Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Guangdong Provincial Expressway Development Co., Ltd.
2018 Annual Report
March 2019
1
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of
the Company hereby warrant that at the year , there are no misstatement, misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness
of the contents hereof.
Mr.Zheng Renfa, The Company leader, Mr. Wang Chunhua, General Manager, Mr. Fang Zhi, Chief financial
officer and the Ms.Zhou Fang, the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual
report.
All the directors attended the board meeting for reviewing the Annual Report.
The toll revenues of Expressway is main source of the major business income of the company , The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province, autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.
Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments, and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So, the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So, the charging policy changes and charges adjustment will affect the highways operation of the
company.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
2,090,806,126 for the base, the Company would distribute cash dividend to all the shareholders at the rate of
CNY5.62 for every 10 shares (with tax inclusive) , 0 bonus shares （ including tax ） and no reserve would be
converted into share capital.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Table of Contents
I. Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Definition
Terms to be defined Refers to Definition
Reporting period, This year Refers to January 1, 2018 to December 31, 2018
The annual report of the company was approved by the board of directors on 2018,
Reporting date Refers to
that is, March 27, 2019
YOY Refers to Compared with 2017
The Company /This Company Refers to Guangdong Provincial Expressway Development Co.,Ltd.
Communication Group Refers to Guangdong Communication Group Co., Ltd.
Guangdong Expressway Refers to Guangdong Expressway Co.,Ltd.
Construction Company Refers to Guangdong Highway Construction Co., Ltd.
Technology Company/Guangdong
Refers to Guangdong Expressway Technology Investment Co., Ltd
Expressway Technology
Fokai Company,Subsidiary Refers to Guangdong Fokai Expressway Co., Ltd.
Fokai Branch Refers to Guangdong Fokai Expressway Co., Ltd. Fokai Branch
The reconstruction and expansion
The reconstruction and expansion of the Sanbao-Shuikou section (south section) of
of th south section of Fokai Refers to
Fokai Expressway.
Expressway
Guangfo Company Refers to Guangdong Guangfo Expressway Co., Ltd.
Guangdong Expressway Capital Refers to Yuegao Capital Investment (Hengqin) Co., Ltd.
Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co., Ltd.
Guangdong Provincial Expressway Development Co.,Ltd. issues shares and uses
Major assets restructuring Refers to
cash to purchase assets and raise counterpart funds and Related transaction
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
II. Basic Information of the Company and Financial index
1．Company Information
Stock abbreviation: Guangdong Expressway A,B Stock code： 000429、200429
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东省高速公路发展股份有限公司
Chinese Abbreviation 粤高速
English name (If any) Guangdong Provincial Expressway Development Co.Ltd.
English Abbreviation (If any) GPED
Legal Representative Zheng Renfa
Registered address 85 Baiyun Road, Guangzhou, Guangdong Province
Postal code of the Registered
510100
Address
Office Address 45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe Disrtict , Guangzhou
Postal code of the office
510623
address
Internet Web Site www.gpedcl.com
E-mail ygs@gdcg.cn
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
46/F, Litong Plaza, No.32, Zhujiang East 45/F, Litong Plaza, No.32, Zhujiang East
Contact address Road, Zhujiang New City, Tianhe Disrtict , Road, Zhujiang New City, Tianhe Disrtict ,
Guangzhou Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Information disclosure and placed
Newspapers selected by the Company for information Securities Times, China Securities, Shanghai Securities Daily and
disclosure Hongkong Commercial Daily.
Internet website designated by CSRC for publishing
www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and
Securities affair Dept of the Company
placed
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
4.Changes in Registration
Organization Code 91440000190352102M
Changes in principal business activities
No change
since listing (if any)
On November 2000, In accordance with Cai Guan Zi (2008) No. 109 Document of
Ministry of Finance and Yue Ban Han (2000) No. 574 Document of General Office of
Guangdong People's Government, the state-owned shares of Guangdong Expressway
originally entrusted to Guangdong Expressway Company (now renamed as
Changes is the controlling shareholder in
"Guangdong Provincial Expressway Co., Ltd.") for management were transferred to
the past (is any)
Guangdong Communication Group Co., Ltd. for holding and management. After the
transfer of state-owned shares, Guangdong Communication Group Co., Ltd. became
the largest shareholder of the Company. The nature of equity was defined as
state-owned shares.
5. Other Relevant Information
CPAs engaged
Name of the CPAs Guangdong Zhengzhong Zhujiang Certified Public Accountants Co., Ltd.
Office address： 10/F,Yuehai Group Building, No.555 Dongfeng East Road, Guangzhou
Names of the Certified Public
Feng Kuncong, Xu Jihong
Accountants as the signatories
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.
□ Applicable√ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
□ Applicable√ Not applicable
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
6.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No
Retroactive adjustment or restatement of reasons
Accounting policy change
Changed over last
2017 2016
2018 year(％)
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Revenue（Yuan） 3,218,694,083.94 3,089,055,399.21 3,089,055,399.21 4.20% 2,825,049,808.36 2,825,049,808.36
Net profit attributable to the
shareholders of the listed company 1,677,028,179.18 1,509,922,398.70 1,509,922,398.70 11.07% 1,001,205,945.39 1,001,205,945.39
（Yuan）
Net profit after deducting of
non-recurring gain/loss attributable to
1,395,441,391.82 1,271,993,450.05 1,271,993,450.05 9.71% 846,981,077.52 846,981,077.52
the shareholders of listed company
（Yuan）
Cash flow generated by business
1,915,985,578.04 2,194,989,925.35 2,194,989,925.35 -12.71% 1,924,259,958.28 1,924,259,958.28
operation, net（Yuan）
Basic earning per share(Yuan/Share) 0.80 0.72 0.72 11.11% 0.52 0.52
Diluted gains per share(Yuan/Share) 0.80 0.72 0.72 11.11% 0.52 0.52
Weighted average ROE(%) 18.37% 17.69% 17.69% 0.68% 14.18% 14.18%
Changed over last
End of 2017 End of 2016
End of 2018 year(％)
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Gross assets（Yuan） 16,295,910,774.45 16,523,315,093.72 16,523,315,093.72 -1.38% 16,072,445,216.59 16,072,445,216.59
Net assets attributable to
shareholders of the listed company 9,586,701,904.06 9,023,071,118.45 9,023,071,118.45 6.25% 8,289,020,301.39 8,289,020,301.39
（Yuan）
Reasons of accounting policy change and correction of accounting error
On June 26,2018，The Ministry of Finance issued the Notice on Revising and Issuing the Format of General Enterprise Financial Statements for 2018 (Caikuai
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
[2018] No. 15), which adjusted the format of enterprise financial statements accordingly and merged the original "notes receivable" and "accounts receivable" line
items into "notes receivable and accounts receivable"; The items in the original "interest receivable", "dividend receivable" and "other receivables" lines are merged
into "other receivables"; The items in the original "fixed assets" and "fixed assets liquidation" lines are merged into "fixed assets"; The items in the original
"engineering materials" and "construction in progress" lines are merged into "construction in progress"; The items in the original "notes payable" and "accounts
payable" lines are merged into "notes payable and accounts payable"; The items in the original "interest payable", "dividend payable" and "other payables" lines are
merged into "other payables"; The items in the original "long-term payables" and "special payables" lines are merged into "long-term payables"; In the income
statement, the detailed items of "management expenses" and "research and development expenses" are broken down under the item of "management expenses"; The
detailed items of "interest expense" and "interest income" are broken down under "financial expense" in the income statement. The Company adopts retrospective
adjustment method for this accounting policy change, and retroactively adjusts the items reported in 2017 financial statements.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
7.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
8.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Revenue 743,043,761.26 792,820,383.88 850,769,743.92 832,060,194.88
Net profit attributable to the
341,598,430.84 437,403,816.14 441,303,002.76 456,722,929.44
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
341,067,803.01 411,849,908.52 427,205,756.24 215,317,924.05
to the shareholders of listed
company
Net Cash flow generated by
332,977,529.61 484,302,058.49 616,987,110.21 481,718,879.73
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2018) Amount (2017) Amount (2016) Notes
Non-current asset disposal
gain/loss(including the write-off part for
63,173,138.25 -2,745,683.68 8,644,766.55
which assets impairment provision is
made)
Govemment subsidies recognized in
current gain and loss(excluding those
closely related to the Company’s 1,113,228.32 385,932.17 704,645.87
business and granted under the state’s
policies)
Current net gains and losses occurred
from period-begin to combination day
102,025,476.76
by subsidiaries resulting from business
combination under common control
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Amount (2018) Amount (2017) Amount (2016) Notes
Other non-business income and
-1,545,368.05 61,458,075.96 62,762,574.05
expenditures other than the above
The amount in 2018 is due to the
deferred income tax assets of
Less: Amount of influence of income
-230,679,518.30 -178,668,186.37 17,954,525.92 246,010,541.19 yuan after the
tax
cancellation of Guangdong Fokai
Expressway Co., Ltd.
Amount of influence of minority
11,833,729.46 -162,437.83 1,958,069.44
interests(after tax)
Total 281,586,787.36 237,928,948.65 154,224,867.87 --
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and
Jingzhu Expressway Guangzhu Section investment in technological industries and provision of relevant
consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co.,
Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Ex
pressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Petty Loan Co., Ltd., Guangdong
Guangle Expressway Co.,Ltd.and Guoyuan Securities Co., Ltd. As of the end of the reporting period, the
company’s share-controlled expressway is 153.71 km, and Share-controlled expressways and share-participation
expressways are converted to 264.41 kilometers in proportion to equity.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
An increased by 98.36 million yuan and 3.23% over the beginning of the year, Mainly
Equity assets due to the combined effect of the shareholder's distribution of dividends and the increase
in investment income.
A decreased by 905.38 million yuan and 10.64% over the beginning of the year，Mainly
Fixed assets
due to the depreciation of the current period of Guangzhu East and Fokai Company.
Intangible assets No significant change.
An increased by 731.86 million yuan and 204.65% over the beginning of the year,
Construction in process Mainly due to the affection by the reconstruction and expansion of the Sanbao-Shuikou
section (south section) of Fokai Expressway.
An increased by 112.19 million yuan and 33.46% over the beginning of the year, The
Deferred income tax assets main reason is that the Department recognizes the deferred income tax assets
corresponding to the losses.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III. Analysis On core Competitiveness
Whether or not the Company complies with disclosure requirement of the special industry
No
The toll revenue of expressway industry mainly depends on the regional economic development. The
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokai
expressway, controlled by the company, are part of the National Expressway Network Planning-“Five vertical and
seven horizontal ”,The share-controlled Beijing-Zhuhai Guangzhu Section Expressway is a fast and convenient
expressway.and many of the company’s equity-participation expressways that are part of the main skeleton of the
Guangdong Provincial Expressway Planning- “ Ten vertical and five horizontal ” , which provides a strong
guarantee for stable traffic volume. Meanwhile, the regional economy is the critical factor that influences the
traffic volume, as Guangdong province is the economically developed region, with years ’ continuous high
growth of GDP, so that provides the stable rising demand for the company.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
IV. Management’s Discussion and Analysis
I. General
In 2018, The board of directors of the Company actively implements the resolutions of the general meeting of
shareholders, earnestly performs its duties, leads the company's management team, closely focuses on the overall
goal of "being stronger and better" in accordance with the relevant requirements of Guangdong province for
comprehensively deepening the reform of state-owned enterprises, takes the party construction as the guide,
stabilizes the main business, promotes the transformation through investment, and promotes the high-quality
development of the Company. In 2018, according to the overall work plan, steady progress are made and
implementation are vigorously promoted. All tasks and objectives have been successfully completed.
1. Basically complete the set target in 2018. 2018 to achieve operating income of 3.219 billion yuan to complete
the target value of 3.227 billion yuan by 99.75%; to achieve operating costs of 1.279 billion yuan to complete the
target value of 1.326 billion yuan by100%.
2. Complete the absorption and merger of Fokai subsidiaries. In 2018, the company organized and completed key
work such as bank loan contract subject change, real estate transfer, preparation and handover of asset list,
cancellation of tax registration by 15 tax authorities, and cancellation of Fokai subsidiaries, and successfully
completed the absorption and merger of Fokai subsidiaries.
3. Achieve smooth progress for reconstruction and expansion project. In 2018, the construction projects under
construction of the holding company include the reconstruction and expansion projects of Foshan-Shuikou
Expressway Sanbao-Shuikou Section and Huiyan Expressway of Foshan-Shuikou Expressway, among which the
Foshan-Shuikou Expressway south section is subject to reconstruction and expansion of soft foundation, subgrade
and culvert works, the bridge and pavement works are completed by 60% and 50% respectively, and the
construction is progressing smoothly. Huiyan Expressway reconstruction and expansion project is also
progressing steadily as planned.
4. The screening of high-quality project sources is strengthened. According to the overall arrangement of the
company's "13th Five-Year" Development Plan and the goal of transformation and development, we have firmly
established the concept that focus on the projects and investment is the focus on development. Based on
Guangdong's high capital investment platform, centered by directions such as service industry and intelligent
transportation, we have followed and analyzed more than a dozen projects,and will continuou search for
high-quality investment projects suitable for company development.
5. Orderly promote the development of resources along the expressway. Through the practice of comprehensive
development of resources along expressways, it is not only the needs of the company's own development, but also
the practical needs of "driving competitive business with quasi-public business, driving quasi-public business with
competitive business, and creating a comprehensive return model". This year, efforts will be focused on
revitalizing land plots along the route through lease, promoting eligible land plots and deepening research on the
comprehensive development model of land resources, so as to lay a foundation for the subsequent development of
land resources along the route.
6. Promote the integration of self-developed "Blue Channel" technology and provincial highway toll collection
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
system upgrading. "Blue Channel" project is a useful exploration for the company to expand its intelligent
transportation business. In order to integrate this technology into the overall arrangement of the upgrading and
renovation of expressway toll collection system in Guangdong Province, Guangdong High Speed Technology
Investment Co., Ltd., a wholly-owned subsidiary of the company, takes the "Blue Channel" related intellectual
property rights as the transfer price by means of agreement transfer and according to the evaluation value. The
asset group is transferred to Guangdong Union Electronic Services Co., Ltd.
7. Lead the establishment of the Intelligent Transportation Industry Investment Alliance. The company actively
responded to national policies and the needs of industry development. In order to strengthen the research on
intelligent transportation industry policies, industry analysis and information exchange and sharing, the company
took the opportunity of the "China (Xiaoguwei)' Internet + Transportation' Innovation and Entrepreneurship
Competition". In November, the company jointly established the "China Intelligent Transportation Industry
Investment Alliance" with a number of transportation industry companies to help expand intelligent transportation
business.
II. Main business analysis
1. General
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System.
In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of the
Company are as follows:
Volume of vehicle traffic in Increase Toll income in 2018 Increase
2018（Ten thousands vehicles） /Decrease(%) （Ten thousands） /Decrease(%)
Guangfo Expressway 6,571.56 4.92% 47,459.17 9.13%
Fokai Expressway 7,538.89 19.82% 132,756.72 5.91%
Jingzhu Expressway 8,129.98 2.94% 131,428.29 1.81%
Guangzhu East Section
Huiyan Expressway 4,134.96 8.41% 24,528.82 5.52%
Guangzhao Expressway 3,258.06 8.67% 55,079.41 8.45%
Guanghui Expressway 6,258.26 8.72% 183,152.15 0.60%
Jiangzhong Expressway 5,751.28 4.08% 47,945.55 4.91%
Kangda Expressway 302.44 2.28% 23,986.88 -0.45%
Gangkang Expressway 399.92 16.79% 16,615.27 18.93%
Guangle Expressway 2,684.97 14.24% 310,013.64 4.04%
Overall situation: During the reporting period, the traffic volume of participating and controlling expressways
maintained a growth trend. Toll revenue increased by different rates compared with the same period last year
except for the negative growth of Nankang-Dayu Expressway.
1. Guangfo Expressway: affected by the implementation of restricted trucks in Foshan First Ring Road, the
number of truck traffic increased year-on-year, so the increase percentage in toll revenue was higher than the
increase in traffic volume.
2. Fokai Expressway: The income growth level of the first three quarters remained stable. In the fourth quarter,
due to the opening of the entire line of Yunzhan Expressway, the income growth level declined.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
3. Guangzhu Section of Beijing-Zhuhai Expressway: During the period of closure of Hongqili Bridge on National
Highway from January to August 2017, vehicles bypassed Guangzhudong Expressway, which resulted in a sharp
increase in traffic flow and toll revenue of Guangzhudong Expressway. In 2018, this factor disappeared, and the
traffic flow and toll revenue of Guangzhou-Zhuhai-East Expressway returned to normal, with a small increase
over the same period last year.
4. Huiyan Expressway: Vehicle flow and toll revenue maintained normal natural growth. The ongoing
reconstruction and expansion of Huiyan Expressway has not had a substantial impact on road traffic this year.
5. Gankang Expressway: The increase in traffic volume and toll revenue was mainly due to the comprehensive
effects of positive factors including surrounding local road repair, local road key vehicle regulating and Xingan
highway traffic volume bringing-in.
2. Revenue and cost
(1)Component of Business Income
In RMB
2018 2017
Increase /decrease
Amount Proportion Amount Proportion
Total operating
3,218,694,083.94 100% 3,089,055,399.21 100% 4.20%
revenue
Industry
Highway
3,116,441,804.18 96.82% 2,979,291,622.84 96.45% 4.60%
transportations
Other 102,252,279.76 3.18% 109,763,776.37 3.55% -6.84%
Product
Highway
3,116,441,804.18 96.82% 2,979,291,622.84 96.45% 4.60%
transportations
Other 102,252,279.76 3.18% 109,763,776.37 3.55% -6.84%
Area
Guangfo
474,591,734.35 14.74% 434,905,187.39 14.08% 9.13%
Expressway
Fokai Expressway 1,327,567,186.19 41.25% 1,253,453,513.48 40.58% 5.91%
Jingzhu Expressway
1,314,282,883.64 40.83% 1,290,932,921.97 41.79% 1.81%
Guangzhu Section
Other 102,252,279.76 3.18% 109,763,776.37 3.55% -6.84%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
Whether or not the Company complies with disclosure requirement of the special industry
No
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross profit of revenue in the of business cost of gross profit
Turnover Operation cost
rate(%) same period of over the same rate over the same
the previous period of period of the
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
year(%) previous year (%) previous year (%)
Industry
Highway
3,116,441,804.18 1,202,346,408.66 61.42% 4.60% 2.17% 0.92%
transportations
Product
Highway
3,116,441,804.18 1,202,346,408.66 61.42% 4.60% 2.17% 0.92%
transportations
Area
Guangfo
474,591,734.35 102,214,783.92 78.46% 9.13% -17.36% 6.90%
Expressway
Fokai
1,327,567,186.19 703,995,761.95 46.97% 5.91% 3.93% 1.01%
Expressway
Jingzhu
Expressway
1,314,282,883.64 396,135,862.79 69.86% 1.81% 5.41% -1.03%
Guangzhu
Section
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry category
In RMB
2018 2017 Increase/
Industry category
Items Proportion in the Proportion in the Decrease
Amount Amount (%)
operating costs (%) operating costs (%)
Highway Depreciation and
795,052,567.72 62.16% 809,040,484.70 64.87% -1.73%
transportations Amortized
Highway
Out of pocket expenses 407,293,840.94 31.84% 367,806,625.74 29.49% 10.74%
transportations
Other Other 76,748,662.66 6.00% 70,275,242.91 5.63% 9.21%
Note
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □No
The Company had 5 subsidiaries included in the scope of consolidation in 2018. The scope of the
consolidated financial statements decreased by 1 compared with the previous period-for having the write off
subsidiary. In August 2018, Guangdong Fokai Expressway Co., Ltd. completed the industrial and commercial
cancellation, and obtained the “Notice of Approval for Cancellation Registration” and the “Notice of Permit for
Cancellation Registration”. From August 2018, Guangdong Fokai Expressway Co., Ltd. was no longer included in
the scope of consolidated statements.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’
s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
□ Applicable √Not applicable
3.Expenses
In RMB
Increase/Decr
2018 2017 Notes
ease(%)
Selling expenses 0.00 0.00
Administrative expenses 183,392,148.68 179,811,709.59 1.99%
Financial expenses 212,592,783.74 247,306,751.08 -14.04% Reduced loan principal
After April 2018, the research and
Research & development
1,318,344.01 9,773,866.38 -86.51% development cost of "Blue Channel" project no
expenses
longer occur.
4. Research and Development
√ Applicable □Not applicable
In April 2018, Guangdong Expressway Technology stopped the research and development of the “Blue
Channel” project, with investment going into other smart transportation projects, and the related projects are in
their infancy stage, thus the R&D investment is lower than that of the previous year.
R & D investment
Increase
2018 2017
/decrease
Number of Research and Development persons (persons) 17 28 -39.29%
Proportion of Research and Development persons 0.77% 1.28% -0.51%
Amount of Research and Development Investment (In RMB) 1,318,344.01 9,773,866.38 -86.51%
Proportion of Research and Development Investment of Operation Revenue 0.04% 0.32% -0.28%
Amount of Research and Development Investment Capitalization (In RMB) 0.00 0.00 0.00%
Proportion of Capitalization Research and Development Investment of Research and
0.00% 0.00% 0.00%
Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable √ Not applicable
5.Cash Flow
In RMB
17
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Increase/Decrease
Items 2018 2017
(%)
Subtotal of cash inflow received from operation activities 3,384,347,808.21 3,236,665,403.26 4.56%
Subtotal of cash outflow received from operation activities 1,468,362,230.17 1,041,675,477.91 40.96%
Net cash flow arising from operating activities 1,915,985,578.04 2,194,989,925.35 -12.71%
Subtotal of cash inflow received from investing activities 642,611,742.49 484,922,170.62 32.52%
Subtotal of cash outflow for investment activities 845,371,278.92 1,229,007,515.09 -31.22%
Net cash flow arising from investment activities -202,759,536.43 -744,085,344.47 -72.75%
Subtotal cash inflow received from financing activities 1,385,000,000.00 1,838,277,777.78 -24.66%
Subtotal cash outflow for financing activities 3,335,697,061.08 3,530,866,387.00 -5.53%
Net cash flow arising from financing activities -1,950,697,061.08 -1,692,588,609.22 15.25%
Net increase in cash and cash equivalents -239,738,904.10 -240,236,943.83 -0.21%
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1. The cash outflow from operating activities was 1.468 billion yuan, of which 283 million yuan was paid in cash
for goods and services purchased and received for road maintenance, repair, etc; paid various labor costs of 332
million yuan; and paid 779 million yuan taxes,An increased by 427 million yuan year-on year, mainly because
Fokai subsidiaries’ absorption and merge-leading to that in 2018 it paid 321 million yuan of corporate income tax
provisioned in the end of 2017.
2. The cash outflow of investment activities was 845 million yuan, mainly paid for the progress of the
reconstruction and expansion project of Fokai South Section; A decreased by 384 million yuan year-on year,
which was mainly due to the combined impact that the Company invested RMB 800 million purchased Guoyuan
Securities in the previous period, and this year’s payment for the Fokai Expressway’s reconstruction and
expansion of the southern section increased by 416 million yuan.
3. The cash inflows from financing activities amounted to 1.385 billion yuan, which was the obtained borrowings,
a decrease of 453 million yuan year-on -year due to the decrease in borrowings.
4. The cash outflow from financing activities was 3.336 billion yuan, of which 1.785 billion yuan was repaid for
debt, and 1.55 billion yuan was for dividends and interests distribution. A decreased by 195 million yuan year-on
year, which was mainly due to the decrease in debt repayments during the period.
Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
√ Applicable □ Not applicable
In RMB
Supplement Information Amount of current period
I. Adjusting net profit to cash flow from
--
operating activities
Net profit 1,903,340,402.71
Add: Impairment loss provision of assets -1,006,155.42
Depreciation of fixed assets, oil and gas
807,609,480.04
assets and consumable biological assets
Amortization of intangible assets 2,526,983.05
Amortization of Long-term deferred
101,686.95
expenses
18
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Loss on disposal of fixed assets, intangible
-66,431,966.75
assets and other long-term deferred assets
Fixed assets scrap loss 3,258,828.50
Financial cost 249,543,624.55
Loss on investment -507,659,683.96
Decrease of deferred income tax assets -112,186,009.51
Increased of deferred income tax liabilities -34,374,901.56
Decrease of inventories -81,017.91
Decease of operating receivables 245,477,300.99
Increased of operating Payable -574,132,993.64
Net cash flows arising from operating
1,915,985,578.04
activities
II. Significant investment and financing
--
activities that without cash flows:
3．Movement of cash and cash equivalents： --
Ending balance of cash 2,123,303,796.32
Less: Beginning balance of cash equivalents 2,363,042,700.42
Net increase of cash and cash equivalents -239,738,904.10
III. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Investment income from
Investment Income 507,659,683.96 24.20% Sustainable
share-participating units
Asset impairment -1,006,155.42 -0.05% This section is reversed Not sustainable
Non-operating Mainly is the compensation
4,175,801.94 0.20% Not sustainable
income income.
Non-operating Mainly due to the damage
8,979,998.49 0.43% Sustainable
expenses repair of civil facilities
The Zhuhai High-tech Zone
Management Committee
recovered 4.213 kilometers
of Guangzhou-Zhuhai
Proceeds from asset Section Beijing-Zhuhai
66,431,966.75 3.17% Not sustainable
disposal Expressway Co., Ltd. The
Expressway has confirmed
the proceeds of asset
disposal.
19
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
IV. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2018 End of 2017 Proportion Notes to the significant change
Proportion in the Proportion in the increase/dec
Amount Amount
total assets(%) total assets(%) rease
Monetary fund 2,124,524,996.32 13.04% 2,363,042,700.42 14.30% -1.26%
Accounts
91,076,995.07 0.56% 92,642,625.45 0.56% 0.00%
receivable
Inventories 81,017.91 0.00% 0.00% 0.00%
Investment real
3,579,007.54 0.02% 2,755,757.68 0.02% 0.00%
estate
Long-term equity
3,145,644,970.07 19.30% 3,047,275,000.00 18.44% 0.86%
investment
Fixed assets 7,600,046,319.91 46.64% 8,505,434,890.71 51.48% -4.84%
Construction in
1,089,473,425.63 6.69% 357,612,211.95 2.16% 4.53%
process
Long-term loans 2,983,040,000.00 18.31% 4,744,170,000.00 28.71% -10.40%
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
In RMB
Gain/Loss on fair value Impairment Purchased Sold amount in
Cumulative fair value change
Items Opening amount change in the reporting provisions in the amount in the the reporting Closing amount
recorded into equity
period reporting period reporting period period
Financial assets
20
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Gain/Loss on fair value Impairment Purchased Sold amount in
Cumulative fair value change
Items Opening amount change in the reporting provisions in the amount in the the reporting Closing amount
recorded into equity
period reporting period reporting period period
Available-for-sale
952,782,523.20 -82,339,230.40 352,882,416.00 870,443,292.80
financial assets
Subtotal of financial assets 952,782,523.20 -82,339,230.40 352,882,416.00 870,443,292.80
Total of the above 952,782,523.20 -82,339,230.40 352,882,416.00 870,443,292.80
Financial liabilities 0.00 0.00
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?
□ Yes √No
21
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
3. Assets right restriction till end of reporting period
The balance of restricted bank deposits at the end of the period was RMB 1,221,200.00, which was the land
reclamation fund deposited into the fund custody account for the reconstruction and expansion project of sanbao
to shuikou section of Fokai Expressway.
V. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2018(Yuan) Investment Amount in 2017(Yuan) Change rate
824,811,091.23 1,128,590,181.23 -26.92%
22
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □Not applicable
In RMB
Gain or
Name of the Share Progress up Whether to
Main Investme Investment Capital Investment Product Less or the Date of
Company Proportion Partner to Balance Anticipated Involve in Disclosure Index
Business nt Way Amount Source Horizon Type Current Disclosure
Invested % Sheet Date Income Lawsuit
Investment
Announcement
of Resolutions of
Huiyan the 13th
On the basis of
Shenzhen Co., Ltd. (Provisional)
the term of
Huiyan Increase Unallocated Yantian Port Limited October Meeting of the
Expressway 53,000,000.00 33.33% operation Completed 0.00 0.00 No
Expressway capital profit Co., ltd. Company 31,2017 Eighth Board of
approved by
Co., Ltd. conversion Directors,
the government
Capital Announcement
of External
Investment
Total -- -- 53,000,000.00 -- -- -- -- -- -- 0.00 0.00 -- -- --
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □Not applicable
In RMB
Reasons
Accumulate
for failure
Industry in d realized
Fixed Accumulated actual in meeting
Form of which the Investment return as of
assets amount invested as Source of Estimated scheduled Date of Disclosure(If Disclosure index（If
Name investme investment amount during the Progress the end of
investme of the end of und return progress any) any）
nt project reporting period the end of
nt or not reporting period and
operates the reporting
estimated
period
return
23
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Announcement of
Fokai
the 19th
Expressway
(Provisional)
Sanbao to
Self and Not Meeting of the
Shuikou Self Yes Expressway 771,811,091.23 1,498,464,844.16 43.74% 0.00 0.00 June 17,2016
Borrowing applicable Seventh Board of
section
Directors,
Extension
Announcement of
projecy
External Investment
Total -- -- -- 771,811,091.23 1,498,464,844.16 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Purchase Sale
Book value Book value
Stock Mode of Changes in fair Cumulative fair amount amount Gain/loss of Account
Security Security Initial investment balance at the balance at the Sauce of
Abbreviati accounting value of the this value changes in in the in the the reporting ing
category code cost beginning of the end of the the shares
on: measurement period equity this this period items
reporting period reporting period
period period
Domesti Financia
c and Everbright l assets
601818 517,560,876.80 FVM 952,782,523.20 -82,339,230.40 352,882,416.00 0.00 0.00 42,581,144.86 870,443,292.80 Self
foreign Bank available
stocks for sale
Total 517,560,876.80 -- 952,782,523.20 -82,339,230.40 352,882,416.00 0.00 0.00 42,581,144.86 870,443,292.80 -- --
Disclosure Date of
Announcement on Securities
July 22,2009
Investment Approved by the
Board of Directors
Disclosure Date of
Announcement on Securities
August 7,2009
Investment Approved by the
Shareholders Meeting(If any)
24
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
25
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
VII.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company
Company Name Leading products and services Registered capital Total assets Net assets Operating Income Operating profit Net Profit
type
Operating Guangfo Expressway Co.,
Guangfo Ltd.(starts from Hengsha, Guangzhou, ends
Subsidiary 200 million yuan 618,339,194.93 560,017,228.16 478,698,151.01 350,870,752.07 264,958,397.35
Expressway in Xiebian, Foshan. Total length 15.7
kilometers
Guangzhu
Traffic
Highway investment management and
Investment Subsidiary 3 million yuan 2,739,116,415.57 708,069,127.55 1,340,650,149.26 867,657,015.17 352,076,637.69
consultation; highway maintenance
Management
Co., Ltd.
Investment in and construction of Guanghui
Expressway Co., Ltd. and supporting
facilities, the toll collection and
Guangdong maintenance management of Guanghui
Guanghui Sharing Expressway, The Guanghui
2.352 million yuan 4,700,244,777.56 3,308,404,078.58 1,855,658,219.29 1,278,442,208.08 969,032,056.06
Expressway Co., company Expressway's supporting gas station,
Ltd. salvation, vehicle maintenance,
vehicle transport, catering,
warehousing investment and
development
Jingzhu The operation and management of
Subsidiary 580 million yuan 2,734,157,149.77 1,278,381,667.35 1,340,650,149.26 867,740,150.68 640,290,496.74
Expressway Guangzhou-Zhuhai Expressway and
26
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Guangzhu provision of supporting services including
Section Co., fueling, salvage and supply of parts and
Ltd. components
Subsidiaries obtained or disposed in the reporting period
√ Applicable □Not applicable
Name Mode Influence
Has been transferred to a branch, canceled the loss of equity, confirmed deferred income tax assets, increased net profit of
Guangdong Fokai Expressway Co., Ltd. Logout
246,010,541.19 yuan.
Particulars about the Mutual holding companies
1.Guangfo Expressway Co., Ltd., a subsidiary of the company, the company owns 75% of Guangfo Expressway's equity. It builds and operates Guangzhou-Foshan
Expressway. Its management includes road maintenance, toll collection, signs, marking and other transportation facilities maintenance, vehicle rescue and other
business. The net profit of this period increased by 46.4731 million yuan, or 21.27% over the same period last year. The main reasons for the increase were: the
increase of traffic volume led to the increase of toll income; the depreciation of Guangzhou-Foshan Expressway was completely withdrawn in February last year, and
the depreciation of road property decreased by 22.07 million yuan.
2.Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd., a subsidiary of the company, the company owns 75% of Guangzhu Section's equity directly and indirectly.
It operates Guangzhou-Zhuhai Expressway and provides the service of refueling, rescuing and spare parts supplying with the expressway. The net profit of the
current period increased by 57.5706 million yuan, or 9.88%, compared with the same period last year. The main reason for the increase was that the proceeds of asset
disposal confirmed by repurchase of Zhuhai Section amounted to 62.2315 million yuan.
3.Guangdong Guanghui Expressway Co., Ltd. is a joint-stock company of the company. The company holds 30% of Guanghui Expressway's equity, invests in and
builds Guanghui Expressway and its supporting facilities; charges and maintenance management of Guanghui Expressway; invests and develops gas stations, rescues,
automobile maintenance, automobile transportation, catering and warehousing for Guanghui Expressway. Net profit in the current period increased by 29.0104
million yuan, or 3.09%, compared with the same period last year. The main reason for the increase was the combined effect of the increase of traffic volume on the
increase of toll revenue and the decrease of financial expenses.
27
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
VIII. Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prospect for future development of the Company
The overall goal of 2019 is: to achieve the operating income of 3.222 billion yuan and to control the operating
cost within 1.422 billion yuan.
In 2019, the company will focus on the "people-oriented, road-based business, and diversified development"
strategic goal, accelerating the implementation of two-wheel drive of "Highway + Investment", adhering to the
general tone of steady progress, centering on the highway industry and related industry development, thus to
promote the Company's transformation and upgrading and sustainable development.
1. Consolidate the development foundation of the main business of expressways and enhance the company's core
competitiveness. Step up supervision and coordination of projects such as the reconstruction and expansion
project of the south section of Foshan-Shuikou Expressway and Huiyan Expressway, as well as the
Guangzhudong Special Overhaul Project, seize the work objectives of key links, promote the construction
progress, and minimize the adverse impact on highway traffic caused by the Company by project construction.
Push forward the review and approval of the reconstruction and expansion of th south section of Fokai
Expressway and the toll operation period according to the working idea of "overall planning and coordinated
promotion", and complete the toll standard adjustment and approval after the completion of the reconstruction and
expansion project of Fokai Expressway South section.
Actively Tracking Investment Opportunities of High Quality Expressway Projects , promote the normalization of
the capital operation of expressway main business, and strengthen the main business foundation.
2. Focus on the intelligent transportation industry and foster new momentum for the company's development.
Fully utilize the role of platforms such as the China Intelligent Transportation Industry Investment Alliance,
actively track the development trend of the intelligent transportation industry, and focus on investment
opportunities in areas such as expressway traffic infrastructure management, intelligent monitoring, electronic
charging, travel information services, big data development and application, vehicle-road collaboration and
assisted driving, traffic safety, traffic management, so as to steadily promote equity investment. Guangdong
Expressway Technology and Yuegao Capital have developed their respective professional investment capabilities
and post-investment management capabilities in intelligent transportation research and development investment,
production investment, service investment, etc., with division of labor to realize linkage between capital and
industry.
3. Accelerate the development of land resources along the route and enhance the company's land value. Efforts
will be made to promote the upgrading and renovation project of the Zhishan Service Area of Foshan-Shuikou
Expressway. Research and demonstration of land development programs along the line, and strive to improve the
return on comprehensive land investment.
4. Continuously improve the quality of operation and management. In strict accordance with the requirements of
standardization, refinement and intensification of operation management, strengthen the statistics and analysis of
operation data, and strive to improve the quality of operation management.
5. Actively expand financing channels. The Company will pay close attention to the changes in the national
monetary policy, make a plan to connect the demand for funds, the time of demand and the supply of funds,
actively expand financing channels, issue medium-term notes at the right time, and raise funds through various
28
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
means such as insurance creditor's rights funds and bank loans to ensure that all kinds of fund needs are met.
6. Enterprise risk prevention is more accurate. Strengthen risk prevention awareness, risk management and
internal control. Full utilize the supervisory functions of internal audit, discover business risks in a timely manner,
increase the use of inspection results, and promptly urge subordinate enterprises to implement rectification and
mitigate risks.
X. List of the received researches, visits and interviews
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □Not applicable
Reception Types of
Way of reception Basic index
time visitors
1. The main content of research:1. the daily operation; 2. the company's
April 2,2018 By Phone Organization financial data analysis;3. development 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
April 10,2018 Onsite investigation Organization financial data analysis;3. development 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
May 2,2018 Onsite investigation Organization financial data analysis;3. development 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
May 8,2018 Onsite investigation Organization financial data analysis;3. development 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
May 9,2018 Onsite investigation Organization financial data analysis;3. development 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
July 23,2018 Onsite investigation Organization financial data analysis;3. development 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
August
Onsite investigation Organization financial data analysis;3. development strategy; 4. analysis on the industry.
28,2018
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
October
Onsite investigation Organization financial data analysis;3. development strategy; 4. analysis on the industry.
31,2018
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
December
Onsite investigation Organization financial data analysis;3. development strategy; 4. analysis on the industry.
19,2018
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
December
By Phone Organization financial data analysis;3. development strategy; 4. analysis on the industry.
24,2018
2.Primary data investigation: Public information company regularly reports
Reception times 10
Reception agency amount 45
Reception personal number 0
Others 0
Whether to disclose, reveal or disclose non-public
No
material information
29
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
□Applicable√ Not applicable
The profit distribution preplan or proposal and the Plan(preplan) or proposal of conversion of the capital reserve
into share capital in the past three years(with the reporting period inclusive):
(1) The Company's profit distribution plan for 2016 is as follows:
1.10% of the net profit of the company, i.e. 71,314,278.93 yuan, is to be allocated for statutory common
reserve fund.
2.The profit for 2016 is to be distributed as follows: 702,510,858.34 yuan. is to be allocated as the fund for
dividend distribution for 2016. with the total shares at the end of 2016, i.e., 2,090,806,126 shares, as the base, cash
dividend of 3.36 yuan(including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2016 annual shareholders’ general meeting
makes resolution on dividend distribution.
(2) The Company's profit distribution plan for 2017 is as follows:
1.10% of the net profit of the company, i.e. 177,864,580.14 yuan, is to be allocated for statutory common
reserve fund.
2.The profit for 2017 is to be distributed as follows:1,057,947,899.76 yuan. is to be allocated as the fund for
dividend distribution for 2017. with the total shares at the end of 2017, i.e., 2,090,806,126 shares, as the base, cash
dividend of 5.06 yuan (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2017 annual shareholders’ general meeting
makes resolution on dividend distribution.
(3) The Company's profit distribution preplan for 2018 is as follows:
1.10% of the net profit of the company, i.e. 230,581,431.32 yuan, is to be allocated for statutory common
reserve fund.
2.The profit for 2018 is to be distributed as follows:1,175,033,042.81 yuan. is to be allocated as the fund for
dividend distribution for 2018. with the total shares at the end of 2018, i.e., 2,090,806,126 shares, as the base, cash
dividend of 5.62 yuan (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2018 annual shareholders’ general meeting makes
30
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
resolution on dividend distribution.
