit at the end of this term 2,497,361,733.37 1,848,718,015.41
34.Operation income and operation cost
Items Amount of this period Amount of last period
75
Income Cost Income Cost
Main operation 1,310,524,908.77 547,729,063.75 1,227,025,687.41 516,198,751.53
Other operation 22,967,271.00 11,218,409.33 23,108,455.82 11,473,573.29
Total 1,333,492,179.77 558,947,473.08 1,250,134,143.23 527,672,324.82
35. Business tax and subjoin
Items Amount of this period Amount of last period
Business tax 26,938,514.91 38,652,723.51
Urban construction tax 2,657,718.23 2,496,819.35
Education surcharge 1,233,888.92 1,161,438.74
Defend expense 505,754.16 830,328.00
Locality Education surcharge 821,904.47 774,292.34
Culture Construction fee 125,566.76 27,147.85
Total 32,283,347.45 43,942,749.79
36. Management expenses
Items Amount of this period Amount of last period
Wage 53,433,060.50 60,049,456.51
Depreciation and Amortization 6,862,171.67 7,127,367.93
Low consumables amortization 340,720.10 92,899.70
Travel expenses 256,792.05 265,728.40
Office expenses 2,407,928.04 2,401,307.77
Leased expenses 5,602,580.99 5,428,944.31
The fee for hiring agency 1,688,829.24 1,891,285.74
Consultation expenses 337,026.84 118,000.00
Directorate expenses 32,606.00 391,976.00
Expenses of taxation 2,113,989.57 1,831,640.33
Listing fee 11,057.40 150,810.80
Information cost and maintenance fee 513,040.25 613,400.22
Other 6,188,885.92 4,929,285.55
Total 79,788,688.57 85,292,103.26
76
37.Financial expenses
Items Amount of this period Amount of last period
Interest expenses 202,465,249.45 259,746,725.72
Deposit interest income（-） -12,693,925.94 -3,068,708.78
Exchange Income and loss（Gain-） 533,974.57 499,486.96
Bank commission charge 312,937.13 335,382.47
Total 190,618,235.21 257,512,886.37
38. Asset impairment loss
Items Amount of this period Amount of last period
I. Bad debt loss -177,447.05 71,381.66
II. Inventory falling price loss
III. Impairment loss of financial assets available for
sale
IV. Impairment loss of hold to maturity investment
V. Impairment loss of long term equity investment
VI. Impairment loss of investment real estate
VII. Impairment loss of fixed assets
VIII. Impairment loss of engineering materials
IX. Impairment loss of construction in process
X. Impairment loss of biological production assets
XI. Impairment loss of oil and gas assets
XII. Impairment loss of intangible assets
XIII. Impairment loss of goodwill
XIV. Other
Total -177,447.05 71,381.66
39. Investment income
Items Amount of this period Amount of last period
Long-term equity investment income accounted by 181,732,975.66 152,934,917.52
77
Items Amount of this period Amount of last period
cost method
Long-term equity investment income accounted by
equity method
Investment income from holding the financial asset
of which fair value recognized in profit or loss
Investment income from disposal of financial assets
measured by fair value with changes in fair value
recognized in profit or loss
Investment income from holding the financial asset
available for sale
Investment income received from holding of
45,697,711.66 43,757,419.58
available-for –sale financial assets
The investment income procure from the
available-for-sale financial assets
Investment income from disposal of financial assets
available for sale
Reverse repurchase treasury investment income 854,210.29
Total 227,430,687.32 197,546,547.39
40. Non-Operation income
Recorded in the amount of
Items Amount of this period Amount of last period the non-recurring gains and
losses
Total gains from disposal of
111,175.47 10,682.00 111,175.47
non-current assets
Including：Gains from disposal of
111,175.47 10,682.00 111,175.47
fixed assets
Intangible asset disposal
gains
Disposal gains in
construction projects
Other
78
Recorded in the amount of
Items Amount of this period Amount of last period the non-recurring gains and
losses
Debt restructuring gains
Non monetary assets
exchange gains
Accept donations
Government Subsidy 230,000.00
Surplus profit
Road property claim income 1,683,499.20 5,176,717.51 1,683,499.20
Other income 61,886,470.47 616,079.00 61,886,470.47
Total 63,681,145.14 6,033,478.51 63,681,145.14
Notes:Other gains at this period includes RMB 60,770,000.00 of compensation received from the advanced toll collection
termination in Jiujiang Bridge of G325, and which is counted as ―Cash Related to Other Investment Activities
Received‖into the cash flow statement.
- Government subsidy reckoned into current gains/losses
Amount of current Amount of previous Assets-related/income
Subsidy items
period period –related
Special funds for energy saving and
230,000.00 Related to income
consumption reduction
Total 230,000.00
41. Non-Operation expense
Amount of current period Amount of previous period The amount of
Items non-operating gains &
losses
Total of non-current asset
102,453.65 365,730.09 102,453.65
Disposition loss
Incl: loss of fixed assets
102,453.65 365,730.09 102,453.65
disposition
Loss of intangible assets
disposition
Loss of construction in
process disposition
79
Amount of current period Amount of previous period The amount of
Items non-operating gains &
losses
Loss of debt restructuring
Non monetary assets
exchange loss
External donation
Loss
Loss of assets
Expense of fine 48,735.64
Other 775,874.94 435,017.25 775,874.94
Total 878,328.59 849,482.98 878,328.59
42. Income tax expense
(1) Lists of income tax expense
Items Amount of current period Amount of previous period
Current income tax expense 167,401,247.46 112,688,439.97
Deferred income tax expense -10,068,427.03 4,355,730.83
Total 157,332,820.43 117,044,170.80
(2) Adjustment process of accounting profit and income tax expense
Items Amount of current period
Total profits 762,265,386.38
Current income tax expense accounted by tax and relevant
190,566,346.61
regulations
The impact of different tax rates for subsidiaries -
Influence of income tax before adjustment 93,498.65
Influence of non taxable income -56,981,958.22
Impact of non-deductible costs, expenses and losses 1,040,850.40
Affect the use of deferred tax assets early unconfirmed deductible
-1,031,562.28
losses
The current period does not affect the deferred tax assets recognized 23,645,645.27
80
Items Amount of current period
deductible temporary differences or deductible loss
Income tax expense 157,332,820.43
43. Items of Cash flow statement
(1) Other cash received from business operation
Items Amount of current period Amount of previous period
Newwork received toll income 18,511,470.94
Interest income 12,693,925.94 3,068,708.78
Unit current account 29,313,174.96 30,326,993.39
Total 42,007,100.90 51,907,173.11
（2）Other cash paid related to operating activities
Items Amount of current period Amount of previous period
Network received toll income 16,674,879.00
Management expense 15,716,976.73 15,031,782.05
Unit current account 30,486,151.38 13,405,992.84
Total 62,878,007.11 28,437,774.89
（3）Other Cash received related to investment activities
Items Amount of current period Amount of previous period
Jiujiang bridge to receive compensation 60,770,000.00
Total 60,770,000.00
Items Amount of current period Amount of previous period
Acquisition and construction company
creditor's rights 987,903,684.98
Total 987,903,684.98
81
（4）Other Cash payable related to investment activities
（5）Other Cash received related to Financing activities
Items Amount of current period Amount of previous period
Piecemeal dividend 5,173.81
Total 5,173.81
⑹Other Cash payable related to financing activities
Items Amount of current period Amount of previous period
Underwriting fee 3,000,000.00
Recombination fee 3,451,000.00
Issue registration fee 533,368.84
Total 3,984,368.84 3,000,000.00
44. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Supplement Information Amount of current Amount of previous
period period
I. Adjusting net profit to cash flow from operating activities
Net profit 604,932,565.95 421,329,069.45
Add: Impairment loss provision of assets -177,447.05 71,381.66
Depreciation of fixed assets, oil and gas assets and consumable
424,901,934.49 400,906,051.92
biological assets
Amortization of intangible assets 1,976,826.39 1,918,969.82
Amortization of Long-term deferred expenses 906,502.01 880,672.34
Loss on disposal of fixed assets, intangible assets and other
-8,721.82 355,048.09
long-term deferred assets
Losses on scrapping of fixed assets
Loss from Fair Value Change
Financial cost 202,999,224.02 260,246,212.68
Loss on investment -227,430,687.32 -197,546,547.39
82
Supplement Information Amount of current Amount of previous
period period
Decrease of deferred income tax assets -4,510,173.19 8,904,363.08
Increased of deferred income tax liabilities -5,558,253.84 -4,548,632.25
Decrease of inventories
Decease of operating receivables -9,440,469.79 -87,120,666.37
Increased of operating Payable -54,944,367.72 -1,209,406.58
Other
Net cash flows arising from operating activities 933,646,932.13 804,186,516.45
II. Significant investment and financing activities that without cash
flows:
Debt to capital
Switching Company bonds maturing within one year
fixed assets under financing lease
3．Movement of cash and cash equivalents：
Ending balance of cash 1,677,591,492.62 896,059,842.02
Less: Beginning balance of cash equivalents 1,199,629,276.85 737,462,446.86
Add: End- balance of cash equivalents
Less: Beginning balance of cash equivalents
Less: Beginning balance of cash equivalents 477,962,215.77 158,597,395.16
（2）Net cash paid by the company for the period
N/A
⑶Net cash received from disposal of subsidiaries
N/A
Items
Amount of current Amount of previous
period period
83
I.Cash 1,677,591,492.62 896,059,842.02
Including：Cash at hand 84,796.99 104,452.08
Demand bank deposit 1,676,634,398.25 895,090,674.98
Demand other monetary funds 872,297.38 864,714.96
Demand deposit in the Central Bank
Deposit in peer firms
Loan to peer firms
II. Cash equivalents
Including：Debt instrument matured within three months
III. Cash and cash equivalents as at 30/06/2016 1,677,591,492.62 896,059,842.02
Including ：Restricted cash and cash equivalents in parent
company or subsidiary
⑷Composition of cash and cash equivalents
45. Note of statement of changes in the owner's equity
N/A
46. The assets with the ownership or use right restricted
Up to June 30, 2016, Jingzhu Expressway Guangzhu Section Co., Ltd., the controlling grandchildren company of the
Company, with the toll collection right of Panyu Tangkeng-Zhuhai Jinding section project in Jingzhu expressway, asked
for RMB 729,000,000.00 of loan from Guangzhou Wuyang Branch of ICBC to provide pledge guarantee(of which the
non-current debt balance with 1-year expiration was RMB 150,000,000.00 and the long-term loan balance was RMB
579,000,000.00).
