Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Guangdong Provincial Expressway Development Co.,Ltd. The Third Quarterly Report 2018 October 2018 1 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 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 indices Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. √ Yes □No Reasons for retrospective restatements: Accounting policy change Changes of this period over same Same period of last year This period period of last year (%) Before adjustment After adjustment After adjustment Gross assets(Yuan) 16,010,228,283.64 16,523,315,093.72 16,523,315,093.72 -3.11% Net assets attributable to the shareholders of the listed 9,180,965,779.99 9,023,071,118.45 9,023,071,118.45 1.75% company(Yuan) Between beginning Increase/decrease of the year to the Changed (%)over Reporting period over the same period end of the report end of prev. year of last year(%) period Operating revenue (Yuan) 850,769,743.92 3.43% 2,386,633,889.06 5.47% Net profit attributable to the 441,303,002.76 14.69% 1,220,305,249.74 -4.49% 2 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 shareholders of the listed company(Yuan) Net profit after deducting of non-recurring gain/loss 427,205,756.24 11.05% 1,180,123,467.77 14.95% attributable to the shareholders of listed company(Yuan) Cash flow generated by business -- -- 1,434,266,698.31 -12.80% operation, net(Yuan) Basic earning per 0.21 16.67% 0.58 -4.92% share(RMB/Share) Diluted gains per 0.21 16.67% 0.58 -4.92% share(Yuan/Share) Weighted average income/asset 4.91% 0.43% 13.50% -1.53% ratio(%) The reasons for the change of Accounting Policy and the Correction of Accounting errors According to the notice on revision of the format for issuing General Enterprise Financial statements for 2018 (accounting [2018] No. 15) . The company shall adjust its balance sheet and income statement as required by the notice,, According to the notice on revision of the format for issuing General Enterprise Financial statement for 2018(accounting {2018}No.15,The company shall adjust its balance sheet and income statement as required by the Notice. This change in accounting policy,and it is only an internal adjustment of the items on the balance sheet and the income statement, which will not have any impact on the company's total assets, total liabilities, net assets and net profits of the current period and the previous period with no such accounting policy change. Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB yuan Amount (Year-beginning to Items the end of the report Notes period.) Mainly due to the Zhuhai High-tech Zone Management Committee withdrew 4.213 km from the Zhuhai section of the Non-current asset disposal gain/loss(including the write-off part 66,040,603.46 Jingzhu Expressway Guangzhu for which assets impairment provision is made) Section Co., Ltd., and confirmed the profit and loss of assets disposal of RMB 66,231,472. 3 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Amount (Year-beginning to Items the end of the report Notes period.) Single impairment test for impairment of receivables 1,815,828.92 transferred back to preparation Other non-business income and expenditures other than the 1,442,154.37 above Less :Influenced amount of income tax 16,668,724.65 Influenced amount of minor shareholders’ equity (after tax) 12,448,080.13 Total 40,181,781.97 -- 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. 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 number of common Total preference shareholders with the voting power 57,628 0 shareholders at the period-end recovered at the end of the reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing tradable shares Shareholder Properties of Share Quantity with Status of the name shareholder proportion % Quantity Conditional shares held Guangdong Communicatio State-owned 24.55% 513,382,595 410,002,853 n Group Co., legal person Ltd. Guangdong Highway State-owned 22.30% 466,325,020 466,325,020 Construction legal person Co., Ltd, Yadong Fuxing Domestic non 9.68% 202,429,149 202,429,149 Pledge 156,652,500 Yalian State-own 4 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Investment Co., ed Ltd. Legal person Tibet Yingyue Domestic non Investment State-own 4.84% 101,214,574 101,214,574 Management ed Co., Ltd. Legal person Guangdong State-owned Expressway 2.53% 52,937,491 52,937,491 legal person Co., Ltd. Guangfa State-owned Securities Co., 1.45% 30,364,372 30,364,372 legal person Ltd. Domestic Feng Wuchu natural person 1.08% 22,574,543 shares Agricultural Bank of China Domestic non -Jinyuanshun State-own Anfeng Bond 0.79% 16,583,627 ed Securities Legal person Investment fund Agricultural Bank of China -Jingshun Great Wall Domestic non