Dividend distribution of the latest three years
In RMB
Ratio of the
Ratio of the
total cash
cash bonus
bonus (other
Ratio of the by other
ways
Net profit cash bonus in ways in net
Proportion included) in
attributable to net profit profit
for cash net profit
common stock attributable to attributable Total cash
bonus by attributable
Year for Amount for cash shareholders of listed common stock to common bonus(other
other to common
bonus shares bonus(tax included) company in shareholders of stock ways
ways(i.e. stock
consolidation listed company shareholders included)
share shareholders
statement for bonus contained in of listed
buy-backs) of listed
year consolidation company
company
statement contained in
contained in
consolidation
consolidation
statement
statement
2018 1,175,033,042.81 1,677,028,179.18 70.07% 0.00 0.00% 1,175,033,042.81 70.07%
2017 1,057,947,899.76 1,509,922,398.70 70.07% 0.00 0.00% 1,057,947,899.76 70.07%
2016 702,510,858.34 1,001,205,945.39 70.17% 0.00 0.00% 702,510,858.34 70.17%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□Applicable√ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares
5.62
(Yuan)(Tax-included)
Distribute additional (shares)for 10 shares 0
A total number of shares as the distribution
2,090,806,126
basis(shares)
Cash dividend amount (yuan, including tax 1,175,033,042.81
Other means (such as repurchase of shares) cash
0.00
dividend amount (yuan)
Total cash dividend (yuan, including tax) 1,175,033,042.81
Distributable profit (yuan) 3,680,165,040.86
Proportion of cash dividend in the distributable profit 100%
Cash dividend distribution policy
The Company is in a fast growth stage, there fore, the cash dividend will reach 80% of the profit distribution at least. Cash dividend
distribution policy.
Details of profit distribution or reserve capitalization plan
1.10% of the net profit of the company, i.e. RMB 230,581,431.32, is to be allocated for statutory common reserve fund.
2.The profit for 2018 is to be distributed as follows: 1,175,033,042.81 yuan. is to be allocated as the fund for dividend distribution
for 2018. with the total shares at the end of 2018, i.e., 2,090,806,126 shares, as the base, cash dividend of 5.62 yuan (including tax)
is to be distributed for every 10 shares .The remaining undistributed profits are to be carried forward to the next year. The foreign
exchange translation of the cash dividends for shareholders holding B share and overseas corporate shares will be determined
31
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
according to HKD:RMB bank’s Middle rate quoted by People’s Bank of China on the first working day after 2018 annual
shareholders’ general meeting makes resolution on dividend distribution.
32
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
III. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual
controller, acquirer, director, supervisor, senior management personnel and other related parities.
√Applicable □Not applicable
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
Commitment on
share reform
Commitment in
the acquisition
report or the
report on equity
changes
Guangfa Securities
Guangdong Expressway A shares acquired by the Company through subscription in this major
Co., Ltd., Tibet The date of
asset reorganization cannot be transferred or listed for transaction within thirty-six months Fulfill the
Yingyue Investment the expiration
Share limited from the date of the completion of the shares issuance in this major asset reorganization. commitment
Management Co., June 18,2015 of the share
commitment Upon the expiry of the lock-up period, the transfer and transaction of these shares will be normally
Ltd., Yadong Fuxing lock.
made in accordance with the effective laws and regulations, and relevant provisions of CSRS
Yalian Investment Co.,
Commitment and Shenzhen Stock Exchange (SSE).
Ltd.
made upon the
assets Guangdong Expressway A shares acquired by the Company through subscription in this major
Guangdong
replacement asset reorganization cannot be transferred or listed for transaction within thirty-six months
Expressway Co., Ltd., The date of
from the date of the completion of the shares issuance in this major asset reorganization. Fulfill the
Guangdong Highway the expiration
Share limited Upon the expiry of the lock-up period, the transfer and transaction of these shares will be commitment
Construction Co., June 26,2015 of the share
commitment made in accordance with the effective laws and regulations, and relevant provisions of CSRS normally
Ltd., Guangdong lock.
and Shenzhen Stock Exchange (SSE). Upon the completion of this major asset reorganization,
Communication
if the closing price of the A-share of Guangdong Expressway is below the issue price for 20
Group Co., Ltd.
consecutive trading days within six months, or at the end of six months after the completion
33
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
of the transaction the closing price is below the issue price, the lock-up period of the A-share
of Guangdong Expressway acquired by the Company through this major asset reorganization
will be automatically extended for six months.
Upon the mutual agreement by the Company and the Guangdong Expressway Co., Ltd., the
predicted annual net profit of the Guangzhou Fokai Expressway Co., Ltd. is 250.6973 million
yuan in 2016, 2690.0802 million yuan in 2017, and 403.1197 million yuan in 2018，The
non-recurring profit and loss in total is 105.5743 million yuan through accumulated
prediction. Within the compensation period, if Guangdong Fokai Expressway Co., Ltd.
achieves the accumulated net profit at the end of one year lower than the accumulated
predicted net profit of such year, the company will, based on shares needing compensation
through calculated and determined subject to the Agreement, buy back them by 1 yuan from
Performance Guangdong Fokai Expressway Co., Ltd. and cancel them and Guangdong Expressway Co.,
The period of
commitment Ltd. shall compensate in cash for the share part in short. Upon the compensation period Fulfill the
compensation
Guangdong s and expiration, if the actual accumulated non-recurring profit and loss (means the compensation commitment
August 26,2015 and the date of
Expressway Co., Ltd. compensatio granted within the compensation period by the governmental sector to Guangdong Fokai normally
completion of
n Expressway Co., Ltd. for Jiujiang Bridge charging cancel, hereinafter referred to as
the agreement.
arrangements “compensation amount for Jiujiang bridge”) of Guangdong Fokai Expressway Co., Ltd. is
lower than accumulated predicted non-recurring profit and loss, Guangdong Expressway Co.,
Ltd. will, subject to its shareholding ratio in Guangdong Fokai Expressway Co., Ltd. before
the major assets restructuring implementation, compensate the company in cash per the
agreement; after the compensation period expiration, upon Guangdong Fokai Expressway
Co., Ltd. acceptance of Jiujiang bridge compensation each time, the company shall refund the
corresponding part among the compensation paid subject to the agreement by Guangdong
Expressway Co., Ltd. within 30 workdays after Guangdong Fokai Expressway Co., Ltd.
receives such compensation.
Guangdong Highway Performance Upon the mutual agreement by the Company and the Guangdong Provincial Highway The period of Fulfill the
August 26,2015
Construction Co., Ltd. commitment Construction Co., Ltd., the predicted annual net profit of the Guangzhou Guangzhu Traffic compensation commitment
34
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
s and Investment Management Co., Ltd. is 230.3606 million yuan in 2016, 263.2329 million yuan and the date of normally
compensatio in 2017, and 286.5018 million yuan in 2018. Within the term of compensation, if the completion of
n cumulated net profit of Guangzhou Guangzhu Transportation Investment Management Co., the agreement.
arrangements Ltd. by the end of a year is lower than the accumulated predicted net profit of that year, the
Company will buy back the compensated shares at the price of 1 yuan from the Guangzhou
Guangzhu Transportation Investment Management Co., Ltd. that should be calculated in
accordance with the agreement, and deregister such shares.
The commitment to avoid horizontal competition: 1. the Company and the companies that are
under direct or indirect control of the Company, except Guangdong Expressway and its
This
subsidiaries, will not use the controlling shareholders to damage the legitimate interests of the
commitment
business activities of Guangdong Expressway and its medium and small shareholders and its
is valid from
subsidiaries. 2. The Company and the companies that are under direct or indirect control of
the date of
the Company, except Guangdong Expressway and its subsidiaries, will not use the
signing this
information acquired from Guangdong Expressway and its subsidiaries to engage in core
Commitment letter of
Guangdong business which competes with Guangdong Expressway and its subsidiaries and will not
s on commitment
Expressway Co., Ltd., conduct any activity that damages or may damage the legitimate interests of Guangdong
horizontal to the date on Fulfill the
Guangdong Highway Expressway and its medium and small shareholders and its subsidiaries. 3. As for the transfer
competition, which the commitment
Construction Co., of toll roads, bridges, tunnels and related ancillary facilities or equity invested, constructed or June 26,2015
related shares of normally
Ltd., Guangdong managed by the Company or companies, that are under direct or indirect control of the
transaction Company is
Communication Company, except Guangdong Expressway and its subsidiaries to the Company or any
and capital no longer
Group Co., Ltd. company that is under direct or indirect control of the company, unless it is a transferee
occupation controlled by
expressly designated by the relevant government departments, to the extent permitted by
the controlling
relevant laws and regulations, Guangdong Expressway has the right of preemption under the
shareholder of
same conditions. 4. In the future, if the Company and the companies that are under direct or
the
indirect control of the Company, except Guangdong Expressway and its subsidiaries, invest
Guangdong
and construct a parallel highway or a highway in the same direction on either side of the
Expressway.
Highway within 20 km, to the extent permitted by relevant laws and regulations, except in the
project whose investors have been expressly specified by the relevant government
35
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
departments, Guangdong Expressway has the priority right to invest ahead of the Company
and the companies that are under direct or indirect control of the Company, except
Guangdong Expressway and its subsidiaries,. This commitment, when signed, constitutes the
irrevocable legal obligations of the Company. If the circumstances arise that cause damage to
Guangdong Expressway because of the Company’s breach of the commitment, the Company
will bear the corresponding liability according to laws. The commitment to reduce and
regulate the connected transactions: 1. After the completion of this major asset reorganization,
the Company and the companies that are under direct or indirect control of the Company,
except Guangdong Expressway and its subsidiaries, and other related parties will try to avoid
the connected transaction with Guangdong Expressway and its subsidiaries; the necessary and
unavoidable connected transactions shall be conducted in accordance with the
principles of fairness and compensation of equal value, the transaction prices shall be
determined according to the reasonable market price, the transaction approval procedures and
the disclosure obligations should be conducted in accordance with relevant laws, regulations
and regulatory documents, to effectively protect the interests of medium and small
shareholders of Guangdong Expressway . 2. The Company guarantees to be in strict
accordance with relevant laws and regulations, the regulations and regulatory documents
promulgated by CSRC, the business rules promulgated by Shenzhen Stock Exchange (SSE)
and the rules of the system such as the Articles of Association of Guangdong Provincial
Expressway Development Co., Ltd., exercise the shareholder rights and fulfill the obligations
of shareholders according to laws, without using controlling shareholders’ holding position to
seek improper interests, without damage to the legitimate rights and interests of Guangdong
Expressway and its medium and
small shareholders. Once in violation of the above-stated commitment, the company conducts
a transaction with Guangdong Expressway and its subsidiaries, causing damages to them, it
shall bear the liability for compensation according to laws. The date of this commitment is
valid from the date of signing the letter of commitment to the date of the Company's ceasing
to be controlled by the controlling shareholder of the Company.
36
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
(1) The commitment to the authenticity, accuracy and completeness of the information (1) a promise
provided: 1. The Company guarantees to provide the information related to the major asset without a
reorganization for Guangdong Expressway and ensures its authenticity, accuracy and commitment
completeness; if there is false, misleading statement or major omission in the information period.
provided, which causes losses to Guangdong Expressway or the investors, the Company will (2) the date of
assume the compensation liabilities in accordance with laws. If it is suspected that there is the validity of
false, misleading statement or major omission in the information disclosed or provided for the the term
major asset reorganization, and it is investigated by the judiciary authorities or by CSRC, commitment
before the clear conclusion of the case is reached, the Company will suspend the transfer of from the date
shares of Guangdong Expressway held by the Company, and within two business days upon of this letter of
receipt of the notice of filing a case and inspection, the written application for suspending the commitment
transfer and the stock account should be submitted to the Board of Directors of Guangdong to the date of
Expressway , and the Board of Directors of Guangdong Expressway , shall, on behalf of the the company Fulfill the
Guangdong
Other Company apply for the lockout towards Shenzhen Securities Exchange (SSE) and no longer is commitment
Communication June 18,2015
commitment Registration and Clearing Company; if the application for the lockout is not submitted in two the date of the normally
Group Co., Ltd.
business days, after verification the Board of Directors authorized by the Company will controlling
directly submits the Company’s identity and account information to the Registration and shareholder of
Clearing Company and apply for the lockout; if the Board of Directors fails to do so, the Guangdong.
Securities Exchange and the Registration and Clearing Company will be authorized to directly (3) the date of
lock the related shares. If it is found that the Company has illegal circumstances, the company the validity of
promises that the lockout shares should be automatically used for the compensation for the the term
relevant investors. (2) The commitment to maintain the independence of the listed company. commitment
The Company and the companies, that are under direct or indirect control of the Company, to the
except Guangdong Expressway and its holding subsidiaries, have increased their shares of completion of
Guangdong Expressway after the completion of the major asset reorganization; however they the
will not damage the independence of Guangdong Expressway . They will continue to be completion of
separated from Guangdong Expressway in assets, personnel, finance, organization and the
business and strictly abide by the relevant provisions on the independence of listed companies completion of
37
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
of CSRC. They don’t illegally use Guangdong Expressway to provide guarantee, or occupy the major
its capital so as to keep and maintain its independence and safeguard the legitimate rights and asset
interests of other shareholders of Guangdong Expressway . All losses will be borne by the restructuring.
Company if it breaks the above commitments and causes losses to Guangdong Expressway .
(1) The commitment to the authenticity, accuracy and completeness of the information
(1) a promise
provided: The Company guarantees that there is no false, misleading statement or major
without a
omission in the information disclosure and application documents for the major asset
commitment
reorganization. If it is suspected that there is false, misleading statement or major omission in
period.
the information disclosed or provided for the major asset reorganization, and it is investigated
(2) the date of
by the judiciary authorities or by CSRC, before the clear conclusion of the case is reached, the
the validity of
Company will suspend the transfer of shares of Guangdong Expressway held by the
the term
Company, and within two business days upon receipt of the notice of filing a case and
commitment
inspection, the written application for suspending the transfer and the stock account should be
from the date
submitted to the Board of Directors of Guangdong Expressway, and the Board of Directors of
of this letter of
Guangdong Highway Guangdong Expressway, shall, on behalf of the Company, apply for the lockout towards Fulfill the
commitment
Construction Co., Other Shenzhen Securities Exchange (SSE) and Registration and Clearing Company; if the commitment
June 26,2015 to the date of
Ltd.,Guangdong commitment application for the lockout is not submitted within two business days, after verification the normally
the company
Expressway Co., Ltd. Board of Directors authorized by the Company will directly submits the Company’s identity
no longer is
and account information to the Registration and Clearing Company and apply for the lockout;
the date of the
if the Board of Directors fails to do so, the Securities Exchange and the Registration and
controlling
Clearing Company will be authorized to directly lock the related shares. If it is found that the
shareholder of
Company has illegal circumstances, the Company promises that the lockout shares should be
Guangdong.
automatically used for the compensation for the relevant investors. (2) The commitment to
(3) the date of
maintain the independence of the listed company. The Company and the companies, that are
the validity of
under direct or indirect control of the Company, except Guangdong Expressway and its
the term
subsidiaries, have increased their shares of Guangdong Expressway after the completion of
commitment
the major asset reorganization; however they will not damage the independence of
to the
Guangdong Expressway. They will continue to be separated from Guangdong Expressway in
38
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
assets, personnel, finance, organization and business and strictly abide by the relevant completion of
provisions on the independence of listed companies of CSRC. They will not illegally use the
Guangdong Expressway to provide guarantee, or occupy its capital, and they will keep and completion of
maintain the its independence and safeguard the legitimate rights and interests of other the
shareholders of it. (3)The company confirmed and guaranteed: 1, the company set up and completion of
effectively exist in accordance with the law of the enterprise, the company has an independent the major
legal personality, independent of the ability to assume legal responsibility. 2, as the asset
commitment letter issued by the Japanese, the company does not exist in the listed company restructuring.
acquisition management approach "the provisions of Article 6 of the acquisition of a listed
company may not be under any of the following circumstances: (1) bears a relatively large
amount of debt, due and outstanding, and in persistent state; (2) in recent 3 years, have major
violations or suspected of major violations; (3) in recent 3 years, have severe stock market
acts of dishonesty; (4) the laws, administrative regulations and recognized by the CSRC shall
not purchase of Listed Companies in other circumstances. This commitment is issued to the
completion of the reorganization before, if the company does not conform to the fact that
these commitments, the company that will be occurring in the facts, from within 3 days notice
of Guangdong expressway, otherwise it will bear incurred in the full legal responsibility.
Related land,
Guangdong Communication Group Co., Ltd. commits: for the lands, real estates and allocated real estate
lands for which the Guangdong Fokai Expressway Co., Ltd. and Guangzhu Section of Jingzhu management
Expressway Co., Ltd. have not gone through the procedures of ownership registration (1) the authority Fulfill the
Guangdong
Other property rights of the above-mentioned lands are clear, and can be legally used by the target certificate or commitment
Communication January 19,2016
commitment company; (2) assist or ask the Guangdong Highway Co., Ltd. and Guangdong Highway related land to normally
Group Co., Ltd.
Construction Co., Ltd to assist in conducting the ownership registration of the real estates; (3) complete the
the land can continue to be used unscathed before the ownership registration; (4) once losses transfer
arise, bear the losses of Guangdong Expressway according to its shareholding ratio. procedures of
the day.
39
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
In favor of safeguarding the interests of listed companies under the situation, will urge the
Fokai company and Guangzhou Zhuhai east company in accordance with the following plan
registration: 1, hire a professional organization, the relevant land and real estate information
for further screening and combing, and further to find out the management problems and within 3 years
difficulties relating to land and property management authority to prove the existence of the 2; from the date
the establishment of land and real estate registration work group, and hire a professional of completion
Guangdong Fulfill the
Other agency, organize and improve the relevant land and real estate registration documents; 3, to July 19,2017 of the
Communication commitment
commitment accelerate the processing speed, the completion of 3 years for the relevant land and real estate reorganized
Group Co., Ltd. normally
registration formalities completed in this major asset restructuring, which, for Guangzhou underlying
Zhuhai east company in Guangzhou City, the administrative area of Zhuhai cityhave not for asset transfer
the relevant certificate of ownership of land and real estate (the part of the land, real estate If
not covered by the letter of confirmation of the relevant government, the registration
procedures shall be completed within 3 years from the date of the completion of this major
asset reorganization.
Commitments
made upon first
issuance or
refinance
Equity incentive
commitment
Other
commitments
made to
minority
shareholders
Completed on
No
time(Y/N)
40
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Time of making Period of
Commitment Commitment maker Type Contents Fulfillment
commitment commitment
Where the
Through the deliberation and approval of the 11th temporary meeting of the 8th Board of Directors and the 1st temporary general meeting of shareholders in 2017, it agrees on
commitment is
the change of Guangdong Traffic Group Co., Ltd. commitments about relevant land and housing handling the ownership registration procedures of the asset reorganization subject
overdue and has
Guangdong Fokai Expressway Co., Ltd. and Jingzhu Expressway Guangzhu Section Co., Ltd. among major assets reorganization for which, the company issues shares, pay for
not been
assets purchase in cash and collect the supporting capital in 2016. The same above is changed into that to speed up the certificate handling and to complete handling of relevant
fulfilled, then the
ownership registration procedures related to the land and housing within 3 years after such major assets reorganization, among which, the ownership registration procedures of the
specific reasons
relevant land and housing (excluded by relevant governmental confirmation letters) of Guangzhudong company in Guangzhou and Zhuhai administrative regions, which are not
for the failure to
equipped with the ownership certificates, shall also be completed within the same time above. Refer to the Announcement on the Completion Progress Condition of the Major
complete and the
Assets Reorganization Commitments and the Completion Period of the Dominant Shareholder ’ s Application for Changing Partial Commitments and Announcement of the
next work plan
Resolution of the 11th Session (Temporary) of the 8th Board of Directors on July 4, 2017 and the Announcement of the Resolution of the 1st Temporary General Meeting of
shall be
Shareholders on July 20, 2017 of the company on Securities Times, China Securities Journal and Shanghai Securities News for details about the partial commitments change.
specified
41
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □Not applicable
Asset or Project
Start date of End date of the
Name of Forecast Actual Reason for less Disclosure date of Reference for the
the forecasting forecasting
Earnings earnings earnings than forecast the Forecast Forecast
period period
Forecast
The part of the
reconstruction
and expansion
project of
Sanbao-Shuiko
u section of
www.cninfi.com.cn .
Fokai
Announcement on
Fokai Expressway
December matters related to
Expressway Co., January 1,2016 40,311.97 37,376.11 was opened to July 7,2016
31,2018 major asset
Ltd. traffic ahead of
restructuring
schedule and
commitments
converted to
fixed assets,
and
depreciation
increased.
Guangzhou www.cninfi.com.cn .
Guangzhu Announcement on
Traffic December matters related to
January 1,2016 28,650.18 32,475.62 Not applicable July 7,2016
Investment 31,2018 major asset
Management restructuring
Co., Ltd. commitments
Note:During the period of profit compensation, that is, from 2016 to 2018, the cumulative net profit exceeding the cumulative
forecast net profit amount is 60.7385 million yuan, and the cumulative net profit commitment completion rate is 106.65%. For
detailed information on performance commitments and compensation commitments, please refer to the company's Notice on
Commitments Related to Major Asset Restructuring.
The commitments of the operating earnings made by the company’s shareholder and relevant transaction parties
□ Applicable √ Not applicable
Achievement of performance commitments and its impact on goodwill impairment tests.
IV. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
Nil
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
42
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
VI. Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√Applicable □ Not applicable
On June 26,2018，The Ministry of Finance issued the Notice on Revising and Issuing the Format of General
Enterprise Financial Statements for 2018 (Caikuai [2018] No. 15), which adjusted the format of enterprise
financial statements accordingly and merged the original "notes receivable" and "accounts receivable" line items
into "notes receivable and accounts receivable"; The items in the original "interest receivable", "dividend
receivable" and "other receivables" lines are merged into "other receivables"; The items in the original "fixed
assets" and "fixed assets liquidation" lines are merged into "fixed assets"; The items in the original "engineering
materials" and "construction in progress" lines are merged into "construction in progress"; The items in the
original "notes payable" and "accounts payable" lines are merged into "notes payable and accounts payable"; The
items in the original "interest payable", "dividend payable" and "other payables" lines are merged into "other
payables"; The items in the original "long-term payables" and "special payables" lines are merged into "long-term
payables"; In the income statement, the detailed items of "management expenses" and "research and development
expenses" are broken down under the item of "management expenses"; The detailed items of "interest expense"
and "interest income" are broken down under "financial expense" in the income statement. The Company adopts
retrospective adjustment method for this accounting policy change, and retroactively adjusts the items reported in
2017 financial statements.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
Nil
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
√Applicable □Not applicable
The Company had 5 subsidiaries included in the scope of consolidation in 2018. The scope of the
consolidated financial statements decreased by 1 compared with the previous period-for having the write off
subsidiary. In August 2018, Guangdong Fokai Expressway Co., Ltd. completed the industrial and commercial
cancellation, and obtained the “Notice of Approval for Cancellation Registration” and the “Notice of Permit for
Cancellation Registration”. From August 2018, Guangdong Fokai Expressway Co., Ltd. was no longer included in
the scope of consolidated statements.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Zhengzhong Zhujiang Certified Public Accountants Co., Ltd.
Remuneration for domestic accounting firm (Ten thousands
120
yuan)
Successive years of the domestic CPAs offering auditing services 8
43
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Name of domestic CPA Feng Kuncong,Xu Jihong
Continuous fixed number of year for the auditing service
Feng Kuncong( 3 years),Xu Jihong(4 years)
provided by CPA in domestic CPA Firms
Has the CPAs been changed in the current period
□ Yes √No
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing
√Applicable □Not applicable
2017 shareholders' general meeting of the Company examined and adopted the Proposal for Engaging Auditing
Body for Internal Control. The Company was approved to engage Guangdong Zhengzhong Zhujiang Certified
Public Accountants Co., Ltd. as the auditing body for internal control of the Company for 2018. The audit fee
shall be less than 300,000 yuan.
X. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
XI. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
Nil
XII. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
Nil
XIII. Situation of Punishment and Rectification
□Applicable √ Not applicable
Nil
XIV. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XV. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
Nil
XVI. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
44
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Nil
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
Nil
3. Related-party transitions with joint investments
□Applicable √ Not applicable
Nil
4. Credits and liabilities with related parties
√Applicable □ Not applicable
There are non-operational contact of related credit and debts in the Company
□Yes √No
Nil
5. Other significant related-party transactions
√Applicable □ Not applicable
1.The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal about Singing the Contract of Entrustment of Operation and Management of 2018-2020 of Guangzhu
North Section of Guangdong Jingzhu Expressway between the Guangzhu Section Company and the Guangzhu
North Section Company.Agreed that Jingzhu Expressway Guangzhu Section Co., Ltd signs the Contract of
Entrustment of Operation and Management of 2018-2020 of Guangzhu North Section of Guangdong Jingzhu
Expressway with the Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd, with the total contract
amount not exceeding 60 million yuan.
2. The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal about the Entrustment of Lease and Operation of Communication Pipe along the Expressways of
Guangdong Provincial Expressway Development Co.,Ltd’s Holding Subsidiaries and Branch Company.Agreed
that Our subsidiaries-Guangfo Expressway Co., Ltd and Jingzhu Expressway Guangzhu Section Co., Ltd and our
branch company-Guangdong Provincial Expressway Development Co., Ltd Fokai Branch sign the
Communication Pipeline Lease Contract with the Guangdong Litong Technology Investment Co., Ltd, which is to
entrust the communication pipeline ( including main line , ramp , structure and auxiliary facilities ) along the
expressway under the jurisdiction to Guangdong Litong Technology Investment Co.,Ltd for external lease and
maintenance, with the total lease income of about 79.27 million yuan.
3. The 16th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal of Signing the Contract of Operation Entrustment of Un-Pillar Advertisement between the Jingzhu
Expressway Guangzhu Section Co., Ltd and the Guangdong High Speed Media Co., Ltd.Agreed that Jingzhu
Expressway Guangzhu Section Co., Ltd signs the Contract of Operation Entrustment of Un-Pillar Advertisement
of Guangzhu Section of Beijing-Zhuhai Expressway with Guangdong High Speed Media Co., Ltd. It is estimated
that the total contract amount is not more than 10 million yuan.
4. The 17th (provisional) meeting of the Eighth board of directors of the Company Examined and Adopted of the
Proposal on Borrowing Entrusted Loans to Guangdong Guanghui Expressway Co., Ltd.Agreed that the company
borrowed entrusted loans from Guangdong Guanghui Expressway Co., Ltd. The total amount of loans was 180
45
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
million yuan. According to the actual needs of the company, withdrawals were made for a period of 1 year, and
the interest rate was lowered by 10% according to the benchmark interest rate of the People's Bank of China for
the same period. Used to supplement working capital. After the entrusted loan expires, it can be renewed
according to the original conditions.
5. The 17th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal Concerning the Company Daily Associated Transactions Predicted of 2018. Agree on the predicted daily
associated transactions for the company headquarters, wholly-owned and holding subsidiaries of 2018, whose
amount in total is 63.1779 million yuan.
6. The 20th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal on Borrowing Entrusted Loans to Guangdong Jiangzhong Expressway Co., Ltd.,Agree that our company
will borrow unsecured entrusted loans from Guangdong Jiangzhong Expressway Co., Ltd., with a loan amount of
36 million yuan, and withdraw funds according to the actual needs of the company. The borrowings are used for
daily business turnover, with a term of 5 years, using “1+1”. +1+1+1" mode, that is, one loan period per year. If
we do not propose repayment, the loan will be automatically transferred to the next one-year period. The interest
rate is reduced by 10% according to the one-year lending benchmark interest rate announced by the People's Bank
of China.
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for
Description of provisional announcement
announcement disclosing provisional announcements
Announcement on related party transactions
January 31,2018 www.cninfo.com.cn
entrusted by subsidiaries
Announcement on Related Transactions of
Non-column Advertising Entrusted Operation of
January 31,2018 www.cninfo.com.cn
Holding Subsidiary Jingzhu Expressway Guangzhu
Section Co., Ltd.
Announcement on Related Transactions of
Entrusted Leasing Operation of Communication
January 31,2018 www.cninfo.com.cn
Pipeline along the Expressway of Guangdong
Expressway Holding Subsidiary and Branch
Related transaction announcement March 29,2018 www.cninfo.com.cn
Announcement of Daily Associated Transactions
March 29,2018 www.cninfo.com.cn
Predicted of 2018
Related transaction announcement August 28,2018 www.cninfo.com.cn
XVII. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
Nil
(2) Contract
□ Applicable √ Not applicable
Nil
(3) Lease
46
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
□Applicable √ Not applicable
Nil
2.Guarantees
√Applicable□Not applicable
（1）Guarantees
47
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Ten Thousands yuan
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant disclosure Date of happening Complete
Amount of Actual mount of Guarantee for associated
Name of the Company date/No. of the (Date of signing Guarantee type Guarantee term implementation
Guarantee guarantee parties (Yes or no)
guaranteed amount agreement) or not
Guangdong
Communication Group May 11,2012 172,500 May 31,2013 172,500 Pledge 2012.9.25-2021.7.25 No Yes
Co.,Ltd
Total of external guarantee Total balance of actual external guarantee
172,500 172,500
approved at Period-end(A3) at Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guarantee
Name of the Relevant disclosure Date of happening Actual Complete
Amount of Guarantee for
Company date/No. of the (Date of signing mount of Guarantee term implementation
guarantee type associated parties
guaranteed guaranteed amount agreement) guarantee or not
(Yes or no)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Date of Guarantee
disclosure Complete
Name of the Amount happening Actual for
date/No. of Guarantee implementation
Company of (Date o mount of Guarantee term associated
the type or
guaranteed guarantee signing guarantee parties
guaranteed not
agreement) (Yes or no)
amount
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual guarantee at Period-end
Total of guarantee at Period-end（A3+B3+C3） 172,500 172,500
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net assets of the
17.99%
Company(that is A4+B4+C4)
Including
Amount of guarantee for shareholders, actual controller and its associated parties（D） 172,500
Total guarantee Amount of the abovementioned guarantees（D+E+F） 172,500
48
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
（2）Illegal external guarantee
□ Applicable √ Not applicable
Nil
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
Nil
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
Nil
4. Other significant contract
□ Applicable √ Not applicable
Nil
XVIII.Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
In 2018, the expressway toll-free policy for small-sized passenger cars with less than 7 seats for main
holidays, intermittent free-charge release and green-channel preferential policy were still executed, Guangfo
company, Fokai company and Guangzhudong company have completed each safety and smooth traffic task
successfully based on the thorough understanding, complete personnel dispatching, duties performance and
measures implementation.
1. Several measures are implemented synchronously to provide drivers and the public with the smooth,
convenient, comfortable and safe driving environment and build the harmonious relationship between vehicles
and roads jointly. The company is located in Guangfo and Fokai sections among Pearl River Delta developed zone,
in which, the traffic flow is large and the charging squares and lanes resources are limited due to the limitation of
the previous infrastructure construction scale. Then, with the influence of the north-ring expressway as well as
Gonghe-Siqian bottleneck-type section, the congestion and slow traffic become normal. The traffic flow peak in
holidays lasts long with strong directionality and plenty of emergencies and therefore the vehicle free toll in
holidays catches high social attention. Each toll-station lanes are reconstructed with the whole-weighing-platform
weighing equipment, which results in the larger pressure of the smooth traffic guarantee by stations. In light of
such condition, the company motivated through organization the section companies to perfect and detail the
smooth traffic guarantee working schemes continuously, summarize previous experience, conduct emergency
exercises and make the production line exercise various smooth-traffic measures skillfully on one hand; on the
49
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
other hand strengthen the service consciousness and conduct the business and civilized service trainings. Through
efforts of all parties, the section for the company is free from artificial vehicle congestion and mass incidents for
the whole year with the complaints limited to zero, through which, the safety and reliability of the expressway
traffic environment were guaranteed.
2. Respond positively to the governmental policies, provide preferential, deduction and exemption policies
per laws and reduce the cost of enterprise transportation and the masses travel.
2.Overview of the targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in the period and bas no follow-up plan
either.
3.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
No
XIX. Explanation on other significant events
□ Applicable √Not applicable
Nil
XX. Significant event of subsidiary of the Company
√ Applicable □Not applicable
The 15th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal of matters relevant to the Zhuhai Municipal People's Government's Taking-back of Guangzhou-Macao
Expressway Zhuhai Section's 4.213 km Expressway asset compensation and asset transfer" was examined and
approved.1. Agreed that Zhuhai High-tech Zone Management Committee uses 206 million yuan of compensation
(excluding the relevant taxes and fees, and the taxes and fees compensation subjecting to the actual amount of
payment) to take back the Guangdong-Macao Expressway Zhuhai Section's 4.213 km (Pile Number K0 +945-K5
+158)Expressway Asset. 2. Agreed that Jingzhu Expressway Guangzhu section Co., Ltd-the company's holding
subsidiary-shall, after performed the relevant decision-making procedures, enter into the Compensation and Asset
transfer Agreement with Zhuhai High-Tech Zone Management Committee.
On January 31, 2018, Jingzhu Expressway Guangzhu Section Co., Ltd. received the first compensation of
100 million yuan from Zhuhai High-tech Zone Management Committee.
On July 3, 2018, Jingzhui Expressway Guangzhu Section Co., Ltd. received the equity value compensation
amount of 106 million yuan for the asset transfer from Zhuhai High-tech Zone Management Committee. As of
that date, Guangzhu East Company has received all the compensation of 260 million yuan for the equity value
compensation of the asset transfer and has completed the transfer of the asset with the Zhuhai High-tech Zone
Management Committee in accordance with the “Compensation and Asset Transfer Agreement”.
Description of provisional announcement Date of disclosing Description of the website for
50
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
provisional announcement disclosing provisional
announcements
Announcement of Resolutions of the 15th (Provisional) Meeting of December 30,2017 www.cninfo.com.cn
the Eighth Board of Directors
Announcement of matters relevant to the Zhuhai Municipal December 30,2017 www.cninfo.com.cn
People's Government's Taking-back of Guangzhou-Macao
Expressway Zhuhai Section's 4.213 km Expressway asset
compensation and asset transfer"
Progress Announcement of matters relevant to the Zhuhai February 2,2018 www.cninfo.com.cn
Municipal People's Government's Taking-back of
Guangzhou-Macao Expressway Zhuhai Section's 4.213 km
Expressway asset compensation and asset transfer"
Progress Announcement of matters relevant to the Zhuhai July 5,2018 www.cninfo.com.cn
Municipal People's Government's Taking-back of
Guangzhou-Macao Expressway Zhuhai Section's 4.213 km
Expressway asset compensation and asset transfer"
51
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalization
Share Bonus
of common Other Subtotal Quantity Proportion
allotment shares
reserve fund
1.Shares with conditional
1,273,170,302 60.89% 101,325 101,325 1,273,271,627 60.90%
subscription
1.State-owned shares 410,002,853 19.61% 0 0 410,002,853 19.61%
2.State-owned legal person
521,393,021 24.94% 131,578,946 131,578,946 652,971,967 31.23%
shares
3.Other domestic shares 341,774,428 16.34% -131,480,434 -131,480,434 210,293,994 10.06%
Including ：Domestic Legal
341,225,786 16.32% -131,727,511 -131,727,511 209,498,275 10.02%
person shares
Domestic natural person
548,642 0.02% 247,077 247,077 795,719 0.04%
shares
4.Foreign shares 0 0.00% 2,813 2,813 2,813 0.00%
Foreign natural person shares 0 0.00% 2,813 2,813 2,813 0.00%
II.Shares with unconditional
817,635,824 39.11% -101,325 -101,325 817,534,499 39.10%
subscription
1.Common shares in RMB 468,885,824 22.43% 468,885,824 22.43%
2.Foreign shares in domestic
348,750,000 16.68% -101,325 -101,325 348,648,675 16.67%
market
III. Total of capital shares 2,090,806,126 100.00% 0 0 2,090,806,126 100.00%
Reasons for share changed
√ Applicable □Not applicable
Note 1: During the reporting period, 131,578,946 shares held by two shareholders changed from “domestic legal person shareholding” to “state-owned legal person
shareholding” due to changes in the holder's category.
52
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Note 2: During the reporting period, 148,565 shares of "domestic legal person holding" were converted to "domestic natural person holding" and "overseas natural
person holding" shares.
Note 3: During the reporting period, 101,325 shares of "unlimited conditional sale shares" were converted into "limited conditional sale shares" held by natural
persons in China.
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Implementation progress of the share repurchases
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year
and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
53
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In RMB
Number of Number of Increased Restricted Reason for Date of
Shareholder Initial Restricted
Unrestricted Shares Restricted Shares Shares in the Restricted Restriction
Name Shares
This Term This Term End of the Term Shares Removal
Wang Executive
0 0 101,325 101,325 Unknown
Chunhua locking stock
Total 0 0 101,325 101,325 -- --
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √ Not applicable
3.About the existing employees’ shares
□Applicable√Not applicable
54
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total
preference
shareholders
Total with
Total number of The total number o
shareholders at voting rights
common f preferred shareho
the end of the recovered at
shareholders at the end 55,254 58,069 lders voting rights 0 end 0
of the month from the
restored at period-e of last month
date of disclosing
reporting period nd (if any) before annual
the annual report
report
disclosed(if
any)
Particulars about shares held above 5% by shareholders or top ten shareholders
Changes Number of share
Proportion Amount of pledged/frozen
Nature of Number of shares in Amount of restricted
Shareholders of shares un-restricted shares
shareholder held at period -end reporting shares held State of
held（%） held Amount
period share
Guangdong
State-owned
Communication 24.55% 513,382,595 410,002,853 103,379,742
legal person
Group Co.,Ltd
Guangdong
Highway State-owned
22.30% 466,325,020 466,325,020
Construction Co., legal person
Ltd,
Domestic
Yadong Fuxing non
Yalian Investment State-owned 9.68% 202,429,149 202,429,149 Pledge 156,652,500
Co., Ltd. Legal
person
Tibet Yingyue
Investment State-owned
4.84% 101,214,574 101,214,574
Management Co., legal person
Ltd.
Guangdong
State-owned
Expressway Co., 2.53% 52,937,491 52,937,491
legal person
Ltd.
Guangfa
State-owned
Securities Co., 1.45% 30,364,372 30,364,372
legal person
Ltd.
Agricultural Bank
of China－
Jingshun Great
Wall Energy Other 1.39% 29,062,189
Infrastructure
Mixed Securities
Investment Fund
55
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Domestic
natural
Feng Wuchu 1.08% 22,572,543
person
shares
UBS AG
Foreign
LONDON 0.70% 14,691,031
legal person
BRANCH
Foreign
Xinyue Co., Ltd. 0.63% 13,201,086
legal person
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway Construction Co., Ltd,
Explanation on associated
Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is relationship between other
relationship or concerted action
shareholders and whether they are persons taking concerted action specified in the Regulations on Disclosure of
of the above shareholders
Information about Change in Shareholding of Shareholders of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the reporting Share type
Name of the shareholder
period Share type Quantity
Guangdong Communication Group Co.,Ltd 103,379,742 RMB Common shares 103,379,742
Agricultural Bank of China－Jingshun
Great Wall Energy Infrastructure Mixed 29,062,189 RMB Common shares 29,062,189
Securities Investment Fund
RMB Common shares 20,665,204
Feng Wuchu 22,572,543 Foreign shares placed in
1,907,339
domestic exchange
Foreign shares placed in
UBS AG LONDON BRANCH 14,691,031 14,691,031
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
VALUE PARTNERS HIGH-DIVIDEND Foreign shares placed in
10,634,903 10,634,903
STOCKS FUNDS domestic exchange
Khazanah Nasional Berhad－self fund 10,522,779 RMB Common shares 10,522,779
Foreign shares placed in
MATTHEWS CHINA DIVIDEND FUND 8,336,021 8,336,021
domestic exchange
ICBC－Jingshun Great Wall Shanghai,
Hong Kong and Shenzhen Select Stock 8,321,695 RMB Common shares 8,321,695
Investment Fund
Explanation on associated relationship or
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway Construction
consistent action among the top 10
Co., Ltd, Guangdong Expressway Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is
shareholders of non-restricted negotiable
relationship between other shareholders and whether they are persons taking concerted action specified in
shares and that between the top 10
the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed
shareholders of non-restricted negotiable
Companies.
shares and top 10 shareholders
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.