47. Foreign currency monetary items
(1) Foreign currency monetary items
N/A.
(2) Note to oversea entities
84
N/A.
VI. Changes of merge scope
1. Business merger not under same control
N/A
2. Business combination under the same control
Interest Proportion
Name of the Combined Basis that forms Determination Basis of
gained from the Date of Combination
Party Business Combination Combination Date
Business Combination
under the Same Control
Guangzhou Guangzhu Controlled by the same
Gaining the controlling
Traffic Investment 100% ultimate controlling 2016-05-31
right
Management Co., Ltd party
Continued table
Income of the Net Profit of the
Combined Party from Combined Party from Net Profit of the
Name of the Combined Income of the
the Early Combination the Early Combination Combined Party during
Party Combined Party during
Period to Combination Period to Combination the Comparison
the Comparison
Date Date
Guangzhou Guangzhu
Traffic Investment 459,517,071.80 102,025,476.76 525,741,255.64 106,981,773.68
Management Co., Ltd
N/A
3. Counter purchase
N/A
4. The disposal of subsidiary
N/A
5. Other reasons for the changes in combination scope
N/A
6.Other
N/A
85
VII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Registrat Proportion of
Name of the subsidiary operating ion Nature of business shareholding Way of gaining
place place Directly Indirectly
Under the same
Guangdong Fokai Expressway Guangzh Expressway
Foshan 100.00 control business
Co., Ltd. ou Management
combination
Under the same
Guangfo Expressway Co., Guangzho Guangzh Expressway
75.00 control business
Ltd. u ou Management
combination
Investment in
Guangdong Expressway technical
Guangzho Guangzh
Technology Investment Co., industries and 100.00 Investment
u ou
Ltd. provision of
relevant
Guangzhuo Guangzhu Under the same
Guangzho Guangzh Investment
Communication Investment 100.00 control business
u ou management
Management Co., Ltd. combination
Notes: holding proportion in subsidiary different from voting proportion:
N/A
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights
not been controlled investee:
N/A
Significant structure entities and controlling basis in the scope of combination:
N/A
(2) Important Non-wholly-owned Subsidiary
Dividends Equity Balance of
Profit or Loss Owned
Shareholding Distributed to the the Minority
by the Minority
Name of Subsidiary Ratio of Minority Minority Shareholders in
Shareholders in the
Shareholders (%) Shareholders in the the End of the
Current Period
Current Period Period
Guangfo Expressway Co.,
Ltd. 25.00 10,269,943.33 10,266,231.67 82,613,859.53
86
Notes：In this report period, the Company purchased 25% share rights of the minority shareholders’ in Guangdong
Fokai Expressway Co., Ltd., where the minority shareholders enjoyed RMB 31,165,568.59 of profits and losses at the
current period before its purchase
Holding proportion of minority shareholder in subsidiary different from voting proportion:
N/A
(3) The main financial information of significant not wholly owned subsidiary
Name
Name Non current Current Non current
Current assets Total assets Total liabilities
assets Liabilities liabilities
Guangfo
Expressway Co.,
Ltd. 231,731,460.50 144,373,022.22 376,104,482.72 45,649,044.60 45,649,044.60
Continued table
Year-beginning balance
Name Non current Current Non current
Current assets Total assets Total liabilities
assets Liabilities liabilities
Guangfo
Expressway Co.,
Ltd. 139,614,700.50 229,152,252.38 368,766,952.88 38,326,361.41 38,326,361.41
Continued table
Amount of current period
Total
Name Cash flows from
Business income Net profit Comprehensive
operating activities
income
Guangfo Expressway Co., Ltd. 192,164,999.38 41,079,773.35 41,079,773.35 135,089,476.99
Continued table
87
Guangfo Expressway Co., Ltd.
Total
Name Cash flows from
Business income Net profit Comprehensive
operating activities
income
Guangfo Expressway Co., Ltd. 177,462,820.98 34,826,138.70 34,826,138.70 114,226,183.66
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
N/A
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
N/A
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
N/A
88
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting treatment of the
Main operating
Name Registration place Business nature investment of joint venture or
place Directly Indirectly
associated enterprise
Guangzhou, Guangzhou, Expressway
Guangdong Guanghui Expressway Co., Ltd. Equity method
Guangdong Guangdong Management 30.00
Zhaoqing, Zhaoqing, Expressway
Zhaoqing Yuezhao Highway Co., Ltd. Equity method
Guangdong Guangdong Management 25.00
Shenzhen Shenzhen Expressway
Shenzhen Huiyan Expressway Co., Ltd. Equity method
Guangdong Guangdong Management 33.33
Guangdong Guangzhou Expressway
Jingzhu Expressway Guanzhu Equity method
Zhongshan Guangdong Management 15.00
Guangdong Guangzhou Expressway
Ganzhou kangda Expressway Co., Ltd. Equity method
Zhongshan Guangdong Management 30.00
Guangdong Guangzhou Expressway
Ganzhou Gankang Expressway Co., Ltd. Equity method
Zhongshan Guangdong Management 30.00
Guangdong Yueke Technology Petty Loan Co., Guangzhou, Guangzhou, Hande all kinds of small
Equity method
Ltd. Guangdong Guangdong loans 20.00
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
N/A
89
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not have a significant impact:
Guangdong, Jiangzhong Expressway Co., Ltd and Asian Kitchen & Bath City Co.,
Ltd.. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and operating decisions, and therefore deemed to be able to exert significant influ
ence over the investee.
(2) Main financial information of significant joint venture
①The current period.
Name Current assets Including： Non-current assets Total assets Current Non-current Total liabilities Minority Shareholders’ Pro rata share of
Cash and cash liabilities liabilities interest equity the net assets cal
equivalent attributable to culated
shareholders of
the parent
company
Guangdong
Guanghui
Expressway 5,150,254,485.0 1,552,431,132.9
Co., Ltd. 724,707,925.33 410,879,947.58 4,425,546,559.75 8 486,368,797.97 1,066,062,335.00 7 3,597,823,352.11 1,079,347,005.63
Zhaoqing
Yuezhao
Highway Co., 1,970,820,788.4
Ltd. 133,682,204.77 109,080,838.14 1,837,138,583.64 1 126,785,292.13 769,877,686.61 896,662,978.74 1,074,157,809.67 268,539,452.42
90
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Continued table
Adjustment item The book value o The fair valu Business income Financial Income Tax Net profit Net pro Other Total Dividends recei
f equity investme e of the exist expenses expesnses fit from Com Comprehensive ved from associ
Good internal tr Other
nts in joint ventu ence of a pub discon prehe income ates during the
will ading unr
ealized pr res lic offer of e tinued nsive year
Name
ofits quity invest operati inco
ments in join ons me
t ventures
Guanghui
Expressway Co.,
Ltd. 1,079,347,005.63 812,080,255.90 24,546,983.30 127,408,913.87 381,440,117.48 381,440,117.48 105,000,000.00
Zhaoqing
Yuezhao
Highway Co.,
Ltd. 268,539,452.42 291,189,867.43 17,627,552.31 40,562,875.14 126,554,442.44 126,554,442.44 37,376,405.10
② The last period
91
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Name Current assets Including： Non-current assets Total assets Current liabilities Non-current Total liabilities Minorit Shareholders’ Pro rata share of t
Cash and cash liabilities y equity he net assets calc
equivalent interest attributable to ulated
shareholders of
the parent
company
Guangdong
Guanghui
Expressway
Co., Ltd. 766,450,792.34 480,536,440.78 4,560,378,796.63 5,326,829,588.97 817,431,700.70 943,014,653.64 1,760,446,354.34 3,566,383,234.63 1,069,914,970.39
Zhaoqing
Yuezhao
Highway Co.,
Ltd. 198,764,861.77 176,442,107.38 1,899,012,860.07 2,097,777,721.84 304,439,107.94 696,229,626.27 1,000,668,734.21 1,097,108,987.63 274,277,246.91
Continued table
92
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Adjustment item The book value o The fair val Business income Financial Income tax Nep profit Net p Other Total Dividends recei
f equity investme ue of the e exprenses rofit f Com Comprehensive ved from associ
Good internal t Other
nts in joint ventu xistence of rom prehe income ates during the y
will rading un
res a public off disco nsive ear
realized
Name er of equity ntinu inco
profits
investment ed op me
s in joint v eratio
entures ns
Guangdong
Guanghui
Expressway Co.,
Ltd. 1,069,914,970.39 787,594,239.51 32,134,388.46 112,915,289.96 338,745,869.79 338,745,869.79 150,000,000.00
Zhaoqing
Yuezhao
Highway Co.,
Ltd. 274,277,246.91 242,821,675.27 24,434,908.85 20,906,815.95 64,636,934.25 64,636,934.25
(3) Main financial information of significant associated enterprise
①The current period.
