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粤高速B:2021年年度报告(英文版)2022-03-16  

                        2021 Annual Report




          Guangdong Provincial Expressway Development Co., Ltd.




                           2021 Annual Report




                             March 2022




1
2021 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. Lu Ming, 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 CNY
5.70 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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2021 Annual Report




                                          Table of Contents




I.Important Notice, Table of contents and Definitions

II. Company Profile & Financial Highlights.

III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders

VIII. Situation of the Preferred Shares

IX. Corporate Bond

X. Financial Report




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2021 Annual Report


                                       Documents available for inspection

1. Accounting statements carried with personal signatures and seals of legal representative, General Manager,
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.




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2021 Annual Report




                                                        Definition


                Terms to be defined               Refers to                                Definition

    Reporting period, This year                   Refers to   January 1, 2021 to December 31, 2021

                                                              The annual report of the company was approved by the board of
    Reporting date                                Refers to
                                                              directors on 2021, that is March 15, 2022

    YOY                                           Refers to   Compared with 2020

    The Company /This Company                     Refers to   Guangdong Provincial Expressway Development Co.,Ltd.

    Communication Group                           Refers to   Guangdong Communication Group Co., Ltd.

    Provincial Expressway                         Refers to   Guangdong Provincial Freeway Co.,Ltd.

                                                              Guangdong Provincial Expressway Development Co.,Ltd.Fokai
    Fokai Company                                 Refers to
                                                              Branch

    Reconstruction and extension Project of the               Reconstruction and Expansion Project of Sanbao-Shuikou Section
                                                  Refers to
    South Section of Fokai Expressway                         of Fokai Expressway.

    Guangfo Company                               Refers to   Guangdong Guangfo Expressway Co., Ltd.

    Guangdong Expressway Capital                  Refers to   Yuegao Capital Investment (Guangzhou) Co., Ltd.

    Guangzhu East Company                         Refers to   Jingzhu Expressway Guangzhu Section Co., Ltd.

    Guanghui Company                              Refers to   Guangdong Guanghui Expressway Co., Ltd.




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2021 Annual Report




                                 II. Company Profile & Financial Highlights.

1.Company Profile


    Stock abbreviation:                  Expressway A, Expressway B        Stock code:                 000429,200429

    Stock exchange for listing           Shenzhen Stock Exchange

    Name in Chinese                      广东省高速公路发展股份有限公司

    Abbreviation of Registered
                                         粤高速
    Company (if any)

    English name (If any)                Guangdong Provincial Expressway Development Co.Ltd.

    English abbreviation (If any)        GPED

    Legal Representative                 Zheng Renfa

    Registered address                   85 Baiyun Road, Guangzhou, Guangdong Province

    Postal code of the Registered
                                         510100
    Address

    Historical change of the             1992—1999,4/F,Dongjian Building,No.503,Dongfeng Road, Guangzhou;Since 1999, 85
    company's registered address         Baiyun Road, Guangzhou, Guangdong Province

                                         45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe Disrtict ,
    Office Address
                                         Guangzhou

    Postal code of the office address    510623

    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

    Contact          46/F, Litong Plaza, No.32, Zhujiang East Road,          45/F, Litong Plaza, No.32, Zhujiang East Road,
    address          Zhujiang New City, Tianhe District , Guangzhou          Zhujiang New City, Tianhe District , 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                Securities Times, China Securities, Shanghai Securities Daily and
    information disclosure                                Hongkong Commercial Daily.



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2021 Annual Report


    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


4.Changes in Registration


    Organization Code                                 91440000190352102M

    Changes in principal business activities since
                                                      No change
    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
    Changes is the controlling shareholder in the
                                                      Company (now renamed as "Guangdong Provincial Expressway Co., Ltd.") for
    past (is any)
                                                      management were transferred to 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                     Yong Tuo Cerified Public Accountants(Special General Partnership)

    Office address:                     13/F, 2 Building, No.1 North Street , Guandongdian, Chaoyang District, Beijing

    Names of the Certified Public
                                         Shi Shaoyu,Huang Zhiyan
    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



                 Name                          Office address                Name of sponsor           Consitent supervision period

                                     27-28/F, 2 Black,No1. Guomao
    China International Capital      Building, Jianguomen Wai
                                                                        Xie Yi ,Long Hai               2020-2021
    Corporation Limited              Street, Chaoyang District,
                                     Beijing




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2021 Annual Report
6.Summary of Accounting data and Financial index

Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No


                                                                                                               Changes of this period over
                                                                                  2020                                                                       2019
                                               2021                                                           same period of Last year(%)

                                                              Before adjustment          After adjustment           After adjustment         Before adjustment      After adjustment

Operating income(Yuan)                   5,288,057,677.93    3,790,348,876.26            3,790,348,876.26             39.51%                3,057,935,584.43      4,999,016,766.74

Net profit attributable to the
shareholders of the listed company         1,700,406,981.99      867,842,774.78             867,842,774.78              95.93%                1,258,628,101.71      1,469,187,067.83
(Yuan)

Net profit after deducting of
non-recurring gain/loss attributable to
                                           1,693,091,639.41      704,821,643.20             704,821,643.20              140.22%               1,249,576,930.75      1,249,579,043.32
the shareholders of listed company
(Yuan)

Cash flow generated by business
                                           3,669,744,721.16    2,636,187,241.05            2,636,187,241.05             39.21%                1,988,551,897.83      3,222,681,187.05
operation, net(Yuan)

Basic earning per share(Yuan/Share)                    0.81                0.42                        0.42             92.86%                            0.60                  0.70

Diluted gains per share(Yuan/Share)                    0.81                0.42                        0.42             92.86%                            0.60                  0.70

Weighted average ROE(%)                             20.11%               8.27%                       8.27%              11.84%                         13.09%                14.18%

                                                                            End of 2020                       Changed over last year(%)               End of 2019
                                            End of 2021
                                                              Before adjustment          After adjustment           After adjustment         Before adjustment      After adjustment

Gross assets(Yuan)                      18,875,766,799.31   19,748,578,658.11           19,748,578,658.11             -4.42%               17,674,545,340.78   20,666,939,285.90

Net assets attributable to shareholders
                                           8,982,437,985.17    7,933,136,499.11            7,933,136,499.11             13.23%                9,823,426,849.75   10,557,360,463.78
of the listed company(Yuan)

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2021 Annual Report
Retroactive adjustment or restatement of causes: Merger of enterprises under the same control

The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the last three fiscal years is negative, and the auditor's report
of the previous year shows that the Company’s going concern ability is uncertain.
□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.
□ Yes √No




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2021 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
None

(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.

□ Applicable √Not applicable

None

8.Main Financial Index by Quarters

                                                                                                                          In RMB

                                            First quarter         Second quarter         Third quarter          Fourth quarter

  Operating income                         1,257,975,487.27       1,230,499,182.54      1,485,357,499.71        1,314,225,508.41

  Net profit attributable to the
                                            399,100,166.26          449,760,184.38        545,389,653.71          306,156,977.64
  shareholders of the listed company

  Net profit after deducting of
  non-recurring gain/loss attributable
                                            395,414,595.12          447,328,563.52        537,138,406.69          313,210,074.08
  to the shareholders of listed
  company

  Net Cash flow generated by
                                            849,020,540.34          966,272,676.91      1,072,587,838.82          781,863,665.09
  business operation




9.Items and amount of non-current gains and losses

√Applicable □Not applicable
                                                                                                                          In RMB

                              Items                                Amount (2021)     Amount (2020)      Amount (2019)    Notes

Non-current asset disposal gain/loss(including the write-off
                                                                     4,350,214.54     -8,261,533.18        7,607,268.21
part for which assets impairment provision is made)

Government subsidies recognized in current gain and
loss(excluding those closely related to the Company’s business     16,348,006.07      8,359,291.82           87,937.00
and granted under the state’s policies)

Current net gains and losses occurred from period-begin to                           546,213,524.55      701,856,178.51



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2021 Annual Report


                               Items                                Amount (2021)    Amount (2020)   Amount (2019)    Notes

combination day by subsidiaries resulting from business
combination under common control

Net amount of non-operating income and expense except the
                                                                     -5,840,734.56    -1,069,827.30    -1,393,149.65
aforesaid items

Other non-recurring Gains/loss items                                  1,252,349.09       974,321.89     1,652,603.05

Less :Influenced amount of income tax                                 4,027,139.54         2,214.32     1,130,270.54

     Influenced amount of minor shareholders’ equity (after tax)     4,767,353.02   383,192,431.88   489,072,542.07

Total                                                                 7,315,342.58   163,021,131.58   219,608,024.51    --

Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
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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2021 Annual Report




                            III. Management Discussion & Analysis

I. Industry information of the Company during the reporting period

    The Company's main business is the investment, construction, charging and maintenance management of toll
highways and bridges, which shall be classified into the highway management and maintenance industry.
    Highway industry is the basic and leading service industry of national economy, which can rationally allocate
relevant resources, improve the quality and efficiency of economic operation, and play a leading role in the
transportation industry. As an important part of the highway industry, the expressway is an important national
resource, which is characterized by high driving speed, large traffic capacity, low transportation cost and safe
driving, and plays an important role in promoting national economic growth, improving people's live quality and
safeguarding national security.
    With the basic penetration of the "ten-vertical and ten-horizontal" comprehensive transportation corridor and
the basic completion of the "71118" national expressway network planning, China's expressway network has been
continuously extended, with significantly increased industry development. According to the statistical data of the
2020 Statistical Bulletin on Development of Transportation Industry issued by the Ministry of Transport, by the
end of 2020, the total mileage of expressways in China has reached 161,000 kilometers, ranking first in the world,
with an increase of 11,400 kilometers, and a year-on-year increase of 7.62%. With China's economic development
stepping into a new normal, the national economy is constantly growing, the strategies such as coordinated
development of Beijing-Tianjin-Hebei, regional integration of the Yangtze River Delta, development of the
Yangtze River Economic Belt, and Guangdong-Hong Kong-Macao Greater Bay Area construction are further
advanced, the whole society's demand for supporting services of expressways is expected to increase continuously,
and China's expressway industry still witnesses a large development potential in the future.
    As an important infrastructure industry for the development of national economy, most of the expressway
transportation demands are rigid demands, which are less affected by macroeconomic fluctuations and less
cyclical. As the operating income of expressway enterprises is mainly in cash, and the cash flow is abundant, it
ensures the stability and security of expressway industry operation and finance. When the economy is booming,
the rapid growth of traffic can drive the development of the industry to a certain extent; during the period of
economic adjustment, the expressway industry can better resist the market impact caused by macroeconomic
changes with its unique rigid demands.

II.Main Business the Company is Engaged in During the Report Period

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,Jingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion 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 Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology
Petty Loan Co., Ltd., Guangdong Guangle Expressway Co.,Ltd., Guoyuan Securities Co., Ltd, Hunan Lianzhi

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2021 Annual Report


Technology Co., Ltd.and SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.

As of the end of the reporting period, the company’s share-controlled expressway is 306.78 km, and the
share-participation expressway is 295.88 km.
III. Analysis On core Competitiveness
      The toll revenue of expressway industry mainly depends on the regional economic development. The
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”, Jingzhu Expressway Guangzhu Section is a fast and convenient expressway, Guanghui
Expressway is an important section of the national key highway-the 15th Hengshanwei to Yunnan Qingshuihe
highway,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.

IV. Main business analysis

Ⅰ.General

    The year of 2021 is the first year of the 14th Five-Year Development Plan, during which the Company
focuses on key tasks, promotes the normalization of epidemic prevention and control, operation and production as
a whole, successfully completes its annual work objectives, and maintains and increases the value of state-owned
assets by 120.04%.
    (1)It has promoted comprehensively deepening of the reform of state-owned enterprises. The Company
will carefully combine the world-class management promotion action with the three-year action of state-owned
enterprise reform, comprehensively deepen the state-owned enterprise reform, and actively well ensure related
work. By the end of December 2021, most tasks had been completed, exceeding the target requirement.
    (2)The verification of the charging period for the reconstruction and expansion of the south section of
Foshan-Kaiping Expressway has been completed. In June 2021, the reconstruction and expansion project of
Sanbao-Shuikou section of Foshan-Kaiping Expressway was approved by Guangdong Provincial People's
Government, and the approved charging period of the project is 24.6011 years, which laid a solid foundation for
the Company's sustainable development.
     (3)The preliminary work of five-expressway reconstruction and expansion has been carried out: it has
successfully completed the investment decision-making procedure of the reconstruction and expansion project of
Jiangmen-Zhongshan Expressway, a provincial key construction project of the Company's capital increase. It has
gone through the formalities of shareholders' capital contribution in time according to the progress of the project
to ensure the demand of reconstruction and expansion project construction funds; continued to follow up the
preliminary research work of reconstruction and expansion project in Guangdong-Zhaoqing, East
Guangzhou-Zhuhai and Guangzhou-Huizhou expressways; and assisted in the regulation and estimation, period
audit, investment and financing plan preparation of the project of Huizhou-Shenzhen Expressway reconstruction
and expansion.
     (4)It prepares the "14th Five-Year Plan" in high quality, clarifies the Company as the capital operation
platform that focuses on serving the transformation and upgrading of the expressway transportation industry in


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2021 Annual Report


Guangdong Province, with cultivation and integration of new industries such as road industry and smart
transportation industry in Guangdong Province as the development direction, continuously expands and upgrades
the scale of the main expressway business; improves industrial basic ability and profitability; cultivates the ability
of independent innovation; actively lays out the smart transportation industry; carries out intelligent upgrading
around the expressway; adheres to the two-wheel drive of scientific and technological transformation and capital
operation, and continues to promote the capital operation of listed companies in combination with provincial
transportation planning, so as to make the Company better, stronger and bigger.
    (5)It participates in the development strategy of green power transportation in State Power Investment
Corporation (SPIC), and builds a technical service platform for heavy truck with replaceable battery by investing
in SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd. through its wholly-owned subsidiary Yuegao Capital.

     In 2020, the company's revenue was greatly reduced by the New Coronavirus epidemic.. In 2021, the number
of toll days the company participated in the holding expressway increased YOY. The toll revenue of each
expressway increased of the Company are as follows:
                          Volume of vehicle traffic in      Increase     Toll income in 2021    Increase /Decrease(%)
                        2021(Ten thousands vehicles)    /Decrease(%)   (Ten thousands)
Guangfo Expressway                             7,928.27      9.06%                  44,885.46         36.14%
Fokai Expressway                               8,574.49     11.09%                 145,437.73         51.26%
Jingzhu Expressway                             7,165.82     15.77%                 114,088.10         45.82%
Guangzhu East Section
Guanghui Expressway                            8,295.24     10.79%                 212,619.92         33.53%

Huiyan Expressway                              5,175.24     18.98%                  24,037.38         29.28%

Guangzhao Expressway                           3,813.00     31.84%                  53,568.64         22.97%

Jiangzhong Expressway                          6,710.69     10.09%                  47,663.06         40.74%

Kangda Expressway                                145.57     -1.52%                  31,287.88         47.65%
Gankang Expressway                               460.81      4.62%                  19,905.23         55.10%
Guangle Expressway                             3,926.49     13.24%                 335,608.32         35.10%
On the whole, the overall trend of traffic flow and toll income of each holding section is good. Compared with the
data before the outbreak, the main ones that have achieved significant growth are Fokai Expressway and
Guanghui expressway, among which:
(1)Foshan-Kaiping Expressway is affected by the fully opening to traffic of Kaiping–Yangjiang Expressway,
which is connected with it. While leading to improved traffic capacity of the main road surface and traffic
backflow, it also increases new traffic flows, and greatly increases toll income.
(2)Due to the opening of Huadu-Dongguan Expressway on November 1, 2020 and Heyuan-Huizhou-Dongguan
Expressway on December 28, 2020, the traffic flow is attracted to Guanghui expressway, forming a new traffic
flow.

2. Revenue and cost

(1)Component of Business Income
                                                                                                               In RMB

                                      2021                                  2020                    Increase /decrease


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2021 Annual Report


                           Amount              Proportion                Amount               Proportion

 Total operating
                       5,288,057,677.93                100%       3,790,348,876.26                    100%                39.51%
 revenue

 Industry

 Highway
                       5,170,312,170.97               97.77%      3,665,926,709.10                  96.72%                41.04%
 transportations

 Other                   117,745,506.96                2.23%        124,422,167.16                   3.28%                -5.37%

 Product

 Highway
                       5,170,312,170.97               97.77%      3,665,926,709.10                  96.72%                41.04%
 transportations

 Other                   117,745,506.96                2.23%        124,422,167.16                   3.28%                -5.37%

 Area

 Guangfo
                         448,854,642.12                8.49%        329,710,947.81                   8.70%                36.14%
 Expressway

 Fokai Expressway      1,454,377,306.80               27.50%        961,484,310.59                  25.37%                51.26%

 Jingzhu
 Expressway            1,140,880,993.81               21.57%        782,378,756.64                  20.64%                45.82%
 Guangzhu Section

 Guanghui
                       2,126,199,228.24               40.21%      1,592,352,694.06                  42.01%                33.53%
 Expressway

 Other                   117,745,506.96                2.23%        124,422,167.16                   3.28%                -5.37%

 Sub-sales model

 Highway
                       5,170,312,170.97               97.77%      3,665,926,709.10                  96.72%                41.04%
 transportations

 Other                   117,745,506.96                2.23%        124,422,167.16                   3.28%                -5.37%

(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
                                                                                                                          In RMB

                                                                                                Increase/decrea   Increase/decrea
                                                                            Increase/decrea
                                                                                                se of business      se of gross
                                                               Gross       se of revenue in
                                                                                                 cost over the    profit rate over
                       Turnover           Operation cost       profit       the same period
                                                                                                same period of    the same period
                                                               rate(%)      of the previous
                                                                                                 previous year    of the previous
                                                                               year(%)
                                                                                                     (%)             year (%)

 Industry

 Highway
                     5,170,312,170.97     1,874,469,918.22     63.75%              41.04%              18.19%              7.01%
 transportations


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2021 Annual Report


                                                                                               Increase/decrea     Increase/decrea
                                                                            Increase/decrea
                                                                                                  se of business     se of gross
                                                                  Gross     se of revenue in
                                                                                                  cost over the    profit rate over
                         Turnover           Operation cost        profit    the same period
                                                                                               same period of      the same period
                                                                  rate(%)   of the previous
                                                                                                  previous year    of the previous
                                                                               year(%)
                                                                                                       (%)            year (%)

 Product

 Highway
                      5,170,312,170.97     1,874,469,918.22        63.75%           41.04%               18.19%             7.01%
 transportations

 Area

 Guangfo
                        448,854,642.12      145,962,137.59         67.48%           36.14%               29.41%             1.69%
 Expressway

 Fokai
                      1,454,377,306.80      714,045,421.17         50.90%           51.26%                9.78%            18.55%
 Expressway

 Jingzhu
 Expressway
                      1,140,880,993.81      370,994,383.00         67.48%           45.82%               32.55%             3.25%
 Guangzhu
 Section

 Guanghui
                      2,126,199,228.24      643,467,976.46         69.74%           33.53%               18.54%             3.83%
 Expressway

 Sub-sales model

 Highway
                      5,170,312,170.97     1,874,469,918.22        63.75%           41.04%               18.19%             7.01%
 transportations

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

                                                     2021                                  2020
 Industry                                                     Proportion                                              Increase
                                                                                                   Proportion in
 category                 Items                               in the                                                 /Decrease
                                            Amount                               Amount            the operating
                                                              operating                                                  (%)
                                                                                                   costs (%)
                                                              costs (%)

 Highway             Depreciation        1,257,315,758.33          65.16%   1,020,703,974.74             61.41%            23.18%


16
2021 Annual Report


 transportations     and Amortized

 Highway             Out of pocket
                                     617,154,159.89   31.99%    565,222,471.74   34.00%       9.19%
 transportations     expenses

 Other               Other            55,042,107.34   2.85%      76,297,249.65   4.59%       -27.86%

(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□ Yes √ No
(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




17
2021 Annual Report




3.Expenses

                                                                                                                                                          In RMB


                              2021           2020            Increase/Decrease(%)                                        Notes

 Administrative expenses   223,605,442.46   203,945,119.58                   9.64%

 Financial expenses        221,714,312.76   216,182,374.88                   2.56%

                                                                                     In 2021, the R&D investment has been increased, and new R&D projects have
                                                                                     been added, such as "Research on Bridge Safety Monitoring and Application
                                                                                     Based on Beidou System", "Application of Monitoring System for Operational
                                                                                     Safety Cluster of Jiujiang Bridge in Foshan-Kaiping Expressway Expansion",
 R & D expenses             13,270,938.73      404,303.70                3,182.42%
                                                                                     "All-weather Intelligent Monitoring and R&D Project for Key Road Sections of
                                                                                     Foshan-Kaiping Expressway", "Research on Traffic Guidance of Large Flow in
                                                                                     2021", "Traffic Simulation Platform", "Big Data Projection" and "Smart Party
                                                                                     Building Cloud Platform".




18
2021 Annual Report
4. Research and Development

√ Applicable   □ Not applicable
     Name of
                                                                                                                                            Expected impact on the future
  main R&D                        Project purpose                       Project progress                Goal to be achieved
                                                                                                                                            development of the Company
     project

 Research on
 Bridge
 Safety         Carry out real-time monitoring of structural
                                                                                           Form an intelligent monitoring and early
 Monitoring     mechanics indexes such as deflection, stress and                                                                       Realize the perception, digitization,
                                                                                           warning system of expressway bridges
 and            displacement, perceive and evaluate the            Completed                                                           networking and intelligence of the
                                                                                           with "all-factor perception, all-round
 Application    emergencies of expressway bridges quickly,                                                                             whole life cycle of bridges
                                                                                           service and all-service management"
 Based on       accurately and effectively
 Beidou
 System

 Research on
 Early
 Warning                                                                                                                               Realize the early warning of the accident
 and Safety                                                                                                                            may occur by ship colliding with the
                Carry out research and exploration on technical                            Develop early warning technology of ship
 Monitoring                                                                                                                            bridge, effectively prevent the
                research, equipment development and standard                               yaw prevention based on video image
 System for                                                        Completed                                                           occurrence of major catastrophic public
                formulation of active early warning measures for                           monitoring technology and radar
 Ship                                                                                                                                  safety accidents of bridge collapse, and
                bridge ship collision.                                                     technology
 Collision of                                                                                                                          ensure the safe and stable operation of
 Jiujiang                                                                                                                              the expressway.
 Extra-large
 Bridge

 All-weather    This project is the implementation of "Double                              Grasp the comprehensive road network        Improve the operational efficiency of
 Intelligent    Outline" and "New Infrastructure Guiding           Completed               data information in real time through the   expressways and the level of
 Monitoring     Opinions", which will provide important                                    digital and intelligent construction of     transportation safety, promote the

19
2021 Annual Report
     Name of
                                                                                                                                                   Expected impact on the future
  main R&D                       Project purpose                         Project progress                Goal to be achieved
                                                                                                                                                   development of the Company
     project

 and R&D       demonstration and reference for the intelligent                              existing facilities.                             demonstration and application of smart
 Project for   development of highway traffic, especially for                                                                                highways, and build up demonstration
 Key Road      intelligent development of expressways and                                                                                    sites for smart highways with “advanced
 Sections of   promotion of smart highway applications.                                                                                      technology, moderate cost, and
 Foshan-Kai                                                                                                                                  first-class level in China”.
 ping
 Expressway

               Realize the practicality, precision and automation
                                                                                            Realize the rapid perception and disposal
               of induced information, and gradually replace the                                                                             It can improve the coordination and
                                                                                            of road incidents through the construction
               current situation of traditional induced                                                                                      management efficiency of expressway
                                                                                            of road incident detection system; improve
               information, such as immobilization, slogan and                                                                               resources, speed up the accident
                                                                                            the intelligentization of variable
 Research on   manual release by using the built cloud-controlled                                                                            handling speed, and play an important
                                                                                            information sign terminal through the
 Traffic       big data all-in-one machine and intelligent                                                                                   role in reducing traffic delays and
                                                                    Completed               technical docking of intelligent flow
 Guidance of   publishing platform. Strengthen the road                                                                                      economic losses and casualties caused
                                                                                            control and intelligent publishing platform
 Large Flow    monitoring means of Guangzhou-Foshan                                                                                          by traffic accidents. It can wholly
                                                                                            gateway; and realize integrated display of
               Expressway by building a road incident detection                                                                              improve the management and control of
                                                                                            traffic status, visual perception, intelligent
               system, realize the active marking ability of                                                                                 road traffic and service level by the
                                                                                            flow control and other applications for
               high-speed sections, and improve the response and                                                                             owner.
                                                                                            large-screen visual display system.
               handling ability to road incidents.




20
2021 Annual Report
     Name of
                                                                                                                                                          Expected impact on the future
  main R&D                        Project purpose                             Project progress                      Goal to be achieved
                                                                                                                                                           development of the Company
     project

                                                                       Initially realize the off-line
                                                                       monitoring and analysis of
                                                                                                        Build a traffic simulation model of 50-100
                                                                       the traffic flow, speed,                                                      In the field of highway intelligent
               Realize off-line monitoring and analysis of                                              km for high-speed and surrounding roads
                                                                       occupancy rate and                                                            transformation and construction, the
               expressway traffic flow, speed, occupancy rate                                           based on the collected historical traffic
                                                                       congestion mileage of the                                                     simulation analysis system based on
               and congestion mileage through the initial                                               flow data and combined with the current
                                                                       expressway through the                                                        traffic flow characteristics can be
               construction by integrating multi-source data such                                       mainstream macro and micro traffic
 Traffic                                                               obtained (three-month)                                                        effectively combined with high-speed
               as expressway RSU data, toll station data and road                                       simulation software, and make the off-line
 Simulation                                                            expressway traffic data.                                                      monitoring, information release
               condition information. Realize the analysis and                                          quantitative evaluation and analysis of
 Platform                                                              Build a traffic simulation                                                    guidance, traffic management and other
               backtracking of high-speed traffic flow sources,                                         common emergency traffic organization
                                                                       model of 15.7 km for                                                          systems, and it has become an important
               customer groups, customer composition, traffic                                           schemes, so as to provide quantitative
                                                                       Guangzhou-Foshan                                                              technology for the Company's
               flow characteristics and traffic flow characteristics                                    decision-making basis for the feasibility
                                                                       Expressway. The software                                                      high-speed intelligent transformation
               of key holidays.                                                                         analysis of relevant traffic organization
                                                                       development and copyright                                                     business.
                                                                                                        management and guidance measures.
                                                                       application has been
                                                                       completed.

                                                                                                        Play an important role in improving the
                                                                                                        coordination and management efficiency of
               Build a large-screen visual display system to                                                                                         The multi-angle information display of
                                                                       All functions of the project     expressway resources, speeding up the
               realize the integrated display of traffic status,                                                                                     expressway information through big
 Big Data                                                              have been developed,             handling of accidents and reducing traffic
               visual perception, intelligent flow control and                                                                                       data projection screen is beneficial to the
 Projection                                                            deployed, debugged and           delays and economic losses and casualties
               other applications. Have the ability of                                                                                               promotion of the Company's expressway
                                                                       applied.                         caused by traffic accidents. Improve the
               macro-monitoring all data of expressway.                                                                                              information integration business.
                                                                                                        management and control of road traffic and
                                                                                                        the service level of the owner overall.




21
2021 Annual Report
     Name of
                                                                                                                                                       Expected impact on the future
  main R&D                       Project purpose                           Project progress                     Goal to be achieved
                                                                                                                                                        development of the Company
     project

               With big data as the core, the smart party building
               cloud platform has simultaneously developed PC                                       Grass-roots party members can make full
               portal website, WeChat official account, party                                       use of fragmented time through mobile
               building portal management backend, party                                            phone terminal, to communicate and
                                                                                                                                                  Centered on the in-depth exploration
               building big data and management cloud platform,                                     discuss through the study section anytime
                                                                                                                                                  and research on the smart party building
               providing the group and grass-roots party                                            and anywhere, which realizes the
 Smart Party                                                         All functions of the project                                                 cloud platform, with the Internet + party
               organizations with an integrated management                                          breakthrough of the learning and education
 Building                                                            have been developed,                                                         integrated management solution which
               platform for internet plus party building, which                                     form of party building "from traditional to
 Cloud                                                               deployed, debugged and                                                       integrates the publicity, education,
               integrates five major businesses, namely party                                       modern, from closed to open, from entity
 Platform                                                            applied.                                                                     service, management, and supervision,
               building publicity, party members' learning and                                      to virtual". Meanwhile, the traditional
                                                                                                                                                  and thus having high construction
               education, party building activities, party affairs                                  tedious daily management work is
                                                                                                                                                  necessity and market demand.
               management and data supervision, and realizes                                        simplified and integrated, the party work
               full coverage of party affairs business and                                          flow is optimized, and the efficiency and
               interconnection among grass-roots party                                              quality of party work are improved.
               organizations.




22
2021 Annual Report


Company's research and development personnel situation
                                                                       2021                     2020           Increase /decrease

     Number of Research and Development persons (persons)                           12                   2               500.00%

        Proportion of Research and Development persons                          0.40%                0.07%                    0.33%

 Academic structure of R&D personnel                                   ——                     ——                   ——

 Bachelor                                                                           11                   2               450.00%

 Master                                                                              1

 Age composition of R&D personnel                                      ——                     ——                   ——

 Under 30 years old                                                                  1

 30-40 years old                                                                     9

 Over 40 years old                                                                   2                   2                    0.00%

The Company's R & D investment situation
                                                                                                                         Increase
                                                                                            2021             2020
                                                                                                                        /decrease

             Amount of Research and Development Investment (In RMB)                      13,974,899.53   404,303.70     3,356.54%

       Proportion of Research and Development Investment of Operation Revenue                   0.26%         0.01%           0.25%

       Amount of Research and Development Investment Capitalization (In RMB)               703,960.80           0.00

     Proportion of Capitalization Research and Development Investment of Research
                                                                                                5.04%         0.00%           5.04%
                            and Development Investment

Reasons and influence of significant changes in R&D personnel composition of the Company
□ Applicable √Not applicable
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
√ Applicable      □ Not applicable
     In 2021, the R&D investment has been increased, and new R&D projects have been added, such as
"Research on Bridge Safety Monitoring and Application Based on Beidou System", "Application of Monitoring
System for Operational Safety Cluster of Jiujiang Bridge in Foshan-Kaiping Expressway Expansion",
"All-weather Intelligent Monitoring and R&D Project for Key Road Sections of Foshan-Kaiping Expressway",
"Research on Traffic Guidance of Large Flow in 2021", "Traffic Simulation Platform", "Big Data Projection" and
"Smart Party Building Cloud Platform".
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
√ Applicable      □ Not applicable
     In 2021, the R&D investment has been increased, and new R&D projects have been added, such as
"Research on Bridge Safety Monitoring and Application Based on Beidou System", "Application of Monitoring
System for Operational Safety Cluster of Jiujiang Bridge in Foshan-Kaiping Expressway Expansion",
"All-weather Intelligent Monitoring and R&D Project for Key Road Sections of Foshan-Kaiping Expressway",
"Research on Traffic Guidance of Large Flow in 2021", "Traffic Simulation Platform", "Big Data Projection" and
"Smart Party Building Cloud Platform".


23
2021 Annual Report


5.Cash Flow

                                                                                                                               In RMB

                           Items                                      2021                      2020           Increase/Decrease(%)

 Subtotal of cash inflow received from operation
                                                                 5,574,328,005.11           4,051,493,610.08                 37.59%
 activities

 Subtotal of cash outflow received from operation
                                                                 1,904,583,283.95           1,415,306,369.03                 34.57%
 activities

 Net cash flow arising from operating activities                 3,669,744,721.16           2,636,187,241.05                 39.21%

 Subtotal of cash inflow received from investing
                                                                   224,528,598.74            372,548,657.83                 -39.73%
 activities

 Subtotal of cash outflow for investment activities                648,313,936.74            884,922,836.28                 -26.74%

 Net cash flow arising from investment activities                 -423,785,338.00           -512,374,178.45                 -17.29%

 Subtotal cash inflow received from financing activities         2,265,075,195.50           2,258,963,500.00                  0.27%

 Subtotal cash outflow for financing activities                  5,401,656,857.26           4,591,305,613.77                 17.65%

 Net cash flow arising from financing activities                 -3,136,581,661.76       -2,332,342,113.77                   34.48%

 Net increase in cash and cash equivalents                         109,006,386.66           -206,800,360.26                 152.71%

Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
     Due to the outbreak of the COVID-19 in 2020, the national highway toll revenue will be exempted. In 2021,
the number of days for companies to charge on various road sections increases compared with the same period of
the previous year, the toll revenue increases, and the cash inflow from operating activities increases. The increase
of profits leads to the increase of taxes and fees, and the increase of cash outflow from operating activities.
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

I. Adjusting net profit to cash flow from operating activities                                                  2021

Net profit                                                                                                             2,426,784,700.28

Add:Credit loss provision                                                                                                 1,935,337.47

     Impairment loss provision of assets                                                                                   2,889,394.16

     Depreciation of fixed assets, oil and gas assets and consumable biological assets                                 1,229,561,027.39

     Depreciation of the use right assets                                                                                  9,914,956.52

Amortization of intangible assets                                                                                        36,587,254.42

Amortization of Long-term deferred expenses                                                                                 350,625.00

  Loss on disposal of fixed assets, intangible assets and other long-term deferred assets                                 -3,017,370.44

     Fixed assets scrap loss                                                                                                381,538.83


24
2021 Annual Report


I. Adjusting net profit to cash flow from operating activities                                                   2021

Financial cost                                                                                                           283,024,964.67


Loss on investment                                                                                                      -277,061,254.36


Decrease of deferred income tax assets                                                                                   105,511,533.12


Increased of deferred income tax liabilities                                                                              -71,180,773.10

     Decrease of inventories                                                                                                -586,318.60

Decease of operating receivables                                                                                            8,323,698.17


Increased of operating Payable                                                                                            -83,674,592.37

Net cash flows arising from operating activities                                                                        3,669,744,721.16


V.Analysis of Non-core Business

√ Applicable      □Not applicable
                                                                                                                                In RMB

                                               Proportion in                                                      Sustainable (yes or
                           Amount                                             Explanation of cause
                                                total profit                                                              no)

 Investment                                                      It is due to the operation accumulation of
                        277,061,254.36                 8.76%                                                     Sustainable
 Income                                                          participant companies

                                                                 Fokai Company accrued impairment reserve
 Asset impairment         -2,889,394.16               -0.09%                                                     Not sustainable
                                                                 for fixed assets

 Non-operating                                                   Mainly insurance claims , road property
                         17,975,495.18                 0.57%                                                     Not sustainable
 income                                                          claims and Demolition compensation income

 Non-operating                                                   Mainly road property repair expenses and
                         22,483,385.64                 0.71%                                                     Not sustainable
 expenses                                                        Loss of non-current assets

 Income from                                                     Mainly the gains from fixed asset disposal of
                           3,017,370.44                0.10%                                                     Not sustainable
 asset disposal                                                  East Guangzhou-Zhuhai Company

 Credit
                          -1,935,337.47               -0.06%     Provision for impairment of other receivables   Not sustainable
 impairment loss




25
2021 Annual Report


VI.Condition of Asset and Liabilities

1.Condition of Asset Causing Significant Change
                                                                                                                    In RMB

                                  End of 2021                          End of 2020                              Notes to
                                                                                                  Proportion
                                                                                  Proportion in                   the
                                          Proportion in the                                       increase/d
                         Amount                                  Amount              the total                 significant
                                           total assets(%)                                         ecrease
                                                                                     assets(%)                  change

 Monetary fund        2,956,404,390.55              15.66%     2,847,398,003.89         14.40%        1.26%

 Accounts
                       159,053,399.87                0.84%      168,907,517.56            0.85%      -0.01%
 receivable

 Contract assets          5,286,462.45               0.03%         5,452,813.90           0.03%       0.00%

 Inventories               640,079.66                0.00%           53,761.06            0.00%       0.00%

 Investment real
                          2,889,263.41               0.02%         3,110,381.89           0.02%       0.00%
     estate

 Long-term
     equity           2,627,130,681.24              13.92%     2,382,927,355.64         12.05%        1.87%
     investment

 Fixed assets        10,639,272,192.02              56.36%    11,540,075,929.69         58.37%       -2.01%

 Construction in
                       351,130,455.06                1.86%      340,611,095.47            1.72%       0.14%
 process

 Use right assets       14,100,325.01                0.07%       23,154,055.78            0.12%      -0.05%

 Shore-term
                                  0.00               0.00%      200,192,500.00            1.01%      -1.01%
 loans

 Contract
                            22,000.00                0.00%          309,734.51            0.00%       0.00%
 liabilities

 Long-term
                      4,572,621,200.00              24.22%     4,977,438,800.00         25.18%       -0.96%
 borrowing

 Lease liabilities        2,773,459.76               0.01%       12,245,214.89            0.06%      -0.05%

Overseas assets account for a relatively high proportion.
□ Applicable √ Not applicable




26
         2021 Annual Report


         2.Asset and Liabilities Measured by Fair Value
         √Applicable □ Not applicable


                                                                                       Impairme    Purchas     Sold
                                                 Gain/Loss on
                                                                  Cumulative fair          nt        ed       amount    Othe
                                                    fair value
                                                                    value change       provision   amount     in the        r
         Items             Opening amount        change in the                                                                   Closing amount
                                                                    recorded into       s in the    in the    reporti   chan
                                                    reporting
                                                                       equity          reporting   reportin     ng      ges
                                                     period
                                                                                        period     g period   period

Financial assets

4.Other equity
instrument                    1,737,015,528.29                      263,485,537.28                                              1,577,175,826.05
investment

Subtotal of financial
                              1,737,015,528.29                      263,485,537.28                                              1,577,175,826.05
assets

Total of the above            1,737,015,528.29                      263,485,537.28                                              1,577,175,826.05

Financial liabilities                    0.00                                   0.00                                                        0.00

         Other change
         Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting
         period?
         □ Yes √No

         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.

         VII. Investment situation

         1. General
         √ Applicable □ Not applicable
              Investment Amount in 2021(Yuan)            Investment Amount in 2020(Yuan)                      Change rate

                                   134,650,000.00                           2,703,460,018.24                                    -95.02%




         27
                2021 Annual Report
                2.Condition of Acquiring Significant Share Right Investment during the Report Period
                √Applicable □Not applicable
                                                                                                                                                                                                    In RMB

                                                                                                                                                                    Whe
                                                                                                                                                     Gain      or
                                                                                                                                                                    ther
Name       of                                                    Capi                                                                                Less      or
                 Main     Inves                       Share                                                    Prod    Progress up to                               to
the                                   Investment                 tal                           Investment                                  Anticip   the
                 Busine   tment                       Propor            Partner                                uct     Balance     Sheet                            Invol    Date of Disclosure      Disclosure Index
Company                                Amount                    Sour                              Horizon                                  ated     Current
                     ss   Way                         tion %                                                   Type    Date                                         ve in
Invested                                                         ce                                                                        Income    Investme
                                                                                                                                                                    Law
                                                                                                                                                     nt
                                                                                                                                                                    suit

                                                                        Xinyue                                                                                                                    Announcement of
                                                                                             On the basis of
Guangdon                                                                (Guangzhou)                                                                                                               Resolutions of the 20th
                          Incre                                                              the term of       Limit
g                                                                       Investment Co.,                                                                                                           (Provisional) Meeting
                Expres    ase                          15.00     Self                        operation         ed
Jiangzhong                           133,650,000.00                     Ltd., Guangdong                                Completed                                    No      July 31, 2021         of the Ninth Board of
                sway      capit                              %   fund                        approved by       Com
Expresswa                                                               Highway                                                                                                                   Directors,
                          al                                                                 the               pany
y Co., Ltd.                                                             Construc tion Co.,                                                                                                        Related transaction
                                                                                             government
                                                                        Ltd.                                                                                                                      Announcement

Total                --        --    133,650,000.00     --         --             --                 --          --           --              0.00          0.00      --             --                        --


                3.Situation of the Significant Non-equity Investment Undergoing in the Report Period

                □ Applicable √ Not applicable

                4.Investment of Financial Asset

                (1)Securities investment

                √ Applicable □ Not applicable
                                                                                                                                                                                                    In RMB
                28
          2021 Annual Report
                                                                                                                                 Purchas
                                                              Mode of                                                                       Sale                        Book value
                                                                           Book value                                               e
                                  Stock                       accounti                      Changes      in   Cumulative fair              amount   Gain/loss of the   balance at the   Accoun     Sourc
  Security        Security                  Initial                       balance at the                                         amount
                                Abbreviat                     ng                            fair value of     value changes in             in the      reporting         end of the       ting     es of
  category           code                   investment cost              beginning of the                                         in the
                                   ion:                       measure                       the this period       equity                    this        period           reporting       items     funds
                                                                         reporting period                                          this
                                                              ment                                                                         period                         period
                                                                                                                                 period

                                                                                                                                                                                        Other
                                                                                                                                                                                        equity
Domestic and
                                Everbrigh                                                                                                                                               instrum
foreign          601818                     517,560,876.80    FVM        938,667,226.56               0.00     263,485,537.28       0.00     0.00    49,403,538.24     781,046,414.08              Self
                                t Bank                                                                                                                                                  ent
stocks
                                                                                                                                                                                        investm
                                                                                                                                                                                        ent

Total                                       517,560,876.80         --    938,667,226.56               0.00     263,485,537.28       0.00     0.00    49,403,538.24     781,046,414.08         --     --

Disclosure Date of Announcement on
Securities Investment Approved by the       July 22,2009
Board of Directors

Disclosure Date of Announcement on
Securities Investment Approved by the       August 7,2009
Shareholders Meeting(If any)


          (2)Investment in Derivatives

          □ Applicable      √ Not applicable
          The Company had no investment in derivatives in the reporting period.




          29
2021 Annual Report


5.Application of the raised capital
□ Applicable   √ Not applicable
The Company had no application of the raised capital in the reporting period.

VIII. 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




30
          2021 Annual Report


          IX.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                                                            Registered
 Company Name                                Leading products and services                              Total assets       Net assets       Operating Income   Operating profit      Net Profit
                          type                                                             capital

                                    Operating Guangfo Expressway Co.,
Guangfo                                                                                RMB 200
                    Subsidiary      Ltd.(starts from Hengsha, Guangzhou, ends in                       557,444,986.51     525,258,828.06      452,189,259.01     285,008,760.76    216,784,938.57
Expressway                                                                             million
                                    Xiebian, Foshan. Total length 15.7 kilometers

Jingzhu                             The operation and management of Guangzhu
Expressway                          Expressway and provision of supporting             RMB 580
                    Subsidiary                                                                        2,245,637,507.19   1,162,701,542.28   1,173,205,770.48     690,615,701.91    510,059,420.32
Guangzhu                            services including fueling, salvage and supply     million
Section Co., Ltd.                   of parts and components

                                    Investment in and construction of Guanghui
                                    Expressway Co., Ltd. and supporting facilities,
Guangdong                           the    toll   collection   and     maintenance
Guanghui            Sharing         management of Guanghui Expressway, The             RMB 2.352
                                                                                                      4,307,118,539.25   3,911,349,143.60   2,153,255,526.58   1,492,003,731.61   1,111,564,548.10
Expressway Co.,     company         Guanghui Expressway's supporting gas station,      million
Ltd.                                salvation,    vehicle   maintenance,     vehicle
                                    transport, catering, warehousing investment
                                    and development

          Subsidiaries obtained or disposed in the reporting period
          □ Applicable    √ Not applicable
          Particulars about the Mutual holding companies
              1. Guangfo Expressway Co., Ltd. (the Company holds 75% equity) builds and operates Guangfo Expressway, and its operation and management includes road
          maintenance, toll collection, maintenance of traffic facilities such as signs and markings, and vehicle rescue. The net profit of the current period increased by RMB

          31
2021 Annual Report
61.7527 million year on year, or 39.83%. The main reason for the increase was that the toll exemption policy for the COVID-19 epidemic in 2020. There is no such
impact in this period, with increase in toll days, toll income and operating income, operating profit and year-on-year increase in net profit.
     2. Jingzhu Expressway Guangzhu Section Co., Ltd. (the company holds 75% equity) operates Guangzhou-Zhuhai Expressway and provides the supporting
refueling, rescue and spare parts supply services of expressway. The net profit of the current period increased by RMB 208.3206 million year-on-year, or 69.04%.
The main reason for the decrease was that the toll revenue decreased due to the toll-free policy of COVID-19 epidemic. There is no such impact in this period, with
increase in toll days, toll income and operating income, operating profit and year-on-year increase in net profit.
3. Guangdong Guanghui Expressway Co., Ltd. (the company holds 51% equity) invests in and builds Guanghui Expressway and supporting facilities; Toll collection
and maintenance management of Guanghui Expressway; Investment and development of gas stations, rescue, automobile maintenance, automobile transportation,
catering and warehousing for Guanghui Expressway. The net profit of the current period increased by RMB 331.2595 million year-on-year, or 42.45%. The main
reason for the decrease was that the toll revenue decreased due to the toll-free policy of COVID-19 epidemic. There is no such impact in this period, with increase in
toll days, toll income and operating income, operating profit and year-on-year increase in net profit.




32
2021 Annual Report


X. Structured subject situation controlled by the company

□ Applicable   √ Not applicable

XI.Prospect for future development of the Company

      In 2022, the Company will continue to strengthen its confidence in reform and development, constantly strengthen its strategic thinking, and strive to improve
its corporate governance and development capabilities, promote the transformation and upgrading of enterprises, enhance its anti-risk ability and lay a solid
foundation for the steady development of enterprises according to the world-class management and three-year action of state-owned enterprise reform. The overall
goal of 2022 is to achieve an operating revenue of 5.011 billion yuan and control the operating cost within 1.878 billion yuan.
      1. Implement and deepen the task of state-owned enterprise reform
      The Company will continue to implement and deepen the state-owned enterprise reform, strive to improve the level of independent operation, and accelerate the
modernization and high-quality development of corporate governance capacity.
      2. Consolidate and expand the main business of expressway
      In 2022, the Company will continue to consolidate and expand the main business of expressway and continue to study the M&A of high-quality projects;
consolidate the investment decision-making work of existing reconstruction and expansion projects, fully grasp the historical opportunity of reconstruction and
expansion of East Guangzhou-Zhuhai, Guangzhou-Huizhou and Guangdong-Zhaoqing expressways, and persist in cooperating with the preliminary research related
work of the reconstruction and expansion projects of the sections participated and held by the Company.
      3. Well ensure the investment in non-main business of expressway and provide new profit growth points
      The Company fully utilizes the market-oriented investment platform of Yuegao Capital, expands the equity investment business and increases the new profit
growth point of the Company's expressway main business investment.
      4. Accelerate the revitalization of land resources along the expressway
      Continue to intensify the development of land resources along the expressway, optimize the land development plan in an all-round way, focus on economic
benefits, continue to revitalize plots such as Xinjitian, Chenshan and Shatou, so as to maximize comprehensive benefits.

XII. List of the received researches, visits and interviews

√ Applicable □Not applicable


33
           2021 Annual Report
                        Place of      Way of     Types of                                                                                    Main contents discussed and information
   Reception time                                                                         Visitors received                                                                                     Basic index
                       reception     reception   visitors                                                                                                    provided

                                                            Zheshang Securities telephone research meeting:Zheshang Securities Kuang
                                                                                                                                           1. The main content of research:1. the daily
                                                            Peiqin; Zheshang Securities Feng Shiqi; Huaxia Fund Liu Peiyi;
                                                                                                                                           operation; 2. the company's financial data
                      Meeting                               China Merchants Fund Yao Shuang; Invesco Great Wall He Jinyang; Springs
                                                 Organiz                                                                                   analysis;3. development strategy; 4. analysis
March 26,2021         Room of the   By Phone                Capital Lin Shenglan; Starock Investment Hong Mei; Orient Guo Zhe;                                                              www.cninfo.com.cn
                                                 ation                                                                                     on the industry. 2.Primary data investigation:
                      Company                               Huatai Securities Lin Xiaying; Guotai Junan Secutities Yin Jiaqi; Haitong
                                                                                                                                           Public information company regularly
                                                            Securities Luo Yuejiang; Changjiang Securities Zhang Yibo; Changjiang
                                                                                                                                           reports
                                                            Securities Feng Qibin; Huaxi Securities Li Chengpeng.

                                                            Huatai Securities Telephone Research Meeting: Huatai Securities Shen           1. The main content of research:1. the daily
                                                            Xiaofeng, Lin Xiaying; Zheshang Securities Kuang Peiqin; Zheshang              operation; 2. the company's financial data
                      Meeting
                                                 Organiz    Securities Feng Shiqi; Guotai Junan Yue Xin; Guotai Junan Zhang Jingwen;       analysis;3. development strategy; 4. analysis
August 27,2021        Room of the   By Phone                                                                                                                                                www.cninfo.com.cn
                                                 ation      Guotai Junan Zhang Zhekai; Shanyuan Investment Tang Cong;                      on the industry. 2.Primary data investigation:
                      Company
                                                            JP Morgan Asset Management Vivian Tao;Value Partners Limited                  Public information company regularly
                                                            Norman Ho.                                                                     reports

                                                            Industrial Securities Telephone Research Meeting:Industrial Securities Wang   1. The main content of research:1. the daily
                                                            Chunhuan; Dongwu Securities Wang Yingze; Bank of China Investment              operation; 2. the company's financial data
                      Meeting
                                                 Organiz    Management Co., Ltd. Shen Yuchen; Sinosafe Assets Zhang Mingzhao;              analysis;3. development strategy; 4. analysis
September 8,2021      Room of the   By Phone                                                                                                                                                www.cninfo.com.cn
                                                 ation      Jiashi Fund Liu Qian; Minsheng Trust Fu Feng; Hongkang Ziwei Assets            on the industry. 2.Primary data investigation:
                      Company
                                                            Management Co., Ltd. Wu Xiongwei; Huatai Li Yanguan; Dacheng Fund Fu           Public information company regularly
                                                            Rui; Dinghui Investment Huang Yanjie.                                          reports

                                                                                                                                           1. The main content of research:1. the daily
                                                                                                                                           operation; 2. the company's financial data
                      Meeting                               CICC Telephone Research Meeting:CICC Zhang Weinjie, Luo Xinyu, Gu
                                                 Organiz                                                                                   analysis;3. development strategy; 4. analysis
November 1,2021       Room of the   By Phone                Yuanfan; Zhejiang Shanyuan Tang Cong; Fujian Haoshan Assets Hong                                                                www.cninfo.com.cn
                                                 ation                                                                                     on the industry. 2.Primary data investigation:
                      Company                               Jiarong; Guotai Junan Zhang Zhekai Shan Deli.
                                                                                                                                           Public information company regularly
                                                                                                                                           reports



           34
2021 Annual Report




                                      IV. Corporate Governance

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’s meeting, to take the ultimate responsibility for the bank’s 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 is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway,Jingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion 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 Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology
Petty Loan Co., Ltd., Guangdong Guangle Expressway Co.,Ltd., Guoyuan Securities Co., Ltd, Hunan Lianzhi
Technology Co., Ltd.and SPIC Yuetong Qiyuan Chip Power Technology 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,
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.


35
2021 Annual Report


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, including subsidiaries established independent accounting department,independent accounting
system and regulations on financial management.
     The Company independently opened bank account and did not deposit funds in the accounts of the finance
company or settlement center of the majority shareholder. The Company independently paid tax. The Company's
financial decisions were independently made. The majority shareholder did not interfere with the use of funds by
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. Horizontal Competitions

□ Applicable √ Not applicable




36
          2021 Annual Report

          IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period

          1.Annual General Meeting


                                            Investor
                            Type of                       Meeting    Disclosure
      Sessions                            participation                                                                                     Disclosure index
                            meeting                        Date         date
                                              ratio

                         Provisional                                              1. The meeting examined and adopted the Proposal on Signing the Supplementary Agreement to the Financial Services
The First provisional
                         shareholders’                   February   February     Agreement with Guangdong Communications Group Finance Co., Ltd.2. The meeting examined and adopted the Proposal on
shareholders’ General                         65.66%
                         General                          3,2021     4,2021       Requesting the Increase of Audit Fees for Annual Financial Reports.3. The meeting examined and adopted the Proposal
meeting of 2021
                         meeting                                                  regarding the election of Mr. Lu Ming as director of the ninth board of directors of the Company.

                                                                                  1.The meeting examined and adopted the Proposal Concerning Final Accounting Report for 2020.2.The meeting examined and
                                                                                  adopted the Proposal Concerning Preplan for Profit Distribution for 2020 . 1. It’s planned to draw RMB 93,232,912.82 that is
                                                                                  based on 10% of the net profit realized by the parent company for the statutory surplus reserve.2. RMB 608,424,582.67 is to be
                                                                                  allocated as the fund for dividend distribution for 2020. with the total shares at the end of 2020, i.e., 2,090,806,126 shares, as the
                                                                                  base, cash dividend of RMB 2.91 (including tax) is to be distributed for every 10 shares .The remaining undistributed profits are
                         Annual                                                   to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders holding B share
2020 Shareholders’      Shareholders’                   June       June         and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate quoted by People’s Bank of China
                                               65.63%
general meeting          General                          22,2021    23,2021      on the first working day after 2020 annual shareholders’ general meeting makes resolution on dividend distribution.3. The
                         Meeting                                                  meeting examined and adopted the Proposal Concerning Overall budget report of the Company for 2021.4. The meeting
                                                                                  examined and adopted the Work Report of the Board of Directors for 2020.5. The meeting examined and adopted the Work
                                                                                  Report of the supervisory Committee for 2020.6. The meeting examined and adopted Annual Report for 2020 and its
                                                                                  summary.7. The meeting examined and adopted the Proposal for Hiring the 2021 Annual Financial Report Audit Agency.8. The
                                                                                  meeting examined and adopted the Proposal for Hiring the 2021 Internal Control Audit Institution.9. The meeting examined and
                                                                                  adopted the Proposal on the election of Mr.Ren Hua as the director of the ninth board of directors of the company.