56
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders: Legal person
Name of the Controlling Legal
Date of incorporation Organization code Principal business activities
shareholder representative/Leader
Equity management, organization
of asset reorganization and
optimized allocation, raising
funds by means including
mortgage, transfer of property
rights and joint stock system
transformation, project
investment, operation and
management, traffic infrastructure
Guangdong Communication
Deng Xiaohua June 23,2000 91440000723838552J construction, highway and railway
Group Co., Ltd.
project operation and relevant
industries, technological
development, application,
consultation and services,
highway and railway passenger
and cargo transport, ship industry,
relevant overseas businesses;
Value added telecommunication
services.
Equity in other domestic and
foreign listed companies held
Guangdong Communication Group Co., Ltd. holds 74.12% equity of Guangdong Nanyue Logistics Co., Ltd., a
by the controlling shareholder
company listing H shares.
by means of control and
mutual shareholding in the
reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Organization
Name of the actual controller representative Date of incorporation Principal business activities
code
/Leader
As an ad hoc body directly under the
Guangdong Provincial People's
State-owned Assets supervision
Government, commissioned by the
and administration Commission
provincial government to fulfill the
of Guangdong Provincial Li Cheng June 26,2004 Not learn
State-owned asset investor, regulatory
People’s Government
enterprises to implement the rights,
obligations and responsibilities, pipe
asset control and people management.
Equity of other As an ad hoc body directly under the Guangdong Provincial People's Government, commissioned
57
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
domestic/foreign listed by the provincial government to fulfill the State-owned asset investor, regulatory enterprises to
company with share implement the rights, obligations and responsibilities, pipe asset control and people management.
controlling and share
participation by
controlling shareholder in
reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Particulars about other legal person shareholders with over 10% shareheld
√ Applicable □Not applicable
Legal person/person Date of
Legal person shareholder Register capital Main operation business or management activities
in charge of the unit foundation
Highway, bridge, tunnel bridge, traffic infrastructure
construction, investment and management, technical
Guangdong Highway 8827.36846696 consulting, leasing of road construction machinery;
Tong Degong April 16,1987
Construction Co., Ltd. million yuan sales of construction materials, construction machinery
equipment; vehicle rescue services
(operated by the branch).
58
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
59
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
60
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Shares Amount of Amount of shares Other
Starting Expiry
Office held at the shares increased decreased at the changes Shares held at the
Name Positions Sex Age date of date of
status year-begin at the reporting reporting increase/ year-begin(share)
tenure tenure
(share) period(share) period(share) decrease
Zheng Board In January July
Male 49
Renfa Chairman office 4,2017 21,2019
Director,
Wang In October July
General Male 54 135,100 135,100
Chunhua office 19,2015 21,2019
Manager
Director,
In April July
Wang Ping Chief Female 54 3,500 3,500
office 21,2014 21,2019
Engineer
Director,CF In December July
Fang Zhi Male 55
O office 31,2015 21,2019
In July July
Chen Min Director Male 55
office 19,2017 21,2019
Zeng In July July
Director Male 48
Zhijun office 21,2016 21,2019
In December July
Du Jun Director Male 53
office 4,2016 21,2019
Zhuo In December July
Director Male 47
Weiheng office 4,2017 21,2019
In July July
Cao Yu Director Male 33 150,000 150,000
office 21,2016 21,2019
In July July
Huang Hai Director Male 43
office 21,2016 21,2019
Independen In April April
Xiao Duan Female 60
t director office 16,2013 16,2019
Gu Independen In July July
Male 53
Naikang t director office 21,2016 21,2019
Bao Independen In July July
Male 40
Fangzhou t director office 21,2016 21,2019
Zhang Independen In December July
Male 53
Hua t director office 4,2017 21,2019
Liu Independen In Male 53 December July
61
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Shares Amount of Amount of shares Other
Starting Expiry
Office held at the shares increased decreased at the changes Shares held at the
Name Positions Sex Age date of date of
status year-begin at the reporting reporting increase/ year-begin(share)
tenure tenure
(share) period(share) period(share) decrease
Zhonghua t director office 4,2017 21,2019
Chairman
of the In March July
Ling Ping Female 55
Supervisory office 23,2015 21,2019
Committee
Li In July July
Supervisor Female 47
Haihong office 21,2016 21,2019
In Septembe July
Ke Lin Supervisor Female 49
office r 15,2017 21,2019
Cao In July July
Supervisor Female 50
Xiaoying office 21,2016 21,2019
Dimiss March March
Li Mei Supervisor Female 49 123,205 7,700 115,505
ion 22,2000 30,2018
Yang In March July
Supervisor Male 36
Tianshu office 30,2018 21,2019
Deputy
In October July
Zuo Jiang General Female 46
office 19,2015 21,2019
Manager
Deputy
In August July
Cheng Rui General Male 44
office 28,2017 21,2019
Manager
legal In July July
He Bing Female 51
counsel office 23,2012 21,2019
Yang Secretary to In August July
Male 49
Hanming the Board office 28,2017 21,2019
Total -- -- -- -- -- -- 411,805 0 7,700 0 404,105
Note: 1. If the position is an independent director, it must be separately indicated.
2. The relevant circumstances of the directors, supervisors and senior management personnel who no longer
serves at the end of the reporting period but served in the position from the beginning of this reporting period must
still be included in this form.
3. The commencement date of term of who was re-elected during the previous term shall be the date of the first
term commencement date.
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
62
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Name Positions Types Date Reason
Li Mei Supervisor Dimission January 5,2018 Resigned
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Mr. Zheng Renfa，He served as Chairman, Master Degree,Senior economic engineer.Since December 2005，He
served as Deputy Minister of Investment Management Department of Guangdong Communication Group，Since
April 21, 2014，He served as director ,Since August 15, 2016, the implementation of the duties of the Board of
Directors and the legal representative of the duties. Since January 4, 2017, he was the chairman of the board of
directors of the Company and hold a concurrent post of vice chairman of Guangdong Guanghui Expressway Co.,
Ltd.
Mr. Wang Chunhua, He served as Director and General Manager of the Company, Master Degree, senior engineer
and senior economic engineer, Since September 2006, he served as Deputy General Manager of the
Company.From March 2013 to October 2015, He served as director and Deputy General Manager of the Company,
Since October 2015, He served as Director and General director of the Company, and hold a concurrent post of
vice chairman of Gankang Expressway Co., Ltd , Ganzhou Kangda Expressway Co., Ltd.and Shenzhen Huiyan
Expressway Co., Ltd.
Ms. Wang Ping, She served as Director and Chief Engineer of the Company, bachelor's degree, professor of
Engineering, National registered cost engineer, Senior Economist. From February 2001 to April 2012, she
served as Minister of Infrastructure Management Department. From April 2012 , she served as chief engineer of
the Company, Since April 21, 2014, She served as Director of the Company, and hold a concurrent post of
Chairman of Zhaoqing Highway Co., Ltd.and Vice Chairman of Guangdong Jiangzhong Expressway Co., Ltd.
Mr. Fangzhi , He serves as Director , Master Degree and Senior Accountant, He served as associate director and
Deputy General Manager of Finance Center of Guangdong Communication Group, Since May 2015, He served as
Chief accountant of the Company, Since December 2015, He served as director and chief accountant of the
Company, and hold a concurrent post of Chairman of the board of supervisors of Guanghui Expressway Co., Ltd,
and Direcotr of Yueke Technology Petty Loan Co., Ltd
Mr. Chin Min , He serves as Director , undergraduate degree, senior economist, corporate legal adviser, cost
engineer. From September 2001 to August 2009, He served as Senior economist , Director and General Manager
of Guangdong Jingtong Highway Engineering Construction Group Co., Ltd.,From August 2009 to April 2011, He
served as Deputy General Manager of Guangdong Nanyue Logistics Co., Ltd.,Form April 2011 to December 2014,
He served as Duputy Minister of Legal Affairs of Guangdong Communications Group Co., Ltd., Since December
2014, He served as Minister of Legal Affairs of Guangdong Communications Group Co., Ltd.,Since July ,19,
2017, He served as Director of the Company.
Mr. Zeng Zhijun, economist, is a director of the Company, with master degree. Since June 2010, he has served as
the deputy chief economist of Guangdong Provincial Expressway Co., Ltd. From January 2015 to September 2015,
he served as Minister of Investment Planning Department of Guangdong Provincial Expressway Co., Ltd; since
September 2015, he has served as Minister of Legal Affairs Department of Guangdong Provincial Expressway Co.,
Ltd. Since December 4, 2017, he serves as Director of the Company.
63
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Mr. Du Jun, He serves as Director, Master's degree and bachelor's degree, senior engineer, He serves as Deputy
General Manager ,director and member of party committee of Guangdong Luqiao Construction Development Co.,
Ltd.Since April 2016, He served as Deputy General Manager of Guangdong Highway Construction Co., Ltd.,
Since July 21,2016, He served as Director of the Company.
Mr. Zhuo Weiheng, is a senior accountant, with bachelor degree. From January 2008 to May 2009, he served as
the minister of the financial audit department of Guangdong Provincial Highway Construction Co., Ltd. Since
May 2009, he has served as the Minister of Finance Management Department of Guangdong Provincial Highway
Construction Co., Ltd.,Since December 4, 2017, he served as Director of the Company.
Mr. Cao Yu, Master of Business Administration, since 2011 has served as Shanghai Fuxin high-tech (Group) Co.,
Ltd. investment manager, deputy director of investment, investment director. From July 21, 2016, he served as
director of the Company.
Mr. Huang Hai, Master of Business Administration. Used to be the business manager of Shenzhen Wofa
Technology Development Co., Ltd., the marketing manager of Shantou Branch of Guangzhou Xingda
Communications Co., Ltd., Zhongshan Public Technology Co., Ltd. securities manager and securities affairs
representative. He is currently the Secretary of the Board of Directors of Poly Developments and Holdings, Group
CO., LTD, the Director of the Office of the Board of Directors and the Executive Director of Tibet
YinyueInvestment Management Co., Ltd. From July 21, 2016, he serves as director of the Company.
Ms.Xiao Duan an independent director of the Company, Doctor of Economics, the Jinan University Associate
Professor of Finance and research supervisor. She used to be a researcher at the Beijing Institute of Market
Economy, executive member of the council of Guangdong shares Economic Research Association, a member of
the Taiwan Economic Research Institution. She is also the independent director of Guangdong Tianhe Agricultural
materials Co., Ltd.Sice April 2013, She served as Dorector of the Company.
Mr. Bao Fangzhou, Independent director of the Company, Master of Law. Shanghai Jin Tiancheng Law Firm,
Senior Partner, 2008 - 2014 Former Independent Director of New Nanyang Co., Ltd. Since 2013, he has been an
independent director of Hubei Wushi Pharmaceutical Co., Ltd. since June 2016, Power Co., Ltd. Independent
Director. From July 21, 2016,He is an independent director of the Company.
Mr.Gu Naikang, Independent directors and doctorate degree of the Company. Since June 2004, he has been a
professor and doctoral tutor of Finance and Investment Department of Zhongshan University School of
Management. He is currently an independent director of Guangxi Guitang (Group) Co., Ltd., an independent
director of Dongguan Yuqiu Electronics Co., Ltd. and an independent director of Guangzhou Zhujiang Industrial
Development Co., Ltd. From July 21, 2016, he is an independent director of the Company.
Mr. Liu Zhonghua, professor of accounting, is an independent director of the Company, with master degree. In
September 2005, he was transferred to the School of Management of Guangdong University of Foreign Studies to
teach. He is currently a professor at the School of Accounting of Guangdong University of Foreign Studies, he is a
master tutor, concurrently serves as member of Accounting Society of China, executive member of China
Association of Foreign Trade and Economic Accounting, vice chairman of Guangdong Province Management
Accounting Association, executive member of Guangdong Provincial Accounting Association and member of
Guangdong Audit Society. Since December 4, 2017, he is an independent director of the Company.
Mr. Zhang Hua, economist, is an independent director of the Company, with Master Degree. From May 2006 to
May 2012, he served as deputy general manager and chief investment director of Guangzhou Yingzhi Caihua
Investment Co., Ltd. From June 2012 to September 2016, he served as the deputy general manager of Guangzhou
De’rui Investment Co., Ltd and concurrently served as Deputy General Manager of Shenzhen Dongying Ruitong
64
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Investment Management Partnership (Limited Partnership); since October 2016, he has served as general manager
of Shanghai Er Luo Investment Management Service Center (General Partnership). From November 2010 to
January 2017, he served as an independent director of Guangzhou Yu Yin Technology Co., Ltd. From December
2011 to September 2017, he served as an independent director of Guangdong Electric Power Development Co.,
Ltd. In September 2017, he was an independent director of Zhuhai Taichuan Cloud Community Technology Co.,
Ltd., Since December 4, 2017, he is an independent director of the Company.
Ms.Ling Ping, he has served as chairman of the supervisory committee of the Company,bachelor degree, Senior
Accountant, Senior Economist, Form February 1996 to January 2015, worked in Guangdong Provincial Highway
Construction Company, served as account, audit, deputy manager of audit Department, minister of the Audit
Department, Since January 2015, Worked at Guangdong Communication Group Co., Ltd., Currently serve as
Chairman of the exterior supervisory committee.Since March 2015, She served as Chairman of Board of
supervisor of the Company.
Ms. Li Haihong, Supervisors of the Company, bachelor degree, senior economist and road and bridge engineer.
Since October 2008, she has been working as a supervisory and auditing department of the Guangdong Provincial
Communications Group. From October 2008 to September 2012, she was appointed full-time supervisor of
Guangdong Expressway Co., Ltd., FromOctober 2012 to March 2016, she was appointed full-time supervisor of
Guangdong Yueyun Traffic Co., Ltd. and Guangdong Communications Industrial Investment Co., Ltd.,Form
March 2016 to December 2017, she was appointed full-time supervisor of Guangdong Litong Real Estate
Investment Co., Ltd.,Since December 2017, she was appointed full-time supervisor of Guangdong Nanyue Traffic
Investment Construction Co., Ltd., Since March 2016, she was appointed full-time supervisor of Guangdong
Traffic Industry Investment Co., Ltd., from December 2018 to present, is the first secretary of the party
organization of Guangdong Kaiyang Expressway Co., Ltd. From July 21, 2016, she has served as supervisor of
the Supervisory Committee of the Company.
Ms.Ke Lin, bachelor degree, Bachelor of Science, assistant researcher. She began to take a job in July 1991. She
had successively served as cadre of personnel department, deputy head, head of the personnel department,
section chief rank cadre of discipline inspection and supervision department, director of the commission for
discipline Inspection (deputy-director level). In November 2008, she was transferred to work in Provincial
Transportation Group, successively served as member of party committee, union chairman and discipline
inspection commission secretary. From January 2013 to August 2017, she has served as party committee member,
discipline inspection commission secretary and chairman of the union in Yueyun Transportation. .Since September
15, 2017, She served as supervisor of Board of supervisor of the Company.
Ms. Cao Xiaoying, Supervisors of the Company, bachelor's degree, bachelor's degree, senior economist, deputy
interpreter, senior human resource management division, senior corporate culture division. Since 2011 to work in
the Company, She has served as vice minister of human resources, minister, minister of human resources and
minister of the Party and the Communist Party,Since June 2018,She has seved as Minister of Department of
General Affairs, Since June 21, 2016,she has served as employee supervisor of the 8th Supervisory Committee.
Mr. Yang Tianshu, supervisor of the Company, with a bachelor degree and a master degree and a national legal
professional qualification, as well as is a senior economist. From July 2004 to April 2005, he worked as a
salesman in Guangdong Expressway Technology Investment Co., Ltd.; from June 2005 to July 2018, he worked in
the General Affairs Department of the Company, and served as a salesman, business supervisor, deputy minister,
and minister; Since July 2018,, he has been the Minister of Investment and Development of the Company. Since
March 30, 2018, he has served as the Supervisor of the 8th Supervisory Committee of the Company.
Ms. Zuo Jiang, Deputy General Manager of the Company, Master of Economics, Senior Economist, Qualified as
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Legal Adviser of the Enterprise, Secretary of the Board of Directors. He has been working in the Company since
1994. He has been the Minister of Securities Affairs of the Company since 1999. He has been the Secretary of the
Board of Directors and Director of Securities Affairs Department since March 2006. From October 2015 to July
2016, he was the Deputy General Manager and Secretary of the Board of Directors And Minister of Securities
Affairs. Since October 2015, he has been the Deputy General Manager of the Company, and hold a concurrent
post of Director of Yueke Technology Petty Loan Co., Ltd., and director of Guoyuan Securities Co., Ltd.
Mr. Cheng Rui,On-job postgraduate, master of business administration, with a lawyer qualification. He began to
take a job in July 1997. He had successively served as development department staff, deputy manager of
investment management department and manager of investment management department in HongKong Xinyue
Co.,Ltd, served as Deputy General Manager of HongKong Xinyue Company in August 2015, and served as
deputy minister of strategic development department from April 2016 to August 2017. Since August 2017, he
served as Deputy General Manager of the Company.
Ms. He Bing , general counsel, master's degree in law, enterprise legal adviser, from August 2005 to July 2012,
she served as Deputy chief economic engineer of the Company, Since July 2012, she served as Chief legal adviser
of the Company. and hold a concurrent post of Director of Huiyan Expressway Co., Ltd., and supervisor of Jiangzhong
Expressway Co., Ltd.
Mr. Yang Hanming, he has been the Secretary of the Board， bachelor's degree, senior economist, corporate legal
adviser, with the board secretary qualifications. Since March 2000, he has been successively served as deputy
minister of investment planning and minister of legal affairs in Guangdong Provincial Expressway Development
Co., Ltd. Since August 2014, he has been concurrently served as minister of investment and development. Since
August 2017, he has been the Secretary of the Board of the Company, and hold a concurrent post of Supervisor of
Yueke Technology Petty Loan Co., Ltd., and supervisor of Ganzhou Kangda Expressway Co., Ltd.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Names of the receive
Titles engaged in the Sharting date of Expiry date of
persons in Names of the shareholders remuneration or
shareholders office term office term
office allowance from
the shareholder
Guangdong Communication Minister of Investment
Chen Min December 1,2014 Yes
Group Management Dept.
Guangdong Highway
Du Jun Deputy General Manager April 1,2016 Yes
Construction Co., Ltd.
Guangdong Highway
Zhuo Weiheng Deputy Chief Accountant March 1,2018 Yes
Construction Co., Ltd.
Guangdong Expressway Co., Minister of legal affairs
Zeng Zhijun September 1,2015 Yes
Ltd Dept
Tibet Yinyue Investment
Huang Hai Executive director June 1,2015 No
Management Co., Ltd.
Dispatched chairman
Guangdong Communication
Ling Ping of the supervisory January 1,2015 Yes
Group Co., Ltd.
committee
Guangdong Communication
Li Haihong Full-time field supervisors July 21,2016 Yes
Group Co., Ltd.
Offices taken in other organizations
66
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
√Applicable □Not applicable
Does he/she
receive
Name of the Titles engaged in the other Starting date of Expiry date of
Name of other organizations remuneration or
persons in office organizations office term office term
allowance from
other organization
The financial department of the
Associate professor,
Xiao Duan school of economics of Jinan Yes
Master’s supervisor
University
Elion Clean Energy Company
Xiao Duan Independent director June 1,2017 Yes
Limited
Guangzhou Jiesai Technology
Xiao Duan Independent director July 1,2018 Yes
Co.,Ltd.
Bao Fangzhou Shanghai Allbright law firm Lawyer, Senior partner January 1,2000 Yes
Hubei Wushi Pharmaceutical Co.,
Bao Fangzhou Independent director January 1,2013 Yes
Ltd.
Bao Fangzhou Laurel Power Co., Ltd. Independent director January 1,2016 Yes
Finance and Investment ,School of Professor, doctoral
Gu Naikang January 1,2004 Yes
Business Sun YAT-SEN University supervisor
Gu Naikang Zhubo Design Co., Ltd. Independent director June 1,2012 March 1,2018 Yes
Gu Naikang Guangxi Guitang（Group）Co., Ltd. Independent director December 1,2013 November 1,2018 Yes
Guangzhou Zhujiang Industry
Gu Naikang Independent director May 1,2014 Yes
Development Co., Ltd.
Mingyang Intelligent Energy
Gu Naikang Supervisor July 1,2017 Yes
Group Co., Ltd.
Shanghai Erro Investment
Zhang Hua Management Service General Manager October 1,2016 Yes
Centre(General partnership)
Guangdong Electric Power
Zhang Hua Independent director November 1,2011 Yes
Development Co., Ltd.
Zhuhai Taichuan Community
Zhang Hua Independent director September 1,2017 Yes
Technology Co., Ltd .
Guangzhou Yuyin Technology Co.,
Zhang Hua Independent director November 1,2018 Yes
Ltd.
College of Accounting, Guangdong Professor, Master’s September 1,
Liu Zhonghua Yes
University of Foreign Studies supervisor 2005
Shanghai Fuxing
Cao Yu ECD May 1,2008 Yes
Technology(Group) Co., Ltd.
Poly Developments and
Huang Hai Secretary to the Board April 26,2012 Yes
Holdings Group Co., Ltd.
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
67
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
supervisors and senior executives
The remuneration of members of the Eighth board of directors and supervisory committee was examined and
determined at the second provisional shareholders ’ general meeting in 2016.The remuneration of the senior
executives is determined by the assets operation responsibility system in that year.
1. The directors of the Company and the controlling shareholder of the Company and its related parties, as
well as the directors of the Company, shall not receive the remuneration of the directors.
2. Directors who have not held other positions in the Company and the controlling shareholder of the
Company and its related parties are remunerated by the directors of the Company, and the standard is 5,000
yuan(tax included) per person per month. In addition, the expenses incurred by the independent directors at the
board of directors and the shareholders' general meeting and the expenses incurred in exercising their functions
and powers in accordance with the articles of association may be reimbursed in the company.
Remuneration to directors, supervisors and senior executives in the reporting period
Ten Thousands yuan
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from the company related
Company party
Zheng Renfa Board Chairman Male 49 In Office 74.8 No
Director,General
Wang Chunhua Male 54 In Office 72.51 No
Manager
Director, Chief
Wang Ping Female 54 In Office 61.84 No
Engineer
Director, Chief
Fang Zhi Male 55 In Office 62.01 No
Accountant
Chen Min Director Male 55 In Office 0 Yes
Zeng Zhijun Director Male 48 In Office 0 Yes
Du Jun Director Male 53 In Office 0 Yes
Zhuo Weiheng Director Male 47 In Office 0 Yes
Cao Yu Director Male 33 In Office 6 No
Huang Hai Director Male 43 In Office 6 No
Independent
Xiao Duan Female 60 In Office 6 No
director
Independent
Gu Naikang Male 53 In Office 6 No
director
Independent
Bao Fangzhou Male 40 In Office 6 No
director
Independent
Zhang Hua Male 53 In Office 6 No
director
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from the company related
Company party
Independent
Liu Zhonghua Male 53 In Office 6 No
director
Chairman of the
Ling Ping Supervisory Female 55 In Office 0 Yes
Committee
Li Haihong Supervisor Female 47 In Office 0 Yes
Ke Lin Supervisor Female 49 In Office 46.41 No
Cao Xiaoying Supervisor Female 50 In Office 47.4 No
Li Mei Supervisor Female 49 Dimission 0 No
Yang Tianshu Supervisor Male e 36 In Office 47.3 No
Deputy General 61.84
Zuo Jiang Female 46 In Office No
Manager
Deputy General 46.58
Cheng Rui Male 44 In Office No
Manager
Chief legal 50.86
He Bing Female 51 In Office No
adviser
Secretary to the 50.31
Yang Hanming Male 49 In Office No
Board
Total -- -- -- 663.86 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□ Applicable √Not applicable
V. Particulars about employees.
1.Number of staff, professional structure and educational background
Number of in-service staff of the parent company(person) 844
Number of in-service staff of the main subsidiaries(person) 1353
The total number of the in-service staff(person) 2,197
The total number of staff receiving remuneration in the current
2,197
period(person)
Retired staff with charges paid by the parent company and main
101
subsidiaries (person)
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Professional
Category Number of persons（person）
Management personnel 429
Toll collectors 1,372
Road service personnedl 121
Logistical personnedl 275
Total 2,197
Education
Category Number of persons（person）
Holders of master’s degree or obove 37
Graduates of regular university 407
Graduates of junior colleges 1,469
Other 284
Total 2,197
2. Remuneration policies
According to the company's overall development plan, to further establish and improve a variety of human
resource management system, strengthen the macro salary management, to maintain the level of salary market
competitiveness. Advocate salary and performance related, and constantly improve the performance appraisal
mechanism, personal performance appraisal approach, staff promotion system, to develop both incentive and
restrictive salary performance policy. Think highly of the establishment and perfection of welfare system, in
accordance with the relevant provisions of the state on time and in full for the full pay pension insurance, medical
insurance, work-related injury insurance, unemployment insurance, maternity insurance, housing provident fund
and other statutory benefits, comply with the provisions on working hours, rest and vacations, the establishment of
supplementary medical insurance, enterprise annuity and welfare system.
3.Training plan
Nil
4.Outsourcing situation
□ Applicable √ No Applicable
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
IX. Administrative structure
I. General situation
The Company strictly followed the requirement of laws and regulations in ,< the Securities
Law>,< Code of Corporate Governance for Listed Companies in China>, etc. and kept on
improving corporate governance structures, improving normative operation level. Company had stipulated rules
such as , rules of procedures in three meetings, working guide of special committee in
board of directors, working guide of general manager etc. and internal control system basically covering all
operating management such as company financial management, investment management, information disclosure,
related transaction, external guarantee, fund raising etc. All rules are well implemented.
In the report period, strictly following the relevant provisions of “Company Law”and “Regulations”, the
shareholder’s meeting of our bank effectively performed the functions. The board of directors is to be responsible
for the shareholder’ meeting, to take the ultimate responsibility for the bank’ operation and management and to
convene a meeting as well as performing the function and power according to legal procedure. In line with the
attitude which is responsible for all shareholders and keeping in close contact and communication with the board
of directors and the management, the board of supervisors carries out the assessment work on duty exercising for
the board of directors and the board of supervisors, effectively performing functions and obligations of
supervision.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
1. Independent business
The company mainly engaged in business is Guangfo Expressway, Fokai Expressway and Beijing-Zhuhai
Expressway Guangzhu section of the charges and maintenance work, investment in science and technology
industry and provide relevant advice.
it has invested in or holds Shenzhen Huiyan Expressway Co., Ltd., Guanghui Expressway Co., Ltd., Jiangzhong
Expressway Co., Ltd. , Zhaoqing Yuezhao Highway Co., Ltd., Ganzhou Kangda Expressway Co., Ltd ,Ganzhou
Gankang Expressway Co., Ltd., Guangdong Yueke Technology Micro Loan Co., Ltd. and Guangdong Guangle
Expressway Co., Ltd.
The Company has outstanding main operation, independent and complete business and the ability of independent
operation. All business decisions of the Company were made independently, being completely separated from the
shareholder with actual control. Related transactions were carried out in light of the principle of fair transaction,
71
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
which did not harm the interests of the Company and other shareholders of the Company. The content of related
transactions was fully, timely and accurately disclosed, which did not have negative influence on the Company.
2. Complete assets
The relationship of the Company's property right is clear. The assets injected by shareholders in the Company
are independent and complete and have clear property right. All capital was paid up and relevant formalities of
property right change were settled.
3. Independent personnel
As for personnel relationship, the general manager, deputy general managers, the secretary to the board of
directors and financial controller of the Company were full-time employees and received salary from the
Company, who did not concurrently hold positions at the parent company.
All directors and supervisors of the Company were elected through legal procedure. The general manager,
deputy general managers, chief accountant, chief economic engineer and chief engineer were directly appointed
by the board of directors. Other managerial personnel of all levels were directly appointed by the general manager.
The Company owns independent power of personnel appointment and removal.
4. Independent finance
The company has established an independent accounting department, including subsidiaries, and has
established an independent accounting system and financial management system. The company opens bank
accounts independently; the company pays taxes independently; the company's financial decisions are made
independently, and there is no case of major shareholders interfering in the use of funds of listed companies.
5. Independent organization
The board of directors, the supervisory committee and other internal organs of the Company operated
independently. Its organs are complete and independent.
III. Horiontal Competitions
□ Applicable √ Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Description of
Sessions Meeting Date Resolution Disclosure date Disclosure index
proposals
Annual Announcement of Resolutions of
2017 Shareholders’
Shareholders’ 66.27% April 26,2018 April 27,2018 the shareholders' general meeting
general meeting
General Meeting in 2017.www.cninfo.com.cn
The First provisional Announcement of Resolutions of
Provisional
shareholders’ the First provisional shareholders'
shareholders’ 61.46% August 23,2018 August 24,2018
General meeting of general meeting of 2018.
General meeting
2018 www.cninfo.com.cn
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’ general meeting
The attending of independent directors
Number of
Failure to
Board Number of Attendance of
personally
meetings Number of meetings Number of the
Independent Number of attend board
necessary to be spot attended by attendances by shareholders'
Directors absence meetings
attended in the attendances Communicatio representative general
successively
reporting n meeting
twice (Yes/No)
period
Xiao Duan 7 2 5 0 0 No 2
Gu Naikang 7 2 5 0 0 No 2
Bao Fangzhou 7 2 5 0 0 No 2
Liu Zhonghua 7 2 5 0 0 No 2
Zhang Hua 7 2 5 0 0 No 2
Notes to failure to personally attend Board Meetings Successively Twice
Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
No objections arising from the independent directors on relevant events of the Company during the Period
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
Independent directors seriously exercise the rights conferred by law, keep abreast of the company's production and
management information, concerned about the company's comprehensive development, actively attend relevant
meetings held by the company in 2018, published an independent and objective advice on relevant matters for
consideration by the Board of Directors of the Company. Faithfully perform their duties, give full play to the
independent role of the independent directors, to safeguard the interests of the company as a whole, and to
safeguard the legitimate rights and interests of all shareholders, especially minority shareholders. The advices on
business development and corporate governance given by independent directors can be adopted.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
1. The board of directors has an audit committee composed of three directors. i.e., Mr. Liu Zhonghua , Mr.Zhang
Hua and Mr.Fang Zhi. The particulars of the work of the audit committee in the report period are as follows:
According to the Rules of Procedure of Audit Committee of the Board of Directors and Working Regulations
of Audit Committee of the Board of Directors on Annual Report and the work requirements of CSRC and
73
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Shenzhen Stock Exchange on annual report for 2017 the audit committee carried out a series of work for the
annual audit of the Company for 2017, including deciding the working schedule for the audit of financial report
for the report year after consultation with the certified public accountants in charge, reviewing the financial report
prepared by the Company and forming written opinions, issuing the Urging Letter for Audit to certified public
accountants and requiring certified public accountants to carry out overall work plan for audit and submit relevant
progress report to the audit committee, reviewing the financial report for 2017 submitted by the Finance Dept. of
the Company (on which the certified public accountants in charge of annual audit issued standard unqualified
opinions) and giving written auditing opinions.
2. The board of directors has a remuneration committee composed of three directors, i.e., Mr. Bao Fangzhou, Ms.
Xiao Duan and Mr Huang Hai. The particulars of the work of the remuneration committee in the report period
are as follows:
According to the Company's Regulations on Performance Appraisal and Remuneration Management of Senior
Executives, the remuneration and appraisal committee audited the remuneration disclosed by the Company's
directors for 2017.
3.In the report period, The board of directors has an strategy committee composed of five directors. i.e., Mr.
Zheng Renfa, Mr.Wang Chunhua, Mr.Gu Naikang, Mr.Bao Fangzhou .and Mr.Zhang Hua.
Strategy Committee will strengthen the company's strategic direction, strategic planning, research, and supervise
the implementation of corporate strategies, provide timely advice to the Board decisions on strategic development.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection aginst any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The Company implemented position responsibility to every senior management, and made clear regulations
on job standards, appraisal standards. The senior management staff shall report to worker representatives and
accept comments.
IX. Internal Control
I. Specific situations on major defects of internal control discovered during report period
□ Yes √ No
II. Self-evaluation report on internal control
Disclosure date of appraisal report on
March 29,2019
internal control
Disclosure index of appraisal report on
www.cninfo.com.cn
internal control
74
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
The qualitative criteria for the evaluation of The qualitative criteria for the evaluation
internal control deficiencies in financial of internal control deficiencies in
reports confirmed by the Company is as non-financial reports confirmed by the
follows: The following situations (including Company is as follows: Material
but not limited to) shall be deemed as deficiencies: serious violations and being
“material deficiencies” in the internal sentenced to heavy fines or need taking
control of the financial report. criminal
(1) There are major frauds made by the responsibility; utterly disregard the rules
directors, or supervisors, or senior of law, illegal behaviors in the operation
management personnel in the company’s and management
management activities; are particularly severe and the
(2)There are material misstatements in the circumstance is very bad, which leads to
current financial report but the the suspension or cessation
internal control failed to find the to the company's daily operation and
misstatements during its operation; management activities, and leads to the
Qualitative standard (3) The supervisions made by the company's audit report with a
audit committee and the internal disclaimer of opinion or a negative
audit organization on the internal control are opinion issued by the CPA; the negative
invalid; news spread all over the
(4) The control environment is invalid; country, which caused severe damage to
(5)The material deficiencies found and the company’s reputation; resulted in
reported to the management but are decease of a number
not corrected within a reasonable time; of workers or citizens, or resulted in
(6)There is an administrative punishment damages that are unable to recover to
from the securities regulatory workers or citizens;
institution due to accounting errors. reached the circumstance(grade II) of
The following situations (including but not major environmental event. Significant
limited to) shall be deemed as deficiencies: illegal
“significant deficiencies” in the internal and being punished; disregard the
control of the financial report and requirements of the company’s
there are intense signs for the situations management system and the
75
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Disclosure date of appraisal report on
March 29,2019
internal control
Disclosure index of appraisal report on
www.cninfo.com.cn
internal control
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
becoming “material deficiencies”: (1) relevant rules of law, there are illegal
Frauds made by staff in key positions; acts of using the authority to seek illegal
(2)The supervisory function on compliance interests in the work,
is invalid, and the violations of which significantly affect the efficiency
regulations may have a significant impact on and the result of daily operation and
the reliability of the financial management activities
report; and lead to the audit report with qualified
(3)The significant deficiencies reported to opinion issued by the CPA; the negative
the management but are not news spread in a
corrected within a reasonable period. region, which caused the large-extent
The following situations (including but not damage to the company’s reputation;
limited to) shall be deemed as resulted in decease of a
“general deficiencies” in the internal worker or a citizen, or resulted in
control of the financial report. damages that need long time to recover
(1) Frauds made by staff in non key to workers or citizens;
positions, or business operators execute reached the circumstance(grade Ⅲ) of
the implementation procedures not strictly big environmental event.
conforming to the company’s General deficiencies: minor violations;
policy but resulted in no significant impact the awareness of management under in
on the reliability of the financial compliance with
report. laws and regulations is weak, lacking of
(2)The supervisory function on compliance business and management knowledge,
is invalid, and the violations of and there are phenomena such as being
regulations may not have a significant slack in performing management duties,
impact on the reliability of the financial being passive and poorly execute
report; the institution in the work, which shall
76
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Disclosure date of appraisal report on
March 29,2019
internal control
Disclosure index of appraisal report on
www.cninfo.com.cn
internal control
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
(3)The general deficiencies reported to the affect the efficiency and the result of
management but are not corrected daily operation and
within a reasonable period. management activities and lead to small
effects to the company’s management
goal; the negative
news spread within the company, which
caused the little-extent damage to the
company’s
reputation; shortly affected the health of
the workers or citizens and the workers
or citizens can be
recovered in a short time; reached the
circumstance(grade Ⅳ) of general
environmental event.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Disclosure date of appraisal report on
March 29,2019
internal control
Disclosure index of appraisal report on
www.cninfo.com.cn
internal control
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
The qualitative criteria for the evaluation
The qualitative criteria for the evaluation of of internal control deficiencies in
internal control deficiencies in financial nonfinancial reports confirmed by the
reports confirmed by the Company is as Company is as follows: Material
follows: Material deficiencies: potential deficiencies: potential misstatement≧
misstatement≧1% of the total amount of the 1% of the total amount of the owner’s
owner’s equity or 200 million yuan; equity or
significant deficiencies: 0.5% of the 200 million yuan; significant
Standards of Quantization totalamount of the owner’s equity or 100 deficiencies: 0.5% of the total amount of
million yuan≤potential misstatement＜1% the owner’s equity or100 million yuan
of the total amount of the owner’s equity or ≤potential misstatement＜1% of the
200 million yuan; general deficiencies: total amount of the owner’s equity or
potential misstatement＜0.5% of the total 200
amount of the owner’s equity or 100 million Million yuan ; general deficiencies:
yuan Standards of Quantization potential misstatement＜0.5% of the
total amount of the owner’s
equity or 100 million yuan.
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
In our opinion, Guangdong Expressway has maintained effective financial report internal control in all material aspects according
to the basic standards for Enterprise internal control and relevant regulations ended December 31, 2018.
Disclosure of internal audit report Disclosure
Disclosure date of audit report
March 29,2019
of internal control (full-text)
Disclosure index of audit report
www.cninfo.com.cn
of internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting the
No
existence of significant deficiencies
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without
payment in full at maturity on the approval date for annual report disclosed
No
79
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
XI. Financial Report
I. Audit report
Type of audit opinion Standard Unqualified audit opinion
Type of audit opinion March 28,2019
Guangdong Zhengzhong Zhujiang Certified Public Accountants
Name of audit firm
Co., Ltd.(Special General Partnership)
Name of Certified public Accountant Feng Kuncong, Xu Jihong
Auditors’ Report
To all shareholders of Guangdong Provincial Expressway Development Co., Ltd.
I. Opinion
We have audited the financial statements of Guangdong Provincial Expressway Development Co., Ltd.
(hereinafter referred to as "the Company"), which comprise the balance sheet as at December 31, 2018, and the
income statement, the statement of cash flows and the statement of changes in owners' equity for the year then
ended and notes to the financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31, 2018 and its operating results and cash flows for the year then ended.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
（1） Long-term Eqiuty Investment
1 Factual description
As stated in “Section XI Financial Report V, Important Accounting Policies and Accounting Estimates 14,
Long-term Equity Investment”, “Section XI Financial Report VII, Consolidated Statements Project Chairman 9,
Long-term Equity Investment”, as of December 31, 2018, the amount of long-term equity investment of the
Company was 3145.645 million yuan.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Guangdong Expressway bought shares from Shenzhen Huiyan Expressway Co., Ltd., Guangdong Guanghui
Expressway Co., Ltd., Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Highway Co., Ltd.,
Ganzhou Kangda Expressway Co., Ltd., Ganzhou Gankang Highway Co., Ltd., Guangdong Yueke Technology
Petty Loan Co., Ltd.and Guoyuan Securities Co., Ltd. Guangdong Expressway Co., Ltd. Management (hereinafter
referred to as the "Management") considered that it can actively participate in the operation and financial policies
of such joint ventures and associates, so Guangdong Expressway Co., Ltd. had a significant influence on them.
