Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Guangdong Provincial Expressway Development Co.,Ltd. The Third Quarterly Report 2017 October 2017 1 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 I. Important Notice The Board of Directors and the Supervisory Committee of the Company and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and or joint. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr.Zheng Renfa, Leader, Mr.Wang Chunhua,General Manager, Mr. Fang Zhi, Chief of the accounting work, Ms.Zhou Fang, Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity and completeness of the financial report enclosed in this report. II. Basic information about the company I.Main financial data and financial index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not. □Yes √No As at the end of the reporting Changed (%)over end of As at the end of last year period prev. year Gross assets(RMB) 16,368,527,561.41 16,072,445,216.59 1.84% Net assets attributable to the shareholders of the listed company 8,788,268,514.86 8,289,020,301.39 6.02% (RMB) Increase/decrease over Between beginning of Changed (%)over Reporting period the same period of last the year to the end of end of prev. year year(%) the report period Operating income(RMB) 822,526,484.69 10.93% 2,262,749,048.43 9.05% Net profit attributable to the shareholders of the listed company 384,780,778.72 32.01% 1,277,628,791.25 60.23% (RMB) Net profit after deducting of non-recurring gain/loss attributable 384,692,818.22 32.27% 1,026,626,418.65 58.50% to the shareholders of listed 2 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 company(RMB) Cash flow generated by business -- -- 1,644,824,158.38 11.42% operation, net(RMB) Basic earning per 0.18 28.57% 0.61 41.86% share(RMB/Share) Diluted gains per 0.18 28.57% 0.61 41.86% share(RMB/Share)(RMB/Share) Weighted average income/asset 4.48% 26.91% 15.03% 26.09% ratio(%) Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB Amount (Year-beginning to Items Notes the end of the report period.) Non-current asset disposal gain/loss(including the write-off part -2,574,727.37 for which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business 237,210.65 and granted under the state’s policies) It receives the compensation 59,995,667.68 yuan for early Other non-business income and expenditures other than the above 61,629,387.84 termination of charging for Jiujiang Bridge in the current period. The department confirms the deferred income tax totaling Less :Influenced amount of income tax -191,717,677.81 206,421,769.46 yuan for losses of previous years in the current period. Influenced amount of minor shareholders’ equity (after tax) 7,176.33 Total 251,002,372.60 -- Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item. □ Applicable √Not applicable None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 3 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders Total number of common with the voting power 66,820 0 shareholders at the period-end recovered at the end of the reporting period(if any) Total preference shareholders with the voting power recovered at the end of the reporting period(if any) Amount of Pledging or freezing Properties of Share tradable shares Shareholder name Quantity Status of the shareholder proportion % with Conditional Quantity shares held Guangdong State-owned legal Communication 24.55% 513,382,595 410,002,853 person Group Co., Ltd. Guangdong Highway State-owned legal 22.30% 466,325,020 466,325,020 Construction Co., person Ltd, Yadong Fuxing Domestic non Yalian Investment State-owned 9.68% 202,429,149 202,429,149 Pledge 202,429,149 Co., Ltd. Legal person Tibet Yingyue Domestic non Investment State-owned 4.84% 101,214,574 101,214,574 Management Co., Legal person Ltd. Guangdong State-owned legal Expressway Co., 2.53% 52,937,491 52,937,491 person Ltd. Guangfa Domestic non Securities Co., State-owned 1.45% 30,364,372 30,364,372 Ltd. Legal person Domestic natural Feng Wuchu 1.03% 21,438,522 person shares Xingye Securities State-owned legal 0.98% 20,520,063 Co., Ltd. person Foreign legal PERSHING LLC 0.90% 18,744,850 person Xinyue Co., Ltd. Foreign legal 0.63% 13,201,086 4 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 person 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 RMB Common 19,700,583 shares Foreign shares Feng Wuchu 21,438,522 placed in 1,737,939 domestic exchange RMB Common Xingye Securities Co., Ltd. 20,520,063 20,520,063 shares Foreign shares placed in PERSHING LLC 18,744,850 18,744,850 domestic exchange Foreign shares placed in Xinyue Co., Ltd. 13,201,086 13,201,086 domestic exchange Khazanah Nasional Berhad-Self RMB Common 10,522,779 10,522,779 fund shares Foreign shares MATTHEWS CHINA DIVIDEND placed in 9,341,406 9,341,406 FUND domestic exchange Foreign shares GUOTAI JUNAN placed in SECURITIES(HONGKONG) 8,853,611 8,853,611 domestic LIMITED exchange Foreign shares PRUSIK UMBRELLA UCITS placed in 8,028,796 8,028,796 FUND PLC domestic exchange ICBC-South preferred value stock RMB Common 8,000,028 8,000,028 Securities Investment Fund shares Explanation on shareholders Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway participating in the margin trading Construction Co., Ltd, Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown 5 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 business whether there is relationship between other shareholders and whether they are persons taking concerted action specified in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed Companies. Participation of top 10 unconditional common share shareholders in Nil securities margin trading (if any) 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. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 6 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 III. Significant Events I. Particular about large-margin change of main accounting statement item and financial index and its reason. √ Applicable □ Not applicable (I)Items of balance sheet as compared with the beginning of this year. 1.Account receivable increased by RMB 51.18 million and 125.80% over the beginning of the year, Mainly in Guangdong Province, Fokai Expressway Co., Ltd. to pay the Fokai Expressway Xiebian to Sanbao section of the expansion of the project due to warranty. The main reason is that Guangfo Expressway Co., Ltd , Fokai Expressway Co., Ltd. And Jingzhu Expressway Guangzhu Section Co., Ltd. have increased their incomes of toll due to the natural increase of traffic volume. 2.Construction in process increased by RMB 106.31 million and 71.23% over the beginning of the year, Mainly due to the increase in the investment in the expansion project of the Sanbao-Shuikou section of Fokai Expressway by Guangdong Fokai Expressway Co., Ltd. 3. Deferred income tax assets Increased by RMB 197.51 million and 1,827.05% over the beginning of the year, The main reason is that the parent company absorbed and consolidated the subsidiary, which is expected to have enough taxable income to make up for the previous years' loss and confirm deferred income tax assets. 4.Account payable decreased by RMB 98 million and 32.73% over the beginning of the year, Mainly due to the subsidiary paid the project progress payment. 5. Taxes payable increased by RMB49.98 million and 46.99% over the beginning of the year, The main reason is that the increase in total profit in the current period resulted in an increase in the amount of enterprise income tax payable. 6.Other payable decreased by RMB 68.07 million and 50.70% over the beginning of the year, Mainly in Guangdong Province, Fokai Expressway Co., Ltd. to pay the Fokai Expressway Xiebian to Sanbao section of the expansion of the project due to warranty. 7.Deferred income tax liabilities increased by RMB87.80 million and 31.53% over the beginning of the year , Mainly are: (1) The parent company confirmed the deferred income tax liability of RMB 108.81 million corresponding to the rise of the fair value of stock of China Everbright Bank Co.,Ltd; (2) Guangdong Fokai Expressway Co., Ltd and Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd shifted back the deferred income tax liability of RMB 21.01 million due to the road asset accounting depreciation bigger than the tax depreciation. (II) Items of income statement as compared with the same period of the previous year 1.Operating income increased by RMB 187.80 million and 9.05% year on year, The main reason for the increase (1)The natural growth of the traffic flow leads to that the toll revenue of Guangfo Expressway Co. Ltd., Guangdong Fokai Expressway Co. Ltd and Jingzhu Expressway Guangzhu Section Co. Ltd increased by RMB 102.37 million;(2)Due to the impact of some vehicle circumventing Guangzhu Section of Jingzhu Expressway because of Bridge Closure of Hong Qili bridge of Fan Zhong Highway (S111), that section of the highway got an increase of traffic volume, so the toll revenue increased by RMB 75 million. 7 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 2. Operating cost decreased by RMB49.27 million and 5.70% year on year, The main reason for the decrease(1) The cooperation period with Guangfo Expressway Co. Ltd will be terminated on July 31, 2017, and Guangfo Expressway adopts the vehicle flow method to draw depreciation, and the depreciation has been fully drawn in the current reporting period, with a decrease of RMB 103.56 million compared to the same period last year;(2)Due to the natural growth of the traffic volume, the depreciation of road asset of Guangdong Fokai Expressway Co. Ltd and Jingzhu Expressway Guangzhu Section Co. Ltd increased by about RMB 58.22 million;(3)(3) There was RMB 3.35 million operating costs of Jingzhu Expressway Guangzhu Section Co., Ltd affected by the decrease of bridge repair and reinforcement expenses. 3.Business tax and surcharge decreased by RMB24.70 million and 70.62% year on year, The main reason for the decrease: Since the full implementation of “replacing business tax with value-added tax” from May 1, 2016, the company’s toll revenue and the relevant income are no longer pay business tax but pay VAT. However, the VAT is not accounted in this accounting item. 4. Financial expenses decreased by RMB 72.25 million and 26.49% year on year,It’s mainly due to the comprehensive impact of repayment of interest-bearing debt, lower interest and the increase in interest income from bank deposits. 