The Second               Provisional
                                                                                  The meeting examined and adopted the Proposal on increasing capital to Guangdong Jiangzhong Expressway Co., Ltd. to
provisional              shareholders’                   August     August
                                               40.27%                             participate in the investment in the
shareholders’ General   General                          16,2021    17,2021
                                                                                  shenzhen-Cenxi Expressway Zhongshan Xinlong to Jiangmen Longwan Section Reconstruction and Expansion Project.
meeting of 2021          meeting

          37
          2021 Annual Report
                         Provisional
The Third provisional                               Novemb
                         shareholders’                       November
shareholders’ General                     65.86%   er                   The meeting examined and adopted the Proposal on Amending Part of the Articles of Association of the Company.
                         General                              25,2021
meeting of 2021                                     24,2021
                         meeting


          2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

          □ Applicable √Not applicable




          38
         2021 Annual Report



         V. Information about Directors, Supervisors and Senior Executives

         1.Basic situation


                                                                                                                                                                              Number
                                                                                                                                             The        Number
                                                                                                                                                                                of       Reasons
                                                                                                       Shares              Number of      number of     of shares
                                                                                                                                                                    Other     shares        for
                                                                                                       held at    Stock     restricted    shares held   reduced
                                    Office                     Starting date of     Expiry date of                                                                  change    held at    increase
  Name             Positions                      Sex   Age                                              the      optio      shares         in the       in the
                                    status                         tenure               tenure                                                                      s(share   the end       or
                                                                                                      year-begi    ns     granted(share     current      current
                                                                                                                                                                      a)       of the    decrease
                                                                                                      n(share)                 s)         period(shar   period(sh
                                                                                                                                                                              period(s   of shares
                                                                                                                                              es)         ares)
                                                                                                                                                                               hares)

Zheng
               Board Chairman     In office   Male       52   January 4,2017      September 20,2022
Renfa

               Director,
Wang
                General           In office   Male       57   October 19,2015     September 20,2022    135,100                                                                135,100
Chunhua
                Manager

               Director, Chief                                December
Lu Ming                           In office   Male       43                       September 20,2022
               accountant                                     25,2020

               Director, Deputy
                                              Femal
Zuo Jiang      General            In office              49   October 19,2015     September 20,2022
                                              e
               Manager

Chen Min       Director           In office   Male       58   July 19,2017        September 20,2022

Zeng                                                          December
               Director           In office   Male       51                       September 20,2022
Zhijun                                                        4,2017

You            Director           In office   Male       54   July 21,2020        September 20,2022

         39
        2021 Annual Report
                                                                                                                                                                            Number
                                                                                                                                           The        Number
                                                                                                                                                                              of       Reasons
                                                                                                     Shares              Number of      number of     of shares
                                                                                                                                                                  Other     shares        for
                                                                                                     held at    Stock     restricted    shares held   reduced
                                  Office                     Starting date of     Expiry date of                                                                  change    held at    increase
    Name          Positions                     Sex   Age                                              the      optio      shares         in the       in the
                                  status                         tenure               tenure                                                                      s(share   the end       or
                                                                                                    year-begi    ns     granted(share     current      current
                                                                                                                                                                    a)       of the    decrease
                                                                                                    n(share)                 s)         period(shar   period(sh
                                                                                                                                                                            period(s   of shares
                                                                                                                                            es)         ares)
                                                                                                                                                                             hares)

Xiaocong

Ren Hua       Director          In office   Male       46   June 22,2021        September 20,2022

                                            Femal           November
Wu Hao        Director          In office              49                       September 20,2022
                                            e               2,2020

Huang
              Director          In office   Male       46   July 21,2016        September 20,2022
Hai

Gu            Independent
                                In office   Male       56   July 21,2016        September 20,2022
Naikang       director

Bao           Independent
                                In office   Male       43   July 21,2016        September 20,2022
Fangzhou      director

Zhang         Independent                                   December
                                In office   Male       56                       September 20,2022
Hua           director                                      4,2017

Liu           Independent                                   December
                                In office   Male       56                       September 20,2022
Zhonghua      director                                      4,2017

Zeng          Independent                   Femal
                                In office              52   May 20,2019         September 20,2022
Xiaoqing      director                      e

Jiang         Chairman of the
Changwe       Supervisory       In office   Male       54   May 20,2019         September 20,2022
n             Committee

        40
        2021 Annual Report
                                                                                                                                                                             Number
                                                                                                                                            The        Number
                                                                                                                                                                               of       Reasons
                                                                                                      Shares              Number of      number of     of shares
                                                                                                                                                                   Other     shares        for
                                                                                                      held at    Stock     restricted    shares held   reduced
                                   Office                     Starting date of     Expiry date of                                                                  change    held at    increase
     Name         Positions                      Sex   Age                                              the      optio      shares         in the       in the
                                   status                         tenure               tenure                                                                      s(share   the end       or
                                                                                                     year-begi    ns     granted(share     current      current
                                                                                                                                                                     a)       of the    decrease
                                                                                                     n(share)                 s)         period(shar   period(sh
                                                                                                                                                                             period(s   of shares
                                                                                                                                             es)         ares)
                                                                                                                                                                              hares)

                                             Femal           September
Ke Lin        Supervisor         In office              52                       September 20,2022
                                             e               15,2017

Zhou                                                         September
              Supervisor         In office   Male       41                       September 20,2022
Yisan                                                        9,2019

Deng                                                         December
              Supervisor         In office   Male       46                       September 20,2022
Yunfeng                                                      23,2021

Cheng         Deputy General
                                 In office   Male       47   August 28,2017      September 20,2022
Rui           Manager

Luo           Deputy General                                 December
                                 In office   Male       48                       September 20,2022
Baoguo        Manager                                        25,2020

                                             Femal
He Bing       legal counsel      In office              54   July 23,2012        September 20,2022
                                             e

Yang          Secretary to the
                                 In office   Male       52   August 28,2017      September 20,2022
Hanming       Board

Zhuo                                                         December
              Director           Dimission   Male       50                       February 24,2021
Weiheng                                                      4,2017

Li                                           Femal
              Supervisor         Dimission              50   July 21,2016        December 23,2021
Haihong                                      e

Feng          Supervisor         Dimission   Male       57   September           December 23,2021

        41
        2021 Annual Report
                                                                                                                                                                        Number
                                                                                                                                 The          Number
                                                                                                                                                                          of       Reasons
                                                                                       Shares               Number of         number of       of shares
                                                                                                                                                             Other      shares        for
                                                                                       held at    Stock      restricted       shares held     reduced
                             Office               Starting date of   Expiry date of                                                                          change     held at    increase
  Name           Positions            Sex   Age                                          the      optio       shares            in the         in the
                             status                   tenure            tenure                                                                               s(share    the end       or
                                                                                      year-begi       ns   granted(share        current        current
                                                                                                                                                               a)        of the    decrease
                                                                                      n(share)                  s)            period(shar     period(sh
                                                                                                                                                                        period(s   of shares
                                                                                                                                  es)           ares)
                                                                                                                                                                         hares)

Yuan                                              9,2019

Total               --         --     --    --             --              --          135,100    0                       0               0              0          0   135,100       --




        42
2021 Annual Report


During the reporting period, whether there is dismissal of directors and supervisors and decruitment of senior
managers
√ Yes □No
     1. Mr. Zhuo Weiheng, director, resigned from the Board of Directors of the Company on February 24, 2021
due to job transfer. After his resignation, Mr. Zhuo Weiheng did not hold any other positions in the Company.
     2. Ms. Li Haihong, supervisor, and Mr. Feng Yuan, the employee supervisor, resigned from the Supervisory
Board of the Company on December 23, 2021 due to job transfer. After resignation, Ms. Li Haihong and Mr. Feng
Yuan did not hold other positions in the Company.

II.Changes of directors, supervisors and senior executives

√ Applicable □ Not applicable

      Name             Positions       Types                 Date                            Reason

 Zhuo Weiheng       Director       Dimission     February 24,2021              Job change

 Li Haihong         Supervisor     Dimission     December 23,2021              Job change

 Feng Yuan          Supervisor     Dimission     December 23,2021              Job change


III.Posts holding

Professional backgrounds, major work experience and current duties in the Company of the incumbent directors,
supervisors and senior management:
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.
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 Shenzhen Huiyan Expressway Co., Ltd.
    Lu Ming, is the director of the Company, chief accountant, senior accountant, with the graduate
degreeandMBA. From July 1999 to February 2001, he served as the accountant of Jingzhu Expressway Guangzhu
Section Co., Ltd; from February 2001 to November 2003, he served as the accountant of the Zhongjiang
Expressway Project Preparation Office, and from November 2003 to September 2006, he served as Deputy
Manager of the Accounting and Finance Department of the West Ring Section (South Section) of the Pearl River
Delta Ring Expressway. From September 2006 to February 2008, he served as the accountant of the Financial
Audit Department of Guangdong Provincial Highway Construction Co., Ltd. From February 2008 to March 2009,
he successively served as the deputy manager and manager of the Finance Department of the Southern Branch of
the West Second Ring Road of Guangdong Provincial Highway Construction Co., Ltd;from March 2009 to
December 2020, he served as the manager personnel, deputy supervisor of business and business supervisor of the
Financial Management Department of Guangdong Provincial Communications Group Co., Ltd. During the period

43
2021 Annual Report


from December 2018 to December 2019, he served as the first secretary of the Party branch of the Yinghuai
Management Office of the Longhuai Expressway Management Center of Nanyue Transportation of Guangdong
Province. He has been the chief accountant of the Company since December 25, 2020, and he has served as the
director of the Company since February 3, 2021.He also serves as the vice Chairman of Gangzhou Kangda
Expressway Co., Ltd., a joint stock company of the Comapny and Director of Guangdong Yueke Technology
Petty Loan Co., Ltd.
   Ms. Zuo Jiang, Deputy General Manager of the Company, Master of Economics, Senior Economist, Qualified
as 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. 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 September
2021, He served as Duputy Minister of Legal Affairs of Guangdong Communications Group Co., Ltd., Since
September 2021, 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 September 2020, He serves as Minister of personnel resource department,Since December 4, 2017,
he serves as Director of the Company.
     You Xiaocong, senior accountant,is the director of the Company, with bachelor degree. From August 1990 to
May 2008, he successively served as the deputy manager and manager of the finance department of Guangfa
Transportation Co., Ltd., and the manager, director and chief accountant of the finance department of Macau
Qi’guan Che’lu Co., Ltd. From May 2008 to January 2015, he served as the assigned chairman of the board of
supervisors ofGuangdong Provincial Communications Group Co., Ltd. From January 2015 to May 2015, he
served as the director and chief accountant of Guangdong Provincial Highway Construction Co., Ltd., and since
May 2015, he has served as the director, chief accountant, and member of the party committee of Guangdong
Provincial Highway Construction Co., Ltd. He has served as director of the Company since November 2, 2020.
     Mr. Ren Hua, director of the Company, master degree, engineer. From June 1998 to August 2001, he was a
teacher in the Department of Civil Engineering, West Branch of South China Construction Institute. From
September 2001 to June 2004, he studied in bridge and tunnel engineering in South China University of
Technology. He served as the supervisor and deputy manager of the Planning and Contract Department of
Guangdong West Coastal Expressway Zhuhai Section Co., Ltd. from July 2004 to October 2009, the supervisor of
the Investment and Operation Department and Deputy Director of the Legal Affairs Department of Guangdong
Highway Construction Co., Ltd. from October 2009 to September 2017, deputy chief economist and deputy
director of the Legal Affairs Department of Guangdong Highway Construction Co., Ltd. from September 2017 to

44
2021 Annual Report


April 2020, deputy chief economist and deputy director of the Legal Affairs Department and secretary of the party
branch of the Investment Management Department of Guangdong Highway Construction Co., Ltd. from April
2020 to December 2021, and general counsel, deputy chief economist, deputy director of Legal Affairs
Department and secretary of the Party branch of the Investment Management Department of Guangdong Highway
Construction Co., Ltd. since December 2021. He has served as the director of the Company since June 22, 2021.
    Wu Hao (resigned from the director and member of the Audit Committee on December 21), is the director of
the Company,with bachelor degree. From September 1992 to October 2011, she successively served as a section
member and deputy section chief of the Finance Section of the Administration for Industry and Commerce of
Tongzi County, Guizhou Province. From October 2011 to February 2012, he served as the section chief of the
Finance Section of the Huichuan District Administration for Industry and Commerce, Zunyi City, Guizhou
Province. From April 2013 to May 2020,She successively served as deputy manager of the finance department,
deputy manager of the investment business department, and manager of the investment business department of
Shandong Expressway Investment Development Co., Ltd. She has served as the deputy general manager and
member of party committee of Shandong Expressway Investment Development Co., Ltdsince May 2020. From
November 2, 2020, he has served as director of the Company.
    Mr. Huang Hai, MBA, joined the work in 1997. He had successively served as the business manager of the
financial department of Shenzhen Wofa Medical New Technology Development Co., Ltd., the manager of the
marketing department of Shantou Branch of Guangzhou Xingda Communication Co., Ltd, the manager of the
securities department and securities affairs representative of Zhongshan Public Technology Co., Ltd., andDeputy
General Manager of the Securities Department of Poly Real Estate and Director of the Office of the Secretary of
the Board of Directorsof Poly Real Estate, currently serving as Secretary of the Board and Director of the Office
of the Board of Directors of Poly Development Holding Group Co., Ltd., Chairman of Poly Property
Development Co., Ltd., Executive Director and General Manager of Tibet Yingyue Investment Management Co.,
Ltd. Since July 21, 2016, he has served as director 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.
     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

45
2021 Annual Report


De’rui Investment Co., Ltd and concurrently served as Deputy General Manager of Shenzhen Dongying Ruitong
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. Zeng Xiaoqing, an independent director of the Company, with bachelor's, master's and doctor's degrees
from Tongji University. Since 1993, she conducted training and study at Tsinghua University and German
Darmstadt University of Technology. From February 2000 to October 2002, she conducted post-doctoral research
and study in Tokyo Institute of Technology, Japan. She began to work in Tongji University in 1993, served as
assistant director of Shanghai Municipal Government's Expo Science and Technology Promotion Center from
2005 to 2012, and served as vice-chairman and secretary-general of Shanghai Creative Studies Institute from 2012;
She is currently the director of Tongji University's Joint Experimental Center for Traffic Information Control,
professor and doctoral supervisor of Tongji University's School of Transportation Engineering. From May 20,
2019, she served as the independent director of the Company.
     Mr. Jiang Changwen, male, is 52 years old, master of management, senior accountant, senior economist.
From July 1999 to November 2006, he worked in Guangshenzhu Expressway Co., Ltd., and served as the
supervisor, deputy manager and manager of the accounting department. From November 2006 to January 2009, he
worked in the Jiangzhong Expressway Company, and served as the finance department manager; since January
2009, he has worked in the Guangdong Provincial Transportation Group Co., Ltd, and has served as a supervisor.
From May 20,2019, he is the assigned chairman of the supervisory board of Guangdong Communication Group
Co., Ltd.
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.
    Mr. Zhou Yisan, supervisor of the Company, postgraduate degree, master of law, enterprise legal consultant,
with national legal professional qualification, board secretary qualification, and securities, fund and futures
practitioner qualification. From February 2014 to April 2016, he was the deputy supervisor of the Legal Affairs
Department of Guangdong Transportation Group Co., Ltd. From April 2016 to September 2017, he was the deputy
head of the Investment Development Department and Legal Affairs Department of the Company, and he has been
the head of Legal Affairs Department of the Company since September 2017. From September 9, 2019, he served
as the employee supervisor of the 9th Supervisory Committee of the Company. He also serves as supervisor of
Guangdong Yueke Technology Petty Loan Co., Ltd.
     Mr. Deng Yunfeng, supervisor of the Company, bachelor degree, MBA, senior engineer. He served as Party
Secretary of Guangzhou-Foshan Expressway Co., Ltd. from February 2014 to July 2018; Minister of Party and
Mass Work Department of the Company from July 2018 to the present, and also vice chairman of the trade union
of the Company and chairman of the trade union of its headquarters from March 2021 to the present. He has
served as the employee supervisor of the ninth board of supervisors of the Company since December 23, 2021.

46
2021 Annual Report


     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 Xinyue Co.,Ltd,
served as Deputy General Manager of 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. During this period, starting from May 2019 to August 2021, he was assigned as
the first secretary of the Party organization in Shanhu Village, Jinhe Town, Jiexi County, Jieyang City.
Mr. Luo Baoguo, deputy general manager of the Company, with graduate degree and master of engineering, is
senior engineer. From July 1999 to December 2003, he successively served as the chief engineer of the L bid
project of the southern section of the Jingzhu Expressway of the Guangdong Provincial Highway Engineering
Construction Group Co., Ltd., the deputy manager and technical sponsor of the southern Jingzhu pavement project,
Deputy Manager and Chief Engineer of the Pavement Project Department of the Jingzhu Southern Fogang Section,
Manager of the Project Manager Department and Deputy Manager of the Second Branchof the Eighth Contract
Section of Henan Jiaozuo-Jincheng Expressway. From December 2003 to March 2007, he successively served as
the manager of the university town project, the manager of the business contract department, and the employee
supervisor of the Guangdong Jingtong Highway Engineering Construction Group Co., Ltd. From March 2007 to
July 2014, he served as Director of the Project Development Office and Director of the Investment Development
Department of Guangdong Expressway Development Co., Ltd. From August 2014 to July 2017, he served as the
director, general manager and deputy party secretary of Guangdong Fokai Expressway Co., Ltd. From August
2017 to December 2020, he served as the general manager (person in charge) and deputy secretary of the Party
Committee of Fokai Branch of Guangdong Expressway Development Co., Ltd. From December 25, 2020, he has
served as the deputy general manager of the Company. He concurrently serves as the chairman of Zhaoqing
Yuezhao Highway Co., Ltd.-the company's share-participating company, and serves as the vice chairman of
Guangdong Jiangzhong Expressway Co., Ltd.
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.
    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, vice Chairman of
Ganzhou Gankang Expressway Co., Ltd., Director of Guangdong Jiangzhong Expressway Co., ltd. and supervisor
of Guangdong Yueke Technology Petty Loan Co., Ltd., Since September 2019, he served as Minister of Development
Dept of the Company. He also serves as the vice Chairman of Gangzhou Kangda Expressway Co., Ltd., a joint
stock company of the Company.
Office taking in shareholder companies
√Applicable □Not applicable




47
2021 Annual Report


                                                                                                             Does he /she
Names of                                                                                           Expiry    receive
     the                                        Titles engaged in the     Sharing date of office   date of   remuneration
              Names of the shareholders
persons in                                            shareholders                term             office    or allowance
  office                                                                                            term     from the
                                                                                                             shareholder

             Guangdong Communication
Chen Min                                  Minister of Legal Affairs.      December 1,2014                    Yes
             Group

                                          Chief accountant, Party
You          Guangdong Highway            committee member and
                                                                          January 14,2015                    Yes
Xiaocong     Construction Co., Ltd.       Secretary of the board of
                                          directors

                                          General Legal Counsel, Deputy
                                          Chief Economist, Deputy
             Guangdong Highway            Minister of the Legal Affairs
Ren Hua                                                                   September 1,2017                   Yes
             Construction Co., Ltd.       Department, Party Branch
                                          Secretary of the Investment
                                          Management Department

Zeng         Guangdong Provincial         General Counsel, Minister of
                                                                          September 1,2015                   Yes
Zhijun       Freeway Co.,Ltd.             Human Resources

Jiang        Guangdong Communication      Dispatched chairman of the
                                                                          January 1,2009                     Yes
Changwen     Group Co., Ltd.              supervisory committee




48
2021 Annual Report


Offices taken in other organizations
√Applicable □Not applicable
                                                                                                                    Does
                                                                                                                 he/she
                                                                                                                receive
                                                                                                     Expiry
Name of the                                                                                                    remunerati
                                                  Titles engaged in the    Starting date of office   date of
persons in       Name of other organizations                                                                        on or
                                                   other organizations              term             office
office                                                                                                         allowance
                                                                                                      term
                                                                                                               from other
                                                                                                               organizatio
                                                                                                                     n

Bao                                               Lawyer, Senior
              Shanghai Allbright law firm                                 January 1,2000                       Yes
Fangzhou                                          partner

Bao
              Laurel Power Co., Ltd.              Independent director    June 1,2016                          Yes
Fangzhou

              Finance and Investment ,School of   Professor, doctoral
Gu Naikang                                                                January 1,2004                       Yes
              Business Sun YAT-SEN University     supervisor

              Mingyang Intelligent Energy Group
Gu Naikang                                        Independent director    July 1,2017                          Yes
              Co., Ltd.

Gu Naikang    Zhubo Design Co., Ltd.              Independent director    December 1,2019                      Yes

              Shenzhen Shinning Electronic Co.,
Gu Naikang                                        Independent director    December 11,2020                     No
              Ltd.

Gu Naikang    Youmi Technology Co., Ltd.          Independent director    May 18,2021                          Yes

              Shanghai Erro Investment
Zhang Hua     Management Service                  General Manager         October 1,2016                       Yes
              Centre(General partnership)

              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.

              Guangzhou Rural Commercial
Zhang Hua                                         Independent director    March 18,2021                        Yes
              Bank

Liu           College of Accounting, Guangdong    Professor, Master’s    September 1,
                                                                                                               Yes
Zhonghua      University of Foreign Studies       supervisor              2005

Liu
              Gelinmei Co., Ltd.                  Independent Director    March 20,2019                        Yes
Zhonghua

Liu           Guangdong Shaogang Songshan
                                                  Independent Director    June 25,2019                         Yes
Zhonghua      Co., Ltd.

Liu           Luxshare Preciaion Industry Co.,    Independent Director    June 1,2021                          Yes


49
2021 Annual Report


Zhonghua     Ltd.

             Shandong Expressway Investment
Wu Hao                                         Deputy GM             May, 29,2020                   Yes
             Development Co., Ltd.

             Poly Developments and Holdings    Secretary to the
Huang Hai                                                            April 26,2012                  Yes
             Group Co., Ltd.                   Board

             Poly Property Development Co.,
Huang Hai                                      Board chairman        April 22,2019                  No
             Ltd.

Zeng         Tongji University's School of     Professor and
                                                                     June 1,2007                    Yes
Xiaoqing     Transportation Engineering        doctoral supervisor

             Tongji University's Joint
Zeng
             Experimental Center for Traffic   Director              June 30,2003                   No
Xiaoqing
             Information Control

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 ,
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 2019.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 RMB 6,000
(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




50
2021 Annual Report


                                                                                               In RMB 10,000

                                                                                       Total          Whether to get
                                                                                   remuneration         paid in the
     Name                       Positions            Sex    Age    Office status
                                                                                   received from           company
                                                                                   the Company         related party

 Zheng Renfa         Board Chairman                Male     52    In Office                80.14      No

 Wang Chunhua        Director, General Manager      Male    57    In Office                77.27      No

 Lu Ming             Director , Chief Accountant    Male    43    In office                50.11      No

                     Director, Deputy General
 Zuo Jiang                                         Female   49    In Office                66.76      No
                     Manager

 Chen Min            Director                       Male    58    In Office                       0   Yes

 Zeng Zhijun         Director                       Male    51    In Office                       0   Yes

 You Xiaocong        Director                       Male    54    In Office                       0   Yes

 Zhuo Weiheng        Director                       Male    50    Dimission                       0   Yes

 Ren Hua             Director                       Male    46    In Office                       0   Yes

 Wu Hao              Director                      Female   49    In Office                       0   Yes

 Huang Hai           Director                       Male    46    In Office                       0   No

 Gu Naikang          Independent director           Male    56    In Office                     7.2   No

 Bao Fangzhou        Independent director           Male    43    In Office                     7.2   No

 Zhang Hua           Independent director           Male    56    In Office                     7.2   No

 Liu Zhonghua        Independent director           Male    56    In Office                     7.2   No

 Zeng Xiaoqing       Independent director          Female   52    In Office                     7.2   No

 Jiang               Chairman of the Supervisory
                                                    Male    55    In Office                       0   Yes
 Changwen            Committee

 Li Haihong          Supervisor                    Female   50    Dimission                       0   Yes

 Ke Lin              Supervisor                    Female   52    In Office                65.78      No

 Feng Yuan           Supervisor                     Male    57    Dimission                50.04      No

 Zhou Yisan          Supervisor                     Male    41    In office                54.72      No

 Deng Yunfeng        Supervisor                     Male    46    In Office                54.61      No

 Cheng Rui           Deputy General Manager         Male    47    In office                67.93      No

 Luo Baoguo          Deputy General Manager         Male    48    In Office                50.11      No

 He Bing             Chief legal adviser           Female   54    In office                56.25      No

 Yang Hanming        Secretary to the Board         Male    52    In Office                58.54      No

 Total                             --                 --    --           --               768.26             --




51
           2021 Annual Report
           VI. Performance of directors' duties during the reporting period

           1. Information of the board meetings during the reporting period


                       Convening   Disclosur
      Session                                                                                                         Meeting resolution
                          date       e date

The 15th                                       1. The meeting examined and adopted the Proposal on Signing the Supplementary Agreement to the Financial Services Agreement with Guangdong
(Provisional)          January     January     Communications Group Finance Co., Ltd.2. The meeting examined and adopted the Proposal on Requesting the Increase of Audit Fees for Annual Financial
meeting of the ninth   18,2021     19,2021     Reports.3. The meeting examined and adopted the Proposal on the Capital Increase Project of Yuegao Capital Investment (Hengqin) Co., Ltd. 4. The meeting
Board of Directors                             examined and adopted the Proposal for Holding 2021 First Provisional   Shareholders' General Meeting.
                                               1. The meeting examined and adopted of the Proposal on Changes in Accounting Policies.2. The meeting examined and adopted the Proposal Concerning Provision
                                               for impairment of assets.3. The meeting examined and adopted the Proposal Concerning Final Accounting Report for 2020.4. The meeting examined and adopted the
                                               Proposal Concerning Preplan for Profit Distribution for 2020 .5. The meeting examined and adopted the Proposal Concerning Overall budget report of the Company
                                               for 2021.6. The meeting examined and adopted the Work Report of the Board of Directors for 2020.7. The meeting examined and adopted the Business Report of the
                                               General Manager for 2020.8. The meeting examined and adopted Annual Report for 2020 and its summary.9. The meeting examined and adopted the Proposal the
                                               report on evaluation of the Company's internal control in 2020.10. The meeting examined and adopted the Proposal for Hiring the 2021 Annual Financial Report
The 16th
                                               Audit Agency.11. The meeting examined and adopted the Proposal for Hiring the 2021 Internal Control Audit Institution.12. The meeting Examined and adopted of
(Provisional)          March       March
                                               the Proposal on Confirming the Continuous Risk Assessment Report of Guangdong Communication Group Finance Co., Ltd.13. The meeting Examined and adopted
meeting of the ninth   25,2021     26,2021
                                               of the Proposal on the Report on the Control of Debt Risk of 2020.14. The meeting Examined and adopted of the Proposal on the Report on the analysis of Debt
Board of Directors
                                               Risk of 2020.15. The meeting examined and adopted the Proposal Concerning the Company Daily Associated Transactions Predicted of 2021.16. The meeting
                                               examined and adopted the Proposal on Supplementing the Director Candidate for the Ninth Board of Directors.17. The meeting examined and adopted the Proposal
                                               on By-election of the Member of the Audit Committee of the Ninth Board of Directors.18. The meeting examined and adopted the Proposal on the signing of a
                                               contract for the entrusted operation and management from 2021 to 2023 of the Guangzhu North Section of the Guangdong Jingzhu Expressway between the
                                               Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd and the Jingzhu Expressway Guangzhu North Section Co., Ltd.19. The meeting examined and
                                               adopted the Proposal on the preparation of Guangdong Expressway Development Co., Ltd's "Shareholder Return Plan for the Next Three Years (2021-2023)".

The 17th                                       1. The meeting examined and adopted the Proposal concerning the Full Text of Report for the First Quarter of 2021 and the text of Quarterly Report and approved its
(Provisional)          April       April       announcement. 2.e meeting examined and adopted the Proposal on the scrapping of certain fixed assets of the Fokai Branch Company of Guangdong Provincial
meeting of the ninth   26,2021     27,2021     Expressway Development Co., Ltd.3. The meeting examined and adopted the Proposal on Participating in the investment and establishment of SPIC Yuetong Qiyuan
Board of Directors                             Chip Power Technology Co., Ltd.

           52
           2021 Annual Report
                       Convening   Disclosur
      Session                                                                                                         Meeting resolution
                          date       e date

The 18th
                                               1. The    meeting   examined    and   adopted   the   Proposal   on   the   Implementation   Plan   for   the   Implementation   of   the   Tenure   System   and
(Provisional)          May         June
                                               contract Management for Managers by Guangdong Provincial Expressway Development Co., Ltd. (Trial).2. .The meeting examined and adopted the Proposal for
meeting of the ninth   31,2021     1,2021
                                               Holding 2020 Annual Shareholders' General Meeting.
Board of Directors

The 19th
                                               1. The meeting examined and adopted the "roposal on Change in Accounting
(Provisional)          June        June
                                               Estimates", and it agreed that the Company will change the depreciation period of the Sanbao-Shuikou section of the Shenyang-Haikou National Expressway from J
meeting of the ninth   28,2021     29,2021
                                               une 1, 2021.
Board of Directors

The 20th
                                               1. The meeting examined and adopted the Proposal on increasing capital to Guangdong
(Provisional)          July        July
                                               Expressway Co., Ltd to participate in the investment in the Shenzhen-Cenxi Expressway Zhongshan Xinlong to Jiangmen Longwan Section Reconstruction and Exp
meeting of the ninth   30,2021     31,2021
                                               ansion Project.2. The meeting examined and adopted the Proposal for Holding 2021 Second Provisional Shareholders' General Meeting.
Board of Directors

The 21st
(Provisional)          August      August      1.The meeting examined and adopted the Proposal Concerning Provision for impairment of assets .2. The meeting examined and adopted of the Proposal on

meeting of the ninth   26,2021     27,2021     Confirming the Continuous Risk Assessment Report of Guangdong Communication Group Finance Co., Ltd. 3. The meeting examined and adopted the Proposal for

Board of Directors                             semi-annual report 2021 and its summary .

The 22nd
(Provisional)          September   October
                                               The meeting examined and adopted the Proposal on Amending Part of the Articles of Association of the Company.
meeting of the ninth   30,2021     8,2021
Board of Directors

                                               1. The meeting examined and adopted the Proposal concerning the Third Quarter of 2021 . 2. The meeting examined and adopted the Proposal on Formulating the
The 23rd                                       Management System of Authorization by the Board of Directors of Guangdong Provincial Expressway Development Co., Ltd. 3. The meeting examined and adopted
(Provisional)          October     October     the Proposal on Formulating the Development Strategy and Planning Management System of Guangdong Provincial Expressway Development Co., Ltd. 4. The
meeting of the ninth   29,2021     30,2021     meeting examined and adopted the Proposal on Amending the Information Disclosure System for Debt Financing Instruments of Guangdong Provincial Expressway
Board of Directors                             Development Co., Ltd. 5. The meeting examined and adopted the Proposal on Amending the Management System for Asset Impairment Provision Accrual and
                                               write-off of Guangdong Provincial Expressway Development Co., Ltd. 6.The meeting examined and adopted the Proposal for Holding 2021 Third Provisional

           53
           2021 Annual Report
                       Convening   Disclosur
      Session                                                                                                       Meeting resolution
                          date       e date

                                                Shareholders' General Meeting.

The 24th
(Provisional)          December    December The meeting examined and adopted the "Proposal on Donating to the Provincial Charity Federation", and agreed that the company would donate 12 million yuan to th
meeting of the ninth   24,2021     25,2021     e Guangdong Provincial Charity Federation.
Board of Directors




           54
2021 Annual Report


2. Attendance of directors at the board meetings and the general meeting of shareholders


                Attendance of directors at the board meetings and the general meeting of shareholders
                     Number of                       Number of
                                                                                                     Whether to
                       board          Number of         board        Number of
                                                                                     Number of        attend the      General
                     meetings           board         meetings         board
     Name of                                                                           board            board       meetings of
                      attended        meetings       attended by      meetings
     director                                                                         meetings       meeting in     shareholders
                     during the       attended in     means of       attended by
                                                                                     absent from     person twice    attended
                     reporting          person       communicati       proxy
                                                                                                       in a row
                       period                            on

 Zheng Runfa                    10               1               9               0               0       No              4

 Wang Chunhua                   10               1               9               0               0       No              4

 Lu Ming                        10               1               9               0               0       No              4

 Zuo Jiang                        0              0               0               0               0       No              0

 Chen Min                       10               1               9               0               0       No              4

 Zeng Zhijun                    10               1               9               0               0       No              4

 You Xiaocong                   10               1               9               0               0       No              4

 Zhuo Weiheng                     1              0               1               0               0       No              1

 Ren Hua                          6              0               6               0               0       No              3

 Wu Hao                         10               1               9               0               0       No              4

 Huang Hai                      10               1               9               0               0       No              4

 Gu Naikang                     10               1               9               0               0       No              4

 Bao Fangzhou                   10               1               9               0               0       No              4

 Zhao Hua                       10               1               9               0               0       No              4

 Liu Zhonghua                   10               1               9               0               0       No              4

 Zeng Xiaoqing                  10               1               9               0               0       No              4

Explanation of failure to attend the board meeting in person twice in a row
None

3. Directors' objections to related matters of the Company

Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.

4. Other descriptions of directors' performance of duties

Whether the directors' suggestions on the Company have been adopted
√Yes □ No

55
2021 Annual Report


The director's statement on whether the relevant suggestions of the Company have been adopted or not
     During the reporting period, all the directors of the Company diligently performed the duties entrusted by the
general meeting of shareholders, carefully evaluated and considered the Company's operation management,
investment, corporate governance and other matters, actively proposed, scientifically discussed and collectively
made decisions in the board meeting, and put forward multiple suggestions that meet the Company's development
needs at the present stage, which were adopted by the Company in the form of resolutions of the Board of
Directors.




56
            2021 Annual Report
            VII. Situation of special committees under the Board of Directors during the reporting period

                                   Number                                                                                                                                                    Other
                                                                                                                                                                                                      Details of
Committee            Member           of                                                                                                                                               information
                                                 Convening date             Meeting content                            Put forward important opinions and suggestions                                 objections
   name            information     meetings                                                                                                                                               of duty
                                                                                                                                                                                                       (if any)
                                   convened                                                                                                                                            performance

                                                                                                           The Audit Committee reviewed the 2020 financial report prepared by
                                                                                                                                                                                       An audit
                                                                                                           the Company, and reached consensus: 1. The Company's accounting
                                                                  1. Reviewed the 2020 financial                                                                                       supervision
                                                                                                           policies were properly selected, accounting estimates were reasonable,
                                                                  report prepared by the Company; 2.                                                                                   letter was
                                                                                                           and no material misstatement or omission was found; 2. No major
                                               January 7,2021     The CPA reported the audit plan of                                                                                   submitted to
                                                                                                           shareholders were found occupying the Company's funds; 3. No
                                                                  the 2020 financial report to the Audit                                                                               the
                                                                                                           external violation guarantee or abnormal related party transactions were
                                                                  Committee.                                                                                                           accounting
                                                                                                           found; 4. The Company's financial statements could be submitted to the
                                                                                                                                                                                       firm.
                                                                                                           CPA firm for annual audit.

                 Chairman of the                                  1. Reviewed the 2020 annual              1. The Audit Committee reviewed the 2020 financial report submitted

                 Committee:Liu                                   financial report submitted by the        by the Company's Finance Department and issued by the certified

                 Zhonghua,                                        Company's Finance Department and         public accountant for annual review with preliminary audit opinions,
Audit
                                           4                      issued by certified public               and reached consensus as follows: (1) The audit of the Company's 2020
Committee        Member:Zhang
                                                                  accountants with preliminary audit       financial report by the certified public accountant for annual review was   An audit
                 Hua, Lu Ming
                                                                  opinions; 2. Listened to the reports     conducted in strict accordance with the relevant norms of audit             supervision
                                                                  of the Proposal on Hiring Financial      business; (2) During preparation of the annual report, the annual           letter was
                                               March 25,2021      Report Audit Institution in 2021 and     certified public accountants communicated with the Audit Committee          submitted to
                                                                  the Proposal on Hiring Internal          effectively, and fully listened to the opinions of the Audit Committee,     the
                                                                  Control Audit Institution in 2021,       and consensus was reached on all major aspects in the annual review;        accounting
                                                                  and reviewed relevant information;       (3) The annual financial report issued by certified public accountants      firm.
                                                                  3. Reviewed and approved the             with preliminary audit opinions was relatively complete, with no major
                                                                  Company's 2020 Internal Audit            omissions, and it fairly reflected the Company's financial position as of
                                                                  Work Summary and 2021 Internal           December 31, 2020, and the production and operation results and cash
                                                                  Audit Work Plan; 4. Reviewed and         flow in 2020 in all major aspects. 2. After the Audit Committee listened

            57
         2021 Annual Report
                              Number                                                                                                                                             Other
                                                                                                                                                                                             Details of
Committee        Member          of                                                                                                                                            information
                                           Convening date             Meeting content                          Put forward important opinions and suggestions                                objections
  name         information    meetings                                                                                                                                           of duty
                                                                                                                                                                                              (if any)
                              convened                                                                                                                                         performance

                                                            approved the Proposal on Reviewing     to the reports of the Proposal on Hiring Financial Report Audit
                                                            the Company's 2021 Internal Control    Institution in 2021 and the Proposal on Hiring Internal Control Audit
                                                            Evaluation Work Plan; 5. Reviewed      Institution in 2021, and reviewed the relevant information, it concluded
                                                            and approved the Proposal on           that Yongtuo Certified Public Accountants (special general partnership)
                                                            Reviewing the 2020 Internal Control    had the relevant qualifications to engage in the audit business of listed
                                                            Evaluation Report of Guangdong         companies, followed the independent, objective and fair practice
                                                            Expressway Development Co., Ltd.       standards, and had the experience and ability to provide audit services
                                                                                                   for listed companies, could meet the needs of the Company's 2021
                                                                                                   financial report and internal control audit work, could independently
                                                                                                   audit the Company's financial position, and agreed to employ Yongtuo
                                                                                                   Certified Public Accountants (special general partnership) as the audit
                                                                                                   institution and internal control audit institution of the Company's 2021
                                                                                                   financial report, and agreed to submit the above two proposals to the
                                                                                                   Board of Directors and the general meeting of shareholders for
                                                                                                   deliberation.

                                                                                                   The Audit Committee reviewed the standard and unqualified 2020
                                                            It reviewed the standard and           financial report submitted by the Company's Financial Management
                                                            unqualified 2020 financial report      Department and issued by the certified public accountant for annual
                                                            submitted by the Company's             review, and concluded that the Company's financial report truly,
                                         March 25,2021
                                                            Financial Management Department        accurately and completely reflected the overall situation of the
                                                            and issued by the accountant for       Company, and agreed to submit the 2020 financial report prepared by
                                                            annual audit                           the Company and audited by the certified public accountant for annual
                                                                                                   review to the Board of Directors for deliberation.

                                                            It reviewed the Work Summary for
                                         August 26,2021
                                                            the First half and Work Plan for the

         58
             2021 Annual Report
                                    Number                                                                                                                                            Other
                                                                                                                                                                                                  Details of
 Committee              Member         of                                                                                                                                           information
                                                  Convening date                Meeting content                       Put forward important opinions and suggestions                              objections
   name             information     meetings                                                                                                                                          of duty
                                                                                                                                                                                                   (if any)
                                    convened                                                                                                                                        performance

                                                                   Second Half of the Internal Audit of
                                                                   Guangdong Expressway in 2021

                                                                                                          The Committee believed that in 2020, the Company's directors and
                                                                   It reviewed the 2020 Work Report of
                                                                                                          senior management personnel performed their duties diligently and
                                                                   the Board of Directors, 2020
                                                March 25,2021                                             conscientiously, and agreed to the remuneration of directors and senior
                                                                   General Manager's Business Report
                                                                                                          management personnel determined by the Company in accordance with
                                                                   and 2020 Annual Report.
                                                                                                          relevant systems and regulations in 2020.

                                                                   It reviewed the Implementation Plan    The Committee believes that the Implementation Plan prepared by the
                  Chairman of the
                                                                   for Guangdong Expressway               Company in accordance with the requirements of the Work Plan on
Remuneratio       Committee:Bao
                                                                   Development Co., Ltd. to implement     Implementing the Tenure System and Contractual Management of
n and             Fangzhou,
                                            1                      the tenure system of managers and      Managers in Provincial Enterprises of Grade II and below (YGZH
Assessment        Member :Gu                    March 25,2021
                                                                   contractual management (Trial)         [2020] No.227) issued by Guangdong Provincial State-owned Assets
Committee         Naikang, Huang
                                                                   (hereinafter referred to as            Supervision and Administration Commission conform to the actual
                  Hai
                                                                   Implementation Plan) and other         situation of the Company; and agreed to submit the Implementation
                                                                   materials.                             Plan to the Board of Directors of the Company for deliberation.

                                                                   It reviewed the Budget Allocation
                                                                   Plan of Total Wages of Guangdong
                                                December 24,2021
                                                                   Expressway Headquarters and
                                                                   Directly Affiliated Units in 2021.

                  Chairman of the                                  It reviewed the Company's 14th
                                                                                                          It believed that the Company's 14th Five-Year Development Plan
                  Committee:                                      Five-Year Development Plan
Strategy                                                                                                  (Draft) needed to be further revised and improved according to the
                  Zheng Runfa,              1   March 25,2021      (Draft), the 14th Five-Year
Committee                                                                                                 actual situation of the Company and the completion of the 14th
                  Member: Wang                                     Development Plan of Guangdong
                                                                                                          Five-Year Development Plan of the provincial transportation group.
                  Chunhua, Bao                                     Communications Group Co., Ltd.


             59
            2021 Annual Report
                                   Number                                                                                                                                              Other
                                                                                                                                                                                                   Details of
Committee            Member           of                                                                                                                                             information
                                                 Convening date              Meeting content                        Put forward important opinions and suggestions                                 objections
   name            information     meetings                                                                                                                                            of duty
                                                                                                                                                                                                    (if any)
                                   convened                                                                                                                                          performance

                 Fangzhou, Zhang                                  (Another Draft for Comment) and
                 Hua, Zeng                                        other materials.
                 Xiaoqing

                 Chairman of the                                  It reviewed and approved the Legal
                 Committee:                                      Enterprise Construction Plan
Risk
                 Zheng Runfa;                                     (2021-2025) of Guangdong             It agreed that the evaluation results objectively reflected the risk status
Management                                 1   December 24,2021
                 Member: Gu                                       Expressway Development Co., Ltd.     of the Company.
Committee
                 Naikang , Bao                                    and reviewed 2021 Risk Assessment
                 Fangzhou                                         Results.




            60
2021 Annual Report


VIII.The working status of the board of supervisors

The board of supervisors finds out whether the company has risks during the monitoring activities during the repo
rting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.

IX. Particulars about employees.

1.Number of staff, professional structure and educational background


 Number of in-service staff of the parent company(person)                                                   110

 Number of in-service staff of the main subsidiaries(person)                                              2,873

 The total number of the in-service staff(person)                                                         2,983

 The total number of staff receiving remuneration in the current
                                                                                                          2,976
 period(person)

 Retired staff with charges paid by the parent company and
                                                                                                            121
 main subsidiaries (person)

                                                             Professional

                              Category                                      Number of persons(person)

 Operating personnel                                                                                      2,370

 Sale personnel                                                                                               0

 Technology Personnel                                                                                       388

 Financial personnel                                                                                         74

 Management personnel                                                                                       151

 Total                                                                                                    2,983

                                                               Education

                              Category                                      Number of persons(person)

               Holders of master’s degree or above                                                          59

                  Graduates of regular university                                                           626

                   Graduates of junior colleges                                                           1,677

                              Other                                                                         621

                              Total                                                                       2,983


2. Remuneration policies

      Guangdong Expressway follows the principle of adhering to the benefit orientation, taking into account of
efficiency and fairness, and combining incentives with constraints, provides active encouragement and paid
attention to the long-term. According to national laws, regulations and policies, it establishes the annual salary
61
2021 Annual Report


system for the person in charge of the enterprise and the performance salary system for management posts, adopts
the total salary budget to be included in the overall budget management, and makes employees' salary closely
linked with individual performance and enterprise benefits according to the interrelated performance contributions
of labor, management and skills.
     The Company provides various benefits in compliance with laws and regulations, and employees enjoy
various benefits such as social insurance, enterprise annuity, supplementary medical care, trade union mutual
insurance, etc., so as to ensure that employees can share development achievements and thereby arouse their
working passion.

3.Training plan

      Each business department organizes employees to participate in the business post training organized by the
competent department of industry and social professional training institutions according to the employee job
characteristics, employee job performance and industry development trend of the department. In order to help
enterprises develop with high quality and efficiently complete the task of state-owned enterprise reform, it is
planned to carry out special training on state-owned enterprise reform; in order to improve employees' working
satisfaction, it is planned to carry out special training on employees' mental health and physical health care. Carry
out continuing education and training for professional and technical personnel. Carry out various training
activities such as special education and incorruption education in cooperation with the party and the masses,
supervision and examination, etc.

4.Outsourcing situation

□ Applicable √ No Applicable

 X. Specification of profit distribution and capitalizing of common reserves

Formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy
during the reporting period
□Applicable √ Not applicable
During the reporting period, the Company made a profit and the profit available to shareholders of the parent
company was positive, but no cash dividend distribution plan was put forward.
□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
√ Applicable □ Not applicable
 Bonus shares for every ten shares(Shares)                                                                         0

 Cash dividend for every ten shares (Yuan)(Tax-included)                                                      5.70

 A total number of shares as the distribution basis(shares)                                          2,090,806,126

 Cash dividend amount (yuan, including tax                                                         1,191,759,491.82

 Other means (such as repurchase of shares) cash dividend
                                                                                                              0.00
 amount (yuan)

 Total cash dividend (yuan, including tax)                                                         1,191,759,491.82

 Distributable profit (yuan)                                                                       4,644,071,381.03


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2021 Annual Report


 Proportion of cash dividend in the distributable profit                                                                       100%

                                                  Cash dividend distribution policy

 The Company is in a fast growth stage, there for the cash dividend will reach 80% of the profit distribution at least. Cash
 dividend distribution policy.

                                    Details of profit distribution or reserve capitalization Preplan

       1. Limited to 50% of the registered capital of the company, the net profit of the company, i.e. 57,589,364.93 yuan, is to be
 allocated for statutory common reserve fund;
       2.The profit for 2021 is to be distributed as follows: 1,191,759,491.82 yuan. is to be allocated as the fund for dividend
 distribution for 2021. with the total shares at the end of 2021, i.e., 2,090,806,126 shares, as the base, cash dividend of 5.70 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 2021
 annual shareholders’ general meeting makes resolution on dividend distribution.

XI. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or

Other Employee Incentive Measures

□Applicable √ Not applicable
None

XII. Construction and implementation of internal control system during the reporting period

1. Construction and implementation of internal control

      The Company has established a sound corporate governance structure, with clear responsibilities of general
meeting of shareholders, Board of Directors, Board of Supervisors and management, established corporate
governance rules centered by the Articles of Association, rules of procedure of general meeting of shareholders,
Board of Supervisors, Board of Directors and specialized committees thereunder, standardized operation of
general meeting of shareholders, Board of Directors and Board of Supervisors, held and convened relevant
meetings in accordance with the provisions of the Company Law and the Articles of Association, and reached legal
and valid resolutions. The general meeting of shareholders is the highest authority of the Company; the Board of
Supervisors is responsible for the general meeting of shareholders, and the supervision of directors and
management to perform their duties according to law is sound and effective. The Board of Directors shall be
responsible to the general meeting of shareholders and exercise the business decision-making power according to
law. It is provided with an Audit Committee, the independent directors meet the quorum, and the decision-making
procedures and management rules of procedure of the Board of Directors are scientific and transparent; the
management is efficient and rigorous in implementing the resolutions of the Board of Directors.
      The Company has set up 10 functional departments, including Investment Development Department, Human
Resources Department, Financial Management Department, Infrastructure Management Department, Operation
and Management Department, Discipline Inspection and Audit Department, Securities Affairs Department,
Comprehensive Affairs Department, Legal Affairs Department and Party and Mass Work Department. The
distribution of powers and responsibilities and business processes of all functional departments are clear and
reasonable, forming a working mechanism of duty performance, responsibility shouldering, mutual restriction and


63
2021 Annual Report


coordination. The Company has established a perfect control system for parent-subsidiary companies, and formed
a sound internal control system for each subsidiary company. Meanwhile, the Company has established and
improved rules and regulations related to risk assessment, fraud risk control, information and communication, and
maintained effective internal control.
     The Company has set up an Audit Committee under the Board of Directors to supervise the effective
implementation of the Company's internal control and self-evaluation of internal control. The Company has set up
the Discipline Inspection and Audit Department, which is responsible for supervising the establishment and
operation of the Company's internal control system, evaluating the Company's risk control and evaluating the
effectiveness of the Company's internal control. It has defined the standards of internal control defect
identification, rectification procedures and internal control self-evaluation procedures, and formed an effective
internal control supervision system.

2.Details of major internal control defects found during the reporting period

□ Yes √ No

XIII. Management and control of the Company's subsidiaries during the reporting period

□ Applicable √ Not applicable




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2021 Annual Report
XIV.Internal control self-evaluation report or internal control audit report

1.Self-evaluation report on internal control
 Disclosure date of appraisal report on
                                             March 16 ,2022
 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                                                                                                                                                                   100.00%
 the company's consolidated financial
 statements

                                                                                        Standards of Defects Evaluation

                    Type                                                      Financial Report                                                                  Non-financial Report

                                             The qualitative criteria for the evaluation of internal control deficiencies in       The qualitative criteria for the evaluation of internal control deficiencies in
                                             financial reports confirmed by the Company is as follows: The following               non-financial reports confirmed by the Company is as follows: Material
                                             situations (including but not limited to) shall be deemed as “material               deficiencies: serious violations and being sentenced to heavy fines or need
                                             deficiencies” in the internal control of the financial report. (1) There are major   taking criminal responsibility; utterly disregard the rules of law, illegal
 Qualitative standard                        frauds made by the directors, or supervisors, or senior management personnel          behaviors in the operation and management are particularly severe and the
                                             in the company’s management activities; (2)There are material misstatements          circumstance is very bad, which leads to the suspension or cessation to the
                                             in the current financial report but the internal control failed to find the           company's daily operation and management activities, and leads to the
                                             misstatements during its operation; (3) The supervisions made by the                  audit report with a disclaimer of opinion or a negative opinion issued by the
                                             company's audit committee and the internal audit organization on the internal         CPA; the negative news spread all over the country, which caused severe

65
2021 Annual Report
                             control are invalid; (4) The control environment is invalid; (5)The material           damage to the company’s reputation; resulted in decease of a number of
                             deficiencies found and reported to the management but are not corrected                workers or citizens, or resulted in damages that are unable to recover to
                             within a reasonable time; (6)There is an administrative punishment from the            workers or citizens; reached the circumstance(grade II) of major
                             securities regulatory                                                                  environmental event. Significant deficiencies: illegal and being punished;
                             institution due to accounting errors.                                                  disregard the requirements of the company’s management system and the
                             The following situations (including but not limited to) shall be deemed as             relevant rules of law, there are illegal acts of using the authority to seek
                             “significant deficiencies” in the internal control of the financial report and       illegal interests in the work, which significantly affect the efficiency and
                             there are intense signs for the situations becoming “material deficiencies”: (1)     the result of daily operation and management activities and lead to the audit
                             Frauds made by staff in key positions; (2)The supervisory function on                  report with qualified opinion issued by the CPA; the negative news spread
                             compliance is invalid, and the violations of regulations may have a significant        in a region, which caused the large-extent damage to the company’s
                             impact on the reliability of the financial report; (3)The significant deficiencies     reputation; resulted in decease of a worker or a citizen, or resulted in
                             reported to the management but are not                                                 damages that need long time to recover to workers or citizens;
                             corrected within a reasonable period.                                                  reached the circumstance(grade Ⅲ) of big environmental event. General
                             The following situations (including but not limited to) shall be deemed as             deficiencies: minor violations; the awareness of management under in
                             “general deficiencies” in the internal control of the financial report. (1) Frauds   compliance with laws and regulations is weak, lacking of business and
                             made by staff in non key positions, or business operators execute the                  management knowledge, and there are phenomena such as being slack in
                             implementation procedures not strictly conforming to the company’s policy             performing management duties, being passive and poorly execute the
                             but resulted in no significant impact on the reliability of the financial report.      institution in the work, which shall affect the efficiency and the result of
                             (2)The supervisory function on compliance is invalid, and the violations of            daily operation and management activities and lead to small effects to the
                             regulations may not have a significant impact on the reliability of the financial      company’s management goal; the negative news spread within the
                             report; (3)The general deficiencies reported to the management but are not             company, which caused the little-extent damage to the company’s
                             corrected within a reasonable period.                                                  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.
                             The qualitative criteria for the evaluation of internal control deficiencies in        The qualitative criteria for the evaluation of internal control deficiencies in
                             financial reports confirmed by the Company is as follows: Material                     financial reports confirmed by the Company is as follows: Material
                             deficiencies: potential misstatement≧1% of the total amount of the                    deficiencies: potential misstatement≧1% of the total amount of the
 Standards of Quantization
                             owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the total        owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the
                             amount of the owner’s equity or RMB 100 million≤potential misstatement<             total amount of the owner’s equity or RMB 100 million≤potential
                             1% of the total amount of the owner’s equity or RMB 200 million; general              misstatement<1% of the total amount of the owner’s equity or RMB 200

66
2021 Annual Report
                                            deficiencies: potential misstatement<0.5% of the total amount of the owner’s   million; general deficiencies: potential misstatement<0.5% of the total
                                            equity or RMB 100 million Standards of Quantization                              amount of the owner’s equity or RMB 100 million Standards of
                                                                                                                             Quantization



 Number of major defects in financial
                                                                                                                                                                                                        0
 reporting(a)

 Number of major defects in non
                                                                                                                                                                                                        0
 financial reporting (a)

 Number of important defects in financial
                                                                                                                                                                                                        0
 reporting(a)

 Number of important defects in non
                                                                                                                                                                                                        0
 financial reporting(a)




67
2021 Annual Report


2. 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, 2021.

