Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Report 2023
August 2023
I. Important Notice, Table of Contents and Definitions
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management
staff of the Company warrant that this Report is factual, accurate and complete without any false record,
misleading statement or material omission. And they shall be jointly and severally liable for that.
Mr.Miao Deshan, Company principal , Mr. Wang Chunhua, General Manager, Mr. Lu Ming, Chief of the
accounting work, Ms.Zhou Fang, Chief of the accounting organ (chief of accounting ) hereby confirm the
authenticity and completeness of the financial report enclosed in this Semi-annual report.
All the directors have attended the meeting of the board meeting at which this report was examined.
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 Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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.
4
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Definition
Terms to be defined Refers to Definition
Reporting period Refers to January 1, 2023 to June 30,2023
The semi-annual report of the company was
Reporting date Refers to approved by the board of directors of 2023, that is,
August 28, 2023
YOY Refers to Compared with January-June 2022
The Company, This Company, The Guangdong Provincial Expressway Development
Refers to
Group, Guangdong Expressway Co.,Ltd.
Guangfo Company Refers to Guangdong Guangfo Expressway Co., Ltd.
Guanghui Company Refers to Guangdong Guanghui Expressway Co., Ltd.
Provincial Expressway Refers to Guangdong Provincial Expressway Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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 Miao Deshan
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
46/F, Litong Plaza, No.32, Zhujiang East 45/F, Litong Plaza, No.32, Zhujiang East
Contact address Road, Zhujiang New City, Tianhe Road, Zhujiang New City, Tianhe
District , Guangzhou District , Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Other
1). Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed
in reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in annual report 2022.
2). Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For
details please find the Annual Report 2022.
3). Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Not applicable
4. Summary of Accounting Data and Financial Indicators
Whether it has retroactive adjustment or re-statement on previous accounting data
6
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
√Yes □ No
Retroactive adjustment or restatement of causes
Accounting policy change
YoY+/-
Same period of last year
（%）
Reporting period
After
Before adjustment After adjustment
adjustment
Operating income（yuan） 2,340,436,775.08 2,057,420,809.68 2,057,420,809.68 13.76%
Net profit attributable to the shareholders of
885,644,187.99 773,786,851.68 773,736,908.29 14.46%
the listed company（yuan）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 913,683,625.12 743,090,095.19 743,040,151.80 22.97%
listed company（yuan）
Cash flow generated by business operation, net
2,013,917,191.70 1,443,551,266.30 1,443,551,266.30 39.51%
（yuan）
Basic earning per share(yuan/Share) 0.42 0.37 0.37 13.51%
Diluted gains per share(yuan/Share) 0.42 0.37 0.37 13.51%
Weighted average income/asset ratio（%） 9.30% 8.45% 8.45% 0.85%
YoY+/-
As at the end of last year
As at the end of the （%）
reporting period After
Before adjustment After adjustment
adjustment
Gross assets（yuan） 21,477,092,071.77 20,267,197,153.88 20,267,998,963.78 5.97%
Shareholders’ equity attributable to
9,074,979,474.41 9,075,877,244.12 9,075,659,162.80 -0.01%
shareholders of the listed company（yuan）
Reasons for the changes in accounting policies
On November 30, 2022, the Ministry of Finance issued the Notice on Printing and Distributing the No.
16Interpretation of Accounting Standards for Business Enterprises (No. 31[2022]Cai Hui).According to the
relevant requirements of the No. 16 Interpretation of Accounting Standards for Business Enterprises, the
Company shall make corresponding adjustments to the relevant accounting policies originally adopted. Adopted
by the resolution of the seventh meeting of the 10th session of the Board of Directors of the Company on March
20, 2023, the Company implements the relevant provisions of the No. 16 Interpretation of Accounting
Standards for Business Enterprises from January 1, 2023.