The financial statements of these joint ventures and associates have a significant impact on the consolidated
financial statements of Guangdong Expressway Co., Ltd.
②How our audit addressed the matter
We have implemented the following major audit procedures to respond:
Check the joint venture agreement, articles of association for the long-term equity investment newly
increased in current period, and Guangdong Expressway Co., Ltd. appoints directors and participates in its
operation and decision-making; Obtain the capital verification report of the Investee to confirm whether the
long-term equity investment meets the provisions of investment contract and the agreement and whether the
accounting treatment is correct.
Analyze the holding intention and ability of the management of Guangdong Expressway Co., Ltd. on the
long-term equity investment and review the correctness of the long-term equity investment classification.
Inspect the resolutions of the Board of Directors and the Shareholders’ Meeting of the joint ventures and
associates, and evaluate the actual impact of the Guangdong Expressway Co., Ltd. on the major decisions and
operation-related activities of such joint ventures and associates.
The review procedures are conducted for the financial statements of the joint ventures and associates to
verify the net gains and losses of the Investee after adjusting based on the principle of materiality and on the basis
of the identifiable assets fair values of the joint ventures and associates obtained during investments.
The investment gains and losses recalculated are checked with the investment gains and losses calculated by
audited unit and made appropriate adjustments.
Pay attention to whether the accounting treatment of Guangdong Expressway is correct in case of its joint
ventures and associates generating net loss or achieving profit in subsequent periods.
Long-term equity investments are inspected one by one, and judge whether there is any indication of
impairment for the long-term equity investment based on various changes such as the operating policies, legal
environment, market demand, industry and profitability of Guangdong Expressway Co., Ltd.. At the same time,
check the correctness of impairment provision calculation.
(2) Depreciation of fixed assets road property
①Factual description
As stated in “Section XI Financial Report V, Important Accounting Policies and Accounting Estimates 17,
Fixed assets”, “Section XI Financial Report VII, Consolidated Statements Project Chairman 11, Fixed assetst”, as
of December 31, 2018, he amount of fixed assets road property of the Company was 15,247.2669 million yuan
and the accumulated depreciation amount of road property was 8026. 0744 million yuan.
At present, Guangdong Expressway is amortized according to the workload method, which involves the
estimation of Guangdong Expressway Co., Ltd.. on the estimated total traffic flow and the estimation is uncertain.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
When there is a significant difference between the estimated total traffic flow and the actual measurement result,
the road fixed assets depreciation shall be adjusted accordingly. At the same time, various factors consideration
and the related data estimation are involved in the traffic flow forecasting model. If the amortization rate and the
annual average increment rate are not estimated properly, the depreciation amount of expressway property will be
wrong to generate the risk of material misstatement.
Fixed asset road property is the core asset of Guangdong Expressway Co., Ltd. Depreciation of expressway
property has a significant impact on annual vehicle travel costs and expenses, so the workload method for
amortization of fixed assets road property is recognized as a key audit matter.
②How our audit addressed the matter
The procedures of our management for amortization of expressway property with workload method mainly
include:
Obtain forecast report from an external independent professional organization and review its key
assumptions, while comparing its key assumptions with the expressway planning of the government transport
sector and reviewing the qualifications, professional competence and independence of external independent
professional organization;
Check whether the actual traffic flow data applied by Guangdong Expressway Co., Ltd. in the process of
depreciation calculation of fixed assets road property is consistent with the actual traffic flow data obtained by
Guangdong Expressway Co., Ltd. from external service units;
To understand the method of forecasting the traffic flow of the future remaining operation period used in the
traffic flow forecast report of an independent external professional organization and to evaluate the reliability of
the traffic flow forecast report by comparing the forecasting traffic flow in the past years with the actual traffic
flow in the period.
Depreciation of fixed assets road property is to be re-calculated to verify the correctness of the depreciation
amount of fixed assets road property in the financial statements.
(3) Deferred income tax assets related to deductible losses
①Factual description
As stated in “Section XI Financial Report V, Important Accounting Policies and Accounting Estimates 29,
Deferred Income Tax Assets and Deferred Income Tax Liabilities”, “Section XI Financial Report VII,
Consolidated Statements Project Chairman 15, Deferred Income Tax Assets”, as of December 31, 2018, the
amount of deferred income tax assets of the Company was 447.485 million yuan of which the deferred income tax
asset confirmed without making up for the tax loss was 320.3474 million yuan.
The Guangdong Expressway Headquarter has larger tax losses that have not been made up during 2014 to
2016 .In 2018, it offset with the corresponding taxable income generated after absorbing and combining Fokai
Company, a wholly-owned subsidiary of Guangdong Expressway . The Company initially estimated and
confirmed the deferred income tax assets of 320.3474 million yuan. When confirming the deferred income tax
assets, the Management judges the Guangdong Expressway . Headquarter is likely to have sufficient taxable
income to offset the deductible losses prior to the expiration of the deductible losses according to the financial
forecast of the Guangdong Expressway . Headquarter in the future. As for the evaluation on whether the deferred
tax assets will be realized in the future, it needs the Management to make significant judgments and its estimates
and assumptions are with certain uncertainties.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
②How our audit addressed the matter
The procedures we have implemented for the accounting estimation of deferred income tax assets by
Guangdong Provincial Expressway Development Company include:
We communicate with our tax experts to confirm that their unrecovered losses can be compensated by the
combined taxable income.
Obtain the financial forecast approved by the management for the future period of Guangdong High Speed
Company, evaluate whether its compilation conforms to the industry and its own situation, and consider the
impact of relevant special matters on the reliability of future financial forecast.
To review whether the confirmation of deferred income tax assets is limited to the amount of taxable income
likely to be obtained to offset deductible losses in the future;
Implement audit procedures such as inspection and recalculation, and review the accuracy of accounting
treatment of deferred income tax assets which should be confirmed by Guangdong Provincial Expressway
Development Company for deductible losses..
IV. Other information
The management of the Company is responsible for the other information. The other information comprises
information of the Company's annual report in 2018, but excludes the financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor's report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
83
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company,
and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Guangdong Zhengzhong Zhujiang Certified Public Accountants Co., Ltd.(Special General Partnership)
Certified Public Accountant of China:Feng Kuncong(project partner)
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Certified Public Accountant of China:Xu Jihong
Guangzhou China March 28, 2019
II. Financial Statement
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by:：Guangdong Provincial Expressway Development Co., Ltd.
December 31,2018
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 2,124,524,996.32 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 & account receivable 91,076,995.07 92,642,625.45
Including：Notes receivable
Account receivable 91,076,995.07 92,642,625.45
Prepayments 1,912,943.40 4,451,901.75
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 16,487,256.02 15,415,512.07
Including：Interest receivable
Dividend receivable 1,205,472.90
Repurchasing of financial assets
Inventories 81,017.91
Assets held for sales
Non-current asset due within 1 year 51,745.32 55,669.14
Other current asset 76,576.08
Total of current assets 2,234,134,954.04 2,475,684,984.91
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items At the end of term Beginning of term
Non-current assets：
Loans and payment on other’s behalf
disbursed
Available-for-sale financial assets 1,668,791,594.53 1,751,357,624.93
Held-to-maturity investments
Long-term receivable
Long term share equity investment 3,145,644,970.07 3,047,275,000.00
Property investment 3,579,007.54 2,755,757.68
Fixed assets 7,600,046,319.91 8,505,434,890.71
Construction in progress 1,089,473,425.63 357,612,211.95
Productive biological assets
Oil and natural gas assets
Intangible assets 5,739,020.48 7,096,435.17
R & D costs
Goodwill
Long-germ expenses to be amortized 1,221,781.88 92,768.83
Deferred tax assets 447,485,034.79 335,299,025.28
Other non-current asset 99,794,665.58 40,706,394.26
Total of non-current assets 14,061,775,820.41 14,047,630,108.81
Total of assets 16,295,910,774.45 16,523,315,093.72
Current liabilities
Short-term loans
Loan from Central Bank
Deposit received and hold for others
Borrowingf funds
Financial liabilities measured at fair value
with variations accounted into current
income account
Derivative financial liabilities
Notes payable & account payable 203,779,190.74 266,934,026.99
Advance payment 12,039,708.01 14,856,113.90
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 13,122,437.17 11,334,182.16
Tax payable 104,198,746.06 428,647,394.29
Other account payable 191,254,464.84 121,998,386.07
Including：Interest payable 8,971,576.57 8,494,355.93
Dividend payable 17,191,142.23 26,840,792.20
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items At the end of term Beginning of term
Liabilities held for sales
Non-current liability due within 1 year 2,498,480,000.00 1,218,610,000.00
Other current liability
Total of current liability 3,022,874,546.82 2,062,380,103.41
Non-current liabilities：
Long-term loan 2,983,040,000.00 4,744,170,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 38,022,210.11 2,022,210.11
Long-term payable employees’s
remuneration
Expected liabilities
Deferred income
Deferred income tax liability 205,672,389.59 260,632,098.75
Other non-current liabilities
Total non-current liabilities 3,226,734,599.70 5,006,824,308.86
Total of liability 6,249,609,146.52 7,069,204,412.27
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,536,774,965.31 2,510,069,749.76
Less：Shares in stock
Other comprehensive income 245,109,114.81 327,263,824.17
Special reserves
Surplus reserves 775,402,561.35 544,821,130.03
Common risk provision
Retained profit 3,938,609,136.59 3,550,110,288.49
Total of owner’s equity belong to the
9,586,701,904.06 9,023,071,118.45
parent company
Minority shareholders’ equity 459,599,723.87 431,039,563.00
Total of owners’ equity 10,046,301,627.93 9,454,110,681.45
Total of liabilities and owners’ equity 16,295,910,774.45 16,523,315,093.72
Legal Representative:Zheng Renfa General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
2.Parent Company Balance Sheet
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 2,096,597,568.04 2,130,475,892.67
Financial assets measured at fair value with
variations accounted into current income 0.00 0.00
account
Derivative financial assets 0.00 0.00
Notes receivable & account receivable 18,405,847.15 19,001,899.29
Including：Notes receivable 0.00 0.00
Account receivable 18,405,847.15 19,001,899.29
Prepayments 1,532,057.82 1,520,014.23
Other account receivable 9,323,782.66 17,368,588.12
Including：Interest receivable 1,880,148.12 2,070,385.95
Dividend receivable 1,205,472.90 10,000,000.00
Inventories 0.00 0.00
Assets held for sales 0.00 0.00
Non-current asset due within 1 year 100,000,000.00 80,000,000.00
Other current asset 0.00 0.00
Total of current assets 2,225,859,255.67 2,248,366,394.31
Non-current assets：
Available-for-sale financial assets 1,668,791,594.53 1,751,357,624.93
Held-to-maturity investments 0.00 0.00
Long-term receivable 0.00 0.00
Long term share equity investment 4,679,309,978.88 8,216,937,219.66
Property investment 3,326,869.29 2,503,619.43
Fixed assets 5,292,898,635.00 5,784,192,105.58
Construction in progress 1,060,230,773.10 353,858,869.95
Productive biological assets 0.00 0.00
Oil and natural gas assets 0.00 0.00
Intangible assets 1,741,277.53 2,856,323.67
R & D costs 0.00 0.00
Goodwill 0.00 0.00
Long-germ expenses to be amortized 0.00 0.00
Deferred tax assets 447,328,530.77 335,050,091.31
Other non-current asset 790,720,727.48 827,775,329.66
Total of non-current assets 13,944,348,386.58 17,274,531,184.19
Total of assets 16,170,207,642.25 19,522,897,578.50
Current liabilities
Short-term loans 0.00 0.00
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items At the end of term Beginning of term
Financial liabilities measured at fair value
with variations accounted into current 0.00 0.00
income account
Derivative financial liabilities 0.00 0.00
Notes payable and account payable 124,833,335.72 200,070,986.17
Advance payment 0.00 0.00
Employees’ wage payable 5,669,203.37 5,419,848.48
Tax payable 10,297,144.52 12,893,797.03
Other account payable 142,457,135.79 4,503,328,739.76
Including：Interest payable 8,373,096.36 7,901,914.26
Dividend payable 17,191,142.23 14,340,792.20
Liabilities held for sales 0.00 0.00
Non-current liability due within 1 year 2,327,180,000.00 968,610,000.00
Other current liability 977,236,252.44 644,691,748.64
Total of current liability 3,587,673,071.84 6,335,015,120.08
Non-current liabilities：
Long-term loan 2,731,990,000.00 4,545,170,000.00
Bond payable 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Long-term payable 38,022,210.11 2,022,210.11
Employees’ wage payable 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income 0.00 0.00
Deferred income tax liability 88,220,604.00 108,805,411.60
Other non-current liabilities 0.00 0.00
Total of Non-current liabilities 2,858,232,814.11 4,655,997,621.71
Total of liability 6,445,905,885.95 10,991,012,741.79
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instrument 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Capital reserves 2,948,663,196.93 2,921,957,981.38
Less：Shares in stock 0.00 0.00
Other comprehensive income 245,109,114.81 327,263,824.17
Special reserves 0.00 0.00
Surplus reserves 759,558,277.70 528,976,846.38
Retained profit 3,680,165,040.86 2,662,880,058.78
Total of owners’ equity 9,724,301,756.30 8,531,884,836.71
Total of liabilities and owners’ equity 16,170,207,642.25 19,522,897,578.50
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
3.Consolidated Income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 3,218,694,083.94 3,089,055,399.21
Incl：Business income 3,218,694,083.94 3,089,055,399.21
Interest income 0.00 0.00
Insurance fee earned 0.00 0.00
Fee and commission received 0.00 0.00
II. Total business cost 1,691,379,458.72 1,700,430,222.02
Incl：Business cost 1,279,095,071.32 1,247,122,353.35
Interest expense 0.00 0.00
Fee and commission paid 0.00 0.00
Insurance discharge payment 0.00 0.00
Net claim amount paid 0.00 0.00
Net amount of withdrawal of insurance
0.00 0.00
contract reserve
Insurance policy dividend paid 0.00 0.00
Reinsurance expenses 0.00 0.00
Business tax and surcharge 15,987,266.39 16,000,201.45
Sales expense 0.00 0.00
Administrative expense 183,392,148.68 179,811,709.59
R & D costs 1,318,344.01 9,773,866.38
Financial expenses 212,592,783.74 247,306,751.08
Including：Interest expense 237,334,325.27 276,594,308.94
Interest income 31,889,543.71 33,696,479.00
Asset impairment loss -1,006,155.42 415,340.17
Add：Other incme 1,113,228.32 0.00
Investment gain（“-”for loss） 507,659,683.96 448,268,367.19
Incl: investment gains from affiliates 463,873,066.20 423,940,445.45
Changing income of fair value 0.00 0.00
Gains from currency exchange 0.00 0.00
Income on disposal of assets 66,431,966.75 0.00
III. Operational profit（“-”for loss） 2,102,519,504.25 1,836,893,544.38
Add ：Non-operational income 4,175,801.94 65,779,816.71
91
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Report period Same period of the previous year
Less: Non-operating expense 8,979,998.49 6,681,492.26
IV.Total profit(“-”for loss) 2,097,715,307.70 1,895,991,868.83
Less：Income tax expenses 194,374,904.99 185,768,181.41
V. Net profit 1,903,340,402.71 1,710,223,687.42
1.Net continuing operating profit 1,903,340,402.71 1,710,223,687.42
2.Termination of operating net profit 0.00 0.00
Net profit attributable to the owners of
1,677,028,179.18 1,509,922,398.70
parent company
Minority shareholders’ equity 226,312,223.53 200,301,288.72
VI. Net after-tax of other
-82,154,709.36 -75,022,130.07
comprehensive income
Net of profit of other comprehensive inc
ome attributable to owners of the parent -82,154,709.36 -75,022,130.07
company.
（I）Other comprehensive income items
that will not be reclassified into
0.00 0.00
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
0.00 0.00
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl 0.00 0.00
assified into profit or loss.
（II）
Other comprehensive income that will b -82,154,709.36 -75,022,130.07
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi -20,400,286.56 847,589.37
fied into profit or loss.
2.Gains and losses from changes in fair
-61,754,422.80 -75,869,719.44
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s 0.00 0.00
ale financial assets
4.The effective portion of cash flow hed
0.00 0.00
ges and losses
5.Translation differences in currency fin 0.00 0.00
92
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Report period Same period of the previous year
ancial statements
6.Other 0.00 0.00
Net of profit of other comprehensive inc
0.00 0.00
ome attributable to Minority
shareholders’ equity
VII. Total comprehensive income 1,821,185,693.35 1,635,201,557.35
Total comprehensive income
attributable to the owner of the parent 1,594,873,469.82 1,434,900,268.63
company
Total comprehensive income
226,312,223.53 200,301,288.72
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.80 0.72
(II)Diluted earnings per share 0.80 0.72
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:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
93
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 1,407,552,753.41 633,884,348.76
Incl：Business cost 715,167,422.95 334,909,223.31
Business tax and surcharge 7,835,359.08 3,307,085.26
Sales expense 0.00 0.00
Administrative expense 110,081,131.38 88,330,754.08
R & D costs 0.00 0.00
Financial expenses 195,110,213.09 161,543,283.48
Including：Interest expenses 223,418,837.71 191,514,874.96
Interest income 31,556,863.82 30,122,893.22
Asset impairment loss -1,013,982.92 0.00
Add：Other income 396,608.55 0.00
Investment gain（“-”for loss） 1,814,856,174.83 1,543,339,240.39
Incl: investment gains from
463,873,066.20 423,940,445.45
affiliates
Gains from change of fir value （“-”for
0.00 0.00
loss）
Assets disposal income 200,494.75 0.00
II. Operational profit（“-”for loss） 2,195,825,887.96 1,589,133,243.02
Add ：Non-operational income 1,131,640.33 1,954,480.96
Less：Non business expenses 3,421,654.59 993,641.04
III.Total profit(“-”for loss) 2,193,535,873.70 1,590,094,082.94
Less：Income tax expenses -112,278,439.46 -188,551,718.47
IV. Net profit 2,305,814,313.16 1,778,645,801.41
1.Net continuing operating profit 2,305,814,313.16 1,778,645,801.41
2.Termination of operating net profit 0.00 0.00
V. Net after-tax of other comprehensive
-82,154,709.36 -75,022,130.07
income
（I）Other comprehensive income items
that will not be reclassified into
0.00 0.00
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
0.00 0.00
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl 0.00 0.00
assified into profit or loss.
（II）
Other comprehensive income that will b -82,154,709.36 -75,022,130.07
e reclassified into profit or loss.
1.Other comprehensive income under th
-20,400,286.56 847,589.37
e equity method investee can be reclassi
94
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Report period Same period of the previous year
fied into profit or loss.
2.Gains and losses from changes in fair
-61,754,422.80 -75,869,719.44
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s 0.00 0.00
ale financial assets
4.The effective portion of cash flow hed
0.00 0.00
ges and losses
5.Translation differences in currency fin
0.00 0.00
ancial statements
6.Other 0.00 0.00
VI. Total comprehensive income 2,223,659,603.80 1,703,623,671.34
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
95
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
3,287,727,513.56 3,136,065,844.60
rending of services
Net increase of customer deposits
0.00 0.00
and capital kept for brother company
Net increase of loans from central bank 0.00 0.00
Net increase of inter-bank loans from
0.00 0.00
other financial bodies
Cash received against original insurance
0.00 0.00
contract
Net cash received from reinsurance
0.00 0.00
business
Net increase of client deposit and
0.00 0.00
investment
Net increase of amount from
disposal financial assets that measured
0.00 0.00
by fair value and with variation
reckoned into current gains/losses
Cash received from interest,
0.00 0.00
commission charge and commission
Net increase of inter-bank fund received 0.00 0.00
Net increase of repurchasing business 0.00 0.00
Tax returned 0.00 0.00
Other cash received from business
96,620,294.65 100,599,558.66
operation
Sub-total of cash inflow 3,384,347,808.21 3,236,665,403.26
Cash paid for purchasing of
282,911,012.21 200,278,429.82
merchandise and services
Net increase of client trade and advance 0.00 0.00
Net increase of savings n central bank
0.00 0.00
and brother company
Cash paid for original contract claim 0.00 0.00
Cash paid for interest, processing fee
0.00 0.00
and commission
96
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Report period Same period of the previous year
Cash paid for policy dividend 0.00 0.00
Cash paid to staffs or paid for staffs 331,709,871.16 317,865,103.86
Taxes paid 778,835,419.88 428,844,550.88
Other cash paid for business activities 74,905,926.92 94,687,393.35
Sub-total of cash outflow from business
1,468,362,230.17 1,041,675,477.91
activities
Cash flow generated by business
1,915,985,578.04 2,194,989,925.35
operation, net
II.Cash flow generated by investing
Cash received from investment
0.00 0.00
retrieving
Cash received as investment gains 414,389,169.98 424,307,452.94
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 228,222,572.51 619,050.00
long-term assets
Net cash received from disposal of
0.00 0.00
subsidiaries or other operational units
Other investment-related cash received 0.00 59,995,667.68
Sub-total of cash inflow due to
642,611,742.49 484,922,170.62
investment activities
Cash paid for construction of
fixed assets, intangible assets 845,371,278.92 429,007,555.79
and other long-term assets
Cash paid as investment 0.00 799,999,959.30
Net increase of loan against pledge 0.00 0.00
Net cash received from subsidiaries and
0.00 0.00
other operational units
Other cash paid for investment
0.00 0.00
activities
Sub-total of cash outflow due to
845,371,278.92 1,229,007,515.09
investment activities
Net cash flow generated by investment -202,759,536.43 -744,085,344.47
III.Cash flow generated by financing
Cash received as investment 0.00 0.00
Incl: Cash received as investment from
0.00 0.00
minor shareholders
97
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Report period Same period of the previous year
Cash received as loans 1,385,000,000.00 1,828,000,000.00
Cash received from bond placing 0.00 0.00
Other financing –related cash
0.00 10,277,777.78
received
Sub-total of cash inflow from financing
1,385,000,000.00 1,838,277,777.78
activities
Cash to repay debts 1,785,260,000.00 2,225,880,000.00
Cash paid as dividend, profit, or
1,550,437,061.08 1,304,986,387.00
interests
Incl: Dividend and profit paid by
210,252,062.66 309,648,023.87
subsidiaries to minor shareholders
Other cash paid for financing activities 0.00 0.00
Sub-total of cash outflow due to
3,335,697,061.08 3,530,866,387.00
financing activities
Net cash flow generated by financing -1,950,697,061.08 -1,692,588,609.22
IV. Influence of exchange rate
-2,267,884.63 1,447,084.51
alternation on cash and cash equivalents
V.Net increase of cash and cash
-239,738,904.10 -240,236,943.83
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
2,123,303,796.32 2,363,042,700.42
equivalents at the end of term
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
98
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
1,376,638,206.96 558,221,855.21
rending of services
Tax returned 0.00 0.00
Other cash received from business
451,033,420.59 256,279,744.56
operation
Sub-total of cash inflow 1,827,671,627.55 814,501,599.77
Cash paid for purchasing of
129,341,285.43 40,959,738.85
merchandise and services
Cash paid to staffs or paid for staffs 140,700,012.09 88,199,907.15
Taxes paid 51,584,160.49 15,211,949.40
Other cash paid for business activities 380,472,347.82 457,568,791.56
Sub-total of cash outflow from business
702,097,805.83 601,940,386.96
activities
Cash flow generated by business
1,125,573,821.72 212,561,212.81
operation, net
II.Cash flow generated by investing
Cash received from investment
0.00 0.00
retrieving
Cash received as investment gains 1,045,610,436.49 1,533,378,326.14
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 313,375.00 604,520.00
long-term assets
Net cash received from disposal of
0.00 0.00
subsidiaries or other operational units
Other investment-related cash received 148,330,950.62 167,012,137.44
Sub-total of cash inflow due to
1,194,254,762.11 1,700,994,983.58
investment activities
Cash paid for construction of
fixed assets, intangible assets 803,184,034.08 60,356,595.71
and other long-term assets
Cash paid as investment 0.00 804,499,959.30
Net cash received from subsidiaries and
0.00 0.00
other operational units
99
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Amount in this period Amount in last period
Other cash paid for investment
5,000,000.00 20,000,000.00
activities
Sub-total of cash outflow due to
808,184,034.08 884,856,555.01
investment activities
Net cash flow generated by investment 386,070,728.03 816,138,428.57
III.Cash flow generated by financing
Cash received as investment 0.00 0.00
Cash received as loans 636,000,000.00 270,000,000.00
Cash received from bond placing 0.00 0.00
Other financing –related ash received 291,000,000.00 732,162,605.79
Sub-total of cash inflow from
927,000,000.00 1,002,162,605.79
financing activities
Cash to repay debts 821,880,000.00 50,200,000.00
Cash paid as dividend, profit, or
1,275,396,189.75 852,788,562.89
interests
Other cash paid for financing activities 374,200,000.00 794,300,000.00
Sub-total of cash outflow due to
2,471,476,189.75 1,697,288,562.89
financing activities
Net cash flow generated by financing -1,544,476,189.75 -695,125,957.10
IV. Influence of exchange rate
-2,267,884.63 1,447,084.51
alternation on cash and cash equivalents
V.Net increase of cash and cash
-35,099,524.63 335,020,768.79
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
2,095,376,368.04 2,130,475,892.67
equivalents at the end of term
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
100
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity instrument Com Minor
Items Less: Total of owners’
Other Special mon shareholders’
Shares equity
Share Capital preferred Capital reserves Comprehensive ized Surplus reserves risk Retained profit equity
Sustaina Other in
stock Income reserve prov
ble debt stock
ision
I.Balance at the end of last year 2,090,806,126.00 0.00 0.00 0.00 2,510,069,749.76 0.00 327,263,824.17 0.00 544,821,130.03 0.00 3,550,110,288.49 431,039,563.00 9,454,110,681.45
Add: Change of accounting
0.00
policy
Correcting of previous errors 0.00
Merger of entities under common
0.00
control
Other 0.00
II.Balance at the beginning of
2,090,806,126.00 0.00 0.00 0.00 2,510,069,749.76 0.00 327,263,824.17 0.00 544,821,130.03 0.00 3,550,110,288.49 431,039,563.00 9,454,110,681.45
current year
III.Changed in the current year 0.00 0.00 0.00 0.00 26,705,215.55 0.00 -82,154,709.36 0.00 230,581,431.32 0.00 388,498,848.10 28,560,160.87 592,190,946.48
（1）Total comprehensive income -82,154,709.36 1,677,028,179.18 226,312,223.53 1,821,185,693.35
（II）Investment or decreasing of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital by owners
1．Ordinary Shares invested by sh
0.00
areholders
2．Holders of other equity instrum
0.00
ents invested capital
3．Amount of shares paid and
0.00
accounted as owners’ equity
4．Other 0.00
（III）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 230,581,431.32 0.00 -1,288,529,331.08 -197,752,062.66 -1,255,699,962.42
101
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity instrument Com Minor
Items Less: Total of owners’
Other Special mon shareholders’
Shares equity
Share Capital preferred Capital reserves Comprehensive ized Surplus reserves risk Retained profit equity
Sustaina Other in
stock Income reserve prov
ble debt stock
ision
1.Providing of surplus reserves 230,581,431.32 -230,581,431.32 0.00
2.Providing of common risk
0.00
provisions
3．Allotment to the owners (or
-1,057,947,899.76 -197,752,062.66 -1,255,699,962.42
shareholders)
4．Other 0.00
(IV) Internal transferring of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capitalizing of capital reserves
0.00
(or to capital shares)
2. Capitalizing of surplus reserves
0.00
(or to capital shares)
3．Making up losses by surplus
0.00
reserves.
4.Change amount of defined
benefit plans that carry forward
Retained earnings
5．Other 0.00
(V). Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Provided this year 0.00
2．Used this term 0.00
（VI）Other 26,705,215.55 26,705,215.55
IV. Balance at the end of this term 2,090,806,126.00 0.00 0.00 0.00 2,536,774,965.31 0.00 245,109,114.81 0.00 775,402,561.35 0.00 3,938,609,136.59 459,599,723.87 10,046,301,627.93
Amount in last year
102
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Items Other Equity instrument Less: Specia Commo Minor
Other Total of owners’
Shares lized n risk shareholders’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Retained profit equity
Sustainabl Other in reserv provisio equity
d stock Income
e debt stock e n
I.Balance at the end of last
2,090,806,126.00 0.00 0.00 0.00 2,508,408,342.99 0.00 402,285,954.24 0.00 366,956,549.89 0.00 2,920,563,328.27 554,495,287.40 8,843,515,588.79
year
Add: Change of
0.00
accounting policy
Correcting of previous
0.00
errors
Merger of entities under
0.00
common control
Other 0.00
II.Balance at the beginning
2,090,806,126.00 0.00 0.00 0.00 2,508,408,342.99 0.00 402,285,954.24 0.00 366,956,549.89 0.00 2,920,563,328.27 554,495,287.40 8,843,515,588.79
of current year
III.Changed in the current
0.00 0.00 0.00 0.00 1,661,406.77 0.00 -75,022,130.07 0.00 177,864,580.14 0.00 629,546,960.22 -123,455,724.40 610,595,092.66
year
（1）Total comprehensive
-75,022,130.07 1,509,922,398.70 200,301,288.72 1,635,201,557.35
income
（II）Investment or
decreasing of capital by 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners
1．Ordinary Shares investe
0.00
d by shareholders
2．Holders of other equity i
0.00
nstruments invested capital
3．Amount of shares paid
and accounted as owners’ 0.00
equity
4．Other 0.00
103
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount in last year
Owner’s equity Attributable to the Parent Company
Items Other Equity instrument Less: Specia Commo Minor
Other Total of owners’
Shares lized n risk shareholders’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Retained profit equity
Sustainabl Other in reserv provisio equity
d stock Income
e debt stock e n
（III）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 177,864,580.14 0.00 -880,375,438.48 -323,757,013.12 -1,026,267,871.46
1.Providing of surplus
177,864,580.14 -177,864,580.14 0.00
reserves
2.Providing of common
0.00
risk provisions
3．Allotment to the owners
-702,510,858.34 -323,757,013.12 -1,026,267,871.46
(or shareholders)
4．Other 0.00
(IV) Internal transferring
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of owners’ equity
1. Capitalizing of capital
reserves (or to capital 0.00
shares)
2. Capitalizing of surplus
reserves (or to capital 0.00
shares)
3．Making up losses by
0.00
surplus reserves.
4.Change amount of
defined benefit plans that
carry forward
Retained earnings
5．Other 0.00
(V). Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Provided this year 0.00
2．Used this term 0.00
（VI）Other 1,661,406.77 1,661,406.77
104
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount in last year
Owner’s equity Attributable to the Parent Company
Items Other Equity instrument Less: Specia Commo Minor
Other Total of owners’
Shares lized n risk shareholders’
Share Capital preferre Capital reserves Comprehensive Surplus reserves Retained profit equity
Sustainabl Other in reserv provisio equity
d stock Income
e debt stock e n
IV. Balance at the end of
2,090,806,126.00 0.00 0.00 0.00 2,510,069,749.76 0.00 327,263,824.17 0.00 544,821,130.03 0.00 3,550,110,288.49 431,039,563.00 9,454,110,681.45
this term
Legal Representative:Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
105
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrument
Items Other
Less: Shares Specialize Total of owners’
Share Capital preferre Sustaina Capital reserves Comprehensive Surplus reserves Retained profit
Other in stock d reserve equity
d stock ble debt Income
I.Balance at the end of last year 2,090,806,126.00 0.00 0.00 0.00 2,921,957,981.38 0.00 327,263,824.17 0.00 528,976,846.38 2,662,880,058.78 8,531,884,836.71
Add: Change of accounting policy 0.00
Correcting of previous errors 0.00
Other 0.00
II.Balance at the beginning of current
2,090,806,126.00 0.00 0.00 0.00 2,921,957,981.38 0.00 327,263,824.17 0.00 528,976,846.38 2,662,880,058.78 8,531,884,836.71
year
III.Changed in the current year 0.00 0.00 0.00 0.00 26,705,215.55 0.00 -82,154,709.36 0.00 230,581,431.32 1,017,284,982.08 1,192,416,919.59
（I）Total comprehensive income -82,154,709.36 2,305,814,313.16 2,223,659,603.80
(II) Investment or decreasing of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital by owners
1Ordinary Shares invested by shareho
0.00
lders
2Holders of other equity instruments i
0.00
nvested capital
3.Amount of shares paid and
0.00
accounted as owners’equity
4．Other 0.00
（III）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 230,581,431.32 -1,288,529,331.08 -1,057,947,899.76
106
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
1.Providing of surplus reserves 230,581,431.32 -230,581,431.32 0.00
2．Allotment to the owners (or
-1,057,947,899.76 -1,057,947,899.76
shareholders)
3．Other 0.00
(IV) Internal transferring of owners’
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capitalizing of capital reserves (or
0.00
to capital shares)
2. Capitalizing of surplus reserves (or
0.00
to capital shares)
3．Making up losses by surplus
0.00
reserves.
4.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Provided this year 0.00
2．Used this term 0.00
（VI）Other 26,705,215.55 26,705,215.55
IV. Balance at the end of this term 2,090,806,126.00 0.00 0.00 0.00 2,948,663,196.93 0.00 245,109,114.81 0.00 759,558,277.70 3,680,165,040.86 9,724,301,756.30
Amount in last year
In RMB
Amount in last year
Items
Share Capital Other Equity instrument Capital reserves Less: Other Specia Surplus reserves Retained profit Total of owners’
Shares Comprehensive lized equity
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
preferred Sustaina
Other
stock ble debt
I.Balance at the end of last year 2,090,806,126.00 0.00 0.00 0.00 3,359,791,693.12 0.00 402,285,954.24 0.00 351,112,266.24 1,764,609,695.85 7,968,605,735.45
Add: Change of accounting policy 0.00
Correcting of previous errors 0.00
Other 0.00
II.Balance at the beginning of current year 2,090,806,126.00 0.00 0.00 0.00 3,359,791,693.12 0.00 402,285,954.24 0.00 351,112,266.24 1,764,609,695.85 7,968,605,735.45
III.Changed in the current year 0.00 0.00 0.00 0.00 -437,833,711.74 0.00 -75,022,130.07 0.00 177,864,580.14 898,270,362.93 563,279,101.26
（I）Total comprehensive income -75,022,130.07 1,778,645,801.41 1,703,623,671.34
(II) Investment or decreasing of capital by owners 0.00 0.00 0.00 0.00 -437,833,711.74 0.00 0.00 0.00 0.00 0.00 -437,833,711.74
1．Ordinary Shares invested by shareholders 0.00
2Holders of other equity instruments invested capit
0.00
al
3.Amount of shares paid and accounted as
0.00
owners’equity
4．Other -437,833,711.74 -437,833,711.74
（III）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 177,864,580.14 -880,375,438.48 -702,510,858.34
1.Providing of surplus reserves 177,864,580.14 -177,864,580.14 0.00
2．Allotment to the owners (or shareholders) -702,510,858.34 -702,510,858.34
3．Other 0.00
(IV) Internal transferring of owners’ equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capitalizing of capital reserves (or to capital
0.00
shares)
2. Capitalizing of surplus reserves (or to capital
0.00
shares)
3．Making up losses by surplus reserves. 0.00
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount in last year
Other Equity instrument Less: Specia
Other
Items Shares lized Total of owners’
Share Capital preferred Sustaina Capital reserves Comprehensive Surplus reserves Retained profit
Other in reserv equity
stock ble debt Income
stock e
4.Change amount of defined benefit plans that
carry forward
Retained earnings
5．Other 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Provided this year 0.00
2．Used this term 0.00
（VI）Other 0.00
IV. Balance at the end of this term 2,090,806,126.00 0.00 0.00 0.00 2,921,957,981.38 0.00 327,263,824.17 0.00 528,976,846.38 2,662,880,058.78 8,531,884,836.71
Legal Representative:Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
III. Company Profile
(1)History
1.The Company was established in February 1993, which was originally named as Guangdong Fokai Expressway
Co., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co., Ltd. after
reorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of Share
Holding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge
Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong State-owned Asset
Management Dept., i.e., 418.2136 million yuan, was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of 115 million yuan to subscribe for 35.9375 million shares. Other legal persons
invested cash of 286.992 million yuan to subscribe for 89.685 million shares. Staff of the Company invested
87.008 million yuan to subscribe for 27.19 million shares. The total is 307.8375 million shares.
2 ． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legal
person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co., Ltd.
in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval
document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document, the
Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at the
price of HKD 3.54 (equivalent to 3.8 yuan) with the par value of each share being 1 yuan during June to July
1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of
China with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested joint
stock company limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following
manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on
3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.
487 document, the Company issued 100 million public shares (A shares) at the price of 5.41 yuan in term of
“payable in full on application, pro-rate placing and subject to refund” with the par value of each share being
1 yuan in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant
to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of
CSRC with ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249 million
shares at the price of 11 yuan per Right.73,822,250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co.,
Ltd. (Group Co.) for holding and management without compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722
shares held by directors, supervisors and senior executives are temporarily frozen) were listed on February 5,
2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized
capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000,
i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
22, 2001.
11 ． On March 8, 2004,As approved by China Securities Regulatory Commission by document
Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at the
shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “The
approval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the share
equity relocation and transformation. On October 9 2006, according to the “Circular about implementing of share
equity relocation and relative trading”issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’
s A shares was restored from “G-Expressway” “Expressway A”.
13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to
Parties such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by
Guangdong Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares
and paid 803.50 million yuan to Guangdong Provincial Expressway Co., Ltd for purchasing the 25% stake of
Guangdong Provincial Fokai Expressway Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; and
issued 466,325,020 shares to Guangdong Provincial Highway Construction Co., Ltd for purchasing the 100%
stake of Guangzhou Guangzhu Traffic Investment Management Co., Ltd held by Guangdong Provincial Highway
Construction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095 A-shares to Yadong
Fuxing Yalian Investment Co.,Ltd, Tibet Yinyue Investment Management Co.,Ltd and GF Securities Co.,Ltd.
The issuance of shares have been registered on July 7, 2016, the new shares will be listed on July 8, 2016.
(2)Organization structure and the actual controller of the Company
As of December 31, 2018 ， Registration capital: 2,090,806,126 yuan ， Legal representative ： Zheng
Renfa,Registration place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32,
Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou ， The company has set up: Investment
Development Dept, Security Affairs Department, Management Department, Financial Management Department,
Base construction Department, Audit and Supervise Department, Affairs Department, Personnel Department ,
Party Work Department, Law affairs Department , Project Office and Labour union etc.
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Deng
Xiaohua. Date of establishment: June 23, 2000. As of December 31, 2018,Registered capital: 26.8 billion yuan. It
is a solely state-owned limited company. Business scope：equity management, organization of asset reorganization
and optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stock
system transformation, project investment, operation and management, traffic infrastructure construction, highway
and railway project operation and relevant industries, technological development, application, consultation and
services, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; The
value-added communication business.
（3）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Management fees and
maintenance of roads, bridges, and car rescue, maintenance, cleaning, concurrently with the company's business s
upporting motor transport, warehousing operations.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway, investm
ent in technological industries and provision of relevant consultation while investing in Shenzhen Huiyan Express
way Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co., Ltd.,Guangdong J
iangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzh
ou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangdong Guangle
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Expressway Co.,Ltd. and Guoyuan Securities Co., Ltd.
（4）Scope of consolidated financial statements
The company's 2018 annual consolidated subsidiaries of total 5 companies, one new business combination was
Logout to the scope of consolidate financial statement in reason of being under the same control. Refer to
financial statements XI(8),Change of consolidation scope and, financial statements XI(9), Equity in other entities
for more details.
（5）Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group on March
29,2019.