 Disclosure of internal audit report                       Disclosure

 Disclosure date of audit report
                                                           March 16 ,2022
 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

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

XV.Rectification of self-examination problems in special governance actions of listed companies

     According to the Notice on Well Ensuring Self-examination and Self-correction for Special Governance
Actions of Listed Companies issued by Guangdong Securities Regulatory Bureau, the Company carefully combed
the corporate governance including the establishment of the organization, the revision of the company system, the
operation and decision-making of the organization, the code of conduct of controlling shareholders and related
parties, the related party transactions and the internal control standard system.
     Upon self-examination, it is found that the Company strictly follows the requirements of the Company Law,
the Securities Law, the Governance Guidelines for Listed Companies, the Stock Listing Rules and other laws and
regulations to build and improve the corporate governance structure and improve the standard operation level. The
Company has formulated the Articles of Association, the rules of procedure for the operation of the third meetings,
the working rules of the special committees of the Board of Directors, the working rules of the general manager
and other systems, as well as the internal control system covering the Company's financial management,
investment management, information disclosure, related party transactions, external guarantee, fund raising and
other aspects of operation and management, and all these systems have been well implemented.
     The general meeting of shareholders performs its functions effectively in strict accordance with the Company
Law, the Articles of Association and other relevant regulations. The Board of Directors is responsible to the
general meeting of shareholders, bears the ultimate responsibility of daily operation and management, holds
meetings according to legal procedures and exercises its powers. In the attitude of being responsible to all
shareholders, the Board of Supervisors maintains close contact and communication with the Board of Directors
and management, and effectively performs all supervisory powers and obligations.
     The Company must operate independently in terms of business, personnel, assets, institutions and finance for
controlling shareholders.
     The Company rectified the insufficiency in number of meetings held by the professional committee of the

68
2021 Annual Report


Board of Directors every year. During the reporting period, the Audit Committee of the Board of Directors held 4
meetings; the Remuneration and Assessment Committee held 3 meetings; the Strategy Committee and the Risk
Management Committee held 1 meeting respectively. Communication, supervision and verification of internal and
external audit of the Company by the professional committees of the Board of Directors; it reviews the
remuneration policies and programs of directors and senior management personnel of the Company; studies the
strategic development direction of the Company and the establishment of enterprise risk management system, puts
forward guiding opinions for the establishment of enterprise risk management system, and provides advice and
suggestions for major decisions of the Board of Directors.




69
2021 Annual Report




                            V. Environmental & Social Responsibility

I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
□Applicable √ Not applicable
Refer to other environmental information disclosed by key pollutant discharge units
     The Company and its subsidiaries shall not be included into the list of key pollutant discharge units, such as
water, atmosphere, soil and sound environment according to the Management Regulations of the List of Key
Pollutant Discharge Units (for trial implementation). The Company advocates a green office with low carbon and
environmental protection, and conscientiously implements environmental protection laws and regulations such as
the Environmental Protection Law of the People's Republic of China, the Water Pollution Prevention Law of the
People's Republic of China, the Air Pollution Prevention Law of the People's Republic of China, the
Environmental Noise Pollution Prevention Law of the People's Republic of China, and the Solid Waste Pollution
Prevention Law of the People's Republic of China in daily operations. During the reporting period, no punishment
is imposed due to environmental protection violations.
Measures and effects taken to reduce its carbon emissions during the reporting period
□Applicable √ Not applicable
Reasons for not disclosing other environmental information
None
II. Social responsibilities
      In 2021, the Company strove to overcome the repeated adverse effects of the epidemic, worked hard and
overcame difficulties. While strictly implementing various prevention and control measures to achieve zero
infection in the company's system, it also adhered to the front line of epidemic prevention, ensured unblocked
roads, made overall plans to promote the prevention and control of the normalized epidemic and all tasks of the
Company, and effectively promoted the stabilization and improvement of economic operation.
      1. In order to well ensure epidemic prevention and control, the Company's participating and holding
expressway companies actively responded to the higher-level policies, and the party committee and management
team of the Company actively mobilized volunteers from the Party, League and the Trade Union to participate in
the epidemic prevention and control, effectively promoting the normalization of epidemic prevention and control
work.
      2. On major holidays, the toll-free policy, intermittent free release and green channel preferential policy for
passenger cars with less than seven seats on the expressway continue to be implemented, and Guang-Foshan
Company, Foshan-Kaiping Branch, East Guangzhou-Zhuhai Company and Guangzhou-Huizhou Company
earnestly achieve "awareness established in place, personnel provided in place, responsibilities implemented in
place and measures assigned in place" and successfully complete the tasks of ensuring safety and smoothness.
      3. Actively respond to government policies, legally provide preferential and relief policies according to
regulations, and reduce transportation costs of enterprises and public travel costs.
      4. Conscientiously implement the government task, and effectively guarantee the smooth operation of the
system after canceling the transformation and switching of ETC charging system of provincial toll stations. The
toll stations of the Company's holding sections are with smooth traffic, the service points of Unitoll Expressway in

70
2021 Annual Report


Guangdong operated orderly, the toll display and data transmission of toll lanes are correct, the lane configuration
is continuously optimized, and the ETC system is generally stable.

III.Consolidate and expand the achievements of poverty alleviation and rural revitalization

      The Company actively responded to the call of the provincial party committee and the provincial government
for the 2021 Guangdong Poverty Alleviation Day, and after deliberation and approval by the Board of Directors, it
donated RMB 12 million to the Guangdong Charity Federation in December 2021.




71
            2021 Annual Report


                                                                                       VI. Important Events

            I. 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                        Fulfillment
         Commitment                              Type                                                         Contents                                                                 commitment
                                  maker



Commitment on share

reform

Commitment in the

 acquisition report or the

 report on equity changes

                                                               The predicted net profit of Guangdong Guanghui Expressway Co., Ltd. after deducting
                             Guangdong                         non-recurring gains and losses in 2020, 2021 and 2022 (hereinafter referred to as "predicted net
                             Provincial                        profit") is RMB 652,477,500, RMB 1,112,587,300 and RMB 1,234,200,900 respectively.                                                   Normal
                                            Performance                                                                                                            November 25,
                             Freeway                           According to the special audit opinion issued by the accounting firm, if the accumulated realized                      2020-2022     performanc
                                            commitment                                                                                                             2020
                             Co.,Ltd.                          net profit of Guangdong Guangzhou-Huizhou Expressway Co., Ltd. at the end of any fiscal year                                         e
Commitment made upon the                                       does not reach the accumulated predicted net profit within the compensation period, Guangdong
assets replacement                                             Provincial Freeway Co.,Ltd. will compensate in cash as agreed.

                                            Commitment         1. The explanations, commitment and information provided by the Company for this transaction
                                            on authenticity,   are authentic, accurate and complete, and there are no false records, misleading statements or                                       Normal
                             Guangdong                                                                                                                             November 25,       Permanently
                                            accuracy and       major omissions. 2. The information provided by the Company to the intermediaries that provide                                       performanc
                             Expressway                                                                                                                            2020               effective
                                            completeness       professional services such as auditing, evaluation, legal and financial consulting for this                                          e
                                            of the             transaction is authentic, accurate and complete original written information or duplicate

            72
2021 Annual Report
                                 information        information, and the duplicate or photocopy of the information is consistent with its original
                                 provided           information or original copy; The signatures and seals of all documents are authentic, and the
                                                    legal procedures required for signing and sealing have been fulfilled and legal authorization has
                                                    been obtained; There are no false records, misleading statements or major omissions. 3. The
                                                    Company guarantees that it will provide timely information about this transaction in accordance
                                                    with relevant laws and regulations, relevant regulations of China Securities Regulatory
                                                    Commission and Shenzhen Stock Exchange, ensure the authenticity, accuracy and completeness
                                                    of such information, and guarantee that there are no false records, misleading statements or major
                                                    omissions. 4. The Company shall bear individual and joint legal responsibilities for the
                                                    authenticity, accuracy and completeness of the information provided or disclosed for this
                                                    exchange. In case of any loss caused to investors due to violation of the above commitments, the
                                                    Company will bear corresponding liability for compensation according to law.

                                                    1. The explanations, commitment and information provided by the Promisee for this transaction
                                                    are authentic, accurate and complete, and there are no false records, misleading statements or
                                                    major omissions. 2. The information provided by the Promisee to the intermediaries that provide
                                                    professional services such as auditing, evaluation, legal and financial consulting for this
                                                    transaction is authentic, accurate and complete original written information or duplicate
                                                    information, and the duplicate or photocopy of the information is consistent with its original
               All directors,    Commitment
                                                    information or original copy; The signatures and seals of all documents are authentic, and the
               supervisors and   on authenticity,
                                                    legal procedures required for signing and sealing have been fulfilled and legal authorization has
               senior            accuracy and                                                                                                                                           Normal
                                                    been obtained; There are no false records, misleading statements or major omissions. 3. The            November 25,   Permanently
               management        completeness                                                                                                                                           performanc
                                                    Promisee guarantees that it will provide timely information about this transaction in accordance       2020           effective
               personnel of      of the                                                                                                                                                 e
                                                    with relevant laws and regulations, relevant regulations of China Securities Regulatory
               Guangdong         information
                                                    Commission and Shenzhen Stock Exchange, ensure the authenticity, accuracy and completeness
               Expressway        provided
                                                    of such information, and guarantee that there are no false records, misleading statements or major
                                                    omissions. 4. If this transaction is suspected of false records, misleading statements or major
                                                    omissions in the information provided or disclosed, and is put on file for investigation by judicial
                                                    organs or by China Securities Regulatory Commission, the transfer of its shares with interests in
                                                    the listed company will be suspended until the investigation conclusion of the case is obtained. 5.
                                                    The Promisee shall bear individual and joint legal responsibilities for the authenticity, accuracy
73
2021 Annual Report
                                               and completeness of the information provided or disclosed for this exchange. In case of any loss
                                               caused to investors due to violation of the above commitments, the Promisee will bear
                                               corresponding liability for compensation according to law.

                                               1. I promise not to transfer benefits to other units or individuals without compensation or under
                                               unfair conditions, nor to damage the interests of the Company by other means. 2. I promise to
                                               restrain my job consumption behavior. 3. I promise not to use the assets of the Company to
               All directors,
                                 Commitment    engage in any investment and consumption activities unrelated to my duties. 4. I promise that the
               supervisors and
                                 on filling    salary system formulated by the Board of Directors or the Remuneration Committee of
               senior                                                                                                                                                               Normal
                                 measures to   Guangdong Expressway will be linked with the implementation of the reward filling measures of        November 25,   Permanently
               management                                                                                                                                                           performanc
                                 dilute        Guangdong Expressway. 5. If Guangdong Expressway plans to implement equity incentive, I              2020           effective
               personnel of                                                                                                                                                         e
                                 immediate     promise that the exercise conditions of equity incentive of Guangdong Expressway to be
               Guangdong
                                 reward        announced will be linked with the implementation of the reward filling measures. 6. In case of
               Expressway
                                               any loss caused to Guangdong Expressway or its shareholders due to violation of the above
                                               commitments or refusal to perform the above commitments, I will bear corresponding
                                               compensation responsibilities according to law.

                                               1. The Company and its holding subsidiaries will not use the controlling shareholder's holding                      This letter of
                                               relationship with Guangdong Expressway to conduct business activities that harm the legitimate                      commitment
                                               rights and interests of Guangdong Expressway, its minority shareholders and its holding                             is valid from
                                               subsidiaries. 2. The Company and its holding subsidiaries will not use the information obtained                     the date of
                                               from Guangdong Expressway and its holding subsidiaries to engage in the main business                               signing to
               Guangdong
                                 Commitment    competing with Guangdong Expressway or its holding subsidiaries, and will not engage in any                         the date
               Provincial                                                                                                                                                           Normal
                                 on avoiding   acts or activities that damage or may damage the legitimate rights and interests of Guangdong                       when the
               Freeway                                                                                                                              June 26,2015                    performanc
                                 horizontal    Expressway, its minority shareholders and its holding subsidiaries. 3. If the Company and its                       Provincial
               Co.,Ltd.                                                                                                                                                             e
                                 competition   holding subsidiaries transfer any toll roads, bridges, tunnels and related ancillary facilities or                  Expressway
                                               rights invested or managed by the Company to a company other than Guangdong                                         is no longer
                                               Communications Group Co., Ltd. and the company directly or indirectly controlled by it,                             controlled by
                                               Guangdong Expressway will be entitled to the preemptive right under the same conditions, unless                     the
                                               the transferee is explicitly designated by the relevant government authorities under the premise                    controlling
                                               permitted by relevant laws and regulations. 4. In the future, if the Company and its holding                        shareholder


74
2021 Annual Report
                                             subsidiaries invest in the construction of expressways parallel to or in the same direction within                   of
                                             20 km from each side of the expressway controlled by Guangdong Expressway, Guangdong                                 Guangdong
                                             Expressway will enjoy the priority of investment over Guangdong Communications Group Co.,                            Expressway
                                             Ltd. and its directly or indirectly controlled companies except Guangdong Expressway and its
                                             holding subsidiaries, except for the projects whose investment entities are clearly designated by
                                             the relevant government authorities under the premise permitted by relevant laws and regulations.

                                                                                                                                                                  This letter of
                                                                                                                                                                  commitment
                                                                                                                                                                  is valid from
                                                                                                                                                                  the date of
                                                                                                                                                                  signing to
                                             The Company will not damage the independence of Guangdong Expressway due to the increase
                                                                                                                                                                  the date
                            Commitment       of shares held by the Company after the completion of this major asset restructuring, and will
               Guangdong                                                                                                                                          when the
                            on maintaining   continue to maintain the principle of separation from Guangdong Expressway in terms of assets,
               Provincial                                                                                                                                         Provincial       Normal
                            the              personnel, finance, organization and business, and strictly abide by the relevant regulations of
               Freeway                                                                                                                             June 26,2015   Expressway       performanc
                            independence     China Securities Regulatory Commission on the independence of listed companies, and will not
               Co.,Ltd.                                                                                                                                           is no longer     e
                            of listed        use Guangdong Expressway to provide guarantees, nor occupy Guangdong Expressway funds
                                                                                                                                                                  controlled by
                            companies        illegally, so as to maintain and protect the independence of Guangdong Expressway and protect
                                                                                                                                                                  the
                                             the legitimate rights and interests of other shareholders of Guangdong Expressway.
                                                                                                                                                                  controlling
                                                                                                                                                                  shareholder
                                                                                                                                                                  of
                                                                                                                                                                  Guangdong
                                                                                                                                                                  Expressway

                            Commitment       1. After the completion of this major asset restructuring, the Company and the companies directly                    This letter of
               Guangdong
                            on reducing      or indirectly controlled by the Company and other related parties will try to avoid related                          commitment
               Provincial                                                                                                                                                          Normal
                            and              transactions with Guangdong Expressway and its holding subsidiaries; Related transactions that        June 26,       is valid from
               Freeway                                                                                                                                                             performanc
                            standardizing    are really necessary and unavoidable are carried out in accordance with the principles of fairness,   2015           the date of
               Co.,Ltd.                                                                                                                                                            e
                            related          equity and compensation of equal value. The transaction price is determined at a reasonable price                    signing to
                            transactions     recognized by the market. The transaction approval procedures and information disclosure                             the date

75
2021 Annual Report
                                                 obligations are performed in accordance with relevant laws, regulations and normative                                when the
                                                 documents, and the interests of Guangdong Expressway and its minority shareholders are                               Provincial
                                                 effectively protected. 2. The Company guarantees to exercise shareholders' rights and fulfill                        Expressway
                                                 shareholders' obligations in strict accordance with relevant laws and regulations, rules and                         is no longer
                                                 normative documents promulgated by China Securities Regulatory Commission, business rules                            controlled by
                                                 promulgated by Shenzhen Stock Exchange and Articles of Association of Guangdong Provincial                           the
                                                 Expressway Development Co., Ltd., and it will not use the controlling position of Guangdong                          controlling
                                                 Expressway's controlling shareholders to seek improper benefits or damage the legitimate rights                      shareholder
                                                 and interests of Guangdong Expressway and its minority shareholders.                                                 of
                                                                                                                                                                      Guangdong
                                                                                                                                                                      Expressway

                                                 1. The information involved in the explanations and commitment provided by the Company for
                                                 this transaction are authentic, accurate and complete, and there are no false records, misleading
                                                 statements or major omissions. 2. The information provided by the Company to the intermediaries
                                                 that provide professional services such as auditing, evaluation, legal and financial consulting for
                              Commitment
                                                 this transaction is authentic, accurate and complete original written information or duplicate
               Guangdong      on authenticity,
                                                 information, and the duplicate or photocopy of the information is consistent with its original
               Provincial     accuracy and                                                                                                                                             Normal
                                                 information or original copy; The signatures and seals of all documents are authentic, and the        November 25,   Permanently
               Freeway        completeness                                                                                                                                             performanc
                                                 legal procedures required for signing and sealing have been fulfilled and legal authorization has     2020           effective
               Co.,Ltd.       of the                                                                                                                                                   e
                                                 been obtained; There are no false records, misleading statements or major omissions. 3. The
                              information
                                                 Company guarantees that it will provide timely information about this transaction in accordance
                              provided
                                                 with relevant laws and regulations, relevant regulations of China Securities Regulatory
                                                 Commission and Shenzhen Stock Exchange, ensure the authenticity, accuracy and completeness
                                                 of such information, and guarantee that there are no false records, misleading statements or major
                                                 omissions.

                              Commitment         The Company and the companies directly or indirectly controlled by the Company except                                This letter of
               Guangdong                                                                                                                                                               Normal
                              on maintaining     Guangdong Expressway and its holding subsidiaries will not damage the independence of                 June 18,       commitment
               Communicatio                                                                                                                                                            performanc
                              the                Guangdong Expressway due to the increase in the shares of Guangdong Expressway held by the            2015           is valid from
               ns Group                                                                                                                                                                e
                              independence       Company and the companies directly or indirectly controlled by the Company except Guangdong                          the date of


76
2021 Annual Report
                              of listed     Expressway and its holding subsidiaries after the completion of this major asset restructuring, and                     signing to
                              companies     will continue to maintain the principle of separation from Guangdong Expressway in terms of                             the date
                                            assets, personnel, finance, organization and business, and strictly abide by the relevant regulations                   when the
                                            of China Securities Regulatory Commission on the independence of listed companies, and will                             Provincial
                                            not use Guangdong Expressway to provide guarantees, nor occupy Guangdong Expressway funds                               Expressway
                                            illegally, so as to maintain and protect the independence of Guangdong Expressway and protect                           is no longer
                                            the legitimate rights and interests of other shareholders of Guangdong Expressway.                                      controlled by
                                                                                                                                                                    the
                                                                                                                                                                    controlling
                                                                                                                                                                    shareholder
                                                                                                                                                                    of
                                                                                                                                                                    Guangdong
                                                                                                                                                                    Expressway

                                            1. The Company and the companies directly or indirectly controlled by the Company except
                                                                                                                                                                    This letter of
                                            Guangdong Expressway and its holding subsidiaries will not use the controlling shareholder's
                                                                                                                                                                    commitment
                                            holding relationship with Guangdong Expressway to conduct business activities that harm the
                                                                                                                                                                    is valid from
                                            legitimate rights and interests of Guangdong Expressway, its minority shareholders and its
                                                                                                                                                                    the date of
                                            holding subsidiaries. 2. The Company and the companies directly or indirectly controlled by the
                                                                                                                                                                    signing to
                                            Company except Guangdong Expressway and its holding subsidiaries will not use the information
                                                                                                                                                                    the date
                                            obtained from Guangdong Expressway and its holding subsidiaries to engage in the main business
                              Commitment                                                                                                                            when the
               Guangdong                    competing with Guangdong Expressway or its holding subsidiaries, and will not engage in any                                              Normal
                              on avoiding                                                                                                                           Provincial
               Communicatio                 acts or activities that damage or may damage the legitimate rights and interests of Guangdong            June 26,2015                    performanc
                              horizontal                                                                                                                            Expressway
               ns Group                     Expressway, its minority shareholders and its holding subsidiaries. 3. If the Company and other                                          e
                              competition                                                                                                                           is no longer
                                            companies directly or indirectly controlled by the Company except Guangdong Expressway and
                                                                                                                                                                    controlled by
                                            its holding subsidiaries transfer any toll roads, bridges, tunnels and related ancillary facilities or
                                                                                                                                                                    the
                                            interests invested or managed by the Company to companies other than the Company directly or
                                                                                                                                                                    controlling
                                            indirectly controlled by the Company, Guangdong Expressway shall be entitled to the preemptive
                                                                                                                                                                    shareholder
                                            right under the same conditions, unless the transferee is explicitly designated by the relevant
                                                                                                                                                                    of
                                            government authorities under the premise permitted by relevant laws and regulations. 4. In the
                                                                                                                                                                    Guangdong
                                            future, if the Company and the companies directly or indirectly controlled by the Company except
77
2021 Annual Report
                                                 Guangdong Expressway and its holding subsidiaries invest in the construction of expressways                          Expressway
                                                 parallel to or in the same direction within 20 km from each side of the expressway controlled by
                                                 Guangdong Expressway, Guangdong Expressway will be entitled to the priority investment right
                                                 compared with the Company and the companies directly or indirectly controlled by the Company
                                                 except Guangdong Expressway and its holding subsidiaries, except for the projects whose
                                                 investment entities are clearly designated by the relevant government authorities under the
                                                 premise permitted by relevant laws and regulations.

                                                 1. After the completion of this major asset restructuring, the Company and other companies and                       This letter of
                                                 other related parties directly or indirectly controlled by the Company except Guangdong                              commitment
                                                 Expressway and its holding subsidiaries will try to avoid related transactions with Guangdong                        is valid from
                                                 Expressway and its holding subsidiaries; Related transactions that are really necessary and                          the date of
                                                 unavoidable are carried out in accordance with the principles of fairness, equity and                                signing to
                                                 compensation of equal value. The transaction price is determined at a reasonable price recognized                    the date
                              Commitment
                                                 by the market. The transaction approval procedures and information disclosure obligations are                        when the
                              on reducing
               Guangdong                         performed in accordance with relevant laws, regulations and normative documents, and the                             Provincial       Normal
                              and
               Communicatio                      interests of Guangdong Expressway and its minority shareholders are effectively protected. 2. The     June 18,2015   Expressway       performanc
                              standardizing
               ns Group                          Company guarantees to exercise shareholders' rights and fulfill shareholders' obligations in strict                  is no longer     e
                              related
                                                 accordance with relevant laws and regulations, rules and normative documents promulgated by                          controlled by
                              transactions
                                                 China Securities Regulatory Commission, business rules promulgated by Shenzhen Stock                                 the
                                                 Exchange and Articles of Association of Guangdong Provincial Expressway Development Co.,                             controlling
                                                 Ltd., and it will not use the controlling position of controlling shareholders to seek improper                      shareholder
                                                 benefits or damage the legitimate rights and interests of Guangdong Expressway and its minority                      of
                                                 shareholders.                                                                                                        Guangdong
                                                                                                                                                                      Expressway

                              Commitment         1. The explanations, commitment and information provided by the Company for this transaction
               Guangdong      on authenticity,   are authentic, accurate and complete, and there are no false records, misleading statements or                                        Normal
                                                                                                                                                       November 25,   Permanently
               Communicatio   accuracy and       major omissions. 2. The information provided by the Company to the intermediaries that provide                                        performanc
                                                                                                                                                       2020           effective
               ns Group       completeness       professional services such as auditing, evaluation, legal and financial consulting for this                                           e
                              of the             transaction is authentic, accurate and complete original written information or duplicate

78
2021 Annual Report
                              information     information, and the duplicate or photocopy of the information is consistent with its original
                              provided        information or original copy; The signatures and seals of all documents are authentic, and the
                                              legal procedures required for signing and sealing have been fulfilled and legal authorization has
                                              been obtained; The validity of the originals of each document has not been revoked within its
                                              validity period, and such originals are held by their respective legal holders up to now; There are
                                              no false records, misleading statements or major omissions. 3. The Company guarantees that if
                                              there are false records, misleading statements or major omissions in the information provided or
                                              disclosed for this transaction, which are filed for investigation by judicial organs or filed for
                                              investigation by China Securities Regulatory Commission, before the investigation conclusion is
                                              revealed, the Company promises to suspend the transfer of shares with interests in Guangdong
                                              Expressway, and submit the written application for suspension of transfer and the stock account to
                                              the Board of Directors of Guangdong Expressway within two trading days after receiving the
                                              notice of filing inspection, and the Board of Directors of Guangdong Expressway will apply for
                                              locking on behalf of the Company to the stock exchange and the registration and clearing
                                              company; If the application for locking is not submitted within two trading days, the Board of
                                              Directors of Guangdong Expressway is authorized to directly submit the identity information and
                                              account information of the Company to the stock exchange and the registration and clearing
                                              company after verification and apply for locking; If the Board of Directors of Guangdong
                                              Expressway fails to submit the Company's identity information and account information to the
                                              stock exchange and the registration and clearing company, the stock exchange and the registration
                                              and clearing company are authorized to directly lock the relevant shares. If the investigation
                                              results show that there are violations of laws and regulations, the Company promises to lock in
                                              shares and use them voluntarily for compensation arrangements of relevant investors. 4. The
                                              Company shall bear individual and joint legal responsibilities for the authenticity, accuracy and
                                              completeness of the information provided or disclosed for this exchange. In case of any loss
                                              caused to Guangdong Expressway or investors due to violation of the above commitments, the
                                              Company will bear corresponding liability for compensation according to law.

                              Commitment      1. It will not interfere with the business activities of Guangdong Expressway beyond authority,
               Guangdong                                                                                                                            November 25,   Permanently   Normal
                              on fulfilling   and will not encroach on the interests of Guangdong Expressway. 2. In case of any loss caused to
               Communicatio                                                                                                                         2020           effective     performanc
                              filling         Guangdong Expressway or investors due to violation of the above commitments, the Company
79
2021 Annual Report
               ns Group       measures to      will bear corresponding liability for compensation according to law.                                                              e
                              dilute
                              immediate
                              reward

                                               1. The land occupied and used by Guangzhou-Huizhou Expressway with a total area of
                                               3,732,185.08 square meters has not yet obtained the ownership certificate. The Company
                                               undertakes that: (1) The ownership of the land use right of the above-mentioned land is clear with
                                               no dispute, and Guangzhou-Huizhou Expressway can legally occupy and use the
                                               above-mentioned land; (2) Guangzhou-Huizhou Expressway will continue to effectively occupy
                                               and use the relevant land before the ownership certificate is obtained, and will not be materially
                                               adversely affected thereby; (3) After the completion of this transaction, if Guangdong Expressway
                                               suffers losses as a shareholder of Guangzhou-Huizhou Expressway, for losses suffered because
                                               Guangzhou-Huizhou Expressway occupies and uses the above-mentioned land without ownership
                                               certificate, or engages in engineering construction on such land, the Company will bear the actual
                                               losses suffered by Guangdong Expressway. 2. The land occupied and used by
                              Commitment
                                               Guangzhou-Huizhou Expressway with a total area of 12,324,867.92 square meters is currently
               Guangdong      on land and                                                                                                                                        Normal
                                               registered under the name of Guangdong Changda Highway Engineering Co., Ltd. (now renamed            November 25,   Permanently
               Communicatio   real estate of                                                                                                                                     performanc
                                               as "Poly Changda Engineering Co., Ltd.", hereinafter referred to as "Changda Company"), of           2020           effective
               ns Group       Guanghui                                                                                                                                           e
                                               which 8,799,336.79 square meters of land has obtained the ownership certificate, and the other
                              Expressway
                                               3,525,531.13 square meters of land has not yet obtained the ownership certificate. The Company
                                               promises that after the completion of this transaction, if Guangdong Expressway suffers losses as
                                               a shareholder of Guangzhou-Huizhou Expressway and because Guanghui Expressway occupies
                                               and uses the land registered under the name of Changda Company, the Company will bear the
                                               actual losses suffered by Guangdong Expressway. 3. The property ownership certificate has not
                                               been obtained for the property with a total area of 72,364.655 square meters occupied and used by
                                               Guangzhou-Huizhou Expressway. The Company promises that: (1) The ownership of the
                                               above-mentioned property without ownership certificate currently used by Guanghui Expressway
                                               is clear with no dispute, and Guangzhou-Huizhou Expressway can legally occupy and use the
                                               above-mentioned property; (2) Guangzhou-Huizhou Expressway will continue to effectively
                                               occupy and use the above-mentioned property before the property ownership certificate is
80
2021 Annual Report
                                                 obtained, and will not be materially adversely affected; (3) After the completion of this
                                                 transaction, if Guangdong Expressway suffers losses as a shareholder of Guangzhou-Huizhou
                                                 Expressway and because Guangzhou-Huizhou Expressway occupies and uses the
                                                 above-mentioned property without relevant property ownership certificate, the Company will bear
                                                 the actual losses suffered by Guangdong Expressway.

                                                 1. The explanations, commitment and information provided by the Company for this transaction
                                                 are authentic, accurate and complete, and there are no false records, misleading statements or
                                                 major omissions. 2. The information provided by the Company to the intermediaries that provide
                                                 professional services such as auditing, evaluation, legal and financial consulting for this
                                                 transaction is authentic, accurate and complete original written information or duplicate
                              Commitment         information, and the duplicate or photocopy of the information is consistent with its original
                              on authenticity,   information or original copy; The signatures and seals of all documents are authentic, and the
               Guangdong
                              accuracy and       legal procedures required for signing and sealing have been fulfilled and legal authorization has                                     Normal
               Guanghui                                                                                                                                November 25,    Permanently
                              completeness       been obtained; There are no false records, misleading statements or major omissions. 3. The                                           performanc
               Expressway                                                                                                                              2020            effective
                              of the             Company guarantees that it will provide timely information about this transaction in accordance                                       e
               Co., Ltd.
                              information        with relevant laws and regulations, relevant regulations of China Securities Regulatory
                              provided           Commission and Shenzhen Stock Exchange, ensure the authenticity, accuracy and completeness
                                                 of such information, and guarantee that there are no false records, misleading statements or major
                                                 omissions. 4. The Company shall bear individual and joint legal responsibilities for the
                                                 authenticity, accuracy and completeness of the information provided or disclosed for this
                                                 exchange. In case of any loss caused to investors due to violation of the above commitments, the
                                                 Company will bear corresponding liability for compensation according to law.

                                                 In order to promote the smooth progress of the issue of shares, the cash purchase of assets and the                   It continued
                                                 raising of matching funds (hereinafter referred to as "the major asset restructuring") approved by                    to push
               Guangdong
                                                 Guangdong Expressway Development Co., Ltd. at its second extraordinary shareholders' meeting                          forward the     Normal
               Communicatio   Other
                                                 in 2015, with regard to all the land and real estate (hereinafter referred to as "relevant land and   April 27,2019   progress of     performanc
               n Group Co.,   commitment
                                                 real estate") owned by Guangdong Fokai Expressway Co., Ltd. (hereinafter referred to as "Fokai                        accreditation   e
               Ltd
                                                 Company") and Jingzhu Expressway Guangzhu Section Co., Ltd. (hereinafter referred to as                               , and
                                                 "Guangzhu East Company") without ownership certificates (hereinafter referred to as "relevant                         completed


81
2021 Annual Report
                     land and real estate") disclosed in the report of Guangdong Expressway Development Co., Ltd.           the
                     on issuing shares and paying cash to purchase assets and raising matching funds and related            registration
                     transactions, the company undertook to urge Fokai Company and Guangzhu East Company to go              procedures
                     through the ownership registration formalities according to the following plan under the condition     of relevant
                     that it is conducive to safeguarding the rights and interests of listed companies; Continued to push   land and real
                     forward the progress of accreditation, and completed the registration procedures of relevant land      estate
                     and real estate ownership within three years after the relevant policies were clear and the relevant   ownership
                     land and real estate met the conditions for handling the registration procedures of ownership, in      within three
                     accordance with the relevant laws and regulations and the requirements of the competent                years after
                     government departments.                                                                                the relevant
                                                                                                                            policies were
                                                                                                                            clear and the
                                                                                                                            relevant land
                                                                                                                            and real
                                                                                                                            estate met
                                                                                                                            the
                                                                                                                            conditions
                                                                                                                            for handling
                                                                                                                            the
                                                                                                                            registration
                                                                                                                            procedures
                                                                                                                            of
                                                                                                                            ownership,
                                                                                                                            in
                                                                                                                            accordance
                                                                                                                            with the
                                                                                                                            relevant laws
                                                                                                                            and
                                                                                                                            regulations
                                                                                                                            and the

82
            2021 Annual Report
                                    requirements
                                    of the
                                    competent
                                    government
                                    departments

Commitments made upon

first issuance or refinance

Equity incentive

commitment

Other commitments made to

 minority shareholders

Completed on time(Y/N)        Yes




            83
2021 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
                                                   Current       Current     Reasons for
     Earnings                                                                                 Original      Original
                                                   forecast      Actual      not meeting
  forecast asset     Forecast     Forecast end                                                forecast      forecast
                                                 performance   performance   the forecast
     or project      start time         time                                                 disclosure    disclosure
                                                 (RMB 10,     (RMB 10,          (if
       name                                                                                     date            index
                                                   000)         000)        applicable)

 Guanghui                         December                                   Guanghui                     December
                   January 1,                                                               January 1,
 Expressway                       31,             111,258.73    110,544.44   Expressway                   31,
                   2020                                                                     2020
 Co., Ltd.                        2022                                       Co., Ltd.                    2022

Commitments made by the company’s shareholders and counterparties in the reporting year’s operating performan
ce
□ Applicable √ Not applicable
The completion of performance commitments and its impact on the impairment test of goodwill
    In 2020, Guangzhuo-Huizhou Company realized a net profit of RMB 780,305,000, with a net profit of RMB
769,232,600 after deducting non-recurring gains and losses. The actual profit was RMB 652,477,500, RMB
116,755,100 higher than the profit forecast, and the profit forecast completion rate was 117.89%. In 2021,
Guangzhou-Huizhou Company realized a net profit of RMB 1,111,564,500, with a net profit of RMB
1,105,444,400 after deducting non-recurring gains and losses, the actual profit of RMB 7,142,900 was less than
the profit forecast by RMB 1,112,587,300, and the profit forecast completion rate was 99.36%.
    By the end of 2021, the accumulated net profit (excluding non-recurring gains and losses) was RMB
1,874,677,000, RMB 109,612,200 higher than the accumulated profit forecast of RMB 1,765,064,800, and the
profit forecast completion rate was 106.21%.

 II. Particulars about the non-operating occupation of funds by the controlling shareholder

□ Applicable √ Not applicable

None

III. Illegal provision of guarantees for external parties

□ Applicable √ Not applicable

None

IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"

□ Applicable √ Not applicable




84
2021 Annual Report


None

V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board

□ Applicable √ Not applicable

 VI. Explain change of the accounting policy, accounting estimate and measurement methods as compared

 with the financial reporting of last year.

√Applicable □ Not applicable
     (I) Changes in accounting policies
    1. On December 7, 2018, the Ministry of Finance issued the Accounting Standards for Business Enterprises
No.21-Lease (Revised in 2018) (No.35 [2018] of the Ministry of Finance) (hereinafter referred to as "New Leasing
Standards"). The Sixteenth Meeting of the Ninth Board of Directors of the Company passed the resolution on
March 25, 2021, and the Company implemented the aforementioned New Leasing Standards from January 1,
2021, and changed relevant accounting policies according to the New Leasing Standards.
    According to the New Leasing Standards, for the contracts that existed before the first execution date, the
Company re-evaluated whether they are leases or include leases. For the lease contract with the Company as the
lessee, the Company only chose to adjust the cumulative impact of the lease contract that has not been completed
on January 1, 2021. For the first implementation of the cumulative impact amount adjustment, the retained
earnings and other related items in the financial statements at the beginning of the current period for first
implementation (that is, January 1, 2021) were not adjusted for the comparable period information. For the
operating lease on the first implementation date, the lease liability was measured as the present value discounted
by the lessee based on the remaining lease payment according to the incremental loan interest rate on the first
implementation date.
     According to each lease option, the Company measured the right-to-use assets according to the amount equal
to the lease liabilities and the necessary adjustment based on the prepaid rent. In accordance with the provisions of
Accounting Standards for Business Enterprises No.8-Impairment of Assets, the impairment test of the right-to-use
assets was carried out and corresponding accounting treatment was conducted.
    For details, please refer to Section X, Financial Report VII, Notes to Consolidated Financial Statement Items,
29. Changes in Important Accounting Policies and Accounting Estimates.
    2. As the participating companies Guangdong Yuepu Microfinance Co., Ltd. and Guoyuan Securities Co., Ltd.
implemented the new accounting standards to adjust their opening balance, the Company adopted the equity
method to calculate and adjust the opening balance of the 2021 financial statements accordingly.
    For details, please refer to Section X, Financial Report VII, Notes to Consolidated Financial Statement Items,
29. Changes in Important Accounting Policies and Accounting Estimates.
    3. According to relevant laws and regulations, the Company implemented centralized and unified
management of the funds of member units through the internal settlement center, and listed the funds in the "Other
current liabilities". On December 30, 2021, the Ministry of Finance issued Interpretation No.15 of Accounting
Standards for Business Enterprises, which clearly listed the above-mentioned collected funds in the item of "Other
payables", and the Company adjusted and presented them according to the requirements of Interpretation No.15.
     (II) Changes in accounting estimates
     On June 28, 2021, the Company held the Nineteenth (provisional) meeting of the Ninth Board of Directors,

85
2021 Annual Report


which passed the Proposal on the Changes in Accounting Estimates, agreed that the Company should change the
depreciation period of Sanbao-Shuikou section of Shenyang-Haikou National Expressway from June 1, 2021, and
extend the depreciation period to June 14, 2044. The future applicable law was adopted by the Company for this
matter, and for the impact on the consolidated financial statements and the financial statements of the parent
company, see Section X, VIII. Financial Report, Notes to Consolidated Financial Statement Item, 29. Changes in
Important Accounting Policies and Accounting Estimates.

VII.Explain change of the consolidation scope as compared with the financial reporting of last year.

□Applicable √ Not applicable
None

VIII. Engagement/Disengagement of CPAs

CPAs currently engaged
                                                             Yong Tuo Certified Public Accountants (Special General
 Name of the domestic CPAs
                                                             Partnership)

 Remuneration for domestic accounting firm (Ten thousands
                                                                                                                  127.20
 yuan)

 Successive years of the domestic CPAs offering auditing
                                                                                                                         2
 services

 Name of CPA                                                                                   Shi Shaoyu, Huang Zhiyan

 Continuous years of audit services of certified public
                                                                                                                1-2 years
 accountants of domestic public accounting firms

 Name of the Overseas CPAs(If any)                                                                                  None

 Remumeration for overseas accounting firm (Ten thousands
                                                                                                                         0
 yuan)(If any)

 Successive years of the overseas CPAs offering auditing
                                                                                                                      None
 services(If any)

 Name of CPA(If any)                                                                                                None

 Continuous years of audit services of certified public
                                                                                                                      None
 accountants of overseas public accounting firms(if any)

Has the CPAs been changed in the current period
□Yes √ No
A detailed explanation of the change of employment and accounting firm
□ Applicable √ Not applicable

IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly

Report

□Applicable √ Not applicable


86
 2021 Annual Report


 X. Relevant Matters of Bankruptcy Reorganization

 □Applicable √ Not applicable
 None

 XI. Matters of Important Lawsuit and Arbitration

 □Applicable √ Not applicable
 None

 XII. Situation of Punishment and Rectification

 □Applicable √ Not applicable
        None

 XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers

 □Applicable √ Not applicable

 XIV. Material related transactions


 1. Related transactions in connection with daily operation

 □Applicable √ Not applicable
 None
 2. Related-party transactions arising from asset acquisition or sale
 □Applicable √ Not applicable
 None
 . Related-party transitions with joint investments
 □Applicable √ Not applicable
 None

 4. Credits and liabilities with related parties

 □Applicable √ Not applicable
 None

 5. Transactions with related finance company, especially one that is controlled by the Company

 √ Applicable □Not applicable
      Deposit business
Related party    Relationshi   Maximum daily         Deposit       Beginning        The amount of this period
                      p         deposit limit      interest rate    balance                       Total amount is     Ending
                               (10,000)            range        (10,000)   Total deposit
                                                                                                   withdrawn for     balance
                                                                                   amount
                                                                                                        this        (10,000)
                                                                                  (10,000 )
                                                                                                  period(10,000 )




 87
    2021 Annual Report


                    Controlled
Guangdong
                    by the
Communications
                    same                 300,000     1.725%-3.57%      103,110.58       1,041,351.2           992,361.43    152,100.35
Group Finance
                    parent
Co., Ltd
                    company

    Loan business
  Related party     Relationshi                                        Beginning         The amount of this period
                         p                                              balance                                                Ending
                                                                                       Total loan        Total repayment
                                  Loan limit(10,   Loant interest
                                                                       (10,000)                                             balance
                                                                                     amount of the        amount of the
                                      000)            rate range
                                                                                     current period       current period   (10,000)
                                                                                     (10,000)          (10,000)

Guangdong          Controlled
Communications     by the same
                                         400,000     3.15%-3.75%           20,000            20,000               20,000         20,000
Group Finance      parent
Co., Ltd           company

    Credit extension or other financial services
                  Related party                      Relationship         Business      Total amount           Actual amount
                                                                            type        (10,000)         incurred(10,000)

     Guangdong Communications Group           Controlled by the same     Credit
                                                                                               220,000                     20,000
     Finance Co., Ltd                         parent company             extension


    6. Transactions between the financial company controlled by the Company and related parties

    □ Applicable √Not applicable
    There is no deposit, loan, credit or other financial business between the financial company controlled by the
    Company and related parties.

    7. Other significant related-party transactions

    √ Applicable □Not applicable
    1.The 15th (Provisional) Meeting of the Ninth Board of Directors and the First provisional Shareholders' General
    Meeting of 2021 of the Company examined and adopted the Proposal on Signing the Supplementary Agreement
    to the Financial Services Agreement with Guangdong Communications Group Finance Co., Ltd.


    2.The 16th (Provisional) Meeting of the Ninth Board of Directors of the Company examined and adopted the
    Proposal Concerning the Company Daily Associated Transactions Predicted of 2021.

    Agree on the predicted daily associated transactions for the company headquarters, wholly-owned and holding
    subsidiaries of 2021, whose amount in total is RMB 29.2285 million .

     3.The16th (Provisional) Meeting of the Ninth Board of Directors of the Company examined and adopted the
    Proposal on the signing of a contract for the entrusted operation and management from 2021 to 2023 of the

    88
2021 Annual Report


Guangzhu North Section of the Guangdong Jingzhu Expressway between the Guangdong Jingzhu Expressway
Guangzhu North Section Co., Ltd and the Jingzhu Expressway Guangzhu North Section Co., Ltd." It’s agreed that
the Jingzhu Expressway Guangzhu North Section Co., Ltd and the Guangdong Jingzhu North Section Co., Ltd
sign the "Entrusted Operation and Management Contract for 2021-2023 for Guangdong Jingzhu Expressway
Guangzhu North Section", with the total contract amount not exceeding 75 million yuan.

4.The20th (Provisional) Meeting of the Ninth Board of Directors and the Second provisional Shareholders'
General Meeting of 2021 of the Company examined and adopted the Proposal the Proposal on increasing capital to
Guangdong Jiangzhong Expressway Co., Ltd. to participate in the investment in the
shenzhen-Cenxi Expressway Zhongshan Xinlong to Jiangmen Longwan Section Reconstruction and Expansion Pr
oject.
1. Agreed to the Company’s capital increase to Guangdong Jiangzhong Expressway Co., Ltd to participate in the i
nvestment in the Shenzhen-Cenxi Expressway Zhongshan Xinlong-Jiangmen Longwan Section Reconstruction an
d Expansion Project;
2. It’s agreed that the Company shall base on the estimated investment amount of 10.697 billion yuan in the preli
minary design of the reconstruction and expansion project approved by the Ministry of Transport, and the project
capital ratio shall be 35% of the estimated investment amount of the project, which is 3.744 billion yuan, thus the
capital increase amount will be approximately RMB 562 million according to holding equity ratio that is the Com
pany holds 15% equity of Jiangzhong Expressway Co., Ltd.
The website to disclose the interim announcements on significant related-party transactions
                                               Date of disclosing provisional   Description of the website for disclosing
 Description of provisional announcement
                                                      announcement                    provisional announcements

 Announcement of Resolutions of the 15th
 (Provisional) Meeting of the Ninth Board of         January 19,2021                      www.cninfo.com.cn
 Directors(Announcement No.:2021-001)

 Announcement of related party transaction
                                                     January 19,2021                      www.cninfo.com.cn
 (Announcement No.:2021-002)

 Announcement of Resolution of the First
 Provisional Shareholder's Meeting of 2021           February 4,2021                      www.cninfo.com.cn
 (Announcement No.:2021-005)

 Announcement of Resolutions of the 16th
 (Provisional) Meeting of the Ninth Board of          March 26,2021                       www.cninfo.com.cn
 Directors(Announcement No.:2021-008)

 Estimates announcement of the Daily
 Related Party Transaction of 2021                    March 26,2021                       www.cninfo.com.cn
 (Announcement No.:2021-012)

 Announcement on related transactions
 concerning the entrusted operation of the            March 26,2021                       www.cninfo.com.cn
 subsidiary(Announcement No.:2021-013)

 Announcement of related party transaction
                                                       July 31,2021                       www.cninfo.com.cn
 (Announcement No.:2021-029)



89
2021 Annual Report


 Announcement of Resolution of the Second
 Provisional Shareholder's Meeting of 2021      August 17,2021   www.cninfo.com.cn
 (Announcement No.:2021-030)


XV. Significant contracts and execution

1.Entrustments, contracting and leasing

(1)Entrustment

□Applicable √ Not applicable
No such cases in the reporting period.


(2)Contracting

□Applicable √ Not applicable
No such cases in the reporting period.

(3)Leasing

□Applicable √ Not applicable
No such cases in the reporting period.

2.Significant Guarantees

□Applicable √ Not applicable
No such cases in the reporting period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance

□ Applicable √ Not applicable

None

(2)Situation of Entrusted Loans

4. Other significant contract

□ Applicable √ Not applicable

XVI. Explanation on other significant events

□ Applicable √ Not applicable

None

90
2021 Annual Report


XIV. Significant event of subsidiary of the Company

□ Applicable √Not applicable




91
     2021 Annual Report




             VII. 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           Proportio                 Capita
                                                       n                   lizatio
                                                                     Bo
                                                             Share          n of
                                                                     nus                                                       Proportio
                                                             allot         comm       Other       Subtotal     Quantity
                                                                     sha                                                          n
                                                             ment            on
                                                                     res
                                                                           reserv
                                                                           e fund

1.Shares with conditional
                                   439,254,717    21.01%                                      0          0    439,254,717       21.01%
subscription

1.State-owned shares               410,040,696    19.61%                              65,042        65,042    410,105,738       19.61%

2.State-owned legal person
                                    21,712,738     1.04%                                      0          0     21,712,738         1.04%
shares

3.Other domestic shares              7,501,283     0.36%                              -65,042      -65,042      7,436,241         0.36%

Including :Domestic
                                     6,965,095     0.33%                             -101,584     -101,584       6,863,511        0.33%
Legal person shares

Domestic natural person
                                      536,188      0.03%                              36,542        36,542        572,730         0.03%
shares

4.Foreign shares                            0      0.00%                                      0          0                 0      0.00%

Including:Foreign legal
                                            0      0.00%                                      0          0                 0      0.00%
person shares

Foreign natural person
                                            0      0.00%                                      0          0                 0      0.00%
shares

II.Shares with
                               1,651,551,409      78.99%                                      0          0   1,651,551,409      78.99%
unconditional subscription

1.Common shares in RMB         1,302,902,734      62.32%                                      0          0   1,302,902,734      62.32%

2.Foreign shares in
                                   348,648,675    16.68%                                      0          0    348,648,675       16.68%
domestic market

3.Foreign shares in foreign
                                            0      0.00%                                      0          0                 0      0.00%
market

4.Other                                     0      0.00%                                      0          0                 0      0.00%

III. Total of capital shares   2,090,806,126     100.00%                                      0          0   2,090,806,126     100.00%

           Reasons for share changed

     92
 2021 Annual Report


 √ Applicable □Not applicable
      1. During the reporting period, 36 shareholders repaid 65,042 consideration shares of Guangdong
 Communications Group Co., Ltd., which were converted from "shares held by domestic legal person" and "shares
 held by domestic natural person" to "shares held by the state".
      2. During the reporting period, 52,020 shares held by domestic legal persons were converted into shares held
 by domestic natural person.
 Approval of Change of Shares
 □Applicable √Not applicable
 Ownership transfer of share changes
 □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

 2. Change of shares with limited sales condition

 √ Applicable □Not applicable
                                                                                                                  In shares
                                                            Number of
                                             Number of                    Restricted
                                  Initial                   Increased                      Reason for           Date of
                                             Unrestricted                Shares in the
      Shareholder Name        Restricted                    Restricted                      Restricted         Restriction
                                             Shares This                  End of the
                                  Shares                     Shares                           Shares            Removal
                                                Term                        Term
                                                            This Term

                                                                                         The shares for
                                                                                         restricted sales
                                                                                         by share
                                                                                         reform has not
 Guangdong Communication
                             410,040,696          65,042                  410,105,738    yet be subject     Unknown
       Group Co., Ltd.
                                                                                         to the
                                                                                         procedures for
                                                                                         lifting the
                                                                                         restriction.

                                                                                         Release of
Kong Lingbin and other 35
                                   115,275       -15,478                        99,797   restrictions on    2022-01-19
shareholders
                                                                                         sales

                                                                                         Release of
Foshan Shunde Yunlong
                                   369,139       -49,564                       319,575   restrictions on    2022-01-19
Development Co., Ltd.
                                                                                         sales



 93
 2021 Annual Report


Total                        410,525,110             0            0     410,525,110         --      --


 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




 94
       2021 Annual Report



       III. Shareholders and actual controlling shareholder


       1. Number of shareholders and shareholding

                                                                                                                                          In Shares

                                                                                                              Total
                                                                                                              preference
                                                                                                              shareholders
Total number                         Total
                                                                         The total number                     with
of common                            shareholders at
                                                                          of preferred shar                   voting rights
shareholders                         the end of the
                                                                         eholders voting r                    recovered at
at the end of              49,861    month from                48,258                                    0                                                0
                                                                         ights restored at                    end
the                                  the date of
                                                                         period-end (if                       of last month
reporting                            disclosing the
                                                                         any)(Note 8)                         before annual
period                               annual report
                                                                                                              report
                                                                                                              disclosed(if
                                                                                                              any)(Note8)

                                    Particulars about shares held above 5% by shareholders or top ten shareholders

                                                                                                                                           Number of
                                                       Proport                                                                                  share
                                                       ion of       Number of           Changes in     Amount of        Amount of         pledged/froze
                                       Nature of
            Shareholders                               shares      shares held at         reporting     restricted     un-restricted              n
                                      shareholder
                                                        held        period -end            period      shares held      shares held       State
                                                                                                                                                      Amo
                                                       (%)                                                                               of
                                                                                                                                                        unt
                                                                                                                                          share

Guangdong Communication              State-owned        24.56
                                                                    513,485,480               65,042   410,105,738         103,379,742
Group Co.,Ltd                        legal person           %

Guangdong Highway                    State-owned        22.30
                                                                    466,325,020                                            466,325,020
Construction Co., Ltd,               legal person           %

Shangdong Expressway
                                     State-owned
Investment Development Co.,                            9.68%        202,429,149                                            202,429,149
                                     legal person
Ltd.

Tibet Yingyue Investment             State-owned
                                                       4.84%        101,214,574                                            101,214,574
Management Co., Ltd.                 legal person

Guangdong Provincial                 State-owned
                                                       2.53%            52,937,491                      19,582,228           33,355,263
Freeway Co.,Ltd.                     legal person

                                     Domestic
Feng Wuchu                           natural           1.03%            21,587,971           794,118                         21,587,971
                                     person shares

                                     Overseas
HKSCC                                                  0.93%            19,529,631      19,126,258                           19,529,631
                                     legal person


       95
       2021 Annual Report


Happy life insurance Co.,
                                     Other             0.81%         16,842,478     16,842,478                       16,842,478
Ltd.-Dividend

China Life Insurance Co.,
Ltd.-Dividend -Personal            Other             0.76%         15,862,165    -25,147,190                       15,862,165
dividend -005L-FH002 Shen

                                     Overseas
Xinyue Co., Ltd.                                       0.63%         13,201,086                                      13,201,086
                                     legal person

Strategic investor or general legal person
becoming top-10 ordinary shareholder due to           None
rights issue (if any) (see note 3)

                                                      Guangdong Communication Group Co., Ltd. is the parent company of Guangdong
                                                      Highway Construction Co., Ltd.,Guangdong Provincial Freeway Co.,Ltd. and Xinyue Co.,
Related or acting-in-concert parties among
                                                      Ltd., It is unknown whether there is relationship between other shareholders and whether
shareholders above
                                                      they are persons taking concerted action specified in the Regulations on Disclosure of
                                                      Information about Change in Shareholding of Shareholders of Listed Companies.