5.Income tax expenses decreased by RMB 165.48million and 67.41% year on year, Mainly due to the combined influence of the following factors: (1)The parent company is expected to have sufficient taxable income to make up for the previous year's losses due to the absorption of the consolidated subsidiaries, to recognize the deferred income tax assets, correspondingly reduce the income tax expense of approximately RMB224.06 million; (2) From August 1, 2017 , The parent company to absorb the merger of subsidiaries after the merger tax, reduce tax losses, back to deferred income tax assets, increase income tax costs 16.01 million yuan;(3)As a result of the increase of the total profits of Guangfo Company, Fokai Company and Guangzhu-Dong Company, the income tax expenses increased by RMB 42.57 million. 6.The net profit for the owners of the parent company increased by RMB 480.25 million and 60.23% year on year due to the combined influence of the above factors. (III) Notes of main items of cash flow statement 1. Cash paid for purchasing of merchandise and services Mainly calculates the payment of special projects, upkeep costs and service fee of networking charge-collection etc. The current period increased RMB 23.75 million compared to the same period, an increase of 30.54%, which is mainly due to the increase of payment for projects by Guangfo Expressway Co., Ltd, Guangdong Fokai Expressway Co., Ltd and Jingzhu Expressway Guangzhu Section Co. Ltd in the current period. 2. Cash received from investment retrieving Mainly calculates the obtained cash dividends due to the equity investment. In the current period, it decreased RMB 111.69 million compared to the same period last year, a decrease of 38.16%, Mainly due to that the cash dividends of Guangdong Guanghui Expressway Co. Ltd decreased by RMB 113.89 million year-on-year.The company received the cash dividends of RMB 81.11 million from Guangdong Guanghui Expressway Co., Ltd, received the cash dividends of RMB 55.17 million from Zhaoqing Yuezhao Highway Co., Ltd., received the cash dividends of RMB 23.05 million from China Everbright Bank, received the cash dividends of RMB 11.04 million from Guangdong Jiangzhong Expressway Co., Ltd, received the cash dividends of RMB 9.6 million from Ganzhou Gankang Expressway Co., Ltd.and received the cash dividends of RMB 1 million from Guangdong No.1 Network Partnership Firm (limited partnership). 3. Cash paid for construction of fixed assets, intangible assets and other long-term assets increased by RMB 161.84 million and 170.51% year on year, It’s mainly due to Guangdong Fokai Expressway Co., Ltd’s paying of guarantee money for the reconstruction and extension project of Fokai expressway to Xiebian-Sanbao section and 8 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 the increase in the payment for the reconstruction and extension project of Fokai expressway to Xiebian-Sanbao section. 4 Cash paid for investment decreased by RMB 803.50 million and 100% year on year, The reason is that the company paid cash to buy 25% stake of Guangdong Fokai Expressway Co., Ltd-which was held by Guangdong Expressway Co., Ltd-due to the major asset restructuring in the previous period and there was no such thing in the current period. 5. Payment of other cash related to investment activities increased by RMB 987.90 million and 100% year on year, The reason is that the company paid cash to buy the Guangdong Highway Construction Co., Ltd's creditor's rights to Jingzhu Expressway Guangzhu Section Co., Ltd due to the major asset restructuring in the previous period and there was no such thing in the current period. 6. Cash received from investment decreased by RMB 1633.50 million and 100% year on year, The reason is that the company issued shares to raise matching funds due to the major asset restructuring in the previous period and there was no such thing in the current period. 7.The cash received from obtaining loans decreased by RMB 690 million and 34.53% year on year, Mainly due to the company's current borrowing decrease. 8. Cash paid as dividend, profit, or interests increased by RMB 542.05 million and 137.36% year on year,Mainly due to the increase in the company's cash dividend payment caused by raising the dividend payout ratio. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √Applicable □Not applicable At the end of June 2017, the Company received RMB 59,995,667.68 compensation for the loss due to the ahead-of-time cancelation of toll of Jiujiang Bridge. Such compensation was included in the non operating income, which increased the net profit attributable to the company's shareholders in the period of Jan-Jun 2017 by RMB 44,996,750.76, accounting for 4.49% of the company's 2016-year net profit attributable to the shareholders-which was RMB 1,001,205,945.39. As of now, the Company has received all the compensation money due to the ahead-of-time cancelation of toll of Jiujiang Bridge. Description of the website for disclosing Overview of material matters Date of disclosing provisional announcements Notice of Significant Events of Guangdong Provincial Expressway Development Co., June 26,2013 