Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Guangdong Provincial Expressway Development Co.,Ltd. The Third Quarterly Report 2019 October 2019 1 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 I. Important Notice The Board of Directors and the Supervisory Committee of the Company and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and or joint. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr.Zheng Renfa, Leader, Mr.Wang Chunhua, General Manager, Mr. Fang Zhi, Chief of the accounting work,Ms Zhou Fang, Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity and completeness of the financial report enclosed in this report. II. Basic Information of the Company (1)Main financial data and financial index Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. √ Yes □No Reasons for retrospective restatements: Accounting policy change Changes of this period over same Same period of last year This period period of last year (%) Before adjustment After adjustment After adjustment Gross assets(Yuan) 16,977,369,289.08 16,295,910,774.45 16,295,910,774.45 4.18% Net assets attributable to the shareholders of the listed 9,588,602,867.94 9,586,701,904.06 9,586,701,904.06 0.02% company(Yuan) Between beginning Increase/decrease of the year to the Changed (%)over Reporting period over the same period end of the report end of prev. year of last year(%) period Operating revenue (Yuan) 796,831,081.45 -6.34% 2,280,504,326.66 -4.45% 2 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Net profit attributable to the shareholders of the listed 371,244,455.76 -15.88% 1,107,730,568.06 -9.23% company(Yuan) Net profit after deducting of non-recurring gain/loss 372,502,498.79 -12.80% 1,097,541,533.87 -7.00% attributable to the shareholders of listed company(Yuan) Cash flow generated by business -- -- 1,634,783,603.99 13.60% operation, net(Yuan) Basic earning per 0.18 -14.29% 0.53 -8.62% share(RMB/Share) Diluted gains per 0.18 -14.29% 0.53 -8.62% share(Yuan/Share) Weighted average income/asset 3.95% -0.96% 11.48% -2.02% ratio(%) The reasons for the change of Accounting Policy and the Correction of Accounting errors On April 30, 2019, the Notice of the Ministry of Finance on Revising and Issuing the Format of Financial Statements of General Enterprises (No. 6 Finance and Accounting [2019]) issued by the Ministry of Finance adjusts the format of financial statements of enterprises accordingly, and regulates that the detailed items of "management expenses" and "R&D expenses" should be separated from the items of "management expenses" in the profit statement; it also indicates that the actual government subsidies received should be listed in the item "cash received from other business activities". In response to such change of accounting policy, the Company adopts the retroactive adjustment method to retroactively adjust the items reported in the financial statements from January to September in 2018. Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB Amount (Year-beginning to Items the end of the report Notes period.) Mainly due to the transfer of in tellectual property income relat Non-current asset disposal gain/loss(including the write-off part 10,469,562.85 ed to“Blue Channel”by Guan for which assets impairment provision is made) gdong Expressway Technology Investment Co., Ltd. Govemment subsidies recognized in current gain and loss(excluding those closely related to the Company’s business 1,146,092.93 and granted under the state’s policies) Other non-business income and expenditures other than the -84,324.89 3 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount (Year-beginning to Items the end of the report Notes period.) above Less: Amount of influence of income tax 1,771,748.41 Amount of influence of minority interests(after tax) -429,451.71 Total 10,189,034.19 -- Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item. □ Applicable √Not applicable None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders with the voting Total number of common 56,063 power recovered at the end 0 shareholders at the period-end of the reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing tradable shares Shareholder Properties of Share Quantity with Status of the name shareholder proportion % Quantity Conditional shares held Guangdong Communicatio State-owned 24.56% 513,412,507 410,032,765 n Group Co., legal person Ltd. Guangdong Highway State-owned 22.30% 466,325,020 Construction legal person Co., Ltd, Yadong Fuxing Domestic non 9.68% 202,429,149 Yalian State-own 4 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Investment Co., ed Ltd. Legal person Tibet Yingyue Investment State-owned 4.84% 101,214,574 Management legal person Co., Ltd. Guangdong State-owned Expressway 2.53% 52,937,491 19,582,228 legal person Co., Ltd. Guangfa State-owned Securities Co., 1.45% 30,364,372 legal person Ltd. China Life Insurance Co., Ltd.-Dividend -Personal Other 1.26% 26,372,664 dividend -005L-FH002 Shen China Life Insurance Co., Ltd.- Traditional- Other 1.17% 24,436,318 Common insurance products-005L- CT001Shen Agricultural Bank of China -Jingshun Great Wall Energy Other 0.95% 19,909,303 Infrastructure Mixed Securities Investment Fund Domestic Feng Wuchu natural person 0.94% 19,664,788 shares Shares held by the Top 10 Shareholders of Non-restricted shares 5 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Share type Shareholders’ Names Number of the non-restricted shares held Share type Quantity Guangdong Highway RMB Common 466,325,020 466,325,020 Construction Co., Ltd, shares Yadong Fuxing Yalian Investment RMB Common 202,429,149 202,429,149 Co., Ltd. shares Guangdong Communication RMB Common 103,379,742 103,379,742 Group Co., Ltd. shares Tibet Yingyue Investment RMB Common 101,214,574 101,214,574 Management Co., Ltd. shares RMB Common Guangdong Expressway Co., Ltd. 33,355,263 33,355,263 shares RMB Common Guangfa Securities Co., Ltd. 30,364,372 30,364,372 shares China Life Insurance Co., Ltd.- RMB Common Dividend -Personal dividend 26,372,664 26,372,664 shares -005L-FH002 Shen China Life Insurance Co., Ltd.