Above shareholders entrusting or entrusted
                                                      None
with voting rights, or waiving voting rights

Top 10 shareholders including the special
                                                      None
account for repurchase (if any) (see note 10)

                                             Shareholding of top 10 shareholders of unrestricted shares

                                                    Quantity of unrestricted                               Share type
            Name of the shareholder                 shares held at the end of
                                                                                        Share type                         Quantity
                                                      the reporting period

Guangdong Highway Construction Co.,
                                                                466,325,020     RMB Common shares                                     466,325,020
Ltd,

Shangdong Expressway Investment
                                                                202,429,149     RMB Common shares                                     202,429,149
Development Co., Ltd.

Guangdong Communication Group Co.,Ltd                           103,379,742     RMB Common shares                                     103,379,742

Tibet Yingyue Investment Management
                                                                101,214,574     RMB Common shares                                     101,214,574
Co., Ltd.

Guangdong Provincial Freeway Co.,Ltd.                            33,355,263     RMB Common shares                                      33,355,263

                                                                                RMB Common shares                                      19,129,108
Feng Wuchu                                                       21,587,971     Foreign shares placed in
                                                                                                                                        2,458,863
                                                                                domestic

HKSCC                                                            19,529,631     RMB Common shares                                      19,529,631

Happy life insurance Co., Ltd.-Dividend                          16,842,478     RMB Common shares                                      16,842,478

China Life Insurance Co., Ltd.-Dividend
                                                                 15,862,165     RMB Common shares                                      15,862,165
-Personal dividend -005L-FH002 Shen



       96
      2021 Annual Report


                                                                                 Foreign shares placed in
  Xinyue Co., Ltd.                                                  13,201,086                                                           13,201,086
                                                                                 domestic

  Explanation on associated relationship or
                                                       Guangdong Communication Group Co., Ltd. is the parent company of Guangdong
  consistent action among the top 10
                                                       Highway Construction Co., Ltd. ,Guangdong Provincial Freeway Co.,Ltd. and Xinyue
  shareholders of non-restricted negotiable
                                                       Co., Ltd. ,It is unknown whether there is relationship between other shareholders and
  shares and that between the top 10
                                                       whether they are persons taking concerted action specified in the Regulations on Disclosure
  shareholders of non-restricted negotiable
                                                       of Information about Change in Shareholding of Shareholders of Listed Companies.
  shares and top 10 shareholders

  Top 10 ordinary shareholders conducting
                                                       None
  securities margin trading (if any) (see note 4)

      Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
      buy-back agreement dealing in reporting period.
      □ Yes √ No
      The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
      have no buy –back agreement dealing in reporting period.

      2.Controlling shareholder

      Nature of Controlling Shareholders: Local state holding
      Type: Legal person

                                   Legal
Name of the Controlling          represent            Date of
                                                                           Organization code                   Principal business activities
shareholder                      ative/Lea          incorporation
                                    der

                                                                                                   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
Guangdong Communication         Deng                                                               management, traffic infrastructure construction,
                                              June 23,2000               91440000723838552J
Group Co., Ltd.                 Xiaohua                                                            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; Value added
                                                                                                   telecommunication services.

Equity in other domestic and
foreign listed companies
held by the controlling         Guangdong Communication Group Co., Ltd. holds 74.12% equity of Guangdong Yueyun Traffic Co., Ltd., a
shareholder by means of         company listing H shares.
control and mutual
shareholding in the reporting


      97
         2021 Annual Report


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
              Name of the actual
                                         representative     Date of incorporation       Organization code           Principal business activities
                  controller
                                             /Leader

                                                                                                                 As an ad hoc organization directly
                                                                                                                 under the Guangdong provincial
                                                                                                                 government, it is authorized by
     State-owned               Assets
                                                                                                                 the Guangdong provincial
     supervision                   and
                                                                                                                 government to represent the
     administration
                                                                                                                 Guangdong provincial
     Commission                     of   Li Cheng           June 26,2004             114400007583361658
                                                                                                                 government to perform the
     Guangdong            Provincial
                                                                                                                 investor's duties for the
     People’s Government
                                                                                                                 supervised enterprises in
                                                                                                                 accordance with the law,
                                                                                                                 specializing in the supervision of
                                                                                                                 state-owned assets.

     Equity of other
     domestic/foreign listed             As an ad hoc organization directly under the Guangdong provincial government, it is authorized by the
     company with share                  Guangdong provincial government to represent the Guangdong provincial government to perform the
     controlling and share               investor's duties for the supervised enterprises in accordance with the law, specializing in the supervision
     participation by                    of state-owned assets.
     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




         98
2021 Annual Report



                                           State-owned Assets Supervision and
                                                Administration Commission the
                                           people’s Government of Guangdong
                                                          Province

                                                                    100%

                                              Guangdong Communication Group
                                                          Co., Ltd.




      Guangdong Province          Guangdong Highway                   Guangdong Province              Guangdong Xinyue
        Transportation           Construction Co., Ltd.               Expressway Co., Ltd.                 Co., Ltd.
     Development Co., Ltd


     0.10%                        22.30%                         24.56%              2.53%                           0.63%


                            Guangdong Provincial Expressway Development Co., Ltd




The actual controller controls the company by means of trust or managing the assets in other way

□Applicable √Not applicable

4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
company and its person acting in concert accounts for 80% of the number of shares held by the company

Applicable √Not applicable

5.Particulars about other legal person shareholders with over 10% share held

√ Applicable □ Not applicable
                                      Legal
                                   person/pers
                                                                             Register    Main operation business or management
      Legal person shareholder        on in          Date of foundation
                                                                             capital                    activities
                                    charge of
                                     the unit

                                                                                        Highway, bridge, tunnel bridge, traffic
                                                                                        infrastructure construction, investment
 Guangdong Highway                 Wang                                    10.8
                                                    April 16,1987                       and management, technical consulting,
 Construction Co., Ltd.            Kangchen                                billion
                                                                                        leasing of road construction machinery;
                                                                                        sales of construction materials,


99
2021 Annual Report


                                                                         construction machinery equipment;
                                                                         vehicle rescue services
                                                                         (operated by the branch).

6.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable




100
2021 Annual Report



IV. Specific implementation of share repurchase during the reporting period

Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable




101
2021 Annual Report




                                VIII. Situation of the Preferred Shares

□Applicable √Not applicable
The Company had no preferred shares in the reporting period.




102
2021 Annual Report




                                         IX. Corporate Bond

√Applicable □ Not applicable

I. Enterprise bond

□ Applicable √ Not applicable
No such cases in the reporting period.

II. Corporate bond

□ Applicable √ Not applicable
No such cases in the reporting period.




103
         2021 Annual Report
         III. Debt financing instruments of non-financial enterprises

         √Applicable □ Not applicable
               1.Basic information
                                                                                                                                                                                               In RMB

                                                                                                                                                               Intere
        Bond name               Bond short name   Bond code        Issue day                Value date                Due day               Bond balance         st          Servicing way             Trading
                                                                                                                                                                rate

                                                                                                                                                                        Due payments once a
Guangdong Provincial Expr                                                                                                                                               year, The principal an
                               19 Guangdong
essway Development Co., L                                                                                                                                               d the last instalment int   Interbank m
                               Expressway         101900252   February 27,2019        March 1,2019             March 1,2024                 679,025,866.59     4%
td. 2019 first phase medium                                                                                                                                             erest are paid in one lu    arket
                               MTN001
-term notes                                                                                                                                                             mp sum on the redemp
                                                                                                                                                                        tion date.

                                                                                                                                                                        Due payments once a
Guangdong Provincial Expr                                                                                                                                               year, The principal an
                               20 Guangdong
essway Development Co., L                                                                                                                                               d the last instalment int   Interbank m
                               Expressway         102000367   March 13,2020           March 17,2020            March 17,2025                748,408,219.99     3%
td. 2020 first phase medium                                                                                                                                             erest are paid in one lu    arket
                               MTN001
-term notes                                                                                                                                                             mp sum on the redemp
                                                                                                                                                                        tion date.

                                                              Circulation and transfer in the national inter-bank bond market, its listing and circulation will be carried out in accordance with the relevant re
Applicable trading mechanism
                                                              gulations promulgated by the National Interbank Funding Center.

         Overdue and unpaid bonds
         □ Applicable √ Not applicable




         104
 2021 Annual Report


 2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor

 □ Applicable √ Not applicable

 3.Information of intermediary agency


                                                                                                        Contact
                                                                                       Name of
                             Name of intermediary                                                   person of
   Name of bond project                                     Office Address             signing                                Tel
                                    agency                                                          intermediar
                                                                                      accountant
                                                                                                     y agency

                                                       Jianguomenwai Street,
  19 Guangdong             China Lianhe Credit
                                                       Chaoyang District,            No            Yang Ting         010-85679696
  Expressway MTN001        Rating Co., Ltd.
                                                       Beijing

                                                       Jianguomenwai Street,
  20 Guangdong             China Lianhe Credit
                                                       Chaoyang District,            No            Yang Ting         010-85679696
  Expressway MTN001        Rating Co., Ltd.
                                                       Beijing

 Whether the above agency changes during the reporting period
 □ Yes √No


 4. Use of raised funds

                                                                                                                                    In RMB


                                                                                                                          Whether it is
                                                                                                                         consistent with
                                                                                 Operation of      Rectification of
                                                                                                                         the purpose, use
                       Total amount of                        Unused         special account for    illegal use of
Name of bond project                          Used amount                                                                 plan and other
                          raised funds                        amount          raised funds (if     raised funds (if
                                                                                                                           agreements
                                                                                    any)                  any)
                                                                                                                         stipulated in the
                                                                                                                              prospectus

19 Guangdong
Expressway             680,000,000.00     680,000,000.00          0.00      No                     No                   Yes
MTN001

20 Guangdong
Expressway             750,000,000.00     750,000,000.00          0.00      No                     No                   Yes
MTN001

 The raised funds are used for construction projects
 □ Applicable √ Not applicable
 During the reporting period, the Company changed the use of funds raised from the above bonds
 □ Applicable √ Not applicable




 105
2021 Annual Report


5.Adjustment of credit rating results during the reporting period

□ Applicable √ Not applicable

6 The implementation and changes of guarantee, debt repayment plan and other debt repayment guarantee
measures during the reporting period and their impact on the rights and interests of bond investors

□ Applicable √ Not applicable

IV. Convertible bond

□ Applicable √ Not applicable
No such cases in the reporting period.

V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net
assets at the end of the previous year

□ Applicable √ Not applicable

VI.Overdue interest-bearing debts except bonds at the end of the reporting period

□ Applicable √ Not applicable

VII.Whether there are any violations of rules and regulations during the reporting period

□ Yes √ No

VIII. Main accounting data and financial indicators of the Company in recent two years by the end of the
reporting period

                                                                                                             In RMB10,000

                                  At the end of the reporting                                  At the same time rate of
               Items                                              At the end of last year
                                            period                                                     change

 Current ratio                                         270.19%                     118.46%                       151.73%

 Debt ratio                                             40.02%                       48.24%                       -8.22%

 Quick ratio                                           269.68%                     118.35%                       151.33%

                                                                                               At the same time rate of
                                    Amount of this period         Amount of last period
                                                                                                       change

 Net profit after deducting
                                                     169,309.16                   70,482.16                      140.22%
 non-recurring profit and loss

 EBITDA total debt ratio                                72.70%                       45.98%                       26.72%

 Time interest earned ratio                               11.59                         7.65                      51.50%


106
2021 Annual Report


 Cash interest guarantee times     13.72     10.53   30.29%

 EBITDATime interest earned
                                   15.86     11.39   39.24%
 ratio

 Repayment of debt (%)           446.05%   115.11%   330.94%

 Payment of interest (%)         104.94%   91.50%    13.44%




107
2021 Annual Report




                                             X. Financial Report

  I. Audit report


 Type of audit opinion                                     Standard Unqualified audit opinion

 Date of signature of audit report                         March 16,2022

                                                           Yong Tuo Certified Public Accountants (special general
 Name of audit firm
                                                           partnership)

 Names of the Certified Public Accountants                 Shi Shaoyu, Huang Zhiyan

                                                  Auditors’ Report

                                                                                   Yongzhengshenzhi(2022)No.:



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, 2021, 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, 2021 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. We have identified the following items as key audit items that need to be communicated in the audit
report.
     Depreciation of fixed assets toll road
     1. Item description
     As described in "Notes III. 15 Fixed Assets to the Financial Statements" and "Notes V. 12 Fixed Assets to the

108
2021 Annual Report


Financial Statements": the book value of the toll roads of Guangdong Expressway Group at the end of 2021 was
RMB 9,905,476,302.88, accounting for 52.48% of the total consolidated assets; the depreciation amount of toll
roads in 2021 is RMB 1,035,681,518.74, accounting for 53.68% of the consolidated operating cost. The
Guangdong Expressway Group toll road is depreciated according to the traffic flow method, and the current
depreciation amount is calculated according to the proportion of the actual traffic flow in the current period to the
estimated remaining total traffic flow in the operation period. The total traffic flow during the operation period
refers to the forecast of the total traffic flow of Guangdong Expressway Group during the operation period, which
is a major accounting estimate. Therefore, we have determined the pricing and depreciation of the toll roads of
Guangdong Expressway Group as the key audit items.
     2. Audit response
     In response to the above key audit matter, we have implemented the following main audit procedures:
     (1)Understand, evaluate and test the internal control of the management of the Company on the daily
management and accounting treatment of toll roads;
       (2)Check whether the actual traffic flow data applied by Guangdong Expressway Company in the
depreciation calculation of toll roads is consistent with the actual traffic flow data obtained by Guangdong
Expressway Company from external service units;
     (3)Evaluate the independence and professional competence of the third-party organization employed by the
Company that carries out traffic flow forecast;
       (4) Understand the methods used in traffic flow forecast reports issued by third-party organizations to
forecast the traffic flow in the future, and evaluate the reliability of traffic flow forecast reports by comparing the
predicted traffic flow for the past year with the actual traffic flow for that period;
     (5) Recalculate the depreciation of roads and bridges to verify the accuracy of the depreciation amount of
roads and bridges in the financial statements.

      IV. Other information

     The management of Guangdong Expressway Company is responsible for other information. Other
information includes the information covered in the 2020 annual report of Guangdong Expressway Company, but
does not include the financial statement and our audit report.
    Our audit opinion on the financial statements does not cover other information, and we do not issue any form
    of verification conclusion on other information.
     In combination with our audit of the financial statements, our responsibility is to read other information, and
consider in such process whether other information is materially inconsistent with the financial statements or the
information we learned during the audit, or whether there appears to be a material misstatement.
     Based on the work that we have already performed, if we determine that other information contains material
misstatements, we should report such fact. In this regard, we have nothing to report.

      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.

109
2021 Annual Report


      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
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
skepticism 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

110
2021 Annual Report


communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.




Yong Tuo Certified Public Accountants Co., Ltd.(Special General Partnership)
Certified Public Accountant of China:
  (project partner)


Certified Public Accountant of China:

                                                     Beijing China

                                                     March 15,2022




111
2021 Annual Report




II. Financial statements

Currency unit for the statements in the notes to these financial statements: RMB

1. Consolidated balance sheet


Prepared by: Guangdong Provincial Expressway Development Co., Ltd.


                                                 December 31,2021
                                                                                                         In RMB

                      Items                   December 31,2021                     December 31,2020

 Current asset:

               Monetary fund                              2,956,404,390.55                    2,847,398,003.89

            Settlement provision

 Outgoing call loan

 Transactional financial assets

      Derivative financial assets

      Notes receivable

        Account receivable                                 159,053,399.87                      168,907,517.56

        Financing of receivables

                Prepayments                                  5,227,647.09                        3,607,538.01

            Insurance receivable

           Reinsurance receivable

  Provisions of Reinsurance contracts
                 receivable

        Other account receivable                            13,761,124.23                       60,925,367.64

        Including:Interest receivable

                Dividend receivable                          1,205,472.90                        2,705,472.90

        Repurchasing of financial assets

        Inventories                                              640,079.66                           53,761.06

        Contract assets                                      5,286,462.45                        5,452,813.90

        Assets held for sales

 Non-current asset due within 1 year                         2,782,974.53                             51,745.32

        Other current asset                                       21,213.96                           27,051.69

 Total of current assets                                  3,143,177,292.34                    3,086,423,799.07



112
2021 Annual Report


                    Items                     December 31,2021               December 31,2020

 Non-current assets:

 Loans and payment on other’s behalf
                   disbursed

 Creditor's right investment

        Other creditor's right investment

      Long-term receivable

      Long term share equity investment                  2,627,130,681.24               2,382,381,165.60

 Other equity instruments investment                     1,577,175,826.05               1,737,015,528.29

 Other non-current financial assets

      Property investment                                    2,889,263.41                   3,110,381.89

        Fixed assets                                    10,639,272,192.02              11,540,075,929.69

 Construction in progress                                 351,130,455.06                 340,611,095.47

        Production physical assets

        Oil & gas assets

        Use right assets                                   14,100,325.01                  Not applicable

        Intangible assets                                 268,504,176.43                 302,381,356.52

      Development expenses

        Goodwill

 Long-germ expenses to be amortized                          2,103,750.00                   3,462,122.00

      Deferred income tax asset                           225,243,885.27                 330,755,418.39

      Other non-current asset                              25,038,952.48                  22,361,861.19

 Total of non-current assets                            15,732,589,506.97              16,662,154,859.04

 Total of assets                                        18,875,766,799.31              19,748,578,658.11

 Current liabilities

      Short-term loans                                                                   200,192,500.00

  Loan from Central Bank

      Borrowing funds

        Transactional financial liabilities

          Derivative financial liabilities

          Notes payable

        Account payable                                   264,487,139.44                 369,773,342.71

        Advance receipts                                   10,660,208.51                   11,309,007.41

        Contract liabilities                                     22,000.00                      309,734.51



113
2021 Annual Report


                      Items             December 31,2021                December 31,2020

 Selling of repurchased financial
 assets

 Deposit taking and interbank deposit

  Entrusted trading of securities

 Entrusted selling of securities

  Employees’ wage payable                           19,213,631.91                   16,726,198.13

  Tax payable                                       164,612,512.99                  217,748,392.78

           Other account payable                    177,970,483.76                 1,512,619,359.78

         Including:Interest payable

                 Dividend payable                    22,941,943.24                   22,262,804.39

         Fees and commissions payable

         Reinsurance fee payable

         Liabilities held for sales

 Non-current liability due within 1
                                                    525,644,368.26                  266,328,017.47
 year

 Other current liability                                   726,336.48                      648,581.64

 Total of current liability                        1,163,336,681.35                2,595,655,134.43

 Non-current liabilities:

 Reserve fund for insurance contracts

      Long-term loan                               4,572,621,200.00                4,977,438,800.00

  Bond payable                                     1,427,434,086.58                1,426,488,336.65

      Including:preferred stock

      Sustainable debt

           Lease liability                            2,773,459.76                   Not applicable

       Long-term payable                              3,461,832.74                   40,406,172.37

 Long-term remuneration payable to
 staff

  Expected liabilities

         Deferred income                             69,228,093.11                   89,170,569.64

      Deferred income tax liability                 315,922,287.64                  387,103,060.74

 Other non-current liabilities

 Total non-current liabilities                     6,391,440,959.83                6,920,606,939.40

 Total of liability                                7,554,777,641.18                9,516,262,073.83

 Owners’ equity


114
2021 Annual Report


                      Items                 December 31,2021              December 31,2020

      Share capital                                    2,090,806,126.00              2,090,806,126.00

      Other equity instruments

      Including:preferred stock

      Sustainable debt

  Capital reserves                                      713,460,518.49                645,969,210.48

      Less:Shares in stock

 Other comprehensive income                             192,177,466.34                302,895,877.65

        Special reserve

      Surplus reserves                                 1,225,375,330.56              1,167,785,965.63

 Common risk provision

 Retained profit                                       4,760,618,543.78              3,725,679,319.35

 Total of owner’s equity belong to the
                                                       8,982,437,985.17              7,933,136,499.11
 parent company

 Minority shareholders’ equity                        2,338,551,172.96              2,299,180,085.17

 Total of owners’ equity                             11,320,989,158.13             10,232,316,584.28

 Total of liabilities and owners’ equity             18,875,766,799.31             19,748,578,658.11

Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting:Lu Ming
  Accounting Dept Leader: Zhou Fang




115
2021 Annual Report


2.Parent Company Balance Sheet

                                                                                               In RMB

                      Items               December 31,2021               December 31,2020

 Current asset:

 Monetary fund                                       1,860,836,127.30               1,781,764,519.09

 Transactional financial assets

      Derivative financial assets

        Notes receivable

        Account receivable                             24,208,692.49                  27,004,827.41

 Financing of receivables

        Prepayments                                      4,311,419.00                  2,181,215.03

      Other account receivable                          6,885,982.60                  54,148,114.53

        Including:Interest receivable

        Dividend receivable                             1,205,472.90                   2,705,472.90

        Inventories

        Contract assets

        Assets held for sales

 Non-current asset due within 1 year                  278,562,652.27                 256,279,340.60

        Other current asset                                  11,067.41                      27,051.69

 Total of current assets                             2,174,815,941.07               2,121,405,068.35

 Non-current assets:

 Creditor's right investment                                                         287,903,684.98

      Other creditor's right investment

      Long-term receivable

      Long term share equity investment              5,792,610,802.46               5,529,362,536.53

 Other equity instruments investment                 1,577,175,826.05               1,737,015,528.29

 Other non-current financial assets

      Property investment                               2,637,125.16                   2,858,243.64

      Fixed assets                                   5,707,608,552.14               6,245,462,940.39

  Construction in progress                             43,594,243.12                  43,086,545.58

        Production physical assets

        Oil & gas assets

        Use right assets                               12,611,748.50                  Not applicable

        Intangible assets                             140,756,147.03                 150,582,241.22


116
2021 Annual Report


                     Items                     December 31,2021                December 31,2020

      Development expenses

         Goodwill

 Long-germ expenses to be amortized

      Deferred income tax asset                            218,624,401.07                  322,365,911.10

      Other non-current asset                               14,434,283.48                     7,089,990.48

 Total of non-current assets                             13,510,053,129.01               14,325,727,622.21

 Total of assets                                         15,684,869,070.08               16,447,132,690.56

 Current liabilities

         Short-term loans                                                                  200,192,500.00

         Transactional financial liabilities

           Derivative financial liabilities

         Notes payable

         Account payable                                   105,685,908.27                  105,919,984.52

      Advance receipts                                            250,984.75

         Contract Liabilities

  Employees’ wage payable                                    6,825,973.81                    6,472,802.81

  Tax payable                                                 7,330,856.79                    9,165,801.86

           Other account payable                           690,062,820.89                 1,431,814,861.38

         Including:Interest payable

                 Dividend payable

         Liabilities held for sales

 Non-current liability due within 1
                                                           456,996,690.91                  190,331,701.48
 year

 Other current liability                                           37,299.97               539,618,124.00

 Total of current liability                               1,267,190,535.39                2,483,515,776.05

 Non-current liabilities:

      Long-term loan                                      4,058,096,200.00                4,389,653,800.00

  Bond payable                                            1,427,434,086.58                1,426,488,336.65

      Including:preferred stock

      Sustainable debt

              Lease liability                                 2,445,724.58                  Not applicable

         Long-term payable                                    3,461,832.74                  40,406,172.37

 Long-term remuneration payable to
 staff


117
2021 Annual Report


                      Items                 December 31,2021                December 31,2020

  Expected liabilities

        Deferred income                                    10,120,879.64                    13,403,327.12

      Deferred income tax liability                        66,399,854.20                   105,636,866.50

 Other non-current liabilities

 Total non-current liabilities                           5,567,958,577.74                 5,975,588,502.64

 Total of liability                                      6,835,149,113.13                 8,459,104,278.69

 Owners’ equity

      Share capital                                      2,090,806,126.00                 2,090,806,126.00

      Other equity instruments

      Including:preferred stock

      Sustainable debt

      Capital reserves                                    934,851,285.51                   938,969,546.79

      Less:Shares in stock

 Other comprehensive income                               192,177,466.34                   302,895,877.65

        Special reserve

      Surplus reserves                                   1,045,403,063.00                  987,813,698.07

        Retained profit                                  4,586,482,016.10                 3,667,543,163.36

 Total of owners’ equity                                8,849,719,956.95                 7,988,028,411.87

 Total of liabilities and owners’ equity             15,684,869,070.08                  16,447,132,690.56


3.Consolidated Income statement

                                                                                                    In RMB

                      Items                       2021                            2020

       I. Income from the key business                   5,288,057,677.93                 3,790,348,876.26

           Incl:Business income                         5,288,057,677.93                 3,790,348,876.26

               Interest income

             Insurance fee earned

        Fee and commission received

 II. Total business cost                                 2,414,254,320.96                 2,106,157,423.78

 Incl:Business cost                                     1,929,512,025.56                 1,662,223,696.13

         Interest expense

  Fee and commission paid

       Insurance discharge payment



118
2021 Annual Report


                     Items                     2021                      2020

      Net claim amount paid

 Net amount of withdrawal of insurance
 contract reserve

 Insurance policy dividend paid

      Reinsurance expenses

        Business tax and surcharge                      26,151,601.45             23,401,929.49

        Sales expense

  Administrative expense                               223,605,442.46            203,945,119.58

             R & D costs                                13,270,938.73                404,303.70

        Financial expenses                             221,714,312.76            216,182,374.88

        Including:Interest expense                    282,653,629.93            264,407,174.38

                     Interest income                    64,220,887.86             50,618,519.70

      Add: Other income                                 17,600,355.16             12,819,409.84

 Investment gain(“-”for loss)                      277,061,254.36            171,366,835.55

      Incl: investment gains from affiliates           227,004,893.87            114,517,784.14

      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                        -1,935,337.47             -2,457,808.51

        Impairment loss of assets                        -2,889,394.16             -1,231,918.94

      Assets disposal income                              3,017,370.44

 III. Operational profit(“-”for loss)             3,166,657,605.30          1,864,687,970.42

      Add :Non-operational income                      17,975,495.18             11,749,841.36

      Less: Non-operating expense                       22,483,385.64             20,642,932.77

 IV. Total    profit(“-”for loss)                   3,162,149,714.84          1,855,794,879.01

      Less:Income tax expenses                        735,365,014.56            491,409,872.94

 V. Net profit                                        2,426,784,700.28          1,364,385,006.07

      (I) Classification by business
 continuity

 1.Net continuing operating profit                    2,426,784,700.28          1,364,385,006.07

 2.Termination of operating net profit



119
2021 Annual Report


                    Items                   2021                      2020

      (II) Classification by ownership

 1.Net profit attributable to the owners
                                                   1,700,406,981.99          867,842,774.78
 of parent company

 2.Minority shareholders’ equity                   726,377,718.29           496,542,231.29

 VI. Net after-tax of other
                                                    -110,718,411.31          -79,297,467.25
 comprehensive income


 Net of profit of other comprehensive in
                                                    -110,718,411.31          -79,297,467.25
 come attributable to owners of the pare
 nt company.

 (I)Other comprehensive income
 items that will not be reclassified into
                                                   -120,434,499.12           -74,105,307.36
 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
                                                   -120,434,499.12           -74,105,307.36
 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                  9,716,087.81           -5,192,159.89
 be reclassified into profit or loss.


 1.Other comprehensive income under t
                                                       9,716,087.81           -5,192,159.89
 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. Other comprehensive income arising
 from the reclassification of financial
 assets

 4.Allowance for credit impairments in
 investments in other debt obligations


120
2021 Annual Report


                    Items                           2021                                 2020

 5. Reserve for cash flow hedges

 6.Translation differences in currency fi
 nancial statements

      7.Other

 Net of profit of other comprehensive in
 come attributable to Minority
 shareholders’ equity

 VII. Total comprehensive income                           2,316,066,288.97                     1,285,087,538.82

 Total comprehensive income
 attributable to the owner of the parent                   1,589,688,570.68                      788,545,307.53
 company

  Total comprehensive income
                                                             726,377,718.29                      496,542,231.29
 attributable minority shareholders

 VIII. Earnings per share

 (I)Basic earnings per share                                         0.81                                0.42

  (II)Diluted earnings per share                                       0.81                                0.42

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:Lu Ming
 Accounting Dept Leader: Zhou Fang

4. Income statement of the Parent Company

                                                                                                          In RMB

                   Items                           2021                                  2020

      I. Income from the key business                      1,469,364,434.37                      975,440,382.58

            Incl:Business cost                             718,634,183.97                       655,670,622.07

        Business tax and surcharge                             8,211,382.64                        8,077,542.21

                Sales expense

          Administrative expense                            117,865,388.31                       111,210,597.86

            R & D expense                                     6,788,937.00

        Financial expenses                                  235,894,975.56                       208,439,841.94

          Including:Interest expenses                      274,934,433.28                       250,230,473.17

            Interest income                                  39,948,340.40                        40,734,373.10



121
2021 Annual Report


                    Items                   2021                      2020

      Add:Other income                               4,070,892.76              3,249,141.80

      Investment gain(“-”for loss)             1,316,869,007.46          1,009,976,324.53

 Including: investment gains from
                                                    221,639,163.75            343,597,391.91
 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                        93,582.00                 -93,582.00

        Impairment loss of assets                     -2,889,394.16

      Assets disposal income

 II. Operational profit(“-”for loss)           1,700,113,654.95          1,005,173,662.83

        Add :Non-operational income                  1,683,906.22              3,221,547.75

      Less:Non -operational expenses                13,481,250.02             12,774,779.05

 III. Total   profit(“-”for loss)                1,688,316,311.15           995,620,431.53

        Less:Income tax expenses                   103,909,700.85             63,291,303.29

 IV. Net profit                                    1,584,406,610.30           932,329,128.24

 1.Net continuing operating profit                 1,584,406,610.30           932,329,128.24

 2.Termination of operating net profit

 V. Net after-tax of other
                                                    -110,718,411.31            -79,297,467.25
 comprehensive income

 (I)Other comprehensive income
 items that will not be reclassified into
                                                   -120,434,499.12             -74,105,307.36
 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                       -120,434,499.12             -74,105,307.36
 instruments

 4. Changes in the fair value of the



122
2021 Annual Report


                    Items                   2021                      2020

 company’s credit risks

      5.Other


 (II)Other comprehensive income that                  9,716,087.81              -5,192,159.89
 will be reclassified into profit or loss


 1.Other comprehensive income under
                                                      9,716,087.81              -5,192,159.89
 the equity method investee can be re
 classified into profit or loss.

 2. Changes in the fair value of
 investments in other debt obligations

 3. Other comprehensive income
 arising from the reclassification of
 financial assets

 4.Allowance for credit impairments
 in investments in other debt
 obligations

 5. Reserve for cash flow hedges

 6.Translation differences in currency
 financial statements

      7.Other

 VI. Total comprehensive income                    1,473,688,198.99           853,031,660.99

 VII. Earnings per share

 (I)Basic earnings per share

  (II)Diluted earnings per share


5. Consolidated Cash flow statement

                                                                                       In RMB

                    Items                   2021                      2020

 I.Cash flows from operating activities

 Cash received from sales of goods or
                                                   5,447,910,740.15          3,866,637,428.50
 rending of services

  Net increase of customer deposits
 and capital kept for brother company

 Net increase of loans from central
 bank



123
2021 Annual Report


                    Items                   2021                      2020

 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
                                                    126,417,264.96            184,856,181.58
 operation

       Sub-total of cash inflow                    5,574,328,005.11          4,051,493,610.08

 Cash paid for purchasing of
                                                    417,377,507.94            391,854,339.69
  merchandise and services

 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 in financial assets
 held for trading purposes

      Net increase for Outgoing call loan

  Cash paid for interest, processing
 fee and commission

 Cash paid to staffs or paid for staffs             490,684,230.89            384,566,222.40

  Taxes paid                                        901,811,223.79            553,265,616.61

 Other cash paid for business activities             94,710,321.33             85,620,190.33

 Sub-total of cash outflow from
                                                   1,904,583,283.95          1,415,306,369.03
      business activities



124
2021 Annual Report


                   Items                   2021                      2020

 Net cash generated from /used in
                                                  3,669,744,721.16          2,636,187,241.05
 operating activities

 II. Cash flow generated by investing

 Cash received from investment
                                                    45,000,000.00            210,000,000.00
 retrieving

 Cash received as investment gains                 174,741,274.88            162,479,782.83

 Net cash retrieved from disposal of
 fixed assets, intangible assets, and                4,787,323.86                 68,875.00
 other long-term assets

 Net cash received from disposal of
 subsidiaries or other operational units

 Other investment-related cash
 received

 Sub-total of cash inflow due to
                                                   224,528,598.74            372,548,657.83
 investment activities

 Cash paid for construction of fixed
        assets, intangible assets and              513,663,936.74            660,012,394.04
        other long-term assets

 Cash paid as investment                           134,650,000.00            224,910,442.24

 Net increase of loan against pledge

 Net cash received from subsidiaries
 and other operational units

 Other cash paid for investment
 activities

 Sub-total of cash outflow due to
                                                   648,313,936.74            884,922,836.28
 investment activities

 Net cash flow generated by
                                                  -423,785,338.00           -512,374,178.45
 investment

 III.Cash flow generated by financing

 Cash received as investment

 Including: Cash received as
 investment from minor shareholders

      Cash received as loans                      2,124,930,000.00          2,169,880,000.00

 Other financing –related cash
                                                   140,145,195.50             89,083,500.00
 received

 Sub-total of cash inflow from
                                                  2,265,075,195.50          2,258,963,500.00
 financing activities


125
2021 Annual Report


                  Items                        2021                       2020

 Cash to repay debts                                  2,503,707,200.00           1,730,365,000.00

 Cash paid as dividend, profit, or
                                                      1,667,198,772.33           1,588,108,152.77
 interests

 Including: Dividend and profit paid
                                                        755,677,776.30             380,689,946.00
 by subsidiaries to minor shareholders

 Other cash paid for financing
                                                      1,230,750,884.93           1,272,832,461.00
 activities

 Sub-total of cash outflow due to
                                                      5,401,656,857.26           4,591,305,613.77
 financing activities

 Net cash flow generated by financing                 -3,136,581,661.76          -2,332,342,113.77

 IV. Influence of exchange rate
 alternation on cash and cash                              -371,334.74               1,728,690.91
 equivalents

 V.Net increase of cash and cash
                                                        109,006,386.66            -206,800,360.26
 equivalents

 Add: balance of cash and cash
                                                      2,846,176,803.89           3,052,977,164.15
 equivalents at the beginning of term

 VI ..Balance of cash and cash
                                                      2,955,183,190.55           2,846,176,803.89
 equivalents at the end of term


6. Cash Flow Statement of the Parent Company

                                                                                            In RMB

                  Items                        2021                       2020

 I.Cash flows from operating activities

 Cash received from sales of goods or
                                                      1,512,002,307.36             993,839,736.20
 rending of services

  Tax returned

 Other cash received from business
                                                        139,579,001.22              93,504,920.38
 operation

 Sub-total of cash inflow                             1,651,581,308.58           1,087,344,656.58

 Cash paid for purchasing of
                                                         85,431,635.37             103,008,692.77
 merchandise and services

 Cash paid to staffs or paid for staffs                 156,876,478.03             127,409,377.73

 Taxes paid                                              55,685,419.35              38,537,660.12

 Other cash paid for business activities                 89,308,303.12             345,450,155.26

 Sub-total of cash outflow from                         387,301,835.87             614,405,885.88


126
2021 Annual Report


      business activities

 Net cash generated from /used in
                                           1,264,279,472.71    472,938,770.70
 operating activities

 II. Cash flow generated by investing

 Cash received from investment
                                            310,000,000.00     150,000,000.00
 retrieving

 Cash received as investment gains         1,222,810,553.86    891,162,907.16

 Net cash retrieved from disposal of
 fixed assets, intangible assets, and         1,359,500.00            7,700.00
 other long-term assets

 Net cash received from disposal of
                                                                 4,694,628.72
 subsidiaries or other operational units

 Other investment-related cash
 received

  Sub-total of cash inflow due to
                                           1,534,170,053.86   1,045,865,235.88
 investment activities

 Cash paid for construction of fixed
        assets, intangible assets and       145,749,738.08     270,834,718.98
        other long-term assets

        Cash paid as investment            1,380,489,292.00   1,486,620,726.24

 Net cash received from subsidiaries
 and other operational units

 Other cash paid for investment
 activities

 Sub-total of cash outflow due to
                                           1,526,239,030.08   1,757,455,445.22
 investment activities

 Net cash flow generated by
                                              7,931,023.78     -711,590,209.34
 investment

 III. Cash flow generated by financing

      Cash received as investment

        Cash received as loans             2,124,930,000.00   1,809,290,000.00

 Other financing –related ash received

  Sub-total of cash inflow from
                                           2,124,930,000.00   1,809,290,000.00
 financing activities

      Cash to repay debts                  2,422,947,200.00   1,479,775,000.00

 Cash paid as dividend, profit, or
                                            886,140,438.61    1,101,090,057.96
 interests

 Other cash paid for financing                8,609,914.93       1,122,177.00


127
2021 Annual Report


 activities

  Sub-total of cash outflow due to
                                        3,317,697,553.54    2,581,987,234.96
 financing activities

 Net cash flow generated by financing   -1,192,767,553.54    -772,697,234.96

 IV. Influence of exchange rate
 alternation on cash and cash                -371,334.74        1,728,690.91
 equivalents

 V.Net increase of cash and cash
                                           79,071,608.21    -1,009,619,982.69
 equivalents

 Add: balance of cash and cash
                                        1,780,543,319.09    2,790,163,301.78
 equivalents at the beginning of term

 VI ..Balance of cash and cash
                                        1,859,614,927.30    1,780,543,319.09
 equivalents at the end of term




128
               2021 Annual Report
               7. Consolidated Statement on Change in Owners’ Equity
               Amount in this period
                                                                                                                                                                                                                 In RMB

                                                                                                                                 2021

                                                                                       Owner’s equity Attributable to the Parent Company

                                                        Other Equity
                                                         instrument
                                                                                                                     Spec                       Com
                                                                                         Less:                                                                                                          Minor
            Items                                                                                                                                                                                                      Total of owners’
                                                            Su                                         Other         ializ                      mon
                                   Share                                   Capital       Shares                                 Surplus                                     Oth                     shareholders’
                                                                                                   Comprehensi        ed                        risk    Retained profit             Subtotal                                equity
                                                 Prefer     stai                                                                                                                                        equity
                                  Capital                                  reserves        in                                   reserves                                    er
                                                  red       na     Other                            ve Income        reser                      prov
                                                                                         stock
                                                 stock      ble                                                       ve                        ision
                                                            de
                                                            bt

I.Balance at the end of         2,090,806,126.                             645,969,2                                                                                              7,933,136,499.
                                                                                                    302,895,877.65           1,167,785,965.63            3,725,679,319.35                           2,299,180,085.17    10,232,316,584.28
last year                                   00                                10.48                                                                                                            11

Add:        Change         of
                                                                                                                                                              546,190.04             546,190.04                               546,190.04
       accounting policy

Correcting of previous
errors

Merger of entities under
common control

  Other

II.Balance at the
                                2,090,806,126.                             645,969,2                                                                                              7,933,682,689.
beginning of current                                                                                302,895,877.65           1,167,785,965.63            3,726,225,509.39                           2,299,180,085.17    10,232,862,774.32
                                            00                                10.48                                                                                                            15
year


               129
               2021 Annual Report
                                                                                                                       2021

                                                                              Owner’s equity Attributable to the Parent Company

                                               Other Equity
                                                instrument
                                                                                                            Spec                     Com
                                                                                Less:                                                                                                       Minor
           Items                                                                                                                                                                                           Total of owners’
                                                   Su                                        Other          ializ                    mon
                               Share                              Capital       Shares                               Surplus                                     Oth                     shareholders’
                                                                                          Comprehensi        ed                      risk    Retained profit             Subtotal                               equity
                                        Prefer     stai                                                                                                                                     equity
                              Capital                             reserves        in                                 reserves                                    er
                                         red       na     Other                            ve Income        reser                    prov
                                                                                stock
                                        stock      ble                                                       ve                      ision
                                                   de
                                                   bt

III.Changed in the                                                67,491,30                                                                                            1,048,755,296.
                                                                                          -110,718,411.31            57,589,364.93            1,034,393,034.39                             39,371,087.79     1,088,126,383.81
current year                                                           8.01                                                                                                         02

(1)Total                                                                                                                                                             1,589,688,570.
                                                                                          -110,718,411.31                                     1,700,406,981.99                           726,377,718.29      2,316,066,288.97
comprehensive income                                                                                                                                                                68

(II)Investment or
decreasing of capital by
owners

1.Ordinary Shares inves
ted by shareholders

2.Holders of other equit
y instruments invested c
apital

3.Amount of shares paid
and accounted as
owners’ equity

4.Other

               130
              2021 Annual Report
                                                                                                                     2021

                                                                            Owner’s equity Attributable to the Parent Company

                                              Other Equity
                                               instrument
                                                                                                        Spec                       Com
                                                                              Less:                                                                                                      Minor
           Items                                                                                                                                                                                        Total of owners’
                                                  Su                                       Other        ializ                      mon
                              Share                              Capital      Shares                               Surplus                                     Oth                    shareholders’
                                                                                        Comprehensi      ed                        risk    Retained profit             Subtotal                              equity
                                       Prefer     stai                                                                                                                                   equity
                             Capital                             reserves       in                                 reserves                                    er
                                        red       na     Other                           ve Income      reser                      prov
                                                                              stock
                                       stock      ble                                                    ve                        ision
                                                  de
                                                  bt

                                                                                                                                                                     -608,424,582.6
(III)Profit allotment                                                                                            57,589,364.93             -666,013,947.60                          -755,677,776.30    -1,364,102,358.97
                                                                                                                                                                                  7

1.Providing of surplus
                                                                                                                   57,589,364.93              -57,589,364.93
reserves

 2.Providing of common
risk provisions

3.Allotment to the                                                                                                                                                  -608,424,582.6
                                                                                                                                             -608,424,582.67                          -755,677,776.30    -1,364,102,358.97
owners (or shareholders)                                                                                                                                                          7

  4.Other

(IV) Internal transferring
of owners’ equity

1. Capitalizing of capital
reserves (or to capital
shares)

2. Capitalizing of surplus
reserves (or to capital
              131
              2021 Annual Report
                                                                                                                      2021

                                                                             Owner’s equity Attributable to the Parent Company

                                              Other Equity
                                               instrument
                                                                                                         Spec                     Com
                                                                               Less:                                                                                                 Minor
           Items                                                                                                                                                                                    Total of owners’
                                                  Su                                        Other        ializ                    mon
                              Share                              Capital       Shares                               Surplus                                 Oth                   shareholders’
                                                                                         Comprehensi      ed                      risk    Retained profit          Subtotal                              equity
                                       Prefer     stai                                                                                                                               equity
                             Capital                             reserves        in                                 reserves                                er
                                        red       na     Other                            ve Income      reser                    prov
                                                                               stock
                                       stock      ble                                                     ve                      ision
                                                  de
                                                  bt

shares)

3.Making up losses by
surplus reserves.

4.Change amount of
defined benefit plans
that carry forward
Retained earnings

5.Other comprehensive
income carry-over
retained earnings

6.Other

(V). Special reserves

1. Provided this year

2.Used this term

(VI)Other                                                      67,491,30                                                                                        67,491,308.01     68,671,145.80      136,162,453.81



              132
               2021 Annual Report
                                                                                                                             2021

                                                                                   Owner’s equity Attributable to the Parent Company

                                                    Other Equity
                                                     instrument
                                                                                                                 Spec                       Com
                                                                                     Less:                                                                                                          Minor
            Items                                                                                                                                                                                                  Total of owners’
                                                        Su                                         Other         ializ                      mon
                               Share                                   Capital       Shares                                 Surplus                                     Oth                     shareholders’
                                                                                               Comprehensi        ed                        risk    Retained profit             Subtotal                                equity
                                             Prefer     stai                                                                                                                                        equity
                              Capital                                  reserves        in                                   reserves                                    er
                                              red       na     Other                            ve Income        reser                      prov
                                                                                     stock
                                             stock      ble                                                       ve                        ision
                                                        de
                                                        bt
                                                                            8.01

IV. Balance at the end of   2,090,806,126.                             713,460,5                                                                                              8,982,437,985.
                                                                                                192,177,466.34           1,225,375,330.56            4,760,618,543.78                           2,338,551,172.96    11,320,989,158.13
this term                               00                                18.49                                                                                                            17




               133
               2021 Annual Report
               Amount in last year
                                                                                                                                                                                                  In RMB

                                                                                                                           2020

                                                                                 Owner’s equity Attributable to the Parent Company
                                             Other Equity
                                              instrument

                                             Pr                                                             Spec                       Com
                                                   Su                             Less:                                                                                                         Minor
          Items                              ef                                                                                                                                                                Total of owners’
                                                                                              Other         ializ                      mon
                                                   sta           Capital          Share                                Surplus                                    Oth                       shareholders’
                          Share Capital      err         Ot                               Comprehensi        ed                        risk    Retained profit             Subtotal                                 equity
                                                   in           reserves           s in                               reserves                                    er                            equity
                                             ed          he                                 ve Income       reser                      prov
                                                   ab                             stock
                                             st          r                                                   ve                        ision
                                                   le
                                             oc
                                                   de
                                             k
                                                   bt

I.Balance at the end
                          2,090,806,126.00                    3,094,017,129.31             382,193,344.90           1,074,553,052.81           3,915,790,810.76         10,557,360,463.78   2,139,676,884.88    12,697,037,348.66
of last year

Add:      Change     of
     accounting
     policy

Correcting of
previous errors

Merger of entities
under common
control

  Other

II.Balance at the
                          2,090,806,126.00                    3,094,017,129.31             382,193,344.90           1,074,553,052.81           3,915,790,810.76         10,557,360,463.78   2,139,676,884.88    12,697,037,348.66
beginning of current


               134
               2021 Annual Report
                                                                                                                       2020

                                                                              Owner’s equity Attributable to the Parent Company
                                         Other Equity
                                          instrument

                                         Pr                                                              Spec                      Com
                                               Su                              Less:                                                                                                       Minor
         Items                           ef                                                                                                                                                               Total of owners’
                                                                                           Other         ializ                     mon
                                               sta            Capital          Share                               Surplus                                    Oth                       shareholders’
                         Share Capital   err         Ot                                Comprehensi        ed                       risk    Retained profit            Subtotal                                 equity
                                               in            reserves           s in                               reserves                                   er                           equity
                                         ed          he                                  ve Income       reser                     prov
                                               ab                              stock
                                         st          r                                                    ve                       ision
                                               le
                                         oc
                                               de
                                         k
                                               bt

year

III.Changed in the
                                                          -2,448,047,918.83             -79,297,467.25             93,232,912.82            -190,111,491.41         -2,624,223,964.67    159,503,200.29    -2,464,720,764.38
current year

(1)Total
comprehensive                                                                           -79,297,467.25                                       867,842,774.78           788,545,307.53     496,542,231.29     1,285,087,538.82

income

(II)Investment or
decreasing of                                                                                                                                                          45,432,585.00      43,650,915.00       89,083,500.00

capital by owners

1.Ordinary Shares i
nvested by sharehol
ders

2.Holders of other
equity instruments i
nvested capital

3.Amount of shares
               135
             2021 Annual Report
                                                                                                               2020

                                                                      Owner’s equity Attributable to the Parent Company
                                          Other Equity
                                           instrument

                                          Pr                                                   Spec                        Com
                                                Su                     Less:                                                                                                     Minor
        Items                             ef                                                                                                                                                    Total of owners’
                                                                                   Other        ializ                      mon
                                                sta        Capital     Share                               Surplus                                    Oth                     shareholders’
                          Share Capital   err         Ot                       Comprehensi       ed                        risk    Retained profit           Subtotal                                equity
                                                in         reserves     s in                               reserves                                   er                         equity
                                          ed          he                         ve Income     reser                       prov
                                                ab                     stock
                                          st          r                                          ve                        ision
                                                le
                                          oc
                                                de
                                          k
                                                bt

paid and accounted
as owners’ equity

4.Other                                                                                                                                                     45,432,585.00      43,650,915.00       89,083,500.00

(III)Profit                                                                                                                      -1,057,954,266.1
                                                                                                           93,232,912.82                                    -964,721,353.37   -380,689,946.00    -1,345,411,299.37
allotment                                                                                                                                        9

1.Providing of
                                                                                                           93,232,912.82             -93,232,912.82
surplus reserves

 2.Providing         of
common             risk
provisions

3.Allotment to the
owners (or                                                                                                                          -882,320,185.17         -882,320,185.17   -380,689,946.00    -1,263,010,131.17

shareholders)

  4.Other                                                                                                                           -82,401,168.20          -82,401,168.20                         -82,401,168.20

(IV) Internal


             136
              2021 Annual Report
                                                                                                             2020

                                                                    Owner’s equity Attributable to the Parent Company
                                        Other Equity
                                         instrument

                                        Pr                                                   Spec                        Com
                                              Su                     Less:                                                                                             Minor
          Items                         ef                                                                                                                                           Total of owners’
                                                                                 Other        ializ                      mon
                                              sta        Capital     Share                               Surplus                                   Oth              shareholders’
                        Share Capital   err         Ot                       Comprehensi       ed                        risk    Retained profit         Subtotal                         equity
                                              in         reserves     s in                               reserves                                  er                  equity
                                        ed          he                         ve Income     reser                       prov
                                              ab                     stock
                                        st          r                                          ve                        ision
                                              le
                                        oc
                                              de
                                        k
                                              bt

transferring of
owners’ equity

1. Capitalizing of
capital reserves (or
to capital shares)

2. Capitalizing of
surplus reserves (or
to capital shares)

3.Making up losses
by surplus reserves.

4.Change amount of
defined benefit
plans that carry
forward
Retained earnings

5.Other

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               2021 Annual Report
                                                                                                                           2020

                                                                                 Owner’s equity Attributable to the Parent Company
                                            Other Equity
                                             instrument

                                            Pr                                                              Spec                       Com
                                                  Su                              Less:                                                                                                         Minor
        Items                               ef                                                                                                                                                                 Total of owners’
                                                                                              Other         ializ                      mon
                                                  sta            Capital          Share                                Surplus                                    Oth                       shareholders’
                         Share Capital      err         Ot                                Comprehensi        ed                        risk    Retained profit            Subtotal                                  equity
                                                  in            reserves           s in                               reserves                                    er                            equity
                                            ed          he                                  ve Income       reser                      prov
                                                  ab                              stock
                                            st          r                                                    ve                        ision
                                                  le
                                            oc
                                                  de
                                            k
                                                  bt

comprehensive
income carry-over
retained earnings

6.Other

(V). Special
reserves

1. Provided this
year

2.Used this term

(VI)Other                                                  -2,448,047,918.83                                                                                          -2,448,047,918.83     43,650,915.00     -2,404,397,003.83

IV. Balance at the
                         2,090,806,126.00                      645,969,210.48              302,895,877.65           1,167,785,965.63           3,725,679,319.35         7,933,136,499.11    2,299,180,085.17    10,232,316,584.28
end of this term




               138
        2021 Annual Report
        8.Statement of change in owner’s Equity of the Parent Company

        Amount in this period
                                                                                                                                                                In RMB
                                                                                                                  2021
                                                           Other Equity
                                                            instrument
                                                                                                                                Speci
                                                                                                    Less:         Other                                                        O
                Items                                                                                                           alized                                              Total of owners’
                                  Share capital     Prefer     Susta            Capital reserves   Shares     Comprehensive              Surplus reserves   Retained profit    th
                                                                          Oth                                                   reserv                                                   equity
                                                     red       inabl                               in stock       Income                                                       er
                                                                          er                                                      e
                                                    stock        e
                                                               debt

I.Balance at the end of last
                                 2,090,806,126.00                               938,969,546.79                302,895,877.65              987,813,698.07    3,667,543,163.36        7,988,028,411.87
year

Add: Change of accounting
                                                                                                                                                                 546,190.04               546,190.04
       policy

Correcting of previous errors

        Other

II.Balance at the beginning of
                                 2,090,806,126.00                               938,969,546.79                302,895,877.65              987,813,698.07    3,668,089,353.40        7,988,574,601.91
current year

III.Changed in the current
                                                                                  -4,118,261.28               -110,718,411.31              57,589,364.93     918,392,662.70          861,145,355.04
year

(I)Total comprehensive
                                                                                                              -110,718,411.31                               1,584,406,610.30        1,473,688,198.99
income

(II) Investment or decreasing
of capital by owners

1.Ordinary Shares invested b

        139
      2021 Annual Report
                                                                                                                2021
                                                         Other Equity
                                                          instrument
                                                                                                                            Speci
                                                                                                  Less:         Other                                                     O
             Items                                                                                                          alized                                             Total of owners’
                                  Share capital   Prefer     Susta            Capital reserves   Shares     Comprehensive            Surplus reserves   Retained profit   th
                                                                        Oth                                                 reserv                                                  equity
                                                   red       inabl                               in stock      Income                                                     er
                                                                        er                                                    e
                                                  stock        e
                                                             debt

y shareholders

2.Holders of other equity inst
ruments invested capital

3.Amount of shares paid and
accounted as owners’ equity

4.Other

(III)Profit allotment                                                                                                                57,589,364.93    -666,013,947.60        -608,424,582.67

1.Providing of surplus
                                                                                                                                       57,589,364.93     -57,589,364.93
reserves

2.Allotment to the owners (or
                                                                                                                                                        -608,424,582.67        -608,424,582.67
shareholders)

3.Other

(IV) Internal transferring of
owners’ equity

1. Capitalizing of capital
reserves (or to capital shares)

2. Capitalizing of surplus
reserves (or to capital shares)


      140
       2021 Annual Report
                                                                                                                  2021
                                                           Other Equity
                                                            instrument
                                                                                                                               Speci
                                                                                                    Less:         Other                                                       O
             Items                                                                                                             alized                                              Total of owners’
                                  Share capital     Prefer     Susta            Capital reserves   Shares     Comprehensive             Surplus reserves   Retained profit    th
                                                                          Oth                                                  reserv                                                   equity
                                                     red       inabl                               in stock      Income                                                       er
                                                                          er                                                     e
                                                    stock        e
                                                               debt

3.Making up losses by
surplus reserves.