93
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Name Current assets Non-current assets Total assets Current liabilities Non-current Total liabilities Minority interest Shareholders’ Pro rata share of th
Liabilities equity attributable e net assets calcula
to shareholders of ted
the parent
company
Shenzhen Huiyan
Expressway Co.,
Ltd. 309,365,014.52 165,949,492.91 475,314,507.43 35,359,201.00 75,800.87 35,435,001.87 439,879,505.56 146,626,501.85
Guangdong
Jiangzhong
Expressway Co.,
Ltd. 76,026,693.67 2,025,910,043.76 2,101,936,737.43 628,993,562.80 280,000,000.00 908,993,562.80 1,192,943,174.63 178,941,476.19
Ganzhou Kangda
Expressway 47,638,350.08 1,569,709,208.36 1,617,347,558.44 41,553,606.36 909,943,990.41 951,497,596.77 665,849,961.67 199,754,988.50
Ganzhou
Gankang
Expressway Co.,
Ltd. 345,972,097.03 1,512,018,396.47 1,857,990,493.50 116,701,642.50 1,045,868,871.92 1,162,570,514.42 695,419,979.08 208,625,993.72
Guangdong
Yueke
Technology Petty
Loan Co., Ltd. 1,341,498,703.86 36,988,725.42 1,378,487,429.28 44,787,869.72 20,757.29 44,808,627.01 294,500,151.55 1,039,178,650.72 207,835,730.14
Continued table
94
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Adjustment item The book value o The fair value of Buinsess incme Net profit Net profi Other Total Dividends receiv
f equity investme the existence of a t from di comprehe comprehensive ed from associat
Goodwill internal trading Other
unrealized pro nts in joint ventu public offer of e scontinu nsive income es during the yea
Name fits res quity investment ed operat income r
s in joint venture ions
s
Shenzhen Huiyan
Expressway Co., Ltd. 146,626,501.85 106,414,977.95 40,699,196.38 40,699,196.38
Guangdong Jiangzhong
Expressway Co., Ltd. 178,941,476.19 205,492,811.90 23,496,720.59 23,496,720.59
Ganzhou Kangda
Expressway 199,754,988.50 118,131,984.73 39,904,996.63 39,904,996.63
Ganzhou Gankang
Expressway Co., Ltd. 208,625,993.72 81,660,482.24 12,866,914.80 12,866,914.80
Guangdong Yueke
Technology Petty Loan
Co., Ltd. 207,835,730.14 46,518,656.73 27,503,000.00 27,503,000.00
③ The last period.
95
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Name Current assets Non-current assets Total assets Current liabilities Non-current Total liabilities Minority interest Shareholders’ Pro rata share of th
Liabilities equity attributable e net assets calcula
to shareholders of ted
the parent
company
Shenzhen Huiyan
Expressway Co.,
Ltd. 252,775,866.87 184,281,067.28 437,056,934.15 37,679,784.93 196,840.04 37,876,624.97 399,180,309.18 133,060,103.06
Guangdong
Jiangzhong
Expressway Co.,
Ltd. 86,007,404.53 2,121,939,802.89 2,207,947,207.42 330,000,753.38 708,500,000.00 1,038,500,753.38 1,169,446,454.04 175,416,968.11
Ganzhou Kangda
Expressway 22,962,621.27 1,593,039,071.93 1,616,001,693.20 67,580,844.11 922,475,884.05 990,056,728.16 625,944,965.04 187,783,489.51
Ganzhou Gankang
Expressway Co.,
Ltd. 316,962,679.74 1,537,143,806.20 1,854,106,485.94 128,345,735.31 1,043,207,686.35 1,171,553,421.66 682,553,064.28 204,765,919.28
Guangdong Yueke
Technology Petty
Loan Co., Ltd. 1,291,749,915.06 40,623,208.62 1,332,373,123.68 14,955,461.26 14,955,461.26 291,938,259.29 1,025,479,403.13 205,095,880.63
Continued table
96
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Adjustment item The book value o The fair valu Business income Net profit Net profit f Other Total Dividends receiv
f equity investme e of the exist rom discon compreh Comprehensive ed from associat
nts in joint ventu ence of a pub tinued oper ensive income es during the yea
Goodwill internal trading Other
Name res lic offer of e ations income r
unrealized pro
quity invest
fits
ments in join
t ventures
Shenzhen Huiyan
Expressway Co., Ltd. 133,060,103.06 96,093,908.58 32,688,059.55 32,688,059.55 3,333,000.00
Guangdong Jiangzhong
Expressway Co., Ltd. 175,416,968.11 202,641,512.94 31,063,757.09 31,063,757.09
Ganzhou Kangda
Expressway 187,783,489.51 118,859,388.33 42,564,485.24 42,564,485.24
Ganzhou Gankang
Expressway Co., Ltd. 204,765,919.28 95,640,534.67 22,225,070.15 22,225,070.15
Guangdong Yueke
Technology Petty Loan
Co., Ltd. 205,095,880.63 23,099,169.06 9,139,346.98 9,139,346.98
97
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
(4) Summary financial information of insignificant joint venture or associated enterprise: N/A
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the Company.
N/A
（6）The excess loss of joint venture or associated enterprise: N/A
(7) The unrecognized commitment related to joint venture investment
N/A
(8) Contingent liabilities related to joint venture or associated enterprise investment
N/A
98
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
4. Significant common operation
N/A
5. Equity of structure entity not including in the scope of consolidated financial statements
N/A
6.Other
N/A
VIII. Risks Related to Financial Instruments
The major financial instruments of the company include monetary capital, accounts receivable and accounts payable.
These financial instruments are primarily related to operating and financing. For the details of the financial instruments,
please refer to the related projects in Notes 5. The risk relevant to these financial instruments and the risk management
policy adopted by the company for reducing these risks are described as below:
1. Credit Risk
The credit risk means that the party of the financial instrument fails to perform the obligations, and the risk of the financial
loss is caused for the other party. The company is mainly facing the customer credit risk due to the credit sale. In order to
reduce the credit risk, the company only makes transactions with the recognized and reputable customers, and carries out
the continuous monitoring of accounts receivable through monitoring the credit of the existing customers and the aging
analysis, in order to ensure the company not facing the risk of bad debts and control the overall credit risk within the
controllable range.
2. Interest Rate Risk
The interest rate risk refers to the fluctuation risk appearing for the fair value of financial instruments or future cash flows
due to the changes in market interest rate. The interest rate risk faced by the company is mainly from the bank borrowings.
Through the establishment of good relations between banks and enterprises, the company makes the reasonable design of
credit range, credit variety and credit limit to guarantee the sufficient credit range of the banks and meet the financing
demands. Shortening the duration of single borrowings and especially stating the prepayment terms is to reasonably reduce
the risk of the interest rate fluctuations.
3. Foreign Exchange Risk
The foreign exchange risk refers to the fluctuation risk appearing for the fair value of financial instruments or future cash
flows due to the changes in foreign exchange rate. The company matches the income and expenditure of foreign currency
as far as possible in order to reduce the foreign exchange risk. During the reporting period, the company has little effect on
the foreign exchange risk due to the short credit term of revenue and expenditure related to the foreign currency.
4. Liquidity Risk
The liquidity risk means that the risk of the shortage of funds occurs when the settlement obligations by the delivery of the
cash or other financial assets are fulfilled by the company. The policy of the company is to ensure the sufficient cash for
repaying the matured debts. The liquidity risk is under the centralized control of Finance department of the company, and
99
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Finance department shall guarantee the company having the sufficient funds to repay the debts under any reasonable
forecast through monitoring the cash balance, the marketable securities available to be cash and the rolling forecast for the
cash flow of the next six months.
5. Other Price Risk
The company holds the equity investment of other listed companies, and the management believes that these investments
facing the market price risk is acceptable. For the equity investment of other listed companies held by the company, please
refer to ―Available-for-Sale Financial Assets in Article 8 of Consolidated Financial Statement in Notes 5 of Financial
Statements‖.
IX. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Closing fair value
Fir value Fir value Fir value
Items
measurement items at measurement measurement Total
level 1 items at level 2 items at level 3
I. Consistent fair value
measurement
（1）
Financial assets measured by fair value with
changes in fair value recognised in profit or
loss
1. Trading financial assets
（1）Debt instrument investment
（2）Equity instrument investment
（3）Derivative financial assets
2.