- RMB Common Traditional-Common insurance 24,436,318 24,436,318 shares products-005L-CT001Shen Agricultural Bank of China- Jingshun Great Wall Energy RMB Common 19,909,303 19,909,303 Infrastructure Mixed Securities shares Investment Fund RMB Common 17,564,325 shares Foreign shares Feng Wuchu 19,664,788 placed in 2,100,463 domestic exchange Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Explanation on associated Highway Construction Co., Ltd.and Guangdong Expressway Co., Ltd. It is unknown relationship or concerted action of whether there is relationship between other shareholders and whether they are persons the above shareholders taking concerted action specified in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed Companies. Participation of top 10 unconditional common share Nil shareholders in securities margin trading (if any) Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a 6 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 7 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 III Significant Events I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes √ Applicable □ Not applicable (I)Items of balance sheet as compared with the same period of the previous year 1.Advance payment increased by 15.81 million yuan and 826.56% over the beginning of the year, Mainly due to the prepayment cancelation of the provincial toll station project payment by Guangdong Expressway Technology Investment Co., Ltd. 2.Dividend receivable increased by 9.38 million yuan and 778.41% over the beginning of the year, Mainly due to the newly added cash dividends receivable of Ganzhou Kangda Expressway Co., Ltd in this reporting period. 3.Other non-current assets increased by 38.98 million yuan and 39.06% over the beginning of the year, Mainly due to the increase in the amount of deductable input taxes and the prepaid project payment of Sanbao to Shuikou section of Fokai Expressway. 4. Item received in advance increased by 5.92 million yuan and 49.19% over the beginning of the year, Mainly due to the procurement payment of the electronic toll collection system (ETC) received in advance by Guangdong Expressway Technology Investment Co., Ltd. 5.Interest payable increased by 16.36 million yuan and 182.31% over the beginning of the year, Mainly due to the increase in interest on the medium-term notes accrued by the Company ; Other account payable increased by 127.54 million yuan and 77.25% over the beginning of the year, Mainly due to the increase in one-year entrusted loans borrowed by the Company from Guangdong Guanghui Expressway Co., Ltd. 6. Non-current liabilities due 1 year decreased by1819.13 million yuan and 72.81% over the beginning of the year, Mainly due to the comprehensive impact of the Company's repayment of maturity loans and the long-term borrowings reclassified to the subject. 7.Long-term borrowing increased by 1746.82 million yuan and 58.56% over the beginning of the year, Mainly due to the combined impact by the Company's new loans, advanced repayment of loans and the reclassified into non-current liabilities due within one year. 8.Bonds payable increased by 678.01 million yuan over the beginning of the year, Mainly due to the book value of the 5-year medium-term notes issued by the Company with a face value of 680 million yuan as determined by the effective interest method. (II) Items of income statement as compared with the same period of the previous year 1.Operating income decreased by RMB 106.13 million and 4.45 % year on year, Mainly due to the following factors: The main line of Foshan First Ring Road, Yunzhan Expressway and Gao'en Expressway are open to traffic, and the traffic flow of the Fokai Expressway is diverted, which reduces the toll revenue of Fokai Expressway; affected by the comprehensive impact of the restriction on the passage of more than 40-seats buses, the traffic flow diverted due to the opening of the Nansha Bridge and the first phase of the Fanguan Expressway, the toll revenue of the Beijing-Zhuhai Expressway Guangzhu Section decreased; due to the natural increase in traffic volume and the traffic volume increase caused by the closure of some sections of Foshan First Ring Road for reconstruction, the Guangfo Expressway toll revenue increased slightly. 2.R & D expenses decreased by RMB 3.03 million and 100% year on year, Mainly due to the company did not have R&D expenditures this year. 3.The Assets disposal income decreased by 53.24 million yuan and 80.22% year on year,Mainly due to the comprehensive impact of the disposal income of the 4.213 km expressway asset repurchased by the Zhuhai 8 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 High-tech Zone Management Committee recognized by Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd during the same period last year and the disposal income of the “Blue Channel” assets recognized in this period by Guangdong Expressway Technology Investment Co., Ltd. (III) Notes of main items of cash flow statement 1. Taxes paid Mainly due to calculate the income tax, value-added tax and its additional taxes and fees actually paid in the current period. The current period decreased by 349.85 million yuan and 53.01% year on year,Mainly due to in the same period last year, Guangdong Fokai Expressway Co., Ltd (deregistered) paid the assessed value-added income tax, and there was no such situation in the current period. 2.Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets decreased by 214.22 million yuan and 93.88% year on year, Mainly due to in the same period last year, Jingzhu Expressway Guangzhu Section Co., Ltd. received the compensation for the 4.213 km expressway asset of the Zhuhai section of the Guang'ao Expressway transferred from the Zhuhai High-tech Zone Management Committee. and there was no such situation in the current period. Guangdong Expressway Technology Investment Co., Ltd received the funds from the transfer of the related intellectual property assets group of the “Blue Channel”. 3. Cash received from borrowing increased by RMB 2497.70 million and 198.39% year on year, The reason was that the parent company's borrowing increased in the current period 4. Cash to repay debts increased by RMB1526.52 million and 102.62% year on year, The reason was that the parent company's borrowing increased in the current period II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. □ Applicable √ Not applicable Progress in the implementation of share repurchase □ Applicable √ Not applicable Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding □ Applicable √ Not applicable III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √ Not applicable The company has no commitments completed in period and those without completed till lend of the period from actual controller, shareholders, related parties, purchaser and companies. 