Energy State-own 0.69% 14,381,528 Infrastructure ed Mixed Legal person Securities Investment Fund UBS AG Overseas legal LONDON 0.63% 13,222,231 person BRANCH Shares held by the Top 10 Shareholders of Non-restricted shares Number of the Share type Shareholders’ Names non-restricted shares held Share type Quantity Guangdong Communication Group Co., Ltd. 103,379,742 RMB Common shares 103,379,742 Feng Wuchu 22,574,543 RMB Common shares 20,667,204 5 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Foreign shares placed in 1,907,339 domestic exchange Agricultural Bank of China-Jinyuanshun 16,583,627 RMB Common shares 16,583,627 Anfeng Bond Securities Investment fund Agricultural Bank of China-Jingshun Great Wall Energy Infrastructure Mixed Securities 14,381,528 RMB Common shares 14,381,528 Investment Fund Foreign shares placed in UBS AG LONDON BRANCH 13,222,231 13,222,231 domestic exchange Foreign shares placed in Xinyue Co., Ltd. 13,201,086 13,201,086 domestic exchange Foreign shares placed in PRUSIK UMBRELLA UCITS FUND PLC 12,999,871 12,999,871 domestic exchange Foreign shares placed in MATTHEWS CHINA DIVIDEND FUND 11,207,421 11,207,421 domestic exchange Khazanah Nasional Berhad-Self fund 10,522,779 RMB Common shares 10,522,779 VALUE PARTNERS HIGH-DIVIDEND Foreign shares placed in 9,860,753 9,860,753 STOCKS FUNDS domestic exchange Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Explanation on associated Highway Construction Co., Ltd, Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It relationship or concerted action of is unknown whether there is relationship between other shareholders and whether they are the above shareholders 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 Nil shareholders in 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 2018 III Significant Events I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes √ Applicable □ Not applicable (I)Items of balance sheet\ 1. Advance payment increased by 41.40 million yuan and 929.97% over the beginning of the year, The reason for the increase is the prepaid project payment for the expansion project of Fobao Expressway from Sanbao to Shuikou. 2.Construction in process increased by 475.69 million yuan and 133.60% over the beginning of the year, mainly due to the construction costs of the expansion project of the Sanbao-Shuikou section of the Fokai Expressway. 3.Notes payable and account payable decreased by 92.46 million yuan and 34.64% over the beginning of the year, The main reason is that the company's branch and holding subsidiaries pay the progress of the project. 4. Taxes payable decreased by 306.77 million yuan and 71.57% over the beginning of the year, The main reason is that the company's branch and holding subsidiaries pay the accrued taxes and fees. 5.Other account payable increased by 40.48 million yuan and 33.18% over the beginning of the year, The main reason is that the company borrowed from Guangdong Guanghui Expressway Co., Ltd. for less than one year to entrust loans. 6.Non-current liabilities due 1 year increased by 1243.97 million yuan and 102.08% over the beginning of the year, The main reason is that the company's branch and holding subsidiaries pay the accrued taxes and fees. 7. Long-term borrowing decreased by 1517.45 million yuan and 31.99% over the beginning of the year, The reason is that the company repays the maturity of the borrowings and long-term borrowings to the comprehensive impact of the subject. (II) Items of income statement 1 Assets disposal income The disposal income of assets was 66.37 million yuan during the reporting period, which was the asset disposal income confirmed by the Zhuhai High-tech Zone Management Committee's repurchase of the 4.213 km expressway assets of Jingzhu Expressway Guangzhu Section Co., Ltd. ,Guangao Expressway Zhuhai section. There was no balance in the subject during the same period last year. 2.Non-operation income Non-operation income decreased by 60.16 million yuan and 94.86% year on year,Mainly in the same period of last year, Guangdong Fokai Expressway Co., Ltd. received compensation for the cancellation of the Jiujiang Bridge for RMB 60 million, which was not affected by this factor in the current period. 