5. 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
None
2).Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
None
6.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Note
Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision
-15,753.62
is made)
Government subsidies recognized in current gain and loss(excluding those closely related to the
5,654,550.96
Company’s business and granted under the state’s policies)
The impairment provision for the advance expenses that have occurred but need to be defined from the
-43,681,523.62
source of funds
Net amount of non-operating income and expense except the aforesaid items 1,923,823.88
Other non-recurring Gains/loss items 795,422.82
Less :Influenced amount of income tax 2,088,521.91
Influenced amount of minor shareholders’ equity (after tax) -9,372,564.36
Total -28,039,437.13
Details of other profit and loss items that meet the non-recurring profit and loss definition
√Applicable□ Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses of the
Guangzhou-Foshan Expressway that has been advanced but the source of funds needs to be clarified, it will
affect the normal judgment to the Company's operating performance and profitability by the user of the report.
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses
and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information
Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been
defined as recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the
information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
III. Management Discussion & Analysis
Ⅰ.Main Business the Company is Engaged in During the Report Period
The Company's 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 consultation while investing in
Shenzhen Huiyan Expressway Co., Ltd., Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expre
ssway 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., China
Everbright Bank , Hunan Lianzhi Technology Co., Ltd., SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.，
CMST Nanjing Intelligent Logistics Technology Co., Ltd., Shenzhen Garage Electric Pile Technology Co.,
Ltd.and Beijing Institute of Architectural Design.
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.
II. 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.
III. Main business analysis
General
Whether the same as the main business disclosure engaged in the company during the reporting period
□ Yes √No
During the reporting period, the domestic economy gradually improved, and the traffic flow and the toll
income of the Company's participation-in highway projects increased steadily.
Volume of vehicle traffic Toll income in the Toll income in the first half Increase
in the first half year of first half year of year of 2023（Ten /Decrease(%）
2023(Per unit) 2023 thousand）
Guangfo Expressway 45,879,144 26.22% 0 -100.00%
Fokai Expressway 43,909,980 17.09% 73,431.98 15.28%
Jingzhu Expressway 35,207,721 27.86% 55,839.06 27.64%
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Guangzhu East Section
Guanghui Expressway 43,671,056 20.98% 101,783.89 15.61%
Huiyan Expressway 25,545,904 20.09% 10,660.57 10.02%
Guangzhao Expressway 20,467,900 25.02% 26,335.13 17.06%
Jiangzhong Expressway 25,015,753 -4.08% 15,813.19 -10.59%
Kangda Expressway 760,016 28.61% 14,483.87 5.06%
Gangkang Expressway 2,550,877 33.04% 11,693.57 29.65%
Guangle Expressway 19,825,231 5.20% 153,652.08 -0.56%
Note：Guangfo Expressway stopped toll collection from 00:00 on March 3, 2022.
Year-on-year change of main financial data
In RMB
YOY
This report Same period last
change Cause change
period year
（%）
Operating income 2,340,436,775.08 2,057,420,809.68 13.76%
Operating cost 740,670,310.49 696,143,722.50 6.40%
Administrative expenses 80,023,845.71 85,773,267.04 -6.70%
Financial expenses 91,153,090.47 87,302,056.62 4.41%
Income tax expenses 369,040,383.81 290,224,512.53 27.16%
The main R&D projects in the current
R & D Investment 81,651.82 1,368,887.22 -94.04%
period are still in the early stages.
Mainly due to the increase in toll revenue
Cash flow generated by and the impact of government subsidies
2,013,917,191.70 1,443,551,266.30 39.51%
business operation, net received by the Beijing-Zhuhai
Expressway.
Mainly due to the increase in cash outflow
Net cash flow generated by due to the renovation and expansion of the
-634,590,288.73 -274,972,125.19 -130.78%
investment Guangzhu section of the Beijing-Zhuhai
Expressway.
Net cash flow generated by Mainly due to the repayment of mature
-389,241,866.55 -80,767,682.59 -381.93%
financing debts
Net increasing of cash and
990,085,036.42 1,087,811,458.52 -8.98%
cash equivalents
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
None.