9 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 IV. Investment in securities √ Applicable □Not applicable In RMB Purchase Securi Book value Changes in Sale Book value Stock Initial Mode of Cumulative fair amount Gain/loss of ty Security balance at the fair value of amount balance at the Accountin Source of Abbreviatio investmen accounting value changes in in the the reporting categ code beginning of the the this in the this end of the g items the shares n: t cost measurement equity this period ory reporting period period period reporting period period Dome Investmen stic China t in other and 517,560,8 601818 Everbright FVM 870,443,292.80 409,343,602.56 37,876,045.98 926,904,479.36 equity Self fund foreig 76.80 Bank instrumen n ts stocks 517,560,8 Total -- 870,443,292.80 0.00 409,343,602.56 0.00 0.00 37,876,045.98 926,904,479.36 -- -- 76.80 Disclosure date for the notice of July 22,2009 approval by the Board (If any) Disclosure date for the notice of approval by shareholders’ August 7,2009 Meeting (If any) 10 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 V. Entrusted Financial Management □ Applicable √Not applicable There is no Entrusted Financial Management during the report period. VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference √ Applicable □ Not applicable Reception time Way of reception Types of visitors Basic index 1. The main content of research:1. the daily operation; 2. the company's financial data July 9,2019 Onsite investigation Organization 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 financial data August 30,2019 By phone Organization analysis;3. development strategy; 4. analysis on the industry. 2.Primary data investigation: Public information company regularly reports VIII. External guarantee get out of line □ Applicable √Not applicable The Company has no external guarantee get out of the line in the Period IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period 11 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by:Guangdong Provincial Expressway Development Co., Ltd. September 30,2019 In RMB Items September 30,2019 December 31,2018 Current asset: Monetary fund 2,608,107,818.50 2,124,524,996.32 Settlement provision Outgoing call loan Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 94,364,130.30 91,076,995.07 Financing of receivables Prepayments 17,724,649.63 1,912,943.40 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 28,981,121.30 16,487,256.02 Including:Interest receivable Dividend receivable 10,589,003.82 1,205,472.90 Other receivable 18,392,117.48 15,281,783.12 Repurchasing of financial assets Inventories 110,142.49 81,017.91 Contract assets Assets held for sales Non-current asset due within 1 year 51,745.32 51,745.32 Other current asset 12 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items September 30,2019 December 31,2018 Total of current assets 2,749,339,607.54 2,234,134,954.04 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial assets 1,668,791,594.53 Other investment on bonds Expired investment in possess Long-term receivable Long term share equity investment 3,308,550,142.93 3,145,644,970.07 Other equity instruments investment 1,725,252,781.09 Other non-current financial assets Property investment 3,386,779.99 3,579,007.54 Fixed assets 7,736,561,699.25 7,600,046,319.91 Including:Fixed assets 7,736,550,560.39 7,600,046,319.91 Liquidation of fixed assets 11,138.86 Construction in progress 927,486,048.46 1,089,473,425.63 Including: Construction in 925,936,492.46 1,087,923,869.63 progress Engineering Materials 1,549,556.00 1,549,556.00 Production physical assets Oil & gas assets Use right assets Intangible assets 4,275,730.21 5,739,020.48 Development expenses Goodwill Long-germ expenses to be amortized 1,168,273.16 1,221,781.88 Deferred income tax asset 382,568,788.55 447,485,034.79 Other non-current asset 138,779,437.90 99,794,665.58 Total of non-current assets 14,228,029,681.54 14,061,775,820.41 Total of assets 16,977,369,289.08 16,295,910,774.45 Current liabilities Short-term loans Loan from Central Bank 13 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items September 30,2019 December 31,2018 Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable Account payable 175,782,922.78 203,779,190.74 Advance receipts 17,962,010.45 12,039,708.01 Contract Liabilities Selling of repurchased financial assets Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 13,904,082.42 13,122,437.17 Tax payable 108,133,060.11 104,198,746.06 Other account payable 337,976,604.89 191,254,464.84 Including:Interest payable 25,328,104.93 8,971,576.57 Dividend payable 20,020,119.31 17,191,142.23 Other account payable 292,628,380.65 165,091,746.04 Fees and commissions payable Reinsurance fee payable Liabilities held for sales Non-current liability due within 1 679,355,000.00 2,498,480,000.00 year Other current liability Total of current liability 1,333,113,680.65 3,022,874,546.82 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 4,729,862,500.00 2,983,040,000.00 Bond payable 678,013,637.73 Including:preferred stock Sustainable debt 14 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items September 30,2019 December 31,2018 Lease liability Long-term payable 39,625,983.68 38,022,210.11 Including:Long-term payable 39,625,983.68 38,022,210.11 Special payable Long-term remuneration payable to staff Expected liabilities Deferred income Deferred income tax liability 205,807,094.55 205,672,389.59 Other non-current liabilities Total non-current liabilities 5,653,309,215.96 3,226,734,599.70 Total of liability 6,986,422,896.61 6,249,609,146.52 Owners’ equity Share capital 2,090,806,126.00 2,090,806,126.