3.Income tax expenses Income tax expenses Increased by 257.08 million yuan and 321.28% year on year, The reason is mainly because the parent company confirmed the depreciation income tax assets of the previous year in the same period of last year, and reduced the current income tax expenses. There is no such factor in the current period; Fokai Branch, Guangfo Expressway Co., Ltd. and Jingzhu Expressway Guangzhu Section Co., Ltd. profit increased. (III) Notes of main items of cash flow statement 1.Cash paid for purchasing of merchandise and services increased by 40.54 million yuan and 39.95% year on year, The reason is mainly because the construction funds paid by Fokai Branch, Guangfo Expressway Co., Ltd. and 7 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Jingzhu Expressway Guangzhu Section have increased year-on-year. 2. Taxes paid increased by 334.19 million yuan and 102.58% year on year, Mainly due to the subsidiary company pays the income tax accrued at the end of last year. 3. Cash received in return on investments increased by 65.22 million yuan and 36.04% year on year, The main reason is that some shareholding companies sent cash dividends to increase. 4. Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets increased by 228.04 million yuan and 164356.43% year on year, The main reason is that Jingzhu Expressway Guangzhu Section Co., Ltd. received the 4.213 km expressway asset compensation and enterprise income tax compensation for the Zhuhai section of the Guang'ao Expressway transferred from the Zhuhai High-tech Zone Management Committee. 5. Cash paid for construction of fixed assets, intangible assets and other long-term assets increased by 253.16 million yuan and 98.60% year on year, The main reason is that the progress of the reconstruction and expansion project of the Sanbao-Shuikou section paid by Fokai Branch in the current period has increased. 6. Cash paid as dividend, profit, or interests increased by 546.06 million yuan and 58.30% year on year, Mainly due to the increase in cash dividends paid by the company during the period, Jingzhu Expressway Guangzhu Section Co., Ltd. and Guangfo Expressway Co., Ltd. paid minority shareholders' cash dividends increased year-on-year. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √Applicable □Not applicable The Proposal about Guangdong Provincial Expressway Development Co., Ltd’s Merger of Guangdong Fokai Expressway Co., Ltd was examined an approved in the eighth meeting(Temporary) of the eighth session board of directors of the company and was approved in the 2016 annual shareholders' general meeting , agreed to the company's merger and consolidation of the wholly-owned subsidiary-Guangdong Fokai Expressway Co., Ltd. In May 2017, the company set up the Guangdong Provincial Expressway Development Co., Ltd Foshan Branch Company, and completed the relevant industrial and commercial registration procedures. On August 1, 2017, the operation and management of the Fokai Expressway was officially transferred to Fokai Branch Company from Fokai Company. In August 2018, Guangdong Fokai Expressway Co.,Ltd. completed the industrial and commercial cancellation work, and obtained the "Notice of Approval for Cancellation of Registration" and the "Notice of Permission for Cancellation of Registration". From September 2018, Guangdong Fokai Expressway Co.,Ltd will no longer be included in the consolidated statement. Description of provisional Date of disclosing provisional Description of the website for disclosing announcement announcement provisional announcements Announcement of Resolutions of the 8th (Provisional) Meeting of the Eighth April 8,2017 www.cninfo.com.cn Board of Directors Announcement of Merger April 8,2017 www.cninfo.com.cn Announcement of Resolutions of the April 29,2017 www.cninfo.com.cn Shareholders' General Meeting of 2016 Announcement on the progress of major May 4,2017 www.cninfo.com.cn 8 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Events 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. Anticipation of Business Performance of 2018 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 9 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 V. Investment in securities √ Applicable □Not applicable In RMB yuan Mode Purcha Sale Book value Securi of Book value se amou Acco Stock Initial Changes in fair Cumulative fair Gain/loss of balance at the Source ty Securit account balance at the amoun nt in untin Abbrevi investment value of the value changes in the reporting end of the of the categ y code ing beginning of the t in the the g ation: cost this period equity period reporting shares ory measure reporting period this this items period ment period period Finan Dome cial stic China assets and 517,560,876 Self 601818 Everbrig FVM 952,782,523.20 -32,935,692.16 402,285,954.24 0.00 0.00 42,581,144.86 919,846,831.04 availa foreig .80 fund ht Bank ble n for stocks sale 517,560,876 Total -- 952,782,523.20 -32,935,692.16 402,285,954.24 0.00 0.00 42,581,144.86 919,846,831.04 -- -- .80 Disclosure date for the notice of approval by the Board (If July 22,2009 any) Disclosure date for the notice of approval by shareholders’ August 7,2009 Meeting (If any) 10 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 VI. Entrusted Financial Management □ Applicable √Not applicable There is no Entrusted Financial Management during the report period. VII. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VIII. The registration form of acceptance of investigation, communication and interview in the report period for future reference √ 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 23,2018 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 28,2018 Onsite investigation Organization strategy; 4. analysis on the industry. 2.Primary data investigation: Public information company regularly reports IX. External guarantee get out of line □ Applicable √Not applicable The Company has no external guarantee get out of the line in the Period X. 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 11 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by:Guangdong Provincial Expressway Development Co., Ltd. September 30,2018 In RMB yuan Items Year-end balance Year-beginning balance Current asset: Monetary fund 2,053,744,068.06 2,363,042,700.42 Settlement provision Outgoing call loan Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable and account receivable 97,539,024.14 92,642,625.45 Including: Notes receivable Account receivable 97,539,024.14 92,642,625.45 Advance payment 45,853,206.46 4,451,901.75 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 17,810,306.93 15,415,512.07 Repurchasing of financial assets Inventories 127,187.68 Assets held for sales Non-current asset due in 1 year 51,745.32 55,669.14 Other current asset 76,576.08 Total of current assets 2,215,125,538.59 2,475,684,984.91 Non-current assets: Loans and payment on other ’ s behalf disbursed Available for sale of financial assets 1,718,421,932.77 1,751,357,624.93 12 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Year-end balance Year-beginning balance Expired investment in possess Long-term receivable Long term share equity investment 3,214,982,779.23 3,047,275,000.00 Property investment 3,713,453.23 2,755,757.68 Fixed assets 7,736,659,064.50 8,505,434,890.71 Construction in progress 833,301,812.32 357,612,211.95 Production physical assets Gas & petrol Intangible assets 5,196,142.08 7,096,435.17 development expenses Goodwill Long-germ expenses to be amortized 9,276.73 92,768.83 Deferred income tax asset 246,707,469.99 335,299,025.28 Other non-current asset 36,110,814.20 40,706,394.26 Total of non-current assets 13,795,102,745.05 14,047,630,108.81 Total of assets 16,010,228,283.64 16,523,315,093.72 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 Notes payable and account payable 174,476,639.63 266,934,026.99 Advance receipts 14,450,419.48 14,856,113.90 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 17,518,602.30 11,334,182.16 Tax payable 121,874,371.46 428,647,394.29 Other account payable 162,474,009.20 121,998,386.07 Reinsurance fee payable Insurance contract provision 13 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Year-end balance Year-beginning balance Entrusted trading of securities Entrusted selling of securities Liabilities held for sales Non-current liability due in 1 year 2,462,580,000.00 1,218,610,000.00 Other current liability Total of current liability 2,953,374,042.07 2,062,380,103.41 Non-current liabilities: Long-term loan 3,226,720,000.00 4,744,170,000.00 Bond payable Including:preferred stock Sustainable debt Long-term payable 2,022,210.11 2,022,210.11 Long-term payable employee’s remuneration Expected liabilities Deferred income Deferred income tax liability 226,424,569.23 260,632,098.75 Other non-current liabilities Total non-current liabilities 3,455,166,779.34 5,006,824,308.86 Total of liability 6,408,540,821.41 7,069,204,412.27 Owners’ equity Share capital 2,090,806,126.00 2,090,806,126.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 2,536,774,965.31 2,510,069,749.76 Less:Shares in stock Other comprehensive income 296,095,920.18 327,263,824.17 Special reserves Surplus reserves 544,821,130.03 544,821,130.03 Common risk provision Retained profit 3,712,467,638.47 3,550,110,288.49 Total of owner’s equity belong to the 9,180,965,779.99 9,023,071,118.45 parent company 14 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Year-end balance Year-beginning balance Minority shareholders’ equity 420,721,682.24 431,039,563.00 Total of owners’ equity 9,601,687,462.23 9,454,110,681.45 Total of liabilities and owners’ equity 16,010,228,283.64 16,523,315,093.72 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 yuan Items Year-end balance Year-beginning balance Current asset: Monetary fund 2,035,470,942.10 2,130,475,892.67 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable and account receivable 22,091,269.52 19,001,899.29 Including:Notes receivable Account