Component of Business Income
In RMB
This report period Same period last year
Increase /decrease
Amount Proportion Amount Proportion
Total operating
2,340,436,775.08 100% 2,057,420,809.68 100% 13.76%
revenue
On Industry
Highway
2,310,707,369.57 98.73% 2,019,631,631.41 98.16% 14.41%
transportations
Other 29,729,405.51 1.27% 37,789,178.27 1.84% -21.33%
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
On Product
Highway
2,310,707,369.57 98.73% 2,019,631,631.41 98.16% 14.41%
transportations
Other 29,729,405.51 1.27% 37,789,178.27 1.84% -21.33%
On Area
Fokai Expressway 734,319,820.33 31.38% 636,965,610.55 30.96% 15.28%
Jingzhu
Expressway 558,390,597.95 23.86% 437,471,193.16 21.26% 27.64%
Guangzhu Section
Guanghui
1,017,838,852.76 43.49% 880,413,820.70 42.79% 15.61%
Expressway
Other 29,729,405.51 1.27% 37,789,178.27 1.84% -21.33%
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/decrease Increase/decrease Increase/decrease
Gross of revenue in the of business cost of gross profit rate
Turnover Operation cost profit same period of over the same over the same
rate(%) the previous period of period of the
year(%) previous year (%) previous year (%)
On Industry
Highway
2,310,707,369.57 726,266,759.50 68.57% 14.41% 7.03% 2.17%
transportations
On Industry
Highway
2,310,707,369.57 726,266,759.50 68.57% 14.41% 7.03% 2.17%
transportations
On Area
Fokai
734,319,820.33 241,299,076.08 67.14% 15.28% -2.79% 6.11%
Expressway
Jingzhu
Expressway
558,390,597.95 161,090,051.49 71.15% 27.64% 11.77% 4.09%
Guangzhu
Section
Guanghui
1,017,838,852.76 324,067,327.53 68.16% 15.61% 20.26% -1.23%
Expressway
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
IV. Non-core business analysis
√ Applicable □Not applicable
In RMB
Amount Ratio in total profit Note Whether be sustainable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
It is due to the operation
Investment Income 181,402,127.67 11.60% accumulation of participant Yes
companies
Mainly insurance claims and
Non-operating income 2,148,292.85 0.14% No
road property claims
Mainly road property repair
Non-operating expenses 240,222.59 0.02% No
expenses
Mainly due to that Guangfo
Company has fully made an
impairment provision for the
Credit impairment loss -45,626,953.18 -2.92% No
substitute payment of
management and maintenance
expenses.
V. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of Reporting period End of same period of last year
Reason for
As a As a Change in
significant
Amount percentage of Amount percentage of percentage(%)
change
total assets(%) total assets(%)
Monetary fund 5,284,849,991.90 24.61% 4,290,581,490.78 21.17% 3.44%
Accounts
108,862,469.85 0.51% 108,368,797.56 0.53% -0.02%
receivable
Investment real
2,557,585.69 0.01% 2,668,144.93 0.01% 0.00%
estate
Long-term
equity 3,068,430,688.22 14.29% 2,923,368,667.84 14.42% -0.13%
investment
Fixed assets 9,558,708,878.11 44.51% 10,098,252,638.07 49.83% -5.32%
Construction in
1,287,072,029.02 5.99% 753,565,502.12 3.72% 2.27%
process
Use right assets 30,342,505.71 0.14% 4,077,555.43 0.02% 0.12%
Shore-term
0.00% 430,387,597.20 2.12% -2.12%
loans
Long-term
5,868,719,950.00 27.33% 5,566,595,350.00 27.74% -0.14%
borrowing
Lease liabilities 18,856,223.73 0.09% 150,984.47 0.00% 0.09%
2.Main assets overseas
□ Applicable √Not applicable
3.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
In RMB
Gain/Loss on fair Cumulative fair value Impairment Sold amount in
Purchased amount in Other
Items Opening amount value change in the change recorded into provisions in the the reporting Closing amount
the reporting period change
reporting period equity reporting period period
Financial assets
1. Trading financial
assets (excluding
101,400,000.00 80,000,000.00 181,400,000.00
derivative financial
assets
4.Other equity
1,557,303,730.98 236,734,309.37 1,552,643,487.90
instrument investment
Total of the above 1,658,703,730.98 0.00 236,734,309.37 0.00 80,000,000.00 0.00 0.00 1,734,043,487.90
Financial liabilities 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
4. 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.