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 2,562,570,465.31 2,536,774,965.31 Less:Shares in stock Other comprehensive income 299,870,466.92 245,109,114.81 Special reserve Surplus reserves 775,402,561.35 775,402,561.35 Common risk provision Retained profit 3,859,953,248.36 3,938,609,136.59 Total of owner’s equity belong to the 9,588,602,867.94 9,586,701,904.06 parent company Minority shareholders’ equity 402,343,524.53 459,599,723.87 Total of owners’ equity 9,990,946,392.47 10,046,301,627.93 Total of liabilities and owners’ equity 16,977,369,289.08 16,295,910,774.45 Legal Representative:Zheng Renfa General Manager: Wang Chunhua Person-in-charge of the accounting work:Fang Zhi 15 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Person-in -charge of the accounting organ:Zhou Fang 16 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 2.Parent Company Balance Sheet In RMB Items September 30,2019 December 31,2018 Current asset: Monetary fund 2,541,791,378.47 2,096,597,568.04 Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 18,899,568.06 18,405,847.15 Financing of receivables Prepayments 15,354,534.88 1,532,057.82 Other account receivable 64,704,913.38 9,323,782.66 Including:Interest receivable 47,999,930.18 1,880,148.12 Dividend receivable 10,589,003.82 1,205,472.90 Other receivable 6,115,979.38 6,238,161.64 Inventories Contract assets Assets held for sales Non-current asset due within 1 year 100,000,000.00 100,000,000.00 Other current asset Total of current assets 2,740,750,394.79 2,225,859,255.67 Non-current assets: Debt investment 687,903,684.98 Available for sale of financial assets 1,668,791,594.53 Other investment on bonds Expired investment in possess Long-term receivable Long term share equity investment 4,842,215,151.74 4,679,309,978.88 Other equity instruments investment 1,725,252,781.09 Other non-current financial assets Property investment 3,134,641.74 3,326,869.29 17 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items September 30,2019 December 31,2018 Fixed assets 5,579,284,393.38 5,292,898,635.00 Including:Fixed assets 5,579,284,393.38 5,292,898,635.00 Liquidation of fixed assets Construction in progress 917,225,296.18 1,060,230,773.10 Including: Construction in progress 917,225,296.18 1,060,230,773.10 Engineering material Production physical assets Oil & gas assets Use right assets Intangible assets 1,311,756.15 1,741,277.53 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 382,463,329.68 447,328,530.77 Other non-current asset 97,761,670.41 790,720,727.48 Total of non-current assets 14,236,552,705.35 13,944,348,386.58 Total of assets 16,977,303,100.14 16,170,207,642.25 Current liabilities Short-term loans Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable Account payable 137,975,484.46 124,833,335.72 Advance receipts Contract Liabilities Employees’ wage payable 5,291,187.31 5,669,203.37 Tax payable 7,890,788.11 10,297,144.52 Other account payable 296,570,159.17 142,457,135.79 Including:Interest payable 24,809,482.80 8,373,096.36 Dividend payable 20,020,119.31 17,191,142.23 Other account payable 251,740,557.06 116,892,897.20 18 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items September 30,2019 December 31,2018 Liabilities held for sales Non-current liability due within 1 628,685,000.00 2,327,180,000.00 year Other current liability 848,827,738.16 977,236,252.44 Total of current liability 1,925,240,357.21 3,587,673,071.84 Non-current liabilities: Long-term loan 4,333,167,500.00 2,731,990,000.00 Bond payable 678,013,637.73 Including:preferred stock Sustainable debt Lease liability Long-term payable 39,625,983.68 38,022,210.11 Including:Long-term payable 39,625,983.68 38,022,210.11 Special payable Long-term remuneration payable to staff Expected liabilities Deferred income Deferred income tax liability 102,335,900.64 88,220,604.00 Other non-current liabilities Total non-current liabilities 5,153,143,022.05 2,858,232,814.11 Total of liability 7,078,383,379.26 6,445,905,885.95 Owners’ equity Share capital 2,090,806,126.00 2,090,806,126.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 2,974,458,696.93 2,948,663,196.93 Less:Shares in stock Other comprehensive income 299,870,466.92 245,109,114.81 Special reserve Surplus reserves 759,558,277.70 759,558,277.70 Retained profit 3,774,226,153.33 3,680,165,040.86 Total of owners’ equity 9,898,919,720.88 9,724,301,756.30 19 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items September 30,2019 December 31,2018 Total of liabilities and owners’ equity 16,977,303,100.14 16,170,207,642.25 Legal Representative:Zheng Renfa General Manager: Wang Chunhua Person-in-charge of the accounting work:Fang Zhi Person-in -charge of the accounting organ:Zhou Fang 3.Consolidated Income statement of the Report period In RMB Items Amount in this period Amount in last period I. Turnover 796,831,081.45 850,769,743.92 Including: Operating income 796,831,081.45 850,769,743.92 Interest income Insurance fee earned Fee and commission received II. Total operating costs 408,683,513.05 376,040,471.71 Including :Operating costs 310,517,119.58 283,488,989.77 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Appropriation of deposit for duty, net Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 3,696,459.38 3,887,775.99 Sales expense Administrative expense 40,415,600.33 32,160,291.46 R & D expense 541,264.57 Financial expenses 54,054,333.76 55,962,149.92 Including :Interest expense 58,646,545.15 59,606,588.17 Interest income 5,500,733.79 4,644,969.74 Add:Other income 725,865.31 194,598.16 20 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period Investment gain(“-”for loss) 139,449,983.30 134,304,872.05 Including: investment gains from 139,066,452.38 134,304,872.05 affiliates Financial assets measured at amortized cost cease to be recognized as income Gains from currency exchange Net exposure hedging income Changing income of fair value Credit impairment loss Impairment loss of assets 1,815,828.92 Assets disposal income 21,509,712.51 III. Operating profit(“-”for loss) 528,323,417.01 632,554,283.85 Add :Non-operating income 1,237,352.91 571,258.42 Less: Non-operating expenses 485,161.05 137,992.92 IV. Total profit(“-”for loss) 529,075,608.87 632,987,549.35 Less:Income tax expenses 98,800,338.73 123,881,985.59 V. Net profit 430,275,270.14 509,105,563.76 (I) Classification by business continuity 1.Net continuing operating profit 430,275,270.14 509,105,563.76 