IV. Basis for the preparation of financial statements
1.Preparation basis
The company prepares the financial statements on the basis of a continuous operation, the actual transactions,
“Accounting Standards for Enterprises – Basic Standards”, other accounting standards & related regulations.
Furthermore, all the materials of financial statements of the company meet the relevant disclosure requirements of
financial statements and notes on the “ Editing and Reporting Rules Regarding Information Disclosure for
Companies Publicly Issuing Securities No. 15 – General Regulations for Financial Reporting (revised in 2014)
by China Securities Regulatory Commission.
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.
V. Significant Accounting Policies and Accounting Estimates
Whether the Company needs to comply with the disclosure requirements for specific industries
No
Specific accounting policies and accounting estimates are indicated as follows:
Nil
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of corporate accounting
standards. They truly and completely reflect the financial situations, operating results, equity changes and cash
flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the
fiscal year.
3.Operating cycle
An operating cycle for the Company is 12 months, which is also the classification criteria for the liquidity of its
assets and liabilities.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
4.Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control
1.Business Combinations under the Same Control
The assets and liabilities acquired by the company in the business combination shall be measured as per the
obtained book value of owner’s equity of the combined party in the consolidated financial statements. As for the
balance between the carrying amount of the net assets obtained by the combining party & the carrying amount of
the consideration paid by it (or the total par value of the shares issued), the additional paid-in capital shall be
adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.
The direct costs for the business combination of the company, including the expenses for audit, assessment and
legal services, shall be recorded into the profits & losses at the current period.
The handling fees, commissions & other expenses for the issuance of equity securities for the business
combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained
earnings shall be offset.
Where the accounting policies adopted by the combined parties are different from those adopted by the company,
the company shall adjust them on the combining date according to the accounting policy it adopts, and shall,
pursuant to the Accounting Standards for Enterprises, recognize them on the basis of such adjustments.
2. Business Combinations not under the Same Control
The assets paid as the consideration for the business combination & the liabilities assumed on the acquisition date
shall be measured in accordance with the fair value. The difference between the fair value & its carrying amount
shall be recorded into the profits & losses at the current period.
The company will distribute the combination costs on the acquisition date.
The company shall recognize the positive balance between the combination costs & the fair value of the
identifiable net assets it obtains from the acquire as Goodwill while it shall record the negative balance between
the combination costs & the fair value of the identifiable net assets it obtains from the acquire into the profits &
losses of the current period.
As for the assets other than intangible assets acquired from the acquire in a business combination (not limited to
the assets which have been recognized by the acquire), if the economic benefits brought by them are likely to flow
into the enterprise and their fair values can be measured reliably, they shall be separately recognized and measured
in light of their fair values. As for any intangible asset acquired in a combination, if its fair value can be measured
reliably, it shall be separately recognized as an intangible asset and shall measured in light of its fair value. As for
the liabilities other than contingent liabilities acquired from the acquire, if the performances of the relevant
obligations are likely to result in any out-flow of economic benefits from the enterprise, and their fair values can
be measured reliably, they shall be separately recognized and measured in light of their fair values. As for the
contingent liabilities of the acquire obtained in a combination, if their fair values can be measured reliably, they
shall be separately recognized as liabilities and shall be measured in light of their fair values.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
6.Methods for Preparing the Consolidated Financial Statements
The scope of the consolidated financial statements will be recognized on the basis of controlling. All the
subsidiaries will be included into the consolidated financial statements.
The accounting policies & accounting periods adopted by all the subsidiaries that have been included into the
scope of the consolidated financial statements should be consistent with those adopted by the company. If the
accounting policies & accounting periods adopted by the subsidiaries are different from those adopted by the
company, the company shall make necessary adjustments according to the accounting policies & accounting
periods it adopts when preparing the consolidated financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity method, the company
shall prepare the consolidated financial statements based on the financial statements of the company & its
subsidiaries, and other related documents.
The influences of the internal transactions between the company & its subsidiaries, and its subsidiaries themselves
on the consolidated balance sheet, consolidated profit statement, consolidated cash flow statement &
consolidated statement of changes in owner’s equity will be counteracted at the preparation of the consolidated
financial statements.
The portion of a subsidiary’ s equity that is not attributable to the parent is treated as minority shareholders’
interest and presented as “minority interest” in the consolidated balance sheet within owners’ equity. The
portion of net profits or losses of subsidiaries for the period attributable to minority interest is presented in the
consolidated income statement below the “net profit” line item as “minority interest”. In the consolidated
financial statements, when the amount of loss for the period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’portion of the opening balance of owners’equity of the subsidiary,
the excess amount should be still allocated against minority interest.
In the report period, If the subsidiary is added through the business combination under the same control, the
beginning balance of the consolidated balance sheet shall be adjusted. The incomes, expenses & profits of the
subsidiary incurred from the beginning of the current period to the end of the reporting period shall be included
into the consolidated profit statement. The cash flow from the beginning of the current period to the end of the
reporting period shall be included into the consolidated cash flow statement.
For purchase of minority interests held by the minority shareholders of a subsidiary, when preparing the
consolidated financial statements, the difference between the long-term equity investment newly gained by buying
minority interests and the portion of net assets consistently calculated from the acquisition date (or the
consolidation date) pursuant to newly added shareholding percentage entitled by the subsidiary should be adjusted
to the owners’ equity (the capital reserve). If the capital reserve is not sufficient to absorb the difference, any
excess is adjusted against retained earnings.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from the
beginning of the subsidiary to the disposal date shall be included into the consolidated profit statement. The cash
flow from the beginning of the subsidiary to the disposal date shall be included into the consolidated cash flow
statement.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
7.Joint venture arrangements classification and Co-operation accounting treatment
⑴A joint arrangement refers to an arrangement jointly controlled by two participants or above.，the joint venture
arrangements include co-operation and joint ventures.
(2)When the joint venture company for joint operations, confirm the following items and share common business
interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
⑶
When a company is a joint ventures, joint venture investment will be recognized as long-term equity investments
and long-term equity investments are accounted for in accordance with the method of the Notes to Financial State
ments.
8.Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash when
preparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),
high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.
Equity investment are not recognized as cash equivalents.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
For the company with non-functional currency business, the middle rate of the market exchange rate published by
People’s Bank of China on the date of occurrence of business are recorded as the functional currency, and the
balances of foreign currency shall be adjusted by the end of the month according to the middle rate of the market
exchange rate published by People’s Bank of China at the end of period. The differences between the recording
currency amount converted by the exchange rate at the end of period and the carrying currency amount are as
“Finance Costs – Exchange Gains and Losses” and recorded into the current profits or losses. The exchange
gains and losses related to borrowings on the fixed assets shall be made treatment according to the principles of
borrowing costs capitalization.
（2）Conversion of Foreign Financial statement
If overseas subsidiaries, cooperative enterprises, joint ventures, branches of the company adopt the different
functional recording currency and record the overseas business of the company into the financial statements
through the consolidated statements and the accounting by the equity method, the overseas financial statements
shall be translated as the recording functional currency. Before the translation, the company shall adjust the
accounting period and policy of overseas business in order to make the consistent adjustment, and translate the
overseas financial statements according to the financial statements of the preparation of corresponding currency
after the accounting policy and period adjusted and as per the following methods:
1 For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is adopted
as the translation exchange rate. For the owner’ s equity, the shot exchange rate on the transaction date is
adopted as the translation exchange rate, with the exception of “undistributed profits”.
2 The incomes and expenses in the income statement shall be translated at the spot exchange rate or the
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
approximate exchange rate on the transaction date.
3 The translation gap of financial statement of foreign currency shall be listed under the owner’s equity in the
consolidated balance sheet in the preparation of the consolidated financial statements.
10.Financial tools
1. Categories of financial Tools
The Company divides the financial assets into four categories: financial assets measured at fair value and their
variations are recognized as current gain/loss, including trade financial assets or financial liabilities and
recognized directly as financial assets measured at fair value and their variations are recognized as current
gain/loss; Investment hold till expiration; loans and account receivable; saleable financial assets .The company
divides the financial liabilities into two categories: financial liabilities measured at fair value and their variations
are recognized as current gain/loss; other financial liabilities.
2. Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus
adjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses is
recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when the
difference between the actual rate and face rate is minor) during the period of holding, and accounted as
investment gains. Actual rate is recognized when obtained, and is not changed in the predictable holding period or
applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
If the company sells or reclassifies large-amount due investments before the expired date (large amount refers to
comparing with the amount before the selling or reclassifying the investments), the company will reclassify the
rest of the investments as financial assets for sale, and in the current accounting period or within two complete
accounting years, no financial assets will be classified as holding due assets, except for the following situations:
the sale date or reclassification date is close to the expired date of the investment (such as three months before the
expired), and the change of interest rate has no significant influence on the fair value of the investment; after all
the initial principal is mostly recovered according to periodic payments or repay in advance regulated in the
contract, the rest part will be sold or reclassified; the sale and reclassification is caused by the independent events
which are uncontrollable and unexpected and will not happen any more.
(3) Account receivable
The receivable debts of selling goods or providing services, and the credits of other company hold by the
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
company not including the debt which has price in active market, including accounts receivable, notes receivable,
prepaid accounts, other receivables, long-term receivables, etc. The contract or agreement price charging from
purchaser should be taken as the initial confirmation amount; if it has the nature of financing, it should be
confirmed according its current value.
When retrieved or disposed of, the difference between the actual received amount and the book value is accounted
as current gain/loss.
(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) plus the related trade expenses is recognized as initial amount when obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment gains. Change of fair
value is accounted as capital reserves (other capital reserves) at the end of term.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
Meanwhile, the corresponding part of accumulated change of fair value accounted as owners ’ equity is
transferred into investment gain/loss.
(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade expenses. Successive
measurement will be on the basis of amortized costs.
3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is terminated if
almost all risks and rewards attached to the asset have been transferred to the acceptor. If retain all the risks and
rewards of ownership of financial assets, the financial assets can be confirmed.
When determine whether the transfer of financial assets meet the conditions of confirmation of the above financial
assets, the principle of substance being more important than form should be adopted. The transfer of financial
assets can be divided into overall transfer and part transfer of financial assets. If the transfer of financial assets
meet the conditions of terminating confirmation, the following the difference of the two amounts will be included
in the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally
accounted as owners’ equity (when the asset to be transposed is saleable financial asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book value of the
transferred financial assts, the difference between the confirmed part and the unconfirmed part (in this case, the
service assets retained should be deemed as the part of unconfirmed financial assets), should be amortized in
accordance with their relative fair value, and the difference between the following two amount should be included
current profit and loss:
① Book value of the confirmed part;
②All fair values of financial assets and financial liabilities are recognized with reference to the price in the active
market.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
If the transfer of financial assets does not meet the conditions of terminating confirmation, the financial assets
should be confirmed again, the prices received will recognized as financial liabilities.
4.The conditions to stopping the financial liabilities
The obligation of financial liabilities are already cancelled which should be stopped confirming the financial
liability or the part of it. Our company could stop confirming the currently financial liability and begin to confirm
the newly financial liability if the loaner made an agreement that they would assume the new way of financial
liability which replace the current one, and make sure the newly financial liability is totally different from the old
one in contract with our company.
Stop admitting the financial liability or a part of it, and at mean time we could admit the newly financial liability
which is in new insertions of contract as the newly financial liability if the current financial liability has been
revised.
Stop admitting the balance of value of financial liability and consideration (Including the roll-out of non-cash
assets or financial liabilities) which could be consider as current profits and losses.
Stop and continue admitting a part of value, and distribute the value of financial liability, if our company
repurchased the part of financial liability. And the balance of value of which distributed to the part of stopping
admitting and paid (Including the roll-out of non-cash assets or financial liabilities) which could be consider as
current profits and losses.
5.Recognition basis of financial assets and financial liabilities
All fair values of financial assets and financial liabilities are recognized with reference to the price in the active
market（Using valuation technique, etc）.
6. Impairment provision for financial assets
①Impairment provision for financial assets for sale:
If the fair value of financial assets for sale greatly drops at the end of the period, or after considering all the
relevant factors and expecting decrease trend is non-temporary, the impairment should be confirmed, and the
accumulative loss formed by the decrease of fair value of owner’ equity originally included should be transferred
out altogether and confirmed as impairment loss.
②Holding the impairment provision of expired investments:
The measurement of holding the impairment provision of expired investment will be according to the method of
the measurement of impairment provision for receivables.
11.Accounts Receivable
（1）Accounts receivable with material specific amount and specific provisioned bad debt preparation.
The accounts receivable whose single amount is over 1 million
Judgment criteria or amount standard of material specific amount yuan & accounts for over 10% of the accounts receivable
or amount criterial： amount.
Conduct the devalue test separately. Set up the bad debt reserve
Provision method with material specific amount and provision of according to the shortfall of the present value of expected future
specific bad debt preparation： cash flows against its carrying amount and record it into the
profits & losses at the current period.
(2)The accounts receivable of bad debt provisions made by credit risk Group
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The basis for determining the combination of Credit risk：The accounts receivable whose single amount is over
1 million yuan & accounts for over 10% of the accounts receivable amount. Conduct the devalue test separately.
Set up the bad debt reserve according to the shortfall of the present value of expected future cash flows against its
carrying amount and record it into the profits & losses at the current period.
In the Groups, adopting aging analysis method to withdraw bad debt provision
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 0.00% 0.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 90.00% 90.00%
Over 5 years 100.00% 100.00%
When the provision for bad debts is made according to the aging analysis method, the provision shall be the
balance of the accounts receivable at the end of the period deducted the account current of the subsidiaries within
the scope of the consolidated statement.
Accounts on percentage basis in group：
□ applicable √not applicable
Accounts on other basis in group：
√ Applicable □ Not applicable
Separately carry out the impairment test, prepare the bad debt according to the expected future cash flow
present value below the balance of its book value, and take account of the current profit and loss.
(3)Account receivable with non-material specific amount but specific bad debt preparation
The accounts receivable under 5 years of age which are not
Reason of individually withdrawing bad debt provision
significant without any business connections any more.
Conduct the devalue test separately. Set up the bad debt
reserve according to the shortfall of the present value of expected
Witharawal method for boad debt provision
future cash flows against its carrying amount and record it into
the profits & losses at the current period.
12.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
1.Investories class: The company ’ s stocks can be classified as: raw materials, inventory goods, low-value
consumables & other materials, etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the
weighted averages method or the first-in first-out method.
3. Recognition Basis of Inventories ’ Net Realizable Values and Counting & Drawing Method of Obsolete
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Inventory Reserves: After taking stock at the end of the period,
4. Inventory System: Adopts the Perpetual Inventory System
13. Divided as assets held for sale
In the presence of the following conditions are satisfied when non-current assets or a part of the company is classi
fied as held for sale:
(1) The components should be immediately sold under the current condition only according to the usual terms of
the parts sold.
(2) The enterprise has made resolution for the disposal of the components, the approval of shareholders’ meeting
or relevant authority agency if the shareholder’s approval is requested by the rules.
(3) The enterprise has signed the irrevocable transfer agreement with the transferee.
(4) The transfer shall be completed within one year.
For the non-current assets held for sale (excluding the financial assets and the deferred income tax assets), the less
amount after the book value and fair value respectively minus the disposal costs shall be presented as Divided as
assets held for sale assets. If the amount of the fair value minus the disposal costs is less than that of the original
book value, the assets impairment loss shall be recognized.
14. Long-term equity investment
(1) The Classification of Long-term Equity Investments
The long-term equity investments of the company should include the investments in the subsidiaries and the
investments in cooperative enterprises and joint ventures.
(2) The Recognition of Investment Cost
1 For the business combination under common control and the combining party paying in cash, transferring
non-monetary assets, bearing debts or issuing the equity securities as the consideration, the initial investment cost
shall be recognized according to the shares of the book value in the consolidated financial statement of the
ultimate controlling party that acquired by the combined party on the combination date. The capital reserves shall
be adjusted for the difference between the initial investment cost of long-term equity investment and the book
value of the paid cash, the transferred non-monetary assets and the borne debts. The retained earnings shall be
adjusted if the capital reserves are insufficient to offset.
For the long-term equity investment after the business combination under common control realized step-by-step
through multiple transactions, the shares of the book value of the owner’ equity of the combined party shall be as
the initial investment cost in the individual financial statements and the consolidated financial statements as per
the shareholding proportion. The capital reserves shall be adjusted for the balance between the sums of the book
value of the equity investment of the combined party held on the combination date and the new investment cost
increased on the combination date minus the initial investment cost of long-term equity investment. The retained
earnings shall be adjusted if the capital reserves are insufficient to offset.
② For the business combination under non-common control, the initial investment cost shall be recognized
according to the fair value of the merger consideration paid on the purchase date. For the long-term equity
investment after the business combination under non-common control realized step-by-step through multiple
transactions, the relevant accounting treatment should be respectively conducted for the individual financial
statement and the consolidated financial statements: 1) In the individual financial statements, the sum of the book
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value of equity investment from the purchased party held before the purchase date and the new investment cost at
the purchase date shall be as the initial investment cost of the investment. Other comprehensive incomes related to
the equity of the purchased party held before the purchase date shall be transferred into the current investment
incomes in the disposal of the investment. 2) In the consolidated financial statements, the equity of the purchased
party held before the purchase date should be measured again according to the fair value of the equity on the
purchase date, and the gap of the fair value and the book value should be recorded into the current investment
incomes. Other comprehensive incomes related to the equity of the purchased party held before the purchase date
shall be transferred into the current investment incomes on the purchase date.
③With the exception of the business combination:
The long-term equity investment acquired by the payment in cash should be as the investment cost as per the
actual purchase payment. The investment costs include fees, taxes and other necessary expenses directly related to
the achieved long-term equity investment.
The long-term equity investment acquired by the issuance of equity securities should be as the investment cost as
per the fair value of the issued equity securities.
The long-term equity investment acquired by the non-monetary assets exchange (the exchange with the
commercial substance) should be as the investment cost as per the fair value of the investment and the payable
taxes.
For the long-term equity investment acquired by the debt reorganization, the creditors shall recognize the fair
value of the enjoyed shares as the investment of the debtors.
(3) Subsequent Measurement and Recognition Method of Profit and Loss
The cost method shall be adopted to account the long-term equity investment controlled by the invested party and
the equity method shall be adopted to account the long-term equity investment with joint control or significant
influence.
(4) Recognition Criteria for the Invested Party with Joint Control or Significant Influence
The joint control on the economic activity appointed as per the contract shall exist when the major finance and the
operating decision related to the economic activity are agreed by the invested party sharing the control right,
which shall be regarded as the joint control on the invested party implemented by other parties. The decision
power to participate in the finance and operating decision on the enterprise, but without control or joint control
with other parties to formulate these policies, shall be regarded as the significant influence on the invested party
implemented by the investment enterprise.
(5) Impairment Test Method and Withdrawing Method
For the impairment test method and the withdrawing method of the long-term equity investment, please refer to
“ Long-term Assets Impairment in Article 11 of Important Accounting Policies and Accounting Estimates in
Notes 5 of Financial Statements”.
15. Entrusted Loans
The entrusted loans shall be made bookkeeping according to the actually entrusted loan amount. The receivable
interests shall be withdrawn according to the interest rate stated in the entrusted loans.
For the impairment test method and the impairment provision withdrawing method of the entrusted loans, please
refer to “Long-term Assets Impairment of Important Accounting Policies and Accounting Estimates in Notes 5 of
Financial Statements”.
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16..Investment Real Estates
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
The term “Investment real estates” refers to the real estates held for generating rentand/orcapital appreciation,
including the right to use any land which has already been rented, the right to use any land which is held and
prepared for transfer after appreciation & the right to use any building which has already been rented.
The company shall make a measurement to the investment real estate through the cost pattern.The company shall
adopt the same depreciation policy as its fixed assets for the investment real estates measured by the cost
pattern-buildings for renting & the same amortization policy as its intangible assets for the right to use any land
for renting.
For the impairment test method and the impairment provision withdrawing method of the .Investment Real
Estates, please refer to “ Long-term Assets Impairment of Important Accounting Policies and Accounting
Estimates in Notes 5 of Financial Statements”.
17.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management,
and operation with service life of more than one year. Fixed assets are recognized when all of the following
conditions are satisfied：Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2)
The cost of the fixed asset can be reliable measured.
（2）Depreciation method
Depreciation Expected useful Annual depreciation
Type Residual rate（%）
method life(Year) rate(%)
Highway and bridge：
Including：Guangfo Expressway Working flow basis 28 years 0% Working flow basis
Fokai Expressway-Xiebian to Sanbao
Working flow basis 40 years 0% Working flow basis
Section
Fokai Expressway-Sanbao to Shuikou
Working flow basis 30 years 0% Working flow basis
Section
Jingzhu Expressway Guangzhu Section Working flow basis 30 years 0% Working flow basis
House Building The straight-line
20-30 years 3%—10% 3%-4.85%
method
The straight-line
Machine Equipment 10 years 3%—10% 9%-9.7%
method
Transportation Equipment The straight-line
5-8 years 3%—10% 11.25%-19.4%
method
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Depreciation Expected useful Annual depreciation
Type Residual rate（%）
method life(Year) rate(%)
Electric Equipment and other The straight-line
5-15 years 3%—10% 6 %-19.4%
method
Provision for depreciation of highways and bridges is made with work amount method. Estimated net residual
value rate is zero. Estimated useful life is determined according to the period of peration right in respect of
charge collection. The concrete calculation method is as follows: The amount of provision for depreciation per
standard vehicle traffic volume is to be calculated based on the estimated total standard vehicle traffic volume
within expected useful life of highways and bridges and the original value or book value of highways and
Bridges. Then provision for depreciation is made according to the actual standard vehicle traffic volume in each
fiscal period.
The company regularly rechecks the estimate total standard vehicle traffic volume with in the remaining
operation period of highways and bridges. When there is big difference between actual standard vehicle traffic
volume and estimated standard vehicle traffic volume, the Company will re-estimate future total standard vehicle
traffic volume and adjust the provision for depreciation per standard vehicle traffic volume to ensure that the book
value of relevant highways and bridges will be completely amortized within useful life.
The company adopts the straight line method for the depreciation of fixed assets except highways & bridges,
and recognizes the depreciation rate according to the fixed asset group, expected useful life & the expected net
salvage value rate.
(3) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset Impairment
Reserves
For the impairment test method and the impairment provision withdrawing method of the Fixed assets, please
refer to “Long-term Assets Impairment in Article 11 of Important Accounting Policies and Accounting Estimates
in Notes 5 of Financial Statements”.
18.Construction-in process
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
1. Calculation of Construction-in-process:The constructions in process are classified & accounted according to the
established projects.
2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets
All the expenditures that bring the construction in process to the expected condition for use shall be the credit
value of the fixed asset. If the fixed asset construction in process has already reached the expected condition for
use, but hasn’t been made the final account; it shall be carried forward to a fixed asset according to its estimated
value based on the budget, cost or actual cost of the construction starting from the date when it reaches the
expected condition for use, and the fixed asset shall be depreciated according to the company ’ s depreciation
policy for fixed assets. After the final account has been made, the original provisional estimated value shall be
adjusted according to the actual cost, but the depreciation which has originally been counted & drawn shall not be
adjusted.
3．Test Method for Construction-in-Process Impairment and Counting & Drawing Method
For the impairment test method and the impairment provision withdrawing method of the Construction-in process ,
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
please refer to “Long-term Assets Impairment in Article 11 of Important Accounting Policies and Accounting
Estimates in Notes 5 of Financial Statements”.
19.Loan expenses
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing
expenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of current
term.
The assets meeting capital conditions refer to the fixed assets, investment real estates and inventories which
are constructed or produced in a long time to reach the predicted use or sale state.
When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct or produce the
assets which meet the capitalization conditions, and expend by cash or transferring non-cash assets or bearing
interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization,
the period of the break of capitalization of Loan costs is not included.
When the construction or production meets the intended use or sale of state of capitalization conditions, the Loan
costs should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used individually, the
capitalization of the loan costs of the assets should be stopped.
Where each part of a asset under acquisition and construction or production is completed separately and is ready
for use or sale during the continuing construction of other parts, but it can not be used or sold until the asset is
entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.
3．Capitalization Suspension Period
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If
the interruption is a necessary step for making the qualified asset under acquisition and construction or production
ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs
incurred during such period shall be recorded into the profits & losses at the current period, till the acquisition and
construction or production of the asset restarts.
4. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the asset which
satisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less weighted
average of specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied.
Capitalizing rate is determined according to weighted average interest of common Loan.
If the Loan has discount or premium, the discount or premium amount should be determined according to
actual interests in each accounting period. The interest amount should be adjusted in each period.
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20.Intangible assets
(1) Pricing method, useful life and impairment test
1. The valuation methods of intangible assets
(1)The initial measurement is conducted according to the actual cost when the intangible assets are acquired
The cost of the purchased intangible assets includes its buying price, relevant tax and the othe expenses that
are directly attributed to this assets meeting its predetermined objective and other expenses that occur. The buying
price of intangible assets is over the deferred payment under normal credit conditions, which has the nature of
financing materially, the cost of intangible assets is determined on the basis of the present value of its buying
price.
We acquire the mortgaged intangible assets from debtors through debt restructuring and determine the entry
value on the basis of the fair value of the intangible assets,we have the balance between the book value of debt
restructuring and the fair value of intangible assets used for mortgage charged to the current profit and loss.
The entry value of the non-monetary assets exchanged into by the non-monetary assets are determined on the
basis of the fair value of the assets exchanged out if the exchange of non-monetary assets has commercial nature
and the assets exchanged into or out can be reliably measured, unless there is authentic evidence indicating that
the fair value of assets exchanged into are more reliable; if the non-monetary assets that cannot meet the above
prerequisite use the book value of the assets exchanged out and relevant taxes payable as the cost of the
non-monetary assets, the profit and loss is not confirmed.
The entry value of the intangible assets acquired by the absorption merger under the control of one company is
determined by the book value of the merged party; the entry value of the intangible assets acquired by the
absorption merger that is not under the control of one company is determined by the fair value.
The cost of the intangible assets developed internally includes the materials consumed in developing the assets,
cost of service, registration fees, other patent used in developing, amortization of concession and interest charges
meeting the capitalization conditions and other direct costs that occur before the intangible assets meeting the
predetermined objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.
The intangible assets that have limited serviceable life are amortized by the straight-line method during the period
when the assets can bring about economic interests; The intangible assets are deemed as uncertain serviceable life
and are not amortized if it is impossible to expect the period when the assets could bring about economic interests.
At the end of period, the Group shall check the service life and amortization method of intangible assets with
finite service life, if there is any change, it shall be regarded as a change of the accounting estimates. Besides, the
Group shall check the service life of intangible assets without certain service life, if there is any evidence showing
that the period of intangible assets to bring the economic benefits to the enterprise can be prospected, it shall be
estimated the service life and amortized in accordance with the amortization policies for intangible assets with
finite service life.
（2） Provision for the depreciation of value of the intangible assets
For the impairment test method and the impairment provision withdrawing method of the Intangible assets, please
refer to “Long-term Assets Impairment of Important Accounting Policies and Accounting Estimates in Notes 5 of
Financial Statements”.
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21.Impairment of Long-term assets
(1) Scope
The assets Impairment main includes long-term equity investment, investment property (the investment property
measured by the fair value excluded), fixed assets, projects under construction, engineering material, intangible
assets (the capitalized development expenditure included), asset group, combination of asset group, business
reputation, etc..
(2) Recognition of Possible Impairment Assets
The company makes judgment of the assets if there exists the possible impairment at the balance sheet date. The
intangible assets with indefinite goodwill and service life due to the combination of enterprise, shall be conducted
the impairment test every year regardless of the impairment. The impairment may occurs for the assets if there is
the following status:
① The market price of assets fall sharply in the current period, and the decline is obviously beyond that estimated
due to the passage of time or normal use.
② The significant changes in the economy, technology or legal environment operated by the company and the
assets market in the current or the near future adversely affect the company.
③ The improvement of the market interest rates or other market investment returns in the current period,
influence the company to calculate assets estimating the discount rate of the present value of future cash flow and
result in the sharp drop of the recoverable amount of the assets.
④ There is evidence that shows the assets have become obsolete or the entities have been damaged.
⑤ The assets have been or will be idle, terminated the use or planned to dispose in advance.
⑥ The evidence in the internal report of the company shows that the economic performance of assets has been
less than or lower than the expected, such as the net cash flow created by assets or the achieved operating profit
(or loss) is far below (or above) the estimated amount.
⑦ Other evidences indicate the impairment of assets may have occurred.
(3) Measurement of the Recoverable Amount of the Assets
The recoverable amount shall be estimated if there exists the impairment for the assets. The recoverable amount
should be recognized according to the higher one between the net amount of the fair value minus the disposal
costs and the present value of the cash flow of assets expected in the future.
(4) Determination of Asset Impairment Loss
The measurement results of the recoverable amount show that the book value of assets shall be reduced to the
recoverable amount and the reduced amount shall be recognized as the impairment loss of assets and recorded into
the current profits and losses, and the impairment provisions of the relevant assets are withdrawn if the
recoverable amount of the assets is less than the book value. After the recognition of the assets impairment loss,
the depreciation or amortization costs of the impairment assets should be made adjustment accordingly in the
future period in order to make the assets to systematically amortize the book value of the assets after adjusted
within the remaining service life (the estimated residual value deducted). The impairment loss of assets after
recognized shouldn’t be reversed in the future accounting period.
(5) Recognition and Impairment Treatment of Assets Group
If there is the impairment for one asset, the company shall estimate the recoverable amount based on the
individual asset. If it is difficult for the company to estimate the recoverable amount of the individual asset, the
recoverable amount of asset group shall be recognized on the basis of the asset group which the asset is belong to.
The recognition of the asset group should be made on the basis of the main cash inflow generated by the assets
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
group that if is independent to the cash inflow of other assets or assets group.
The corresponding impairment loss shall be recognized if the recoverable amount of the assets group or the assets
group combination is less the book value (the book value of the assets group or the assets group combination
should include the amortization quota relevant to corporate assets and goodwill for the assets group or the assets
group combination amortized by the corporate assets and the goodwill). The book value of goodwill in the
amortized assets group or assets group combination shall be firstly offset for the impairment losses, and the book
value of other assets shall be offset in proportion according to the proportion of the book value of other assets in
the assets group or the assets group combination, with the exception of the goodwill.
(6) The Goodwill Impairment
The company has conducted the impairment test at least every year for the goodwill established by the business
combination. The book value of the goodwill generated by the combination shall be amortized into the related
asset group from the purchase date. If difficult to amortize into the relevant asset group, the book value shall be
amortized into the relevant asset group combination. The relevant asset group or asset group combination refers to
that benefitting from the synergistic effect of the business combination and is not more than the report portion
recognized by the company.
When the relevant asset group or the asset group combination including the goodwill are conducted the
impairment test, the impairment test should be firstly conducted for the asset group without the goodwill or the
asset group combination, the recoverable amount shall be calculated and the corresponding impairment loss shall
be recognized by comparison with the relevant book value if there exists the impairment for the asset group
relevant to the goodwill or the asset group combination. Then the impairment test should be conducted for the
asset group with the goodwill or the asset group combination, the impairment loss of the goodwill shall be
recognized and made the treatment according to the provisions of the asset group impairment stated in the notes if
the recoverable amount of the relevant asset group or the asset group combination is less than the book value by
comparison of the book value of these relevant asset group or the asset group combination (including the book
value of the goodwill amortized) with the recoverable amount.
22.Long-term amortizable expenses
Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods of all expenses
are more than one year (excluding 1 year), they should be amortized in the regulated years.
23.Remuneration
（1）Scope of employees' salary
Remuneration refers to all kinds of rewards or compensation that the Company gives to get in return for the
services its employees provide or employment termination. It includes short-term compensation, post-employment
benefits, demission benefits and other long-term employee
benefits.Enterprises to provide employees spouse, child welfare, dependents, survivors and other beneficiaries of
deceased employees, etc., also belong to payroll.
During the company's accounting staff to provide services, the actual wages, bonuses, allowances and subsidies, w
elfare, medical insurance, work injury insurance and maternity insurance and other social insurance, housing fund
confirmed, labor union funds, employee education funds and as a liability profit or loss or costs related assets. If t
he debt is expected to provide services after the end of the annual reporting period in which an employee can not b
e fully paid within twelve months, and the financial impact is material, the amount will be discounted liabilities m
easured after.
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(2) Accounting methods for post-employment benefits
Post-employment benefits refer to the compensation and benefits that the Company gives to get in return for
employees ’ services for their retirement or employment termination, excluding short-term compensation and
demission benefits. It falls into two categories, defined contribution plans and defined benefit plans.
① The defined contribution plan: the company shall no longer bear the further obligation to pay severance
benefit plans after the company deposits the fixed costs to the independent funds. The basic pension insurance and
the unemployment insurance shall be recognized as the liability according to the payable amount accounted by the
defined contribution plans and recorded onto the current profits and losses or the relevant asset costs during the
accounting period of the services provided by the staffs.
② The defined benefit plan: the severance benefit plans with the exception of the defined contribution plans.
(3) Accounting Treatment Method of Demission Welfare
The Company offers compensation to terminate employment with its employees before it expires or encourage
them to accept lay-off. Such compensation is demission benefits and counted in current profit and loss. The
employee compensation liabilities generated by the demission welfare shall be recognized on the early date and
recorded into the current profits and losses: (1) when the company can’ withdraw the demission welfare provided
due to the rundown suggestion or the termination of labor relations plans. (2) when the enterprise recognizes the
costs or the expenses related to the reorganization of demission welfare payment.
The economic compensation before the official retirement date shall be belong to the demission welfare when the
implementation of the internal retirement plan for workers. During the period from the termination of service date
to the normal retirement date, the paid internal retirement payroll and social insurance charges shall be once
recorded into the current profits and losses. The economic compensation after the official retirement date (such as
the normal retirement pension) should be handled according to the welfares after the demission.
24.Estimated liabilities
The company should recognize the related obligation as a provision for liability when the obligation meets the
following conditions:
(1) That obligation is a present obligation of the enterprise;
(2) It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
(3) A reliable estimate can be made of the amount of the obligation. On the balance sheet date, an enterprise shall
take into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the
Contingencies to measure the estimated liabilities in accordance with the best estimate of the necessary expenses
for the performance of the current obligation.
When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized as an asset only
when it is virtually certain that the reimbursement will be obtained. Besides, the amount recognized for the
reimbursement should not exceed the book value of the estimated liabilities
25.Bond payable
When the company is issuing bonds, the total price issued should be included in the “Payable bonds” subject.
The difference between bond issuance total amount and the total amount of bond face value should be worked
as bond premium or discount and be amortized within the bond period according to actual interest rate and
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vertical line method, and be treated according to borrowing costs described below.
26.Other Comprehensive Incomes
Other comprehensive incomes refer to the profits and losses unrecognized in the current profits and losses
according to other provisions of accounting standards. There are two reports:
(1) Other comprehensive incomes that unable to be reclassified into the profits and losses in the future accounting
period, mainly including the changes caused by the net liabilities and the net assets of the defined benefit plan that
re-measured and the shares of other comprehensive incomes that accounted and unable to be reclassified into the
profits and losses for the invested party in the future accounting period according to the equity method.
(2) Other comprehensive incomes that reclassified into the profits and losses in the future accounting period when
the requirements are met, the shares of other comprehensive incomes that accounted and reclassified into the
profits and losses for the invested party in the future accounting period according to the equity method when the
requirements are met, the profits or losses caused by the fair value changes of the sellable financial assets, the
profits or losses generated by the sellable financial assets reclassified for the held-to-maturity investment, the
effective hedging portion of the profits and losses issued by the cash flow hedging instruments, and the translation
differences of foreign financial statements.
27. Revenues
Whether the Company needs to comply with the disclosure requirements for specific industries
No
The company’s incomes mainly include the toll service revenues and the services provision.
(1) The recognition principle of the toll service revenues is that the toll revenues refer to the charges of operating
the toll roads and shall be recognized in the actual charge.
(2) The recognition principle of the services provision is as follows:
The labor services started and completed within the same fiscal year shall be recognized as the revenues when the
labor services finished. If the labor services started and completed in the different fiscal year and under the
reliable estimation of the provided services transaction results, the company shall recognize the relevant service
incomes according to the completion percentage method at the balance sheet date. The results of the transaction
can be estimated reliably when the following requirements are all met: (1) total revenues and total labor costs can
be measured reliably. (2) the economic benefits relevant to the transaction will flow into the enterprise. (3) the
competition degree of the labor services can be reliably determined.
28. Government Grants
（1）Government Grants
Government grants means that the Company obtains monetary or non monetary assets free of charge from
the government, excluding the capital invested by the government as an owner.
The company recognizes the government grants when the company can meet the conditions of government
grants and be able to receive the government grants. Thereinto:
(1) If the government grant is a monetary asset, it shall be measured according to the amount received or
receivable; If the government grant is a non-monetary asset, it shall be measured at fair value, and if the fair value
129
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
cannot be obtained reliably, it shall be measured according to the nominal amount.
⑵ The government grants pertinent to assets are used to write down the carrying value of the underlying
assets or are recognized as deferred income. If the government grants pertinent to assets are recognized as deferred
gains, it shall be included in the profits and losses in a reasonable and systematic manner within the useful life of
the underlying asset. The Government grants, measured in nominal amounts, are directly included in current
profits and losses. The government grants pertinent to income that are used to compensate the relevant costs or
losses of the subsequent period of the enterprise are recognized as deferred income and are credited to the current
profit or loss or are written down to offset the costs for the period when the relevant expenses are recognized;
those government grants used for compensating the related expenses or losses incurred shall be directly included
in the current profits and losses.
⑶ Government grants related to the daily activities of the enterprise are included in other income or are
written down to offset costs in accordance with the economic business nature. Government grants that are not
related to the day-to-day activities of the enterprise are included in non-operating income and expenditure.
Where the recognized government grant needs to be refunded, then the accounting treatment shall be carried
out in the period that it needs to be refunded according to the following stipulations: (1) Where it was written
down the book value of the underlying assets at the time of initial recognition, then the book value of the assets
shall be adjusted; (2) Where there is a related deferred income, it shall write-down the book balance of related
deferred income and the excess part shall be included in the current profit and loss; (3) Where belongs to other
cases, that shall be directly included in the current profits and losses.
29.Deferred income tax assets and deferred income tax liabilities
The company is likely to determine the deferred income tax assets produced from deductible temporary
differences with the limit of offsetting the taxable income of temporary difference.
The Company confirms the temporary differences of the taxable that is not paid in the current and prior periods as
the deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger and
those will affect either accounting profit or the temporary differences of the taxable income when the transactions
occur are not included in the deferred income tax liabilities.
30.Accounting Methods of Income tax
The company’s income tax is accounted in Balance sheet liability approach.
The company recognizes the sum of current income tax and deferred tax as the income tax expenses(or income) in
the income statement on the basis of calculating and determining the income tax of the current period(namely
the current taxes payable) and the deferred tax (the deferred tax expenses or income ), but excluding the
effects of the business combination and the income taxes related to the transactions or events directly recorded
in the owner’s rights and interests.