4.Change amount of defined
benefit plans that carry
forward
Retained earnings

5.Other comprehensive
income carry-over retained
earnings

6.Other

(V) Special reserves

1. Provided this year

2.Used this term

(VI)Other                                                                       -4,118,261.28                                                                                       -4,118,261.28

IV. Balance at the end of this
                                 2,090,806,126.00                               934,851,285.51                192,177,466.34            1,045,403,063.00   4,586,482,016.10        8,849,719,956.95
term




       141
         2021 Annual Report
         Amount in last year
                                                                                                                                                                                      In RMB

                                                                                                                   2020

                                                         Other Equity
                                                             instrument
                                                                                                                                Specia
                                                                                                    Less:         Other
                Items                                                                                                           lized                                          Ot    Total of owners’
                                    Share Capital     Prefer     Sust     Ot   Capital reserves    Shares     Comprehensive              Surplus reserves   Retained profit
                                                                                                                                reserv                                         her        equity
                                                       red       aina     he                       in stock      Income
                                                                                                                                  e
                                                      stock       ble     r
                                                                 debt

I.Balance at the end of last
                                   2,090,806,126.00                            2,974,458,696.93               382,193,344.90             894,580,785.25     3,710,584,722.68         10,052,623,675.76
year

Add: Change of accounting
       policy

Correcting of previous errors

         Other

II.Balance at the beginning of
                                   2,090,806,126.00                            2,974,458,696.93               382,193,344.90             894,580,785.25     3,710,584,722.68         10,052,623,675.76
current year

III.Changed in the current year                                                -2,035,489,150.14               -79,297,467.25              93,232,912.82      -43,041,559.32         -2,064,595,263.89

(I)Total comprehensive
                                                                                                               -79,297,467.25                                932,329,128.24            853,031,660.99
income

(II) Investment or decreasing
of capital by owners

1.Ordinary Shares invested b
y shareholders

2.Holders of other equity instr

         142
        2021 Annual Report
                                                                                                              2020

                                                     Other Equity
                                                         instrument
                                                                                                                         Specia
                                                                                               Less:         Other
              Items                                                                                                      lized                                         Ot    Total of owners’
                                  Share Capital   Prefer     Sust     Ot   Capital reserves   Shares     Comprehensive            Surplus reserves   Retained profit
                                                                                                                         reserv                                        her        equity
                                                   red       aina     he                      in stock      Income
                                                                                                                           e
                                                  stock       ble     r
                                                             debt

uments invested capital

3.Amount of shares paid and
accounted as owners’ equity

4.Other

(III)Profit allotment                                                                                                             93,232,912.82    -975,553,097.99          -882,320,185.17

1.Providing of surplus
                                                                                                                                    93,232,912.82     -93,232,912.82
reserves

2.Allotment to the owners (or
                                                                                                                                                     -882,320,185.17          -882,320,185.17
shareholders)

3.Other

(IV) Internal transferring of
                                                                                                                                                          182,410.43                182,410.43
owners’ equity

1. Capitalizing of capital
reserves (or to capital shares)

2. Capitalizing of surplus
reserves (or to capital shares)

3.Making up losses by
surplus reserves.

        143
        2021 Annual Report
                                                                                                                 2020

                                                       Other Equity
                                                           instrument
                                                                                                                             Specia
                                                                                                  Less:         Other
              Items                                                                                                          lized                                          Ot    Total of owners’
                                  Share Capital     Prefer     Sust     Ot   Capital reserves    Shares     Comprehensive             Surplus reserves   Retained profit
                                                                                                                             reserv                                         her        equity
                                                     red       aina     he                       in stock      Income
                                                                                                                               e
                                                    stock       ble     r
                                                               debt

4.Change amount of defined
benefit plans that carry
forward
Retained earnings

5.Other comprehensive
income carry-over retained
earnings

6.Other                                                                                                                                                      182,410.43                 182,410.43

(V) Special reserves

1. Provided this year

2.Used this term

(VI)Other                                                                  -2,035,489,150.14                                                                                    -2,035,489,150.14

IV. Balance at the end of this
                                 2,090,806,126.00                              938,969,546.79               302,895,877.65            987,813,698.07     3,667,543,163.36         7,988,028,411.87
term




        144
2021 Annual Report


III. Company Profile
      1. Basic information of the IPO and share capital of the company

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.,RMB 418.2136 million, was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons
invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested
RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.

2 . Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legal
person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co., Ltd.
in June 1996.

3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval
document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document, the
Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at the
price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July
1996.

4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of
China with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested joint
stock company limited.

5.The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following
manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on
3.3-for-10 basis.

6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.
487 document, the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of
“payable in full on application, pro-rate placing and subject to refund” with the par value of each share being
RMB 1 in January 1998.

7.In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant to
the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of
CSRC with ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249 million
shares at the price of RMB 11 per Right.73,822,250 ordinary shares were actually placed to all .

8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co.,
Ltd. (Group Co.) for holding and management without compensation.

145
2021 Annual Report


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
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”.

Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties
such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by Guangdong
Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares and paid RMB
803.50 million to Guangdong Provincial Expressway Co., Ltd for purchasing the 25% stake of Guangdong
Provincial Fokai Expressway Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; and issued
466,325,020 shares to Guangdong Provincial Highway Construction Co., Ltd for purchasing the 100% stake of
Guangzhou Guangzhu Traffic Investment Management Co., Ltd held by Guangdong Provincial Highway
Construction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095 A-shares to Yadong
Fuxing Yalian     Investment Co.,Ltd, Tibet Yinyue Investment Management Co.,Ltd and Guangfa 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. Company's registered place and headquarters address
Company name:Guangdong Provincial Expressway Development Co., Ltd.
Registration placeNo.85, Baiyun Road, Yuexiu District, Guangzhou.
Headquarters Office : 45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tihe Disrtict ,
 Guangzhou
     3. Business nature and main business activities
 Industry and main products of the company: highway management and maintenance.
     General business items: investment, construction, charging, maintenance and service management of
expressways, grade roads and bridges; Automobile rescue service, maintenance and cleaning; Parking lot charges;
Design, production, release and agency of all kinds of advertisements at home and abroad; Land development
along the highway; Warehousing business; Intelligent transportation technology research and development and
service; Equity investment, management and consultation. (Projects that must be approved according to law can
be operated only after being approved by relevant departments).
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway,Jingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou

146
2021 Annual Report


Guanghui Expressway Co., Ltd.., Guangdong Jiangzhong Expressway Co.Ltd., Zhaoqing Yuezhao Expressway
Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology
Petty Loan Co., Ltd., Guangdong Guangle Expressway Co.,Ltd., Guoyuan Securities Co., Ltd, Hunan Lianzhi
Technology Co., Ltd.and SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.
     4. Scope and changes of consolidated financial statements in the current period
(1) Scope of current consolidated financial statements
     The consolidated scope of the current financial statements invovles Guangdong Expressway Technology
Investment Co., Ltd., Yuegao Capital Holding (Guangzhou) Co., Ltd., its holding subsidiaries Guangfo
Expressway Co., Ltd., Jingzhu Expressway Guangzhu Section Co., Ltd. and Guanghui Expressway Co., Ltd..

(2) Changes in the scope of consolidated financial statements in the current period
     None
     5. Approval and submission date of financial report
The financial statements have been authorized for issuance by the 27th meeting of the Ninth Board of Directors of
the Group on March 15 ,2022.

IV. Basis for the preparation of financial statements

 1.Preparation basis

     The financial statements of the Company have been prepared on basis of going concern in conformity with
Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises
issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33, the
Ministry of Finance revised order No.76) on February 15, 2006, and revised Accounting Standards (order 42 of
the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to
the Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China Securities
Regulatory Commission (CSRC).
     According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises,
the Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the
lower of its book value at its classification date and fair value minus expected disposal costs. Where assets are
impaired, provisions for asset impairment are made in accordance with relevant requirements
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


Specific accounting policies and accounting estimates are indicated as follows:


None

 1. Statement of Compliance with the Accounting Standards for Business Enterprises

       The financial statements of the Company are recognized and measured in accordance with the regulations in


147
2021 Annual Report


the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial
position, business result and cash flow of the Company,. In addition, the financial statements of the Company
comply, in all material respects, with the revised disclosing requirements for financial statements and the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—General
Provisions on Financial Reports (2014 Revision) issued by China Securities Regulatory Commission (CSRC) in
2014.

2. Accounting period

      The accounting period of the Company is classified as interim period and annual period. Interim period
refers to the reporting period shorter than a complete annual period. The accounting period of the Company is the
calendar year from January 1 to December 31.

3.Operating cycle

The normal operating cycle refers to the period from the time when the Group purchases assets for processing to
the time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses it
as a criterion for liquidity classification of assets and liabilities.

4.Standard currency for bookkeeping

      The Company adopts CNY to prepare its functional statements.

5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control

1.Business Combinations under the Same Control
     If business participating in the combination are ultimately controlled by the same party or parties before and
after the combination, and the control is not temporary, it is an business combination under the same control.
Usually, business combination under the same control refers to the combination between business within the same
business, except which it is generally not regarded as business combination under the same control.
     The assets and liabilities obtained by the Company as the combining party in the business combination shall
be measured according to the book value of the combined party in the consolidated financial statements of the
ultimate controlling party on the combination date. For the long-term equity investment formed by holding
combination under the same control, the company takes the share of the book owner's equity of the combined
party on the combination date as the initial investment cost for forming the long-term equity investment. See the
long-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorption
and combination under the same control shall be recorded by the Company according to the original book value of
the related assets and liabilities in the combined party. The company adjusts the capital reserve according to the
difference between the book value of the net assets obtained and the book value of the combination consideration
paid (or the total par value of the issued shares); If the capital reserve is insufficient to offset, the retained earnings
shall be adjusted.
     All directly related expenses incurred by the Company as a combining party for business combination,
including audit fees, evaluation fees, legal service fees, etc., are included in the current profits and losses when
incurred.
     Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial
measurement amount of bonds and other debts issued. Fees, commissions and other expenses incurred in issuing

148
2021 Annual Report


equity securities in business combination shall be offset against the premium income of equity securities, and if
the premium income is insufficient to offset, the retained earnings shall be offset.
      If the holding under the same control is combined to form a parent-subsidiary relationship, the parent
company shall prepare consolidated financial statements on the consolidation date, including consolidated balance
sheet, consolidated income statement and consolidated cash flow statement.
      For the consolidated balance sheet, the book value of the combined party in the consolidated financial
statements of the ultimate controlling party shall be incorporated into the consolidated financial statements, and
the transactions between the combining party and the combined party on the consolidation date and the previous
period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated
Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash
flow realized by the combining party and the combined party from the beginning of the current consolidation
period to the consolidation date, and involve the cash flow generated by the transactions and internal transactions
between the two parties in the current period, which shall be offset according to the relevant principles of the
consolidated financial statements.
      2. If the parties involved in the combination are not ultimately controlled by the same party or parties before
and after the combination, it is a business combination not under the same control.
Business Combinations not under the Same Control

      Determine the cost of business combination: the cost of business combination includes the fair value of cash
or non-cash assets paid by the purchaser for business combination, debts issued or assumed, and equity securities
issued on the purchase date.
      In the business combination not under the same control, the intermediary expenses such as auditing, legal
services, evaluation and consultation and other related management expenses incurred by the purchaser for the
business combination shall be included in the current profits and losses when they occur; Transaction costs of
equity securities or debt securities issued by the purchaser as combination consideration shall be included in the
initial recognized amount of equity securities or debt securities.
      For the long-term equity investment obtained by holding combination not under the same control, the
company takes the combination cost determined on the purchase date (excluding cash dividends and profits that
should be collected from the investee) as the initial investment cost for the long-term equity investment of the
purchaser; All identifiable assets and liabilities obtained by absorption and combination under different control
that meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on
the date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the
purchaser or various identifiable assets and liabilities, the difference between the fair value of the relevant
non-monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of the
assets and recorded in the income statement of the current consolidation period.
      In a business combination not under the same control, the difference between the cost of business
combination and the fair value share of identifiable net assets of the purchaser obtained in the combination is
recognized as goodwill; In the case of absorption and combination, the difference is recognized as goodwill in the
individual financial statements of the parent company; In the case of holding combination, the difference is listed
as goodwill in the consolidated financial statements.
      The cost of business combination is less than the difference between the fair value share of identifiable net
assets acquired during the combination, which is included in the profits and losses (non-operating income) of the
current combination period after review by the Company. In the case of absorption and combination, the
difference is included in the individual income statement of the parent company in the current combination period;
In the case of holding combination, the difference is included in the consolidated income statement of the current

149
2021 Annual Report


combination period.
      If the business combination not under the same control realized step by step through multiple exchange
transactions is a package transaction, each transaction will be treated as a transaction to obtain control rights; If it
is not a package transaction, the equity of the purchased party held before the purchase date shall be re-measured
according to the fair value of the equity on the purchase date, and the difference between the fair value and its
book value shall be included in the current investment income; If the equity of the purchased party held before the
purchase date involves other comprehensive income, other comprehensive income related to it shall be converted
into the investment income of the current period on the purchase date, except for other comprehensive income
arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the
invested party.

6. Compilation method of consolidated financial statements

      (1) Consolidation scope
      The consolidation scope of consolidated financial statements is determined on the basis of control. Control
means that the Company has the power over the investee, is entitled to variable returns by participating in the
related activities of the investee, and has the ability to use the power over the investee to influence its return
amount. Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of
investee(s), structured subjects, etc.).
      (2) Compilation method of consolidated financial statements
      The consolidated financial statements of the Company are based on the financial statements of the parent
company and its subsidiaries, and are prepared according to other relevant information. When compiling, the
important internal transactions between the parent company and its subsidiaries, such as investment, transactions,
purchase and sale of inventories and their unrealized profits, are offset and combined item by item, and the
minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the
accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company, the
accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting
periods of the parent company before combination.
      (3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period
      During the reporting period, when preparing the consolidated balance sheet, the balance at the beginning of
the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same
control. When preparing the consolidated balance sheet, the balance at the beginning of the year of the
consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the
same control. During the reporting period, the subsidiaries are disposed of and the balance at the beginning of the
consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.
      During the reporting period, the income, expenses and profits of subsidiaries added by business combination
under the same control from the beginning to the end of the reporting period are included in the consolidated
income statement, and the cash flows from the beginning to the end of the reporting period are included in the
consolidated cash flow statement. For subsidiaries added due to business combination not under the same control,
the income, expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are
included in the consolidated income statement, and their cash flow from the purchase date to the end of the
reporting period is included in the consolidated cash flow statement. During the reporting period, the subsidiary is
disposed of, and the income, expenses and profits from the beginning of the period to the disposal date are
included in the consolidated income statement, and the cash flow from the beginning of the period to the disposal


150
2021 Annual Report


date is included in the consolidated cash flow statement.
      When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or
other reasons, the remaining equity investment after disposal shall be re-measured according to its fair value on
the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity, minus the difference between the share of the original subsidiary's net assets
calculated continuously from the purchase date and the sum of goodwill calculated according to the original
shareholding ratio, is included in the investment income in the current period when the control right is lost. Other
comprehensive income related to the original subsidiary's equity investment is converted into current investment
income when the control right is lost, except for other comprehensive income generated by the investee's
re-measurement of net liabilities or changes in net assets of the set income plan.
      The difference between the newly acquired long-term equity investment due to the purchase of minority
shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio,
and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries
and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to
adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the
capital reserve is insufficient to offset, the retained earnings will be adjusted.
      (4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights
      If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a
package transaction, the transactions shall be treated as transactions that dispose of subsidiaries and lose control
rights; However, the difference between the disposal price and the share of the subsidiary's net assets related to the
disposal investment before the loss of control right is recognized as other comprehensive income in the
consolidated financial statements, which will be transferred to the current profit and loss when the control right is
lost, except for other comprehensive income arising from the re-measurement of the net liabilities or changes in
net assets of the set income plan by the investee. If it is not a package transaction, before the loss of control, the
difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary
from the purchase date will be adjusted to the capital reserve, and if the capital reserve is insufficient to offset, the
retained earnings will be adjusted; In case of loss of control right, the accounting treatment shall be carried out
according to the above accounting policy when the control right over the original subsidiary is lost.

7.Recognition Standard of Cash & Cash Equivalents

      Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase), with strong
liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of
change.

8.Foreign Currency Transaction

     (1) Foreign currency business
     Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency
according to the spot rate on the transaction date.
     On the balance sheet date, foreign currency monetary items and foreign currency non-monetary items shall
be treated according to the following provisions: foreign currency monetary items shall be converted at the spot
rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the
balance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are
included in the current profits and losses; Foreign currency non-monetary items measured at historical cost are


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still converted at the spot rate on the transaction date, without changing their bookkeeping base currency amount;
Foreign currency non-monetary items measured at fair value shall be converted at the spot rate on the fair value
determination date, and the difference between the converted bookkeeping base currency amount and the original
bookkeeping base currency amount shall be treated as changes in fair value (including exchange rate changes) and
included in the current profits and losses; During the capitalization period, the exchange difference between the
principal and interest of foreign currency special loans is capitalized and included in the cost of assets that meet
the capitalization conditions.
      (2) Translation of foreign currency financial statements
      When converting foreign currency financial statements, the Company shall comply with the following
regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date,
and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of
occurrence; The income and expense items in the income statement shall be converted at the spot rate on the
transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot
rate on the transaction date). The translation difference of foreign currency financial statements generated
according to the above translation is recognized as other comprehensive income. The conversion of comparative
financial statements shall be handled according to the above provisions.

10.Financial instruments

       The Company recognizes the financial assets or liabilities when involved in financial instruments’
agreements.
       (1)Classification, recognition and measurement of financial assets
       In accordance with the characteristics of business model for managing financial assets and the contractual
cash flow of financial assets, the Company classifies financial assets into: financial assets measured in amortized
cost; financial assets measured at fair value and their's changes are included in other comprehensive income;
financial assets measured at fair value and their's changes are included in current profits and losses.
      The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value, whose changes are included in current profits and losses, relevant transaction costs are directly included
in current profits and losses; For other types of financial assets, relevant transaction costs are included in the
initial recognition amount.
       ①Financial assets measured at amortized cost
       The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements, that is, the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets, the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.
       ②Financial assets measured at fair value and changes included in other comprehensive income
       The Company's business model for managing such financial assets is to collect the contractual cash flow,
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculated
according to the actual interest rate method are included in current profits and losses.
       In addition, the Company designated some non-trading equity instrument investments as financial assets


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measured at fair value with changes included in other comprehensive income. The Company includes the relevant
dividend income of such financial assets in current profits and losses, and the changes in fair value in other
comprehensive gains. When the financial asset ceases to be recognized, the accumulated gains or losses
previously included in other comprehensive gains shall be transferred into retained income from other
comprehensive income, and not be included in current profit and loss.
       ③Financial assets measured at fair value and changes included in current profits and losses
       The Company includes the above-mentioned financial assets measured at amortized cost and those measured
at fair value and their's changes in financial assets other than financial assets of comprehensive income and
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition, the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets, the Company adopts fair value for
subsequent measurement, and includes changes in fair value into current profits and losses.
       (2)Classification, recognition and measurement of financial liabilities
       The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.
       1 Financial liabilities measured by the fair value and the changes recorded in profit or loss
       The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
       Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting, changes in fair value are included in current
profits and losses.
       Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.
       ② Other financial liabilities
       In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset, financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,
measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
       (3) Recognition basis and measurement methods for transfer of financial assets
       Financial assets satisfying one of the following conditions shall be terminated and recognized: ①The


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contractual right to collect the cash flow of the financial asset is terminated; ②The financial asset has been
transferred, and almost all the risks and rewards in the ownership of the financial asset have been transferred to
the transferee; ③The financial asset has been transferred, although the enterprise neither transfers nor retains
almost all the risks and rewards in the ownership of the financial asset, but it abandoned control of the financial
assets.
       In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets
ownership nor waive to control these assets, relevant financial assets shall be recognized in accordance with the
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized
correspondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to the
risk level that the enterprise faces resulting from the change of the value of the financial asset.
       If the overall transfer of the financial assets satisfies the derecognition criteria, the difference between the
book value of the transferred financial assets and the sum of the consideration received from transfer and
cumulative change in fair value previously recognized in other comprehensive income is accounted into the
current profit or loss.
       In case that the partial transfer of financial assets meets de-recognition conditions, the book value of
financial assets transferred shall be allocated as per respective fair value between de-recognized or not
de-recognized parts, and the difference between the sum of the consideration received due to transfer with the
accumulated amount of fair value changes that is previously included in other comprehensive income and shall be
allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or
loss.
       The Company shall determine whether almost all the risks and rewards of the ownership of the financial
assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee, the
confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the
financial asset have been retained, the confirmation of the financial asset shall not be terminated; if neither the
transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.
In case of remuneration, it shall continue to determine whether the enterprise has retained control over the assets
and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
       (4) Termination confirmation of financial liabilities
       If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.
       If the financial liabilities (or part thereof) are terminated, the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
       (5)Offsetting financial assets and financial liabilities
       When the Company has a legal right that is currently enforceable to set off the recognized financial assets
and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is


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presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
      (6) Method for determining the fair value of financial assets and financial liabilities
      Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date. The fair value of financial instruments existing in an active
market is determined by the Company according to its quoted price in this market. westbank The quoted prices in
the active market refer to the prices, which are easily available from the stock exchanges, brokers, industry
associations, pricing service institutions and etc. at a fixed term, and which represent the prices at which actually
occurred market transactions are made under fair conditions.¨ In can a financial instrument does not exist in
active markets, its fair value shall be determined by the Company with assessment techniques. The value appraisal
techniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latest
market transaction upon their own free will, the current fair value obtained by referring to other financial
instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc. In
valuation, the Company adopts valuation techniques that are applicable in the current situation and supported by
sufficient data and other information to select input values consistent with the characteristics of assets or liabilities
considered by market participants in the transactions of related assets or liabilities, and give priority to the use of
relevant observable input values as far as possible. Unallowable values are used if the relevant observable input
values are not available or are not practicable.
      (7)Equity instruments
      An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. The consideration received from issuing equity instruments, net of transaction costs,
are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to
holders of equity instruments are deducted from shareholders’ equity.
      The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the
Company's equity instruments during the period of their existence shall be treated as profit distribution.

10. Impairment of financial instruments

      The Company requires to confirm that the financial assets lost by impairment are financial assets measured
by amortized cost, investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains, mainly including notes receivable, accounts receivable,
other receivables, creditor's rights investment, other creditor's rights investment and long-term receivables and etc.
In addition, provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
      (1) Method of confirming impairment provision
      Based on anticipated credit loss, the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).
      Credit loss refers to the difference between the cash flow of all contracts discounted according to the original
real interest rate and the expected cash flow of all contracts receivable according to the contract, that is, the
present value of all cash shortages. Among them, the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.
      The general method of measuring anticipated credit loss is whether the credit risk of the Company's
financial assets (including other applicable items such as contract assets, similarly hereinafter) has increased
significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly

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since the initial recognition, the Company shall measure the loss preparation according to the amount equivalent
to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial
recognition, the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information,
including forward-looking information, when evaluating expected credit losses.
      Assuming that their credit risk has not increased significantly since the initial recognition, the Company may
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial
instruments with low credit risk on the balance sheet date.
      (2) Criteria for judging whether credit risk has increased significantly since the initial recognition
      If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition, the credit risk of the
financial asset is significantly increased. Except for special circumstances, the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
      (3) A portfolio-based approach to assessing expected credit risk
      The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk, such as
the related party's receivables, the receivables in dispute with the other party or involving litigation and arbitration,
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment, etc.
      In addition to the financial assets that assess credit risk individually, the Company shall divide financial
assets into different groups based on common risk characteristics, and assess credit risk on the basis of portfolio.
      (4) Accounting treatment of impairment of financial assets
      At the end of the duration, the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision, the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision, the difference is deemed as impairment profit.
      (5) Method of determining credit losses of various financial assets
      ①Receivable Account and Contract assets
      In regard to receivables without significant financing components, the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.
      In regard to accounts receivable with significant financing components, the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.
      In addition to the accounts receivable that assesses the credit risk individually, receivables are divided into
different portfolios based on their credit risk characteristics:
                          Items                                        Basis for determining combination:
         Protfolio 1:Aging protfolio           This portfolio is characterized by the aging of receivables as a credit risk.
       Portfolio   2 : Quality     Guarantee      This portfolio is the contract quality guarantee fund and other funds
       portfolio
      For the above portfolio 1, the measurement method of bad debts reserve is the aging analysis method,
specifically as follows:
                                  Aging                                                Proportion (%)
       Within 1 year(Including 1 year)                                                         0
       1-2 years                                                                                10
       2-3 years                                                                                30

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       3-4 years                                                                         50
       4-5 years                                                                         90
       Over 5 years                                                                      100
     For the guarantee fund portfolio of portfolio 2, no provision for bad debts shall be made unless there is
objective evidence that the money cannot be recovered according to the original terms of accounts receivable and
contract assets.
      ②Other receivable
      The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration, based on whether the credit risk of other receivables has increased significantly
since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually,
they are divided into different portfolios based on their credit risk characteristics:
                       Items                    Basis for determining combination:
       Protfolio 1                        This portfolio is a collection of various deposits, advances, pledges and other
                                          receivables in daily activities.
       Protfolio 2                        This portfolio is a reserve fund borrowed by employees in their daily business
                                          activities.
       Protfolio 3                        Other receivables other than the above portfolio.
      Combination of deposit, quality assurance fund and deposit and reserve fund combination except for
objective evidence that the Group will not be able to recover the amount according to the original terms of
receivables, will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for
other combinations is aging analysis, and the accrual proportion is the same as accounts receivable.
      ③ Creditor's rights investment
      Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration, based on whether the credit risk has increased significantly since the initial recognition. The
Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.

11.Inventory

1.Investories class:
The company’s stocks can be classified as: raw 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.
       Measurement of ending inventory
     On the balance sheet date, inventory shall be measured at the lower of cost and net realizable value. If the
cost of inventory is higher than its net realizable value, provision for inventory depreciation shall be accrued and
recorded into the current profits and losses.
     If the difference between the cost calculated by a single inventory item and its net realizable value is higher,
the inventory depreciation reserve shall be accrued and recorded into the current profits and losses. Net realizable
value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred
upon completion, estimated sales expenses and related taxes and fees.

  Physical inventories are managed by the perpetual inventory taking system.



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12.Contract assets and Contract liabilities

     In the contract between the Company and customers, the Company has the right to charge the contract price
for the goods and related services that have been transferred to customers, and meanwhile undertake the
performance obligation of transferring the goods or services to customers. When the customer actually pays the
contract consideration or the enterprise has transferred the goods or services to the customer before the
consideration becomes due and payable, the right to receive the consideration due to the transferred goods or
services shall be listed as contract assets, and recognized as accounts receivable or long-term receivables when the
unconditional right of collection is obtained. `
     In the contract between the Company and customers, the Company has the right to receive the contract
consideration before transferring the goods or services to customers, and in the meantime list the obligation to
transfer goods or services to customers due to the consideration received or receivable from customers as
contractual liabilities. When the Company fulfills its obligation to transfer goods or provide services to customers,
the contractual liabilities are recognized as income.
     The Company shall list the contract assets and liabilities under the same contract in net amount.

13. Long-term equity investments

       (1) Initial measurement
       The Company makes initial measurement of long-term equity investment in the following two situations:
       ① The initial investment cost of long-term equity investment formed by business combination shall be
determined in accordance with the following provisions:
       A. In a business combination under the same control, if the combining party pays cash, transfers non-cash
assets or assumes debts as the combination consideration, the share of the book value of the owner's equity of the
merged party in the consolidated financial statements of the final controlling party shall be taken as the initial
investment cost of long-term equity investment on the combination date. The difference between the initial
investment cost of long-term equity investment and the cash paid, the transferred non-cash assets and the book
value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset,
the retained earnings shall be adjusted. All directly related expenses incurred for business combination, including
audit fees, evaluation fees, legal service fees, etc., are included in the current profits and losses when they occur.
       B. In the business combination not under the same control, the Company determines the combination cost by
distinguishing the following situations:
       a) For business combination realized by one exchange transaction, the cost of combination is the fair value of
assets paid, liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;
       b) For business combination realized step by step through multiple exchange transactions, the sum of the
book value of the equity investment of the purchased party held before the purchase date and the new investment
cost on the purchase date shall be taken as the initial investment cost of the investment;
       c) Intermediary expenses such as auditing, legal services, evaluation and consultation, and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur;
       d) If future events that may affect the combination cost are agreed in the combination contract or agreement,
if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the
combination cost can be reliably measured, they will be included in the combination cost.
       ② Except for the long-term equity investment formed by business combination, the initial investment cost of
long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:

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      A. For the long-term equity investment obtained by cash payment, the actual purchase price shall be taken as
the initial investment cost. Initial investment cost includes expenses, taxes and other necessary expenditures
directly related to obtaining long-term equity investment.
      B. For long-term equity investment obtained through exchange of non-monetary assets, the initial investment
cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of
Non-monetary Assets.
      C. For long-term equity investment obtained through debt restructuring, the initial investment cost shall be
determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.
      ③ No matter how the long-term equity investment is obtained, when the investment is obtained, the cash
dividends or profits included in the paid consideration that have been declared but not yet issued by the investee
are separately accounted as receivable items, which does not constitute the initial investment cost of obtaining the
long-term equity investment.
      (2) Subsequent measurement
      Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.
      ① Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.
      If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee, the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment, the difference shall be included in the
current profits and losses, and the cost of long-term equity investment shall be adjusted at the same time.
      After obtaining the long-term equity investment, the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit, and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee, the book value of
long-term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss, other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee, the net profit of the investee is recognized after adjustment based on the fair value of the
identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company, the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company, and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee, unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future, the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
amount.
      When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee, the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed, and the part attributable to the Company shall be offset, and


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the investment income shall be recognized on this basis. Unrealized internal transaction losses between the
Company and the investee are asset impairment losses, which shall be fully recognized.
      Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital
institutions, mutual funds, trust companies or similar entities including investment-linked insurance funds.
Regardless of whether the above entities have a significant impact on this part of investment, the Company
chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments, and the rest is accounted for by equity method.
      ③ When the Company disposes of long-term equity investment, the difference between its book value and
the actual purchase price shall be included in the current profits and losses. For long-term equity investment
accounted by equity method, when disposing of the investment, it adopts the same basis as the investee's direct
disposal of related assets or liabilities, and accounts for the part originally included in other comprehensive
income according to the corresponding proportion.
      (3) Basis to determine joint control over and significant influence on the investee
      Joint control refers to the common control of an arrangement in accordance with the relevant agreement, and
the relevant activities of such arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. Significant influence means that the investor has the right to participate in the
decision-making on the financial and operating policies of the investee, but cannot control or jointly control the
formulation of these policies with other parties. When determining whether the investee can be controlled or exert
significant influence, the potential voting rights factors such as current convertible bonds and current executable
warrants of the investee held by the Company and other parties shall be considered at the same time.

14.Investment Property

The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
      Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.
(1)The measurement mode of investment property
①Depreciation or amortization method
      The estimated service life, net salvage value rate and annual depreciation (amortization) rate of investment
real estate are listed as follows:
      Type                           Estimated    service    life Estimated net salvage value Annual     depreciation
                                     (years)                      rate                      (amortization) rate
      Land use right                      Remaining useful life
             Houses and buildings         20-30 years                     3%-10%                   3%-4.85%
     ② Impairment test method and accounting treatment method
     See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual
methods of investment real estate.
     (2) Conversion of investment real estate
     The Company has conclusive evidence that the use of real estate has changed. When converting investment
real estate into self-use real estate or inventory, the fair value on the day of conversion is taken as the book value
of self-use real estate, and the difference between fair value and original book value is included in current profits

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and losses. When self-use real estate or inventory is converted into investment real estate measured by fair value
model, the investment real estate is priced according to the fair value on the conversion day. If the fair value on
the conversion day is less than the original book value, the difference is included in the current profits and losses;
If the fair value on the conversion date is greater than the original book value, the difference shall be included in
other comprehensive income.

15.Fixed assets

(1)Confirmation conditions
     The Company's fixed assets refer to tangible assets held for the production of commodities, provision of
labor services, leasing or operation management, which have a service life of more than one year, and whose
economic benefits are likely to be included into the Company and whose costs can be reliably measured.

(2)Depreciation method

      ① The Company's fixed assets include roads and bridges, houses and buildings, machinery and equipment,
electronic equipment, transportation tools and other equipment.
    ② For the fixed assets formed by special reserve expenditure, the special reserve shall be offset according to
the cost to form the fixed assets, and the accumulated depreciation of the same amount shall be recognized. The
fixed assets will not be depreciated in future periods.
     According to the nature and usage of fixed assets, the Company determines the service life and estimated net
salvage value of fixed assets. At the end of the year, the service life, estimated net salvage value and depreciation
method of fixed assets shall be rechecked, and if there is any difference with the original estimate, corresponding
adjustments shall be made.


                                                                                                        Annual
                                         Depreciation       Expected useful
                  Type                                                        Residual rate(%)      depreciation
                                            method              life(Year)
                                                                                                        rate(%)

 Guangfo Expressway                   Working flow basis   28 years           0%

  Fokai Expressway-Xiebian to
                                      Working flow basis   40 years           0%
 Sanbao Section
 Fokai Expressway-Sanbao to Shuikou
                                      Working flow basis   47.5 years         0%
 Section

 Jingzhu Expressway Guangzhu
                                      Working flow basis   30 years           0%
 Section

 Guanghui Expressway Co., Ltd.        Working flow basis   23 years           0%

 House Building                       The straight-line
                                                           20-30 years        3%-5%                3.17%-4.85%
                                      method

                                      The straight-line
 Machine Equipment                                         3-10 years         3%-5%                9.50%-32.33%
                                      method

                                      The straight-line
 Transportation Equipment                                  5-8 years          3%-5%                11.88%-19.40%
                                      method



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                                     The straight-line
 Other                                                   5 years             3%-5%               19.00%-19.40%
                                     method


16.Construction-in process

     The construction in progress of the Company refers to the plant, equipment and other fixed assets under
construction, which are accounted for in detail according to the project and recorded according to the actual cost,
including direct construction and installation costs and borrowing costs that meet the capitalization conditions.
When the construction in progress reaches the scheduled usable state, it will be carried over to fixed assets by
temporary estimation, stop interest capitalization, and start to accrue depreciation according to the determined
depreciation method of fixed assets. After the project is completed and final accounts are made, the original
estimated amount will be adjusted according to the amount of final accounts, but the original accrued depreciation
amount will not be adjusted.

17.Borrowing cost

     (1) Recognition principle and capitalization period of borrowing cost capitalization
     Borrowing costs incurred by the Company can be directly attributed to the purchase, construction or
production of assets that meet the capitalization conditions, and shall be capitalized when the following conditions
are met at the same time and included in the relevant asset costs:
     ① Production and expenditure have occurred;
     ② Borrowing costs have already occurred;
     ③ The purchase, construction or production activities required to make the assets reach the intended usable
or saleable state have started.
     Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are
abnormally interrupted in the process of purchase, construction or production, and the interruption time
continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased, built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state, the
capitalization of borrowing costs will continue.
     Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased, built
or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as
expenses in the current period.
     (2) Calculation method of capitalization amount of borrowing costs
     Where a special loan is borrowed for the purpose of purchasing, building or producing assets that meet the
capitalization conditions, it shall be determined by deducting the interest income obtained by depositing unused
loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the
investment income obtained by temporary investment.
     If the general loan is occupied for the purpose of purchasing, building or producing assets that meet the
capitalization conditions, the interest amount of the general loan that should be capitalized shall be calculated and
determined according to the weighted average of the accumulated asset expenditure exceeding the special loan
portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and
determined according to the weighted average interest rate of general borrowings.



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18.Intangible assets

      (1) Pricing method, useful life and impairment test

      The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as
intangible assets, which have no physical form, and the estimated future economic benefits related to the assets
are likely to flow into the enterprise and the cost of the assets can be reliably measured.
      The intangible assets of the Company are recorded according to the amount actually paid or the determined
value.
      (1) If the purchase price of intangible assets exceeds the normal credit conditions, which is of financing
nature in essence, the cost of intangible assets is determined based on the present value of the purchase price. The
difference between the actual paid price and the present value of the purchase price shall be included in the current
profits and losses within the credit period, except that it should be capitalized according to the regulations.
      (2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the
investment contract or agreement, unless the value agreed in the contract or agreement is unfair.
      (3) The expenditure of internal research and development projects of the Company is divided into research
stage expenditure and development stage expenditure. Research refers to an original and planned investigation to
acquire and understand new scientific or technical knowledge. Development refers to the application of research
results or other knowledge to a plan or design to produce new or substantially improved materials, devices and
products before commercial production or use.
      Expenditures during the research phase of internal research and development projects are included in the
current profits and losses when they occur. Expenditures in the development stage of internal research and
development projects that meet the following conditions are recognized as intangible assets: it is technically
feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the
intangible assets and use or sell them; The ways in which intangible assets generate economic benefits, including
those that can prove that there is a market for products produced by using the intangible assets or that the
intangible assets themselves exist in the market, and that the intangible assets will be used internally, should prove
their usefulness; Have sufficient technical, financial and other resources to complete the development of the
intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the
development stage of the intangible assets can be measured reliably.
      Intangible assets with limited service life of the Company shall be amortized on average within the service
life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.
The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its
cost. For intangible assets for which impairment provision has been made, the accumulated amount of impairment
provision for intangible assets has to be deducted.
      The amortization period of intangible assets with limited service life is as follows:
            Type                                                        Amortization period
       Land use right                                                       Remaining useful life
       Software                                                             3-5 years
       Toll road franchises                                                 Operating period for residual charges

19. Long-term amortizable expenses

     Long-term deferred expenses are recorded according to the actual amount incurred, and are amortized
equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense
item cannot benefit the future accounting period, the amortized value of the item that has not been amortized will


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be transferred to the current profits and losses.

20. Employee Benefits

Employee compensation refers to various forms of remuneration or compensation given by the Company for
obtaining services provided by employees or dissolving labor relations. Employee compensation includes
short-term salary, post-employment benefits, dismissal benefits and other long-term employee benefits. Benefits
provided by the Company to spouses, children, dependents, survivors of deceased employees and other
beneficiaries of employees are also employee compensation.
(1)Accounting methods of short-term benefits
During the accounting period when employees provide services, the Company recognizes the actual short-term
salary as a liability, which is included in the current profits and losses, except that other accounting standards
require or allow it to be included in the cost of assets.
(2) Accounting methods for post-employment benefits
     The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit
plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on
post-employment benefits, or the rules or measures formulated by the Company to provide post-employment
benefits to employees, among which the set deposit plan refers to the post-employment welfare plan in which the
Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;
Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.
 (3) Accounting Treatment Method of Demission Welfare
     If the Company provides dismissal benefits to employees, the employee compensation liabilities arising from
the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when
the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations
plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
(4)Other long-term employee benefits
     If other long-term employee benefits provided by the Company to employees meet the conditions of the set
deposit plan, they shall be handled according to the accounting policies of the set deposit plan mentioned above;
Otherwise, the net liabilities or net assets of other long-term employee benefits shall be recognized and measured
in accordance with the accounting policies of defined benefit plans mentioned above.

21.Estimated liabilities

      (1) Recognition criteria of estimated liabilities
      If the obligations related to contingencies stipulated by the Company meet the following conditions at the
same time, they are recognized as estimated liabilities:
      ① The obligations are the current obligations undertaken by the enterprise;
      ② Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
      ③ The amount of the obligations can be measured reliably.
        (2) Measurement method of estimated liabilities
      Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations. There is a continuous range of required expenditure, and the possibility of occurrence
of various results in this range is the same, and the best estimate is determined according to the intermediate value
in this range. In other cases, the best estimates are treated as follows:

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     ① Contingencies involving a single item shall be determined according to the most probable amount.
     ② Contingencies involving multiple items shall be calculated and determined according to various possible
results and relevant probabilities.
     When determining the best estimate, the risk, uncertainty and time value of money related to contingencies
shall be considered comprehensively. If the time value of money has great influence, the best estimate is
determined by discounting the related future cash outflow.
     If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be
compensated by a third party, the compensation amount can be recognized as an asset only when it is basically
confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the
estimated liabilities.
     The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate, the book value shall be
adjusted according to the current best estimate.

22. Revenues

Accounting policies adopted for income recognition and measurement
      (1) Revenue recognition principle
      Since the starting date of the contract, the company shall evaluate the contract, identifies each individual
performance obligation contained in, and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.
      The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met, otherwise, it is defined as fulfilled at a certain point in time: ① The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
② The customer can control the goods under manufacturing or services during the company's performance; ③
The goods or services produced during the company's performance have irreplaceable uses, and the company has
the right to accumulate for the completed performances during the entire contract period.
      For obligations performed within a certain period of time, the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined, and
the cost incurred is expected to be compensated, the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time, revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product, the company shall consider the
following points: ① The company has the current right to receive payment for the product, that is, the customer
has the current payment obligation for the product; ② The company has transferred the legal ownership of the
product to the customer, that is, the customer has the legal ownership of the product; ③ The company has
transferred the physical product to the customer, that is, the customer has physically taken possession of the
product; ④ The company has transferred the main risks and rewards on the ownership of the product to the
customer, that is, the customer has obtained the main risks and rewards on the ownership of the product; ⑤ The
customer has accepted the product; ⑥ Other signs that the customer has obtained control of the product.
      (2) Principle of revenue measurement
      ① The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers, while does not include payments received
on behalf of third parties and payments expected to be returned to customers.

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     ② If there is variable consideration in the contract, the company shall determine its best estimate according
to the expected value or the most likely amount, but the transaction price including the variable consideration shall
not exceed the accumulated amount that, if relevant uncertainty is eliminated, will most likely have no significant
reversal.
     ③ If there is any significant financing component in the contract, the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or services.
The difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract, if the company expects that the customer will
obtain control of the goods or services and pays the price within one year, the significant financing component in
contract shall not be considered.
     ④ If the contract contains two or more performance obligations, the company shall, on date of the contract,
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.
     The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
      (3) Specific methods of revenue recognition
      (1) Toll service fee income
      The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
      (2) Income from providing labor services
      For services started and completed in the same fiscal year, income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years, the Company shall,
on the balance sheet date, recognize the related labor income by the percentage of completion method, provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;
③ the degree of completion of labor services can be reliably determined.
      For services started and completed in the same fiscal year, income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years, the Company shall,
on the balance sheet date, recognize the related labor income by the percentage of completion method, provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;
      If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably, the
following situations shall be dealt with respectively:
      ① If the labor cost already incurred is expected to be compensated, the income from the service shall be
recognized according to the amount of the labor cost already incurred, and the labor cost shall be carried over at
the same amount.
      ② If the incurred labor cost is not expected to be compensated, the incurred labor cost shall be included in
the profits and losses of the current period, and the income from the provision of labor service shall not be
recognized.
      When the contracts or agreements signed between the Company and other enterprises include selling goods
and providing services, if the part for selling goods and the part for providing services can be distinguished and
measured separately, the part for selling goods will be treated as goods sales and the part for providing services

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will be treated as service provision. Sales of goods and services can not be distinguished, or although they can be
distinguished, they can not be measured separately. All parts for the selling goods and providing services will be
treated as sales of goods.
The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition

23. Government Grants
     Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received.
     Government subsidies for monetary assets shall be measured according to the amount received or receivable.
Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained
reliably, it shall be measured according to the nominal amount of 1 yuan.
     Government subsidies related to assets refer to government subsidies obtained by the Company for
purchasing and building or forming long-term assets in other ways; Otherwise, as a government subsidy related to
income.
     Where the government documents do not specify the object of the subsidy, and the subsidy can form
long-term assets, the part of the government subsidy corresponding to the value of the assets shall be regarded as
the government subsidy related to the assets, and the rest shall be regarded as the government subsidy related to
the income; Where it is difficult to be distinguished, government subsidies as a whole are treated as
income-related government subsidies.
     Government subsidies related to assets offset the book value of related assets, or are recognized as deferred
revenue and included in profits and losses by stages according to a reasonable and systematic method within the
service life of related assets. Government subsidies related to income, which are used to compensate related costs
or losses that have occurred, shall be included in current profits and losses or offset related costs; If they are used
to compensate related costs or losses in later periods, they will be included in the deferred revenue, and they will
be included in the current profits and losses or offset related costs during the recognition period of related costs or
losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The
Company adopts a consistent approach to the same or similar government subsidy business.
     Government subsidies related to daily activities, according to the essence of economic business, are included
in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into
the non-operating receipt and disbursement.
     When the recognized government subsidy needs to be returned, if the book value of related assets is offset
during initial recognition, the book value of assets will be adjusted; If there is a relevant deferred revenue balance,
the book balance of the relevant deferred revenue will be offset, and the excess will be included in the current
profits and losses; In other cases, it is directly included in the current profits and losses.

24.Deferred income tax assets and deferred income tax liabilities

      The Company adopts the balance sheet liability method for income tax accounting treatment.
      (1) Deferred tax assets
      ① If there is a deductible temporary difference between the book value of an asset or liability and its tax
basis, the deferred income tax assets generated by the deductible temporary difference shall be calculated and
confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the
liability.
      ② On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be

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obtained in the future period to offset the deductible temporary difference, the unrecognized deferred income tax
assets in the previous period shall be recognized.
     ③ On the balance sheet date, the book value of deferred income tax assets shall be reviewed. If it is unlikely
that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax
assets, the book value of deferred income tax assets will be written down. When sufficient taxable income is likely
to be obtained, the written-down amount will be reversed.
     (2) Deferred income tax liabilities
     If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis,
the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to
the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.

25.Lease

     (1) Identification of lease
     On the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether the
customers in the contract have the right to obtain almost all economic benefits arising from the use of the
identified assets during the use period, and has the right to lead the use of the identified assets during the use
period. If one party to the contract transfers the right to control the use of one or multiple identified assets within a
certain period of time in exchange for consideration, the Company will consider the contract as lease or
lease-included.
      (2)The Company as the lessee
     On the start date of the lease term, the Company recognizes the right-to-use assets and lease liabilities for all
leases, except for short-term leases and low-value asset leases that are simplified.
The accounting policy of the right-to-use assets is shown in Note III. 26.
     Lease liabilities are initially measured according to the unpaid lease payment amount on the start date of the
lease term and the present value calculated according to the implied interest rate of the lease or the incremental
borrowing interest rate. The lease payment amount includes: fixed payment amount and substantial fixed payment
amount. If there is lease incentive, the related amount of lease incentive shall be deducted; variable lease
payments depending on index or ratio; the exercise price of the option, provided that the lessee reasonably
determines that the option will be exercised; payment for exercising the option to terminate the lease, provided
that the lease period reflects that the lessee will exercise the option to terminate the lease; and the amount
expected to be paid according to the residual guarantee value provided by the lessee. The interest expense of the
lease liability in each period of the lease term shall be calculated subsequently according to the fixed periodic
interest rate, and included in the current profit and loss. Variable lease payments that are not included in the
measurement of lease liabilities are included in the current profits and losses when actually incurred.
     Short-term lease
     Short-term lease refers to the lease with a lease term of no more than 12 months on the start date of the lease
term, except for the lease with purchase option.
     The Company includes the lease payment of short-term lease into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.
     Low-value asset lease
     Low-value asset lease refers to the lease in which the value of a single leased asset is less than RMB 100,000
when it is brand new.
     The Company includes the lease payment of low-value assets into the related asset cost or current profit and

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loss according to the straight-line method in each period of the lease term.
      For the lease of low-value assets, the Company chooses to adopt the simplified treatment method mentioned
above according to the specific conditions of each lease.
      (3) The Company serves as the lessor
      The Company, when as the lessor, recognizes the leases that have substantially transferred all risks and
rewards related to asset ownership as financial leases, and other leases except financial leases as operating leases.
      Accounting methods for operating leases
      For the rent in the operating lease, the Company recognizes the current profits and losses according to the
straight-line method in each period of the lease term. The initial direct expenses incurred in connection with the
operating lease shall be capitalized, allocated on the same basis as the rental income recognition during the lease
term, and included in the current profits and losses by stages. The variable lease payments obtained related to
operating leases that are not included in the lease receipts are included in the current profits and losses when they
actually occur.
      Accounting treatment method of leasing
      In financing lease, at the beginning of the lease term, Japanese companies take the net investment in leasing
as the recorded value of the financing lease receivable, and the net investment in leasing is the sum of the
unsecured residual value and the present value of the lease proceeds that have not yet been received on the start
date of the lease term discounted according to the implied interest rate of the lease. As the lessor, the Company
calculates and recognizes the interest income of each period in the lease term according to the fixed periodic
interest rate. The variable lease payments obtained by the Company as the lessor that are not included in the
measurement of net lease investment are recorded into the current profits and losses when they actually occur.
      The derecognition and impairment of financial lease receivables shall be treated according to the provisions
of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
and Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.

26.The right to use assets

     (1) Conditions for recognition of the right-to-use assets
     The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets
during the lease term.
     On the start date of the lease term, the right-to-use assets are initially measured at cost. The cost includes:
The initial measurement amount of lease liabilities; if there is lease incentive for the lease payment issued on or
before the start date of the lease term, the amount related to the lease incentive enjoyed shall be deducted; initial
direct expenses incurred by the Company as the lessee; the estimated costs that the Company as the lessee will
incur for dismantling and removing the leased assets, restoring the leased assets' site or restoring the leased assets
to the state agreed in the lease terms. The Company, as the lessee, recognizes and measures the demolition and
restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. It
makes subsequent adjustments to any remeasurement of lease liabilities.
     (2) Depreciation method of right-to-use assets
     The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can be
reasonably determined that the ownership of the leased asset is acquired at the expiration of the lease term, it shall
accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine
that the ownership of the leased asset can be acquired at the expiration of the lease term, it shall accrue
depreciation within the shorter of the lease term and the remaining service life of the leased asset.


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      (3) See "27. Impairment of Assets" in "Section V Important Accounting Policies and Accounting Estimates"
for the impairment test method and the provision method for impairment of right-to-use assets.

27. Impairment of assets

      The following signs indicate that the assets may be impaired:
      (1) The market price of assets fell sharply in the current period, which was significantly higher than the
expected decline due to the passage of time or normal use.
        (2) The economic, technical or legal environment in which the Company operates and the market in which
the assets are located have undergone major changes in the current period or in the near future, which will have
adverse effects on the Company.
        (3) The market interest rate or other market return on investment has increased in the current period, which
affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of
assets, resulting in a significant decrease in the recoverable amount of assets.
        (4) There is evidence that the assets are outdated or their entities have been damaged.
        (5) Assets have been or will be idle, terminated or planned to be disposed of in advance.
        (6) The evidence reported by the company shows that the economic performance of assets has been or will
be lower than expected, such as the net cash flow created by assets or the realized operating profit (or loss) is far
lower than the expected amount.
        (7) Other indications that assets may have been impaired.
      On the balance sheet date, the Company judges various assets that are applicable to the Accounting Standards
for Business Enterprises No.8-Impairment of Assets, such as long-term equity investment, fixed assets,
engineering materials, construction in progress, intangible assets (except those with uncertain service life), and
conducts impairment test when there are signs of impairment-estimating their recoverable amount. The
recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset
is lower than its book value, the book value of the asset shall be written down to the recoverable amount, and the
written-down amount shall be recognized as the asset impairment loss, which shall be included in the current
profits and losses, and the corresponding asset impairment reserve shall be accrued at the same time.
      If there are signs that an asset may be impaired, the Company usually estimates its recoverable amount on the
basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset, the recoverable
amount of the asset group is determined based on the asset group to which the asset belongs.
      Asset group is the smallest asset portfolio that can be recognized by the Company, and its cash inflow is
basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The
identification of asset group is based on whether the main cash inflow generated by asset group is independent of
other assets or cash inflow of asset group.
      The Company conducts impairment test every year for intangible assets with uncertain goodwill and service
life formed by business combination and not yet in serviceable condition, regardless of whether there is any sign
of impairment. The impairment test of goodwill is carried out in combination with its related asset group or
combination of asset groups.
      Once the asset impairment loss is confirmed, it will not be reversed in the following accounting period.

28. Fair value measurement

      Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly

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transaction that occurs on the measurement date.
      The Company measures related assets or liabilities at fair value, assuming that the orderly transaction of
selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no
major market, the Company assumes that the transaction will be conducted in the most favorable market of related
assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can
enter on the measurement day. The Company adopts the assumptions used by market participants to maximize
their economic benefits when pricing the assets or liabilities.
      When measuring non-financial assets at fair value, the ability of market participants to use the assets for the
best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best
purpose to generate economic benefits shall be considered.
      The Company adopts the valuation technology which is applicable in the current situation and supported by
sufficient available data and other information, and gives priority to the relevant observable input values, and only
uses the unobservable input values when the observable input values are unavailable or impractical.
      For assets and liabilities measured or disclosed at fair value in financial statements, it shall determine the fair
value level according to the lowest level input value which is of great significance to fair value measurement as a
whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained
on the measurement date in an active market; The second-level input value is directly or indirectly observable
input values of related assets or liabilities except the first-level input value; The third level input value is the
unobservable input value of related assets or liabilities.
      On each balance sheet date, the Company reassesses the assets and liabilities recognized in the financial
statements that are continuously measured at fair value to determine whether there is a conversion between the
fair value measurement levels.