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners 371,244,455.76 441,303,002.76 of parent company 2.Minority shareholders’ equity 59,030,814.38 67,802,561.00 VI. Net after-tax of other 24,758,918.08 42,627,645.56 comprehensive income Net of profit of other comprehensive in 24,758,918.08 42,627,645.56 come attributable to owners of the pare nt company. (I)Other comprehensive income items that will not be reclassified into 22,937,357.04 gains/losses in the subsequent accounting period 21 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under t he equity method investee can not be re classified into profit or loss. 3. Changes in the fair value of 22,937,357.04 investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will 1,821,561.04 42,627,645.56 be reclassified into profit or loss. 1.Other comprehensive income under t 1,821,561.04 -1,482,656.44 he equity method investee can be reclas sified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair 44,110,302.00 value available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassi fied to gains and losses of available for sale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency fina ncial statements 9.Other Net of profit of other comprehensive in come attributable to Minority 22 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period shareholders’ equity VII. Total comprehensive income 455,034,188.22 551,733,209.32 Total comprehensive income attributable to the owner of the parent 396,003,373.84 483,930,648.32 company Total comprehensive income 59,030,814.38 67,802,561.00 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.18 0.21 (II)Diluted earnings per share 0.18 0.21 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 the accounting work:Fang Zhi Person-in -charge of the accounting organ:Zhou Fang 23 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 4.Income statement of the Parent Company of the Report period In RMB Items Amount in this period Amount in last period I. Revenue 342,418,541.44 380,022,328.89 Including :Operating costs 198,429,214.26 170,355,701.76 Business tax and surcharge 2,004,169.87 2,323,857.60 Sales expense Administrative expense 24,497,934.85 18,325,889.09 R & D expense Financial expenses 49,775,101.80 51,345,142.50 Including:Interest expenses 55,249,291.52 55,947,515.48 Interest income 5,487,589.69 4,614,243.77 Add:Other income 194,598.16 Investment gain(“-”for loss) 154,270,235.80 820,280,096.41 Including: investment gains from 139,066,452.38 134,304,872.05 affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value Credit impairment loss Impairment loss of assets 1,240,782.92 Assets disposal income II. Operating profit(“-”for loss) 221,982,356.46 959,387,215.43 Add :Non-operating income 953,148.06 182,721.87 Less:Non -operating expenses 357,431.46 184,874.00 III. Total profit(“-”for loss) 222,578,073.06 959,385,063.30 Less:Income tax expenses 20,782,022.44 34,466,045.99 IV. Net profit 201,796,050.62 924,919,017.31 1.Net continuing operating profit 201,796,050.62 924,919,017.31 2.Termination of operating net profit V. Net after-tax of other 24,758,918.08 42,627,645.56 comprehensive income (I)Other comprehensive income 22,937,357.04 24 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net ass ets 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. 3. Changes in the fair value of investments in other equity 22,937,357.04 instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that wil 1,821,561.04 42,627,645.56 l be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be re 1,821,561.04 -1,482,656.44 classified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3. Gains and losses from changes in fair 44,110,302.00 value available for sale financial asset s 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclas sified to gains and losses of available for sale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency fi 25 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period nancial statements 9.Other VI. Total comprehensive income 226,554,968.70 967,546,662.87 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 the accounting work:Fang Zhi Person-in -charge of the accounting organ:Zhou Fang 5. Consolidated Income statement between the beginning of the year and end of the report period In RMB Items Amount in this period Amount in last period I. Turnover 2,280,504,326.66 2,386,633,889.06 Including:Operating income 2,280,504,326.66 2,386,633,889.06 Interest income Insurance fee earned Commission charge and commission income II. Total operating costs 1,145,369,320.38 1,105,005,002.49 Including:Operating costs 860,140,930.07 817,225,556.12 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Appropriation of deposit for duty,net Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 10,253,483.35 10,740,890.98 Sales expense 26 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period Administrative expense 117,390,810.80 105,269,752.40 R & D expense 3,026,437.60 Financial expenses 157,584,096.16 168,742,365.39 Including:Interest expense 173,687,402.86 185,358,874.77 Interest income 21,262,441.48 22,721,206.04 Add:Other income 1,146,092.93 194,598.16 Investment gain(“-”for loss) 415,691,849.62 393,663,174.25 Including: investment gains from 376,779,450.47 351,082,029.39 affiliates Financial assets measured at amortized cost cease to be recognized as income Gains from currency exchange Net exposure hedging income Changing income of fair value Credit impairment loss Impairment loss of assets 1,873,719.27 Assets disposal income 13,129,094.29 66,369,899.18 III. Operating profit(“-”for loss) 1,565,102,043.12 1,743,730,277.43 Add :Non-operating income 1,972,712.67 3,258,819.00 Less: Non-operating expense 4,716,569.00 2,145,960.35 IV. Total profit(“-”for loss) 1,562,358,186.79 1,744,843,136.08 Less:Income tax expenses 288,497,112.78 337,103,704.44 V. Net profit 1,273,861,074.01 1,407,739,431.64 (I) Classification by business continuity 1.Net continuing operating profit 1,273,861,074.01 1,407,739,431.64 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners 1,107,730,568.06 1,220,305,249.74 of parent company 2.Minority shareholders’ equity 166,130,505.95 187,434,181.90 VI. Net after-tax of other 43,697,001.82 -31,167,903.99 comprehensive income 43,697,001.82 -31,167,903.99 27 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period Net of profit of other comprehensive in come attributable to owners of the pare nt company. (I)Other comprehensive income items that will not be reclassified into 42,345,889.92 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under t he equity method investee can not be re classified into profit or loss. 3. Changes in the fair value of 42,345,889.92 investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will 1,351,111.90 -31,167,903.99 be reclassified into profit or loss. 1.Other comprehensive income under t 1,351,111.90 -6,466,134.87 he equity method investee can be reclas sified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair -24,701,769.12 value available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassi fied to gains and losses of available for sale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 28 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period 8. Translation differences in currency fina ncial statements 9.Other Net of profit of other comprehensive in come attributable to Minority shareholders’ equity VII. Total comprehensive income 1,317,558,075.83 1,376,571,527.65 Total comprehensive income attributable to the owner of the parent 1,151,427,569.88 1,189,137,345.75 company Total comprehensive income 166,130,505.95 187,434,181.90 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.53 0.58 (II)Diluted earnings per share 0.53 0.58 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 the accounting work:Fang Zhi Person-in -charge of the accounting organ:Zhou Fang 6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I. Revenue 965,545,058.79 1,055,916,596.63 Including :Operating costs 527,619,888.78 480,666,389.08 Business tax and surcharge 5,490,462.24 5,817,633.50 Sales expense Administrative expense 71,493,995.49 60,558,892.12 R & D expense 29 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period Financial expenses 146,152,262.04 155,551,567.44 Including:Interest expenses 164,808,705.82 174,813,943.23 Interest income 21,139,717.95 22,420,977.88 Add:Other income 70,758.72 194,598.16 Investment gain(“-”for loss) 1,129,929,737.50 1,700,859,665.12 Including: investment gains from 376,779,450.47 351,082,029.39 affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value Credit impairment loss Impairment loss of assets 1,240,782.92 Assets disposal income 138,427.18 II. Operating profit(“-”for loss) 1,344,788,946.46 2,055,755,587.87 Add :Non-operating income 1,252,084.02 1,099,053.86 Less:Non -operating expenses 728,260.63 670,700.09 III. Total profit(“-”for loss) 1,345,312,769.85 2,056,183,941.64 Less:Income tax expenses 64,865,201.09 88,520,873.40 IV. Net profit 1,280,447,568.76 1,967,663,068.24 1.Net continuing operating profit 1,280,447,568.76 1,967,663,068.24 2.Termination of operating net profit V. Net after-tax of other 43,697,001.82 -31,167,903.99 comprehensive income (I)Other comprehensive income items that will not be reclassified into 42,345,889.92 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net ass ets 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. 3. Changes in the fair value of 42,345,889.92 30 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that wil 1,351,111.90 -31,167,903.99 l be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be re 1,351,111.90 -6,466,134.87 classified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3. Gains and losses from changes in fair -24,701,769.12 value available for sale financial asset s 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclas sified to gains and losses of available for sale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency fi nancial statements 9.Other VI. Total comprehensive income 1,324,144,570.58 1,936,495,164.25 VII. Earnings per share (I)Basic earnings per share (II)Diluted earnings per share Legal Representative:Zheng Renfa 31 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 General Manager: Wang Chunhua Person-in-charge of the accounting work:Fang Zhi Person-in -charge of the accounting organ:Zhou Fang 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 2,344,383,753.90 2,430,071,550.43 rending of services Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Cash received from interest, commission charge and commission Net increase of inter-bank fund received Net increase of repurchasing business Net cash received by agent in securities trading Tax returned Other cash received from business 44,239,546.43 59,374,799.43 operation Sub-total of cash inflow 2,388,623,300.33 2,489,446,349.86 Cash paid for purchasing of 175,258,111.40 142,035,365.51 merchandise and services 32 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period Net increase of client trade and advance Net increase of savings in central bank and brother company Cash paid for original contract claim Net increase for Outgoing call loan Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 216,220,155.68 200,483,302.33 Taxes paid 310,136,078.87 659,984,230.23 Other cash paid for business activities 52,225,350.39 47,815,642.37 Sub-total of cash outflow from 753,839,696.34 1,050,318,540.44 business activities Net cash generated from /used in 1,634,783,603.99 1,439,127,809.42 operating activities II. Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 270,260,694.55 246,194,475.70 Net cash retrieved from disposal of fixed assets, intangible assets, and 13,963,900.00 228,183,292.51 other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash 575,046.00 received Sub-total of cash inflow due to 284,224,594.55 474,952,814.21 investment activities Cash paid for construction of fixed assets, intangible assets and 587,874,379.29 509,914,271.20 other long-term assets Cash paid as investment Net increase of loan against pledge Net cash received from subsidiaries and other operational units 33 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period Other cash paid for investment activities Sub-total of cash outflow due to 587,874,379.29 509,914,271.20 investment activities Net cash flow generated by -303,649,784.74 -34,961,456.99 investment III.Cash flow generated by financing Cash received as investment Including: Cash received as investment from minor shareholders