Financial assets designated at fair value thro
ugh profit or loss
（1）Debt instrument investment
（2）Equity instrument investment
2.Available for sale financial assets 884,558,589.44 884,558,589.44
（1）Debt instrument investment
（2）Equity instrument investment 884,558,589.44 884,558,589.44
100
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Closing fair value
Fir value Fir value Fir value
Items
measurement items at measurement measurement Total
level 1 items at level 2 items at level 3
（3）Other
3.Real Estate Investment
Lease of land use rights
Leased buildings
3.Held and prepared for transfer after apprec
iation of land use rights
4.Biological assets
1.Consumable biological assets
2.Productive biological assets
Total of Consistent fair value measurement 884,558,589.44 884,558,589.44
5. Trading financial Liability
Thereinto：Trading bonds issued
Derivative financial Liability
Other
6.
Financial Liabilities designated at fair value
through profit or loss
Liability Total of Consistent fair value
measurement
II.Non-continuous measurement fair value
（1）Available for sale financial assets
.Assets total of Non-continuous
measurement fair value
.Liability total of Non-continuous
measurement fair value
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of June 30, 2016 of RMB 3.76, the final calculation of fair value was RMB884,558,589.44.
101
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2.
N/A
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3.
N/A
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3.
N/A
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
N/A
7. Changes in the valuation technique in the current period and the reason for change
N/A
8. Fair value of financial assets and liabilities not measured at fair value
N/A
9.Other
N/A
X. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent
Redistricted company of The parent
Registered the company of the
Name Nature capital(RMB’000
address Company's Company’s
0) shareholding vote ratio
ratio
Guangdong No. 27, Equity management,
2,680,000.00 24.55 50.11
communication Baiyun traffic infrastructure
102
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
The parent
Redistricted company of The parent
Registered the company of the
Name Nature capital(RMB’000
address Company's Company’s
0) shareholding vote ratio
ratio
Group Co., Ltd Road,Yuexiu construction and
District , railway project
Guangzhou. operation
-Notes ：
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Li Jing. Date
of establishment: June 23, 2000. As of June 3, 2016,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）.
The finial control of the Company was State owned assets supervision and Administration Commission of Guangdong
Provincial People's Government.
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see Note VII the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
The details Notes VII of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the Company in
reporting period, or form balance due to related party transactions in previous period: N/A
4. Other Related parties
Name Relation with the Company
Guangdong Changda highway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu communication Technology Co.,
Fully owned subsidiary of the parent company
Ltd.
Guangzhou Xinruan Computer Technology Co., Ltd Fully owned subsidiary of the parent company
Guangdong Xinyue Communication Investment Co.,
Fully owned subsidiary of the parent company
Ltd.
Guangdong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
103
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Name Relation with the Company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co., Ltd.
Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shenshan West Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luqiao Consrtuction Development Co.,
Fully owned subsidiary of the parent company
Ltd.
Guangdong Yunwu Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Taishan Coastal Expressway Co., Ltd Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yuzhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Xinlu Adverting Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Gaoda Property Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangshen Zhu Exprssway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong West coastal Expressway Zhuhai section
Fully owned subsidiary of the parent company
Co., Ltd.
Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangle Expressway Co., Ltd. Fully owned subsidiary of the parent company
Zhaoqing Guanghe Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong West coastal Expressway Xinhui Section
Fully owned subsidiary of the parent company
Co., Ltd.
Guangdong Yueyun Communication Co., Ltd. Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Meihe Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Two Expressway Co., Ltd. Fully owned subsidiary of the parent company
Heyuan Helong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yuegan Expressway Co., Ltd. Fully owned subsidiary of the parent company
104
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Name Relation with the Company
Guangdong Yuedong Expressway Industry
Fully owned subsidiary of the parent company
Development Co., Ltd.
Guangdong Yuejia Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co., Ltd. Fully owned subsidiary of the parent company
Guangdong West coastal Expressway Taoshan
Fully owned subsidiary of the parent company
Section Co., Ltd.
Guangdong West coastal Expressway Yangjiang
Fully owned subsidiary of the parent company
Section Co., Ltd.
Guangdong Zhanxu Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Baomao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co., Ltd Fully owned subsidiary of the parent company
Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong West coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Jingzhu Expressway Guangzhu North Group non controlling related party
Section Co., Ltd.
Guangdong Humen Bridge Co., Ltd. Group non controlling related party
Asian Kitchen & Bath City Co., Ltd. Original shares of the company
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
Content of related Amount in current
Related parties Amount in last period
transaction period
1.Business cost
Guangdong Changda highway Co., Ltd. Project fund 5,106,838.40 1,374,275.58
Expansion management
Guangdong Expressway Co., Ltd.
fee 922,029.51
Guangdong Maozhan Expressway Co., Calculate the weight
50,750.00
Ltd. of car rental
Guangzhou Xinruan Computer Technology
Project fund 158,850.00
Co., Ltd.
105
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Content of related Amount in current
Related parties Amount in last period
transaction period
Guangdong Xinyue Communication
Investment Project fund
Co., Ltd. 36,000.00
Guangdong Hualu communication
Project fund
Technology Co., Ltd. 127,500.00
Subtotal 13,245,735.82 2,178,237.65
2. Financial expenses
Guangdong Highway Construction Co.,
Interest 37,356,795.08
Ltd. 38,433,222.35
Ganzhou Gankang Expressway Co.,Ltd. Interest 1,180,876.67 171,012.91
Guangdong Expressway Co., Ltd. Interest 3,604,166.64
Subtotal 38,537,671.75 42,208,401.90
3. Fixed assets
Guangdong Xinyue Communication
Purchasing assets
Investment Co., Ltd 2,114,545.72
Subtotal 2,114,545.72
4.Non-Operating expenses
Guangdong Changda highway Co., Ltd. Project fund 338,293.60 132,231.19
Subtotal 338,293.60 132,231.19
Related transactions on sale goods and receiving services
Amount of current Amount of
Related party Content
period previous period
1.Business income
Commission
Jingzhu Expressway Guangzhu North section Co., Ltd. management 8,190,490.55 8,816,200.01
fee
Guangdong Expressway Co., Ltd. Project fund 2,062,650.00 2,079,150.00
Guangdong Kaiyang Expressway Co., Ltd. Project fund 224,035.68 146,035.68
Guangdong Guangle Expressway Co., Ltd. Project fund 93,000.00
Guangdong Guanghui Expressway Co.,Ltd. Project fund 303,890.00 90,000.00
Guangdong Shenshan West Expressway Co., Ltd. Project fund 75,000.00 108,000.00
106
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount of current Amount of
Related party Content
period previous period
Guangdong Yangmao Expressway Co.,Ltd. Project fund 51,000.00 60,000.00
Guangdong Maozhan Expressway Co.,Ltd. Project fund 91,500.00 48,000.00
Guangdong Yunwu Expressway Co., Ltd. Project fund 66,000.00 69,000.00
Guangdong Taishan Coastal Expressway Co., Ltd Project fund 30,000.00
Yunfo Guangyun Expressway Co., Ltd. Project fund 13,500.00 16,500.00
Guangdong Yuzhan Expressway Co., Ltd. Project fund 85,500.00 51,000.00
Zhaoqing Guanghe Expressway Co., Ltd. Project fund 40,500.00
Zhaoqing Yuezhao Highway Co., Ltd. Project fund 52,500.00
Guangdong West coastal Expressway Taishan Section
Project fund 84,000.00
Co., Ltd.
Guangdong West coastal Expressway Yangjiang
Project fund 30,000.00
Section Co., Ltd.
Guangdong Zhaoyang Expressway Co., Ltd. Project fund 60,000.00
Guangdong Zhanxu Expressway Co., Ltd. Project fund 91,500.00
Guangdong Baomao Expressway Co., Ltd. Project fund 90,000.00
Subtotal 11,571,566.23 11,647,385.69
（2）Related trusteeship/contract
N/A
（3）Information of related lease
The Company was lessor：
Category of lease The lease income The lease income confirmed
Name of lessee
assets confirmed in this year in last year
Advertising lease
Guangdong Xinlu Advertising Co., Ltd. 73,843.20
Advertising lease
Asian Kitchen & Bath City Co., Ltd. 3,492,000.00
Guangdong Tongyi Expressway Service Area
1,857,376.40 1,667,825.50
Service Area Co., Ltd. Lease
107
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Category of lease The lease income The lease income confirmed
Name of lessee
assets confirmed in this year in last year
Subtotal 1,931,219.60 5,159,825.50
- The company was lessee：
Category of leased The lease income
Lessor Category of leased assets
assets confirmed in this year
Guangdong Litong Property Office space
4,410,552.00 4,270,536.00
Investment Co., Ltd
Advertising column le
Guangdong Guanghui Expressway
ase 696,800.00 215,880.00
Co., Ltd.
Zhaoqing Yuezhao Highway Co., Advertising column le
Ltd. ase 118,125.00
Guangdong Highway Construction Office space
77,631.84 41,341.39
Co., Ltd.