  29.Change of main accounting policies and estimations

(1)Change of main accounting policies
√ Applicable □ Not applicable

                  Contents and causes of changes in accounting policies                   Approval procedures     Remarks

                                                                                          Adopted at the 16th
 On December 7, 2018, the Ministry of Finance issued the Accounting Standards for
                                                                                          Meeting of the Ninth
 Business Enterprises No.21-Lease (Revised in 2018). The Company has implemented
                                                                                          Board of Directors of
 the aforementioned New Leasing Standards from January 1, 2021, and changed
                                                                                          the Company on
 relevant accounting policies according to the New Leasing Standards.
                                                                                          March 25, 2021

 As the participating companies Guangdong Yuepu Microfinance Co., Ltd. and
 Guoyuan Securities Co., Ltd. implemented the new accounting standards to adjust
 their opening balance, the Company adopted the equity method to calculate and adjust
 the opening balance of the 2021 financial statements accordingly

 According to relevant laws and regulations, the Company implemented centralized and
 unified management of the funds of member units through the internal settlement
 center, and listed the funds in the "Other current liabilities". On December 30, 2021,
 the Ministry of Finance issued Interpretation No.15 of Accounting Standards for
 Business Enterprises, which clearly listed the above-mentioned collected funds in the
 item of "Other payables", and the Company adjusted and presented them according to



171
2021 Annual Report


 the requirements of Interpretation No.15.

    On December 7, 2018, the Ministry of Finance issued the Accounting Standards for Business Enterprises
No.21-Lease (Revised in 2018). The Company has implemented the aforementioned New Leasing Standards from
January 1, 2021, and changed relevant accounting policies according to the New Leasing Standards.
     According to the provisions of the new lease standard, the Company reassess whether the contract that exists
before the first implementation date is a lease or includes a lease. For the lease contract in which it’s the lessee,
the Company chooses to adjust only the cumulative impact of the lease contract that has not been completed on
January 1, 2021. The amount of cumulative impact of the first implementation adjusts the amount of retained
earnings and other related items in the financial statements at the beginning of the first implementation period (ie
January 1, 2021), and no adjustment will be made to the comparable period information. For the operating lease
on the first implementation date, the lessee measures the lease liability based on the present value of the remaining
lease payments discounted at the incremental borrowing rate on the first implementation date.
      The Company chooses an amount equal to the lease liability according to each lease, and measures the
right-of-use assets according to necessary adjustments based on the prepaid rent. And in accordance with the “No.
8 Accounting Standards for Business Enterprises-Asset Impairment", the impairment test of the right-of-use assets
is carried out and the corresponding accounting treatments are carried out.
    The impact of the implementation of the above accounting policy changes on the financial statements on
January 1, 2021 is as follows:
       a. Impact on the consolidated financial statements
                      Report items                 December 31,2020(Before January 1,2021(After    Impacted mumber
                                                           change)               change)
      Advance payment                                          3,607,538.01           2,831,124.98            -776,413.03
      The right to use asset                                                         23,154,055.78          23,154,055.78
      Long-term amortized expenses                             3,462,122.00           2,454,375.00          -1,007,747.00
      Lease liabilities                                                              12,245,214.89          12,245,214.89
      Non-current liabilities due within one yea             266,328,017.47         275,452,698.33           9,124,680.86
       b.Impact on the parent company financial statements
                      Report items                 December 31,2020(Before January 1,2021(After    Impacted number
                                                           change)               change)
      Advance payment                                          2,181,215.03           1,404,802.00            -776,413.03
      The right to use asset                                                         21,927,040.99          21,927,040.99
      Long-term amortized expenses                                                   12,133,352.33          12,133,352.33
      Lease liabilities                                      190,331,701.48         199,348,977.11           9,017,275.63
      Non-current liabilities due within one yea
    (2)Other accounting policy changes
     1) As the participating companies Guangdong Yuepu Microfinance Co., Ltd. and Guoyuan Securities Co.,
Ltd. implemented the new accounting standards to adjust their opening balance, the Company adopted the equity
method to calculate and adjust the opening balance of the 2021 financial statements accordingly
     a. Impact on the consolidated financial statements
                      Report items                 December 31,2020(Before January 1,2021(After    Impacted number
                                                           change)               change)
      Long-term equity investment                           2,382,381,165.60      2,382,927,355.64            546,190.04


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2021 Annual Report


      Undistributed profits                                  3,725,679,319.35          3,726,225,509.39                       546,190.04
      b.Impact on the parent company financial statements
                       Report items               December 31,2020(Before January 1,2021(After                Impacted number
                                                            change)                   change)
      Long-term equity investment                            5,529,362,536.53          5,529,908,726.57                       546,190.04
      Undistributed profits                                  3,667,543,163.36          3,668,089,353.40                       546,190.04
     2) According to relevant laws and regulations, the Company implemented centralized and unified
management of the funds of member units through the internal settlement center, and listed the funds in the "Other
current liabilities". On December 30, 2021, the Ministry of Finance issued the Interpretation No.15 of Accounting
Standards for Business Enterprises, which clearly listed the above-mentioned collected funds in the item of "Other
payables", and the Company adjusted and presented them according to the requirements of Interpretation No.15.
Due to fact that Guangdong Taiheng Expressway Development Co., Ltd. failed to fulfill the obligation of pipeline
lease payment as agreed in the contract even after repeated reminders, Guangzhou-Huizhou Company filed a
lawsuit with Huangpu District People's Court in Guangzhou in October 2021, and the case is still under trial .
     a. Impact on the consolidated financial statements
     None
      b.Impact on the parent company financial statements
                       Report items               December 31,2020(Before January 1,2021(After                Impacted number
                                                             change)                  change)
      Other current liabilities                                539,618,124.00                   72,415.40              -539,545,708.60
      Other payable                                           1,431,814,861.38         1,971,360,569.98                 539,545,708.60
        (2)Significant estimates changes
√ Applicable □ Not applicable

                                                                                                     Time point at which
 Contents and causes of changes in accounting estimates                  Approval procedure
                                                                                                     the application begins

 The Company held the nineteenth (temporary) meeting of the
 ninth board of directors on June 28, 2021. At the meeting, the          The 19th meeting of
 "Proposal on Changes in Accounting Estimates" was passed and            the 9th Board of
                                                                                                     January 1,2021
 the company agreed to the depreciation period of the                    Directors of the
 Sanbao-Shuikou section of the expressway has been changed, and          Company
 the depreciation period has been extended to June 14, 2044.

     The Company held the nineteenth (temporary) meeting of the ninth board of directors on June 28, 2021. At
the meeting, the "Proposal on Changes in Accounting Estimates" was passed and the company agreed to the
depreciation period of the Sanbao-Shuikou section of the expressway has been changed, and the depreciation
period has been extended to June 14, 2044 For this matter, the Company adopted the future application method.
The impact on the financial statement items is as follows:
Contents and causes of changes in Approval                Time point at which Affected report items         Impact amount
accounting estimates                  procedure           the application begins

Guangdong Provincial Department                                                       Fixed assets                 137,099,491.31
of Transportation has approved the Resolution of the                                Intangible assets                  2,708,527.52
                                                               June 1,2021
extension of the charging period for board of directors                            Deferred income tax                12,993,568.40
the Sanbao-Shuikou section of the                                                           assets


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2021 Annual Report


Shenyang-Haikou               National                                Deferred income tax            -38,140.18
Expressway to June 14, 2044.                                               Liabilities
                                                                       Main business cost       -139,808,018.83
                                                                      Income tax expenses        -13,031,708.58
                                                                           Net profit            152,839,727.41


(3)Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases from year 2021

√Applicable □ Not applicable
Whether need to adjust the balance sheet account at the beginning of the year
√ Yes □No

Consolidated balance sheet

                                                                                                              In RMB

                                                                                            Amount involved in the
               Items                     December 31,2020         January 1,2021
                                                                                                 adjustment

  Current asset:

           Monetary fund                       2,847,398,003.89        2,847,398,003.89

       Settlement provision

  Outgoing call loan

  Transactional financial
  assets

  Derivative financial assets

      Notes receivable

        Account receivable                      168,907,517.56          168,907,517.56

      Financing of receivables

           Prepayments                             3,607,538.01            2,831,124.98                   -776,413.03

       Insurance receivable

      Reinsurance receivable

  Provisions of Reinsurance
       contracts receivable

  Other account receivable                       60,925,367.64            60,925,367.64

  Including:Interest
  receivable

        Dividend receivable                        2,705,472.90            2,705,472.90
  Repurchasing of financial
  assets
        Inventories                                  53,761.06                53,761.06


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2021 Annual Report


                                                                                      Amount involved in the
               Items                 December 31,2020         January 1,2021
                                                                                           adjustment

         Contract assets                       5,452,813.90            5,452,813.90

         Assets held for sales
 Non-current        asset      due
                                                 51,745.32                51,745.32
 within 1 year
         Other current asset                     27,051.69                27,051.69

       Total of current assets             3,086,423,799.07        3,085,647,386.04

        Non-current assets

      Loans and payment on
      other’s behalf disbursed

 Creditor's right investment

 Other creditor's right
 investment

      Long-term receivable

 Long term share equity
                                           2,382,381,165.60        2,382,927,355.64                 546,190.04
 investment

 Other equity instruments
                                           1,737,015,528.29        1,737,015,528.29
 investment

 Other non-current financial
 assets

      Property investment                      3,110,381.89            3,110,381.89

         Fixed assets                     11,540,075,929.69       11,540,075,929.69

 Construction in progress                   340,611,095.47          340,611,095.47

 Production physical assets

         Oil & gas assets

         Use right assets                                             23,154,055.78               23,154,055.78

         Intangible assets                  302,381,356.52          302,381,356.52

      Development expenses

         Goodwill
 Long-germ expenses to be
                                               3,462,122.00            2,454,375.00               -1,007,747.00
 amortized
 Deferred income tax asset                  330,755,418.39          330,755,418.39

      Other non-current asset                22,361,861.19            22,361,861.19

 Total of non-current assets              16,662,154,859.04       16,684,847,357.86               22,692,498.82

 Total of assets                          19,748,578,658.11       19,770,494,743.90               21,916,085.79

 Current liabilities


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2021 Annual Report


                                                                                Amount involved in the
               Items           December 31,2020         January 1,2021
                                                                                     adjustment

      Short-term loans                200,192,500.00          200,192,500.00

  Loan from Central Bank

      Borrowing funds

 Transactional financial
 liabilities

 Derivative financial
 liabilities

          Notes payable

        Account payable               369,773,342.71          369,773,342.71

        Advance receipts                11,309,007.41           11,309,007.41

        Contract liabilities              309,734.51              309,734.51

  Selling of repurchased
 financial assets

 Deposit taking and
 interbank deposit

  Entrusted trading of
 securities

 Entrusted selling of
 securities

 Employees’ wage payable              16,726,198.13            16,726,198.13

  Tax payable                         217,748,392.78          217,748,392.78

      Other account payable          1,512,619,359.78        1,512,619,359.78

 Including:Interest payable

        Dividend payable               22,262,804.39            22,262,804.39

 Fees and commissions
 payable

 Reinsurance fee payable

 Liabilities held for sales

 Non-current liability due
                                      266,328,017.47          275,452,698.33                 9,124,680.86
 within 1 year

 Other current liability                  648,581.64              648,581.64

 Total of current liability          2,595,655,134.43        2,604,779,815.29                9,124,680.86

 Non-current liabilities:

 Reserve fund for insurance



176
2021 Annual Report


                                                                                  Amount involved in the
               Items             December 31,2020         January 1,2021
                                                                                       adjustment

 contracts

      Long-term loan                   4,977,438,800.00        4,977,438,800.00

  Bond payable                         1,426,488,336.65        1,426,488,336.65

 Including:preferred stock

      Sustainable debt

      Lease liability                                             12,245,214.89               12,245,214.89

       Long-term payable                 40,406,172.37            40,406,172.37

 Long-term remuneration
 payable to staff

  Expected liabilities

        Deferred income                  89,170,569.64            89,170,569.64

 Deferred income tax
                                        387,103,060.74          387,103,060.74
 liability

 Other non-current
 liabilities

 Total non-current liabilities         6,920,606,939.40        6,932,852,154.29               12,245,214.89

 Total of liability                    9,516,262,073.83        9,537,631,969.58               21,369,895.75

 Owners’ equity

      Share capital                    2,090,806,126.00        2,090,806,126.00

      Other equity instruments

 Including:preferred stock

      Sustainable debt

  Capital reserves                      645,969,210.48          645,969,210.48

      Less:Shares in stock

 Other comprehensive
                                        302,895,877.65          302,895,877.65
 income

        Special reserve

      Surplus reserves                 1,167,785,965.63        1,167,785,965.63

 Common risk provision

 Retained profit                       3,725,679,319.35        3,726,225,509.39                 546,190.04

 Total of owner’s equity
 belong to the parent                  7,933,136,499.11        7,933,682,689.15                 546,190.04
 company

 Minority shareholders’               2,299,180,085.17        2,299,180,085.17


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2021 Annual Report


                                                                                     Amount involved in the
              Items                 December 31,2020         January 1,2021
                                                                                           adjustment

 equity

 Total of owners’ equity                10,232,316,584.28       10,232,862,774.32                  546,190.04

 Total of liabilities and
                                         19,748,578,658.11       19,770,494,743.90               21,916,085.79
 owners’ equity

Adjustment statement

Parent Company Balance Sheet

                                                                                                         In RMB

                                                                                     Amount involved in the
              Items                 December 31,2020         January 1,2021
                                                                                          adjustment

 Current asset:

 Monetary fund                            1,781,764,519.09        1,781,764,519.09

 Transactional financial
 assets

 Derivative financial assets

        Notes receivable

        Account receivable                  27,004,827.41            27,004,827.41

 Financing of receivables

        Prepayments                           2,181,215.03            1,404,802.00                 -776,413.03

      Other account receivable               54,148,114.53           54,148,114.53

 Including:Interest
 receivable

        Dividend receivable                   2,705,472.90            2,705,472.90

        Inventories

        Contract assets

        Assets held for sales
 Non-current       asset      due
                                           256,279,340.60          256,279,340.60
 within 1 year
        Other current asset                     27,051.69                27,051.69

 Total of current assets                  2,121,405,068.35        2,120,628,655.32                 -776,413.03

 Non-current assets:

 Creditor's right investment               287,903,684.98          287,903,684.98

 Other Creditor's right
 investment



178
2021 Annual Report


                                                                                 Amount involved in the
               Items            December 31,2020         January 1,2021
                                                                                      adjustment

      Long-term receivable

 Long term share equity
                                      5,529,362,536.53        5,529,908,726.57                 546,190.04
 investment

 Other equity instruments
                                      1,737,015,528.29        1,737,015,528.29
 investment

 Other non-current financial
 assets

      Property investment                 2,858,243.64            2,858,243.64

      Fixed assets                    6,245,462,940.39        6,245,462,940.39

 Construction in progress               43,086,545.58            43,086,545.58

 Production physical assets

        Oil & gas assets

        Use right assets                                         21,927,040.99               21,927,040.99

        Intangible assets              150,582,241.22          150,582,241.22

      Development expenses

        Goodwill
 Long-germ expenses to be
 amortized
 Deferred income tax asset             322,365,911.10          322,365,911.10

      Other non-current asset             7,089,990.48            7,089,990.48

 Total of non-current assets         14,325,727,622.21       14,348,200,853.24               22,473,231.03

 Total of assets                     16,447,132,690.56       16,468,829,508.56               21,696,818.00

 Current liabilities

        Short-term loans               200,192,500.00          200,192,500.00

 Transactional financial
 liabilities

 Derivative financial
 liabilities

        Notes payable

        Account payable                105,919,984.52          105,919,984.52

      Advance receipts

        Contract Liabilities

  Employees’ wage payable                6,472,802.81            6,472,802.81

  Tax payable                             9,165,801.86            9,165,801.86



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2021 Annual Report


                                                                                  Amount involved in the
               Items             December 31,2020         January 1,2021
                                                                                       adjustment

  Other account payable                1,431,814,861.38        1,971,360,569.98             539,545,708.60

 Including:Interest payable

           Dividend payable              22,262,804.39            22,262,804.39

 Liabilities held for sales

 Non-current liability due
                                        190,331,701.48          199,348,977.11                 9,017,275.63
 within 1 year

 Other current liability                539,618,124.00                72,415.40             -539,545,708.60

 Total of current liability            2,483,515,776.05        2,492,533,051.68                9,017,275.63

 Non-current liabilities:

      Long-term loan                   4,389,653,800.00        4,389,653,800.00

  Bond payable                         1,426,488,336.65        1,426,488,336.65

 Including:preferred stock

      Sustainable debt

           Lease liability                                        12,133,352.33               12,133,352.33

        Long-term payable                40,406,172.37            40,406,172.37

 Long-term remuneration
 payable to staff

  Expected liabilities

        Deferred income                  13,403,327.12            13,403,327.12

 Deferred income tax
                                        105,636,866.50          105,636,866.50
 liability

 Other non-current
 liabilities

 Total non-current liabilities         5,975,588,502.64        5,987,721,854.97               12,133,352.33

 Total of liability                    8,459,104,278.69        8,480,254,906.65               21,150,627.96

 Owners’ equity

      Share capital                    2,090,806,126.00        2,090,806,126.00

      Other equity instruments

 Including:preferred stock

      Sustainable debt

      Capital reserves                  938,969,546.79          938,969,546.79

      Less:Shares in stock

 Other comprehensive
                                        302,895,877.65          302,895,877.65
 income

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2021 Annual Report


                                                                                                    Amount involved in the
              Items                 December 31,2020                   January 1,2021
                                                                                                          adjustment

        Special reserve

      Surplus reserves                     987,813,698.07                      987,813,698.07

        Retained profit                   3,667,543,163.36                  3,668,089,353.40                        546,190.04

 Total of owners’ equity                 7,988,028,411.87                  7,988,574,601.91                        546,190.04

 Total of liabilities and
                                         16,447,132,690.56                 16,468,829,508.56                      21,696,818.00
 owners’ equity

Note


(4)Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2021

□ Applicable √ Not applicable


VI. Taxation

1. Major category of taxes and tax rates

                 Tax category                              Tax basis                                   Tax rate

 VAT                                      Taxable income                                3%,5%,6%,9%,13%

 City maintenance and construction tax    The actual payment of turnover tax            5%,7%


 Enterprise income tax                    Taxable income                                25%

 Education Fee Surcharge                  The actual payment of turnover tax            3%

 Local education surcharge                The actual payment of turnover tax            2%


2.Preferential tax

    According to the Notice of the Ministry of Finance and the State Administration of Taxation on Fully
Opening the Pilot of Changing Business Tax to VAT (CS [2016] No.36), the qualified contract energy
management services of the subsidiary Guangdong High-speed Technology Investment Co., Ltd. are exempt from
VAT.
VII. Notes to the major items of consolidated financial statement

1.Monetary Capital

                                                                                                                          In RMB

                      Items                         Amount in year-end                          Balance Year-beginning

 Cash                                                                    38,214.02                                     54,482.68

 Bank deposit                                                     2,955,850,944.81                            2,846,821,352.23


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2021 Annual Report


      Including:Money deposited with a
                                                          1,521,003,542.69                    1,031,105,792.71
 finance Company

 Other                                                         515,231.72                           522,168.98

 Total                                                    2,956,404,390.55                    2,847,398,003.89

Other note

As of December 31,2021,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.




182
 2021 Annual Report
 2. Account receivable
         1.Classification account receivables.

                                                                                                                                                                                In RMB

                                                                  Amount in year-end                                                    Balance Year-beginning

                                           Book Balance                Bad debt provision                              Book Balance             Bad debt provision
              Category                                                                            Book value                                                              Book value
                                        Amount        Proporti         Amount          Proport                      Amount         Proportio     Amount       Propor
                                                      on(%)                            ion(%)                                         n(%)                    tion(%
                                                                                                                                                                  )

Accrual of bad debt provision by
                                      12,268,880.60       7.44%       3,143,664.00     25.62%      9,125,216.60
single

Including:

Accrual of bad debt provision by
                                     152,527,300.17   92.56%          2,599,116.90      1.70%    149,928,183.27   172,621,378.99   100.00%     3,713,861.43      2.15%   168,907,517.56
portfolio

Including:

Total                                164,796,180.77                   5,742,780.90               159,053,399.87   172,621,378.99               3,713,861.43              168,907,517.56




 183
2021 Annual Report


①Accrual of bad debt provision by single:
                                                                                                                    In RMB

                                                           Balance in year-end
            Name                           Bad debt       Withdrawal
                           Book balance                                                     Reason
                                           provision      proportion

                                                                        Guangdong Guangzhou-Huizhou Expressway
                                                                        Co., Ltd., a subsidiary company, signed a
                                                                        pipeline lease agreement with Guangdong
                                                                        Taiheng Expressway Development Co., Ltd. to
                                                                        provide communication pipelines for
 Guangdong Taiheng                                                      Guangdong Taiheng Expressway Development
 Expressway                 5,221,056.00   3,143,664.00       60.21%    Co., Ltd. Because Guangdong Taiheng
 Development Co., Ltd.                                                  Expressway Development Co., Ltd. failed to
                                                                        fulfill its payment obligations as agreed in the
                                                                        contract even after repeated reminders,
                                                                        Guangzhou-Huizhou Company filed a lawsuit
                                                                        with Huangpu District People's Court in
                                                                        Guangzhou in October 2021,

 Shandong Boan
 Intelligent Technology     7,047,824.60                                Recovery occurred on 4 January 2022
 Co., Ltd.

 Total                     12,268,880.60   3,143,664.00       --                               --



Disclosure by aging
                                                                                                                    In RMB

                           Aging                                                 Closing balance

 Within 1 year(Including 1 year)                                                                       139,418,873.03

 1-2 years                                                                                                12,960,752.00

 2-3 years                                                                                                 4,183,077.45

 Over 3 years                                                                                              8,233,478.29

      3-4 years                                                                                            7,677,959.60

      4-5 years                                                                                                93,192.00

      Over 5 years                                                                                           462,326.69

 Total                                                                                                   164,796,180.77



The withdrawal amount of the bad debt provision:
                                                                                                                    In RMB

                  Name                                        Balance in year-end



184
2021 Annual Report


                                    Receivable accounts            Bad debt provision               Withdrawal proportion

 Quality guarantee                               806,228.14

 Total                                           806,228.14                                                    --



Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable

(2) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision:
     The provision for bad debts in the current period is RMB 4,519,947.60; and the amount of bad debt reserve
recovered or reversed in the current period is RMB 2,491,028.13.
Of which the significant amount of the reversed or collected part during the reporting period :
                                                                                                                           In RMB

                 Name                          Reversed or collected amount                            Mode

 Shandong Boan Intelligent Technology
                                                                    2,222,989.88     Recall the accounts receivable in full
 Co., Ltd.

 Total                                                              2,222,989.88                         --


 (3)The current accounts receivable write-offs situation

None


(4)The ending balance of other receivables owed by the imputation of the top five parties

                                                                                                                           In RMB

                     Name                         Amount               Aging               Proportion(%)            Bad debt provision

 Guangdong Union Electronic Services Co.,
                                                   78,368,502.10     Within 1 year                    47.55%
 Ltd.

 Gansu Unisplendour Intelligent
 Transportation and Control Technology             18,914,067.17     Within 1 year                    11.48%
 Co., Ltd

 Guangdong Lulu Traffic Development Co.,
                                                   12,958,333.31     Within 1 year                     7.86%
 Ltd.

                                                    1,046,000.00     Within 1 year
 Guangzhou Lingte Electronic Co.,Ltd.                                                                  6.04%
                                                    8,901,000.00         1-2 years                                         890,100.00

 Guangdong Jingzhu Expressway
                                                    7,783,650.00     Within 1 year                     4.72%
 Guangzhu North section Co., Ltd.



185
2021 Annual Report


 Total                                               127,971,552.58                                            77.65%


 (5)Account receivable which terminate the recognition owning to the transfer of the financial assets

None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None

 3. Prepayments

(1)Aging analysis
                                                                                                                                 In RMB

                                         Balance in year-end                                     Balance Year-beginning
          Aging
                                 Amount                   Proportion(%)                    Amount                  Proportion(%)

 Within 1 year                       5,087,647.09                       97.32%                 2,741,988.15                     96.85%

 1-2 years                             140,000.00                        2.68%                   89,136.83                       3.15%

 Total                               5,227,647.09                --                            2,831,124.98                --

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
None

       (2) Top 5 of the closing balance of the prepayment collected according to the prepayment target

                                                                                                                                 In RMB
                  Name                 Relations with the        Amount             Aging             Reasons for          Proportion %
                                           Company                                                 non-settlement
China Ping An Property Insurance Co. Non- Related party           3,803,912.18 Within 1               Unliquidated                  72.77
Ltd. Guangdong Branch                                                            year
China Pacific Property Insurance Co. Non- Related party               838,016.00 Within 1             Unliquidated                  16.03
Ltd. Guangdong Branch                                                            year
Zhaoqing Yuezhao highway Co., Ltd.       Related party                216,750.00 Within 1             Unliquidated                     4.15
                                                                                 year
Guangdong Excellence Land Real Non- Related party                     140,000.00 1-2 years            Unliquidated                     2.68
Estate Appraisal and Consulting Co.,
Ltd
Guangzhou     Tianhaixiang   Aviation Non- Related party              139,860.00 Within 1             Unliquidated                     2.68
Technology Co., Ltd                                                              year
                  Total                                           5,138,538.18

4.Other accounts receivable

                                                                                                                                 In RMB



                   Items                                 Balance in year-end                           Balance Year-beginning

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 Dividend receivable                                                  1,205,472.90                                   2,705,472.90

 Other receivable                                                    12,555,651.33                                  58,219,894.74

 Total                                                               13,761,124.23                                  60,925,367.64


(1)Interest receivable:None

(2)Dividend receivable

1)Dividend receivable
                                                                                                                           In RMB

                               Items                         Balance in year-end                 Balance Year-beginning

 Guangdong Radio and Television Networks investment
                                                                      1,205,472.90                                   1,205,472.90
 No.1 Limited partnership enterprise

 Ganzhou Gankang Expressway Co., Ltd.                                                                                1,500,000.00

 Total                                                                1,205,472.90                                   2,705,472.90


2)Significant dividend receivable aged over 1 year

                                                                                                                           In RMB

                                                                                                               Whether with
                                                  Balance in                         Reasons for
                       Items                                          Aging                                 impairment and the
                                                  year-end                           non-recovery
                                                                                                              judgment basis

                                                                                The partnership
                                                                                agreement expires and
 Guangdong Radio and Television Networks                                                                   No, it can be
                                                                     3-4        can be recovered after
 investment No.1 Limited partnership                  1,205,472.90                                         recovered in the
                                                                     years      the extension
 enterprise                                                                                                future
                                                                                procedures are
                                                                                completed

 Total                                                1,205,472.90         --               --                        --


3)The bad debt provision

□ Applicable √ Not applicable




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     2021 Annual Report
     (3) Other accounts receivable

     1) Other accounts receivable classified

                                                                                                                               In RMB


                                                          Balance in year-end                                                            Balance Year-beginning

                                  Book balance               Bad debt provision                                 Book balance                  Bad debt provision

            Category                                                       Expecte                                                                          Expected
                                                 Propor
                                                                           d credit         Book value                         Proport                      credit         Book value
                                Amount            tion      Amount                                            Amount                         Amount
                                                                           loss                                                ion (%)                      loss
                                                  (%)
                                                                           rate(%)                                                                          rate(%)

Other receivables for
individual bad debt             51,535,736.09     80.37    51,535,736.09              100                0    51,535,736.09       46.9      51,535,736.09            100                0
provision

Other receivables for bad
debt provision according to
                                12,588,109.31     19.63        32,457.98          0.26      12,555,651.33     58,345,934.72       53.1         126,039.98          0.22    58,219,894.74
the combination of credit
risk characteristics

             Total              64,123,845.40      /       51,568,194.07          /         12,555,651.33    109,881,670.81          /      51,661,776.07              /   58,219,894.74




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Disclosure by aging
                                                                                                                  In RMB

                                Aging                                           Closing balance

 Within 1 year(Including 1 year)                                                                          6,589,166.07

 1-2 years                                                                                                  3,965,967.71

 2-3 years                                                                                                    29,980.70

 Over 3 years                                                                                              53,538,730.92

      3-4 years                                                                                              731,394.97

      4-5 years                                                                                              405,650.00

      Over 5 years                                                                                         52,401,685.95

 Total                                                                                                     64,123,845.40



Accrual of bad debt provision by single:
                                                                                                                  In RMB

                                                                      Closing book balance

                                                                               Expected
                  Bad Debt Reserves                            Bad debt
                                              Book balance                     credit loss               Reason
                                                               provision
                                                                               rate(%)

                                                                                               Bad debts have been fully
 Kunlun Securities Co., Ltd(Note 1)          47,528,056.18   47,528,056.18             100
                                                                                               withdrawn in bankruptcy

 Beijing Gelin Enze Organic Fertilizer Co.,                                                    The company is poorly
                                                4,007,679.91    4,007,679.91             100
 Ltd(Note 2)                                                                                 managed

                        Total                  51,535,736.09   51,535,736.09             100

     Note 1 : 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
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
deb.
     Note 2: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 Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly,
the controlling subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full provision
for Bad debt 12,220,079.91 yuan provision. The company in 2014 recovered arrears of 8,000,000.00


189
2021 Annual Report


yuan, rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tTh
e settlement agreement of 212,400.00 yuan.


Disclosure by aging
                                                                                                                                          In RMB

                                        Balance in year-end                                           Balance Year-beginning

                               Book balance                                                       Book balance
      Aging                                                          Bad debt                                                        Bad debt
                                               Proportion                                                         Proportion
                       Amount                                        provision             Amount                                    provision
                                                 (%)                                                             (%)

 Within 1
 year
                           2,959,338.22                 98.92                               46,729,242.63                 97.97
 (Including
 1 year)

 1-2 years                                                                                        935,820.00               1.96        93,582.00

 2-3 years

 3-4 years

 4-5 years

 Over         5
                              32,457.98                  1.08          32,457.98                   32,457.98               0.07        32,457.98
 years

      Total                2,991,796.20             /                  32,457.98            47,697,520.61             /               126,039.98



In the portfolio, other receivables with bad debt provision by other methods:
                                                                                                                                          In RMB

                                           Balance in year-end                                         Balance Year-beginning
         Name                    Book           Bad debt          Expected credit             Book              Bad debt          Expected credit
                              balance          provision           loss rate(%)            balance             provision           loss rate(%)

Deposit money and
quality guarantee            8,815,245.54                                                  9,694,869.85
fund combination

Other                         781,067.57                                                    953,544.26

          Total              9,596,313.11                                                 10,648,414.11


2) Other accounts receivable classified by the nature of accounts
                                                                                                                                          In RMB

                    Nature                                      Closing book balance                           Opening book balance

 Balance of settlement funds for
                                                                                  47,528,056.18                                   47,528,056.18
 securities transactions

 Capital reduction due from Gangkang                                                                                              45,000,000.00


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2021 Annual Report


 Petty cash                                                                   4,538,885.93                                  5,654,205.42

 Gelin Enze Account                                                           4,007,679.91                                  4,007,679.91

 Cash deposit                                                                 3,469,880.18                                  4,001,660.43

 Tran Other safer of long-term assets
                                                                                                                             935,820.00
 receivable

 Other                                                                        4,579,343.20                                  2,754,248.87

 Less:Bad-debt provision                                                    51,568,194.07                                 51,661,776.07

                     Total                                                   12,555,651.33                                 58,219,894.74

3)The withdrawal amount of the bad debt provision:
                                                                                                                                     In RMB

                                   Stage 1                    Stage 2                        Stage 3

                               Expected credit        Expected credit loss over    Expected credit losses for
      Bad Debt Reserves                                                                                                    Total
                             losses over the next          life (no credit          the entire duration (credit
                                 12 months                  impairment)              impairment occurred)

 Balance as at January
                                     126,039.98                                                 51,535,736.09              51,661,776.07
 1,2021

 Balance as at January
                                    ——                       ——                            ——                        ——
 1,2021 in current

 Turn back in this
                                      -93,582.00                                                                              -93,582.00
 period

 Balance as at
                                        32,457.98                                               51,535,736.09              51,568,194.07
 December 31,,2021

Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable

4) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision:
     The provision for bad debts in the current period is RMB 0.00; and the amount of bad debt reserve recovered
or reversed in the current period is RMB 93,582.00.

 5)The actual write-off other accounts receivable: None

6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

                                                                                                                                     In RMB

                                                                                                       Proportion of the
                                                                                                                                   Closing
                                                                                                        total year end
              Name                           Nature            Closing balance         Aging                                   balance of
                                                                                                        balance of the
                                                                                                                                   bad debt
                                                                                                           accounts

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2021 Annual Report


                                                                                                      receivable(%)          provision

                                       Securities trading se                       Over 5
Kunlun Securities Co.,Ltd                                        47,528,056.18                                 74.12%      47,528,056.18
                                       ttlement funds                              years

Ganzhou Gankang Expressway                                                         Over 5
                                       Current account            4,007,679.91                                   6.25%      4,007,679.91
Co., Ltd.                                                                          years

                                                                                   Within 1
                                       Deposit                       22,980.00                                   0.04%
Guangdong Litong Real Estates                                                      year
Investment Co., Ltd.                   Vehicle parking
                                                                  1,630,467.36     1-2 years                     2.54%
                                       deposit

China Railway No.18 Bureau                                                         Within 1
                                       Surrogate payment            963,300.00                                   1.50%
Group Co., Ltd.                                                                    year

Guangdong Expressway Media                                                         Within 1
                                       Advertising                  649,386.62                                   1.01%
Co., Ltd.                                                                          Year

Total                                            --              54,801,870.07             --                  85.46%      51,535,736.09

 7) Accounts receivable involved with government subsidies

  None

8) Other account receivable which terminate the recognition owning to the transfer of the financial assets None

9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
  None

5. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
(1)Category of Inventory

                                                                                                                               In RMB

                                       Closing book balance                                     Opening book balance

          Items                            Provision for                                            Provision for
                       Book balance         inventory          Book value        Book balance        inventory           Book value
                                           impairment                                               impairment

  Raw materials           257,831.85                             257,831.85          49,380.53                              49,380.53

  Stock goods             382,247.81                             382,247.81           4,380.53                               4,380.53

  Total                   640,079.66                             640,079.66          53,761.06                              53,761.06


(2) Inventory depreciation reserve

None
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None

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2021 Annual Report


(4)Description of amortization amount of contract performance cost in the current period
None

6.Contract assets

                                                                                                                         In RMB


                                               Year-end balance                              Year-beginning balance
           Items
                                      Book        Bad debt                          Book          Bad debt
                                                                  Book value                                      Book value
                                     balance      provision                        balance        provision

 Quality guarantee              5,286,462.45                      5,286,462.45   5,452,813.90                     5,452,813.90

 Total                          5,286,462.45                      5,286,462.45   5,452,813.90                     5,452,813.90

Amount and reason of material change of book value of contract assets in the current period::None
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
None

7.Non-current asset due within 1 year
                                                                                                                         In RMB

                     Items
                                                         Year-end balance                       Year-beginning balance
 Pre-payment of business tax before
                                                                            51,745.32                                 51,745.32
 replacing business tax with VAT

 7 days notice of deposit interest                                      2,731,229.21

 Total                                                                  2,782,974.53                                  51,745.32



8.Other current assets

                                                                                                                         I n RMB

                     Items
                                                         Year-end balance                       Year-beginning balance
 Income tax to be certified                                                 21,213.96                                 27,051.69

 Total                                                                      21,213.96                                 27,051.69




193
             2021 Annual Report
                    9. Long-term equity investment

                                                                                                                                                                                    In RMB

                                                                                                         Increase/decrease
                                                                                                                                                                                             Closing
                                                                                                                                                            Withd
                                                                                     Investment profit                                                                                       balance
                                                                            Negati                                                                          rawal
                                                                                                         Adjustment of                     Cash bonus or                                       of
                                                                                         and loss                                                            of
                   Investees            Opening balance     Additional       ve                              other           Changes of       profits               Othe   Closing balance   impair
                                                                                     recognized under                                                       impai
                                                                                                         comprehensiv    other equity      announced to              r                        ment
                                                            investment      invest                                                                          rment
                                                                                        the equity         e income                            issue                                         provisi
                                                                            ment                                                                            provi
                                                                                                                                                                                               on
                                                                                         method                                                             sion

I. Joint venture

2. Affiliated Company

Zhaoqing Yuezhao Highway Co., Ltd.        302,436,218.83                               53,076,732.52                                        39,675,000.00                   315,837,951.35

Guangdong Jiangzhong Expressway
                                          192,252,504.94   133,650,000.00              20,810,859.29                                        28,621,724.94                   318,091,639.29
Co., Ltd.

Ganzhou Gankang Expressway Co.,
                                          145,774,620.72                                 8,343,776.40                                                                       154,118,397.12
Ltd.

Ganzhou Kangda Expressway Co.,
                                          216,814,090.50                               48,286,927.19                                        27,000,000.00                   238,101,017.69
Ltd.

Shenzhen Huiyan Expressway Co.,
                                          285,408,755.15                               35,557,629.02                                                                        320,966,384.17
Ltd.

Guoyuan Securities Co., Ltd.              938,476,820.74                               44,593,073.57      9,716,087.81                      20,696,516.40                   972,089,465.72

Guangdong Yuepu Small Refinancing
                                          216,683,369.84                               10,970,165.76                     -4,118,261.28       7,191,673.05                   216,343,601.27
Co., Ltd(Note)

Hunnan Lianzhi Technology
                                           85,080,974.92                                 5,400,932.77                         135,519.59                                     90,617,427.28
Co., .Ltd.

             194
           2021 Annual Report
SPIC Yuetong Qiyuan Chip Power
Technology Co., Ltd.                                     1,000,000.00            -35,202.65                                                               964,797.35


Subtotal                            2,382,927,355.64   134,650,000.00        227,004,893.87   9,716,087.81   -3,982,741.69   123,184,914.39          2,627,130,681.24

Total                               2,382,927,355.64   134,650,000.00        227,004,893.87   9,716,087.81   -3,982,741.69   123,184,914.39          2,627,130,681.24

           Other note

                 Note:Guangdong Yueke Technology Petty Loan Co., Ltd. was renamed as Guangdong Yuepu Small Refinancing Co., Ltd in February 2021.




           195
2021 Annual Report




10.Other Equity instrument investment
                                                                                          In RMB


                   Items                 Closing balance              Opening balance

 Guangle Expressway Co., Ltd.                        746,129,411.97              748,348,301.73

 Guangdong Radio and Television
 Networks investment No.1 Limited                     50,000,000.00                50,000,000.00
 partnership enterprise

 China Everbright Bank Co., Ltd.                     781,046,414.08              938,667,226.56

 Huaxia Securities Co., Ltd.(Notes1)

 Huazheng Asset Management Co., Ltd.
 (Notes2)

 Kunlun Securities Co., Ltd.(Notes3)

 Total                                             1,577,175,826.05             1,737,015,528.29




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        2021 Annual Report
        Breakdown disclosure of investment in non-tradable equity instruments in the current period
                                                                                                                                                                                      In RMB

                                                                                                         Amount     of    other    Reasons   for   designation     as   Reasons for other
                                                   Dividend income                                       consolidated    income    measured at fair value and           consolidated income
         Items                                                       Cumulative gain   Cumulative loss
                                                   recognized                                            transferred to retained   changes   included    in   other     transferred         to
                                                                                                         earnings                  comprehensive income                 retained earnings

                                                                                                                                   Non-transactional purpose for
         Guangle Expressway Co., Ltd.
                                                                                                                                   shareholding

         Guangdong Radio and Television Networks
                                                                                                                                   Non-transactional purpose for
         investment No.1 Limited partnership            652,822.25      8,455,606.40
                                                                                                                                   shareholding
         enterprise

                                                                                                                                   Non-transactional purpose for
         China Everbright Bank Co., Ltd.             49,403,538.24    263,485,537.28
                                                                                                                                   shareholding

                                                                                                                                   Non-transactional purpose for
         Huaxia Securities Co., Ltd.(Notes1)                                           5,400,000.00
                                                                                                                                   shareholding

         Huazheng Asset Management Co., Ltd.                                                                                       Non-transactional purpose for
                                                                                         1,620,000.00
         (Notes2)                                                                                                                shareholding

                                                                                                                                   Non-transactional purpose for
         Kunlun Securities Co., Ltd.(Notes3)                                          30,000,000.00
                                                                                                                                   shareholding

        Other note:
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 yuan to acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions. The Company replied on December 5, 2005, abandoning the
preemptive right under the same conditions. The Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62 million

        197
        2021 Annual Report
yuan.
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.




        198
   2021 Annual Report




11. Investment property

   (1) Investment property adopted the cost measurement mode
   √ Applicable □Not applicable
                                                                                                         In RMB

                                              Houses and                         Construction in
                          Items                                Land use right                        Total
                                              buildings                             progress

    I. Original value

    1.Opening balance                         12,664,698.25       2,971,831.10                     15,636,529.35


    2.Increased amount of the period

    I. Original value

    1.Opening balance

    2.Increased amount of the period



    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                         10,694,640.90       1,831,506.56                     12,526,147.46


    2.Increased amount of the period             147,549.12          73,569.36                       221,118.48


    (1)Withdrawal or amortization                147,549.12          73,569.36                       221,118.48



    3.Decreased amount of the period

          (1)Disposal

          (2)Other Out



         4.Closing balance                    10,842,190.02       1,905,075.92                     12,747,265.94


    III. Impairment provision


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2021 Annual Report


                                                    Houses and                                 Construction in
                        Items                                            Land use right                                    Total
                                                      buildings                                   progress

 1.Opening balance

 2.Increased amount of the period

      (1)Withdrawal




         3.Decreased amount of the period

      (1)Disposal

      (2)Other Out



         4.Closing balance

 IV. Book value

 1.Closing book value                                 1,822,508.23            1,066,755.18                                2,889,263.41

         2.Opening book                               1,970,057.35            1,140,324.54                                3,110,381.89

(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 balance                                          Reason

                                                             The land ownership is held by Guangdong Expressway Co., Ltd., and
 Houses and Building                         893,059.37
                                                           it is impossible to apply for the real estate ownership certificate

 Dali toll station management
                                             252,138.25    Transportation and other ancillary facilities, Not accreditation
 office house

 Total                                      1,145,197.62

12. Fixed assets
                                                                                                                                   In RMB

                    Items                                  Year-end balance                           Year-beginning balance

 Fixed assets                                                        10,639,272,192.02                             11,540,066,429.69

 liquidation of fixed assets                                                                                                     9,500.00

 Total                                                               10,639,272,192.02                             11,540,075,929.69




200
              2021 Annual Report
                      (1) List of fixed assets
                                                                                                                                                                                     In RMB

                                                                                                Jingzhu                                                                Office
                                      Guangfo                               Guanghui                            House and         Machinery        Transportation
              Items                                   Fokai Expressway                        Expressway                                                            equipment and         Total
                                     Expressway                            Expressway                            buildings        equipment         equipment
                                                                                                                                                                        other
                                                                                            Guangzhu section

I. Original price

                                                      10,892,817,927.3
      1.Opening balance            1,460,270,190.66                      6,475,428,904.48   4,824,881,424.98   653,156,798.92   1,807,080,795.89   61,427,688.89    134,245,998.01   26,309,309,729.13
                                                                    0

      2.Increased amount of
                                                                            2,421,073.00      312,207,724.11    16,808,970.00      -5,164,956.17    3,011,716.06     19,920,495.30      349,205,022.30
 the period

(1)Purchase                                                                                                                     11,173,862.02     3,011,716.06      7,735,426.86       21,921,004.94

(2)Transfer of project
                                                                            2,421,073.00      295,997,616.11    10,689,866.00     31,687,265.76                      12,185,068.44      352,980,889.31
under construction

(3)Increased of Enterprise
consolidation

           (4)Other                                                                          16,210,108.00     6,119,104.00     -48,026,083.95                                        -25,696,871.95

 3.Decreased amount of
                                                                                                1,101,457.64      129,039.00      19,378,135.56     2,328,790.00     20,521,890.73       43,459,312.93
 the period

(1)Disposal or scrap                                                                          1,101,457.64      129,039.00      19,378,135.56     2,328,790.00      4,311,782.73       27,249,204.93

          (2)Other Out                                                                                                                                             16,210,108.00       16,210,108.00

                                                      10,892,817,927.3
      4.Closing balance            1,460,270,190.66                      6,477,849,977.48   5,135,987,691.45   669,836,729.92   1,782,537,704.16   62,110,614.95    133,644,602.58   26,615,055,438.50
                                                                    0

II.              Accumulated

depreciation

              201
              2021 Annual Report

                                                                                                Jingzhu                                                                Office
                                      Guangfo                               Guanghui                            House and         Machinery        Transportation
              Items                                   Fokai Expressway                        Expressway                                                            equipment and         Total
                                    Expressway                             Expressway                            buildings        equipment         equipment
                                                                                                                                                                        other
                                                                                            Guangzhu section

      1.Opening balance            1,460,270,190.66   4,999,612,912.32   3,571,631,502.43   2,994,964,464.08   432,913,163.79   1,174,349,065.14   49,827,783.08     77,204,103.16   14,760,773,184.66

      2.Increased amount of
                                                        486,469,903.27    378,884,157.42      170,327,458.05    28,676,325.89    151,843,061.24     2,149,917.28     11,390,182.31    1,229,741,005.46
 the period

(1)Withdrawal                                         486,469,903.27    378,884,157.42      170,327,458.05    28,676,325.89    151,843,061.24     2,149,917.28     11,390,182.31    1,229,741,005.46



 3.Decreased amount of
                                                                                                  711,104.22      122,587.05      12,310,440.12     2,197,518.50      3,510,606.85      18,852,256.74
 the period

(1)Disposal or scrap                                                                            711,104.22      122,587.05      12,310,440.12     2,197,518.50      3,510,606.85      18,852,256.74



      4.Closing balance            1,460,270,190.66   5,486,082,815.59   3,950,515,659.85   3,164,580,817.91   461,466,902.63   1,313,881,686.26   49,780,181.86     85,083,678.62   15,971,661,933.38

II.              Accumulated

depreciation

      1.Opening balance                                                                                                            7,870,708.82                        599,405.96         8,470,114.78

      2.Increased amount of
                                                                                                                 2,889,394.16                                                             2,889,394.16
 the period

(1)Withdrawal                                                                                                  2,889,394.16                                                             2,889,394.16



3.Decreased amount of the
                                                                                                                                   6,638,789.88                        599,405.96         7,238,195.84
 period

      (1)Disposal or scrap                                                                                                       6,638,789.88                        599,405.96         7,238,195.84


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                                                                                        Jingzhu                                                              Office
                                 Guangfo                            Guanghui                            House and        Machinery       Transportation
          Items                              Fokai Expressway                         Expressway                                                          equipment and         Total
                                Expressway                         Expressway                            buildings       equipment        equipment
                                                                                                                                                              other
                                                                                    Guangzhu section



    4.Closing balance                                                                                    2,889,394.16     1,231,918.94                                          4,121,313.10


IV. Book value

1.Closing book value                          5,406,735,111.71   2,527,334,317.63   1,971,406,873.54   205,480,433.13   467,424,098.96   12,330,433.09     48,560,923.96   10,639,272,192.02

    2.Opening book                           5,893,205,014.98    2,903,797,402.05   1,829,916,960.90   220,243,635.13   624,861,021.93   11,599,905.81     56,442,488.89   11,540,066,429.69




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⑵Temporarily idle fixed assets

                                                                                                                               In RMB

                                                Accumulated           Impairment
         Items              Original price                                                    Book value              Remark
                                                 depreciation            provision

 House and
                               6,176,339.21        4,400,874.00                                 1,775,465.21
 buildings

 Machinery
                               2,322,167.00        1,090,248.06           1,231,918.94
 equipment


 ⑶Fixed assets leased out through operating leases: None

 (4)Details of fixed assets failed to accomplish certification of property

                                                                                                                               In RMB

                    Items                                   Book value                                     Reason

 Transportation and other ancillary                                                       Transportation and other ancillary
                                                                      175,378,186.85
 facilities                                                                               facilities,Not accreditation.