31.Change of main accounting policies and estimations
⑴Change of accounting policies
√ Applicable □Not applicable
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
On June 26,2018, The Ministry of Finance issued the Notice on Revising and Issuing the Format of General
Enterprise Financial Statements for 2018 (Caikuai [2018] No. 15), which adjusted the format of enterprise
financial statements accordingly and merged the original "notes receivable" and "accounts receivable" line items
into "notes receivable and accounts receivable"; The items in the original "interest receivable", "dividend
receivable" and "other receivables" lines are merged into "other receivables"; The items in the original "fixed
assets" and "fixed assets liquidation" lines are merged into "fixed assets"; The items in the original "engineering
materials" and "construction in progress" lines are merged into "construction in progress"; The items in the
original "notes payable" and "accounts payable" lines are merged into "notes payable and accounts payable"; The
items in the original "interest payable", "dividend payable" and "other payables" lines are merged into "other
payables"; The items in the original "long-term payables" and "special payables" lines are merged into "long-term
payables"; In the income statement, the detailed items of "management expenses" and "research and development
expenses" are broken down under the item of "management expenses"; The detailed items of "interest expense"
and "interest income" are broken down under "financial expense" in the income statement. The Company adopts
retrospective adjustment method for this accounting policy change, and retroactively adjusts the items reported in
2017 financial statements. The details are as follows:
2017.12.31/ Year 2017 Before adjustment After adjustment Increase/decrease
Notes receivable and account 92,642,625.45 92,642,625.45
receivable
Notes receivable
Account receivable 92,642,625.45 -92,642,625.45
Construction in process 356,062,655.95 357,612,211.95 1,549,556.00
Engineering material 1,549,556.00 -1,549,556.00
Notes payable and account payable 266,934,026.99 266,934,026.99
Notes payable
Account payable 266,934,026.99 -266,934,026.99
Interest payable 8,494,355.93 -8,494,355.93
Dividend payable 26,840,792.20 -26,840,792.20
Other account payable 86,663,237.94 121,998,386.07 35,335,148.13
Adminisstrative expenses 189,585,575.97 179,811,709.59 -9,773,866.38
R & D Costs 9,773,866.38 9,773,866.38
⑵Change of accounting estimations
□ Applicable √ Not applicable
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
Toll income, Rent income and Labour
VAT 3%、5%、6%、10%、11%、16%、17%
income
City maintenance and construction tax The actual payment of turnover tax 7%、5%
Enterprise income tax Taxable income 25%
131
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Tax category Tax basis Tax rate
.Education surcharges The actual payment of turnover tax 3%
Local Education surcharges
The actual payment of turnover tax 2%
2.Preferential tax
Nil
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 53,211.49 66,065.04
Bank deposit 2,123,807,010.07 2,362,279,050.70
Other 664,774.76 697,584.68
Total 2,124,524,996.32 2,363,042,700.42
Other note
The balance of restricted bank deposits at the end of the period was 1,221,200.00 yuan, which was the land
reclamation fund deposited into the fund custody account for the reconstruction and expansion project of sanbao
to shuikou section of Fokai Expressway.
2.Notes receivable and Account receivable
In RMB
Items Amount in year-end Balance Year-beginning
Account receivable 91,076,995.07 92,642,625.45
Total 91,076,995.07 92,642,625.45
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book Balance Bad debt provision
Amount Proportion(%) Amount Proportion Book value Amount Proportion Amount Proportion Book value
(%) (%) (%)
Account receivable with
single major amount and
45,159,424.41 48.95% 45,159,424.41 65,760,470.23 70.64% 65,760,470.23
withdrawal bad debt
provision for single item
Account receivable
withdrawal bad debt
47,094,450.65 51.05% 1,176,879.99 2.50% 45,917,570.66 27,331,295.37 29.36% 449,140.15 1.64% 26,882,155.22
provision by group of
credit risk characteristics
Total 92,253,875.06 100.00% 1,176,879.99 1.28% 91,076,995.07 93,091,765.60 100.00% 449,140.15 0.48% 92,642,625.45
133
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable □Not applicable
In RMB
Amount in year-end
Receivable accounts（Unit） Bad debt
Receivable accounts Proportion Reason
provision
Guangdong Union Electronic Services It is expected to be fully
45,159,424.41
Co., Ltd. recovered after a single test
Total 45,159,424.41 -- --
Account receivable on which bad debt provisions are provided on age basis in the group：
√ Applicable □Not applicable
In RMB
Balance in year-end
Aging
Receivable accounts Bad debt provision Withdrawal proportion
Subitem within 1 year
Subtotal within 1 year 41,182,465.65 0.00%
1-2 years 3,463,964.90 346,396.49 10.00%
2-3 years 2,109,716.10 632,914.83 30.00%
3-4 years 278,304.00 139,152.00 50.00%
4-5 years 15,833.33 14,250.00 90.00%
Over 5 years 44,166.67 44,166.67 100.00%
Total 47,094,450.65 1,176,879.99 2.50%
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision：
Nil
Accounts receivable with individually insignificant amount and individual
provision for bad debts:
Nil
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is 727,739.84 yuan ; recovery or payback for bad debts Amount is
0.00 yuan.
Where the current bad debts back or recover significant amounts: Nil
134
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Aging Proportion(%) Bad debt
provision
Guangdong Union Electronic Services Co., Ltd. 45,159,424.41 Within 1 year 48.96 -
Guangdong Humen Bridge Co., Ltd. 12,579,159.31 Within 1 year 13.64 -
Shandong Boan Intelligent Technology Co., Ltd 11,885,923.95 Within 2 years 12.88 230,236.00
Guangdong Jingzhu Expressway Guangzhu North 5,280,850.02 Within 1 year 5.72 -
Section Co., Ltd.
Gansu Ziguang Intelligent Transportation & 1,901,000.00 Within 1 year 2.06 -
Control Technology Co., Ltd.
Total 76,806,357.69 -- 83.26 230,236.00
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
Other note：
3. Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance Year-beginning
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 1,708,205.40 89.30% 4,238,442.26 95.20%
1-2 years 8,721.49 0.20%
2-3 years 35,000.00 0.79%
Over 3 years 204,738.00 10.70% 169,738.00 3.81%
Total 1,912,943.40 -- 4,451,901.75 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
Nil
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Name Amount Time Proportion(%)
Guangdong Litong Real estate Investment Co., Ltd. 735,092.38 Within 1 year 38.43
135
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
CPIC 594,467.44 Within 1 year 31.08
Guangzhou Maritime Court 169,738.00 Over 5 years 8.87
Zhaoqing Yuezhao Highway Co., Ltd. 144,702.50 Within 1 year 7.56
Dongguan Yongyao Photoelectricity Technology 93,000.00 Within 1 year 4.86
Co., Ltd.
Total 1,737,000.32 90.80
Other note：
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 1,205,472.90
Other receivable 15,281,783.12 15,415,512.07
Total 16,487,256.02 15,415,512.07
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks
1,205,472.90
investment No.1 Limited partnership enterprise
Total 1,205,472.90
（2）Significant dividend receivable aged over 1 year
Nil
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(2).Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Balance in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book Balance Bad debt provision
Amount Proportion Amount Proportion( Book value Amount Proportion( Amount Proportion( Book value
(%) %) %) %)
Other Account receivable with
single major amount and
51,535,736.09 77.11% 51,535,736.09 100.00% 53,351,565.01 75.72% 53,351,565.01 100.00%
withdrawal bad debt provision for
single item
Other Account receivable
withdrawal bad debt provision
15,298,012.11 22.89% 16,228.99 0.11% 15,281,783.12 17,110,594.66 24.28% 1,695,082.59 9.91% 15,415,512.07
by group of credit risk
characteristics
Total 66,833,748.20 100.00% 51,551,965.08 77.13% 15,281,783.12 70,462,159.67 100.00% 55,046,647.60 78.12% 15,415,512.07
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
- Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □Not applicable
In RMB
Balance in year-end
Other receivable（Unit）
Other receivable Bad debt provision Proportion Reason
The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd,
Guangdong Expressway technology investment Co., Ltd once paid 18,000,000.00 yuan
into Kunlun Securities Co., Ltd. Qinghai Province Xining City’s intermediate people’s
court made a adjudication under law declared that Kunlun Securities Co., Ltd went
bankrupt and repaid debt in November 11, 2006. On March 2007, The Company and
Kunlun Securities Co.,Ltd. 47,528,056.18 47,528,056.18 100.00% Guangdong Expressway Technology Investment Co., Ltd had switched the money that
paid into Kunlun Securities Co., Ltd to other account receivable, and follow the careful
principle to doubtful debts provision. The 710,349.92 yuan Credit was Recovered in
2008, The 977,527.77 yuan credit was recovered in 2011, The 652,012.00 yuan Credit
was recovered in 2014, The 1,815,828.92 yuan Credit was recovered in 2018, and the
provision for had debt is deducted.
Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin
Enze Organic Fertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it was entrust
loan, three million was temporary borrowing 12,400.00 yuan is the commission loan
interest, the rest of it was advance money for another, Beijing Gelin Enze Organic
Beijing Gelin Enze Fertilizer Co., Ltd’s operating status was had and had already ceased producing,
4,007,679.91 4,007,679.91 100.00%
Organic Fertilizer Co., Ltd. Accordingly, the controlling subsidiary of the company Guangdong Expressway
Investment Co., Ltd. accounted full provision for Bad debt 12,220,079.91 yuan
provision. The company in 2014 recovered arrears of 8,000,000.00
yuan, rushed back to the provision for bad debts and write off uncollected interest entrust
ed loans according to The settlement agreement of 212,400.00 yuan.
51,535,736.09 51,535,736.09 -- --
138
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√Applicable □Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Subtotal within 1 year 6,988,839.31
1-2 years 10.00%
2-3 years 30.00%
Over 3 years 32,457.98 16,228.99 50.00%
3-4 years 90.00%
4-5 years 100.00%
Over 5 years 7,021,297.29 16,228.99 0.23%
Total
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
√ Applicable □ Not applicable
Amount in year-end
Name Other account Bad debt provision Withdrawal Reason
receivable proportion（%）
Shandong Boan Intelligent Technology Co., 1,725,155.40 Guarantees fund
Ltd
Guangdong Litong Real estate Investment 1,505,864.00 Deposit
Co., Ltd
Guangdong Guanghui Expressway Co., Ltd 1,462,587.90 Guarantees fund,
deposit
Guangdong Expressway Co., Ltd. 630,254.38 Administration
expenses,
Guarantees fund
Zhaoqing Yuezhao Highway Co., Ltd. 429,558.65 Guarantees fund,
deposit
Guangdong Xinyue Traffic Investment 415,442.60 Guarantees fund
Co.,Ltd.
Beijing Shibang Weilishi Property 393,331.00 Guarantees fund,
Management Services Co., Ltd. deposit
Guangdong Qinglian Highway Development 313,000.00 Guarantees fund
Co., Ltd.
Guangdong Guangzhu West Line Expressway 185,366.60 Guarantees fund
Co., Ltd.
139
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount in year-end
Name Other account Bad debt provision Withdrawal Reason
receivable proportion（%）
Guangshen Zhu Expressway Co., Ltd. 185,014.40 Guarantees fund
Guangdong Hongkong Zhuhai Macao 149,947.50 Guarantees fund
BridgeShuttle Bus Co., ltd.
Beijing Gongke Feida Transport Engineering 111,335.20 Guarantees fund
Development Co., Ltd.
Guangdong Feida Transportation Engineering 90,920.75 Guarantees fund
Development Co., Ltd.
Guangdong Highway Construction Co., Ltd. 123,283.25 Guarantees fund
Guangdong Road & Bridge Construction 73,773.60 Guarantees fund
Development Co., Ltd.
Chengdu Shuguang Fibre-optical Network 59,758.09 Guarantees fund
Co., ltd.
Guangdong Boda Expressway Co., Ltd. 51,808.80 Guarantees fund
Guangzhou Chengcheng Auto Leasing 30,000.00 Deposit
Service Co., ltd.
Guangdong Jiangzhong Expressway Co., Ltd. 28,120.00 Guarantees fund
Guangzhou Tuzhiling Computer Technology 25,438.80 Guarantees fund
Co., Ltd.
Guangzhou Express Transportation 22,094.40 Guarantees fund
Construction Co., Ltd.
Guangzhou Longfeng Auto Leasing Co., Ltd. 20,000.00 Guarantees fund
Guangzhou Beihuan Expressway Co., Ltd. 16,590.40 Guarantees fund
Guangzhou Huanan Road & Bridge Co., Ltd. 16,000.00 Guarantees fund
Guangzhou Saitisi Electromechanical 15,875.00 Guarantees fund
Installation Engineering Co., Ltd.
Shanxi Hantang Computer Co., Ltd. 14,250.00 Guarantees fund
Guangzhou Daguang Expressway Co., Ltd. 12,749.60 Guarantees fund
Guangdong Shenshan Expressway East 12,000.00 Guarantees fund
Section Co., Ltd.
Guangdong Gaoda Property Development 11,748.00 Guarantees fund
Co.,ltd.
Guangzhou Dingrong Information 10,950.00 Guarantees fund
Technology Co., Ltd.
Guangzhou Suihua Expressway Co., Ltd. 10,400.00 Guarantees fund
Zhongshan Global Environmental 10,000.00 Guarantees fund
Engineering Co., Ltd.
Guangdong Zhonglin Electrical Installation 8,820.00 Guarantees fund
Engineering Co., Ltd.
140
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount in year-end
Name Other account Bad debt provision Withdrawal Reason
receivable proportion（%）
Guangdong Maozhan Expressway Co., Ltd. 8,747.20 Guarantees fund
Guangdong Humen Bridge Co., Ltd. 8,606.50 Guarantees fund
Guangdong Shanfen Expressway Co., Ltd. 8,028.80 Guarantees fund
Guangdong Baomao Expressway Co., Ltd. 7,633.60 Guarantees fund
Guangdong Yuedong Expressway Industry 7,367.20 Guarantees fund
Development Co., Ltd.
Guangdong Guangle Expressway Co., Ltd. 7,248.00 Guarantees fund
Foshan Guangsan Expressway Co., Ltd. 6,492.00 Guarantees fund
Guangdong Jingzhu Expressway Guangzhu 6,064.00 Guarantees fund
North section Co., Ltd.
Guangdong Yangmao Expressway Co., Ltd. 6,004.80 Guarantees fund
Huishen(Yantian)Expressway Huizhou Co., 5,600.00 Guarantees fund
Ltd.
Guangdong Litong Technology Investment 5,273.00 Guarantees fund
Co., Ltd.
Guangdong Maoming Nanda Electric Power 5,000.00 Deposit
Construction Co., ltd.
Guangdong Zhaoyang Expressway Co., Ltd. 4,304.00 Guarantees fund
Guangdong Guangshao Expressway Co., Ltd. 3,762.70 Guarantees fund
Guangdong Yueyun Traffic Co., Ltd. 3,032.00 Guarantees fund
Hongkong Zhuhai Macao Bridge Zhuhai 3,000.00 Guarantees fund
Connecting Line Management Center
Jiangmen Jianghe Expressway Co., Ltd. 2,539.20 Guarantees fund
Guangzhou Guangcong Expressway Co., Ltd. 2,027.20 Guarantees fund
Foshan Nanhai Jiasheng Drinking Water 1,800.00 Deposit
Chain
Shanxi Sihe Traffic Engineering Co., Ltd. 1,600.00 Guarantees fund
Beijing Zhonghe Tianxia Management 1,000.00 Guarantees fund
Consultation Co., Ltd.
Guangdong Weishi Highway Engineering 146.30 Guarantees fund
Co., Ltd.
Total 8,276,714.82
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is 0.00
141
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
yuan ; recovery or payback for bad debts Amount is 1,960,695.26 yuan.
Where the current bad debts back or recover significant amounts
In RMB
Name Amount Way Reason Basis
Kunlun Securities Co., Received bank Liquidation group It is not expected to recover the full
1,815,828.92
Ltd. deposit allocation provision for bad debts
Total 1,815,828.92 --
(3)The actual write-off other accounts receivable
In RMB
Items Amount
The actual write-off other accounts receivable 1,533,987.26
Including significant other receivable:：
In RMB
Writing-off
Name Nature Amount Reason Related transaction
procedure
Heshan Traffic Real estate It is not expected to
Other 1,470,000.00 Board approval No
Development Co.,Ltd. recover
Total -- 1,470,000.00 -- -- --
Note：
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Securities trading settlement funds balance 47,528,056.18 49,343,885.10
Guarantee deposit 7,813,222.94 5,973,582.34
Current account of Gelin enze 4,007,679.91 4,007,679.91
Pretty cash 3,800,100.00 3,950,100.00
Advertising and service fee 924,266.65 2,187,578.36
Other 2,760,422.52 4,999,333.96
Total 66,833,748.20 70,462,159.67
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable(%)
Kunlun Securities Securities trading set 47,528,056.18 Over 5 years 71.11% 47,528,056.18
142
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Co.,Ltd tlement funds
Beijing Gelin Enze Current account 4,007,679.91 Over 5 years 6.00% 4,007,679.91
Shandong Boan
Intelligent Retention Money 1,725,155.40 Within 1 year 2.58%
Technology Co., Ltd.
Guangdong Litong
Real Estates
Deposit 1,505,864.00 1-2 years 2.25%
Investment Co.,
Ltd.
Guangdong
Guanghui Within 4 year and
Deposit 1,478,904.68 2.21%
Expressway Co., Over 5 years
Ltd.
Total -- 56,245,660.17 -- 84.15% 51,535,736.09
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
Other note：
5.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industries
No
（1）Inventory types
In RMB
Year-end balance Year-beginning balance
Items Provision for bad Provision for bad
Book Balance Book value Book Balance Book value
debts debts
Raw material 81,017.91 81,017.91
Total 81,017.91 81,017.91
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
The company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No.11 - listed companies engaged in Jewelry industry " disclosure requirements
143
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
No
（2）Inventory falling price reserves
Nil
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
Nil
(4) Completed unsettled assets formed from the construction contact at the period-end
Nil
6.Non-current asset due within 1 year
In RMB
Items Year-end balance Year-beginning balance
Advance business tax 51,745.32 55,669.14
Total 51,745.32 55,669.14
Other note：
7.Other current assets
In RMB
Items Year-end balance Year-beginning balance
Input tax to be deducted 76,576.08
Total 76,576.08
Other note：
8. Available-for-sale financial assets
(1) List of available-for-sale financial assets
In RMB
Amount in year-end Balance Year-beginning
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Available-for-sale equity
1,705,811,594.53 37,020,000.00 1,668,791,594.53 1,788,150,824.93 36,793,200.00 1,751,357,624.93
Instruments
Measured by fair value 870,443,292.80 870,443,292.80 952,782,523.20 952,782,523.20
Measured by cost 835,368,301.73 37,020,000.00 798,348,301.73 835,368,301.73 36,793,200.00 798,575,101.73
Total 1,705,811,594.53 37,020,000.00 1,668,791,594.53 1,788,150,824.93 36,793,200.00 1,751,357,624.93
(2) Available-for-sale financial assets measured by fair value at the period-end
In RMB
144
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Available-for-sale
Available-for-sale Debt
Type equity Total
instruments
instruments
Cost of the equity
instruments/amortized
517,560,876.80 517,560,876.80
cost of the liabilities
instruments
Fair value 870,443,292.80 870,443,292.80
Changed amount of the
fair value accumulatively
352,882,416.00 352,882,416.00
included in other
comprehensive income
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of December 31, 2018 of 3.70 yuan, the final calculation of fair value was
870,443,292.80 yuan.
145
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholdin
Cash bonus of
g proportion
Investee the reporting
Period-begin Period-begin among the
Increase Increase Decrease Period -end period
investees
Huaxia Securities Co., Ltd.
5,400,000.00 5,400,000.00 5,400,000.00 5,400,000.00 0.27%
（Note 1）
Huazheng Assets Management
1,620,000.00 1,620,000.00 1,393,200.00 226,800.00 1,620,000.00 0.54%
Co. Ltd.（Note 2）
Guangdong Guangle
748,348,301.73 748,348,301.73 9.00%
Expressway Co., Ltd.
Guangdong Radio and
Television Networks investment
50,000,000.00 50,000,000.00 3.11% 1,205,472.90
No.1 Limited partnership
enterprise
Kunlun Securities Co., Ltd.
30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 5.74%
（Note 3）
Total 835,368,301.73 835,368,301.73 36,793,200.00 226,800.00 37,020,000.00 -- 1,205,472.90
Note 1: The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in December 2005. The Company made full provision for impairment in
respect of this long-term equity investment of RMB 5.4 million.
Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co., Ltd. As the June 30, 2005, the amount of net assets of Huazheng
Asset Management Co., Ltd. in book was 279.132 million yuan and the appraised value was - 2299.5486 million yuan ,On October 14, 2005, Jianyin CITIC Asset Management Co.,
Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset Management Co., Ltd. was willing to pay the price of not more than 42
million yuanto acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions. The Company replied on December 5, 2005, abandoning the
preemptive right under the same conditions. The Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62 million
yuan. During the reporting period,The company judged that the possibility of recovery of the investment was very small and made a provision of 226,800 yuan for impairment.
Note 3.The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered liquidation procedure in October 2005. A wholly owned subsidiary of Guangdong Expressway
Technology Investment Co., Ltd. Will invest Kunlun Securities Co., Ltd.'s full provision for impairment of 30 million yuan.
146
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
Available-for-sale Available-for-sale
Type Total
Equity instruments Debt instruments
Balance of the withdrawn
36,793,200.00 36,793,200.00
impairment at the period-begin
Current period withdrawal 226,800.00 226,800.00
Balance of the withdrawn
37,020,000.00 37,020,000.00
impairment at the period-end
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair
value or non temporary decline but not related to impairment provision
Nil
147
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
9. Long-term equity investment
In RMB
Increase/decrease
Investment Withdraw Closing
Additi Negat Adjustment of Cash bonus or balance of
Investees Opening balance profit and loss al of Closing balance
onal ive other Changes of profits impairment
recognized impairme Other
invest invest comprehensive other equity announced to provision
under the equity nt
ment ment income issue
method provision
I. Joint venture
Guangdong Guanghui
949,906,833.96 290,709,616.82 26,710,620.00 274,805,847.20 992,521,223.58
Expressway Co., Ltd.
Zhaoqing Yuezhao Highway
291,906,117.18 58,355,080.40 43,088,859.48 307,172,338.10
Co., Ltd.
Subtotal 1,241,812,951.14 349,064,697.22 26,710,620.00 317,894,706.68 1,299,693,561.68
2. Affiliated Company
Shenzhen Huiyan Expressway 196,197,198.21 34,356,558.66 230,553,756.87
Guangdong Jiangzhong Expressway
173,502,304.11 11,806,234.72 9,983,895.07 175,324,643.76
Co.,. Ltd.
Ganzhou Kangda Expressway 208,768,922.86 32,216,095.66 21,000,000.00 219,985,018.52
Gan Ganzhou Gankang Expressway 204,404,703.35 5,591,207.36 209,995,910.71
Guangdong Yueke Technology Petty
215,548,332.90 15,134,350.84 10,989,125.47 219,693,558.27
Loan Co., Ltd.
Guoyuan Securities Co., Ltd. 807,040,587.43 15,703,921.74 -20,400,286.56 -5,404.45 11,940,297.90 790,398,520.26
Subtotal 1,805,462,048.86 114,808,368.98 -20,400,286.56 -5,404.45 53,913,318.44 1,845,951,408.39
Total 3,047,275,000.00 463,873,066.20 -20,400,286.56 26,705,215.55 371,808,025.12 3,145,644,970.07
Other note
148
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
10. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Items Houses and buildings Land use right Construction in progress Total
I.Original value
1.Opening balance 12,664,698.25 12,664,698.25
2.Increased amount of
2,971,831.10 2,971,831.10
the period
（1）Outsourcing
(2)Inventory, Fixed
assets and Construction 2,971,831.10 2,971,831.10
project into
(3)Enterprise
consolidation
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 2,971,831.10 15,636,529.35
II.Accumulated
depreciation accumulated
amortization
1.Opening balance 9,908,940.57 9,908,940.57
2.Increased amount of
464,213.40 1,684,367.84 2,148,581.24
the period
(1)Withdrawal or
464,213.40 36,784.68 500,998.08
amortization
（2）Fixed assets
1,647,583.16 1,647,583.16
reclassification transfer
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 10,373,153.97 1,684,367.84 12,057,521.81
III. Impairment provision
1.Opening balance
2.Increased amount of
the period
（1）Withdrawal
149
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Houses and buildings Land use right Construction in progress Total
3.Decreased amount
of the period
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 2,291,544.28 1,287,463.26 3,579,007.54
2.Opening book 2,755,757.68 2,755,757.68
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book balue Reason
Transportation and other ancillary
Transportation and other ancillary facilities 1,587,844.98
facilities, Not accreditation
Other note
150
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
11. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 7,600,046,319.91 8,505,434,890.71
Total 7,600,046,319.91 8,505,434,890.71
(1) List of fixed assets
In RMB
Jingzhu Electricity
Guangfo House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
Expressway buildings equipment equipment
Guangzhu section other
I. Original price
1.Opening balance 1,460,270,190.66 8,947,295,870.80 5,130,574,408.53 351,864,147.46 126,486,080.83 60,529,297.78 640,530,500.31 16,717,550,496.37
2.Increased amount of
44,402,479.10 -3,779,939.72 1,333,386.45 26,318,552.25 68,274,478.08
the period
（1）Purchase 53,235,440.68 -3,779,939.72 1,333,386.45 15,622,813.44 66,411,700.85
（2）Transfer of project
-8,832,961.58 10,695,738.81 1,862,777.23
under construction
(3)Increased of Enterprise
consolidation
3.Decreased amount of the
2,971,831.10 332,304,199.42 9,266,189.87 7,500.00 13,117,212.16 7,425,369.21 365,092,301.76
period
（1）Disposal or scrap 332,304,199.42 3,524,279.83 7,500.00 13,117,212.16 13,167,279.25 362,120,470.66
（2）Other Out 2,971,831.10 5,741,910.04 -5,741,910.04 2,971,831.10
4.Closing balance 1,460,270,190.66 8,988,726,518.80 4,798,270,209.11 342,597,957.59 122,698,641.11 48,745,472.07 659,423,683.35 16,420,732,672.69
II. Accumulated
depreciation
1.Opening balance 1,460,270,190.66 3,440,540,410.91 2,553,720,215.76 224,291,495.10 60,384,283.80 48,027,809.99 424,881,199.44 8,212,115,605.66
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Jingzhu Electricity
Guangfo House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
Expressway buildings equipment equipment
Guangzhu section other
2.Increased amount of
501,266,009.29 243,518,482.36 13,782,643.27 10,770,659.92 2,703,051.23 35,336,751.07 807,377,597.14
the period
（1）Withdrawal 501,266,009.29 243,518,482.36 13,782,643.27 10,770,659.92 2,703,051.23 35,336,751.07 807,377,597.14
3.Decreased amount of the
1,647,583.16 171,593,287.96 5,740,973.99 7,200.00 12,311,357.21 7,506,447.70 198,806,850.02
period
（1）Disposal or scrap 171,593,287.96 1,264,757.51 7,200.00 12,311,357.21 11,982,664.18 197,159,266.86
1,647,583.16 4,476,216.48 -4,476,216.48 1,647,583.16
4.Closing balance 1,460,270,190.66 3,940,158,837.04 2,625,645,410.16 232,333,164.38 71,147,743.72 38,419,504.01 452,711,502.81 8,820,686,352.78
II. Accumulated
depreciation
1.Opening balance
2.Increased amount of
the period
（1）Withdrawal
3.Decreased amount of the
period
（1）Disposal or scrap
4.Closing balance
IV. Book value
1.Closing book value 5,048,567,681.76 2,172,624,798.95 110,264,793.21 51,550,897.39 10,325,968.06 206,712,180.54 7,600,046,319.91
2.Opening book 5,506,755,459.89 2,576,854,192.77 127,572,652.36 66,101,797.03 12,501,487.79 215,649,300.87 8,505,434,890.71
⑵Temporarily idle fixed assets
Nil
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
⑶Fixed assets through financial leasing
Nil
⑷Tenancy of fixed assets through operating lease
Nil
⑸Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Transportation and other ancillary
House and buildings 83,230,578.60
facilities, Not accreditation
Other note
（6）Liquidation of fixed assets
Nil
153
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
12. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under
1,087,923,869.63 356,062,655.95
construction
Engineering material 1,549,556.00 1,549,556.00
Total 1,089,473,425.63 357,612,211.95
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision Book value
devaluation for
devaluation
Sanbao To Shuikou Expansion
1,052,834,193.16 1,052,834,193.16 347,299,458.95 347,299,458.95
project
Xiebian To Sanbao Expansion
project
Xiebian To Sanbao Overhaul
project
Bridge deck pavement project of
1,382,928.49 1,382,928.49 155,000.00 155,000.00
hailong Bridge
Minzhong Service area
18,210,698.73 18,210,698.73
reconstruction project
Urban toll station project 5,008,642.53 5,008,642.53
Odd project 10,487,406.72 10,487,406.72 8,608,197.00 8,608,197.00
Total 1,087,923,869.63 1,087,923,869.63 356,062,655.95 356,062,655.95
154
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(2) Changes of significant construction in progress
In RMB
Including: Capitaliz Source
Capitaliz ation of of
Opening Transferred to Other Project capitalization of
Name of project Budget Increase End balance Proportion % ation of interest
balance fixed assets decrease process Interest this fundin
interest
period rate (%) g
Sanbao To Shuikou
3,426,206,700.00 347,299,458.95 705,534,734.21 1,052,834,193.16 43.74% 43.74% 44,224,352.01 38,289,580.04 4.25% Other
Expansion project
Xiebian To Sanbao
4,002,409,100.00 -8,837,172.44 -8,837,172.44 100.00% 100.00%
Expansion project
Xiebian To Sanbao
548,586,600.00 4,210.86 4,210.86 100.00% 100.00%
Overhaul project
Bridge deck
pavement project 42,927,400.00 155,000.00 1,227,928.49 1,382,928.49 3.22% 3.22% Other
of hailong Bridge
Minzhong Service
area reconstruction 35,500,000.00 18,210,698.73 18,210,698.73 51.30% 51.30% Other
project
Urban toll station
9,382,500.00 5,008,642.53 5,008,642.53 53.38% 53.38% Other
project
Odd project 8,608,197.00 12,574,948.53 10,695,738.81 10,487,406.72 Other
Total 8,065,012,300.00 356,062,655.95 733,723,990.91 1,862,777.23 1,087,923,869.63 -- -- 44,224,352.01 38,289,580.04 --
155
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(3)Provision for impairment of construction projects in the current period
Nil
（4）Engineering material
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Signpost 1,549,556.00 1,549,556.00 1,549,556.00 1,549,556.00
Total 1,549,556.00 1,549,556.00 1,549,556.00 1,549,556.00
Other note：
13. Intangible assets
(1) List of intangible assets
In RMB
Items Land use right Patent right Non-patent right Software Total
I. Original price
1.Opening balance 1,311,658.00 27,358,986.21 28,670,644.21
2.Increased amount of the period 1,260,147.36 1,260,147.36
(1) Purchase 1,260,147.36 1,260,147.36
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the period
（1）Disposal
4.Closing balance 1,311,658.00 28,619,133.57 29,930,791.57
II.Accumulated amortization
1.Opening balance 1,311,658.00 20,262,551.04 21,574,209.04
2.Increased amount of the period 2,617,562.05 2,617,562.05
(1) Withdrawal 2,617,562.05 2,617,562.05
3.Decreased amount of the period
（1）Disposal
4.Closing balance 1,311,658.00 22,880,113.09 24,191,771.09
III. Impairment provision
1.Opening balance
156
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Land use right Patent right Non-patent right Software Total
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 5,739,020.48 5,739,020.48
2.Opening book value 7,096,435.17 7,096,435.17
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
Nil
14. Long-term amortize expenses
In RMB
Balance in Increase in this Amortized
Items Other loss Balance in year-end
year-begin period expenses
Rental fee for Guangzhu
1,230,700.00 8,918.12 1,221,781.88
North Section sport ground
Advertising column
92,768.83 92,768.83
property insurance
Total 92,768.83 1,230,700.00 101,686.95 1,221,781.88
Other note
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Deductible loss 1,281,389,685.73 320,347,421.43 773,658,624.73 193,414,656.18
Amortization of
626,016.08 156,504.02 995,735.86 248,933.97
intangible assets
Asset valuation
507,924,437.36 126,981,109.34 566,541,740.54 141,635,435.13
appreciation
Total 1,789,940,139.17 447,485,034.79 1,341,196,101.13 335,299,025.28
157
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of available
352,882,416.00 88,220,604.00 435,221,646.40 108,805,411.60
for sale financial assets
Deductible temporary differences in
469,807,142.34 117,451,785.59 607,306,748.61 151,826,687.15
the formation of asset impairment
Total 822,689,558.34 205,672,389.59 1,042,528,395.01 260,632,098.75
（3）Details of unrecognized deferred tax assets
In RMB
Items Balance in year-end Balance Year-beginning
Deductible temporary differences 89,748,845.07 92,288,987.75
Deductible losses 8,796,952.44 11,374,068.41
Total 98,545,797.51 103,663,056.16
Note: Because it is uncertain that whether the wholly-owned subsidiary ---- Guangdong Expressway
Technology Investment Co., Ltd., Guangdong Expressway Capital Investment (Hengqin) Co., Ltd., Guangzhou
Guangzhu Traffic Investment Management Co., Ltd. can obtain taxable income in the future, the deductible
temporary differences of this part are not recognized as deferred tax assets.
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance Year-beginning Remark
2018 4,932,481.22
2019 3,456,570.30 3,456,570.30
2020
2021
2022 2,121,083.91 2,985,016.89
2023 3,219,298.23
Total 8,796,952.44 11,374,068.41 --
Other note：
16. Other Non-current assets
In RMB
Items Balance in year-end Balance Year-beginning
Prepaid fixed assets engineering fees 49,890,408.41 39,871,644.68
158
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Advance software payment 268,155.00
Prepaid business tax 518,773.08 566,594.58
Deductible import tax 49,385,484.09
Total 99,794,665.58 40,706,394.26
Other note：
17.Notes payable and account payable
In RMB
Items Balance in year-end Balance Year-beginning
Account payable 203,779,190.74 266,934,026.99
Total 203,779,190.74 266,934,026.99
（1）Classification of notes Payable
Nil
（2）Account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 84,200,629.90 104,264,020.37
1-2 years（including2 years） 8,911,247.40 135,095,312.76
2-3 years（including 3 years） 84,119,053.06 16,838,384.14
Over 3 years 26,548,260.38 10,736,309.72
Total 203,779,190.74 266,934,026.99
（3）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Heshan Land and resources Bureau 38,186,893.60 Unsettled
Foshan Land and resources Bureau 30,507,598.21 Unsettled
Guangdong Highway Construction Co.,
25,630,651.00 Unsettled
Ltd.
Guangdong Expressway Co., Ltd. 8,746,491.18 Unsettled
The third Research Institute of the
6,066,090.40 Unsettled
Ministryof Public Security
Dongguan Yongyao Photoelectricity
2,328,261.50 Unsettled
Technology Co., Ltd.
Luochun Street Office(Finance Office) 1,043,431.50 Unsettled
Total 112,509,417.39 --
159
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Other note：
18. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 516,610.46 2,413,914.18
1-2 years（Including 2 years） 459,858.97
2-3 years（Including 3 years） 419,601.44
Over 3 years 11,103,496.11 11,982,340.75
Total 12,039,708.01 14,856,113.90
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/Uncarry over reason
Guangzhou Huanlong Expressway Co.,
9,652,029.86 Land rent is not in the settlement period
Ltd.
Guanghdong Xinle Technology
1,322,993.29 The Rental is not in the settlement period
Development Co., Ltd.
Total 10,975,023.15 --
⑶The completion of the final construction contract has been completed and the project is not completed
Nil
19. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning balance Increase in the current Decrease in the current
Year-end balance
period period
I. Short-term compensation 11,334,182.16 312,445,957.81 310,657,702.80 13,122,437.17
II.Post-employment benefits - define
33,274,962.97 33,274,962.97
d contribution plans
III. Dismiss welfare 142,050.00 142,050.00
Total 11,334,182.16 345,862,970.78 344,074,715.77 13,122,437.17
（2）Short-term Remuneration
In RMB
Items Year-beginning balance Increase in the current Decrease in the current
Year-end balance
period period
1.Wages, bonuses, 1,630,363.29 232,214,558.56 233,216,358.36 628,563.49
160
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
allowances and subsidies
2.Employee welfare 21,683,497.37 21,683,497.37
3. Social insurance
18,198,699.81 18,198,699.81
premiums
Including ：Medical
13,916,477.21 13,916,477.21
insurance
Work injury insurance 537,037.33 537,037.33
Maternity insurance 1,419,032.27 1,419,032.27
Supplementary medical
2,326,153.00 2,326,153.00
insurance
4.Public reserves for
27,595,125.52 27,595,125.52
housing
5.Union funds and staff
9,563,059.92 10,124,509.86 7,869,701.04 11,817,868.74
education fee
8.Other 140,758.95 2,629,566.69 2,094,320.70 676,004.94
Total 11,334,182.16 312,445,957.81 310,657,702.80 13,122,437.17
（3）List of drawing scheme
In RMB
Items Balance Year-beginning Increase in this period Payable in this period Balance in year-end
1. Basic old-age
22,193,513.59 22,193,513.59
insurance premiums
2.Unemployment
844,560.24 844,560.24
insurance
3.Enterprise annuity
10,236,889.14 10,236,889.14
payment
Total 33,274,962.97 33,274,962.97
Other note：
20. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 13,473,944.70 14,248,594.77
Enterprise Income tax 85,375,209.49 404,574,001.58
Individual Income tax 3,551,727.77 6,572,617.38
City Construction tax 793,960.96 1,022,178.29
Land use tax 200,454.00 1,050,431.75
Property tax 155,413.34 253,014.94
Education subjoin 371,885.57 466,899.60
Locality Education subjoin 233,892.04 297,234.60
Stamp tax 26,304.47 63,071.56
Other 15,953.72 99,349.82
Total 104,198,746.06 428,647,394.29
161
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Other note：
21.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Interest payable 8,971,576.57 8,494,355.93
Dividend payable 17,191,142.23 26,840,792.20
Other account payable 165,091,746.04 86,663,237.94
Total 191,254,464.84 121,998,386.07
（1）Interest payable
In RMB
Items Balance in year-end Balance Year-beginning
Pay the interest for long-term loans by
7,832,311.57 8,494,355.93
installments.
Interest payable on entrusted loans 1,139,265.00
Total 8,971,576.57 8,494,355.93
- Particulars of significant overdue unpaid interest
Nil
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 17,191,142.23 14,340,792.20
Xinyue Highway Construction Co., Ltd. 12,500,000.00
Total 17,191,142.23 26,840,792.20
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 14,338,121.94yuan for more than a year in unpaid dividends to shareholders over the year
was mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, di
d not share reform of shareholders to receive dividends or provide application to receive dividends the bank infor
mation is incorrect, resulting in failure to pay a dividend or refund.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Quality guarantee fund 67,696,625.43 36,254,269.95
Deposit 1,876,467.00 1,676,667.00
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Items Year-end balance Year-Beginning balance
Other 50,518,653.61 48,732,300.99
Borrowing 45,000,000.00
Total 165,091,746.04 86,663,237.94
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Project Quality guarantees/ Bid
Guangdong Changda Engineering Co., Ltd 2,494,464.08
Gruarantees/Deposit
Guangdong Nengda Grade Highway Project Quality Guarantees,Project
2,181,568.50
Maintenance Co., Ltd. performance fund
Guangdong Guanyue luqiao Co., Ltd. 1,897,611.12 Project Quality guarantees, Deposit
China Railway 18 Bureau Group Co., Ltd. 1,759,428.85 Project Quality guarantees
Dongguan Yueyu Optoelectronic
1,534,850.00 Project Quality guarantees
Technology Co., Ltd.
Guangdong Xinyue Traffic Investment
1,505,467.30 Project Quality guarantees
Co., Ltd.