Subtotal 5,184,983.84 4,645,882.39
（4）Related-party guarantee
The Company was Guarantor
N/A
The Company was secured party
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Guangdong Communication Group 1,500,000,000.00
Co., Ltd. 2012-09-25 2021-07-25 No
Notes:
Controlling shareholder Guangdong Communication Group Co., Ltd. accepted Pacific Asset Management Co., Ltd.
insurance debt investment plan to provide joint liability guarantee of principal and interest in full and unconditional
irrevocable. The company held Fokai Expressway Co., Ltd. 75% stake in Guangdong Communication Group Co., Ltd. to
provide a counter-guarantee.
108
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
(5) Inter-bank lending of capital of related parties
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Ganzhou Gankang Expressway Co., Ltd. 50,000,000.00 2015-6-10 2017-6-10
(6) Related party asset transfer and debt restructuring
N/A
(7) Rewards for the key management personnel
Items Amount of current period Amount of previous period
Rewards for the key management
personnel 2.2653 million
(8) Other related-party transactions
N/A
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
Items
Amount of current period Amount of previous period
Balance of Deposit 515,980,828.77 200,848,784.54
Interest Income 1,864,277.66 421,232.29
Pricing Principle Refer to deposit interest rate at the corresponding period of Bank of China
- Approved by the ―Reply on Approving Guangdong Provincial Expressway Development Co., Ltd Issue of Share and
Cash to Buy Assets and Raise Matching Funds to Guangdong Provincial Expressway Co., Ltd. ‖of CSRC’s Permission
[2016] No.230, the Company purchased the creditor’s rights with RMB 987,903,684.98 in Jingzhu Expressway Guangzhu
Section Co., Ltd. from Guangdong Provincial Expressway Co., Ltd. on June 21, 2016
-The company’s 29th meeting (Provisional) of the seventh board of directors was convened. The Proposal on
109
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Entrustment of Construction Management of the Renovation and Expansion Project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway was deliberated in the meeting, agreed that Guangdong Provincial Fokai
Expressway Co., Ltd entrusts Guangdong Provincial Highway Construction Co., Ltd with the construction management
of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway, and
handling the related matters of the entrustment of the construction management.
6. Receivables and payables of related parties
（1）Receivables
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 Humen Bridge
18,442,494.66 5,075,745.18
Co.,Ltd.
Guangdong Jingzhu Expressway
Guangzhu North Section Co., 4,173,999.99 12,057,405.80
Ltd.
Guangdong Expressway Co.,
2,180,150.00 117,500.00
Ltd.
Guangdong Xinyue
Communication Investment Co., 909,623.66 1,272,653.03
Ltd.
Guangshen Zhu Expressway
545,760.00 545,760.00
Co., Ltd.
Guangdong Kaiyang
402,449.97 178,414.29
Expressway Co., Ltd.
Guangdong Guanghui
303,890.00 2,247,992.00
Expressway Co., Ltd.
Guangdong West coastal
Expressway Zhuhai Section 184,194.00 251,694.00
Co., Ltd.
110
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Guangdong Jiangzhong
177,372.00 177,372.00
Expressway Co., Ltd.
Guangdong Maozhan
91,500.00
Expressway Co., Ltd.
Guangdong Zhanxu Expressway
91,500.00
Co., Ltd.
Guangdong Baomao
90,000.00
Expressway Co., Ltd.
Guangdong Yuzhan Expressway
85,500.00
Co., Ltd.
Guangdong West coastal
Expressway Taishan Section 84,000.00
Co., Ltd.
Guangdong Shenshan West
75,000.00
Exparessway Co., Ltd.
Guangdong Yunwu Expressway
66,000.00
Co., Ltd.
Guangdong Zhaoyang
60,000.00
Expressway Co., Ltd.
Zhaoqing Yuezhao Highway
52,500.00
Co., Ltd.
Guangdong Yangmao
51,000.00
Expressway Co., Ltd.
Guangdong West coastal
Expressway Xinhui Section Co., 34,110.00 50,610.00
Ltd.
Guangdong West coastal
Expressway Yangjiang Section 30,000.00
Co., Ltd.
Yunfo Guangyun Expressway
13,500.00
Co., Ltd.
Guangdong Xinlu advertising
1,696,300.00
Co., Ltd.
Guangdong Boda Expressway
204,660.00
Co., Ltd.
Guangdong Yueyun 27,288.00
111
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Communication Co., Ltd.
Subtotal 28,144,544.28 23,903,394.30
Prepayable
account
Zhanqing Yuezhao Highway
131,250.00 131,250.00
Co., Ltd.
Guangdong Changda Highway
390,375.10
Engineering Co., Ltd.
Guangdong Litong Property
735,092.00
Investment Co., Ltd.
Guangzhou Xinruan Computer
664,227.74
Technology Co., Ltd.
Subtotal 521,625.10 1,530,569.74
Other
Account
receivable
Guangdong Expressway Co.,
1,703,434.12 2,625,463.63
Ltd.
Guangdong Litong Property
1,435,856.00 1,435,856.00
Investment Co., Ltd.
Guangdong Guanghui
757,376.00 847,048.98
Expressway Co., Ltd
Zhaoqing Yuezhao Highway
447,849.00 456,934.57
Co., Ltd.
Zhaoqing Guanghe Expressway
163,620.63 189,397.72
Co., Ltd.
Guangdong Xinlu advertising
161,131.15 1,240,285.86
Co., Ltd.
Guangshen Zhu Expressway
121,280.00 134,794.38
Co., Ltd.
Guangdong Highway
76,563.00 81,571.71
Construction Co., Ltd.
Guangdong Boda Expressway
45,480.00 45,605.48
Co., Ltd.
Guangdong Kaiyang 33,300.00 74,950.95
112
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Expressway Co., Ltd.
Guangdong West Coastal
Expressway Zhuhai section Co., 20,466.00 20,466.00
Ltd.
Guangdong Jiangzhong
19,708.00 19,842.06
Expressway Co., Ltd.
Guangdong Humen Bridge
16,676.00 -
Co.,Ltd.
Guangdong Luqiao
Constriuction Development Co., 9,334.87 14,801.32
Ltd.
Guangdong Jingzhu Expressway
Guangzhu North Section Co., 6,117.93 -
Ltd.
Guangdong West Coastal
Expressway Xinhui section Co., 3,790.00 3,790.00
Ltd.
Guangdong Yueyun
3,032.00 3,032.00
Communication Co., Ltd.
Guangdong Xinyue
Communication Investment Co., 2,158.60 2,158.60
Ltd.
Guangdong Meihe Expressway
33.41 1,164.09
Co., Ltd.
Guangdong Zhaoyang
11.75 11.75
Expressway Co., Ltd.
Guangdong Yuejia Expressway
4.13 4.13
Co., Ltd.
Guangdong Maozhan
41,208.46
Expressway Co., Ltd.
Guangdong Guangle
37,020.23
Expressway Co., Ltd.
Guangdong Yangmao
20,251.86
Expressway Co., Ltd.
Guangdong Changda Highway
9,126.00
Engineering Co., Ltd.
113
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Yunfo Guangyun Expressway
5,252.64
Co., Ltd.
Guangdong Yunwu Expressway
4,697.95
Co., Ltd.
Guangdong Two Guang
1,117.07
Expressway Co., Ltd.
Heyuan Helong Expressway
778.93
Co., Ltd.
Guangdong Yuekan Expressway
806.64
Co., Ltd.
Guangdong Yuedong
Expressway Industry 664.16
Development Co., Ltd.
Guangdong Hehui Expressway
424.1
Co., Ltd.
Guangdong Shanfen
91.24
Expressway Co., Ltd.
Guangdong Yuzhan Expressway
75.23
Co., Ltd.
Beijing Gelin Enze 4,007,679.91 4,007,679.91
Subtotal 5,027,222.59 11,326,373.65 4,007,679.91
Other Current
Assets
Guangdong Xinyue
Communication Investment Co., 383,658.23 383,658.23
Ltd.
Subtotal 383,658.23 383,658.23
Notes 1：If the related transaction was agreed upon netting agreement, the account receivable for the related party
may list there after set-off.
Notes 2：The stake of Beijing Lin Enze Organic Fertilizer Co., Ltd held by Guangdong Expressway
Technology Investment Co., Ltd-the company’s wholly-owned subsidiary had been
transferred to the outside party in 2015, therefore as of June 30, 2016, the company’s account
receivable pertaining to Beijing Lin Enze Organic Fertilizer Co., Ltd should not be count in related transaction.
114
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
（2）Payables
Amount at year
Name Related party Amount at year end
beginning
Account payable
Guangdong Expressway Co., Ltd 8,746,491.18 8,746,491.18
Guangdong Changda highway Co., Ltd 7,002,365.49 10,625,970.83
Guangdong Xinyue Communication Investment
3,212,474.28 3,284,062.53
Co., Ltd.
Guangdong Guanghui
3,071,934.01 4,692,732.01
Expressway Co., Ltd.
Guangdong Hualu communication
550,871.89 610,090.63
Technology Co., Ltd.
Guangdong East Thinking Management
180,000.00 235,000.00
Technology Development Co., Ltd.