www.cninfo.com.cn Ltd. Announcement on Progress of Jiujiang Bridge of Guangdong Provincial September 12,2015 www.cninfo.com.cn Expressway Development Co., Ltd. Announcement on Progress of Jiujiang Bridge of Guangdong Provincial July 27,2016 www.cninfo.com.cn Expressway Development Co., Ltd. Announcement on Progress of Jiujiang July 6,2017 www.cninfo.com.cn Bridge of Guangdong Provincial 9 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Expressway Development Co., Ltd. III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √ Not applicable The company has no commitments completed in period and those without completed till lend of the period from actual controller, shareholders, related parties, purchaser and companies. IV.Prediction of Business performance for 2017 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason. □ Applicable √ Not applicable 10 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 V. Investment in securities √ Applicable □Not applicable Mode of Purchase Sale Book value Book value Stock accounti Changes in Cumulative fair amount amount Gain/loss of Security Security Initial investment balance at the balance at the Accounting Source of Abbreviati ng fair value of value changes in in the in the the reporting category code cost beginning of the end of the items the shares on: measure the this period equity this this period reporting period reporting period ment period period Fair Financial Domestic China value assets and foreign 601818 Everbright 51,756,087,876.80 919,846,831.04 32,935,692.16 326,416,234.80 0.00 0.00 23,054,984.51 952,782,523.20 Self fund measure available for stocks Bank ment sale Total 51,756,087,876.80 -- 919,846,831.04 32,935,692.16 326,416,234.80 0.00 0.00 23,054,984.51 952,782,523.20 -- -- Disclosure date for the notice of July 22,2009 approval by the Board (If any) Disclosure date for the notice of approval by shareholders’ August 7,2009 Meeting (If any) 11 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 VI. Investment in derivatives □ Applicable √Not applicable The Company had no derivatives investment in Period. VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period √Applicable □Not applicable Reception time Way of reception Types of visitors Basic index 1. The main content of research:1. the daily operation; 2. the company's financial data analysis;3. development July 18,2017 Onsite investigation Organization strategy; 4. analysis on the industry. 2.Primary data investigation: Public information company regularly reports 1. The main content of research:1. the daily operation; 2. the company's financial data analysis;3. development July 21,2017 Onsite investigation Organization strategy; 4. analysis on the industry. 2.Primary data investigation: Public information company regularly reports 1. The main content of research:1. the daily operation; 2. the company's financial data analysis;3. development August 30,2017 Telephone Organization strategy; 4. analysis on the industry. 2.Primary data investigation: Public information company regularly reports 1. The main content of research:1. the daily operation; 2. the company's financial data analysis;3. development August 30,2017 Telephone Organization strategy; 4. analysis on the industry. 2.Primary data investigation: Public information company regularly reports VIII. External guarantee get out of line □ Applicable √Not applicable The Company has no external guarantee get out of the line in the Period IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period 12 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 X.Implementation of the social Responsibility of taking targeted measures to alleviate poverty in light of local Conditions. In The report third quarter, the company neither carried out the work of taking targeted measures to alleviate poverty in light of local conditions nor has such a plan. 13 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by:Guangdong Provincial Expressway Development Co., Ltd. September 30,2017 In RMB Items At the end of term Beginning of term Current asset: Cash and bank balances 2,980,434,574.99 2,603,279,644.25 Settlement provision Outgoing call loan Financial assets at fair value through profit or loss Derivative financial assets Notes receivable Account receivable 91,856,731.95 40,681,197.01 Advance payments 1,660,931.62 2,860,130.35 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable Dividend receivable Other account receivable 22,542,487.60 25,167,879.53 Securities purchased under agreements to resell Inventories 1,867,867.55 323,888.89 Held-for-sale assets Current portion of non-current assets 55,669.14 55,719.14 Other current asset Total of current assets 3,098,418,262.85 2,672,368,459.17 Non-current assets: Loans and advances Available-for-sale financial assets 1,751,357,624.93 1,718,421,932.77 14 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items At the end of term Beginning of term Held-to-maturity investments Long-term receivable Long term share equity investment 2,377,167,529.91 2,220,805,130.31 Property investment 2,871,811.03 3,219,971.08 Fixed assets 8,668,633,139.67 9,285,823,302.77 Construction in progress 255,556,902.16 