Total 11,373,389.85 --
Other note
22. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 2,498,480,000.00 1,218,610,000.00
Total 2,498,480,000.00 1,218,610,000.00
Other note：
23. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 251,050,000.00 199,000,000.00
Guaranteed loan 375,000,000.00 1,125,000,000.00
Credit loan 2,356,990,000.00 3,420,170,000.00
Other 2,983,040,000.00 4,744,170,000.00
Other notes including interest rate range：
The interest rate of pledge loan is 4.275% - 4.75%, the guaranteed loan rate is 5.6%, and the credit loan rate is 4.20% - 4.90%.
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24. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 38,022,210.11 2,022,210.11
Total 38,022,210.11 2,022,210.11
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2,022,210.11 2,022,210.11
Guangdong Jiangzhong Expressway Co.,
36,000,000.00
Ltd. Entrusted loan
Other note：
（2）Special payable
Nil
25. Stock capital
In RMB
Balance Year-beginning
Balance
Issuing of new Transferred Balance year-end
Year-beginning Bonus shares Other Subtotal
share from reserves
Total of
capital 2,090,806,126.00 2,090,806,126.00
shares
Other note：
26. Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 2,508,408,342.99 2,508,408,342.99
Other capital reserves 1,661,406.77 26,705,215.55 28,366,622.32
Total 2,510,069,749.76 26,705,215.55 2,536,774,965.31
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 26,710,620.00 yuan due to the change of the owner's equity of the
joint-stock company --- Guangdong Guanghui Expressway Co., Ltd. and was decreased 5,404.45 yuan due to the
change of owner's equity of the joint-stock company ---- Guoyuan securities Co., Ltd.
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
27. Other comprehensive income
In RMB
Amount of current period
Less：
Previously recog
Year-beginning Amount for the nized in profit or After - tax at Year-end
Items After - tax attrib
balance Less：Income tributable to balance
period before in loss in other co utable to the par
tax minority sha
come tax mprehensive inc ent company
reholders
ome
1.Other comprehensive
income will be
reclassified into income or 0.00
loss in the future
Including: remeasurement
of net assets or net
liabilities of defined 0.00
benefit plans
Share of other
comprehensive income of
the investee that cannot be
transferred to profit or 0.00
loss accounted for using
the equity method
2.Other comprehensive
income reclassifiable to
profit or loss in 327,263,824.17 -102,739,516.96 -20,584,807.60 -82,154,709.36 245,109,114.81
subsequent periods
Including：Share of other
comprehensive
income of the
investee that cannot
be transferred to 847,589.37 -20,400,286.56 -20,400,286.56 -19,552,697.19
profit or loss
accounted for using
the equity method
Gains and losses from
changes in fair value of
financial assets available 326,416,234.80 -82,339,230.40 -20,584,807.60 -61,754,422.80 264,661,812.00
for sale
Held-to-maturity
investment that is
reclassified as financial 0.00
assets available for sale
Effective gains(losses)
arising from cash flow 0.00
hedging instruments
Translation
0.00
differences of
165
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
financial statements
denominated
Total of other
comprehensive income 327,263,824.17 -102,739,516.96 -20,584,807.60 -82,154,709.36 0.00 245,109,114.81
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
hedging gains and losses transfer into arbitraged items:
The initial balance and the ending balance refer to other comprehensive incomes in the balance sheet. The initial
balance + other comprehensive incomes belong to the parent company after taxes = the ending balance. The
occurrence amount in the period refers to other comprehensive incomes in the profit statement, and the occurrence
amount before income tax in the period – Other comprehensive income recorded in the earlier stage and
transferred into the profits and losses in the current period – income taxes = other comprehensive incomes
belong to the parent company after taxes + other comprehensive incomes belong to the minority shareholders after
taxes.
28. Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus
544,821,130.03 230,581,431.32 775,402,561.35
reserve
Total 544,821,130.03 230,581,431.32 775,402,561.35
Note：
29. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last period
3,550,110,288.49 2,920,563,328.27
end
After adjustments: Retained profits at the period
3,550,110,288.49 2,920,563,328.27
beginning
Add：Net profit belonging to the owner of the
1,677,028,179.18 1,509,922,398.70
parent company
Less: Statutory surplus reserve 230,581,431.32 177,864,580.14
Common stock dividend payable 1,057,947,899.76 702,510,858.34
Retained profit at the end of this term 3,938,609,136.59 3,550,110,288.49
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
166
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
30.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 3,174,342,835.65 1,250,876,481.00 3,038,375,611.56 1,220,538,502.82
Other operation 44,351,248.29 28,218,590.32 50,679,787.65 26,583,850.53
Total 3,218,694,083.94 1,279,095,071.32 3,089,055,399.21 1,247,122,353.35
31. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 6,257,072.93 6,251,001.50
Education surcharge 2,943,233.19 2,910,849.26
Property tax 2,510,760.22 2,078,526.94
Land use tax 1,744,091.50 1,824,262.72
Business tax 62,845.97 52,777.05
Locality Education surcharge 1,961,948.53 1,940,251.33
Defend expense 207.08 384.04
Stamp tax 370,956.91 644,841.06
Vehicle use tax 62,306.65 136,920.13
Cultural construction expenses 53,046.83 160,387.42
Other 20,796.58
Total 15,987,266.39 16,000,201.45
Other note：
32. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 124,523,644.86 122,014,401.26
Depreciation and Amortization 10,846,662.10 13,686,060.04
Low consumables amortization 669,751.05 858,414.10
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Travel expenses 951,373.50 699,038.04
Office expenses 7,113,887.43 6,768,155.85
Leased expenses 11,350,401.58 10,987,865.79
The fee for hiring agency 3,700,667.16 3,938,990.41
Consultation expenses 4,243,970.38 3,359,297.28
Listing fee 903,551.56 558,490.56
Information cost and maintenance fee 1,254,978.71 2,039,350.41
Other 17,833,260.35 14,901,645.85
Total 183,392,148.68 179,811,709.59
Other note：
33. R & D cost
In RMB
Items Amount of this period Amount of last period
Labor cost 1,236,840.49 5,810,338.41
Direct input fee 1,610,228.69
Depreciation expenses 26,107.33 64,922.48
Commissioned research & development 349,207.54
Other 55,396.19 1,939,169.26
Total 1,318,344.01 9,773,866.38
Other note：
34.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 237,334,325.27 276,594,308.94
Deposit interest income（-） -31,889,543.71 -33,696,479.00
Exchange Income and loss（Gain-） 2,348,188.17 -1,522,372.61
Bank commission charge 4,799,814.01 5,931,293.75
Total 212,592,783.74 247,306,751.08
Other note：
35. Asset impairment loss
In RMB
Items Amount of this period Amount of last period
I. Bad debt loss -1,232,955.42 415,340.17
III. Impairment losses on financial
226,800.00
assets available for sale
Total -1,006,155.42 415,340.17
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Other note：
36.Other gains
In RMB
Items Amount of this period Amount of last period
Maternity allowance 599,573.55
Return of personal tax handing fee 295,702.41
Stable job subsidies 217,952.36
Total 1,113,228.32
37. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
463,873,066.20 423,940,445.45
method
Hold the investment income during from
43,786,617.76 24,327,921.74
available-for-sale financial assets
Total 507,659,683.96 448,268,367.19
Other note：
38.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Income from disposal of fixed assets 66,431,966.75
39. Non-Operation income
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Government Subsidy 385,932.17
Road property claim income 1,646,322.85 3,539,319.69 1,646,322.85
Other income(Notes) 2,529,479.09 61,854,564.85 2,529,479.09
Total 4,175,801.94 65,779,816.71 4,175,801.94
- Government subsidy reckoned into current gains/losses
In RMB
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Whether the impact of Whether Amount of
Issuing Issuing Amount of current Assets-related/inco
Subsidy items Nature subsidies on the special previous
body reason period me –related
current profit and loss subsidies period
Research on "Blue
Channel" Project
based on "Internet
120,000.00 Related to income
Plus" Recognition
and Payment
Technology
Stable job subsidies 265,932.17 Related to income
Other note：
40. Non-Operation expense
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & losses
Loss of destruction of assets 3,368,846.52 2,926,481.49 3,368,846.52
Fine 382,973.69 465,323.21 382,973.69
Other 5,228,178.28 3,289,687.56 5,228,178.28
Total 8,979,998.49 6,681,492.26 8,979,998.49
Other note：
41. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 340,935,816.06 636,893,843.60
Deferred income tax expense -146,560,911.07 -451,125,662.19
Total 194,374,904.99 185,768,181.41
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total profits 2,097,715,307.70
Current income tax expense accounted by tax and relevant
524,428,826.62
regulations
Influence of income tax before adjustment -3,267,087.41
Influence of non taxable income -372,925,462.18
Impact of non-deductible costs, expenses and losses 6,621,587.60
Affect the use of deferred tax assets early unconfirmed -394,522.89
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
deductible losses
The current period does not affect the deferred tax assets
804,824.56
recognized deductible temporary differences or deductible loss
Other 39,106,738.69
Income tax expense 194,374,904.99
Other note
42. Items of Cash flow statement
(1) Other cash received from business operation
Items Amount of current period Amount of previous period
Newwork received toll income 1,058,049.17 7,830,682.35
Interest income 31,889,543.71 33,696,479.00
Unit current account 63,672,701.77 59,072,397.31
Total 96,620,294.65 100,599,558.66
In RMB
Note：
（2）Other cash paid related to operating activities
Items Amount of current period Amount of previous period
Management expense 45,920,848.02 48,176,229.85
Unit current account 28,708,531.18 45,078,758.91
Network received toll income 276,547.72 1,432,404.59
Total 74,905,926.92 94,687,393.35
In RMB
Note：
（3）Other Cash received related to investment activities
In RMB
Items Amount of current period Amount of previous period
Jiujiang bridge to receive compensation 59,995,667.68
Total 0.00 59,995,667.68
Note：
（4）Other Cash received related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Interest discount 10,277,777.78
Total 0.00 10,277,777.78
Note：
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
43. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 1,903,340,402.71 1,710,223,687.42
Add: Impairment loss provision of assets -1,006,155.42 415,340.17
Depreciation of fixed assets, oil and gas
807,609,480.04 823,038,155.84
assets and consumable biological assets
Amortization of intangible assets 2,526,983.05 3,128,134.31
Amortization of Long-term deferred
101,686.95 1,671,197.24
expenses
Loss on disposal of fixed assets, intangible
-66,431,966.75
assets and other long-term deferred assets
Fixed assets scrap loss 3,258,828.50 2,745,683.68
Financial cost 249,543,624.55 275,071,936.33
Loss on investment -507,659,683.96 -448,268,367.19
Decrease of deferred income tax assets -112,186,009.51 -324,488,702.34
Increased of deferred income tax liabilities -34,374,901.56 -17,831,548.25
Decrease of inventories -81,017.91 323,888.89
Decease of operating receivables 245,477,300.99 -44,132,575.54
Increased of operating Payable -574,132,993.64 213,093,094.79
Net cash flows arising from operating
1,915,985,578.04 2,194,989,925.35
activities
II. Significant investment and financing
-- --
activities that without cash flows:
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 2,123,303,796.32 2,363,042,700.42
Less: Beginning balance of cash equivalents 2,363,042,700.42 2,603,279,644.25
Net increase of cash and cash equivalents -239,738,904.10 -240,236,943.83
(2) Net Cash paid of obtaining the subsidiary
Nil
(3) Net Cash receive of disposal of the subsidiary
Nil
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
I. Cash 2,123,303,796.32 2,363,042,700.42
Of which: Cash in stock 53,211.49 66,065.04
Bank savings could be used at any time 2,122,585,810.07 2,362,279,050.70
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Other monetary capital could be used at any
664,774.76 697,584.68
time
III. Balance of cash and cash equivalents at
2,123,303,796.32 2,363,042,700.42
the period end
Other note：
44. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the period Restricted reason
Land reclamation funds in fund escrow
Monetary fund 1,221,200.00
accounts
Total 1,221,200.00 --
Other note：
Up to December 31, 2018, Jingzhu Expressway Guangzhu Section Co., Ltd., the controlling grandchildren
company of the Company, with the toll collection right of Panyu Tangkeng-Zhuhai Jinding section project in
Jingzhu expressway, asked for 449,000,000.00 yuan of loan from Guangzhou Wuyang Branch of ICBC to provide
pledge guarantee(of which the non-current debt balance with 1-year expiration was 100,000,000.00 yuan, In
addition, a pledge guarantee was provided to the Industrial and Commercial Bank of China Guangzhou Wuyang
Sub-branch for a loan of 729,000,000.00 yuan by the collateral of the 18.5% right of charge of the Beijing-Zhuhai
Expressway Guangzhu Section Project (the balance of non-current liabilities due within one year was
71,300,000.00 yuan and the long-term loan balance was 251,050,000.00 yuan).
45. Foreign currency monetary items
(1) Foreign currency monetary items
Nil
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□ Applicable √ Not applicable
VIII.Changes of consolidation scope
1.Enterprise consolidation not under the same control
Nil
2. Enterprise consolidation not under the same control
Nil
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
3. Counter purchase
Nil
4. The disposal of subsidiary
Nil
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information
In August 2018, Guangdong Fokai Expressway Co., Ltd. completed the industrial and commercial
cancellation, and obtained the “Notice of Approval for Cancellation Registration” and the “Notice of Permit for
Cancellation Registration”. From August 2018, Guangdong Fokai Expressway Co., Ltd. was no longer included in
the scope of consolidated statements.
6.Other
Nil
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding Ratio
Main Places of Registratio
Name of Subsidiary Nature of Business (%) Obtaining Method
Operation n Place
direct indirect
Under the same
Expressway
Guangfo Expressway Co., Ltd. Guangzhou Guangzhou 75.00% control business
Management
combination
Investment in
Guangdong Expressway Technology technical industries
Guangzhou Guangzhou 100.00% Investment
Investment Co., Ltd. and provision of
relevant
Guangzhuo Guangzhu Traffic Under the same
Investment Management Co., Ltd. Investment
Guangzhou Guangzhou 100.00% control business
management
combination
Under the same
Jingzhu Expressway Guangzhu Expressway
Zhongshan Guangzhou 20.00% 55.00% control business
Section Co.,Ltd.（Notes） Management
combination
Yuegao Capital Investment
Guangzhou Zhuhai 100.00% Investment
Investment(Hengqin)Co., Ltd. management
Notes: holding proportion in subsidiary different from voting proportion:Nil
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:Nil
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Significant structure entities and controlling basis in the scope of combination:Nil
Basis of determine whether the Company is the agent or the principal: Nil
Other notes：
Jingzhu Expressway Guangzhu Section Co., Ltd. is a non-wholly owned subsidiary of Guangzhou Guangzhu
Traffic Investment Management Co., Ltd.
(2) Important Non-wholly-owned Subsidiary
In RMB
Profit or Loss Owned by Dividends Distributed to
Shareholding Equity Balance of the
the Minority the Minority
Name of Subsidiary Ratio of Minority Minority Shareholders in
Shareholders in the Shareholders in the
Shareholders (%) the End of the Period
Current Period Current Period
Guangfo Expressway Co., Ltd. 25.00% 66,239,599.34 53,528,891.62 140,004,307.04
Jingzhu Expressway Guangzhu
25.00% 160,072,624.19 144,223,171.04 319,595,416.83
Section Co.,Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion
Nil
Other note:Nil
175
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Name Non- current Current Non- current Total Non- current Current Non- current Total
Current assets Total assets Current assets Total assets
assets Liabilities liabilities liabilities assets Liabilities liabilities liabilities
Guangfo Expressway 544,211,527.0 565,665,919.6
590,663,709.13 27,675,485.80 618,339,194.93 58,321,966.77 58,321,966.77 21,454,392.65 56,491,522.41 56,491,522.41
Co., Ltd. 4 9
Jingzhu Expressway
2,301,876,076. 2,734,157,149. 419,370,011.8 1,036,405,470. 1,455,775,482 168,092,185.2 2,692,035,039 2,860,127,224 526,412,997.5 1,118,730,372. 1,645,143,369
Guangzhu Section 432,281,073.29
48 77 5 57 .42 5 .19 .44 5 13 .68
Co.,Ltd.
In RMB
Amount of current period Amount of previous period
Name Total Total
Cash flows from Cash flows from
Business income Net profit Comprehensive Business income Net profit Comprehensive
operating activities operating activities
income income
Guangfo Expressway Co., Ltd. 478,698,151.01 264,958,397.35 264,958,397.35 269,630,338.75 439,509,806.68 218,485,271.91 218,485,271.91 269,140,164.40
Jingzhu Expressway Guangzhu
1,340,650,149.26 640,290,496.74 640,290,496.74 890,454,604.43 1,318,255,057.77 582,719,882.98 582,719,882.98 950,191,703.45
Section Co.,Ltd.
Other note:Nil
176
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Nil
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Nil
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
（1）Description of changes in share of owners' equity in subsidiaries
Nil
（2）The influence of transaction on minority shareholders' equity and ownership of parent company
Nil
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting treatment of the
Main operating
Name Registration place Business nature investment of joint venture or
place Directly Indirectly associated enterprise
Guangdong Guanghui Guangzhou, Guangzhou, Expressway
30.00% Equity method
Expressway Co., Ltd. Guangdong Guangdong Management
Zhaoqing Yuezhao Zhaoqing, Zhaoqing, Expressway
25.00% Equity method
Highway Co., Ltd. Guangdong Guangdong Management
Shenzhen Huiyan Shenzhen Shenzhen Expressway
33.33% Equity method
Expressway Co., Ltd. Guangdong Guangdong Management
Guangdong Jiangzhong Zhongshan , Guangzhou,Guan Expressway
15.00% Equity method
Expressway Co., Ltd. Guangdong gdong Management
Ganzhou kangda Gangzhou, Gangzhou, Expressway
30.00% Equity method
Expressway Co., Ltd. Jiangxi Jiangxi Management
Ganzhou Gankang Gangzhou, Gangzhou, Expressway
30.00% Equity method
Expressway Co., Ltd. Jiangxi Jiangxi Management
Guangdong Yueke
Guangzhou, Guangzhou, Hande all kinds
Technology Petty Loan 20.00% Equity method
Guangdong Guangdong of small loans
Co., Ltd.
Guangyuan Securities
Hefei, Anhui Hefei, Anhui Security business 2.37% Equity method
Co., Ltd.
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Nil
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Guangdong, Jiangzhong Expressway Co., Ltd and Guangyuan Securities Co.,
Ltd... holds 20% of the voting rights, but has the power to participate in making decisions on their financial and op
erating decisions, and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
In RMB
177
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdong Guanghui Zhaoqing Yuezhao Guangdong Guanghui Zhaoqing Yuezhao
Expressway Co., Ltd. Highway Co., Ltd. Expressway Co., Ltd. Highway Co., Ltd.
Current assets 886,631,849.70 196,254,075.84 635,522,495.58 181,912,624.81
Including：Cash and cash
621,540,000.54 180,784,827.23 459,088,314.91 168,071,076.84
equivalent
Non-current assets 3,813,612,927.86 1,565,557,770.89 4,004,796,494.08 1,680,394,842.72
Total assets 4,700,244,777.56 1,761,811,846.73 4,640,318,989.66 1,862,307,467.53
Current liabilities 544,082,765.04 151,065,956.20 412,938,473.00 176,531,063.96
Non-current liabilities 847,757,933.94 382,056,538.13 1,061,024,403.48 518,151,934.87
Total liabilities 1,391,840,698.98 533,122,494.33 1,473,962,876.48 694,682,998.83
Attributable to
shareholders of the 3,308,404,078.58 1,228,689,352.40 3,166,356,113.18 1,167,624,468.70
parent company
Share of net assets
992,521,223.58 307,172,338.10 949,906,833.96 291,906,117.18
calculated by stake
Book value of equity
investment in joint 992,521,223.58 307,172,338.10 949,906,833.96 291,906,117.18
ventures
Operating income 1,855,658,219.29 555,636,181.75 1,844,690,103.83 511,470,748.89
Financial expenses 33,863,147.93 21,465,696.78 41,164,514.80 27,476,635.96
Income tax expenses 323,116,545.35 79,594,368.12 313,823,801.69 66,259,297.93
Net profit 969,032,056.06 233,420,321.62 940,021,656.29 194,923,285.58
Total comprehensive
969,032,056.06 233,420,321.62 940,021,656.29 194,923,285.58
income
Dividends received from
274,805,847.20 43,088,859.48 297,106,373.29 55,172,678.59
joint ventures this year
Other note
178
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdong Guangdong
Shenzhen Guangdong Ganzhou Shenzhen Guangdong Ganzhou
Ganzhou Yueke Guoyuan Ganzhou Yueke Guoyuan
Huiyan Jiangzhong Gankang Huiyan Jiangzhong Gankang
Kangda Technology Securities Co., Kangda Technology Securities Co.,
Expressway Expressway Expressway Expressway Expressway Expressway
Expressway Petty Loan Ltd. Expressway Petty Loan Ltd.
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd Co., Ltd
153,631,998.0 270,093,954.2 1,394,967,072 42,721,180,653. 430,404,563.5 147,279,650.9 208,757,705.5 1,573,602,864 45,296,573,799.
Current assets 86,313,236.14 35,495,996.32 21,995,366.33
0 7 .45 50 0 8 5 .36 43
569,633,252.7 1,701,322,494 1,463,543,288 1,372,121,014 35,374,232,070. 190,289,654.6 1,697,555,010 1,509,053,324 1,434,291,913 34,917,940,371.
Non-current assets 8,047,674.82 40,112,141.62
1 .90 .08 .40 51 6 .40 .26 .76 90
723,265,250.7 1,787,635,731 1,499,039,284 1,642,214,968 1,403,014,747 78,095,412,724. 620,694,218.1 1,844,834,661 1,531,048,690 1,643,049,619 1,613,715,005 80,214,514,171.
Total assets
1 .04 .40 .67 .27 01 6 .38 .59 .31 .98 33
170,304,772.6 109,921,418.2 46,417,460,063. 129,152,634.0 100,119,184.6 114,676,781.5 236,708,624.0 36,083,651,550.
Current liabilities 31,603,980.10 72,629,731.89 40,797,858.70 32,102,623.52
7 6 63 1 0 3 1 94
448,500,000.0 693,126,157.4 832,307,181.3 6,989,817,868.7 559,000,000.0 735,033,096.4 847,023,826.6 18,738,432,070.
Non-current Liabilities 636,518.58 2,006,250.00
0 4 9 7 0 7 3 64
618,804,772.6 765,755,889.3 942,228,599.6 53,407,277,932. 688,152,634.0 835,152,281.0 961,700,608.1 238,714,874.0 54,822,083,621.
Total liabilities 31,603,980.10 41,434,377.28 32,102,623.52
7 3 5 40 1 7 6 1 58
Minority Shareholders’ 263,112,578.6 297,258,467.4
11,368,910.62 12,064,185.84
Equity 3 5
Shareholders’ equity
attributable to 691,661,270.6 1,168,830,958 733,283,395.0 699,986,369.0 1,098,467,791 24,676,765,880. 588,591,594.6 1,156,682,027 695,896,409.5 681,349,011.1 1,077,741,664 25,380,366,363.
shareholders of the 1 .37 7 2 .36 99 4 .37 2 5 .52 91
parent
Pro rata share of the net 230,553,756.8 175,324,643.7 219,985,018.5 209,995,910.7 219,693,558.2 196,197,198.2 173,502,304.1 208,768,922.8 204,404,703.3 215,548,332.9
583,672,702.24 600,314,769.41
assets calculated 7 6 2 1 7 1 1 6 5 0
--Goodwill 206,725,818.02 206,725,818.02
179
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
The book value of equit
230,553,756.8 175,324,643.7 219,985,018.5 209,995,910.7 219,693,558.2 196,197,198.2 173,502,304.1 208,768,922.8 204,404,703.3 215,548,332.9
y investments in joint ve 790,398,520.26 807,040,587.43
7 6 2 1 7 1 1 6 5 0
ntures
Fair value of equity
investment of associated
555,621,862.28 875,621,846.00
enterprises with open
quotation
246,387,205.4 511,026,031.4 244,708,403.6 169,762,652.7 181,963,049.2 2,569,814,200.0 233,738,236.9 487,119,486.4 245,700,515.4 152,521,263.8 177,208,471.5 3,502,796,791.7
Buinsess incme
4 2 0 9 0 0 5 2 3 7 6 7
103,069,675.9 107,386,985.5 101,285,140.5 1,223,834,271.4
Net profit 78,708,231.50 18,637,357.87 75,671,754.19 663,937,167.17 73,587,145.53 83,900,834.10 13,325,048.18 65,212,691.74
7 5 7 8
Other comprehensive
-862,492,101.21 -172,970,719.38
income
Total comprehensive 103,069,675.9 107,386,985.5 101,285,140.5 1,050,863,552.1
78,708,231.50 18,637,357.87 75,671,754.19 -198,554,934.04 73,587,145.53 83,900,834.10 13,325,048.18 65,212,691.74
income 7 5 7 0
Dividends received fro
110,000,000.0
m associates during the 53,000,000.00 9,983,895.07 21,000,000.00 10,989,125.47 11,940,297.90 11,041,691.10 21,000,000.00 9,600,000.00 6,058,788.22
0
year
Other note
Nil
180
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(4) Summary financial information of insignificant joint venture or associated enterprise
Nil
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
Nil
（6）The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
Nil
(8) Contingent liabilities related to joint venture or associated enterprise investment
Nil
4. Significant common operation
Nil
5. Equity of structure entity not including in the scope of consolidated financial statements
Notes：
Nil
6.Other
Nil
X. Risks Related to Financial Instruments
The major financial instruments of the company include monetary capital, notes receivable and accounts payable.
These financial instruments are primarily related to operating and financing. For the details of the financial
instruments, please refer to the related projects in Notes 5. The risk relevant to these financial instruments and the
risk management policy adopted by the company for reducing these risks are described as below:
1. Credit Risk
The credit risk means that the party of the financial instrument fails to perform the obligations, and the risk of the
financial loss is caused for the other party. The company is mainly facing the customer credit risk due to the credit
sale. In order to reduce the credit risk, the company only makes transactions with the recognized and reputable
customers, and carries out the continuous monitoring of accounts receivable through monitoring the credit of the
existing customers and the aging analysis, in order to ensure the company not facing the risk of bad debts and
control the overall credit risk within the controllable range.
2. Interest Rate Risk
The interest rate risk refers to the fluctuation risk appearing for the fair value of financial instruments or future
cash flows due to the changes in market interest rate. The interest rate risk faced by the company is mainly from
the bank borrowings. Through the establishment of good relations between banks and enterprises, the company
181
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
makes the reasonable design of credit range, credit variety and credit limit to guarantee the sufficient credit range
of the banks and meet the financing demands. Shortening the duration of single borrowings and especially stating
the prepayment terms is to reasonably reduce the risk of the interest rate fluctuations.
3. Foreign Exchange Risk
The foreign exchange risk refers to the fluctuation risk appearing for the fair value of financial instruments or
future cash flows due to the changes in foreign exchange rate. The company matches the income and expenditure
of foreign currency as far as possible in order to reduce the foreign exchange risk. During the reporting period, the
company has little effect on the foreign exchange risk due to the short credit term of revenue and expenditure
related to the foreign currency.
4. Liquidity Risk
The liquidity risk means that the risk of the shortage of funds occurs when the settlement obligations by the
delivery of the cash or other financial assets are fulfilled by the company. The policy of the company is to ensure
the sufficient cash for repaying the matured debts. The liquidity risk is under the centralized control of Finance
department of the company, and Finance department shall guarantee the company having the sufficient funds to
repay the debts under any reasonable forecast through monitoring the cash balance, the marketable securities
available to be cash and the rolling forecast for the cash flow of the next six months.
5. Other Price Risk
The company holds the equity investment of other listed companies, and the management believes that these
investments facing the market price risk is acceptable. For the equity investment of other listed companies held by
the company, please refer to “ Available-for-Sale Financial Assets in Article 8 of Consolidated Financial
Statement in Notes 5 of Financial Statements”.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fir value measurement Fir value measurement Fir value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
（II）Available-for-sale
870,443,292.80 870,443,292.80
Financial Assets
（2）Equity instrument
870,443,292.80 870,443,292.80
investment
Total of Consistent fair
870,443,292.80 870,443,292.80
value measurement
II.Non-continuous
-- -- -- --
measurement fair value
182
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of December 31, 2018 of 3.70 yuan, the final calculation of fair value was
870,443,292.80 yuan.
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2.
Nil
4. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3.
Nil
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3.
Nil
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
Nil
7. Changes in the valuation technique in the current period and the reason for change
Nil
8. Fair value of financial assets and liabilities not measured at fair value
Nil
9.Other
Nil
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent company The parent company
Name Registered address Nature Redistricted capital of the Company's of the Company’s
shareholding ratio vote ratio
Equity management,
No.83,85, Baiyun
Guangdong traffic infrastructure
Road, Yuexiu
communication construction and 26.8 billion 24.55% 50.12%
District,
Group Co., Ltd railway project
Guangzhou
operation
Notes ：
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Deng
183
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Xiaohua. Date of establishment: June 23, 2000. As of December 31, 2018,Registered capital: 26.8 billion yuan. It
is a solely state-owned limited company. Business scope：equity management, organization of asset reorganization
and optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stock
system transformation, project investment, operation and management, traffic infrastructure construction, highway
and railway project operation and relevant industries, technological development, application, consultation and
services, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; The
value-added communication business.
The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.
Other notes：
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see NoteXI(9) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Nil
4. Other Related parties
Name Relation with the Company
Guangdong Baomao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Chaohui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co., Ltd.
Guangdong Two Guang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Gaoda Property Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangfozhao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guanghui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangle Expressway Co., ltd. Fully owned subsidiary of the parent company
Guangdong Hehui Expressway Co., ltd. Fully owned subsidiary of the parent company
Guangdong Humen Bridge Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu Traffic Technology Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic and Technology Testing Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Industry Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Real Estate Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Co., ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
184
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Name Relation with the Company
Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Meihe Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Ninghua Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Pingxing Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shenshan Expressway East Section Co.,Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Road & Bridge Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Taishan Coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yuedong Expressway Industry Development
Fully owned subsidiary of the parent company
Co.,Ltd.
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangshenzhu Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co., Ltd. Fully owned subsidiary of the parent company
Heyuan Helong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company
Zhongshan Yueyun Airoort Express Passenger Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Investformation Technology Investment Fully owned subsidiary of the parent company, Has been
Co., Ltd. cancelled
Fully owned subsidiary of the parent company, Has been
Guangdong West Coastal Expressway Xinhui Section Co., Ltd
cancelled
Fully owned subsidiary of the parent company, Has been
Guangdong West Coastal Expressway Co., Ltd
cancelled
Fully owned subsidiary of the parent company, Has been
Guangdong West Coastal Expressway Zhuhai Section Co., Ltd
cancelled
Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company
Guangdong Jiangzhao Expressway Management Center Managed by the parent company
Guangdong Nanyue Traffic Chaozhang Expressway
Managed by the parent company
Management Center
Guangdong Nanyue Traffic Renbo Expressway Management
Managed by the parent company
Center
Guangdong Nanyue Traffic Shaogan Expressway Management
Managed by the parent company
Center
Guangdong Nanyue Traffic Yunzhan Expressway Management
Managed by the parent company
Center
Guangzhongjiang Expressway Project Management Managed by the parent company
Controlled by the same parent company and equity participation
Guangdong Changda Highway Engineering Co., Ltd.
unit
185
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Name Relation with the Company
Xinyue Highway Construction Co., Ltd. Minority shareholders of the holding Sun-Subsidiarie
Controlled by the same parent company and equity participation
Guangdong Guangzhu West Line Expressway Co., Ltd.
unit
Guangdong Jingzhu Expressway Guangzhu North Section Co., Controlled by the same parent company and equity participation
Ltd. unit
Other note
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Content of Amount of current Amount of
Over the trading Amount of
Related parties related period previous period
limit or not? last period
transaction
Guangdong Changda highway Co., Ltd. Project fund 29,662,147.00 24,378,346.43
Guangdong Union electronic services co.,
Project fund 15,478,247.27
Ltd.
Guangdong Hualu Traffic Technology Co.,
Project fund 6,084,009.00 7,535,263.53
Ltd.
Guangdong Traffic Technology Testing
Project fund 5,380,171.92
Co.,Ltd.
Guangdong Litong Technology Investment
Project fund 3,517,587.00 1,431,442.00
Co., Ltd.
Guangdong Lulutong Co., Ltd. Project fund 1,985,356.36
Project
Guangdong Humen Bridge Co., Ltd. 1,470,696.80 174,000.00
fund,service
Guangdong Xinyue traffic Investment Co.,
Project fund 770,454.00 9,500.00
Ltd.
Guangdong Tongyi Expressway Service Area
Service 747,966.07 820,276.93
Co., Ltd
Guangdong East Thinking Management
Project fund 369,650.00
Technology Development Co., Ltd.
Guangdong Expressway Co., Ltd. Project fund 144,221.17
Guangdong Guanghai Expressway Co., Ltd. Interest 3,231,506.25
Ganzhou Gankang Expressway Co., Ltd. Interest 765,623.34 1,051,109.99
Guangdong Jiangzhong Expressway Co., Ltd. Interest 187,920.00
Guangdong Expressway Media Co., Ltd. Service 606,132.08
Guangdong East Thinking Management
Service 404,091.29 470,705.00
Technology Development Co., Ltd.
Guangdong Changda Highway Engineering
Project fund 1,152,297.42
Co., Ltd.
Guangdong Litong Technology Investment Project fund 39,000.00
186
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Content of Amount of current Amount of
Over the trading Amount of
Related parties related period previous period
limit or not? last period
transaction
Co., ltd.
Guangdong Litong Technology Investment Purchasing
427,500.00 323,000.00
Co., ltd. assets
Purchasing
Guangdong Lulutong Co., Ltd. 56,680.00
assets
Guangdong Xinyue Traffic Investment Co., Purchasing
219,756.38
Ltd. assets
Guangdong Hualu Traffic Technology Co., Purchasing
45,913.29
Ltd. assets
Guangdong East Thinking Management Purchasing
297,950.00 614,275.80
Technology Development Co., Ltd. assets
Guangdong Litong Information Technology Purchasing
185,000.00 950,000.00
Investment Co., Ltd. assets
Purchasing
Guangdong Lulutong Co., Ltd. 144,000.00
assets
Guangdong Hualu Traffic Technology Co., Purchasing
12,405.71
Ltd. assets
Purchasing
Guangdong Changda highway Co., Ltd. 181,773,095.95 24,709,006.46
assets
Guangdong Hualu Traffic Technology Co., Purchasing
5,156,328.48 2,717,447.60
Ltd. assets
Guangdong Xinyue Traffic Investment Co., Purchasing
1,136,466.97 2,858,773.68
Ltd. assets
Guangdong Litong Information Technology Purchasing
859,450.00 678,996.00
Investment Co., Ltd. assets
Related transactions on sale goods and receiving services
In RMB
Related party Content Amount of current period Amount of previous period
Jingzhu Expressway Guangzhu North section Commission
17,120,754.74 16,328,018.89
Co., Ltd. management fee
Guangdong Expressway Co., Ltd. Project fund 5,622,814.88 6,304,510.75
Guangdong Guanghui Expressway Co., Ltd. Project fund 2,437,801.44 5,873,759.61
Guangdong Luqiao Construction
Project fund 2,379,137.37 839,724.05
Development Co., Ltd.
Guangdong Xinyue Traffic Investment Co.,
Project fund 1,883,038.06 3,534,631.70
Ltd.
Zhaoqing Yuezhao Highway Co., Ltd. Project fund 856,469.13 325,814.39
Guangdong Guangzhu West Line Expressway
Project fund 729,132.79 758,317.15
Co., Ltd.
Guangdong Highway Construction Co., Ltd. Project fund 594,659.08 397,676.19
Guangdong Boda Expressway Co., Ltd. Project fund 520,924.53 317,618.56
Guangdong Kaiyang Expressway Co., Ltd. Project fund 507,128.03 682,612.31
Guangdong Chaohui Expressway Co., Ltd. Project fund 384,835.85 457,548.31
Guangdong Guangfo Expressway Co., Ltd. Project fund 342,452.84 297,452.82
187
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Related party Content Amount of current period Amount of previous period
Guangdong Guangle Expressway Co., Ltd. Project fund 290,094.34 445,418.32
Guangdong Jiangzhong Expressway Co., Ltd. Project fund 276,415.10 319,266.57
Guangdong Maozhan Expressway Co., Ltd. Project fund 206,603.77 350,468.19
Guangdong Zhongjiang Expressway Project
Project fund 197,169.81
Management Dept
Guangdong Baomao Expressway Co., Ltd. Project fund 189,622.64 328,602.10
Guangdong Zhaoyang Expressway Co., Ltd. Project fund 172,641.51 246,214.16
Guangdong Yangmao Expressway Co., Ltd. Project fund 166,981.13 269,627.28
Guangdong Two Guang Expressway Co., Ltd. Project fund 164,396.55
Guangdong Jiangzhao Expressway
Project fund 147,169.81
Management Center
Guangdong Humen Bridge Co., Ltd. Project fund 133,435.27 115,477.34
Guangdong Triffic Industry Investment
Project fund 118,867.92 101,018.80
Co.,Ltd.
Guangdong Luoyang Expressway Co., Ltd. Project fund 107,547.17 53,773.58
Yunfo Gufangyun Expressway Co., Ltd. Project fund 94,622.64 50,943.40
Guangdong Taishan Coastal Expressway
Project fund 59,433.96 118,867.92
Co.,Ltd.
Shezhen Huiyan Expressway Co., Ltd. Project fund 53,773.58 103,765.52
Guangdong Yueyun Triffic Co., Ltd. Project fund 42,452.83 56,603.78
Guangdong Litong Technology Investment
Project fund 35,384.62 208,504.28
Co., Ltd.
Guang-Shen-Zhu Expressway Co., Ltd. Project fund 1,683,819.56
Guangdong West Coastal Expressway Zhuhai
Project fund 312,705.95
Section Co., Ltd.
Guangdong Shanfen Expressway Co., Ltd. Project fund 137,244.44
Guangdong Yuedong Expressway Industry
Project fund 125,935.04
Development Co., Ltd.
Guangdong West Coastal Expressway Xinhui
Project fund 64,691.05
Section Co., Ltd.
Guangdong Xinyue Triffic Investment Co.,
Bid 862.07
Ltd.
Guangdong Lulutong Co., Ltd. Bid 862.07
Note
（2）Related trusteeship/contract
Related trusteeship or contracting in which the Company is the undertake
Nil
Lists of entrust/contractee
Nil
(3) Information of related lease
The Company was lessor：
188
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of lease assets
this year last year
Guangdong Expressway Media Co., Advertising lease
3,436,468.80 3,912,772.37
Ltd.
Guangdong Tongyi Expressway
Service Area Lease 5,859,573.97 6,009,052.78
Service Area Co., Ltd.
Guangdong Changda Highway
Equipment lease 118,974.36
Engineering Co., Ltd.
- The company was lessee：
In RMB
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
Guangdong Litong Real Eatate Office space
9,254,826.21 8,619,987.40
Investment Co., Ltd
Guangdong Guanghui Advertising column lease
551,400.00 948,300.00
Expressway Co., Ltd.
Zhaoqing Yuezhao Highway
Advertising column lease 248,062.50 234,609.00
Co., Ltd.
Zhaoqing Yuezhao Highway
Equipment 116,504.85 116,504.85
Co., Ltd.
Guangdong Kaiyang
Equipment lease 116,504.85 116,504.85
Expressway Co., Ltd.
Guangdong Maozhan
Equipment lease 103,448.28 102,564.10
Expressway Co., Ltd.
Guangdong Gaoda Property Office space
60,999.64
Development Co., Ltd.
Guangdong Jingzhu
Expressway Guangzhu North Installation lease 8,918.12
Section Co., Ltd.