VI. Investment situation
1. General
√ Applicable □ Not applicable
Current Investment Amount(Yuan) Same period of last year (Yuan) Change rate
592,619,036.60 250,000,000.00 137.68%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
Applicable Not applicable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
Applicable □Not applicable
In RMB
Reasons
Accrued for not
Accrued Actual Realized Reaching
Industry Investment
Fixed Investment Income the
Project Investment involved in amount in this Capital Project Anticipated Disclosure Disclosure
investments Amount up to the up to the Planned
name method investment reporting Source schedule income date Index
or not End of Reporting End of Schedule
projects period
Period Reporting and
Period Anticipated
Income
Nansha-
Zhuhai Announcement
Section of of Resolution
Guangzhou- Self of the Second
October
Macao Self-built Yes Expressway 467,619,036.60 1,021,162,978.77 and 7.43% No (Provisional)
22,2022
Expressway Loan Meeting the
Was rebuilt Tenth Board of
and Directors
Expanded
Total -- -- -- 467,619,036.60 1,021,162,978.77 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Mode of Book value Change Cumulative Purchas Sale Book value
Stock Initial Gain/loss of Source
Security Securit accounting balance at the s in fair fair value e amoun balance at the Accountin
Abbreviatio investment the reporting s of
category y code measureme beginning of value changes in amount t in the end of the g items
n: cost period funds
nt the reporting of the equity in the this reporting
15
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
period this this period period
period period
Domesti Other
c and Everbright equity
517,560,876.8 722,232,678.0 204,671,801.2 44,698,439.3 722,232,678.0
601818 FVM 0.00 0.00 0.00 instrument Self
foreign Bank 0 8 8 6 8
investment
stocks s
517,560,876.8 722,232,678.0 204,671,801.2 44,698,439.3 722,232,678.0
Total -- 0.00 0.00 0.00 -- --
0 8 8 6 8
Disclosure Date of Announcement
on Securities Investment Approved July 22,2009
by the Board of Directors
Disclosure Date of Announcement
on Securities Investment Approved
August 7,2009
by the Shareholders Meeting(If
any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.
VII. 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
VIII. 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 Leading products and
Company Name Registered capital Total assets Net assets Operating Income Operating profit Net Profit
type services
Jingzhu
Expressway The operation and
Subsidiary management of 2.856 billion yuan 3,846,825,629.09 1,295,606,246.92 574,690,822.31 374,160,147.14 280,406,973.97
Guangzhu
Guangzhu Expressway
Section Co., Ltd.
Investment in and
construction of Guanghui
Expressway Co., Ltd.
and supporting facilities,
the toll collection and
maintenance
Guangdong management of
Guanghui Sharing Guanghui Expressway,
2.352 billion yuan 4,623,129,743.35 4,265,827,694.33 1,024,822,529.29 687,494,026.11 507,331,189.13
Expressway Co., company The Guanghui
Ltd. Expressway's supporting
gas station, 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
17
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The operating profit of Beijing Zhuhai Expressway Guangzhu Section Co., Ltd. increased by 44.04% year-on-year from January to June 2023, mainly due to the
gradual improvement of the economy and a significant year-on-year increase in toll revenue. The reason for the year-on-year change in net profit is the same as
before.
IX．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X. Risks facing the Company and countermeasures
The company’s profits mainly come from the expressway tolls revenue and the toll charging standards shall be examined by the traffic authority of the
provincial, autonomous region and the direct-controlled municipality people’s governments together with the same-level pricing authority and then submitted to the
same-level people’s government for approval. Therefore, the charging price adjustment trend and the possibility of the charging price adjustment upon rising of the
commodity price and the company cost in the future are still subject to relevant national policies and the approval of the governmental department. And the company
can’t adjust the charging standards promptly based on its own operation cost or the market supply-demand changes. In conclusion, the charging policies change and
the charging standards adjustment have the influence on the expressway business of the company to some extent.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
IV. Corporate Governance
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Convened Disclosure
Meeting Type participation Index to disclosed information
date date
ratio
1.The meeting examined and adopted the Proposal
Concerning Final Accounting Report for 2022.2.