receivable 22,091,269.52 19,001,899.29 Advance payment 44,806,954.96 1,520,014.23 Other account receivable 59,465,215.33 17,368,588.12 Inventories Assets held for sales Non-current asset due in 1 year 80,000,000.00 80,000,000.00 Other current asset Total of current assets 2,241,834,381.91 2,248,366,394.31 Non-current assets: Available for sale of financial assets 1,718,421,932.77 1,751,357,624.93 Expired investment in possess Long-term receivable Long term share equity investment 4,748,647,788.04 8,216,937,219.66 Property investment 3,461,314.98 2,503,619.43 Fixed assets 5,374,535,335.59 5,784,192,105.58 15 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Year-end balance Year-beginning balance Construction in progress 829,757,760.32 353,858,869.95 Production physical assets Gas & petrol Intangible assets 1,939,038.37 2,856,323.67 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 246,529,217.91 335,050,091.31 Other non-current asset 822,918,014.67 827,775,329.66 Total of non-current assets 13,746,210,402.65 17,274,531,184.19 Total of assets 15,988,044,784.56 19,522,897,578.50 Current liabilities Short-term loans Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable and account payable 147,803,724.18 200,070,986.17 Advance receipts Employees’ wage payable 4,451,845.70 5,419,848.48 Tax payable 9,041,815.34 12,893,797.03 Other account payable 127,027,603.77 4,503,328,739.76 Classified as held for sale debt Non-current liability due in 1 year 2,319,280,000.00 968,610,000.00 Other current liability 893,038,780.15 644,691,748.64 Total of current liability 3,500,643,769.14 6,335,015,120.08 Non-current liabilities: Long-term loan 2,947,670,000.00 4,545,170,000.00 Bond payable Including:preferred stock Sustainable debt Long-term payable 2,022,210.11 2,022,210.11 Long-term payable to employees Expected liabilities 16 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Year-end balance Year-beginning balance Deferred income Deferred income tax liability 100,571,488.56 108,805,411.60 Other non-current liabilities Total of Non-current liabilities 3,050,263,698.67 4,655,997,621.71 Total of liability 6,550,907,467.81 10,991,012,741.79 Owners’ equity Share capital 2,090,806,126.00 2,090,806,126.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 2,948,663,196.93 2,921,957,981.38 Less:Shares in stock Other comprehensive income 296,095,920.18 327,263,824.17 Special reserves Surplus reserves 528,976,846.38 528,976,846.38 Retained profit 3,572,595,227.26 2,662,880,058.78 Total of owners’ equity 9,437,137,316.75 8,531,884,836.71 Total of liabilities and owners’ equity 15,988,044,784.56 19,522,897,578.50 Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 3.Consolidated Income statement of the Report period In RMB yuan Items Amount in this period Amount in last period I. Total revenue 850,769,743.92 822,526,484.69 Incl:Business income 850,769,743.92 822,526,484.69 Interest income Insurance fee earned Fee and commission received II. Total business cost 374,224,642.79 391,978,517.38 Incl:Business cost 283,488,989.77 281,272,481.97 Interest expenses 17 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Fee and commission paid Insurance discharge payment Net claim amount paid Net amount provided as insurance contract reserves Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 3,887,775.99 3,382,365.58 Sales expense Administrative expense 32,160,291.46 36,843,648.73 R & D expenses 541,264.57 3,776,420.24 Financial expenses 55,962,149.92 66,703,600.86 Including:Interest cost 59,606,588.17 71,692,070.66 Interest income 4,644,969.74 6,956,786.65 Asset impairment loss -1,815,828.92 Add:Other gains 194,598.16 Investment gain(“-”for loss) 134,304,872.05 113,907,034.97 Incl: Investment gains from affiliates 134,304,872.05 113,907,034.97 Fair value change income Gains from currency exchange(“-” for loss) Assets disposal income 21,509,712.51 III. Operational profit(“-”for loss) 632,554,283.85 544,455,002.28 Add :Non-operational income 571,258.42 1,121,057.31 Less:Non-operational expenses 137,992.92 1,028,790.51 IV .Gross profit(“-”for loss) 632,987,549.35 544,547,269.08 Less:Income tax expenses 123,881,985.59 99,958,901.51 V. Net profit 509,105,563.76 444,588,367.57 (1) Categorized by going concern 509,105,563.76 444,588,367.57 (2) Termination of operating net profit Net profit attributable to the owners 441,303,002.76 384,780,778.72 of parent company Minority shareholders’ equity 67,802,561.00 59,807,588.85 VI. After tax net amount of 42,627,645.56 comprehensive income 18 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Net of profit of other comprehensive income attributable to owners of the 42,627,645.56 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 plans of