Cash received as loans 3,756,700,000.00 1,259,000,000.00 Other financing –related cash received Sub-total of cash inflow from 3,756,700,000.00 1,259,000,000.00 financing activities Cash to repay debts 3,014,002,500.00 1,487,480,000.00 Cash paid as dividend, profit, or 1,587,922,592.34 1,482,717,100.16 interests Including: Dividend and profit paid by subsidiaries to minor shareholders Other cash paid for financing 791,384.00 activities Sub-total of cash outflow due to 4,602,716,476.34 2,970,197,100.16 financing activities Net cash flow generated by financing -846,016,476.34 -1,711,197,100.16 IV. Influence of exchange rate alternation on cash and cash -1,534,520.73 -2,267,884.63 equivalents V.Net increase of cash and cash 483,582,822.18 -309,298,632.36 equivalents Add: balance of cash and cash 2,123,303,796.32 2,363,042,700.42 equivalents at the beginning of term VI ..Balance of cash and cash 2,606,886,618.50 2,053,744,068.06 equivalents at the end of term Legal Representative:Zheng Renfa General Manager: Wang Chunhua 34 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Person-in-charge of the accounting work:Fang Zhi Person-in -charge of the accounting organ:Zhou Fang 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 991,093,953.83 1,028,479,493.61 rending of services Tax returned Other cash received from business 40,435,161.13 347,679,931.37 operation Sub-total of cash inflow 1,031,529,114.96 1,376,159,424.98 Cash paid for purchasing of 56,811,641.02 59,667,495.43 merchandise and services Cash paid to staffs or paid for staffs 84,950,880.56 80,870,547.38 Taxes paid 36,317,795.45 38,553,095.96 Other cash paid for business activities 170,450,166.76 363,020,990.09 Sub-total of cash outflow from 348,530,483.79 542,112,128.86 business activities Net cash generated from /used in 682,998,631.17 834,047,296.12 operating activities II.Cash flow generated by investing Cash received from investment 5,000,000.00 retrieving Cash received as investment gains 941,023,466.69 877,415,742.21 Net cash retrieved from disposal of fixed assets, intangible assets, and 4,900.00 296,095.00 other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash 650,750.00 received Sub-total of cash inflow due to 946,028,366.69 878,362,587.21 investment activities Cash paid for construction of fixed 548,481,380.34 495,317,031.90 35 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period assets, intangible assets and other long-term assets Cash paid as investment Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 548,481,380.34 495,317,031.90 investment activities Net cash flow generated by 397,546,986.35 383,045,555.31 investment III. Cash flow generated by financing Cash received as investment Cash received as loans 3,290,000,000.00 600,000,000.00 Other financing –related ash received 291,000,000.00 Sub-total of cash inflow from 3,290,000,000.00 891,000,000.00 financing activities Cash to repay debts 2,572,317,500.00 614,100,000.00 Cash paid as dividend, profit, or 1,350,708,402.36 1,212,529,917.37 interests Other cash paid for financing 791,384.00 374,200,000.00 activities Sub-total of cash outflow due to 3,923,817,286.36 2,200,829,917.37 financing activities Net cash flow generated by financing -633,817,286.36 -1,309,829,917.37 IV. Influence of exchange rate alternation on cash and cash -1,534,520.73 -2,267,884.63 equivalents V.Net increase of cash and cash 445,193,810.43 -95,004,950.57 equivalents Add: balance of cash and cash 2,095,376,368.04 2,130,475,892.67 equivalents at the beginning of term VI ..Balance of cash and cash 2,540,570,178.47 2,035,470,942.10 equivalents at the end of term Legal Representative:Zheng Renfa 36 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 General Manager: Wang Chunhua Person-in-charge of the accounting work:Fang Zhi Person-in -charge of the accounting organ:Zhou Fang II Adjustments to the Financial Statements 1. Adjustment of the relevant items of the financial statements at the current year beginning according to the new standards for financial instruments, the new standards for revenues and the new standards for lease implemented commencing from year 2019 √ Applicable □ Not applicable Consolidated balance sheet In RMB Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Monetary fund 2,124,524,996.32 2,124,524,996.32 Settlement provision Outgoing call loan Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 91,076,995.07 91,076,995.07 Financing of receivables Prepayments 1,912,943.40 1,912,943.40 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable 37 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment Other account receivable 16,487,256.02 16,487,256.02 Including:Interest receivable Dividend receivable 1,205,472.90 1,205,472.90 Other receivable 15,281,783.12 15,281,783.12 Repurchasing of financial assets Inventories 81,017.91 81,017.91 Contract assets Assets held for sales Non-current asset due 51,745.32 51,745.32 within 1 year Other current asset Total of current assets 2,234,134,954.04 2,234,134,954.04 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of 1,668,791,594.53 -1,668,791,594.53 financial assets Other investment on bonds Expired investment in possess Long-term receivable Long term share equity 3,145,644,970.07 3,145,355,906.88 -289,063.19 investment Other equity instruments 1,668,791,594.53 1,668,791,594.53 investment Other non-current financial assets Property investment 3,579,007.54 3,579,007.54 Fixed assets 7,600,046,319.91 7,600,046,319.91 Including:Fixed assets 7,600,046,319.91 7,600,046,319.91 Liquidation of fixed assets Construction in 1,089,473,425.63 1,089,473,425.63 38 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment progress Including : Construction 1,087,923,869.63 1,087,923,869.63 in progress Engineering material 1,549,556.00 1,549,556.00 Production physical assets Oil & gas assets Use right assets Intangible assets 5,739,020.48 5,739,020.48 Development expenses Goodwill Long-germ expenses to be 1,221,781.88 1,221,781.88 amortized Deferred income tax asset 447,485,034.79 447,485,034.79 Other non-current asset 99,794,665.58 99,794,665.58 Total of non-current assets 14,061,775,820.41 14,061,486,757.22 -289,063.19 Total of assets 16,295,910,774.45 16,295,621,711.26 -289,063.19 Current