149,244,110.30 Engineering material 1,549,556.00 1,549,556.00 Fixed assets pending for disposal Productive biological assets Gas & petrol Intangible assets 3,599,051.15 6,138,294.90 Research and Development Expenditures Goodwill Long-term prepaid expenses 404,213.04 1,763,966.07 Deferred income tax 208,320,314.60 10,810,322.94 Other non-current asset 649,156.07 2,300,170.28 Total of non-current assets 13,270,109,298.56 13,400,076,757.42 Total of assets 16,368,527,561.41 16,072,445,216.59 Current liabilities Short-term bank loan facilities Borrowings from central bank Deposits and placements from other financial institutions Placement from banks and other financial institution Financial liabilities at fair value through profit and loss Derivative financial liabilities Notes payable Account payable 201,413,801.42 299,414,047.07 Advances from customers 15,636,951.71 17,440,023.40 Securities sold under agreement to repurchase Fees and commissions payable 15 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items At the end of term Beginning of term Payroll payable 10,344,053.37 8,840,599.13 Taxes and surcharges payable 156,350,708.84 106,370,898.31 Interest payable 7,861,801.85 8,945,283.52 Dividend payable 14,738,941.49 12,506,777.92 Other payable 66,192,987.78 134,266,141.34 Reinsurance amounts payable Provision of insurance contract Securities brokering Securities underwriting Held-for-sale liabilities Current portion of non-current liabilities 997,610,000.00 957,880,000.00 Other current liability Total of current liability 1,470,149,246.46 1,545,663,770.69 Non-current liabilities: Long-term bank loan facilities 5,045,950,000.00 5,402,780,000.00 Bond payable Including:preferred stock Perpetual capital securities Long-term payable 2,022,210.11 2,022,210.11 Long-term employee benefits payable Grants payable Provisions Deferred income Deferred tax liabilities 366,260,479.41 278,463,647.00 Other non-current liabilities Total non-current liabilities 5,414,232,689.52 5,683,265,857.11 Total of liability 6,884,381,935.98 7,228,929,627.80 Equity Share capital 2,090,806,126.00 2,090,806,126.00 Other equity instrument Including:preferred stock Perpetual capital securities Reserves 2,508,408,342.99 2,508,408,342.99 16 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items At the end of term Beginning of term Less: treasury shares Other comprehensive income 326,416,234.80 402,285,954.24 Specialized reserve Surplus reserves 366,956,549.89 366,956,549.89 General risk reserve Retained earnings 3,495,681,261.18 2,920,563,328.27 Equity contributable to parent company 8,788,268,514.86 8,289,020,301.39 Minority interests 695,877,110.57 554,495,287.40 Total equity 9,484,145,625.43 8,843,515,588.79 Total liabilities and equity 16,368,527,561.41 16,072,445,216.59 Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 2.Parent Company Balance Sheet In RMB Items Year-end balance Year-beginning balance Current asset: Cash and bank balances 2,804,168,822.78 1,795,455,123.88 Financial assets at fair value through profit or loss Derivative financial assets Notes receivable Account receivable 29,681,367.45 Advance payments 977,315.72 2,059,362.84 Interest receivable 54,954,999.49 34,833.33 Dividend receivable 10,000,000.00 24,000,000.00 Other receivable 10,995,936.38 2,350,265.24 Inventories Held-for-sale assets Current portion of non-current assets 85,000,000.00 95,000,000.00 Other current asset Total of current assets 2,995,778,441.82 1,918,899,585.29 17 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Year-end balance Year-beginning balance Non-current assets: Available-for-sale financial assets 1,751,357,624.93 1,718,421,932.77 Held-to-maturity investments Long-term receivable Long term share equity investment 7,546,829,749.58 7,385,967,349.97 Property investment 2,619,672.78 2,967,832.83 Fixed assets 5,917,967,808.66 2,744,611.16 Construction in progress 238,417,593.30 Engineering material Fixed assets pending for disposal Productive biological assets Gas & petrol Intangible assets 1,524,518.88 725,234.38 Research and Development Expenditures Goodwill Long-term prepaid expenses 283,613.51 1,559,874.44 Deferred income tax 208,048,582.44 Other non-current asset 857,903,684.98 847,903,684.98 Total of non-current assets 16,524,952,849.06 9,960,290,520.53 Total of assets 19,520,731,290.88 11,879,190,105.82 Current liabilities Short-term bank loan facilities Financial liabilities at fair value through profit and loss Derivative financial liabilities Notes payable Account payable 179,354,787.84 Advances from customers Payroll payable 3,351,099.78 1,347,078.47 Tax payable 7,085,818.44 1,986,670.18 Interest payable 7,227,385.15 4,469,288.30 Dividend payable 14,738,941.49 12,506,777.92 Other payable 3,837,136,478.41 1,989,088.70 18 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Year-end balance Year-beginning balance Held-for-sale liabilities Current portion of non-current liabilities 917,610,000.00 50,200,000.00 Other current liability 899,838,189.28 836,363,256.69 Total of current liability 5,866,342,700.39 908,862,160.26 Non-current liabilities: Long-term bank loan facilities 4,596,950,000.00 2,999,700,000.00 Bond payable