The meeting examined and adopted the Proposal
Concerning Preplan for Profit Distribution for
2022.3. The meeting examined and adopted the
Proposal Concerning Overall budget report of the
Company for 2023. 4.The meeting examined and
adopted the Work Report of the Board of
Directors for 2022.5.The meeting examined and
2022 Annual
adopted the Work Report of the supervisory
Shareholders’ Shareholders’ June June Committee for 2022. 6.The meeting examined
66.79%
general General 28,2023 29,2023 and adopted Annual Report for 2022 and its
summary. 7. The meeting examined and adopted
meeting Meeting
the Proposal for Hiring the 2023 Annual Financial
Report Audit Agency.8. The meeting examined
and adopted the Proposal for Hiring the 2023
Internal Control Audit Institution. 9. The meeting
examined and adopted the Proposal on the
Investment Plan for 2023.10. The meeting
examined and adopted the Proposal on Amending
Part of the Articles of Association of the
Company.
2. Preferred shareholders with the restoration of voting rights made a request for the Special Meeting of
Shareholders
□ Applicable √ Not applicable
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Deputy General
Zhu Qijun Appointment April 27,2023 Appointment
Manager
III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
□ Applicable √ Not applicable
The Company planned not to distribute cash dividend and bonus share, and not to convert capital reserves into
share capital in half year.
IV. Implementation of any equity incentive plan, employee stock ownership plan or other incentive
measures for employees
□ Applicable √ Not applicable
19
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
None.
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
None。
Refer to other environmental information disclosed by key pollutant discharge units
None
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 the first half of 2023, the Company adhered to the essence of the enterprise, deepened corporate
governance, and actively fulfilled the responsibility of state-owned enterprises while promoting the high-quality
development of enterprises. In the first half of the year, the Company actively responded to government policies,
provided preferential exemptions and reductions in accordance with laws and regulations, and reduced the
transportation costs of enterprises and the mass travel costs ; The Company continues to implement the toll
exemption policy for passenger cars with less than seven seats on highways in major holidays, and implement
the intermittent free release and preferential policies for green channels, thus to effectively achieve "recognition
in place, personnel in place, responsibility in place, and measures in place", and successfully complete various
work to ensure safety, smooth flow and excellent service.
20
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
VI. Important Events
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 Fulfillment
Commitment Type Contents commitment commitment
maker
The predicted net profit of
Guangdong Guanghui
Expressway Co., Ltd. after
deducting non-recurring gains and
losses in 2020, 2021 and 2022
(hereinafter referred to as
"predicted net profit") is RMB
652,477,500, RMB 1,112,587,300
Guangdong and RMB 1,234,200,900
Commitment Provincial respectively. According to the November Proposed
Performance
on share Freeway special audit opinion issued by the 25, 2020-2022 change
commitment
reform Co.,Ltd. accounting firm, if the 2020 commitment
accumulated realized net profit of
Guangdong Guangzhou-Huizhou
Expressway Co., Ltd. at the end of
any fiscal year does not reach the
accumulated predicted net profit
within the compensation period,
Guangdong Provincial Freeway
Co.,Ltd. will compensate in cash
as agreed.
Completed on
Yes
time(Y/N)
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
21
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report of the Company has not been audited
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. Notes for the related information of “non-standard audit reports” last year by board of directors
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Litigations and arbitrations
Significant litigations and arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other lawsuits
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
X. Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI.Material related transactions
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
No such cases in the reporting period.
22
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporting period.