Guangdong Highway
Office space 109,182.36
Construction Co., Ltd.
Note
（4）Related-party guarantee
The Company was Guarantor
Nil
The Company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Guangdong Communication
1,725,000,000.00 September 25,2012 March 25,2020 No
Group Co., Ltd.
Note:
Controlling shareholder Guangdong Communication Group Co., Ltd. accepted Pacific Asset Management Co.,
189
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Ltd. insurance debt investment plan to provide joint liability guarantee of principal and interest in full and
unconditional irrevocable. The company held Guangzhou Guangzhu Traffic Investment Management Co., Ltd.
75% stake in Guangdong Communication Group Co., Ltd. to provide a counter-guarantee.
(5) Inter-bank lending of capital of related parties
In RMB
Amount borrowed
Related party Initial date Due date Notes
and loaned
Borrowed
Guangdong Guanghui Expressway Co., Ltd. 45,000,000.00 May 22,2018 May 21,2019
Guangdong Guanghui Expressway Co., Ltd. 105,000,000.00 March 22,2018 September 21,2018
Ganzhou Gankang Expressway Co., Ltd. 50,000,000.00 February 2,2018 June 3,2018
Guangdong Jiangzhong Expressway Co., Ltd. 36,000,000.00 November 14,2018 November 13,2023
Loaned
(6) Related party asset transfer and debt restructuring
Nil
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
6,638,600.00 6,003,229.80
personnel
Number for the key management personnel 25 32
(8) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
Items Amount of current period Amount of previous period
Balance of Deposit 640,041,849.19 366,841,521.49
Interest Income 5,695,294.50
Pricing Principle Reference to the deposit rate of the people's Bank of China for the same period
On December 25, 2017 and December 22, 2017, the Company signed the Cash Management Business
Cooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and Industrial and
Commercial Bank of China Guangdong Branch and signed the Cash Management Business Cooperation
Agreement with Guangdong Communications Group Finance Co., Ltd. and China Construction Bank Corporation.
Guangdong Branch respectively, to join in the cash pool of Guangdong Communications Group Finance Co., Ltd.
-On June 15, 2016,The company ’ s 29th meeting (Provisional) of the seventh board of directors was
convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of
190
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting, agreed
that Guangdong Provincial Fokai Expressway Co., Ltd entrusts Guangdong Provincial Highway Construction Co.,
Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway, and handling the related matters of the entrustment of the
construction management.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Guangdong Union electron
Account receivable 45,159,424.41 45,447,260.32
Servce Co., Ltd.
Guangdong Humen Bridge
Account receivable 12,579,159.31 9,425,822.31
Co., Ltd.
Jingzhu Expressway
Account receivable Guangzhu North Section 5,280,850.02 4,821,700.01
Co., Ltd.
Guangdong Xinyue Traffic
Account receivable 1,828,273.53 202,508.01 3,848,556.04 65,052.00
Investment Co., Ltd.
Guanghui Expressway Co.,
Account receivable 901,822.65 4,025,633.55
Ltd.
Guangdong Expressway
Account receivable 873,408.00 1,274,749.50
Co., Ltd.
Guangdong Highway
Account receivable 358,484.00 109,152.00 626,304.00 65,491.00
Construction Co., Ltd.
Guangdong Guangzhu West
Account receivable 294,260.00 356,850.40
Line Expressway Co., Ltd.
Guangdong Kaiyang
Account receivable 178,157.15 379,837.72
Expressway Co., Ltd.
Guangdong Jiangzhao
Account receivable Expressway Management 156,000.00
Center
Guangdong Zhongjiang
Account receivable Expressway Project 95,000.00
Management Dept
Guangdong
Account receivable LitongTechnology 68,542.00 6,854.20 201,342.00
Investment Co., Ltd.
Guangdong Taishan coastal
Account receivable 63,000.00
Expressway Co., Ltd.
Guangdong Yueyun Traffic
Account receivable 45,000.00
Co., Ltd.
Account receivable Zhaoqing Yuezhao Highway 4,829.98
191
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Co., Ltd.
Guangdong Expressway
Account receivable 1,799,600.00
Media Co., Ltd.
Guang-Shen-Zhu
Account receivable 189,000.00
Exparessway Co., Ltd.
Guangdong Nanyue Traffic
Account receivable Shaogan Expressway 179,424.00
Management Center
Guangdong Maozhan
Account receivable 166,196.80
Expressway Co., Ltd.
Guangdong Baomao
Account receivable 145,038.40
Exparessway Co., Ltd.
Guangdong Yuedong
Account receivable Expressway Development 139,976.80
Co., Ltd.
Guangdong West Coastal
Account receivable 30,000.00 2,830.00
Expressway Co., Ltd.
Guangdong Litong Real
Advanced payment 735,092.38 700,087.62
Estate Investment Co., Ltd.
Zhaoqing Yuezhao Highway
Advanced payment 144,702.50 144,703.00
Co., Ltd.
Other Account Guangdong Litong Real
1,505,864.00 1,505,864.00
receivable Estate Investment Co., Ltd.
Other Account Guangdong Guanghui
1,478,904.68 1,463,995.66
receivable Expressway Co., Ltd.
Other Account Guangdong Expressway
630,778.47 597,164.23
receivable Co., Ltd.
Other Account Zhaoqing Yuezhao Highway
437,463.87 427,478.09
receivable Co., Ltd.
Other Account Guangdong Xinyue Traffic
415,442.60 415,442.60
receivable Investment Co., Ltd.
Other Account Guangdong Expressway
275,166.57 1,213,926.84
receivable Media Co., Ltd.
Other Account Guang-Shen-Zhu
187,533.46 223,371.78
receivable Exparessway Co., Ltd.
Other Account Guangdong Guangzhu West
186,371.32 187,560.16
receivable Line Expressway Co., Ltd.
Other Account Guangdong Highway
129,529.29 115,058.75
receivable Construction Co., ltd.
Guangdong Road &Bridge
Other Account
Construction Development 121,948.14 93,172.08
receivable
Co., ltd.
Other Account Guangdong Boda
52,467.45 52,689.46
receivable Expressway Co., Ltd.
Other Account Guangdong Kaiyang
45,999.77 88,827.08
receivable Expressway Co., Ltd.
192
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Other Account Guangdong Guangle
29,832.90 104,353.10
receivable Expressway Co., ltd.
Other Account Guangdong Yangmao
29,265.49 46,778.36
receivable Expressway Co., Ltd.
Other Account Guangdong Jiangzhong
28,474.26 28,942.41
receivable Expressway Co., Ltd.
Other Account Guangdong Maozhan
14,074.11 17,591.49
receivable Expressway Co., Ltd.
Other Account Guangdong Shenshan
12,081.56
receivable Expressway Co., ltd.
Other Account Guangdong Gaoda Property
11,748.00 9,940.70
receivable Development Co., Ltd.
Other Account Guangdong Humen Bridge
9,141.89 58,139.05
receivable Co., Ltd.
Guangdong
Other Account
ShanfenExpressway Co., 8,028.80 8,028.80
receivable
Ltd.
Other Account Guangdong Baomao
7,633.60 7,633.60
receivable Expressway Co., Ltd.
Guangdong Yuedong
Other Account
Expressway Industry 7,367.20 7,367.20
receivable
Development Co., Ltd.
Guangdong Jingzhu
Other Account
Expressway Guangzhu 6,202.46 63,612.63
receivable
Section Co., Ltd.
Other Account Yunfo Guangyun
5,831.32 11,628.49
receivable Expressway Co., Ltd.
Guangdong Litong
Other Account
Technology Investment 5,273.00 5,273.00
receivable
Co., Ltd.
Other Account Guangdong Zhaoyang
4,304.00 4,309.15
receivable Expressway Co., Ltd.
Other Account Guangdong Guangfozhao
3,619.10 1,685.28
receivable Expressway Co., Ltd.
Other Account Guangdong YueyunTraffic
3,032.00 3,032.00
receivable Co., Ltd.
Hongkong Zhuhai Macao
Other Account
Bridge Connection line 3,000.00
receivable
management center
Other Account Guangdong Chaohui
2,819.90 5,617.45
receivable Expressway Co., Ltd.
Other Account Guangdong Two Guang
1,656.69 556.32
receivable Expressway Co., Ltd.
Other Account Guangdong Meihe
574.17 3,367.47
receivable Expressway Co., Ltd.
Other Account Heyuan Helong Expressway
467.14 1,428.35
receivable Co., Ltd.
193
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Other Account Guangdong Ninghua
271.81
receivable Expressway Co., Ltd.
Other Account Guangdong Hehui
90.20
receivable Expressway Co., Ltd.
Guangdong West coastal
Other Account
Expressway Zhuhai Section 40,967.05
receivable
Co., Ltd.
Guangdong Jiangzhao
Other Account
Expressway Management 9,098.40
receivable
Center
Guangdong West coastal
Other Account
Expressway Xinhui Section 5,753.20
receivable
Co., Ltd.
Guangdong Nanyue Traffic
Other Account
Shaogan Expressway Co., 1,860.07
receivable
Ltd.
Other Account Guangdong Pingxing
243.34
receivable Expressway Co., Ltd.
Guangdong Changda
Other Non-Current
Highway Engineering Co., 4,216,292.57 15,937,725.40
Assets
Ltd.
Other Non-Current Guangdong Xinyue Traffic
823,423.25
Assets Investment Co., ltd.
Other Non-Current Guangdong Hualu Traffic
796,711.00
Assets Technology Co., Ltd.
Guangdong East Thinking
Other Non-Current
Management Technology 268,155.00
Assets
Development Co., Ltd.
Guangdong Jingzhu
Long-term
Expressway Guangzhu 1,221,781.88
amortization costs
North Section Co., Ltd.
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Account payable Guangdong Highway Construction Co., Ltd. 25,630,651.00 75,980,021.00
Account payable Guangdong Changda Highway Engineering Co.,Ltd. 12,166,883.00 14,449,499.60
Account payable Guangdong Expressway Co., Ltd. 8,746,491.18 8,746,491.18
Account payable Guangdong Hualu Traffic Technology Co., Ltd. 2,913,206.00 383,282.00
Account payable Guangzhou Xinyue Asphalt Co., Ltd. 2,537,848.10
Account payable Guangdong Xinyue Traffic Investment Co., Ltd. 1,829,141.32 776,543.24
Account payable Guangdong Litong Technology Investment Co., Ltd. 1,631,800.00 2,152,850.00
Account payable Guangdong Guanghui Expressway Co.,Ltd. 551,400.00 948,300.00
Account payable Guangdong Maozhan Expressway Co.,Ltd. 120,000.00 120,000.00
194
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Name Related party Amount at year end Amount at year beginning
Account payable Guangdong Union Electron Service Co.,Ltd. 1.59
Interest payable Guangdong Guanghui Expressway Co.,Ltd. 1,096,200.00
Interest payable Guangdong Jiangzhong Expressway Co., Ltd. 43,065.00
Received in Guangdong Jingzhu Expressway Guangzhu North Section Co.,
0.06
advance Ltd.
Other Payable
Guangdong Guanghui Expressway Co.,Ltd. 45,000,000.00 20,221.75
account
Other Payable
Guangdong Changda Highway Engineering Co.,Ltd. 11,346,061.22 3,953,559.55
account
Other Payable
Guangdong Union Electron Service Co.,Ltd. 3,800,226.36 2,238,981.27
account
Other Payable
Guangdong Xinyue Traffic Investment Co., Ltd. 1,779,918.51 1,636,943.30
account
Other Payable
Guangdong Hualu Communication Technology Co., Ltd. 786,185.88 181,253.14
account
Other Payable Guangdong East Thinking Management Technology
531,573.69 230,713.19
account Development Co., Ltd.
Other Payable
Guangdong Litong Technology Investment Co., Ltd. 203,655.20 465,228.30
account
Other Payable
Guangzhong Jiang ExpresswayCo., Ltd. 200,491.55 200,000.00
account
Other Payable
Guangdong Lulutong Co., Ltd. 165,249.80 133,249.80
account
Other Payable
Guangdong Tongyi Expressway Service Area Co., Ltd. 120,000.00 120,000.00
account
Other Payable
Guangdong Expressway Media Co., Ltd. 70,000.00 70,000.00
account
Other Payable
Guangdong Expressway Co., Ltd. 15,342.09 350,680.10
account
Other Payable Guangdong Jingzhu Expressway Guangzhu North Section Co.,
9,327.00 13,553.00
account Ltd.
Other Payable
Guangdong Jiangzhao Expressway Management Center 7,217.12 62,047.64
account
Other Payable
Guangdong Baomao Expressway Co., Ltd. 3,206.11 48,950.59
account
Other Payable
Guangdong Traffic Industry Investment Co.,Ltd. 2,347.68
account
Other Payable
Guangdong Zhaoyang Expressway Co., Ltd. 2,145.78 49,171.27
account
Other Payable Guangdong Yuedong Expressway Industry Development Co.,
1,018.37 2,566.50
account Ltd.
Other Payable Guangdong Nanyue Traffic Yunzhan Expressway Management
821.38
account Center
Other Payable
Guangdong Shanfen Expressway Co., Ltd. 751.35 5,843.90
account
Other Payable
Guangdong Highway Construction Co., Ltd. 689.83 11,158.46
account
195
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Name Related party Amount at year end Amount at year beginning
Other Payable
Guangdong Road &Bridge Construction Development Co., Ltd. 551.99 2,435.71
account
Other Payable Guangdong Nanyue Traffic Shaogan Expressway Management
546.89
account Center
Other Payable
Shenzhen Huiyan Expressway Co., Ltd. 391.36 946.81
account
Other Payable
Guangdong Luoyang Expressway Co., Ltd. 319.21 1,202.48
account
Other Payable Guangdong Nanyue Traffic Zhaozhang Expressway
282.67
account Management Center
Other Payable Guangdong Nanyue Traffic Renbo Expressway Management
225.79
account Center
Other Payable
Guangdong Boda Expressway Co., Ltd. 100.97 408.23
account
Other Payable
Guangdong Pingxing Expressway Co., Ltd. 45.41
account
Other Payable
Guangdong Kaiyang Expressway Co., Ltd. 272,445.68
account
Other Payable
Guangdong Jiangzhong Expressway Co., Ltd. 215,384.63
account
Other Payable
Guangdong Maozhan Expresswa Co., Ltd. 188,931.56
account
Other Payable Guangdong West Coastal Expressway Zhuhai Section Co.,
48,146.64
account Ltd.
Other Payable Zhongshan Yueyun Airport EXPRESS Pessenger Transport Co.,
34,568.85
account Ltd.
Other Payable
Guang-Shen-Zhu Expressway Co., Ltd. 20,344.23
account
Other Payable
Guangdong Guangzhu West Line Expressway Co., Ltd. 18,981.84
account
Other Payable Guangdong Litong Information Technology Investment Co.,
16,376.20
account Ltd.
Other Payable
Guangdong West Coastal Expressway Co., Ltd. 3,342.12
account
Other Payable
Guangdong Yangmao Expressway Co., Ltd. 2,817.71
account
Other Payable
Zhaoqing Yuezhao Highway Co., Ltd. 2,388.80
account
Other Payable
Guangdong Two Guang Expressway Co., Ltd. 1,603.02
account
Other Payable
Heyuan Helong Expressway Co., Ltd. 896.89
account
Other Payable
Guangdong Hehui Expressway Co., Ltd. 216.43
account
Dividend
Xinyue Highway Construction Co., Ltd. 12,500,000.00
payable
Long-term Guangdong Jiangzhong Expressway Co., Ltd. 36,000,000.00
196
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Name Related party Amount at year end Amount at year beginning
Payable
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
Nil
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
On June 15, 2016, the Company’ 29th meeting (Provisional) of the seventh board of directors was convened.
In the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltd pertaining to the
Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway
was examined and approved, agreed that based on the approved total investment amount by relevant government
department, then the company’s subsidiary- Guangdong Fokai Expressway Co., Ltd carries out the investment
and construction of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway; the company increases funding for Guangdong Provincial Fokai Expressway Co., Ltd
pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway, with the contributed funds as a proportion of 35% of the total investment amount approved
by relevant government department. The afore-said item had been examined and approved in the first
extraordinary general shareholder meeting, The Company had received the approval of the National Development
and Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section Rebubuilding and
Expansion Project(NO.1874-2016-NDRC Infrastructure Document)from Guangdong Provincel Development and
reform Commission On October 11, 2016, agreed with the implementation of the Guangdong Provincial
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the total investment
of this project is about 3.513 billion yuan(the static investment is about 3.289 billion yuan), of which the project
capital is 1.23 billion yuan that accounts for 35% of the total investment and such amount of the project capital
will be provided by Guangdong Provincial Fokai Expressway Co., Ltd, and the rest amount of 2,283 billion yuan
will be solved by using bank loans. According to the "Official Reply to the preliminary design of reconstruction
and extension project of Guangdong Sanbao to Shuikou Road by Ministry of Transport" (No.73-2017 Transport
Road Document) issued by Guangdong Provincial Department of Transport, the Ministry of Transport checked
and ratified that the general estimate of the preliminary design of reconstruction and extension project of
Guangdong Sanbao to Shuikou Road is 3.426 billion yuan. As of December 31,2018, The accumulated expenses
occurred of Sanboto Shuikou Highway extension project was 1.498 billion yuan.
The performance of major contracts is as follows:
Economic
No Contract Counterparty Contract Amount Fulfilled as of December 31, 2018
Content
China Railway Tunnel Group Co., Civil
1 251,026,485.00 201,831,670.00
Ltd. Engineering
Guangdong Changda Highway Civil
2 624,878,240.00 195,635,425.40
Engineering Co., Ltd. Engineering
China Railway 18th Bureau Group Civil
3 219,974,609.00 148,619,889.20
Co., Ltd. Engineering
CCCC First Navigation Engineering Civil
4 355,014,108.00 206,039,193.12
Bureau Co., Ltd Engineering
2. Contingency
(1) Significant contingency at balance sheet date
This matter. did not occur in this accounting period.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
XV. Enents after balance sheet date
1. Significant events had not adjusted
Nil
2.Profit distribution
In RMB
Profits or dividends to be distributed 1,175,033,042.81
Profits or dividends declared to issue after examination 1,175,033,042.81
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Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
3.Sales return
Nil
4.Notes of other significant event after balance sheet date
Nil l
XVI.Other significant events
1.The accounting errors correction in previous period
This matter. did not occur in this accounting period. During the reporting period.
2.Debt restructuring
This matter. did not occur in this accounting period. During the reporting period.
3.Replacement of assets
（1）Non-monetary assets exchange
Nil
（2）Replacement of other assets
Nil
4.Pension plan
The company does not disclose the pension plan undisclosed matter should exist.
5.Discontinuing operation
This matter did not occur in this accounting period. During the reporting period,.
6. Segment information
The company's business for the Guangfo Expressway , the Fokai Expressway and Jingzhu Expressway Guangzhu
Section toll collection and maintenance work, the technology industry and provide investment advice, no other
nature of the business, no reportable segment.
(4)Other note
7.Other important transactions and events have an impact on investors decision-making
8.Other
(1)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii 035#
collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads the
collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10, 2009, Jiujiang Bridge opened
199
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
to traffic has been restored.
On June 19,2007 ， The Ministry of Communications, the State Production Safety Supervision and
Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15
"Jiujiang Bridge Collision Accident", initially determined the causes of the accident are: the incident ship
suddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain neglected looking out, did not
take proper measures and deviated from the main channel, touched the 325 National Road Jiujiang Bridge the
non-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an unilateral
On July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August
22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping
Company Limited and Yang Xiong to undertake the compensation 25,587,684 yuan for the loss caused by
collapsing of Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to
the (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case
was suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial Government had
not made the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the
proceeding. In September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed
the proceedings. On December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case.
Currently, Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide,
therefore, on January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. On September 17,
2013, the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings,
the court decided to resume the trial. On December 19, 2013, the Guangzhou Maritime Court opened a court
session, has not yet made the first-instance judgment. On March 7, 2014 the Court made the first instance verdict:
the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong compensated the plaintiff Fokai
Expressway Co., Ltd. toll revenue losses of 19,357,500.96 yuan; the court dismissed the plaintiff other aspirations.
The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong Provincial Higher
People's Court ruled on June 5, 2014, the case discontinued proceedings. By the end of the report period, the
abatement of action causes are already removed and the provincial higher court restores the hearing and conducts
the investigation on April 21, 2017.
(2)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial Expressway
Development Co., Ltd. was held of May 10, 2012. The meeting examined and adopted the proposal Concerning
the Company ’ s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. The
Company was approved to accept the insurance bond investment plan made by Pacific Asset Management Co.,
Ltd. The amount of proceeds to be raised is not more than 1.5 billion yuan . Floating interest rate plus guaranteed
base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate of
RMB loan with a term of over five years on the day when the investment fund of the insureance company is
transferred into the Company’s account and the corresponding days of the future years, which shall be adjusted
once each year. The guaranteed base interest rate is 5.6%. The concrete amount of raised proceeds shall be
within maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to the
Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan between
Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the
Company to implement the above-mentioned matters.
The Company was approved to provide counter guarantee to Guangdong Communication Group
200
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Co.,Ltd.with 75% equity of Guangdong Fokai Expressway Co., Ltd. Held by it . as of December 31, 2016, the
company has borrowed 1.5 billion yuan.
(3)On February 5, 2016, the company received the Approval of the Share-Issuing to Parties such as Guangdong
Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by Guangdong Provincial
Expressway Development Co., Ltd(CSRC No.230-2016 Zheng Jian Xu ke) issued from CSRC; the company’s
scheme on share-issuance for purchasing assets and raising matching funds had been examined and approved by
the Audit Committee of CSRC on Verifying and Approving Mergers, Acquisitions and Restructuring of Listed
Companies. The company has completed asset restructuring in June 2016.
During the profit compensation period, in the case that the actual profits of the underlying company were less
than the committed profits, respectively the counterparts of Guangdong Provincial Expressway Co., Ltd and
Guangdong Provincial Highway Construction Co., Ltd shall assume the obligation of compensation for the profit
difference according to their equity proportion of Guangdong Provincial Fokai Expressway Co., Ltd and
Guangzhou Guangzhu Traffic Investment Management Co., Ltd. The profit compensation period is three years
from 2016-2018.
Agreed by the company and Guangdong Provincial Expressway Co., Ltd, the profits of Fokai Expressway
Co., Ltd in year-2016, year-2017 and year-2018 by estimation shall accordingly be 250.6973 million yuan,
260.0802 million yuan and 403.1197 million yuan, with the aggregated non-recurring gains and losses were
expected to be 105.5743 million yuan. During the compensation period, in the case that the cumulative net profits
of Fokai Expressway Co., Ltd in a certain year realized at the end of the year are less than the estimated
cumulative net profits of the year, the company will, at the price of 1.0 yuan per share, buy-back the shares
calculated in accordance with the agreement for the purpose of compensation and those shares will be written off,
and if the amount of compensation exceeds the consideration of those shares being bought-back, Guangdong
Provincial Expressway Co., Ltd will compensate that part in cash. At the expiration of the compensation period, if
the accumulative actual non-recurring gains and losses (referring to the government ’ s compensation to
Guangdong Provincial Fokai Expressway Co., Ltd due to the cancellation of toll charge of Jiujiang bridge,
hereinafter shortly named as “Jiujiang Bridge Compensation”) of Fokai Expressway Co., Ltd were less than the
estimated accumulative non-recurring gains and losses, Guangdong Provincial Expressway Co., Ltd will, upon the
basis of the stake proportion held by Fokai Expressway Co., Ltd before the major asset restructuring, compensate
in cash to the company in accordance with the agreement; If it is after the expiration of the compensation period,
every time when Fokai Expressway Co., Ltd received Jiujiang Bridge Compensation, the company should refund
the corresponding part which had been paid by Guangdong Provincial Expressway Co., Ltd for the compensation
in accordance with the agreement to Guangdong Provincial Expressway Co., Ltd within 30 working days started
from the date Fokai Expressway Co., Ltd received such compensation.
Agreed by the company and Guangdong Provincial Highway Construction Co., Ltd, the profits of
Guangzhou Guangzhu Traffic Investment Management Co., Ltd in year-2016, year-2017 and year-2018 by
estimation shall accordingly be 230.3606 million yuan, 263.2329 million yuan and 286.5018 million yuan. During
the compensation period, in the case that the cumulative net profits of Guangzhou Guangzhu Traffic Investment
Management Co., Ltd realized at the end of the year are less than the estimated cumulative net profits of the year,
the company will, at the price of 1.0 yuan per share, buy-back the shares held by Guangdong Provincial Highway
Construction Co., Ltd with the quantity being calculated upon the agreement for compensation and those shares
will be written off.
Guangdong Fokai Expressway Co., Ltd. in 2016 the actual profit (excluding non-) by 286.1655 million yuan,
more than the commitment to profit more than 35.4682 million yuan; In 2017 ,the simulated actual profit
201
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(excluding non-) by 314.7091 yuan, more than the commitment to profit more than 54.6289 million yuan; In
2018 ,the simulated actual profit (excluding non-) by 373.7611 yuan, more than the commitment to profit more
than 29.3586 million yuan; As of the end of 2018, the cumulative simulated actual profit (deducted the
non-recurring gains and losses) was 974,635,700 yuan, which was 60,738,500 yuan more than the accumulated
promised profit. And the compensation of 140,765,700 yuan for the losses arising from the promised
ahead-of-time cancellation of fees charge of Jiujiang Bridg was received in full.
Guangzhou Guangzhu Traffic Investment Management Co., Ltd. in 2016 the actual profit (excluding non-)
by 271.7759 million yuan, more than the commitment to profit more than 41.4153 million yuan; In 2017 ,the
actual profit (excluding non-) by 321.5034 yuan, more than the commitment to profit more than 58.2705 million
yuan; In 2018 ,the simulated actual profit (excluding non-) by 324.7562 yuan, more than the commitment to profit
more than 38.2544 million yuan; As of the end of 2018, the cumulative actual profit was 918.0355 yuan, which
was 137.9402 million yuan more than the accumulated promised profit.
(4)On April 10, 2018, the company received a letter from the shareholder Yadong Fuxingn Yalian Investment Co.,
Ltd. On February 8, 2018, Yadong Fuxing Company pledged in batches of the Guangdong Expressway A shares
that were previously pledged in the Guotai Junan Securities Co., Ltd, and handled the stock pledge financing
agreement of Guangdong Expressway A shares with the China Yinhe Securities Co., Ltd. The 141,600,000 shares
held by the Yadong Fuxing Company and accounted for 6.77% of the company's total share capital were pledged
to the China Yinhe Securities Co., Ltd for the financing, with the pledge period starting from April 3, 2018.
On June 28, 2018, Yadong Fosun added 15,052,500 shares of Guangdong Expressway A shares in pledge to
China Galaxy Securities Co., Ltd. to replenish the pledge in order to withdrawal of stock dividends in the account.
As of the date of approval of report of this financial statement, Yadong Fosun holds 202,429,149 A shares of the
Company, accounting for 9.68% of the total share capital of the Company, of which 156,652,500 shares are
pledged-accounting for 7.49% of the total share capital of the Company.
(5) The nineteenth (interim) meeting of the eighth board of directors of the company was held on August 7, 2018.
The meeting deliberated and adopted the proposal on the Issuance of medium-term bills , agreeing that the
company's registration quota in the China Interbank Market Traders Association (hereinafter referred to as
"Traders Association") should not exceed 3.4 billion yuan (including) of the votes, and the quota should be within
40% of the company's net assets audited in the latest issue. Apply for one-time or staged issuance, the period is
not less than 5 years (including 5 years), raise funds for repayment of loans and supplementary operating funds,
etc. The matter has been adopted by the first provisional shareholders'meeting in 2018.
On January 4, 2019, the Traders'Association issued the Notice of Acceptance of Registration (MTN9 of
Zhongshi Association [2019]), accepting the registration amount of the company's medium-term bills for 3.4
billion yuan. The amount of registration is valid for two years from the date of accepting the payment of the
registration notice, and is jointly underwritten by Industrial and Commercial Bank of China and China
Construction Bank Limited. From February 27 to 28, 2019, the company issued the first interim bills of 2019 with
a total amount of 680 million yuan. The fund raised was transferred to the designated account of the company on
March 1, 2019.
202
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
XVII.Notes of main items in financial reports of parent company
1.Note receivable and Account receivable
In RMB
Items Year-end balance Year-beginning
Note receivable 0.00 0.00
Account receivable 18,405,847.15 19,001,899.29
Total 18,405,847.15 19,001,899.29
（1）Note receivable
Nil
（2）Account receivable
（1）Account receivable classified by category
In RMB
Year-end balance Year-beginning
Provision
Provision for
Book balance for bad Book balance
bad debts
Category debts
Book value Book value
Prop Propor
Proporti Amou Proportio Amoun
Amount ortio Amount tion(%
on(%) nt n(%) t
n(%) )
Account receivable with
single major amount and
18,405,847.15 100.00% 18,405,847.15 19,001,899.29 100.00% 19,001,899.29
withdrawal bad debt
provision for single item
Total 18,405,847.15 100.00% 18,405,847.15 19,001,899.29 100.00% 19,001,899.29
- Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □Not applicable
In RMB
Year-end balance
Name
Receivable accounts Bad debt provision Proportion Reason
Guangdong Union It is expected to be fully recovered after a
Electronic Services Co., 18,405,847.15 single test
Ltd.
Total 18,405,847.15 -- --
Account receivable on which bad debt provisions are provided on age basis in the group：
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
203
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:：
Nil
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is 0.00 yuan ; recovery or payback for bad debts Amount is 0.00
yuan.
Where the current bad debts back or recover significant amounts:Nil
（3）The current accounts receivable write-offs situation
Nil
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Aging Proportion(%) Bad debt provision
Guangdong Union Electronic Services Co., Ltd. 18,405,847.15 Within 1 year 100.00
Total 18,405,847.15 100.00
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
4.Other accounts receivable
In RMB
Items Balance in year-end Balance in year-begin
Interest receivable 1,880,148.12 2,070,385.95
Dividend receivable 1,205,472.90 10,000,000.00
Other 6,238,161.64 5,298,202.17
Total 9,323,782.66 17,368,588.12
（1）Interest receivable
1) Classification of interest receivable
In RMB
Items Balance in year-end Balance in year-begin
Entrusted loan 1,880,148.12 2,070,385.95
Total 1,880,148.12 2,070,385.95
2) Important overdue interest
Nil
204
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
（2）Dividend receivable
1) Dividend receivable
In RMB
Items Balance in year-end Balance in year-begin
Jingzhu Expressway Guangzhu Section Co., Ltd. 10,000,000.00
Guangdong Radio and Television Networks investment No.1 Limited partnership
1,205,472.90
enterprise
Total 1,205,472.90 10,000,000.00
（2）Significant dividend receivable aged over 1 year
Nil
205
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
(3)Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Balance in year-end Balance in year-begin
Book Balance Bad debt provision Book Balance Bad debt provision
Type
Amount Proportion Amount Proportion(%) Book value Amount Proportion Amount Proportion(%) Book value
(%) (%)
Other Account receivable
with single major amount
30,844,110.43 83.18% 30,844,110.43 100.00% 32,084,893.35 82.44% 32,084,893.35 100.00%
and withdrawal bad debt
provision for single item
Other Account receivable
withdrawal bad debt
6,238,161.64 16.82% 6,238,161.64 6,832,189.43 17.56% 1,533,987.26 22.45% 5,298,202.17
provision by group of
credit risk characteristics
Total 37,082,272.07 100.00% 30,844,110.43 83.18% 6,238,161.64 38,917,082.78 100.00% 33,618,880.61 86.39% 5,298,202.17
206
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
In RMB
Other Balance in year-end
receivable Bad debt
（Unit） Other receivable Proportion Reason
provision
The parent company once paid 33,683,774.79 yuan into Kunlun
Securities Co., Ltd, Guangdong Expressway technology investment
Co., Ltd once paid 18,000,000.00 yuan into Kunlun Securities Co.,
Ltd. Qinghai Province Xining City’s intermediate people’s court
made a adjudication under law declared that Kunlun Securities Co.,
Ltd went bankrupt and repaid debt in November 11, 2006. On March
Kunlun 2007, The Company and Guangdong Expressway Technology
Sercurities 30,844,110.43 30,844,110.43 100.00% Investment Co., Ltd had switched the money that paid into Kunlun
Co.,Ltd. Secutities Co., Ltd to other account receivable, and follow the
careful principle to doubtful debts provision. The 485,392.67 yuan
Credit was Recovered in 2008, and the provision for bad debt is
deducted, The 667,959.27 yuan credit was recovered in 2011, and
the provision for had debt is deducted.The 445,529.50 yuan Cridit
was recovered in 2014, The 1,240,782.92 yuan Cridit was recovered
in 2018, and the provision for had debt is deducted.
Total 30,844,110.43 30,844,110.43 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√Applicable □Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Subtotal within 1 year 3,193,326.76
Total 3,193,326.76
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
√ Applicable □ Not applicable
Amount in year-end
Name Other account Bad debt Withdrawal Reason
receivable provision proportion（%）
Quality guarantee 1,930,943.00 Deposit, Guarantee
Related party transactions within the scope of 650,400.00 Related party
merger transactions
Other 463,491.88 Related party
transactions
Total 3,044,834.88
Other receivables with minor individual amount and bad debt provision provided individually
Nil
207
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is 0.00
yuan; recovery or payback for bad debts Amount is1,240,782.92 yuan.
Where the current bad debts back or recover significant amounts
In RMB
Name Amount Way Reason Basis
It is not expected to
Kunlun Securities Co., Ltd. 1,240,782.92 Received bank deposit recover the full provision
Liquidation group allocation for bad debts
Total 1,240,782.92 --
(3)The actual write-off other accounts receivable
In RMB
Items Amount
The actual write-off other accounts receivable 1,533,987.26
Including significant other receivable：
In RMB
Writing-off
Name Nature Amount Reason Related transaction
procedure
Heshan Traffic Real estate It is not expected to
Other 1,470,000.00 Board approval No
Development Co.,Ltd. recover
Total -- 1,470,000.00 -- -- --
Note：
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Securities trading settlement funds balance 30,844,110.43 32,084,893.35
Guarantee deposit 1,930,943.00 1,929,135.70
Pretty cash 1,605,100.00 1,505,100.00
Advertising and service fee 203,133.13
Other 2,051,718.64 3,194,820.60
Related transactions within the scope of consolidation 650,400.00
Total 37,082,272.07 38,917,082.78
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Name Nature Closing balance Aging Proportion of the Closing balance of
208
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
total year end bad debt provision
balance of the
accounts
receivable(%)
Kunlun Securities Securities trading se
30,844,110.43 Over 5 years 83.18% 30,844,110.43
Co.,Ltd ttlement funds
Guangdong Litong
Real Estates Deposit 1,505,864.00 1-2 years 4.06%
Investment Co., Ltd.
Pretty cash Pretty cash 1,270,000.00 Within 1 year 3.42%
Guangdong
Expressway
Receivable rent 650,400.00 Within 1 year 1.75%
Technology
Investment Co., Ltd.
Guangdong Entrustment
463,491.88 3-4 years 1.25%
Expressway Co., Ltd. management fee
Total -- 34,733,866.31 -- 93.66% 30,844,110.43
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
3. Long-term equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment
Book Balance Book value Book Balance Book value
provision provision
Investment in
1,533,665,008.81 1,533,665,008.81 5,169,662,219.66 5,169,662,219.66
subsidiaries
Investment in
joint ventures and 3,145,644,970.07 3,145,644,970.07 3,047,275,000.00 3,047,275,000.00
associates
Total 4,679,309,978.88 4,679,309,978.88 8,216,937,219.66 8,216,937,219.66
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Guangfo 154,982,475.25 154,982,475.25
209
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Expressway Co.,
ltd.
Guangdong
Expressway
Technology 95,731,882.42 95,731,882.42
Investment Co.,
Ltd.
Guangdong Fokai
Expressway Co., 3,635,997,210.85 3,635,997,210.85 0.00
Ltd.
Guangzhou
Guangzhu
Communication
859,345,204.26 859,345,204.26
Investment
Management Co.,
Ltd.
Jingzhu
Expressway
419,105,446.88 419,105,446.88
Guangzhu Section
Co., Ltd.
Yuegao Capital
Investment
4,500,000.00 4,500,000.00
(Hengqin) Co.,
Ltd.
Total 5,169,662,219.66 3,635,997,210.85 1,533,665,008.81
210
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustment of balance of
Name Opening balance Declaration of Closing balance
Add Decreased Gain/loss of other Other equity Withdrawn impairment impairmen
cash dividends Other
investment investment Investment comprehensive changes provision t provision
or profit
income
I. Joint ventures
Guangdong Guanghui
949,906,833.96 290,709,616.82 26,710,620.00 274,805,847.20 992,521,223.58
Expressway Co., Ltd.
ZhaoqingYuezhao
291,906,117.18 58,355,080.40 43,088,859.48 307,172,338.10
Highway Co., Ltd.
Subtotal 1,241,812,951.14 349,064,697.22 26,710,620.00 317,894,706.68 1,299,693,561.68
II. Associated enterprises
ShenzhenHuiyan
196,197,198.21 34,356,558.66 230,553,756.87
Expressway Co., Ltd.
Guangdong
Jiangzhong 173,502,304.11 11,806,234.72 9,983,895.07 175,324,643.76
Expressway Co., Ltd.
Ganzhou Kangda
208,768,922.86 32,216,095.66 21,000,000.00 219,985,018.52
Expressway Co., Ltd.
Ganzhou Gankang
204,404,703.35 5,591,207.36 209,995,910.71
Expressway Co., Ltd.
Guangdong Yueke
Technology Petty 215,548,332.90 15,134,350.84 10,989,125.47 219,693,558.27
Loan Co., Ltd.
Guoyuan Securities
807,040,587.43 15,703,921.74 -20,400,286.56 -5,404.45 11,940,297.90 790,398,520.26
Co.,Ltd.
Subtotal 1,805,462,048.86 114,808,368.98 -20,400,286.56 -5,404.45 53,913,318.44 1,845,951,408.39
Total 3,047,275,000.00 463,873,066.20 -20,400,286.56 26,705,215.55 371,808,025.12 3,145,644,970.07
211
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
（3）Other note
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 1,327,567,186.19 707,219,409.98 553,779,699.47 330,893,919.46
Other 79,985,567.22 7,948,012.97 80,104,649.29 4,015,303.85
Total 1,407,552,753.41 715,167,422.95 633,884,348.76 334,909,223.31
Other note
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment income
621,221,266.51 1,095,070,873.20
accounted by cost method
Long-term equity investment income
463,873,066.20 423,940,445.45
accounted by equity method
Investment loss through disposal of
685,975,224.36
long-term equity investment
Investment income received from holding of
43,786,617.76 24,327,921.74
available-for –sale financial assets
Total 1,814,856,174.83 1,543,339,240.39
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current assets 63,173,138.25
Government grants recognized in the current period,
except for those acquired in the ordinary course of
1,113,228.32
business or granted at certain quotas or amounts
according to the country’s unified standards
Net amount of non-operating income and expense
-1,545,368.05
except the aforesaid items
After the cancellation of Guangdong Fokai
Expressway Co., Ltd., the deferred income tax assets of
Less: .Amount of influence of income tax -230,679,518.30
246,010,541.19 yuan were recognized for the loss of equity
disposal.
Amount of influence of minority interests 11,833,729.46
212
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
Total 281,586,787.36 --
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
18.37% 0.80 0.80
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
deduction of non-recurring profit 15.29% 0.67 0.67
and loss
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
Nil
213
Guangdong Provincial Exppressway Development Co., Ltd. 2018 Annual Report
XII. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, Chief Financial officer
and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
214