changes in net debt or net ass ets 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. (II) Other comprehensive income that wil 42,627,645.56 l be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be re -1,482,656.44 classified into profit or loss. 2.Gains and losses from changes in fa ir value available for sale financial as 44,110,302.00 sets 3.Held-to-maturity investments reclas sified to gains and losses of available for sale financial assets 4.The effective portion of cash flow h edges and losses 5.Translation differences in currency financial statements 6.Other Net after-tax of other comprehensive inco me attributable to Minority shareholders’ equity VII. Total comprehensive income 551,733,209.32 444,588,367.57 Total comprehensive income attributable to the owner of the parent 483,930,648.32 384,780,778.72 company 19 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Total comprehensive income 67,802,561.00 59,807,588.85 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.21 0.18 (II)Diluted earnings per share 0.21 0.18 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0.00, last period the combined party realized RMB0.00. 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 yuan Items Amount in this period Amount in last period I. Turnover 380,022,328.89 243,646,856.46 Less:Operation cost 170,355,701.76 107,539,198.57 Taxes and surcharge 2,323,857.60 1,135,202.88 Sales expenses Administrative expenses 18,325,889.09 16,820,363.64 R & D cost Financial expenses 51,345,142.50 52,147,873.91 Including:Interest cost 55,947,515.48 58,733,287.40 Interest income 4,614,243.77 6,593,195.70 Impairment loss on assets -1,240,782.92 Add:Other gains 194,598.16 Investment gains(“-“for loss) 820,280,096.41 501,673,481.88 Including: investment income from 134,304,872.05 113,907,034.97 associates and joint ventures Fair value change income Assets disposal income II. Operational profit(“-”for loss) 959,387,215.43 567,677,699.34 Add :Non-operational income 182,721.87 279,044.71 Less:Non -operational expenses 184,874.00 III.Gross profit(“-”for loss) 959,385,063.30 567,956,744.05 20 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Less:Income tax expenses 34,466,045.99 8,943,088.28 IV. Net profit 924,919,017.31 559,013,655.77 (1) Categorized by going concern 924,919,017.31 559,013,655.77 (2) Termination of operating net profit V.After tax net amount of 42,627,645.56 comprehensive 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 plans of changes in net debt or net ass ets 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. ( II ) Other comprehensive income that wil 42,627,645.56 l be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be re -1,482,656.44 classified into profit or loss. 2.Gains and losses from changes in fa ir value available for sale financial as 44,110,302.00 sets 3.Held-to-maturity investments reclas sified to gains and losses of available for sale financial assets 4.The effective portion of cash flow h edges and losses 5.Translation differences in currency financial statements 6.Other VI. Total comprehensive income 967,546,662.87 559,013,655.77 VII. Earnings per share: (I)Basic earnings per share (II)Diluted earnings per share 21 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 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 yuan Items Amount in this period Amount in last period I. Total revenue 2,386,633,889.06 2,262,749,048.43 Including:Business income 2,386,633,889.06 2,262,749,048.43 Interest income Insurance fee earned Commission charge and commission income II. Total Business cost 1,103,131,283.22 1,144,258,992.54 Including:Business cost 817,225,556.12 814,962,327.13 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 10,740,890.98 10,278,140.64 Sales expenses Administrative expense 105,269,752.40 111,288,226.47 R & D cost 3,026,437.60 7,025,757.34 Financial expenses 168,742,365.39 200,507,959.88 Including:Interest cost 185,358,874.77 223,016,680.03 Interest income 22,721,206.04 22,596,555.68 Asset impairment loss -1,873,719.27 196,581.08 Add:Other gains 194,598.16 Investment gain(“-”for loss) 393,663,174.25 337,337,399.41 Including: investment income from 351,082,029.39 313,283,142.59 associates and joint ventures 22 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Fair value change income Gains from currency exchange(“-” for loss) Assets disposal income 66,369,899.18 III. Operational profit(“-”for loss) 1,743,730,277.43 1,455,827,455.30 Add :Non-operational income 3,258,819.00 63,420,135.89 Less:Non-operational expenses 2,145,960.35 4,128,264.77 IV. Gross profit(“-”for loss) 1,744,843,136.08 1,515,119,326.42 Less:Income tax expenses 337,103,704.44 80,018,819.53 V. Net profit 1,407,739,431.64 1,435,100,506.89 (1) Categorized by going concern 1,407,739,431.64 1,435,100,506.89 (2) Termination of operating net profit Net profit attributable to the owners 1,220,305,249.74 1,277,628,791.25 of parent company Minority shareholders’ equity 187,434,181.90 157,471,715.64 VI.After tax net amount of -31,167,903.99 -75,869,719.44 comprehensive income Net of profit of other comprehensive income attributable to owners of the -31,167,903.99 -75,869,719.44 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 plans of changes in net debt or net ass ets 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. (II) Other comprehensive income that wil -31,167,903.99 -75,869,719.44 l be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be re -6,466,134.87 classified into profit or loss. 2.Gains and losses from changes in fa -24,701,769.12 -75,869,719.44 ir value available for sale financial as 23 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period sets 3.Held-to-maturity investments reclas sified to gains and losses of available for sale financial assets 4.The effective portion of cash flow h edges and losses 5.Translation differences in currency financial statements 6.Other Net after-tax of other comprehensive inco me attributable to Minority shareholders’ equity VII. Total comprehensive income 1,376,571,527.65 1,359,230,787.45 Total comprehensive income attributable to the owner of the parent 1,189,137,345.75 1,201,759,071.81 company Total comprehensive income 187,434,181.90 157,471,715.64 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.58 0.61 (II)Diluted earnings per share 0.58 0.61 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0.00, last period the combined party realized RMB0.00. Legal Representative: Zhen Renfa General Manager : Wang Chunhua Person in charge of accounting:Fang Zhi Accounting Dept Leader: Zhou Fang 6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB yuan Items Amount in this period Amount in last period I. Turnover 1,055,916,596.63 281,871,132.87 Less:Business cost 480,666,389.08 107,771,305.27 Taxes and surcharge 5,817,633.50 1,180,772.15 Sales expenses 24 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Administrative expense 60,558,892.12 43,378,310.99 R & D cost Financial expenses 155,551,567.44 119,005,596.12 Including:Interest cost 174,813,943.23 138,099,572.86 Interest income 22,420,977.88 19,141,752.56 Asset impairment loss -1,240,782.92 Add:Other gains 194,598.16 Investment gain(“-”for loss) 1,700,859,665.12 1,432,408,272.61 Including: investment income from 351,082,029.39 313,283,142.59 associates and joint ventures Fair value change income Assets disposal income 138,427.18 II. Operational profit(“-”for loss) 2,055,755,587.87 1,442,943,420.95 Add :Non-operational income 1,099,053.86 352,923.13 Less:Non-operational expenses 670,700.09 III.Gross profit(“-”for loss) 2,056,183,941.64 1,443,296,344.08 Less:Income tax expenses 88,520,873.40 -211,327,478.86 IV. Net profit 1,967,663,068.24 1,654,623,822.94 (1) Categorized by going concern 1,967,663,068.24 1,654,623,822.94 (2) Termination of operating net profit V.After tax net amount of -31,167,903.99 -75,869,719.44 comprehensive 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 plans of changes in net debt or net ass ets 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. ( II ) Other comprehensive income that wil -31,167,903.99 -75,869,719.44 l be reclassified into profit or loss. 1.Other comprehensive income under -6,466,134.87 the equity method investee can be re 25 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period classified into profit or loss. 2.Gains and losses from changes in fa ir value available for sale financial as -24,701,769.12 -75,869,719.44 sets 3.Held-to-maturity investments reclas sified to gains and losses of available for sale financial assets 4.The effective portion of cash flow h edges and losses 5.Translation differences in currency financial statements 6.Other VI. Total comprehensive income 1,936,495,164.25 1,578,754,103.50 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 yuan Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 2,430,071,550.43 2,269,246,330.63 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 26 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period 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 54,513,688.32 67,752,504.28 operation Sub-total of cash inflow 2,484,585,238.75 2,336,998,834.91 Cash paid for purchasing of 142,035,365.51 101,493,279.85 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 200,483,302.33 203,043,259.59 Taxes paid 659,984,230.23 325,795,159.90 Other cash paid for business activities 47,815,642.37 61,842,977.19 Sub-total of cash outflow from 1,050,318,540.44 692,174,676.53 business