5. Transactions with related finance company, especially one that is controlled by the Company
√ Applicable □Not applicable
Deposit business
Related party Relationship Maximum Deposit Beginning The amount incurred Ending
daily deposit interest rate balance Total deposit Total amount balance
limitd（Ten range （Ten amount of withdrawn in （Ten
the current the current
thousand thousand thousand
period（Ten period（Ten
yuan） yuan） thousand thousand yuan）
yuan） yuan）
Guangdong
Controlled
Communicati
by the same 0.35%-
ons Group 300,000 239,396.61 298,189.83 254,255.77 283,330.67
parent 2.85%
Finance Co.,
company
Ltd
Loan business
Related party Relationship Beginning The amount incurred Ending
balance Total balance
Loan limit Total loan
Loant （Ten repayment （Ten
（Ten amount for
interest rate amount of
thousand the current thousand
thousand this period
range yuan） period（Ten yuan）
yuan） （Ten
thousand
thousand
yuan）
yuan）
Guangdong
Controlled
Communicati
by the same 2.95%-
ons Group 400,000 62,859.33 659.10 43,797.13 19,721.3
parent 3.40%
Finance Co.,
company
Ltd
Credit extension or other financial services
Related party Relationship Business type Total amount（Ten Actual amount incurred
thousand yuan） （Ten thousand
yuan）
Guangdong
Controlled by the same
Communications Credit extension 220,000 19,700
parent company
Group Finance Co.,
23
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Ltd
6. Transactions with related finance company controlled by the Company
□ Applicable √ Not applicable
No such cases in the reporting period.
7. Other significant related-party transactions
√ Applicable □Not applicable
1. The Proposal on Concerning the Company Daily Associated Transactions Predicted of 2023 was reviewd and
approved in the 7th meeting of the Tenth board of directors of the Company,Agree on the predicted daily
associated transactions for the company headquarters, wholly-owned and holding subsidiaries of 2023, whose
amount in total is RMB 58.6612 million .
2. The Proposal on Signing the Office Property Lease Contract of the 45th and the 46th Floors of Litong Plaza
was reviewd and approved in the 7th meeting of the Tenth board of directors of the Company, It’s agreed that
the Company will continue to lease the entire 43rd floor and 44th floor units of Litong Plaza (self-numbered
floors 45 and 46) as office space for use from Guangdong Litong Development Investment Co., Ltd, with a
lease period of 3 years from May 5, 2023 to May 4, 2026. The monthly rent standard is RMB 908,133.47 for the
period from May 5, 2023 to May 4, 2024, the monthly rent standard is RMB 935,400.05 for the period from
May 5, 2024 to May 4, 2025, and the monthly rent for the period from May 5, 2025 to May 4, 2026 is RMB
963,449.61.
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
Estimates announcement of the Daily
March 21,2023 www.cninfo.com.cn
Related Party Transaction of 2023
Announcement of related party
March 21,2023 www.cninfo.com.cn
transaction
XII. 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.
24
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
3. Finance management on commission
□Applicable √ Not applicable
No such cases in the reporting period.
4. Other significant contract
□ Applicable √ Not applicable
No such cases in the reporting period.
XIII. Explanation on other significant events
√Applicable □ Not applicable
In 2020, the Company acquired the 21% stake of Guangdong Guanghui Expressway Co., Ltd. held by
Guangdong Provincial Freeway Co., Ltd. in cash. The Company signed the "Profit Compensation Agreement
between Guangdong Provincial Expressway Development Co., Ltd. and Guangdong Provincial Freeway
Co.,Ltd." (hereinafter referred to as the "Profit Compensation Agreement") with the Guangdong Provincial
Freeway Co.,Ltd.and Guangdong Expressway, which made commitment on the future profitability of Guanghui
Company.