Including:preferred stock Perpetual capital securities Long-term payable 2,022,210.11 2,022,210.11 Long-term employee benefits payable Grants payable Provisions Deferred income Deferred income tax 210,567,399.77 Other non-current liabilities Total of Non-current liabilities 4,809,539,609.88 3,001,722,210.11 Total of liability 10,675,882,310.27 3,910,584,370.37 Equity Share capital 2,090,806,126.00 2,090,806,126.00 Other equity instrument Including:preferred stock Perpetual capital securities Reserves 3,359,791,693.12 3,359,791,693.12 Less: treasury shares Other comprehensive income 326,416,234.80 402,285,954.24 Specialized reserve Surplus reserves 351,112,266.24 351,112,266.24 Retained earnings 2,716,722,660.45 1,764,609,695.85 Total equity 8,844,848,980.61 7,968,605,735.45 Total liabilities and equity 19,520,731,290.88 11,879,190,105.82 Legal Representative: Zhen Renfa General Manager : Wang Chunhua 19 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 3.Consolidated Income statement of the Report period In RMB Items Amount in this period Amount in last period I. Revenue 822,526,484.69 741,459,581.99 Including: business revenue 822,526,484.69 741,459,581.99 Interest income Premiums earned Fees and commissions income II. Total operating cost 391,978,517.38 428,810,522.37 Including: Cost of sales 281,272,481.97 305,283,543.01 Interest expense Fees and commissions expense Cash surrender amount Net expenses of claim settlement Net provisions for insurance contract reserves Policy dividend expenses Reinsurance expenses Business taxes and surcharges 3,382,365.58 2,696,476.12 Selling expenses Administrative expense 40,620,068.97 38,686,992.60 Financial expenses 66,703,600.86 82,143,510.64 Impairment loss on assets Add: Gain from fair-value changes(“-“for loss) Investment income(“-“for loss) 113,907,034.97 109,156,739.38 Including: investment income from 113,907,034.97 109,156,739.38 associates and joint ventures Gain on foreign exchange(“-“for loss) Other income III. Operating profit(“-”for loss) 544,455,002.28 421,805,799.00 Add:Non-operating income 1,121,057.31 1,913,046.35 20 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period Including:Gains from disposal of 35,674.48 non-current assets Less:Non business expenses 1,028,790.51 765,994.15 Incl:Loss from disposal of -54,289.06 69,835.80 non-current assets IV. Profit before tax(“-“for loss) 544,547,269.08 422,952,851.20 Less: Income tax expense 99,958,901.51 88,169,879.72 V. Net profit (“-“for net loss) 444,588,367.57 334,782,971.48 Net profit attributable to the owners of 384,780,778.72 291,476,074.93 parent company Minority interests 59,807,588.85 43,306,896.55 VI. Other comprehensive income after 7,057,648.32 tax Net of profit of other comprehensive income attributable to owners of the 7,057,648.32 parent company (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 7,057,648.32 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 7,057,648.32 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 21 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period ges and losses 5.Translation differences in currency fin ancial statements 6.Other Net after-tax of other comprehensive incom e attributable to Minority shareholders’ equity VII. Total comprehensive income 444,588,367.57 341,840,619.80 Total comprehensive income attributable to the owner of the parent 384,780,778.72 298,533,723.25 company Total comprehensive income 59,807,588.85 43,306,896.55 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.18 0.14 (II)Diluted earnings per share 0.18 0.14 If there are entities merged under common control, their net profit realized before the merger were totaled to RMB***. While it was RMB*** previous period. Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 4.Income statement of the Parent Company of the Report period In RMB Items Amount in this period Amount in last period I.Revenue 243,646,856.46 20,658,732.80 Less:Business cost 107,539,198.57 116,053.35 Business tax and surcharge 1,135,202.88 Selling expenses Administrative expense 16,820,363.64 13,019,284.71 Financial expenses 52,147,873.91 42,042,957.40 Impairment loss on assets Add: Gain from fair-value changes(“-“for loss) 22 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period Investment income(“-“for loss) 501,673,481.88 336,768,519.45 Including: investment income from 113,907,034.97 109,156,739.37 associates and joint ventures Other income II. Operational profit(“-”for loss) 567,677,699.34 302,248,956.79 Add:Non-operating income 279,044.71 Including:Gains from disposal of non-current assets Less:Non-operating expenses Incl:Loss from disposal of non-current assets III. Profit before tax(“-“for loss) 567,956,744.05 302,248,956.79 Less: Income tax expense 8,943,088.28 IV. Net profit (“-“for net loss) 559,013,655.77 302,248,956.79 V.Net of profit of other comprehensive i 7,057,648.32 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 7,057,648.32 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 7,057,648.32 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 23 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period ges and losses 5.Translation differences in currency