liabilities Short-term loans Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable Account payable 203,779,190.74 203,779,190.74 Advance receipts 12,039,708.01 12,039,708.01 Contract liabilities Selling of repurchased financial assets 39 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 13,122,437.17 13,122,437.17 Tax payable 104,198,746.06 104,198,746.06 Other account payable 191,254,464.84 191,254,464.84 Including:Interest payable 8,971,576.57 8,971,576.57 Dividend payable 17,191,142.23 17,191,142.23 Other payable 165,091,746.04 165,091,746.04 Fees and commissions payable Reinsurance fee payable Liabilities held for sales Non-current liability due 2,498,480,000.00 2,498,480,000.00 within 1 year Other current liability Total of current liability 3,022,874,546.82 3,022,874,546.82 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 2,983,040,000.00 2,983,040,000.00 Bond payable Including:preferred stock Sustainable debt Lease liability Long-term payable 38,022,210.11 38,022,210.11 Including: 38,022,210.11 38,022,210.11 Long-term payable Special payable Long-term remuneration payable to staff 40 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment Expected liabilities Deferred income Deferred income tax 205,672,389.59 205,672,389.59 liability Other non-current liabilities Total non-current liabilities 3,226,734,599.70 3,226,734,599.70 Total of liability 6,249,609,146.52 6,249,609,146.52 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 2,536,774,965.31 Less:Shares in stock Other comprehensive 245,109,114.81 256,173,465.10 11,064,350.29 income Special reserve Surplus reserves 775,402,561.35 775,402,561.35 Common risk provision Retained profit 3,938,609,136.59 3,927,255,723.11 -11,353,413.48 Total of owner’s equity belong to the parent 9,586,701,904.06 9,586,412,840.87 -289,063.19 company Minority shareholders’ 459,599,723.87 459,599,723.87 equity Total of owners’ equity 10,046,301,627.93 10,046,012,564.74 -289,063.19 Total of liabilities and 16,295,910,774.45 16,295,621,711.26 -289,063.19 owners’ equity Adjustment statement Parent Company Balance Sheet In RMB 41 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Monetary fund 2,096,597,568.04 2,096,597,568.04 Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 18,405,847.15 18,405,847.15 Financing of receivables Prepayments 1,532,057.82 1,532,057.82 Other account receivable 9,323,782.66 9,323,782.66 Including:Interest 1,880,148.12 1,880,148.12 receivable Dividend receivable 1,205,472.90 1,205,472.90 Other receivable 6,238,161.64 6,238,161.64 Inventories Contract assets Assets held for sales Non-current asset due 100,000,000.00 100,000,000.00 within 1 year Other current asset Total of current assets 2,225,859,255.67 2,225,859,255.67 Non-current assets: Debt investment 692,903,684.98 692,903,684.98 Available for sale of 1,668,791,594.53 -1,668,791,594.53 financial assets Other investment on bonds Expired investment in possess Long-term receivable Long term share equity 4,679,309,978.88 4,679,020,915.69 -289,063.19 investment 42 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment Other equity instruments 1,668,791,594.53 1,668,791,594.53 investment Other non-current financial assets Property investment 3,326,869.29 3,326,869.29 Fixed assets 5,292,898,635.00 5,292,898,635.00 Including:Fixed assets 5,292,898,635.00 5,292,898,635.00 Liquidation of fixed assets Construction in progress 1,060,230,773.10 1,060,230,773.10 Including: Construction in 1,060,230,773.10 1,060,230,773.10 progress Engineering material Production physical assets Oil & gas assets Use right assets Intangible assets 1,741,277.53 1,741,277.53 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax 447,328,530.77 447,328,530.77 asset Other non-current asset 790,720,727.48 97,817,042.50 -692,903,684.98 Total of non-current assets 13,944,348,386.58 13,944,059,323.39 -289,063.19 Total of assets 16,170,207,642.25 16,169,918,579.06 -289,063.19 Current liabilities Short-term loans Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 43 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment Account payable 124,833,335.72 124,833,335.72 Advance receipts Contract Liabilities Employees’ wage payable 5,669,203.37 5,669,203.37 Tax payable 10,297,144.52 10,297,144.52 Other account payable 142,457,135.79 142,457,135.79 Including:Interest 8,373,096.36 8,373,096.36 payable Dividend payable 17,191,142.23 17,191,142.23 Other payable 116,892,897.20 116,892,897.20 Liabilities held for sales Non-current liability due 2,327,180,000.00 2,327,180,000.00 within 1 year Other current liability 977,236,252.44 977,236,252.44 Total of current liability 3,587,673,071.84 3,587,673,071.84 Non-current liabilities: Long-term loan 2,731,990,000.00 2,731,990,000.00 Bond payable Including:preferred stock Sustainable debt Lease liability Long-term payable 38,022,210.11 38,022,210.11 Including:Long-term 38,022,210.11 38,022,210.11 payable Special payable Long-term remuneration payable to staff Expected liabilities Deferred income Deferred income tax 88,220,604.00 88,220,604.00 liability Other non-current liabilities Total non-current liabilities 2,858,232,814.11 2,858,232,814.11 44 Guangdong Provincial Expressway Development Co., Ltd. The Third Quarterly Report 2019 Amount involved in the Items December 31,2018 January 1,2019 adjustment Total of liability 6,445,905,885.95 6,445,905,885.95 Owners’ equity Share capital 2,090,806,126.00 2,090,806,126.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 2,948,663,196.93 2,948,663,196.93 Less:Shares in stock Other comprehensive 245,109,114.81 256,173,465.10 11,064,350.29 income Special reserve Surplus reserves 759,558,277.70 759,558,277.70 Retained profit 3,680,165,040.86 3,668,811,627.38 -11,353,413.48 Total of owners’ equity 9,724,301,756.30 9,724,012,693.11 -289,063.19 Total of liabilities and 16,170,207,642.25 16,169,918,579.06 -289,063.19 owners’ equity Adjustment statement 2. Note to the retroactive adjustment of the previous comparative data according to the new standards for financial instruments and the new standards for lease implemented commencing from year 2019 □ Applicable √ Not applicable III. Auditor’ report Is the Third Quarterly Report be audited? □ Yes √No The Third Quarterly report is not audited. 45