Guangzhou Xinruan Computer Technology Co.,
113,850.00
Ltd
Guangdong Hengjian Expressway Co., Ltd. 32,018.15 32,018.15
Zhaoqing Yuezhao Highway Co., Ltd. 19,500.00 19,500.00
Guangdong Maozhan Expressway Co., Ltd. 150,750.00
Guangdong Humen Bridge Co., Ltd. 61,600.00
Subtotal 22,929,505.00 28,458,215.33
Interest payable
Guangdong Highway Construction Co., Ltd. 37,356,795.08
Ganzhou Gankang Expressway Co., Ltd. 64,883.33 89,578.19
Subtotal 37,421,678.41 89,578.19
Other Payable
115
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount at year
Name Related party Amount at year end
beginning
account
Guangdong Changda highway Co., Ltd 42,582,567.88 48,792,741.75
Guangdong Highway Construction Co., Ltd. 6,361,284.80 1,876,132.24
Guangdong Xinyue Communication Investment
1,922,586.98 1,579,484.21
Co., Ltd.
Guangdong Litong Property Investment Co., Ltd. 1,470,184.00
Guangzhou Xinruan Computer Technology Co.,
534,262.95 404,102.30
Ltd.
Guangdong Communication Development Co.,
405,372.23
Ltd.
Guangdong East Thinking Management
207,542.00 62,700.00
Technology Development Co., Ltd.
Guangdong Jingzhu Expressway Guangzhu North
161,619.45 67,546.00
Section Co., Ltd.
Guangdong Hualu Communication Technology
123,460.39 145,960.39
Co., Ltd.
Guangdong Xinlu Adverting Co., Ltd. 70,000.00 70,000.00
Guangdong Expressway Co., Ltd. 52,317.51 62,596.67
Guangdong Lulutong Co., Ltd. 40,000.00 146,604.23
Guangdong Tongyi Expressway Service Area Co.,
20,000.00 20,000.00
Ltd.
Guangdong Boda Expressway Co., Ltd. 19.41 19.41
Guangdong West Coastal Expressway Co., Ltd. 10.27 1,396.29
Guangdong West Coastal Expressway Zhuhai
3.51 3.51
Section Co., Ltd.
116
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Amount at year
Name Related party Amount at year end
beginning
Guangdong Hengjian Expressway Co., Ltd. 100,000.00
Guangdong Guanghui Expressway Co., Ltd. 6,019.00
Guangdong Shenshan West Expressway Co., Ltd. 454.68
Guangdong Luqiao Construction Development
110.05
Co., Ltd.
Subtotal 52,481,047.38 53,335,870.73
Non current
liabilities due
within one year
Guangdong Highway Construction Co., Ltd. 70,000,000.00
Ganzhou Gankang Expressway Co., Ltd. 50,000,000.00
Subtotal 50,000,000.00 70,000,000.00
Long-term
Payable account
Ganzhou Gankang Expressway Co., Ltd. 50,000,000.00
Guangdong Highway Construction Co., Ltd. 917,903,684.98
Subtotal 967,903,684.98
XI. Stock payment
N/A
XII.Commitments
1.Significant commitments
(1)On June 15, 2016, the Company’s 29th meeting (Provisional) of the seventh board of directors was convened. In
the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltd pertaining to the Renovation
117
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was examined and
approved, agreed that based on the approved total investment amount by relevant government department, then the
company’s subsidiary- Guangdong Fokai Expressway Co., Ltd carries out the investment and construction of the
renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway; the
company increases funding for Guangdong Provincial Fokai Expressway Co., Ltd pertaining to the renovation and
expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway, with the contributed
funds as a proportion of 35% of the total investment amount approved by relevant government department. The afore-said
item had been examined and approved in the first extraordinary general shareholder meeting, however such item still
needs the National Development and Reform Commission’s approval and its project establishment. Currently, the total
investment amount of the project is estimated to be RMB 3.5615 billion, thus the company planned to increase RMB
1.247 billion to Fokai Company. As of June 30, 2016, the accumulative upfront fees of Guangdong Provincial Fokai
Expressway Co., Ltd occurred were RMB 20.1198 million.
2.Contingency
This matter. did not occur in this accounting period. During the reporting period.
XIII. Events after balance sheet date
1.Significant events had not adjusted
On July 7, 2016, the Company’s 31st meeting (Provisional) of the seventh board of directors was convened. In the
meeting, the Proposal on the Company’s Subscription of the Non-publicly Issued A-shares by Guoyuan Securities Co.,Ltd
was examined and approved, agreed that the company shall not invest more than RMB 0.8 billion for the subscription of
the non-publicly issued A-shares by Guoyuan Securities Co.,Ltd. Still, such item needs to be submitted to the general
shareholder meeting for deliberation.
2.Profit distribution
N/A
3.Sales return
N/A
118
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
4.Notes of other significant event after balance sheet date
N/A
XIV.Other significant events
1.The accounting errors correction in previous period
This matter. did not occur in this accounting period. During the reporting period.
2.Debt restructuring
This matter. did not occur in this accounting period. During the reporting period.
3.Replacement of assets
This matter. did not occur in this accounting period. During the reporting period.
4.Pension plan
The company does not disclose the pension plan undisclosed matter should exist.
5.Discontinuing operation
This matter. did not occur in this accounting period. During the reporting period,.
6.Segment information
The company's business for Guangfo Expressway ,Fokai Expressway and Jingzhu Expressway Guangzhu Section toll
collection and maintenance work, the technology industry and provide investment advice, no other nature of the business,
no reportable segment.
7.Other events
The toll collection period of Jiujiang Bridge of No. 325 National Highway owned by Jiujiang Bridge Branch of
Guangdong Fokai Expressway Co., Ltd., a controlled subsidiary of the Company, which was approved by Ministry of
Communications, is 30 years. Up to the present, the accumulative toll collection period is 25 years. According to the
Notice of Relevant Matters Concerning Quickening Special Clearing of Toll Highways in Guangdong Province (Yue Jiao
Ming Dian (2013) No. 56 Document), the rectification measure proposed for Jiujiang Bridge is "toll collection period shall
be no more than 20 years". The result of rectification is "toll collection shall be cancelled due to the expiration of toll
collection period." As required by this document, Jiujiang Bridge will stop toll collection from 24:00 of June 30, 2013.
119
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Jiujiang Bridge is a construction project in which an enterprise under provincial administration invested. As for relevant
problems occurred after rectification, the Provincial State-owned Assets Commission shall coordinate in handling such
problems according to the requirements of the document.
In view of the cancellation of tolls, the relevant assets on Jiujiang Bridge are neither owned or controlled by the
company, nor brings any economic benefits to enterprise in future. According to the provision of Accounting Standards, the
company has made disposal of the assets at the end of 2013, and the relevant losses have been recorded into the annual
expenses outside of operation in 2013.
In May 2014, the company received Guangdong Provincial People's Government Office documents on the opinions
of the compensation for cancellation fee of Jiujiang Bridge as follow. The loss to the company resulted from the early
cancellation of Jiujiang Bridge toll fee will be compensated by Guangdong Communication Group. The provincial SASAC
conjunction with relevant units will examine the compensation amount base on Provincial Legal Office; work with
Provincial Department of Finance to make the compensation arrangements for provincial government to approve.
Approved by the Jiujiang Bridge early termination fee the amount of loss caused to 140,765,667.68 yuan, to be divided
from 2015 included three years of state-owned capital management budget arrangements. In view of the recovery period is
not yet clear, the company intends to recognized operating income when received.
Fokai Expressway Co., Ltd. had received in advance of Jiujiang Bridge cancellation fees compensate for the loss of funds
RMB 20 million and 60.77 million on August 7, 2015 and June 16, 2016, the extra operating income the company has
confirmed.
(2)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii
035# collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway
Company leads the collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10,
2009, Jiujiang Bridge opened to traffic has been restored.
On June 19,2007， The Ministry of Communications, the State Production Safety Supervision and Administration
Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15 "Jiujiang Bridge Collision
Accident", initially determined the causes of the accident are: the incident ship suddenly met heavy fog on the way from
Foshan Gaoming to Sunde, the captain neglected looking out, did not take proper measures and deviated from the main
channel, touched the 325 National Road Jiujiang Bridge the non-navigation bridge pier and caused the collapsion of part of
the Jiujiang bridge. The accident was an unilateral responsibility of the ship.
On July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August
22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping
Company Limited and Yang Xiong to undertake the conpensation 25,587,684 yuan for the loss caused by collapsion of
Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa
No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case was suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial Government had not made
the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the proceeding. In
September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed 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
120
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Maritime Court ruled the suspension of the case. On September 17, 2013, the Guangzhou Maritime Court issued a notice
of civil and eliminate the cause of suspension of proceedings, the court decided to resume the trial. On December 19, 2013,
the Guangzhou Maritime Court opened a court session, has not yet made the first-instance judgment. On March 7, 2014 the
Court made the first instance verdict: the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong
compensated the plaintiff Fokai Expressway Co., Ltd. toll revenue losses of RMB 19,357,500.96; the court dismissed the
plaintiff other aspirations. The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong
Provincial Higher People's Court ruled on June 5, 2014, the case discontinued proceedings.