In view of the fact that during the performance compensation period, due to the impact of domestic
macroeconomic fluctuations, the net profit realized by Guanghui Company after deducting non-recurring profits
and losses during the performance compensation period did not reach the cumulative forecast net profit, which
triggered the compensation obligation stipulated in the Profit Compensation Agreement. In order to safeguard
the long-term interests of the Company and its shareholders, especially small and medium-sized shareholders,
taking into account the relevant arrangements of the two parties under the original agreement, and in accordance
with the relevant requirements of the Administrative Measures for the Restructuring of Major Assets of Listed
Companies and the consultation between the parties to the original agreement, the "Proposal on Changing the
Performance Commitment of Major Asset Restructuring Project in 2020 and Sinning the Supplementary
Agreement to the Profit Compensation Agreement " was deliberated and adopted in the 10thmeeting (interim)
of the 10th Board of Directors of the Company , agreeing to change the performance commitment of major
asset restructuring project in 2020 and sign the Supplementary Agreement to the Profit Compensation
Agreement with the Provincial Expressway. The performance compensation period for this restructuring had
been adjusted to 2020, 2021, and 2023. The Provincial Expressway promised that the net profit accumulated by
Guanghui Expressway after deducting non-recurring profits and losses in the three years of 2020, 2021 and
2023 shall not be less than 2,999,265,700 yuan.
[The "Proposal on Changing the Performance Commitment of Major Asset Restructuring Project in 2020
and Sinning the Supplementary Agreement to the Profit Compensation Agreement " was deliberated and passed
in the Company's first extraordinary general meeting of shareholders in 2023.】
For details of the matter, please refer to the "Announcement on Changing the Performance Commitment of
Major Asset Restructuring Project in 2020" disclosed on Cninfo Information Network
(www.cninfo.com.cn)(Announcement No.: 2023-18) on August 8, 2023, and the "Announcement of Resolution
of the First Provisional General Meeting of Shareholders in 2023" disclosed on August 24, 2023.
25
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
XIV. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
26
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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 Share Bonu Capitalizatio
Othe Subtota Proportio
n allotmen s n of common Quantity
r l n
t shares reserve fund
1.Shares with
-
conditional 438,833,395 20.99% -5,850 438,827,545 20.99%
5,850
subscription
1.State-
410,105,738 19.61% 410,105,738 19.61%
owned shares
2.State-
owned legal 21,712,738 1.04% 21,712,738 1.04%
person shares
3.Other
-
domestic 7,014,919 0.34% -5,850 7,009,069 0.34%
5,850
shares
Including ：
Domestic -
6,543,936 0.31% -4,214 6,539,722 0.31%
Legal person 4,214
shares
Domestic
-
natural 470,983 0.02% -1,636 469,347 0.02%
1,636
person shares
4.Foreign
0 0.00% 0 0.00%
shares
Including：
Foreign legal 0 0.00% 0 0.00%
person shares
Foreign
natural 0 0.00% 0 0.00%
person shares
II.Shares
with 1,651,972,73 1,651,978,58
79.01% 5,850 5,850 79.01%
unconditiona 1 1
l subscription
1.Common
1,303,324,05 1,303,329,90
shares in 62.34% 5,850 5,850 62.34%
6 6
RMB
2.Foreign
348,648,675 16.68% 348,648,675 16.68%
shares in
27
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
domestic
market
3.Foreign
shares in
0 0.00% 0 0.00%
foreign
market
4.Other 0 0.00% 0 0.00%
III. Total of 2,090,806,12 2,090,806,12
100.00% 0 0 100.00%
capital shares 6 6
Reasons for share changed
√ Applicable □Not applicable
1. During the reporting period, 4,214 shares of "domestic legal person shareholding" were converted into
"domestic natural person shareholding".
2. During the reporting period, the 1950" restricted shares held by domestic natural persons" held by the
resigned director Mr. Du Jun were converted into " unrestricted shares".
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Implementation progress of shares buy-back
□Applicable √Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable √Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
Number of
Initial Number of Restricted Reason for Date of
Shareholder Increased
Restricted Unrestricted Shares in the Restricted Restriction
Name Restricted Shares
Shares Shares This Term End of the Term Shares Removal
This Term
Outgoing
Du Jun 5,850 5,850 0 executives June 2023
locked up shares
Total 5,850 5,850 0 0 -- --
II. Securities issue and listing
□ Applicable √Not applicable
28
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total number of preferred
Total number of common shareholders that had
shareholders at the end of the 49,752 restored the voting right at 0
reporting period the end of the reporting
period (if any) (note 8)
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 shares un-restricted n
shareholder
held period -end period held shares held State
Amo
（%） of
unt
share
Guangdong
Communicatio State-owned
24.56% 513,485,480 410,105,738 103,379,742
n Group legal person
Co.,Ltd
Guangdong
Highway State-owned
22.30% 466,325,020 466,325,020
Construction legal person
Co., Ltd,
Shangdong
Expressway
State-owned
Investment 10.10% 211,069,245 211,069,245
legal person
Development
Co., Ltd.