fin ancial statements 6.Other VI. Total comprehensive income 559,013,655.77 309,306,605.11 VII. Earnings per share: (I)Basic earnings per share (II)Diluted earnings per share Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 5. Consolidated income statement between the beginning of the year and end of the report period In RMB Items Amount in this period Amount in last period I.Revenue 2,262,749,048.43 2,074,951,761.76 Including:Operating income 2,262,749,048.43 2,074,951,761.76 Interest income Insurance gained Commission charge and commission income II. Total operating cost 1,144,258,992.54 1,291,061,746.90 Including:Operating cost 814,962,327.13 864,231,016.09 Interest expense Commission chare and commission expense Insurance discharge payment Net claim amount paid Insurance policy dividend paid Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 10,278,140.64 34,979,823.57 Selling expenses 24 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period Administrative expense 118,313,983.81 119,266,608.44 Financial expenses 200,507,959.88 272,761,745.85 Asset impairment loss 196,581.08 -177,447.05 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 337,337,399.41 336,587,426.70 Incl: investment gains from affiliates 313,283,142.59 290,889,715.03 Gains from currency exchange(“-”for loss) Other income III. Operational profit(“-”for loss) 1,455,827,455.30 1,120,477,441.56 Add:Non-business income 63,420,135.89 65,594,191.49 Incl:Gains from disposal of non-current 146,849.95 assets Less:Non business expenses 4,128,264.77 1,644,322.74 Incl:Loss from disposal of non-current 2,574,727.37 172,289.45 assets IV.Total profit(“-”for loss) 1,515,119,326.42 1,184,427,310.31 Less:Income tax expenses 80,018,819.53 245,502,700.15 V. Net profit(“-”for net loss) 1,435,100,506.89 938,924,610.16 Net profit attributable to the owners of 1,277,628,791.25 797,375,219.22 parent company Minority shareholders’ equity 157,471,715.64 141,549,390.94 VI. Net after-tax of Other -75,869,719.44 -105,864,724.80 comprehensive income Net after-tax of other comprehensive income attribut -75,869,719.44 -105,864,724.80 able to owners of the parent company. (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 25 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period e equity method investee can not be recl assified into profit or loss. (II) Other comprehensive income that will b -75,869,719.44 -105,864,724.80 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 -75,869,719.44 -105,864,724.80 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 ges and losses 5.Translation differences in currency fin ancial statements 6.Other Net after-tax of other comprehensive incom e attributable to Minority shareholders’ equity VII. Total comprehensive income 1,359,230,787.45 833,059,885.36 Total comprehensive income attributable to the owner of the parent 1,201,759,071.81 691,510,494.42 company Total comprehensive income 157,471,715.64 141,549,390.94 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.61 0.43 (II)Diluted earnings per share 0.61 0.43 If there are entities merged under common control, their net profit realized before the merger were totaled to RMB***. While it was RMB*** previous period. Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 26 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I.Revenue 281,871,132.87 31,163,735.61 Less:Business cost 107,771,305.27 348,160.05 Business tax and surcharge 1,180,772.15 361,322.43 Selling expenses Administrative expense 43,378,310.99 44,002,056.60 Financial expenses 119,005,596.12 115,490,339.57 Asset impairment loss Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 1,432,408,272.61 629,165,956.85 Incl: investment gains from affiliates 313,283,142.59 325,057,770.08 Other income II. Operational profit 1,442,943,420.95 500,127,813.81 Add:Non-business income 352,923.13 Incl:Gains from disposal of non-current assets Less:Non business expenses Incl:Loss from disposal of non-current assets III.Total profit 1,443,296,344.08 500,127,813.81 Less:Income tax expenses -211,327,478.86 IV. Net profit 1,654,623,822.94 500,127,813.81 V. Net after-tax of Other comprehensive -75,869,719.44 -105,864,724.80 income (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 27 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period assified into profit or loss. (II) Other comprehensive income that will b -75,869,719.44 -105,864,724.80 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 -75,869,719.44 -105,864,724.80 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 ges and losses 5.Translation differences in currency fin ancial statements 6.Other VI.Total comprehensive income 1,578,754,103.50 394,263,089.01 VII.Earnings per share (I)Basic earnings per share (II)Diluted earnings per share Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 2,269,246,330.63 2,090,706,476.39 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 28 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Net increase of the financial assets that are measured at fair value and whose movement is counted to the current gain and loss 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 67,752,504.28 64,414,941.26 