(5)liquidation of fixed assets


                                                                                                                               In RMB

                    Items                                Year-end balance                          Year-beginning balance

 Office equipment                                                                                                           9,500.00

 Total                                                                                                                      9,500.00

13. Project under construction
                                                                                                                               In RMB

                    Items                                Year-end balance                          Year-beginning balance

 Project under construction                                           351,130,455.06                                340,611,095.47

 Total                                                                351,130,455.06                                340,611,095.47

(1)Project under construction
                                                                                                                               In RMB

                                                   Year-end balance                              Year-beginning balance

                                        Book balance    Provis     Book value            Book balance      Provi       Book value
                                                         ion                                                sion
                 Items
                                                         for                                                for
                                                        deval                                              deval
                                                        uation                                             uation

 Gualuhu Interchange project           160,502,763.61             160,502,763.61          52,045,974.12               52,045,974.12


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                                               Year-end balance                          Year-beginning balance

                                   Book balance     Provis    Book value         Book balance     Provi     Book value
                                                     ion                                          sion
              Items
                                                     for                                           for
                                                    deval                                         deval
                                                    uation                                        uation

 Huizhou North Interchange
                                   105,046,556.00            105,046,556.00         283,432.73                283,432.73
 Project

 Reconstruction and Expansion
                                    42,058,703.12             42,058,703.12       29,547,232.58             29,547,232.58
 of Sanbao to Shuikou

 Reconstruction and Expansion
 of Nansha-Zhuhai section of        17,636,216.62             17,636,216.62
 Guangzhou-Macao Expressway

 Expansion Project of Crossing
 Section of Jiangxi-Shenzhen        14,470,943.98             14,470,943.98        2,555,353.00              2,555,353.00
 High-speed Railway

 Expansion Project of
                                     7,383,321.30                 7,383,321.30     3,531,207.30              3,531,207.30
 Luogang-Lingkeng Section

 Tanwei Bridge Ship Collision
                                     1,749,246.00                 1,749,246.00
 Prevention Project

 Intelligent Transformation
 Project for Monitoring System
                                     1,535,540.00                 1,535,540.00
 of Foshan-Kaiping Expressway
 (Phase II)

 Other sporadic projects              747,164.43                   747,164.43      2,778,800.00              2,778,800.00

 Transformation and Capacity
 Expansion Project of Power
 Distribution in Siqian, Gonghe                                                    3,224,884.00              3,224,884.00
 District and Yayao Service Area
 of Foshan-Kaiping Expressway

 Intelligent Reconstruction
 Project of Monitoring System of                                                   1,747,854.66              1,747,854.66
 Foshan-Kaiping Expressway

 Reconstruction Project for
 Outfield Message Signs of                                                         2,554,560.56              2,554,560.56
 Foshan-Kaiping Expressway

 Smart Transformation Project of
 Yayao Service Area of                                                             2,344,492.58              2,344,492.58
 Foshan-Kaiping Expressway

 Upgrade and reconstruction                                                        2,117,334.20              2,117,334.20


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                                               Year-end balance                       Year-beginning balance

                                   Book balance     Provis    Book value      Book balance     Provi     Book value
                                                     ion                                       sion
                Items
                                                     for                                        for
                                                    deval                                      deval
                                                    uation                                     uation
 project fund for variable
 message signs

 Monitoring and reconstruction
 project fund for
                                                                                1,910,901.89              1,910,901.89
 Guangzhou-Foshan command
 road network

 Construction Project for
                                                                                2,624,661.74              2,624,661.74
 Maintenance Base in 2018

 Preparation of land space
 control plan for reconstruction                                                1,213,005.54              1,213,005.54
 and expansion

 Civil service area charging
                                                                                1,266,602.00              1,266,602.00
 station

 Construction Project of
 Comprehensive Maintenance                                                      5,493,791.00              5,493,791.00
 Base

 Widening Project for Northeast
 Freight Car Surrounding Line of
 Guangzhou-Huizhou                                                              1,919,199.00              1,919,199.00
 Expressway Underpassing
 Guangzhou Railway Hub

 Pavement Treatment Project                                                   105,958,479.27            105,958,479.27

 Bridge Deck Treatment Project
                                                                              117,493,329.30            117,493,329.30
 of Dayong Viaduct

 Total                             351,130,455.06            351,130,455.06   340,611,095.47            340,611,095.47




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                2021 Annual Report
                 (2) Changes of significant construction in progress

                                                                                                                                                                                             In RMB

                                                                                                                                                                       Including:
                                                                                                                                                                                             Capitaliza   Source
                                                                                                                                         Project   Capitalization      capitalization of
      Name of                                Opening                         Transferred to    Other                        Proportion                                                       tion of      of
                           Budget                              Increase                                     End balance                  proces    of                  interest
      project                                 balance                         fixed assets    decrease                          %                                                            interest     fundin
                                                                                                                                            s            interest      this
                                                                                                                                                                                              rate (%)         g
                                                                                                                                                                               period

Reconstruction
and Expansion
                        3,426,206,700.00    29,547,232.58    12,712,309.82      200,839.28                  42,058,703.12     76.13%     82.29     72,779,504.82                                          Other
of Sanbao to
Shuikou

Reconstruction
and Expansion
of
Nansha-Zhuhai
                       13,326,000,000.00     3,502,229.54    14,759,140.08                    625,153.00    17,636,216.62      0.13%     0.13                                                             Other
section of
Guangzhou-Ma
cao
Expressway

Gualuhu
Interchange               203,460,000.00    52,045,974.12   108,470,787.49        13,998.00                160,502,763.61     78.89%     78.89                                                            Other
project

Pavement
Treatment                 186,000,000.00   105,958,479.27    64,659,546.12   170,618,025.39                                   91.73%     100.00         5,785,964.09          3,305,948.95       4.07%    Other
Project

Bridge Deck
                          123,000,000.00   117,493,329.30     7,886,261.42   125,379,590.72                                  101.93%     100.00         8,579,841.36          3,938,652.42       4.07%    Other
Treatment

                207
              2021 Annual Report
Project of
Dayong
Viaduct

Expansion
Project of
Crossing
Section of               14,790,000.00     2,555,353.00    11,915,590.98                                  14,470,943.98   97.84%   97.84                                  Other
Jiangxi-Shenzh
en High-speed
Railway

Huizhou North
Interchange             134,170,000.00      283,432.73    104,763,123.27                                 105,046,556.00   78.29%   78.29                                  Other
Project

Total                17,413,626,700.00   311,386,030.54   325,166,759.18   296,212,453.39   625,153.00   339,715,183.33    --        --    87,145,310.27   7,244,601.37     --




              208
  2021 Annual Report


  (3)Provision for impairment of construction projects in the current period

  None
  (4)Engineering Materials:None

  14.Use right assets

                                                                                                                                    In RMB

                                         House and            Machinery         Transportation             Other
                Items                                                                                                       Total
                                         buildings            equipment              equipment

        1.Opening balance                21,487,031.29                                 659,277.49         1,007,747.00   23,154,055.78

        2.Increased amount of the
                                                                357,112.19             504,113.56                          861,225.75
    period

   (1)New lease                                               357,112.19             504,113.56                          861,225.75

        4.Closing balance                21,487,031.29          357,112.19           1,163,391.05         1,007,747.00   24,015,281.53

        2.Increased amount of the
                                          9,208,727.65           71,422.44             527,788.99          107,017.44     9,914,956.52
   period

   (1)Withdrawal                        9,208,727.65           71,422.44             527,788.99          107,017.44     9,914,956.52

    4.Closing balance                     9,208,727.65           71,422.44             527,788.99          107,017.44     9,914,956.52

          1.Closing book value           12,278,303.64          285,689.75             635,602.06          900,729.56    14,100,325.01

          2.Opening book value           21,487,031.29                                 659,277.49         1,007,747.00   23,154,055.78


15. Intangible assets

  (1) List of intangible assets

                                                                                                                                   In RMB

                                                                                                    The Turnpike
   Items                                     Land use right               Software                                         Total
                                                                                                     franchise

   I. Original price

        1.Opening balance                        1,311,658.00             39,912,285.19               318,348,741.86     359,572,685.05

   2.Increased amount of the
                                                                           2,636,504.97                                    2,636,504.97
    period

   (1) Purchase                                                            1,932,544.17                                    1,932,544.17


   (2)Internal Development                                                   703,960.80                                     703,960.80


   (3)Increased        of   Enterprise

   Combination


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2021 Annual Report


                                                                          The Turnpike
 Items                                 Land use right     Software                             Total
                                                                           franchise




  3.Decreased amount of the
                                                             485,000.00                         485,000.00
 period

  (1)Disposal                                              485,000.00                         485,000.00




 4.Closing balance                         1,311,658.00   42,063,790.16     318,348,741.86   361,724,190.02


 II.Accumulated amortization

        1.Opening balance                  1,311,658.00   32,458,724.38      23,420,946.15    57,191,328.53

 2.Increased amount of the
                                                           2,829,668.00      33,684,017.06    36,513,685.06
  period

      (1) Withdrawal                                       2,829,668.00      33,684,017.06    36,513,685.06




 3.Decreased     amount     of   the
                                                             485,000.00                         485,000.00
 period

  (1)Disposal                                              485,000.00                         485,000.00




  4.Closing balance                        1,311,658.00   34,803,392.38      57,104,963.21    93,220,013.59


 III. Impairment provision

      1.Opening balance

 2.Increased amount of the
  period

      (1) Withdrawal




 3.Decreased     amount     of   the

 period

 (1)Disposal




      4.Closing balance

 IV. Book value


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2021 Annual Report


                                                                                                The Turnpike
 Items                                      Land use right            Software                                         Total
                                                                                                  franchise

       1.Closing book value                                            7,260,397.78                261,243,778.65   268,504,176.43

       2.Opening book value                                            7,453,560.81                294,927,795.71   302,381,356.52

The intangible assets by the end of the formation of the company's internal R & D accounted 0.26% of the
proportion of the balance of intangible assets

⑵Details of Land use right failed to accomplish certification of property

None

16.Development expenses

                                                                                                                               In RMB

                                            Increase in this period                       Decrease in this period

                                   Internal
                                                                             Recognize          Transfer to
                  Balance in      developme                                                                            Balance in
      Items                                                                       d as           current
                  year-begin          nt            Other                                                               year-end
                                                                             intangible         profit and
                                  expenditur
                                                                                 assets            loss
                                      e

 Smart
 Party
 Building                         703,960.80                                703,960.80
 Cloud
 Platform

      Total                       703,960.80                                703,960.80



17. Long-term amortize expenses
                                                                                                                          In RMB

                               Balance in          Increase in this   Amortized                                     Balance in
          Items                year-begin              period         expenses                      Other loss
                                                                                                                    year-end

 Prepaid business
 tax and surcharges
 before
                                2,454,375.00                                350,625.00                               2,103,750.00
 replacement of
 business tax with
 value-added tax

          Total                 2,454,375.00                                350,625.00                               2,103,750.00




211
2021 Annual Report


18. 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

 Assets impairment
                                  7,264,977.10                1,816,244.28           8,705,572.14            2,176,393.04
 provisions

 Deductible loss                671,918,486.05           167,979,621.51          1,000,101,381.76          250,025,345.44

 Asset appraisal,
 appreciation,
                                190,813,984.60               47,703,496.15         269,669,149.91           67,417,287.48
 depreciation and
 amortization

 Deferred income                 30,978,093.11                7,744,523.33          44,545,569.73           11,136,392.43

 Total                          900,975,540.86           225,243,885.27          1,323,021,673.54          330,755,418.39


(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 the fair
 value of other equity          263,485,537.28               65,871,384.32         421,106,349.76          105,276,587.44
 instruments

 Deductible temporary
 differences in the
                                995,623,507.00           248,905,876.75          1,124,772,402.32          281,193,100.58
 formation of asset
 impairment

 Difference of
 amortization method of           4,580,106.28                1,145,026.57           2,533,490.83                633,372.72
 franchise of toll road

 Total                        1,263,689,150.56           315,922,287.64          1,548,412,242.91          387,103,060.74


(3)Deferred income tax assets or liabilities listed as net after offset:None

(4)Details of unrecognized deferred tax assets

                                                                                                                     In RMB


212
2021 Annual Report


                    Items                              Balance in year-end                            Balance Year-beginning

 Deductible loss                                                         15,342,382.11                                      11,452,524.12

 Assets impairment provisions                                            93,406,200.73                                  91,984,931.50

 Total                                                                  108,748,582.84                                 103,437,455.62


(5)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

 2022                                              1,133,109.04                     1,133,109.04

 2023                                              3,129,535.72                     3,129,535.72

 2024                                              3,618,779.07                     3,618,779.07

 2025                                              3,571,100.29                     3,571,100.29

 2026                                              3,889,857.99

 Total                                            15,342,382.11                    11,452,524.12                       --


 19. Other Non-current assets

                                                                                                                                  In RMB
                                             Balance in year-end                                 Balance Year-beginning

                             Book balance      Provision for       Book value      Book balance         Provision           Book value
           Items                                devaluation                                                 for
                                                                                                         devaluati
                                                                                                            on

 Prepaid fixed assets
                             24,675,415.36                         24,675,415.36    21,946,578.75                       21,946,578.75
 engineering fees

 Prepaid business tax           415,282.44                           415,282.44          467,027.76                           467,027.76

 Less:Part due within 1
                                 51,745.32                            51,745.32           51,745.32                            51,745.32
 year

 Total                       25,038,952.48                         25,038,952.48    22,361,861.19                       22,361,861.19


20. Short-term Borrowing

(1)Short-term Borrowing

                                                                                                                                  In RMB
                    Total                              Balance in year-end                            Balance Year-beginning

 Credit Borrowing                                                                                                      200,000,000.00

 Interest accrued on short-term borrowing                                                                                     192,500.00



213
2021 Annual Report


 Total                                                                                               200,192,500.00

Note:

(2)Overdue short-term borrowings


      None


  21.Account payable

(1) List of account payable

                                                                                                              In RMB
                  Items                       Balance in year-end                    Balance Year-beginning

 Within 1 year(Including 1 year)                          137,346,075.15                           252,654,968.64

 1-2 years(including2 years)                               32,260,718.56                            44,097,234.36

 2-3 years(including 3 years)                              30,239,953.68                            10,392,605.88

 Over 3 years                                                64,640,392.05                            62,628,533.83

 Total                                                      264,487,139.44                           369,773,342.71


(2)Significant payable aging more than 1 year

                                                                                                              In RMB
                  Items                       Balance in year-end                           Reason

 Foshan Land and resources Bureau.                           30,507,598.21   Unsettled

 Guang Zhongjiang Expressway project
                                                             28,000,000.00   Unsettled
 Management Dept

 Guangzhou Tuzhiling
                                                             12,191,821.25   Unsettled
 Computer technology Co., Ltd.

 Heshan Land and resources Bureau                            10,186,893.60   Unsettled

 Guangzhou Haohang Electronic
                                                              4,727,834.00   Unsettled
 Technology Co., Ltd

 Total                                                       85,614,147.06                     --


22. Prepayment received

 (1) List of Prepayment received
                                                                                                              In RMB
                  Items                       Balance in year-end                    Balance Year-beginning




214
2021 Annual Report


 Within 1 year(Including 1 year)                                     1,937,127.54                                     1,473,106.10

 1-2 years(Including 2 years)                                              2,777.78

 2-3 years(Including 3 years)

 Over 3 years                                                          8,720,303.19                                     9,835,901.31

 Total                                                               10,660,208.51                                     11,309,007.41


(2) Significant advance from customers aging over one year

                                                                                                                             In RMB
                    Items                             Balance in year-end                         Unpaid/Uncarry over reason

 Guanghdong Xinle Technology                                                             The rent is not before the settlement
                                                                       1,208,054.33
 Development Co., Ltd.                                                                   period

 Guangzhou Huanlong Expressway Co.,                                                      Land rent has not reached the settlement
                                                                       7,115,729.78
 Ltd.                                                                                    period

 Total                                                                 8,323,784.11                           --


23.Contract liabilities

                                                                                                                              In RMB
                    Items                             Balance in year-end                           Balance Year-beginning

 Payments received in advance                                               22,000.00                                     309,734.51

 Total                                                                      22,000.00                                     309,734.51


24. Payable Employee wage

      (1)Payable Employee wage
                                                                                                                             In RMB

                Items                Year-beginning          Increase in the            Decrease in the
                                                                                                                   Year-end balance

                                        balance               current period            current period
 I. Short-term compensation             16,726,198.13           447,448,460.13            444,961,026.35               19,213,631.91

 II.Post-employment benefits - d
                                                                 62,652,104.74             62,652,104.74
 efined contribution plans

 III. Dismissal benefits                                            198,182.02                198,182.02

 Total                                  16,726,198.13           510,298,746.89            507,811,313.11               19,213,631.91


(2)Short-term Remuneration

                                                                                                                             In RMB


215
2021 Annual Report



               Items                   Year-beginning            Increase in the          Decrease in the
                                                                                                                Year-end balance

                                           balance               current period           current period
 1.Wages, bonuses, allowances
                                               465,063.49          340,740,046.58           340,699,546.60             505,563.47
 and subsidies

 2.Employee welfare                                                  32,369,962.85           32,369,962.85

 3. Social insurance premiums                                        23,551,217.77           23,551,217.77

      Including :Medical
                                                                     14,959,123.05           14,959,123.05
 insurance

 Work injury insurance                                                  287,654.22              287,654.22

 Maternity insurance                                                  2,354,828.86             2,354,828.86

             Other                                                    5,949,611.64             5,949,611.64

 4.Public reserves for housing                                       37,756,867.08           37,756,867.08

 5.Union funds and staff
                                           14,578,979.10             11,097,190.10             9,193,047.40         16,483,121.80
 education fee

 8.Other                                      1,682,155.54            1,933,175.75             1,390,384.65           2,224,946.64

 Total                                     16,726,198.13           447,448,460.13           444,961,026.35          19,213,631.91


(3)Defined contribution plans listed

                                                                                                                            In RMB
                                    Balance             Increase in this period    Payable in this period     Balance in year-end
           Items
                                 Year-beginning

 1. Basic old-age
                                                                35,904,176.87              35,904,176.87
 insurance premiums

 2.Unemployment
                                                                  1,030,413.16               1,030,413.16
 insurance

 3.Enterprise annuity
                                                                25,717,514.71              25,717,514.71
 payment

 Total                                                          62,652,104.74              62,652,104.74


25. Tax Payable
                                                                                                                            In RMB
                     Items                               Balance in year-end                       Balance Year-beginning

 VAT                                                                     15,734,725.35                              19,253,425.01

                                                                        143,478,849.99                             192,073,414.37
 Enterprise Income tax
 Individual Income tax                                                     3,202,322.06                               2,589,498.58



216
    2021 Annual Report


     City Construction tax                                                     1,044,325.22                               1,270,608.27

     Education subjoin                                                          492,391.84                                  594,019.27

     Locality Education subjoin                                                 308,823.69                                  376,577.48

     Vehicle and vessel tax

     Land use tax

     Property tax                                                                110,493.45                                  45,461.47

     Stamp tax                                                                  240,581.39                                1,514,826.65

     Other                                                                                                                   30,561.68

     Total                                                                  164,612,512.99                              217,748,392.78


    26.Other accounts payable

                                                                                                                                In RMB
                        Items                                Balance in year-end                       Balance Year-beginning

     Dividend payable                                                        22,941,943.24                               22,262,804.39

     Other account payable                                                  155,028,540.52                            1,490,356,555.39

     Total                                                                  177,970,483.76                            1,512,619,359.78


    (1)Interest payable :None

    (2)Dividends payable

                                                                                                                                In RMB
                        Items                                Balance in year-end                       Balance Year-beginning

     Common stock dividends                                                  22,941,943.24                               22,262,804.39

     Total                                                                   22,941,943.24                               22,262,804.39


    Other explanations, including important dividends payable that have not been paid for more than one year, shall
disclose the reasons for non payment:

    Among the dividends payable at the end of the period, 21473837.46 yuan is the dividend of shareholders who have not paid for more
    than one year, which is mainly due to the failure of shareholders to provide the bank information for interest payment, the application
    for receiving dividends provided by shareholders who have not undergone share reform, or the error in providing the bank
    information for receiving dividends, resulting in the failure of timely payment of dividends.


    (3)Other accounts payable

    (1) Other accounts payable listed by nature of the account

                                                                                                                                In RMB

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2021 Annual Report


                   Items                         Year-end balance                          Year-Beginning balance

 M&A funds payable to Guanghui 21%
                                                                                                          1,221,839,292.00
 equity

 Estimated project cost                                       42,394,262.23                                146,192,899.83

 Deposit, warranty and security deposit                       77,685,535.90                                 83,526,214.67

 Other                                                        34,948,742.39                                 36,710,267.87

 Temporary collection payable                                                                                2,087,881.02

 Total                                                       155,028,540.52                               1,490,356,555.39


(2) Other significant accounts payable with aging over one year

                                                                                                                    In RMB
                   Items                         Closing balance                       Unpaid/un-carry over reason

 Poly Changda Highway Engineering                                                The settlement conditions have not yet
                                                              15,067,509.46
 Co., Ltd.                                                                       been me

                                                                                 The settlement conditions have not yet
 Yayao to Xiebian extension                                   12,499,448.48
                                                                                 been me

 Guangdong Guanyue Road & Bridge                                                 The settlement conditions have not yet
                                                                  7,618,479.80
 Co., Ltd.                                                                       been me

 Guangdong Nengda High Grade                                                     The settlement conditions have not yet
                                                                  3,920,602.10
 Highway Maintenance Co., Ltd.                                                   been me

                                                                                 The settlement conditions have not yet
 Dahao Municipal Construction Co., Ltd.                           3,000,000.00
                                                                                 been me

 Total                                                        42,106,039.84                          --


 27. Non-current liabilities due within 1 year

                                                                                                          In RMB
                   Items                         Balance year-end                          Year-beginning balance

 Long-term loans due within 1 year                           465,576,600.00                                203,536,200.00

 Bond payable due within 1 year

 Long-term payable due within 1 year                                944,339.62                                 732,075.46

 Lease liabilities due within 1 year                          12,474,474.87                                  9,124,680.86

 Interest payable due within 1 year                           46,648,953.77                                 62,059,742.01

 Total                                                       525,644,368.26                                275,452,698.33




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28.Other current liabilities

                                                                                                     In RMB
                  Items                     Balance year-end                Year-beginning balance

 Tax to be rewritten                                           726,336.48                      648,581.64

 Total                                                         726,336.48                      648,581.64


29. Long-term loan

(1) Category of long-term loan

                                                                                                     In RMB
                       Items                 Balance year-end               Year-beginning balance

 Pledge loan                                            582,195,000.00                     657,365,000.00

 Credit loan                                          4,456,002,800.00                   4,523,610,000.00

 Less:Long-term loans due within one year               465,576,600.00                     203,536,200.00

 Total                                                4,572,621,200.00                   4,977,438,800.00


30.Bond payable

(1)Bond payable

                                                                                                 In RMB


                  Items                     Balance year-end                Year-beginning balance

 Medium- term note                                    1,427,434,086.58                   1,426,488,336.65

 Total                                                1,427,434,086.58                   1,426,488,336.65




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 (2)Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability

                                                                                                                                                                  In RMB
                                                                                                                The                                 Pay in
                                                                                                                        Withdraw      Overflow
                                                                                                                curre                               curren
 Name of the bond      Book value      Issue date          Period          Issue amount      Opening balance            interest at   discount               Closing balance
                                                                                                                 nt                                   t
                                                                                                                           par         amount
                                                                                                                issue                               period

19 Guangdong
Expressway            680,000,000.00   2019.2.27    2019.3.1-2024.3.1      680,000,000.00      678,575,316.87                         -450,549.72              679,025,866.59
MTN001

20 Guangdong
Expressway            750,000,000.00   2020.3.13    2020.3.17-2025.3.17    750,000,000.00      747,913,019.78                         -495,200.21              748,408,219.99
MTN001

       Total               --              --                --           1,430,000,000.00   1,426,488,336.65                         -945,749.93            1,427,434,086.58




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2021 Annual Report


(3) Note to conditions and time of share transfer of convertible bonds
None

(4)Other financial instruments that are classified as financial liabilities

None

31.Lease liabilities

                                                                                                                     In RMB

                   Items                             Balance year-end                      Year-beginning balance

 Long-term lease liabilities                                      15,247,934.63                            21,369,895.75

 Less:Lease liabilities due within 1 year                        12,474,474.87                             9,124,680.86

                   Total                                           2,773,459.76                            12,245,214.89


 32. Long-term payable

                                                                                                                     In RMB

                   Items                             Balance year-end                      Year-beginning balance

 Long-term payable                                                 3,461,832.74                            40,406,172.37

 Total                                                             3,461,832.74                            40,406,172.37

(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

 Entrust loans                                                                                             36,000,000.00

 Medium term bill underwriting fee                                 2,383,962.25                              3,116,037.72

 Less:Part due within 1 year                                           944,339.62                            732,075.46

 Total                                                             3,461,832.74                            40,406,172.37


33. Deferred income

                                                                                                                     In RMB

         Items             Opening balance     Increase           Decrease           Closing balance         Cause

 Government
                               44,545,569.64                      13,567,476.53         30,978,093.11
 subsidy

 Lease income                  44,625,000.00                       6,375,000.00        38,250,000.00

 Total                         89,170,569.64                      19,942,476.53         69,228,093.11          --




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34. Stock capital
                                                                                                                           In RMB

                                                               Changed(+,-)

                          Balance       Issuance
                                                      Bonus      Capitalizatio                                Balance in year-end
                     Year-beginning     of new                                      Other      Subtotal
                                                      shares      n of public
                                         share
                                                                    reserve

 Total of
                     2,090,806,126.00                                                                           2,090,806,126.00
 shares


35. Capital reserves
                                                                                                                           In RMB


                      Items                        Year-beginning       Increase in the     Decrease in the     Year-end balance

                                                       balance          current period      current period
 Share premium                                       508,711,146.99                                               508,711,146.99
 (1) Capital invested by investors                 2,508,408,342.99                                             2,508,408,342.99

 (2) Influence of business combination under
                                                   -1,999,697,196.00                                            1,999,697,196.00
 the same control

 Other capital reserves                              137,258,063.49     71,609,569.29         4,118,261.28        204,749,371.50

 (1) Changes in other equity of the investee
                                                         525,074.49           135,519.59      4,118,261.28          -3,457,667.20
 under the equity accounting

 (2)Other                                          136,732,989.00     71,474,049.70                             208,207,038.70

 Total                                               645,969,210.48     71,609,569.29         4,118,261.28        713,460,518.49


      - The situation of change in the current capital reserve is as follows:

      1. The changes in capital reserve-other equity in the current period is due to the capital increase and share
expansion of the joint venture Hunan Lianzhi Technology Co., Ltd and Guangdong Yuepu Microfinance Co., Ltd.
The Company has adjusted the book value of long-term equity investment according to the diluted shareholding
ratio, resulting in an increase of RMB 135,519.59 and a decrease of RMB 4,118,261.28 in capital reserve
respectively.
      2. Current capital reserve-other increases mainly due to
      ① The agreement signed by Guangzhou-Huizhou Company and Zengcheng District People's Government to
add interchange on Zengcheng Section of Guangzhou-Huizhou Expressway, which stipulates that
Guangzhou-Huizhou Company will build Shaning Road Interchange and Xincheng Avenue Interchange, and all
expenses incurred in building interchange will be borne by Zengcheng District People's Government.
      ② The agreement signed by Guangzhou-Huizhou Company and Huizhou Transportation Bureau to add
Changkeng Interchange (tentative name) on Guangzhou-Huizhou Expressway, which stipulates that
Guangzhou-Huizhou Company will build Changkeng Interchange (renamed Huizhou North Interchange), and all
the expenses incurred in the construction of Interchange will be borne by Guangzhou-Huizhou Company, and

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2021 Annual Report


Huizhou Transportation Bureau will give Guangzhou-Huizhou Company a financial subsidy of RMB 1.05
million.
     After the above project is completed, it will be managed by Guangzhou-Huizhou Company. A total of RMB
268,103,900.00 was received from Zengcheng District Government at the beginning of the period, of which the
opening balance of capital reserve attributable to the parent company-other capital reserve was RMB
136,732,989.00, and RMB 140,145,195.50 was newly received in this period, of which capital reserve attributable
to the parent company-other capital reserve increased by RMB 71,474,049.70 in this period.




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      2021 Annual Report
            36. Other comprehensive income

                                                                                                                                                                                         In RMB

                                                                                                               Amount of current period

                                                                                       Less:Amount
                                                                                       transferred into
                                                                                       profit and loss    Less:Prior period
                                                                                        in the current     included in other                                               After-tax
                                                 Year-beginning                                                                                     After-tax attribute                    Year-end
                    Items                                          Amount incurred       period that      composite income       Less:Income tax                         attribute to
                                                    balance                                                                                           to the parent                         balance
                                                                   before income tax   recognied into     transfer to retained       expenses                              minority
                                                                                                                                                        company
                                                                                            other           income in the                                                 shareholder
                                                                                       comprehensive        current period
                                                                                       income in prior
                                                                                           period

1.Other comprehensive income will be
                                                 315,829,762.32     -159,839,702.24                                                -39,405,203.12    -120,434,499.12                     195,395,263.20
reclassified into income or loss in the future

Changes in fair value of investments in
                                                 315,829,762.32     -159,839,702.24                                                -39,405,203.12    -120,434,499.12                     195,395,263.20
other equity instruments

2.Other comprehensive income
reclassifiable to profit or loss in subsequent    -12,933,884.67       9,716,087.81                                                                      9,716,087.81                     -3,217,796.86
periods

Including:Share of other comprehensive
income of the investee that cannot be
                                                  -12,933,884.67       9,716,087.81                                                                      9,716,087.81                     -3,217,796.86
transferred to profit or loss accounted for
using the equity method

Total of other comprehensive income              302,895,877.65     -150,123,614.43                                                -39,405,203.12    -110,718,411.31                     192,177,466.34

      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:


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 37. Surplus reserve

                                                                                                                            In RMB


           Items                 Year-beginning       Increase in the current    Decrease in the current    Year-end balance

                                     balance                  period                     period
 Statutory surplus
                                   1,167,785,965.63           57,589,364.93                                    1,225,375,330.56
 reserve

 Total                             1,167,785,965.63           57,589,364.93                                    1,225,375,330.56


38. Retained profits

                                                                                                                            In RMB

                       Items                               Amount of this period                    Amount of last period

 Before adjustments: Retained profits in last
                                                                        3,725,679,319.35                       3,915,790,810.76
 period end

 Adjust the total undistributed profits at the
                                                                                546,190.04
 beginning of the period

 After adjustments: Retained profits at the period
                                                                        3,726,225,509.39                       3,915,790,810.76
 beginning

 Add:Net profit belonging to the owner of the
                                                                        1,700,406,981.99                         867,842,774.78
 parent company

 Less: Statutory surplus reserve                                           57,589,364.93                          93,232,912.82

 Common stock dividend payable                                            608,424,582.67                         882,320,185.17

 Other(Note)                                                                                                    82,401,168.20

 Retained profit at the end of this term                                4,760,618,543.78                       3,725,679,319.35


Note: other items in the previous period are the dividends corresponding to the 21% equity of major asset

restructuring transaction distributed by Guangdong Guanghui Expressway Co., Ltd. to the shareholder Guangdong

Expressway Co., Ltd.

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.

(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .


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2021 Annual Report



(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 .

39.Operation income and operation cost

                                                                                                                        In RMB

                                       Amount of this period                              Amount of last period
         Items
                                 Income                    Cost                     Income                    Cost

 Main operation                 5,214,504,182.23        1,899,514,164.39           3,722,365,693.29        1,633,666,936.51

 Other operation                  73,553,495.70            29,997,861.17             67,983,182.97            28,556,759.62

 Total                          5,288,057,677.93        1,929,512,025.56           3,790,348,876.26        1,662,223,696.13

Whether the net profit before and after deducting non-recurring gains and losses is negative after audit
□ Yes √ No


40. Business tax and subjoin

                                                                                                                        In RMB

                   Items                           Amount of this period                      Amount of last period
Urban construction tax                                             10,148,595.37                                  7,512,714.60

 Education surcharge                                                4,837,411.83                                  3,578,509.64

 Property tax                                                       4,108,460.47                                  5,212,158.72

 Land use tax                                                       2,803,701.59                                  1,830,767.01

 Vehicle use tax                                                       75,614.77                                    77,663.79

 Stamp tax                                                            589,040.04                                  2,310,400.84

 Business tax                                                         370,495.32                                   370,495.32

 Locality Education surcharge                                       3,218,282.06                                  2,379,608.64

 Other                                                                                                             129,610.93

 Total                                                             26,151,601.45                              23,401,929.49


41. Administrative expenses

                                                                                                                        In RMB

                   Items                           Amount of this period                      Amount of last period

 Wage                                                             160,631,132.11                             141,324,125.20


 Depreciation                                                      12,006,378.25                                  9,870,249.16



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2021 Annual Report


 Intangible assets amortization                          2,145,714.88                       2,368,807.27

 Low consumables amortization                              856,378.64                       1,316,594.00

 Rental fee                                             12,641,157.99                      12,467,786.77

 Office expenses                                         7,832,333.51                       7,437,025.62

 Travel expenses                                           802,598.61                         573,930.76

 Consultation expenses                                   1,102,939.62                       2,595,902.63

 The fee for hiring agency                               5,345,624.33                       7,179,452.28

 Listing fee                                               854,072.73                         864,123.92

 Information cost and maintenance fee                    3,821,536.06                       2,830,419.98

 Other                                                  15,565,575.73                      15,116,701.99

 Total                                                 223,605,442.46                     203,945,119.58


42.R& D expenses

                                                                                                   In RMB

                     Items              Amount of this period              Amount of last period

 Wage                                                    1,218,145.17                         315,808.12

 Material cost                                             117,433.62                          88,495.58

 Depreciation                                               30,469.69

 Low consumables amortization                                   2,112.93

 Office expenses                                            12,252.27

 Repairs cost                                               11,988.44

 Vehicle fee                                                15,512.82

 Development cost                                       11,535,779.93

 Other                                                     327,243.86

 Total                                                  13,270,938.73                         404,303.70


43.Financial expenses

                                                                                                   In RMB

                     Items              Amount of this period              Amount of last period

 Interest expenses                                     282,653,629.93                     264,407,174.38

 Deposit interest income(-)                          -64,220,887.86                     -50,618,519.70

 Exchange Income and loss(Gain-)                         371,334.74                      -1,815,160.91


 Bank commission charge                                    628,831.70                         881,757.74

 Other                                                   2,281,404.25                       3,327,123.37


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 2021 Annual Report


  Total                                                               221,714,312.76                              216,182,374.88


44.Other gains

                                                                                                                            In RMB

                              Items                                   Amount of this period             Amount of last period

  Government Subsidy-Cancel the Special Subsidy for
                                                                                  13,567,476.53                    11,306,230.36
  Provincial Toll Station Project of Expressway
  Government subsidy- Stable job subsidies                                         1,198,029.54                       516,603.84

  Government subsidy-Enterprises subsidies                                          339,000.00

  Government subsidy-- Enterprises with industrial training
                                                                                   1,243,500.00
  subsidies

  Maternity allowance                                                               579,838.26                        440,077.14

  Veterans' VAT reduction and exemption                                             284,718.89                        326,184.25

  Withholding and remitting enterprise prepaid income tax fees                      343,853.85                        195,477.50

  Veterans' VAT reduction and exemption                                                43,938.09                       34,836.75

  Total                                                                           17,600,355.16                    12,819,409.84


 45. Investment income

                                                                                                                            In RMB

                      Items                               Amount of this period                     Amount of last period

  Long-term equity investment income by
                                                                         227,004,893.87                           114,517,784.14
  equity method

  Dividends earned during the holding period
                                                                          50,056,360.49                            50,785,213.04
  on investments in other equity instrument

  Interest income on entrusted loans                                                                                6,063,838.37

  Total                                                                  277,061,254.36                           171,366,835.55


 46. Credit impairment losses

                                                                                                                            In RMB

                   Items                               Amount of this period                       Amount of last period

  Impairment losses on accounts
                                                                       -2,028,919.47                               -2,360,980.71
  receivable

  Impairment losses on other receivable                                    93,582.00                                  -96,827.80

  Total                                                                -1,935,337.47                               -2,457,808.51




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47. Asset impairment loss

                                                                                                                         In RMB

                        Items                        Amount of this period                     Amount of last period

 Loss on impairment of fixed assets                                  -2,889,394.16                             -1,231,918.94

                        Total                                        -2,889,394.16                             -1,231,918.94


48.Assets disposal income

                                                                                                                         In RMB

                    Source                           Amount of this period                     Amount of last period

 Non-current assets disposal gains                                    3,017,370.44

 Including:Income from disposal of
                                                                      3,017,370.44
 Fixed assets

 Income from disposal of Intangible
 assets

 Total                                                                3,017,370.44


49. Non-Operation income

                                                                                                                         In RMB

                                                                                                  Recorded in the amount of
                Items                 Amount of this period         Amount of last period        the non-recurring gains and
                                                                                                           losses

 Non-monetary asset exchange
 gain

 Gains from damage and
 scrapping of non current                           371,681.42                                                      371,681.42
 assets

 Receive assets free of charge                    6,119,104.00                                                  6,119,104.00

 Insurance claim income                           5,020,697.37                  3,538,886.07                    5,020,697.37

 Road property claim income                       3,436,760.97                  2,858,053.10                    3,436,760.97

 Relocation compensation
                                                  1,714,382.93                  3,353,085.30                    1,714,382.93
 income

 Compensation for
 construction land and ground                       186,642.86                  1,210,712.86                        186,642.86
 attachments

 Other                                            1,126,225.63                    789,104.03                    1,126,225.63

 Total                                           17,975,495.18                 11,749,841.36                   17,975,495.18


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 2021 Annual Report

 50. Non-Operation expense

                                                                                                                               In RMB

                                                                                                      The amount of non-operating
                Items
                                    Amount of current period          Amount of previous period             gains & losses

  Road rehabilitation
                                                    7,821,358.32                    5,167,239.28                     7,821,358.32
  expenditure

  Loss & abandonment of
                                                        753,220.25                 13,637,658.30                       753,220.25
  non-current assets

  Expenditure for public
                                                  12,000,000.00                                                     12,000,000.00
  welfare donations

  Fine                                                      153.62                    711,701.58                              153.62

  Relocation compensation
                                                                                      405,100.00
  income

  Other                                             1,908,653.45                      721,233.61                     1,908,653.45

  Total                                           22,483,385.64                    20,642,932.77                    22,483,385.64

 Other note:


51. Income tax expense

 (1) Lists of income tax expense

                                                                                                                               In RMB

                        Items                           Amount of current period                  Amount of previous period

  Current income tax expense                                            661,629,051.42                             453,788,495.42

  Deferred income tax expense                                            73,735,963.14                              37,621,377.52

  Total                                                                 735,365,014.56                             491,409,872.94


 (2) Adjustment process of accounting profit and income tax expense

                                                                                                                               In RMB

                                Items                                                Amount of current period

  Total                                                                                                          3,162,149,714.84

  Current income tax expense accounted by tax and relevant
                                                                                                                   790,537,428.72
  regulations

  Influence of income tax before adjustment                                                                          3,731,767.49

  Influence of non taxable income                                                                                  -69,102,108.03

  Impact of non-deductible costs, expenses and losses                                                               12,850,155.96

  Effect of deductible losses from using previously unrecognized                                                      -199,405.13


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 2021 Annual Report


  deferred income tax assets

  The current period does not affect the deferred tax assets
                                                                                                                 -2,452,824.44
  recognized deductible temporary differences or deductible loss

  Income tax expense                                                                                            735,365,014.56

 Other note


 52.Items of Cash flow statement

 (1)Other cash received from business operation

                                                                                                                           In RMB

                            Items                               Amount of current period         Amount of previous period

  Interest income                                                              64,220,887.86                     50,618,519.70

  Unit current account                                                         62,196,377.10                     75,997,867.92

  Net toll income received by networked toll clearing                                                             2,387,993.96

  Cancellation of Expressway Provincial Toll Station
                                                                                                                 55,851,800.00
  Project

  Total                                                                       126,417,264.96                    184,856,181.58

 Note:


(2)Other cash paid related to operating activities

                                                                                                                           In RMB

                    Items                               Amount of current period               Amount of previous period

  Management expense                                                     37,053,815.32                           47,721,287.38

  Unit current account                                                   45,656,506.01                           37,898,902.95

  Donation                                                               12,000,000.00

  Total                                                                  94,710,321.33                           85,620,190.33


 (3).Cash receivable related to other Financing activities

                                                                                                                           In RMB

                    Items                               Amount of current period               Amount of previous period

  Government infrastructure investment
                                                                        140,145,195.50                           89,083,500.00
  subsidies

  Total                                                                 140,145,195.50                           89,083,500.00




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2021 Annual Report


(4)Cash paid related to other Financing activities

                                                                                                                                 In RMB

                      Items                            Amount of current period                     Amount of previous period

 Issuance fee of medium-term notes                                          776,869.75                                 1,122,177.00

 Purchase of 21% equity consideration of
                                                                      1,221,839,292.00                             1,271,710,284.00
 Guanghui

 Cash paid for the lease liabilities                                      8,134,723.18

 Total                                                                1,230,750,884.93                             1,272,832,461.00


53. Supplement Information for cash flow statement

(1)Supplement Information for cash flow statement
                                                                                                                                 In RMB


                                  Supplement Information                                 Amount of current        Amount of previous

                                                                                         period                         period

  I. Adjusting net profit to cash flow from operating activities                                    --                    --


  Net profit                                                                               2,426,784,700.28         1,364,385,006.07

      Add:Credit loss preparation                                                                1,935,337.47          2,457,808.51

  Impairment loss provision of assets                                                             2,889,394.16          1,231,918.94

  Depreciation of fixed assets, oil and gas assets and consumable biological assets        1,229,561,027.39         1,009,578,943.06

               Depreciation of Use right assets                                                   9,914,956.52

  Amortization of intangible assets                                                           36,587,254.42            26,319,338.62

  Amortization of Long-term deferred expenses                                                       350,625.00            457,642.44

  Loss on disposal of fixed assets, intangible assets and other long-term deferred
                                                                                                  -3,017,370.44
  assets

  Fixed assets scrap loss                                                                           381,538.83         13,637,658.30

           Loss on fair value changes

  Financial cost                                                                             283,024,964.67           265,092,013.47


  Loss on investment                                                                        -277,061,254.36          -171,366,835.55


  Decrease of deferred income tax assets                                                     105,511,533.12            54,738,687.74


  Increased of deferred income tax liabilities                                               -71,180,773.10           -41,819,079.34

  Decrease of inventories                                                                          -586,318.60             57,922.16

  Decease of operating receivables                                                                8,323,698.17        136,745,935.47


232
2021 Annual Report



                                Supplement Information                                       Amount of current         Amount of previous

                                                                                             period                          period

  Increased of operating Payable                                                                 -83,674,592.37            -25,329,718.84

           Other

  Net cash flows arising from operating activities                                             3,669,744,721.16          2,636,187,241.05

  II. Significant investment and financing activities that without cash flows:                        --                       --

      Conversion of debt into capital

      Convertible corporate bonds maturing within one year

      Financing of fixed assets leased

  3.Movement of cash and cash equivalents:                                                          --                       --


  Ending balance of cash                                                                       2,955,183,190.55          2,846,176,803.89

  Less: Beginning balance of cash equivalents                                                  2,846,176,803.89          3,052,977,164.15

         Add:End balance of cash equivalents

      Less: Beginning balance of cash equivalents

      Net increase of cash and cash equivalent                                                   109,006,386.66           -206,800,360.26


(2)Composition of cash and cash equivalents
                                                                                                                                      In RMB

                     Items                                  Balance in year-end                       Balance in year-Beginning

                                                                        2,955,183,190.55                                2,846,176,803.89
 Cash

                                                                                 38,214.02                                      54,482.68
 Of which: Cash in stock
 Bank savings could be used at any time                                 2,954,629,744.81                                2,845,600,152.23

 Other monetary capital could be used at
                                                                              515,231.72                                       522,168.98
 any time

 Balance of cash and cash equivalents at
                                                                        2,955,183,190.55                                2,846,176,803.89
 the period end


54. 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 the fund
 Monetary fund                                                               1,221,200.00
                                                                                              escrow account

 Total                                                                       1,221,200.00                         --


233
 2021 Annual Report


 Other note:

 VIII. Equity in other entities

 1. Equity in subsidiary

 (1) The structure of the enterprise group
                                    Main                                                   Shareholding Ratio
                                    Places       Registrat                                           (%)
        Name of Subsidiary            of              ion         Nature of Business                                       Obtaining Method
                                   Operati         Place                                    direct         indirect
                                     on
                                                                                                                        Under the same
                                   Guang         Guangzh         Expressway
Guangfo Expressway Co., Ltd.                                                                75.00%                      control business
                                   zhou          ou              Management
                                                                                                                        combination

Guangdong Expressway Technology    Guang         Guangzh         Technology
                                                                                           100.00%                      Investment
Investment Co., Ltd.               zhou          ou              investment consulting

                                                                                                                        Under the same
Guangdong Guanghui Expressway       Guang        Guangzh         Expressway
                                                                                            51.00%                      control business
Co., Ltd.                                                        Management
                                    zhou              ou
                                                                                                                        combination

                                                                                                                        Under the same
Jingzhu Expressway Guangzhu        Zhongs        Guangzh         Expressway
                                                                                            75.00%                      control business
 Section Co.,Ltd.                  han           ou              Management
                                                                                                                        combination

Yuegao Capital                     Guang         Guangzh         Investment
                                                                                           100.00%                      Investment
Investment(Guangzhou)Co., Ltd.     zhou          ou              management

 Notes: holding proportion in subsidiary different from voting proportion: None
 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: None
 Significant structure entities and controlling basis in the scope of combination: None
 Basis of determine whether the Company is the agent or the principal: None
       Other note:Yuegao Capital Investment(Hengqin)Co., Ltd. was renamed as Yuegao Capital
 Investment(Guangzhou)Co., Ltd. in June 16, 2021.

   (2) Important Non-wholly-owned Subsidiary
                                                                                                                                      In RMB

                                   Shareholdin
                                                        Profit or Loss Owned        Dividends Distributed             Equity Balance of the
                                    g Ratio of
                                                             by the Minority             to the Minority              Minority Shareholders
            Name of Subsidiary       Minority
                                                            Shareholders in the        Shareholders in the              in the End of the
                                   Shareholder
                                                              Current Period             Current Period                      Period
                                         s (%)

  Guangfo Expressway Co., Ltd.            25.00%                  54,196,234.64              37,982,900.91                  131,314,707.02



 234
2021 Annual Report


 Guangdong Guanghui
                                     49.00%          544,666,628.57        643,014,520.46   1,916,561,080.37
 Expressway Co., Ltd.

 Jingzhu Expressway Guangzhu
                                     25.00%          127,514,855.08         74,680,354.93    290,675,385.57
 Section Co.,Ltd.

Holding proportion of minority shareholder in subsidiary different from voting proportion
None




235
2021 Annual Report
      (3) The main financial information of significant not wholly owned subsidiary

                                                                                                                                                                                        In RMB

                                                                                                    Year-end balance
               Name
                                       Current assets             Non- current assets     Total assets         Current Liabilities      Non- current liabilities           Total liabilities

 Guangfo Expressway Co., Ltd.            539,508,987.55                 17,935,998.96      557,444,986.51               32,186,158.45                                           32,186,158.45

 Guangdong Guanghui Expressway
                                        1,106,203,367.94             3,200,915,171.31     4,307,118,539.25             199,770,257.66          195,999,137.99                 395,769,395.65
 Co., Ltd.

 Jingzhu Expressway Guangzhu
                                              78,321,084.79          2,167,316,422.40     2,245,637,507.19             455,558,150.91          627,377,814.00               1,082,935,964.91
 Section Co.,Ltd.



                                                                                                 Year-beginning balance
               Name                                                                                                                          Non- current
                                       Current assets             Non- current assets     Total assets         Current Liabilities                                         Total liabilities
                                                                                                                                               liabilities

 Guangfo Expressway Co., Ltd.            475,293,044.67                 55,900,968.26      531,194,012.93               67,267,992.50             3,520,527.29                  70,788,519.79

 Guangdong Guanghui Expressway
                                        1,066,412,539.00             3,451,858,995.85     4,518,271,534.85             305,774,405.46          240,583,197.83                  546,357,603.29
 Co., Ltd.

 Jingzhu Expressway Guangzhu
                                          118,177,442.22             2,272,633,604.38     2,390,811,046.60             470,629,108.30          968,818,396.62                1,439,447,504.92
 Section Co.,Ltd.



                                                                                                                                                                                        In RMB

                                                        Amount of current period                                                          Amount of previous period

                                                                                Total      Cash flows from                                                         Total            Cash flows from
       Name
                            Business income          Net profit           Comprehensive       operating        Business income           Net profit          Comprehensive              operating
                                                                              income           activities                                                       income                   activities


236
     2021 Annual Report
Guangfo Expressway Co., Ltd.    452,189,259.01     216,784,938.57     216,784,938.57     173,090,933.86     333,647,719.92    155,032,248.63   155,032,248.63    285,644,355.99

Guangdong Guanghui
                               2,153,255,526.58   1,111,564,548.10   1,111,564,548.10   1,481,786,551.53   1,616,980,738.55   780,305,035.07   780,305,035.07   1,173,180,438.28
Expressway Co., Ltd.

Jingzhu Expressway Guangzhu
                               1,173,205,770.48    510,059,420.32     510,059,420.32     779,998,964.52     812,354,042.82    301,738,807.80   301,738,807.80    740,551,536.06
Section Co.,Ltd.




     237
           2021 Annual Report


           (4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
           None
           (5) Provide financial support or other support for structure entities incorporate into the scope of
           consolidated financial statements
           None
           Other Note:


           2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary

           (1) Significant joint venture arrangement or associated enterprise
           None
           (2)Affect of the transaction on the minority equity and owner's equity attributable to the parent company
           None

       3. Equity in joint venture arrangement or associated enterprise

           (1) Significant joint venture arrangement or associated enterprise
                                                                                                   Proportion          Accounting treatment of
                                               Main
                                                          Registration                                                 the investment of joint
                   Name                      operating                     Business nature                Indirectl
                                                               place                           Directly                 venture or associated
                                               place                                                         y
                                                                                                                             enterprise


                                           Zhaoqing,      Zhaoqing,          Expressway
Zhaoqing Yuezhao Highway Co., Ltd.                                                             25.00%                 Equity method
                                                                            Management
                                           Guangdong      Guangdong

                                                                             Expressway
Shenzhen Huiyan Expressway Co., Ltd.       Shenzhen       Shenzhen                             33.33%                 Equity method
                                                                            Management

Guangdong Jiangzhong Expressway Co.,                      Zhongshan          Expressway
                                           Zhongshan ,                                         15.00%                 Equity method
Ltd.                                                       ,                Management

                                                                         Expressway
Ganzhou kangda Expressway Co., Ltd.        Gangzhou       Ganzhou                              30.00%                 Equity method
                                                                         Management

                                                                         Expressway
Ganzhou Gankang Expressway Co., Ltd.       Gangzhou       Ganzhou                              30.00%                 Equity method
                                                                         Management

Guangdong Yuepu Small Refinancing                                        Hand all kinds of
                                            Guangzhou      Guangzhou                           15.48%                 Equity method
Co., Ltd                                                                 small loans

Guangyuan Securities Co., Ltd.             Hefei          Hefei          Security business      2.37%                 Equity method

                                                                         Research and
Hunan Lianzhi Technology Co., Ltd.         Changsha       Changsha       experimental                     10.10%      Equity method
                                                                         development

SPIC Yuetong Qiyuan Chip Power
                                            Guangzhou      Guangzhou     New energy services                5.00%     Equity method
Technology Co., Ltd.

           Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

           238
2021 Annual Report


None
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., Guangyuan Securities Co., Ltd. , Yuepu Small Refinancing Co.,
Ltd., Hunan Lianzhi Technology Co., Ltd. and SPIC Yuetong Qiyuan Chip Power Technology Co.,
Ltd. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and oper
ating decisions, and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture

None

 (3) Main financial information of significant associated enterprise

                                                                                                                           In RMB

                                               Year-end balance/ Amount of current       Year-beginning balance/ Amount of
                                                             period                               previous period

                                                  Guoyuan Securities Co., Ltd.              Guoyuan Securities Co., Ltd.

 Total of assets                                                 114,683,858,604.22                           90,890,416,303.36

 Shareholders’ equity attributable to
                                                                     32,259,179,385.22                        30,841,760,973.08
 shareholders of the parent

 Pro rata share of the net assets calculated                           764,993,833.19                           731,381,188.20

 --Goodwill                                                            207,095,632.54                           207,095,632.54

 The book value of equity investments in
                                                                       972,089,465.73                           938,476,820.74
 joint ventures

 Fair value of equity investment of
 associated enterprises with open                                      796,815,881.40                           927,203,934.72
 quotation

 Buinsess incme                                                       6,076,303,560.25                         2,115,128,481.79

 Net profit                                                           1,871,872,525.11                          617,902,373.05

 Other comprehensive income                                            410,531,198.59                            99,219,704.73

 Total comprehensive income                                           2,282,403,723.70                          717,122,077.78

 Dividends received from associates duri
                                                                        20,696,516.40                             11,940,297.90
 ng the year


 (4) Summary financial information of insignificant joint venture or associated enterprise

                                                                                                                           In RMB

                                               Year-end balance/ Amount of current       Year-beginning balance/ Amount of
                                                              period                              previous period

 Joint venture:                                                --                                       --

 Total amount of the pro rata calculation of                    --                                       --


239
2021 Annual Report


 the following items

 Associated enterprise:                                    --                                      --

 Total book value of the investment                              1,655,041,215.52                        1,444,450,534.90

 Total amount of the pro rata calculation of
                                                            --                                      --
 the following--Net profit ms

 -Nit profit                                                      182,411,820.30                           82,311,895.95

 --Total comprehensive income                                     182,411,820.30                           82,311,895.95

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
None

(6) The excess loss of joint venture or associated enterprise

None

(7) The unrecognized commitment related to joint venture investment
None

(8) Contingent liabilities related to joint venture or associated enterprise investment
None

4. Significant common operation

None

5. Equity of structure entity not including in the scope of consolidated financial statements

None
IX. Risks Related to Financial Instruments

The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.
      The targets and policies of risk management
      The target of risk management is to obtain the proper balance between the risk and benefit, to reduce the
negative impact that is caused by the risk of the Company to the lowest level, and to maximize the benefits of
shareholders and other equity investors. Based on the targets of risk management, the basic strategy of the
Company’s risk management is to identify and analyze the risks which are faced by the Company, establish
suitable risk tolerance baseline and proceed the risk management, and supervise a variety of risks timely and
reliably, and control the risks within a limited range.
      1.Market risk
      (1)Foreign exchange risk


240
2021 Annual Report


      Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign exchange risk is
mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder dividends, other major
business activities of our Company are settled in RMB. During the reporting period, due to the short credit period
of the Company's income and expenditure related to foreign currency, it was not affected by foreign exchange risk.
       (2)Interest rate risk
       The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly
related to floating rate bank borrowings. The Company's policy is to maintain the floating interest rate of these
borrowings, and at the same time to reasonably reduce the risk of interest rate fluctuation by shortening the term of
a single loan and specifically agreeing on prepayment terms.
       (3)Other price risk
       The investments held by the Company are classified as financial assets measured at fair value and whose
changes are included in other comprehensive income and are measured at fair value on the balance sheet date.
Therefore, the Company bears the risk of changes in the securities market.
       2.Credit risk
       As of June 30, 2021, the largest credit risk exposure that may cause financial losses of the Company mainly
comes from the loss of financial assets of the Company caused by the failure of the other party to perform its
obligations.
       In order to reduce credit risk, the Company only deals with recognized and reputable customers. In addition,
the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate
bad debt provisions are made for unrecoverable amounts. Consequently, the Company's management believes that
the Company's credit risk has been greatly reduced.
      The Group's working capital is deposited in banks with higher credit rating, so the credit risk of working
capital is relatively low.
      Financial assets overdue or impaired;
      (1) Aging analysis of financial assets with overdue impairment: Not existed
      (2) Analysis of financial assets that have suffered single impairment: Refer to "4, Other Receivables" in VII
and "10, Investment in Other Equity Instruments" in VII of this section for details.
       3.Liquidity risk
       When managing liquidity risks, the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.

X. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

                                                                                                                       In RMB

                                                                        Closing fair value

                                        Fir value              Fir value                Fir value
              Items
                                   measurement items      measurement items        measurement items           Total
                                        at level 1             at level 2               at level 3

 I. Consistent fair value
                                            --                     --                        --                  --
 measurement

241
     2021 Annual Report


      (3)Other equity instrument
                                              781,046,414.08                                   746,129,411.97        1,527,175,826.05
      investment

      II. Non –persistent measure                --                      --                         --                   --


      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, 2021 of 3.32 yuan, the final calculation of fair value was
     781,046,414.08 yuan.

     3. Fair value of financial assets and liabilities not measured at fair value,The valuation techniques adopted and the
qualitative and quantitative information of important parameters for continuous and non-continuous level 2 fair value
measurement items

             Items             Fair value as of December 31,                   Valuation technology                  Unobservable input
                                           2021                                                                            value
     Investment in equity
     instruments
     Unlisted equity                           746,129,411.97 Enjoy the book net assets share of the invested unit
     investment                                                according to the shareholding ratio
          The financial instrument listed in the tier III is the equity investment of Guangdong Guangle Expressway Co.,
     Ltd. held by the Company. At the end of the period, the fair value of the financial instrument is determined by
     calculating the book net assets of the investee according to the shareholding ratio.

     4. Fair value of financial assets and liabilities not measured at fair value


           The Company's financial assets and liabilities measured in amortized cost mainly include: accounts receivable,

     other receivables, contract assets, short-term loans, accounts payable, other payables, non-current liabilities due

     within one year, long-term loans, bonds payable and long-term payables.

           There is no significant difference between the book value of financial assets and liabilities not measured at

     fair value and the fair value.




     242
 2021 Annual Report


XI. Related parties and related-party transactions

 1. Parent company information of the enterprise
                                                                                                The parent             The parent
                                Register
                                                                            Redistricte       company of the         company of the
             Name                  ed                Nature
                                                                             d capital          Company's            Company’s vote
                                 address
                                                                                             shareholding ratio           ratio

                                           Equity management,
  Guangdong communication       Guangzh    traffic infrastructure           26.8 billion
                                                                                                       24.56%                 50.12%
  Group Co., Ltd                 ou        construction and railway         yuan
                                           project operation


 Notes :

 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, 2021,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.