(3)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
Floaing interest rate shall not exceed the basic interest rate of RMB loan with a term of over five years on the day when
the investment fund of the insureance company is transferred into the Company’s account and the corresponding days of
the future years, which shall be adjusted once each year. The guaranteed base interest rate is 5.6%. The concrete amount
of raised proceeds shall be within maximum limit of investment fund filed with CIRC. The actual amount wholly
transferred to the Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan
between Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the
Company to implement the above-mentioned matters.
The Company was approved to provide counter guarantee to Guangdong Communication Group Co.,Ltd.with 75%
equity of Guangdong Fokai Expressway Co., Ltd. Held by it . as of December 31, 2014, the company has borrowed RMB
1.5 billion.
⑷On June 3, 2016, Guangdong Provincial People's Government released the Reply on the Toll Period of the
Renovation and Expansion Project of Guangfo Expressway (No.156-2016 Yue Gov Document), approved the toll period
of the renovation and expansion project of Guangfo Expressway was from the date opened to traffic to December 7, 2021.
Currently, whether the cooperation period between the company and its partner will be extended has not been determined,
therefore temporarily there shall be no changes in accounting estimates.
⑸On February 5, 2016, the company received the Approval of the Share-Issuing to Parties such as Guangdong
Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by Guangdong Provincial Expressway
Development Co., Ltd(CSRC No.230-2016 Zheng Jian Xu ke) issued from CSRC; the company’s scheme on
share-issuance for purchasing assets and raising matching funds had been examined and approved by the Audit
Committee of CSRC on Verifying and Approving Mergers, Acquisitions and Restructuring of Listed Companies.
During the profit compensation period, in the case that the actual profits of the underlying company were less than
the committed profits, respectively the counterparts of Guangdong Provincial Expressway Co., Ltd and Guangdong
Provincial Highway Construction Co., Ltd shall assume the obligation of compensation for the profit difference according
to their equity proportion of Guangdong Provincial Fokai Expressway Co., Ltd and Guangzhou Guangzhu Traffic
Investment Management Co., Ltd. The profit compensation period is three years from 2016-2018.
Agreed by the company and Guangdong Provincial Expressway Co., Ltd, the profits of Fokai Expressway Co., Ltd
in year-2016, year-2017 and year-2018 by estimation shall accordingly be RMB 250.6973 million, RMB 260.0802
121
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
million and RMB 403.1197 million, with the aggregated non-recurring gains and losses were expected to be RMB
105.5743 million. During the compensation period, in the case that the cumulative net profits of Fokai Expressway Co.,
Ltd in a certain year realized at the end of the year are less than the estimated cumulative net profits of the year, the
company will, at the price of RMB1.0 per share, buy-back the shares calculated in accordance with the agreement for the
purpose of compensation and those shares will be written off, and if the amount of compensation exceeds the
consideration of those shares being bought-back, Guangdong Provincial Expressway Co., Ltd will compensate that part in
cash. At the expiration of the compensation period, if the accumulative actual non-recurring gains and losses (referring to
of toll
the government’s compensation to Guangdong Provincial Fokai Expressway Co., Ltd due to the cancellation
charge of Jiujiang bridge, hereinafter shortly named as ―Jiujiang Bridge Compensation‖) of
Fokai Expressway Co., Ltd were less than the estimated accumulative non-recurring gains and losses, Guangdong
Provincial Expressway Co., Ltd will, upon the basis of the stake proportion held by G Fokai Expressway Co., Ltd before
the major asset restructuring, compensate in cash to the company in accordance with the agreement; If it is after the
expiration of the compensation period, every time when Fokai Expressway Co., Ltd received Jiujiang Bridge
Compensation, the company should refund the corresponding part which had been paid by
Guangdong Provincial Expressway Co., Ltd for the compensation in accordance with the agreement to Guangdong
Provincial Expressway Co., Ltd within 30 working days started from the date G Fokai Expressway Co., Ltd received such
compensation.
Agreed by the company and Guangdong Provincial Highway Construction Co., Ltd, the profits of Guangzhou
Guangzhu Traffic Investment Management Co., Ltd in year-2016, year-2017 and year-2018 by estimation shall
accordingly be RMB 230.3606 million, RMB 263.2329 million and RMB 286.5018 million. During the compensation
period, in the case that the cumulative net profits of Guangzhou Guangzhu Traffic Investment Management Co., Ltd
realized at the end of the year are less than the estimated cumulative net profits of the year, the company will, at the price
of RMB1.0 per share, buy-back the shares held by Guangdong Provincial Highway Construction Co., Ltd with the
quantity being calculated upon the agreement for compensation and those shares will be written off.
⑹On July 15, 2016, the company received the writing notice from Yadong Fuxing Investment Co.,Ltd-one of the
company’s shareholders. Yadong Fuxing had signed the Financing Agreement by Pledging A-shares of Guangdong
Provincial Expressway Development Co.,Ltd with Guotai Junan Securities Co., Ltd, of which Yadong Fuxing pledged
202,429,000 shares that account for 9.68% of the company’s total share capital to Guotai Junan Securities Co., Ltd, which
was mainly for the enterprise financing, with the pledge period started from July 13, 2016.
As of the date this financial report was approved for disclosure, Yadong Fuxing Company holds 202,429,149 A-shares of
the company that account for 9.68% of the company’s total share capital, of which 202,429, 000 shares-9.68% of the
company’s total share capital were pledged, and the pledged shares account for 99.99993% of the total shares of the
company held by Yadong Fuxing.
122
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
XV..Notes s of main items in financial reports of parent company
1.Other account receivable
（1）Other account receivable classified by category
Year-end balance
Book balance Provision for bad debts
Classification
Proportio Proportio Book value
Amount Amount
n(%) n(%)
Other Account receivable with single
major amount and withdrawal bad 32,084,893.35 88.27 32,084,893.35 100.00
debt provision for single item
Other Account receivable withdrawal
bad debt provision by group of 4,265,601.26 11.73 1,658,571.80 38.88 2,607,029.46
credit risk characteristics
Other Account receivable with minor
individual amount but bad debt
provision is provided
Total 36,350,494.61 100.00 33,743,465.15 92.83 2,607,029.46
Continued table
Year-beginning
Book balance Provision for bad debts
Classification
Proportio Proportio Book value
Amount Amount
n(%) n(%)
Other Account receivable with single
major amount and withdrawal bad 32,084,893.35 89.12 32,084,893.35 100.00
debt provision for single item
Other Account receivable withdrawal
bad debt provision by group of 3,915,394.79 10.88 1,658,571.80 42.36 2,256,822.99
credit risk characteristics
Other Account receivable with minor
individual amount but bad debt
provision is provided
Total 36,000,288.14 100.00 33,743,465.15 93.73 2,256,822.99
123
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
- Other Receivable accounts with large amount individually and bad debt provisions were provided
Balance at year-end
Name Provision for
Other receivable Proportion% Reason
bad debts
Kunlun Securities Co., Ltd. 32,084,893.35 32,084,893.35 100.00 Notes 1
Total 32,084,893.35 32,084,893.35
Notes1：
For the balance amount of our company’s secutity trading settlement funds RMB 33,683,774.79 deposited in Kunlun
Securities Co., Ltd., The Xin’Ning Municipal intermediate People’s Court of Qinghai Province had made the judgment in
accordance with the law and declared on November 11, 2006. that Kunlun Securities Co., ltd. was bankrupted for debt
payment . In March of 2007, the liquidating group of Kunlun Securities preliminary judged the relationship between our
company and Kunlun Securities Co., Ltd.is debtor creditor relationship . as Kunlun Securities Co., Ltd.was bankrupted for
debt payment and it is in serious insolvency. Our company had moved the security trading settlement funds deposited in
Kunlun Securities Co., Ltd, to other receivables account for reflection, we also have made full amount provision for had
debts based on conservatism principle. The recovered debt amount in 2008 is RMB485,392.67 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, The recovered debt amount in 2014 is RMB 445,529.50 which had been offset from the provision for
bad debts.
- In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
Balance at year-end
Aging
Other receivable Provision for bad debts Proportion%
Within 1 year 777,842.46
1-2 years
2-3 years
3-4 years
4-5 years
Over 5 years 1,658,571.80 1,658,571.80 100.00
Total 2,436,414.26 1,658,571.80 68.07
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
N/A
124
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
Balance at year-end
Name Other receivable Bad debt Proportion（%） Reason
provision
Guangdong Litong Real estate Investment Co., Lease
1,435,856.00
Ltd. deposit
Beijing Shibang Weilishi Property Management 393,331.00 Deposit
Services Co., Ltd.
Total 1,829,187.00
（2）Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB 0.00, the amount of reversed or recovered bad debt provision in the report
period RMB 0.00.
Significant amount of reversed or recovered bad debt provision:
N/A
（3）Particulars of the actual verification of other accounts receivable during the reporting period
N/A
（4）Other receivables nature of fund classification information
Book balance at year
Nature Book balance at year end
beginning
Securities trading settlement funds balance 32,084,893.35 32,084,893.35
Guarantee deposit 1,829,187.00 1,829,187.00
Other 2,436,414.26 2,086,207.79
Total 36,350,494.61 36,000,288.14
（5）The top five other account receivable classified by debtor at period end
125
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Closing
Closing
Name Nature Aging Proportion% balance of bad
balance
debt provision
Securities trading se Over 5
Kunlun Securities Co., Ltd. 32,084,893.35 88.27 32,084,893.35
ttlement funds years
Heshan Communication Real estate Over 5
Current accounts 1,470,000.00 4.04 1,470,000.00
Development Co., Ltd. years
Guangdong Litong Property Investment
Deposit 1,435,856.00 3-4 years 3.95
Co., Ltd.