operation Sub-total of cash inflow 2,336,998,834.91 2,155,121,417.65 Cash paid for purchasing of 101,493,279.85 77,747,481.21 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 203,043,259.59 202,712,813.20 Taxes paid 325,795,159.90 312,423,889.98 Other cash paid for business activities 61,842,977.19 86,041,616.58 Sub-total of cash outflow from business 692,174,676.53 678,925,800.97 activities Cash flow generated by business 1,644,824,158.38 1,476,195,616.68 operation, net II.Cash flow generated by investing Cash received from investment 29 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period retrieving Cash received as investment gains 180,974,999.80 292,667,352.01 Net cash retrieved from disposal of fixed assets, intangible assets, and other 138,750.00 656,801.00 long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 60,287,001.01 61,275,293.24 Sub-total of cash inflow due to 241,400,750.81 354,599,446.25 investment activities Cash paid for construction of fixed assets, intangible assets and other 256,756,858.37 94,916,306.81 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 Other cash paid for investment 987,903,684.98 activities Sub-total of cash outflow due to 256,756,858.37 1,886,319,991.79 investment activities Net cash flow generated by investment -15,356,107.56 -1,531,720,545.54 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 1,308,000,000.00 1,998,000,000.00 Cash received from bond placing Other financing –related ash received 5,173.81 Sub-total of cash inflow from financing 1,308,000,000.00 3,631,505,163.11 activities Cash to repay debts 1,625,100,000.00 1,283,400,000.00 Cash paid as dividend, profit, or 936,660,204.59 394,611,135.28 interests Incl: Dividend and profit paid by subsidiaries to minor shareholders 30 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period Other cash paid for financing activities 4,727,368.84 Sub-total of cash outflow due to 2,561,760,204.59 1,682,738,504.12 financing activities Net cash flow generated by financing -1,253,760,204.59 1,948,766,658.99 IV. Influence of exchange rate 1,447,084.51 -523,203.86 alternation on cash and cash equivalents V.Net increase of cash and cash 377,154,930.74 1,892,718,526.27 equivalents Add: balance of cash and cash 2,603,279,644.25 1,199,629,276.85 equivalents at the beginning of term VI ..Balance of cash and cash 2,980,434,574.99 3,092,347,803.12 equivalents at the end of term Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 204,860,249.44 8,146,814.48 rending of services Tax returned Other cash received from business 711,264,490.94 171,178,904.77 operation Sub-total of cash inflow 916,124,740.38 179,325,719.25 Cash paid for purchasing of 6,155,244.77 merchandise and services Cash paid to staffs or paid for staffs 34,315,661.16 27,376,371.77 Taxes paid 4,409,052.82 4,606,170.36 Other cash paid for business activities 285,269,012.07 29,074,861.23 Sub-total of cash outflow from business 330,148,970.82 61,057,403.36 activities Cash flow generated by business 585,975,769.56 118,268,315.89 operation, net II.Cash flow generated by investing 31 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period Cash received from investment retrieving Cash received as investment gains 1,290,045,873.00 551,077,827.12 Net cash retrieved from disposal of fixed assets, intangible assets, and other 128,000.00 long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 10,786,916.66 73,220,416.67 Sub-total of cash inflow due to 1,300,960,789.66 624,298,243.79 investment activities Cash paid for construction of fixed assets, intangible assets 1,413,815.93 394,590.00 and other long-term assets Cash paid as investment 4,500,000.00 803,500,000.00 Net cash received from subsidiaries and other operational units Other cash paid for investment 10,000,000.00 987,903,684.98 activities Sub-total of cash outflow due to 15,913,815.93 1,791,798,274.98 investment activities Net cash flow generated by investment 1,285,046,973.73 -1,167,500,031.19 III.Cash flow generated by financing Cash received as investment 1,633,499,989.30 Cash received as loans 1,000,000,000.00 Cash received from bond placing Other financing –related ash received 5,173.81 Sub-total of cash inflow from 2,633,505,163.11 financing activities Cash to repay debts 50,100,000.00 Cash paid as dividend, profit, or 813,656,128.90 255,146,238.66 interests Other cash paid for financing activities 4,727,368.84 Sub-total of cash outflow due to 863,756,128.90 259,873,607.50 financing activities Net cash flow generated by financing -863,756,128.90 2,373,631,555.61 32 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2017 Items Amount in this period Amount in last period IV. Influence of exchange rate 1,447,084.51 -523,203.86 alternation on cash and cash equivalents V.Net increase of cash and cash 1,008,713,698.90 1,323,876,636.45 equivalents Add: balance of cash and cash 1,795,455,123.88 822,286,507.11 equivalents at the beginning of term VI ..Balance of cash and cash 2,804,168,822.78 2,146,163,143.56 equivalents at the end of term Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang II. Auditor‘s report Whether the Q3 report is audited □ Yes √ No The Q3 Report is not audited. 33