 2.Subsidiaries of the Company

 Subsidiaries of this enterprise, see VIII(3) the rights of other entity

3. Information on the joint ventures and associated enterprises of the Company

       Details refer to the VIII-3, Interests in joint ventures or associates

 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:

                            Name                                                         Relation with the Company


  Shenzhen Huiyan Expressway Co., Ltd.                              Associated enterprises of the Company

  Zhaoqing Yuezhao Highway Co., Ltd.                                 Associated enterprises of the Company

  Ganzhou Kangda Expressway Co., Ltd.                               Associated enterprises of the Company


  Ganzhou Gankang Expressway Co., Ltd.                              Associated enterprises of the Company


  Guangdong Jiangzhong Expressway Co., Ltd.                         Associated enterprises of the Company


  Guangdong Yuepu Small Refinancing Co., Ltd                        Associated enterprises of the Company



 243
 2021 Annual Report


  Hunan Lianke Technology Co., Ltd.                         Associated enterprises of the Company

4. Other Related parties


                            Name                                              Relation with the 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 Litong Property Investment Co., Ltd.             Fully owned subsidiary of the parent company

  Guangdong Gaoen Expressway 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 Guangle Expressway Co., Ltd.                     Fully owned subsidiary of the parent company

  Guangdong Guangzhu West Line 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 Jiaotong 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 Property Investment Co., Ltd.             Fully owned subsidiary of the parent company

  Guangdong Union Electron Service Information technology
                                                             Fully owned subsidiary of the parent company
  Co., ltd.

  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

  Guangdong Maozhan Expressway Co., Ltd.                     Fully owned subsidiary of the parent company

  Guangdong Shanfen Expressway Co., ltd.                     Fully owned subsidiary of the parent company

  Guangdong Provincial Freeway Co.,Ltd.                      Fully owned subsidiary of the parent company

  Guangdong Highway Construction Co., Ltd.                   Fully owned subsidiary of the parent company

  Guangdong Communication Group Finance Co., Ltd.            Fully owned subsidiary of the parent company

  Guangdong Read & Bridge Construction Development Co.,
                                                             Fully owned subsidiary of the parent company
  Ltd.

  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


 244
 2021 Annual Report


                            Name                                              Relation with the Company

  Guangdong Xinyue Traffic Investment Co., Ltd.              Fully owned subsidiary of the parent company

  Guangdong Yangmao Expressway Co., Ltd.                     Fully owned subsidiary of the parent company

  Guangdong Yuegan Expressway Co., Ltd.                      Fully owned subsidiary of the parent company

  Guangdong Yueyun Traffic Co., Ltd.                         Fully owned subsidiary of the parent company

  Guangdong Yueyun Traffic Rescue 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 Traffic Technology Co., Ltd.              Fully owned subsidiary of the parent company

  Guangzhou Xinyue Asphalt Co., Ltd.                         Fully owned subsidiary of the parent company

  Guangzhou Yueyun Traffic Co., Ltd.                         Fully owned subsidiary of the parent company

  Yunfo Guangyun Expressway Co., Ltd                         Fully owned subsidiary of the parent company

  Guangdong Tianlu New Energy Investment Co., Ltd.           Fully owned subsidiary of the parent company

  Guangdong Traffic Development Co., Ltd.                    Fully owned subsidiary of the parent company

  Guangdong Communication Planning & Design Institute Co.,
                                                             Shares of parent company
  Ltd.

  Guangzhongjiang Expressway Project Management Dept         Managed by the parent company

  Hongkong- Zhuhai-Macao Connection line management center   Managed by the parent company

  Guangzhou Aitesi Communication equipment Co., Ltd.         Associated enterprises controlled by the same parent company

  Jiangmen Jianghe Expressway Co., Ltd.                      Associated enterprises controlled by the same parent company

  Guangdong Shenshan Expressway Co., Ltd.                    Associated enterprises controlled by the same parent company

  Guangdong Jingzhu Expressway Guangzhu North Section Co.,
                                                             Associated enterprises controlled by the same parent company
  Ltd.

  Foshan Guangshan Expressway Co., Ltd.                      Associated enterprises controlled by the same parent company

  Guangdong Feida Traffic Engineering Co., Ltd.              Associated enterprises controlled by the same parent company

  Poly Changda Engineering Co., Ltd.                         Shares of parent company

  Guangdong Changda Road Conservation Co., Ltd.              Shares of parent company

  Guangdong Road Network Digital Media Information
                                                             Joint venture of parent company
  Technology Co. Ltd

  Guangdong Xiangfei Highway Engineering Supervision Co.,
                                                             Subsidiary of the parent company
  Ltd

  Guangdong Jiangzhao Expressway Management Center           Managed by the parent company

  Guangdong Nanyue Traffic Qingyun Expressway Management
                                                             Managed by the parent company
  Center

5. List of related-party transactions


 245
 2021 Annual Report


 (1)Information on acquisition of goods and reception of labor service

 Acquisition of goods and reception of labor service


                                                                                                                In RMB


                                                                    Amount of       Amount
                                                                                               Over the
                                            Content of related     current period      of      trading    Amount of last
                Related parties
                                                transaction                                    limit or       period
                                                                                    previous    not?

                                                                                     period
1.Business cost

Boly Changda Engineering Co., Ltd.         Project fund, service    25,299,515.00                           43,663,945.00

Guangdong Union electronic services co.,
                                           Service                  25,131,901.47                           22,140,969.83
Ltd.

Guangdong Xinyue Asphalt Co., Ltd.         Project fund              8,889,414.00

Guangdong Feida Traffic Engineering Co.,
                                           Maintenance               7,773,274.29                            7,314,621.02
Ltd.

Guangzhou Xinyue Asphalt Co., Ltd.         Purchase                  7,587,872.00                           13,627,554.77

Guangdong East Thinking Management         Maintenance, Project
                                                                     6,652,840.00                           10,948,746.94
Technology Development Co., Ltd.           funds

                                           Maintenance, Project
Guangdong Lulutong Co., Ltd.                                         5,775,057.23                           36,627,747.85
                                           funds

Guangdong Hualu Traffic Technology Co.,
                                           Project                   4,512,951.46                            4,869,113.63
Ltd.

Guangdong Xinyue traffic Investment Co.,   Maintenance, Project
                                                                     4,366,423.49                            5,947,406.32
Ltd.                                       funds

Guangdong Humen Bridge Co., Ltd.           Service                   3,686,679.96                              528,929.83

Guangdong Yueyun Traffic Rescue Co.,
                                           Rescue service fee        3,343,600.00
Ltd.

Guangdong Litong Technology Investment
                                           Maintenance               1,713,971.99                            1,424,414.80
Co., Ltd.

Guangdong Communication Planning &         Project labour
                                                                     1,156,607.57                            8,136,858.45
Design Institute Co., Ltd.                 service

Guangdong Tongyi Expressway Service
                                           Service                   1,050,181.10                              604,826.78
Area Co., Ltd

Guangzhou Aitesi Communication
                                           Project                     993,635.40                            1,771,681.42
Equipment Co., Ltd.



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                                                                   Amount of       Amount
                                                                                              Over the
                                            Content of related    current period      of      trading    Amount of last
                Related parties
                                                transaction                                   limit or       period
                                                                                   previous    not?

                                                                                    period
Hunan Lianzhi Monitoring Technology
                                           Project                    850,700.00
Co., Ltd

Guangdong East Thinking Management         Maintenance,
                                                                      687,200.00                              282,800.00
Technology Development Co., Ltd.           Service

Guangdong Yueyun Traffic Co., Ltd.         Transportation             556,127.40

Guangdong Union electronic services co.,          Service
                                                                       38,603.77
Ltd.

Guangdong Expressway Media Co., Ltd.       Advertising                                                        128,431.80

Guangdong Jingzhu Expressway
                                           Service                                                            107,017.44
Guangzhu North Section Co., Ltd.

Subtotal                                                          110,066,556.13                         158,125,065.88

2.Financial cost

Guangdong Communication Group              Borrowing Interest
                                                                    6,494,583.35                            2,240,000.00
Finance Co., Ltd.                          expresses

Guangdong Communication Group              Deposit interest
                                                                  -39,941,667.46                          -14,429,931.26
Finance Co., Ltd.                          income

Guangdong Communication Group
                                           Commission charge           32,273.93                               57,483.84
Finance Co., Ltd.

Guangdong Jiangzhong Expressway Co.,       Principal Loan
                                                                       27,405.00                            1,432,890.00
Ltd.                                       Interest Expenditure

Subtotal                                                          -33,387,405.18                          -10,699,557.42

3.Administrative expenses

Guangdong Litong Property Investment
                                           Management Fee           2,085,605.68                            2,787,764.02
Co., Ltd.

Guangdong East Thinking Management         Maintenance,
                                                                    1,654,473.11                            1,048,608.53
Technology Development Co., Ltd.           Service

Guangdong Tongyi Expressway Service
                                           Service                     57,034.88                               57,955.00
Area Co., Ltd

Guangdong Expressway Media Co., Ltd.       Advertising                 17,556.00

Guangdong Lulutong Co., Ltd.               Maintenance charges                                                 38,400.00

Subtotal                                                            3,814,669.67                            3,932,727.55



 247
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                                                                  Amount of       Amount
                                                                                             Over the
                                            Content of related   current period      of      trading    Amount of last
                 Related parties
                                                transaction                                  limit or       period
                                                                                  previous    not?

                                                                                   period
4.R & D

                                           Scientific research
Guangdong Communication Group                                      2,962,500.00
                                           project

Hunan Lianzhi Monitoring Technology        Scientific research
                                                                     850,700.00
Co., Ltd                                   project

Subtotal                                                           3,813,200.00

5.Intangible assets

Guangdong East Thinking Management
                                           Purchase assets                                                   231,017.70
Technology Development Co., Ltd.

Subtotal                                                                                                     231,017.70

6.Fixed assets

Guangdong Hualu Traffic Technology Co.,
                                           Purchase assets           678,764.67                            1,263,639.96
Ltd.

Guangdong Litong Technology Investment
                                           Purchase assets           675,150.00
Co., Ltd.

Guangdong East Thinking Management
                                           Purchase assets           598,500.00                            2,939,612.48
Technology Development Co., Ltd.

Guangdong Feida Traffic Engineering Co.,
                                           Purchase assets           400,013.00                              255,165.00
Ltd.

Guangdong Communication Planning &
                                           Purchase assets                                                 1,141,056.00
Design Institute Co., Ltd.

Poly Changda Engineering Co., Ltd.         Purchase assets                                                   803,433.00

Guangdong Lulutong Co., Ltd.               Purchase assets                                                   774,003.00

Guangdong Xinyue Traffic Investment
                                           Purchase assets                                                 8,327,087.05
Co., Ltd.

Subtotal                                                           2,352,427.67                           15,503,996.49

7. Construction in process

Poly Changda Engineering Co., Ltd.         Purchase assets       275,143,275.83                          174,118,816.33

Guangdong Xinyue Traffic Investment
                                           Purchase assets        78,020,865.98                            6,093,672.62
Co., Ltd.

Guangdong Communication Planning &         Purchase assets        15,047,972.50                            6,549,774.00



 248
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                                                                   Amount of       Amount
                                                                                              Over the
                                            Content of related    current period      of      trading    Amount of last
              Related parties
                                                transaction                                   limit or       period
                                                                                   previous    not?

                                                                                    period
Design Institute Co., Ltd.

Guangdong Hualu Traffic Technology Co.,
                                           Purchase assets         12,390,585.09                            4,965,661.48
Ltd.

Guangdong Feida Traffic Engineering Co.,
                                           Purchase assets         10,460,593.04                            4,456,756.00
Ltd.

Guangdong East Thinking Management
                                           Purchase assets          1,461,612.00
Technology Development Co., Ltd.

Guangdong Lulutong Co., Ltd.               Purchase assets            364,490.00

Guangdong Xiangfei Highway
                                           Purchase assets            208,829.00                              188,644.00
Engineering Supervision Co., Ltd

Guangdong Litong Technology Investment
                                           Purchase assets            185,000.00
Co., Ltd.

Guangdong Jiaoke Testing Co., Ltd.         Purchase assets             88,880.00                            4,924,163.50

Guangdong Highway Construction Co.,
                                           Purchase assets                                                 32,720,641.48
Ltd.

Guangzhou Xinyue Asphalt Co., Ltd.         Purchase assets                                                  6,094,415.27

Subtotal                                                          393,372,103.44                          240,112,544.68

8.Non-operating expenses

                                           Expenses for civil
Poly Changda Engineering Co., Ltd.         engineering              3,207,485.00
                                           restoration

Guangdong Xinyue Traffic Investment
                                           Sporadic repair fees       255,719.00
Co., Ltd.

Guangdong Hualu Traffic Technology Co.,
                                           Verification fee             5,766.55
Ltd.

Guangdong Lulutong Co., Ltd.               Maintenance                                                        222,410.00

Guangdong Litong Technology Investment
                                           Equipment                                                           11,000.00
Co., Ltd.

Subtotal                                                            3,468,970.55                              233,410.00

 Related transactions on sale goods and receiving services
                                                                                                              In RMB




 249
2021 Annual Report



                                                                                Amount of current          Amount of
                Related party                               Content

                                                                                period                   previous period
 1.Business income

 Jingzhu Expressway Guangzhu North          Commission management
                                                                                         21,805,771.37      19,593,901.34
 section Co., Ltd.                          fee

 Guangdong Provincial Freeway Co.,Ltd.      Project fund                                  4,396,237.98       4,382,576.33

 Guangdong Feida Traffic Engineering Co.,
                                            CPC card sales revenue                        3,954,609.41       2,621,638.92
 Ltd

                                            Salary income and testing fee for
 Zhaoqing Yuezhao Highway Co., Ltd.                                                       1,261,683.80       1,044,069.06
                                            expatriate staff

                                            Salary income and testing fee for
 Shenzhen Huiyan Expressway Co., Ltd.                                                     1,045,253.97         944,060.56
                                            expatriate staff

 Guangdong Road Construction Co., Ltd.      Service fee and testing fee                    827,703.80        1,122,174.65

 Ganzhou Gankang Expressway Co., Ltd.       Salaries of expatriate staff                   730,675.94          594,631.40

 Guangdong Jiangzhong Expressway Co.,       Salary income, project payment,
                                                                                           650,904.70          530,534.64
 Ltd.                                       etc

 Ganzhou Kangda Expressway Co., Ltd.        Salaries of expatriate staff                   506,038.55          590,288.43

 Guangdong Guangzhu West Line
                                            Service, test                                  463,391.75          333,636.67
 Expressway Co., Ltd.

 Guangdong Chaohui Expressway Co., Ltd.     Test                                           441,132.07          422,830.19

 Guangdong Road & Bridge Construction
                                            Test                                           384,962.27          394,211.89
 Development Co., Ltd.

 Guangdong Traffic Development Co., Ltd.    Water and electricity                          342,916.53

 Guangdong Kaiyang Expressway Co., Ltd.     Test                                           284,433.96          237,735.85

 Guangdong Guangfo Expressway Co., Ltd.     Test                                           264,622.64          142,641.51

 Guangdong Boda Expressway Co., Ltd.        Test                                           246,626.81          295,325.43

 Guangdong Yangmao Expressway Co., Ltd.     Service and test                               234,951.58          333,264.32

 Guangdong Gufangle Expressway Co., Ltd.    Test                                           224,433.96          222,169.81

 Guangdong Maozhan Expressway Co., Ltd.     Service and test                                79,245.28          277,482.05

 Guangdong Zhaoyang Expressway Co.,
                                            Test                                           197,613.96          150,000.00
 Ltd.

 Poly Changda Engineering Co., Ltd.         water and electricity                          155,736.83          200,087.71

 Guangdong Nanyue Traffic Qingyun
                                            CPC card                                       122,123.89
 Expressway Co., Ltd.

 Guangdong Luoyang Expressway Co., Ltd.     Test                                           107,547.17          107,547.17

 Guangdong Traffic Industry Investment      Test                                           106,132.07           90,566.04

250
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                                                                                      Amount of current               Amount of
                 Related party                                  Content

                                                                                      period                       previous period
 Co., Ltd.

 Guangdong Xinyue Traffic Investment Co.,
                                                CPC card sales revenue                             46,877.88             128,993.83
 Ltd.

 Guangdong Expressway Media Co., Ltd.           water and electricity                              74,814.00               23,053.70

 Yunfu Guangyun Expressway Co., Ltd.            Test                                               71,433.97               65,377.36

 Jiangmen Jianghe Expressway Co., Ltd.          Test                                               63,207.55               57,547.17

 Guangdong Humen Bridge Co., Ltd.               Test                                               38,387.04               33,962.26

 Guangdong Yueyun Traffic Rescue Co.,
                                                water and electricity                              30,917.99
 Ltd.

 Guangdong Litong Technology Investment         Land occupation fee in the
                                                                                                   16,000.00
 Co., Ltd.                                      communication machine room

 Guangdong Yueyun Traffic Co., Ltd.             Test                                                11,320.75              11,320.75

 Guangdong Road Nework Digital Media
                                                Advertising                                                                34,218.33
 Information Technology Co., Ltd.

 Guangshenzhu Expressway Co., Ltd.              Service                                                                     8,407.08

 Guangdong Gaoen Expressway Co., Ltd.           Test                                                                       79,245.28

 Guangdong Union electronic services co.,       ETC publicity and promotion fees,
                                                                                                                        1,479,844.56
 Ltd.                                           agency service fees

 Guangdong Tongyi Expressway Service
                                                water and electricity                                                   1,256,761.24
 Area Co., Ltd

 Subtotal                                                                                       39,187,709.47          37,810,105.53

 2.Non-operating income

 Poly Changda Engineering Co., Ltd.             Construction penalty                              653,302.00               93,754.00

 Guangdong Xinyue Traffic Investment Co.,
                                                Construction penalty                                                        5,300.00
 Ltd.

 Subtotal                                                                                         653,302.00               99,054.00

(2) Information of related lease
The Company was lessor:
                                                                                                                               In RMB

                                                                          The lease income confirmed            The lease income
             Name of lessee                  Category of lease assets
                                                                                 in this year              confirmed in last year

 Guangdong Expressway Media Co.,            Advertising lease
                                                                                        3,988,255.23                    4,598,128.21
 Ltd.

 Guangdong Tongyi Expressway                Service Area Lease                          3,569,880.44                    2,297,830.86


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2021 Annual Report


 Service Area Co., Ltd

 Guangdong Litong Technology
                                           Communication Piping                       1,649,376.50                   1,030,735.24
 Investment Co., Ltd.

 Poly Changda Engineering Co., Ltd.        Equipment leasing                              255,176.06

 Guangdong Litong Technology
                                           Land lease                                                                   37,690.80
 Investment Co., Ltd.

 Total                                                                                9,462,688.23                   7,964,385.11

- The company was lessee:
                                                                                                                            In RMB

                                                                    The lease income confirmed
               Lessor              Category of leased assets                                           Category of leased assets
                                                                           in this year

 Guangdong Litong Real           Office space
                                                                                   9,985,140.68                      9,208,532.51
 Eatate Investment Co., Ltd

 Guangzhou Yueyun Traffic
                                 Car rental fee                                      873,040.00                        187,200.00
 Co., Ltd.

 Zhaoqing Yuezhao Highway
                                 Advertising column lease                            195,288.00                        253,230.00
 Co., Ltd.

 Zhaoqing Yuezhao Highway
                                 Car rental fee                                      109,633.92
 Co., Ltd.

 Guangdong Litong Real           Office space
                                                                                     103,843.13                        102,969.27
 Eatate Investment Co., Ltd

 Total                                                                           11,266,945.73                       9,751,931.78

Note

(3)Inter-bank lending of capital of related parties

                                                                                                                            In RMB

                            Amount borrowed and
         Related party                                      Initial date              Due date                     Notes
                                  loaned

 Borrowed

 Guangdong
 Jiangzhong                                                                                                Reppaid on 8 January
                                   36,000,000.00    November 14,2018           November 13,2023
 Expressway Co                                                                                             2021
 Loaned., Ltd.

 Loaned


(4)Rewards for the key management personnel

                                                                                                                            In RMB




252
2021 Annual Report


                      Items
                                                Amount of current period                                Amount of previous period
 Rewards for the key management
                                                                                      768.26                                        654.15
 personnel


(5) Other significant related-party transactions

√ Applicable □Not applicable
       (1)Deposit business

  Related party               Relationship      Maximum Deposit interest Beginning                The amount of this period       Ending
                                              daily deposit      rate range     balance(10, Total amount Total amount is balance(10,
                                              limit(10,                          000)        for this period withdrawn for     000)
                                                 000)                                           (10,000)      this period
                                                                                                                 (10,000)

Guangdong                                       300,000.00 1.725%-3.57%           103,110.58     1,041,351.20      992,361.43 152,100.35
Communications        Controlled by the
Group Finance Co., same parent company
Ltd

(2)Loan business
      Related party            Relationship                                        Beginning       The amount of this period      Ending
                                                                                    balance       Total loanTotal repayment balance
                                                 Loan limit      Loant interest
                                                                                  (10,000) amount of the amount of the (10,000)
                                                (10,000)        rate range
                                                                                                 current period current period
                                                                                                  (10,000)      (10,000)

Guangdong                                        400,000.00       3.15%-3.75%       20,000.00        20,000.00        20,000.00 20,000.00
Communications         Controlled by the same
Group Finance Co., parent company
Ltd

③Credit extension or other financial services
             Related party                      Relationship              Business type       Total amount(10,000)     Actual amount
                                                                                                                        incurred(10,000)

Guangdong Communications                Controlled by the same          Credit extension                 220,000.00               20,000.00
Group Finance Co., Ltd                  parent company

    The Company respectively signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co., Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 25, 2017; and signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co., Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 22, 2017 respectively, joined the cash pool of Guangdong Communications Group
Finance Co., Ltd.
    Guangdong Guanghui Expressway Co., Ltd respectively signed the "Cash Management Business Cooperation
Agreement" with Guangdong Communications Group Finance Co., Ltd and Agricultural Bank of China Co., Ltd

253
2021 Annual Report


Guangdong Branch on May 19, 2020, joined the cash pool of Guangdong Communications Group Finance Co.,
Ltd.

(6) Other related-party transactions

     -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
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.

     On March 25, 2021, the Sixteenth Meeting of the Ninth Board of Directors of the Company held and
reviewed the Proposal on the Company's Estimated Daily Related Party Transactions in 2021. It is estimated that
the daily related party transactions include the Agreement on the Entrusted Management of the Preliminary Work
of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway signed
by Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section Co., Ltd. and Guangdong Highway Construction Co.,
Ltd., in which the latter is responsible for the main management responsibilities and all the preliminary work
before the approval of the reconstruction and expansion project.

 6. Receivables and payables of related parties

(1)Receivables
                                                                                                           In RMB

                                                             Amount at year end        Amount at year beginning
       Name                       Related party             Balance of     Bad debt    Balance of      Bad debt
                                                              Book         Provision     Book          Provision

                     Guangdong Xinyue Traffic Investment
 Contract assets                                             113,642.50                  119,242.50
                     Co., Ltd.

                     Guangdong Feida Traffic Engineering
 Contract assets                                               48,230.00                  48,230.00
                     Co.,Ltd.

                     Guangdong Jiangzhong Expressway Co.,
 Contract assets                                                8,412.00                   8,412.00
                     Ltd.

                     Guangdong Nanyue Traffic Qingyun
 Contract assets                                                6,900.00
                     Expressway Management Center

                     Guangdong Road Construction
 Contract assets                                                                          25,262.45
                     Development Co., ltd.

 Contract assets     Zhaoqing Yuezhao Highway Co., Ltd.                                   22,667.85

 Contract assets     Guangzhenzhu Expressway Co., Ltd.                                     9,096.00

                     Guangdong Road Construction
 Contract assets                                                                           7,200.00
                     Development Co., ltd.



254
2021 Annual Report



                                                               Amount at year end         Amount at year beginning
         Name                      Related party              Balance of     Bad debt     Balance of      Bad debt
                                                                Book         Provision       Book         Provision

 Contract assets     Guangdong Boda Expressway Co., Ltd.                                       4,530.99

 Contract assets     Guangdong Boda Expressway Co., Ltd.                                       2,700.00

 Total                                                         177,184.50                   247,341.79

 Account             Guangdong Union electron Service Co.,
                                                             78,368,502.10               100,047,025.70
 receivable          Ltd.

 Account             Jingzhu Expressway Guangzhu North
                                                              7,783,650.00                 5,980,163.99
 receivable          Section Co., Ltd.

 Account             Guangdong Feida Traffic Engineering
                                                              5,531,000.00                 3,274,356.00    45,916.00
 receivable          Co., Ltd.

 Account
                     Guangdong Humen Bridge Co., Ltd.         2,083,918.33                11,044,082.54
 receivable

 Account
                     Guangdong Expressway Media Co., Ltd.     1,854,769.00                 1,966,548.00
 receivable

 Account             Guangdong Litong Technology
                                                               338,298.13
 receivable          Investment Co., Ltd.

 Account
                     Poly Changda Engineering Co., Ltd.        265,054.16
 receivable

 Account
                     Guangdong Provincial Freeway Co.,Ltd.     203,632.00                     21,232.00
 receivable

 Account             Guangdong Xinyue Traffic Investment
                                                                 94,301.60                  300,009.20    148,208.50
 receivable          Co., Ltd.

 Account
                     Guangdong Road Construction Co., ltd.       54,256.00                 1,037,305.45    65,491.20
 receivable

 Account
                     Shenzhen Huiyan Expressway Co., Ltd.        51,000.00
 receivable

 Account             Guangdong Road Bridge Construction
                                                                 29,025.15                    61,891.30
 receivable          Development Co., Ltd.

 Account
                     Guangzhenzhu Expressway Co., ltd.           18,192.00                    69,736.00
 receivable

 Account
                     Guangdong Boda Expressway Co., Ltd.          4,530.99                    22,740.00
 receivable

 Account             Guangdong Jiangzhong Expressway Co.,
                                                                                              19,708.00
 receivable          Ltd.

 Account             Guangdong Chaohui Expressway Co.,
                                                                                               7,367.20
 receivable          Ltd.


255
2021 Annual Report



                                                                 Amount at year end         Amount at year beginning
         Name                     Related party                 Balance of     Bad debt     Balance of      Bad debt
                                                                  Book         Provision       Book         Provision

 Account
                     Guangdong Yueyun Traffic Co., Ltd.                                         15,032.00
 receivable

 Account             Guangdong Guangle Expressway Co.,
                                                                                                 7,248.00
 receivable          Ltd.

 Account             Guangdong Guangzhu West Line
                                                                                              223,500.00
 receivable          Expressway Co., Ltd.

 Total                                                         96,680,129.46               124,097,945.38   259,615.70

 Advanced
                     Zhaoqing Yuezhao Highway Co., Ltd.          216,750.00                   151,938.00
 payment

 Advanced            Guangdong Feida Traffic Engineering
                                                                                              149,400.00
 payment             Co., Ltd.

 Total                                                           216,750.00                   301,338.00

 Dividend
                     Ganzhou Kangda Expressway Co., Ltd,.                                    1,500,000.00
 Receivable

 Total                                                                                       1,500,000.00

 Other Account       Guangdong Litong Real Estate Investment
                                                                1,653,447.36                 1,666,147.36
 receivable          Co., Ltd.

 Other Account
                     Guangdong Expressway Media Co., Ltd.        649,386.62                  1,218,110.44
 receivable

 Other Account
                     Guangdong Provincial Freeway Co.,Ltd.       463,491.88                   463,491.88
 receivable

 Other Account
                     Zhaoqing Yuezhao Highway Co., Ltd.          350,000.00                   350,000.00
 receivable

 Other Account       Guangdong Union electron Service Co.,
                                                                   50,000.00                    50,000.00
 receivable          Ltd.

 Other Account       Guangdong Litong Real Estate Investment
                                                                   30,004.00                    16,268.00
 receivable          Co., Ltd.

 Other Account       Guangdong Guangzhu West Line
                                                                                                20,000.00
 receivable          Expressway Co., Ltd.

 Other Account
                     Poly Changda Engineering Co., Ltd.                                         10,124.14
 receivable

 Other Account
                     Ganzhou Gankang Expressway Co., Ltd.                                   45,000,000.00
 receivable

 Other Account       Guangdong Xinyue Traffic Investment
                                                                                                 5,340.03
 receivable          Co., Ltd.


256
2021 Annual Report



                                                                          Amount at year end           Amount at year beginning
         Name                          Related party                     Balance of     Bad debt       Balance of         Bad debt
                                                                           Book         Provision         Book            Provision

 Other Account
                         Guangshenzhu Expressway Co., Ltd.                                                 60,640.00
 receivable

 Other Account
                         Guangdong Boda Expressway Co., Ltd.                                               22,740.00
 receivable

 Total                                                                   3,196,329.86                  48,882,861.85

 Other
 Non-Current             Guangdong Road Construction Co., Ltd.           7,089,990.48                   7,089,990.48
 Assets

 Other
 Non-Current             Guangdong Traffic Development Co., Ltd.          333,398.00
 Assets

 Other
                         Guangdong Tianlu New Energy
 Non-Current                                                                                              333,398.00
                         Investment Co., Ltd.
 Assets

 Other
 Non-Current             Poly Changda Engineering Co., Ltd.                                            11,599,273.00
 Assets

          Total                                                          7,423,388.48                  19,022,661.48


(2)Payables

                                                                                                                             In RMB

                                                                                                                 Amount at year
                  Name                                 Related party                    Amount at year end
                                                                                                                    beginning

                                    Guangdong Communication Group Finance Co.,
 Short-term loan                                                                                                    200,192,500.00
                                    ltd.

 Total                                                                                                              200,192,500.00

 Account payable                    Poly Changda Engineering Co., Ltd.                         29,736,553.34         25,621,536.30

                                    Guangzhongjiang Expressway Project
 Account payable                                                                               28,000,000.00         28,000,000.00
                                    Management Dept

 Account payable                    Guangdong Xinyue Traffic Investment Co., Ltd               10,405,248.06         13,149,675.40

 Account payable                    Guangdong Feida Traffic Engineering Co., Ltd.               5,035,975.88            500,864.10

 Account payable                    Guangdong Hualu Traffic Technology Co., Ltd.                4,960,992.02           2,198,660.67

 Account payable                    Guangzhou Xinyue Asphalt Co., Ltd.                          2,773,825.00             47,362.94

 Account payable                    Guangdong Humen Bridge Co., Ltd.                            2,596,817.45


257
2021 Annual Report


                                                                                              Amount at year
            Name                               Related party             Amount at year end
                                                                                                beginning

                         Guangzhou Aitesi Communication Equipment
 Account payable                                                               2,547,594.00       1,283,018.78
                         Co., Ltd.

 Account payable         Guangdong Lulutong Co., Ltd.                          2,525,256.06       3,560,871.60

                         Guangdong East Thinking Management
 Account payable                                                               2,331,700.01       1,584,416.70
                         Technology Development Co., Ltd.

                         Guangdong Communication Planning & Design
 Account payable                                                               1,759,707.90       8,929,645.80
                         Institute Co., Ltd.

                         Guangdong Litong Technology Investment Co.,
 Account payable                                                               1,291,067.95          85,074.95
                         Ltd.

 Account payable         Guangdong Provincial Freeway Co.,Ltd.                 1,245,443.50       8,746,491.18

 Account payable         Guangdong Changda Road Maintenance Co., Ltd.           309,101.00         309,101.00

 Account payable         Guangdong Yueyun Traffic Co., Ltd.                     168,277.20         268,021.00

 Account payable         Guangdong Union Electron Service Co.,Ltd.               50,286.78         254,011.26

 Account payable         Guangdong Jiaoke Testing Co., Ltd.                                          88,880.00

 Total                                                                        95,737,846.15      94,627,631.68

                         Guangdong Road Network Digital Media
 Advance received                                                                                     2,777.78
                         Information Technology Co. Ltd.

 Total                                                                                                2,777.78

 Other Payable account   Poly Changda Engineering Co., Ltd.                   17,126,203.40      20,042,113.05

 Other Payable account   Guangdong Xinyue Traffic Investment Co., Ltd.         4,272,693.60       1,889,981.61

 Other Payable account   Guangdong Hualu Traffic Technology Co., Ltd.          2,084,177.53       1,327,451.00

 Other Payable account   Guangdong Feida Traffic Engineering Co., Ltd.         1,628,931.87       1,700,740.34

 Other Payable account   Guangdong Changda Road Maintenance Co. Ltd.           1,630,765.00       1,630,765.00

 Other Payable account   Guangdong Xinyue Traffic Investment Co., Ltd.         1,380,379.20        171,809.00

 Other Payable account   Guangdong Lulutong Co., Ltd.                          1,127,575.62       1,084,995.15

 Other Payable account   Guangzhou Xinyue Asphalt Co., Ltd.                    1,054,919.00        567,221.00

                         Guangzhongjiang Expressway Project
 Other Payable account                                                          200,000.00         200,000.00
                         Management Dept

                         Guangdong East Thinking Management
 Other Payable account                                                          191,674.29           58,991.40
                         Technology Development Co., Ltd.

                         Guangdong Litong Technology Investment Co.,
 Other Payable account                                                          135,772.00         167,591.50
                         Ltd.

                         Guangdong Communication Planning & Design
 Other Payable account                                                          120,422.00         238,479.70
                         Institute Co., Ltd.



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2021 Annual Report


                                                                                                      Amount at year
              Name                                Related party                  Amount at year end
                                                                                                        beginning

                                 Guangdong Tongyi Expressway Service Area Co.,
 Other Payable account                                                                  120,000.00         120,000.00
                                 Ltd.

 Other Payable account           Guangdong Expressway Media Co., Ltd.                    50,000.00           70,000.00

 Other Payable account           Guangdong Highway Construction Co., Ltd.                40,459.66

 Other Payable account           Guangdong Yueyun Traffic Rescue Co. Ltd.                  2,900.00            900.00

 Other Payable account           Guangdong Provincial Freeway Co.,Ltd.                                1,221,839,292.00

 Other Payable account           Guangdong Union Electron Service Co.,Ltd.                                 956,272.04

 Total                                                                                31,166,873.17   1,252,066,602.79

 Contract liabilities            Guangdong Feida Traffic Engineering Co., Ltd.           22,000.00

 Total                                                                                   22,000.00

 Non-current liabilities due 1   Guangdong Litong Real estate Investment Co.,
                                                                                      11,862,198.24
 year                            Ltd.

 Non-current liabilities due 1   Guangdong Communication Group Finance Co.,
                                                                                        229,166.68
 year                            ltd.

 Non-current liabilities due 1
                                 Zhaoqing Yuezhao Highway Co., Ltd.                      111,862.55
 year

 Non-current liabilities due 1
                                 Guangdong Jiangzhong Expressway Co., ltd.                                   43,065.00
 year

 Total                                                                                12,203,227.47          43,065.00

                                 Guangdong Litong Real estate Investment Co.,
 Lease Liabilities                                                                     2,445,724.58
                                 Ltd.

 Total                                                                                 2,445,724.58

                                 Guangdong Communication Group Finance Co.,
 Long-term loans                                                                    200,000,000.00
                                 ltd.

 Total                                                                              200,000,000.00

 Long-term payable               Guangdong Jiangzhong Expressway Co., ltd.                               36,000,000.00

 Total                                                                                                   36,000,000.00




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2021 Annual Report


7. Related party commitment

None

XII. 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

None

5.Other

None

XIII. Commitments

1. Significant commitments

Significant commitments at balance sheet date

None

2. Contingency

(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose, also should be stated
None

XIV. Events after balance sheet date

1、Important non adjustment matters


On February 18, 2022, the company received the notice of Guangdong Provincial Department of transportation on

260
2021 Annual Report


matters related to the disposal of Guangzhou Foshan expressway toll expiration issued by Guangdong Provincial
Department of transportation [2022] No. 24. The main contents are as follows: (1) the toll collection of Guangzhou
Foshan expressway will be stopped from 0:00 on March 3, 2022, and the existing toll collection facilities will be
retained to operate as usual in the way of zero rate, All vehicles passing through this section shall be exempted
from vehicle tolls, and vehicle tolls of other sections shall be charged on behalf of others; (2) After the suspension
of toll collection, Guangfo Expressway Co., Ltd. will continue to be responsible for the management and
maintenance of Guangfo Expressway.


At present, the company is evaluating the impact of the matter on the company.

2.Profit distribution

                                                                                                              In RMB

 Profit or dividend to be distributed                                                              1,191,759,491.82


XVI.Other significant events

1. Segment information

The company's business for the Guangfo Expressway , the Fokai Expressway ,Guanghui 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.




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2021 Annual Report
2.Government Subsidy

(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method

Subsidy item                     Category         Opening balance       New subsidy amount in The carry-over in Other changes Closing balance            Presentation     items   carried Asset-related/reven
                                                                        current period          current   period   is                                    over into profit or loss in the ue-related
                                                                                                included in profit                                       current period
                                                                                                and loss amount
Cancel the special subsidy Financial                   44,545,569.64                                  13,567,476.53                      30,978,093.11           Other income               Assets related
for       the     expressway appropriation
provincial      toll   station
project

(2) Government subsidies included in current profits and losses using the total amount method
Subsidy item                           Category                         Amount included in profit or loss in the current Presentation items included in profit or loss in Asset-related/revenue-related
                                                                        period                                             the current period
Subsidy for post stabilization         Subsidy for post stabilization                                       1,198,029.54                    Other income                              Income related
Work with training instead of Subsidy for post stabilization                                                1,243,500.00                    Other income                              Income related
training subsidies
Enterprises       with     industrial Subsidy for post stabilization                                          339,000.00                    Other income                              Income related
training subsidies




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2021 Annual Report


3.Other important transactions and events have an impact on investors decision-making

    (1)The Company's plan to purchase 21% equity of Guangdong Guanghui Expressway Co., Ltd. (hereinafter
referred to as "Guanghui") held by Guangdong Expressway Co., Ltd. (hereinafter referred to as "Guangdong
Expressway") by payment in cash and related matters have been adopted by the resolution of the third
extraordinary general meeting of shareholders in 2020. According to the Profit Compensation Agreement signed
by Guangdong Expressway and the Company, it is agreed that Guangdong Expressway shall undertake the
compensation obligation when the actual net profit of Guanghui is less than the predicted net profit within the
compensation period. The compensation period is the year when the transaction is completed and the next two
years thereafter, namely 2020, 2021 and 2022. After negotiation between the Company and Guangdong
Expressway, the predicted net profit of Guanghui after deducting non-recurring gains and losses in 2020, 2021 and
2022 is RMB 652,477,500, RMB 1,112,587,300 and RMB 1,234,200,900 respectively. Within the compensation
period, if the accumulated realized net profit at the end of any fiscal year of Guanghui does not reach the
accumulated predicted net profit, Guangdong Expressway will compensate the company in cash, and the specific
compensation amount paid by Guangdong Expressway in that year will be calculated and determined according to
the following formula: current compensation amount promised for performance = (accumulated predicted net
profit as of the end of the current period - accumulated realized net profit as of the end of the current period) ÷ sum
of predicted net profits of each year within the compensation period × transaction price of the underlying assets -
accumulated compensated amount of Guangdong Expressway. When the compensation amount calculated in each
year is less than the RMB 0, the value shall be taken as RMB 0, and the compensated amount shall not be reversed.
     The net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and losses) in 2020 was
RMB 769,232,600, RMB 116,755,100 more than the promised amount; the net profit of Guangzhou-Huizhou
Company (excluding non-recurring gains and losses) in 2021 was RMB 1,105,444,400, RMB 7,142,900 less than
the promised amount; by the end of 2021, the accumulated net profit (excluding non-recurring gains and losses)
was RMB 1,874,677,000, RMB 109,612,200 more than the promised amount.
     The Company intends to transfer 100% equity of Guangdong Expressway Technology Investment Co., Ltd. to
Guangdong Leatop Technology Investment Co., Ltd., and the transaction-related work is being carried out in an
orderly manner.




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2021 Annual Report

XVI..Notes of main items in financial reports of parent company
1. Account receivable

      1.Classification account receivables.

                                                                                                                                                                         In RMB

                                                                  Amount in year-end                                                Balance Year-beginning

                                              Book Balance              Bad debt provision                         Book Balance             Bad debt provision
              Category
                                        Amount         Proportion(     Amoun     Proportion   Book value       Amount         Proportio   Amount     Proportion     Book value
                                                             %)           t            (%)                                        n(%)                  (%)

 Of which

 Accrual of bad debt provision by
                                      24,208,692.49      100.00%                              24,208,692.49   27,004,827.41    100.00%                 100.00%     27,004,827.41
 portfolio

 Of which:

 Total                                24,208,692.49                                           24,208,692.49   27,004,827.41                                        27,004,827.41

Accrual of bad debt provision by single item: None
Disclosure by aging
                                                                                                                                                                          In RMB

                                     Aging                                                                              Closing balance

 Within 1 year(Including 1 year)                                                                                                                                24,208,692.49

 Total                                                                                                                                                            24,208,692.49




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2021 Annual Report


(2) Accounts receivable withdraw, reversed or collected during the reporting period

None


 (3)The current accounts receivable write-offs situation


       None


(4)The ending balance of other receivables owed by the imputation of the top five parties

                                                                                                                              In RMB

                    Name                     Amount                      Proportion(%)                   Bad debt provision

 Guangdong Union Electronic Services
                                             23,870,394.36                               98.60%
 Co., Ltd.

 Guangdong Litong Technology
                                                338,298.13                               1.40%
 Investment Co., Ltd.

 Total                                       24,208,692.49                           100.00%                     --


 (5)Account receivable which terminate the recognition owning to the transfer of the financial assets

None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None

2.Other receivable

                                                                                                                              In RMB

                    Items
                                                      Year-end balance                            Year-beginning balance
 Dividend receivable                                                1,205,472.90                                       2,705,472.90

 Other receivable                                                   5,680,509.70                                  51,442,641.63

 Total                                                              6,885,982.60                                      54,148,114.53


(1)Interest receivable:None

(2)Dividend receivable

1)Dividend receivable
                                                                                                                             In RMB

                            Items                             Balance in year-end                    Balance Year-beginning

 Guangdong Radio and Television Networks investment                          1,205,472.90                              1,205,472.90



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2021 Annual Report


 No.1 Limited partnership enterprise

 Ganzhou Gankang Expressway Co., Ltd.                                                                    1,500,000.00

 Total                                                               1,205,472.90                        2,705,472.90


2)Significant dividend receivable aged over 1 year

                                                                                                                    I n RMB

                                                                                                Whether or not the
                                        Balance in                        Reasons for           impairment and the
                 Items)                                    Aging
                                         year-end                         non-recovery              basis for its
                                                                                                   determination

                                                                     The partnership
                                                                     agreement expires and
 Guangdong Radio and Television
                                                                     can be recovered after   No, it can be recovered
 Networks investment No.1 Limited       120,547,290.00   3-4 years
                                                                     the extension            in the future
 partnership enterprise
                                                                     procedures are
                                                                     completed

 Total                                  120,547,290.00        --                 --                      --




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      2021 Annual Report
      (3) Other accounts receivable

      1) Other accounts receivable classified by the nature of accounts

                                                                                                                                                                                            In RMB

                                                             Balance in year-end                                                                     Balance Year-beginning

                                 Book balance                      Bad debt provision                                    Book balance                      Bad debt provision
      Category                                                                     Expected                                                                            Expected
                                            Proportion                                             Book value                       Proportion                                             Book value
                             Amount                              Amount            credit loss                       Amount                              Amount        credit loss
                                                (%)                                                                                     (%)
                                                                                   rate(%)                                                                             rate(%)

Other receivables
for individual bad          30,844,110.43            84.45      30,844,110.43                100                0   30,844,110.43            37.44     30,844,110.43                100                 0
debt provision

Other       receivables
for      bad         debt
provision
according to the             5,680,509.70            15.55                                         5,680,509.70     51,536,223.63            62.56         93,582.00                0.18   51,442,641.63
combination            of
credit               risk
characteristics

             Total          36,524,620.13        /              30,844,110.43           /          5,680,509.70     82,380,334.06        /             30,937,692.43            /          51,442,641.63




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2021 Annual Report


Accrual of bad debt provision by single:
                                                                                                                                     In RMB

       Bad Debt Reserves                                                   Closing book balance

                                                                                  Expected credit loss
                                  Book balance         Bad debt provision                                                 Reason
                                                                                  rate(%)

                                                                                                                      Bad debts were
 Kunlun Securities Co.,
                                    30,844,110.43               30,844,110.43                            100.00     withdrawn in full in
 Ltd
                                                                                                                        bankruptcy

             Total                  30,844,110.43               30,844,110.43                     /                             /

In the portfolio, Disclosure by aging
                                                                                                                                     In RMB

                                                                                 Balance in year-end
                 Aging
                                             Other receivable                   Bad debt provision            Expected credit loss rate(%)

Within 1 year                                            963,300.00

                 Total                                   963,300.00

In the portfolio, other receivables with bad debt provision by other methods:
                                                                                                                                     In RMB

                     Name                                Balance in year-end                               Balance Year-beginning

Deposit money and quality guarantee fund
                                                                                2,102,176.36                                   2,489,275.36
combination

Other                                                                           2,615,033.34                                   3,088,614.27

Subtotal                                                                        4,717,209.70                                   5,577,889.63

Less:Bad debt provision

                     Total                                                      4,717,209.70                                   5,577,889.63

2)The withdrawal amount of the bad debt provision:
                                                                                                                                     In RMB

                                   Stage 1                  Stage 2                            Stage 3

                               Expected credit      Expected credit loss over       Expected credit losses for
      Bad Debt Reserves                                                                                                    Total
                             losses over the next        life (no credit            the entire duration (credit
                                 12 months                impairment)                 impairment occurred)

 Balance as at January
                                      93,582.00                                                  30,844,110.43             30,937,692.43
 1,2021

 Balance as at January
                                    ——                        ——                            ——                        ——
 1,2021 in current

 Turn back in this
                                      -93,582.00                                                                              -93,582.00
 period

 Balance as at                                                                                   30,844,110.43             30,844,110.43


268
2021 Annual Report


 December 31,,2021

Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable

3) Accounts receivable withdraw, reversed or collected during the reporting period

None

 4)The actual write-off other accounts receivable: None

5) Other receivables are classified by the nature

                                                                                                                           In RMB

                        Nature                              Closing book balance                   Opening book balance

 Securities trading settlement funds                                       30,844,110.43                           30,844,110.43

 Less receivable                                                                                                   45,000,000.00

 Deposit                                                                    2,102,176.36                            2,490,271.36

 Petty cash                                                                 1,519,593.22                            2,140,410.04

 Other                                                                      2,058,740.12                            1,905,542.23

                   Subtotal                                                36,524,620.13                           82,380,334.06

 Less:Bad debt provision                                                  30,844,110.43                           30,937,692.43

                     Total                                                  5,680,509.70                           51,442,641.63


6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

                                                                                                                           In RMB

                                                                                                 Proportion of
                                                                                                 the total year      Closing
              Name                               Nature           Closing balance     Aging      end balance of   balance of bad
                                                                                                  the accounts    debt provision
                                                                                                 receivable(%)

                                       Securities trading settl                      Over 5
 Kunlun Securities Co.,Ltd                                           30,844,110.43                      84.45%    30,844,110.43
                                       ement funds                                   years

                                       Deposit                        1,630,467.36   1-2 years           4.53%
 Guangdong Litong Real Estates
                                                                                     Within 1
 Investment Co., Ltd.                                                    22,980.00
                                                                                     year

 China Railway No.18 Bureau                                                          Within 1
                                       Surrogate payment               963,300.00                        2.64%
 Group Co., Ltd.                                                                     year

 Guangdong Provincial Freeway          Entrusted management                          Over 5
                                                                       463,491.88                        1.27%
 Co.,Ltd.                              fee                                           years

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2021 Annual Report


                               Vehicle parking                           Within 1
                                                              4,200.00                      1.15%
                               deposit                                   year

                               Water and electricity
                                                             92,117.00   1-2 years
 Savills                       costs working capital

                               Office building
                               management fee               322,408.00   1-2 years
                               deposit

 Total                                   --              34,343,074.67       --            94.03%   30,844,110.43


(7) Accounts receivable involved with government subsidies

 None

(8) Other account receivable which terminate the recognition owning to the transfer of the financial assets None

(9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None




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2021 Annual Report
3. Long-term equity investment



                                                                                                                                                                                In RMB

                                                                 End of term                                                                Beginning of term
             Items
                                       Book Balance          Impairment provision            Book value                Book Balance        Impairment provision       Book value

 Investment in subsidiaries             3,257,062,345.85                                     3,257,062,345.85           3,232,062,345.85                              3,232,062,345.85

 Investment in joint ventures
                                        2,535,548,456.61                                     2,535,548,456.61           2,297,846,380.72                              2,297,846,380.72
 and associates

 Total                                  5,792,610,802.46                                     5,792,610,802.46           5,529,908,726.57                              5,529,908,726.57


(1)Investment to the subsidiary

                                                                                                                                                                                In RMB

                                                                                    Increase /decrease in reporting period

                                                                                                              Withdrawn                                            Closing balance of
                  Name                     Opening balance                                 Decreased                                         Closing balance
                                                                   Add investment                             impairment         Other                            impairment provision
                                                                                          investment
                                                                                                                provision
 Jingzhu Expressway Guangzhu
                                                871,171,883.08                                                                                   871,171,883.08
 Section Co., Ltd.

 Guangfo Expressway Co., ltd.                   154,982,475.25                                                                                   154,982,475.25

 Guangdong Expressway
                                                 95,731,882.42                                                                                    95,731,882.42
 Technology Investment     Co., Ltd.

 Yuegao Capital Investment
                                                 84,500,000.00        25,000,000.00                                                              109,500,000.00
 (Guangzhou) Co., Ltd.

 Guanghui Expressway Co., Ltd.                2,025,676,105.10                                                                                 2,025,676,105.10


271
2021 Annual Report
 Total               3,232,062,345.85   25,000,000.00   3,257,062,345.85




272
            2021 Annual Report


                    (2)Investment to joint ventures and associated enterprises

                                                                                                                                                                                       In RMB

                                                                                           Increase /decrease in reporting period
                                                                                                                                                                                                Closing
                                                                      Decre                                                           Announced for    Provisio
                                                                                Investment            Other                                                                                  balance of
             Name                 Opening balance     Increase in     ase in                                       Other changes in    distributing     n for             Closing balance
                                                                               income under       comprehensi                                                     Other                      impairment
                                                      investment      invest                                            equity        cash dividend    impairm
                                                                               equity method       ve income                                                                                 provision
                                                                      ment                                                               or profit       ent

I. Joint ventures

II. Associated enterprises

Guangdong Jiangzhong
                                   192,252,504.94    133,650,000.00             20,810,859.29                                          28,621,724.94                        318,091,639.29
Expressway Co., Ltd.

Ganzhou Gankang
                                   145,774,620.72                                  8,343,776.40                                                                             154,118,397.12
Expressway Co., Ltd.

Ganzhou Kangda
                                   216,814,090.50                               48,286,927.19                                          27,000,000.00                        238,101,017.69
Expressway Co., Ltd.

ShenzhenHuiyan Expressway
                                   285,408,755.15                               35,557,629.02                                                                               320,966,384.17
Co., Ltd.

Zhaoqing Yuezhao Highway
                                   302,436,218.83                               53,076,732.52                                          39,675,000.00                        315,837,951.35
Co., Ltd.

Guoyuan Securities Co.,Ltd.        938,476,820.74                               44,593,073.57     9,716,087.81                         20,696,516.40                        972,089,465.72

Guangdong Yuepu Small
                                   216,683,369.84                               10,970,165.76                         -4,118,261.28     7,191,673.05                        216,343,601.27
Refinancing Co., Ltd

Subtotal                          2,297,846,380.72                             221,639,163.75     9,716,087.81        -4,118,261.28   123,184,914.39                      2,535,548,456.61

Total                             2,297,846,380.72                                                                                                                        2,535,548,456.61

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2021 Annual Report


4. Business income and Business cost
                                                                                                                                In RMB


                                           Amount of current period                             Amount of previous period
             Items
                                      Revenue                        Cost                 Revenue                     Cost

 Main business                      1,454,377,306.80             714,045,421.17           961,484,310.59             650,430,454.36

 Other                                 14,987,127.57                 4,588,762.80          13,956,071.99               5,240,167.71

 Total                              1,469,364,434.37             718,634,183.97           975,440,382.58             655,670,622.07


5.Investment income

                                                                                                                                In RMB

                          Items
                                                               Amount of current period               Amount of previous period
 Long-term equity investment income accounted
                                                                             1,007,249,778.63                        565,261,660.63
 by cost method

 Long-term equity investment income accounted
                                                                              221,639,163.75                         343,597,391.91
 by equity method

 Investment return on investments held to maturity
                                                                                50,056,360.49                         50,785,213.04
 during the holding period

 Interest income from debt investment during
                                                                                37,923,704.59                         50,332,058.95
 holding period.

 Total                                                                       1,316,869,007.46                      1,009,976,324.53


XVII. 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                                                4,350,214.54

 Government grants recognized in the current period, except for those acquired in the
 ordinary course of business or granted at certain quotas or amounts according to the             16,348,006.07
 country’s unified standards

 Net amount of non-operating income and expense except the aforesaid items                        -5,840,734.56

 Other non-recurring Gains/loss items                                                              1,252,349.09

 Less :Influenced amount of income tax                                                             4,027,139.54

      Influenced amount of minor shareholders’ equity (after tax)                                 4,767,353.02



274
2021 Annual Report


 Total                                                                                            7,315,342.58         --

Details of other profit and loss items that meet the non-recurring profit and loss definition

□ Applicable√ Not applicable
None

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)


                                                                    Weighted                      EPS(Yuan/share)
                 Profit as of reporting period                    average ROE
                                                                                           EPS-basic             EPS-diluted
                                                                       (%)

 Net profit attributable to common
                                                                         20.11%                        0.81                    0.81
 shareholders of the Company

 Net profit attributable to common
 shareholders of the Company after
                                                                         20.03%                        0.81                    0.81
 deduction of non-recurring profit
 and loss


3. Differences between accounting data under domestic and overseas 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

(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.

□ Applicable□√ Not applicable

(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accounting standa
rds. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of the ove
rseas institution should be indicated

None




275