activities Cash flow generated by business 1,434,266,698.31 1,644,824,158.38 operation, net II.Cash flow generated by investing Cash received from investment retrieving 27 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Cash received as investment gains 246,194,475.70 180,974,999.80 Net cash retrieved from disposal of fixed assets, intangible assets, and 228,183,292.51 138,750.00 other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash 575,046.00 60,287,001.01 received Sub-total of cash inflow due to 474,952,814.21 241,400,750.81 investment activities Cash paid for construction of fixed assets, intangible assets and 509,914,271.20 256,756,858.37 other long-term assets Cash paid as investment Net increase of loan against pledge Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 509,914,271.20 256,756,858.37 investment activities Net cash flow generated by -34,961,456.99 -15,356,107.56 investment III.Cash flow generated by financing Cash received as investment Incl: Cash received as investment from minor shareholders Cash received as loans 1,259,000,000.00 1,308,000,000.00 Cash received from bond placing Other financing –related ash 4,861,111.11 received Sub-total of cash inflow from 1,263,861,111.11 1,308,000,000.00 financing activities Cash to repay debts 1,487,480,000.00 1,625,100,000.00 Cash paid as dividend, profit, or 1,482,717,100.16 936,660,204.59 interests Incl: Dividend and profit paid by 28 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period subsidiaries to minor shareholders Other cash paid for financing activities Sub-total of cash outflow due to 2,970,197,100.16 2,561,760,204.59 financing activities Net cash flow generated by financing -1,706,335,989.05 -1,253,760,204.59 IV. Influence of exchange rate alternation on cash and cash -2,267,884.63 1,447,084.51 equivalents V.Net increase of cash and cash -309,298,632.36 377,154,930.74 equivalents Add: balance of cash and cash 2,363,042,700.42 2,603,279,644.25 equivalents at the beginning of term VI ..Balance of cash and cash 2,053,744,068.06 2,980,434,574.99 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 In RMB yuan Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 1,028,479,493.61 204,860,249.44 rending of services Tax returned Other cash received from business 342,818,820.26 711,264,490.94 operation Sub-total of cash inflow 1,371,298,313.87 916,124,740.38 Cash paid for purchasing of 59,667,495.43 6,155,244.77 merchandise and services Cash paid to staffs or paid for staffs 80,870,547.38 34,315,661.16 Taxes paid 38,553,095.96 4,409,052.82 Other cash paid for business activities 363,020,990.09 285,269,012.07 Sub-total of cash outflow from 542,112,128.86 330,148,970.82 29 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period business activities Cash flow generated by business 829,186,185.01 585,975,769.56 operation, net II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 877,415,742.21 1,290,045,873.00 Net cash retrieved from disposal of fixed assets, intangible assets, and 296,095.00 128,000.00 other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash 650,750.00 10,786,916.66 received Sub-total of cash inflow due to 878,362,587.21 1,300,960,789.66 investment activities Cash paid for construction of fixed assets, intangible assets 495,317,031.90 1,413,815.93 and other long-term assets Cash paid as investment 4,500,000.00 Net cash received from subsidiaries and other operational units Other cash paid for investment 10,000,000.00 activities Sub-total of cash outflow due to 495,317,031.90 15,913,815.93 investment activities Net cash flow generated by 383,045,555.31 1,285,046,973.73 investment III.Cash flow generated by financing Cash received as investment Cash received as loans 600,000,000.00 Cash received from bond placing Other financing –related ash 295,861,111.11 received Sub-total of cash inflow from 895,861,111.11 financing activities Cash to repay debts 614,100,000.00 50,100,000.00 30 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2018 Items Amount in this period Amount in last period Cash paid as dividend, profit, or 1,212,529,917.37 813,656,128.90 interests Other cash paid for financing 374,200,000.00 activities Sub-total of cash outflow due to 2,200,829,917.37 863,756,128.90 financing activities Net cash flow generated by financing -1,304,968,806.26 -863,756,128.90 IV. Influence of exchange rate alternation on cash and cash -2,267,884.63 1,447,084.51 equivalents V.Net increase of cash and cash -95,004,950.57 1,008,713,698.90 equivalents Add: balance of cash and cash 2,130,475,892.67 1,795,455,123.88 equivalents at the beginning of term VI ..Balance of cash and cash 2,035,470,942.10 2,804,168,822.78 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. 31