Beijing Shibang Weilishi Property
Deposit 393,331.00 3-4 years 1.08
Managerment Servises Co., Ltd.
Within 1
China Securities Settlement Co., Ltd. Current accounts 154,511.77 0.43
Year
Total 35,538,592.12 97.77 33,554,893.35
（6）Account receivable involving government subsidies
N/A
（7）Other account receivable derecognized due to the transfer of financial assets
N/A
（8）Amount of transfer other account receivable and assets and liabilities formed by its continuous
involvement.
N/A
126
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
2. Long- term s equity investment
Year-end balance Year-beginning balance
Items
Book balance Bad debt provision Book value Book balance Bad debt provision Book value
Investment to the
subsidiary 4,665,162,219.66 4,665,162,219.66 2,418,436,569.52 2,418,436,569.52
Investment to joint ventures and
associated enterprises 2,289,671,148.45 2,289,671,148.45 2,635,251,969.72 2,635,251,969.72
Total 6,954,833,368.11 6,954,833,368.11 5,053,688,539.24 5,053,688,539.24
（1）Investment to the subsidiary
Withdrawn
impairment provision Closing balance of
Name Opening balance Increase Decrease Closing balance
in the reporting impairment provision
period
Guangdong Guangfo Expressway
154,982,475.25 154,982,475.25
Co., Ltd.
Guangdong Expressway Technology
95,731,882.42 95,731,882.42
Investment Co., Ltd.
Guangdong Fokai Expressway Co., Ltd. 2,167,722,211.85 968,274,999.00 3,135,997,210.85
Guangzhou Guangzhu Communication 859,345,204.26 859,345,204.26
127
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Withdrawn
impairment provision Closing balance of
Name Opening balance Increase Decrease Closing balance
in the reporting impairment provision
period
Investment Management Co., Ltd.
Jingzhu Expressway Guangzhu Section
Co., Ltd. 419,105,446.88 419,105,446.88
Total 2,418,436,569.52 2,246,725,650.14 4,665,162,219.66
（2）Investment to joint ventures and associated enterprises
Increase /decrease in reporting period
Withdra Closing
Investment
Adjustment wn balance of
Name Opening balance profit and loss Other Declaration of Closing balance
Add Negative of other impairm impairment
recognized equity cash dividends Other
investment investment comprehensiv ent provision
under the changes or profit
e income provisio
equity method
n
I. Joint ventures
Guangdong Guanghui
1,069,914,970.39 114,432,035.24 105,000,000.00 1,079,347,005.63
Expressway Co., Ltd.
ZhaoqingYuezhao 274,277,246.91 31,638,610.61 37,376,405.10 268,539,452.42
128
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Increase /decrease in reporting period
Withdra Closing
Investment
Adjustment wn balance of
Name Opening balance profit and loss Other Declaration of Closing balance
Add Negative of other impairm impairment
recognized equity cash dividends Other
investment investment comprehensiv ent provision
under the changes or profit
e income provisio
equity method
n
Highway Co., Ltd.
Subtotal 1,344,192,217.30 146,070,645.85 142,376,405.10 1,347,886,458.05
II. Associated
enterprises
ShenzhenHuiyan
133,060,103.06 13,566,398.79 146,626,501.85
Expressway Co., Ltd.
Jingzhu Expressway
384,937,391.83 34,168,055.05 -419,105,446.88
Guangzhu
Guangdong Jiangzhong
175,416,968.11 3,524,508.08 178,941,476.19
Expressway Co., Ltd.
Ganzhou Kangda
187,783,489.51 11,971,498.99 199,754,988.50
Expressway Co., Ltd.
Ganzhou Gankang
204,765,919.28 3,860,074.44 208,625,993.72
Expressway Co., Ltd.
129
Guangdong P rovinc ia l Expressway Develop ment Co., Ltd.
Notes to finan cia l state ments
January-Ju ne 2016 In RMB
Increase /decrease in reporting period
Withdra Closing
Investment
Adjustment wn balance of
Name Opening balance profit and loss Other Declaration of Closing balance
Add Negative of other impairm impairment
recognized equity cash dividends Other
investment investment comprehensiv ent provision
under the changes or profit
e income provisio
equity method
n
Guangdong Yueke
Technology Petty Loan 205,095,880.63 2,739,849.51 207,835,730.14
Co., Ltd.
Subtotal 1,291,059,752.42 69,830,384.86 -419,105,446.88 941,784,690.40
Total 2,635,251,969.72 215,901,030.71 142,376,405.10 -419,105,446.88 2,289,671,148.45
130
Gu a n gd o n g P r o vi n c i a l E xp r e s s w a y D e v e l o p m e n t C o . , Lt d .
N o t e s t o fi n a n c i a l s t a t e m e n t s
January-June 2016 In RMB
3. Business income and Business cost
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business
Other business 10,505,002.81 232,106.70 9,327,468.61 232,106.70
Total 10,505,002.81 232,106.70 9,327,468.61 232,106.70
4.Investment income
Items Amount of current period Amount of previous period
Long-term equity investment income accounted by cost
30,798,695.03 27,174,578.08
method
Long-term equity investment income accounted by equity
215,901,030.71 187,979,091.58
method
Investment income arising from disposal of long-term
equity investments
Investment income from holding the financial asset of
which fair value recognized in profit or loss
Investment income from disposal of financial assets
measured by fair value with changes in fair value
recognized in profit or loss
Investment income from holding the financial asset
available for sale
Investment income received from holding of available-for
45,697,711.66
–sale financial assets 43,757,419.58
The investment income procure from the
available-for-sale financial assets
Investment income from disposal of financial assets
available for sale
Reverse repurchase treasury investment income 854,210.29
Total 292,397,437.40 259,765,299.53
XVI. Supplement information
1. Particulars about current non-recurring gains and loss
131
Gu a n gd o n g P r o vi n c i a l E xp r e s s w a y D e v e l o p m e n t C o . , Lt d .
N o t e s t o fi n a n c i a l s t a t e m e n t s
January-June 2016 In RMB
Items Amount Notes
Gains/losses from the disposal of non-current asset 17,214.82
Tax refund or mitigate due to examination-and –approval beyond
power or without official approval document
Governmental subsidy calculated into current gains and loess（while
closely related with the normal business of the Company, excluding
the fixed-amount or fixed-proportion governmental subsidy
according to the unified national standard）
Capital occupancy expense, collected from non-financial enterprises
and recorded in current gains and losses.
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
Gains and losses from exchange of non-monetary assets
Gains and losses from assets under trusted investment or
management
Various provision for impairment of assets withdrew duetoact of
God, such as natural disaster
Gains and losses from debt restructuring
Enterprise reorganization expense(eg.expenditure of staff
replacement and integration change)
Gains and losses of the part arising from transaction in which price is
not fair and exceeding fair value
Current net gains and losses occurred from period-begin to
combination day by subsidiaries resulting from business
combination under common control 102,025,476.76
Gains and losses arising from contingent proceedings irrelevant to
normal operation of the Company
Gains and losses from change of fair values of held-for-transaction
financial assets and financial liabilities except for the effective hedge
business related to normal business of the Company, and investment
income from disposal of transactional financial assets and liabilities
and financial assets available for sale
Switch-back of provision of impairment of account receivable which
132
Gu a n gd o n g P r o vi n c i a l E xp r e s s w a y D e v e l o p m e n t C o . , Lt d .
N o t e s t o fi n a n c i a l s t a t e m e n t s
January-June 2016 In RMB
Items Amount Notes
are treated with separate depreciation test
Gains and losses obtained from external trusted loans
Gains and losses arising from change of fair value of investment real
estate whose follow-up measurement are conducted according to fair
value pattern.
Affect on current gains and losses after an one-time adjustment
according to requirements of laws and regulations regarding to
taxation and accounting
Trust fee obtained from trust operation
Other non-operating income and expenditure except for the
62,934,995.14
aforementioned items
Other non-business income and expenditures other than the above
Influenced amount of income tax 15,736,437.22
Amount of influence of minority interests 223,820.05
Total 149,017,429.45
Notes：Non-operating gains and losses before taxes listed
2. Return on equity (ROE) and earnings per share (EPS)
Weighted average ROE EPS（Yuan/share）
Profit as of reporting period
(%) EPS-basic EPS-diluted
Net profit attributable to common
shareholders of the Company 8.40 0.29 0.29
Net profit attributable to common
shareholders of the Company after
deduction of non-recurring profit
and loss 6.51 0.27 0.27
3. Differences between accounting data under domestic and overseas accounting standards
N/A
133
Gu a n gd o n g P r o vi n c i a l E xp r e s s w a y D e v e l o p m e n t C o . , Lt d .
N o t e s t o fi n a n c i a l s t a t e m e n t s
January-June 2016 In RMB
4. Supplementary materials of changes in accounting policies
N/A
5.Other
N/A
134