Tibet Hetai
Enterprise State-owned
4.84% 101,214,574 101,214,574
Management legal person
Co., Ltd.
Guangdong
Provincial State-owned
2.53% 52,937,491 19,582,228.00 33,355,263
Freeway legal person
Co.,Ltd.
Overseas
HKSCC 0.92% 19,291,612 19,291,612
legal person
Domestic
natural
Feng Wuchu 0.80% 16,678,821 -6,695,584 16,678,821
person
shares
Xinyue Co., Overseas
0.63% 13,201,086 13,201,086
Ltd. legal person
29
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Orient State-owned
0.52% 10,775,913 19,400 10,775,913
securities legal person
Happy life
insurance Co., Other 0.50% 10,438,130 -12,547,100 10,438,130
Ltd.-Dividend
Strategic investor or general legal person becoming top-10
None
ordinary shareholder due to 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., Ltd., It
Related or acting-in-concert parties among shareholders above is unknown whether there is relationship between other
shareholders and whether they are persons taking concerted action
specified in the Regulations on Disclosure of Information about
Change in Shareholding of Shareholders of Listed Companies.
Above shareholders entrusting or entrusted with voting rights,
None
or waiving voting rights
Top 10 shareholders including the special account for
None
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
466,325,020.00 RMB Common shares 466,325,020.00
Co., Ltd,
Shangdong Expressway Investment
211,069,245.00 RMB Common shares 211,069,245.00
Development Co., Ltd.
Guangdong Communication Group
103,379,742.00 RMB Common shares 103,379,742.00
Co.,Ltd
Tibet Hetai Enterprise Management
101,214,574.00 RMB Common shares 101,214,574.00
Co., Ltd.
Guangdong Provincial Freeway
33,355,263.00 RMB Common shares 33,355,263.00
Co.,Ltd.
HKSCC 19,291,612.00 RMB Common shares 19,291,612.00
RMB Common shares 13,931,458
Feng Wuchu 16,678,821 Foreign shares placed in
2,747,363
domestic
Foreign shares placed in
Xinyue Co., Ltd. 13,201,086 13,201,086
domestic
Orient securities 10,775,913.00 RMB Common shares 10,775,913.00
Happy life insurance Co., Ltd.-
10,438,130.00 RMB Common shares 10,438,130.00
Dividend
Guangdong Communication Group Co., Ltd. is the parent
Explanation on associated relationship or consistent action
company of Guangdong Highway Construction Co., Ltd. ，
among the top 10 shareholders of non-restricted negotiable
Guangdong Provincial Freeway Co.,Ltd. and Xinyue Co., Ltd. ,It
shares and that between the top 10 shareholders of non-
is unknown whether there is relationship between other
restricted negotiable shares and top 10 shareholders
shareholders and whether they are persons taking concerted action
30
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
specified in the Regulations on Disclosure of Information about
Change in Shareholding of Shareholders of Listed Companies.
Top 10 ordinary shareholders conducting securities margin
None
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.
IV. Changes in shareholdings of directors, supervisors and executive officers
□ Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2022 Annual Report
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
31
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
32
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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.
33
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
III. Debt financing instruments of non-financial enterprises
√Applicable □ Not applicable
1.Basic information
In RMB 10,000
Intere
Servicing
Bond name Bond short name Bond code Issue day Value date Due day Bond balance st Trading
way
rate
Due payments
once a
year, The pri
Guangdong Provincial Expre ncipal and the
ssway Development Co., Ltd. 19 Guangdong February March 679,703,854.6 last instalment Interban
101900252 March 1,2019 4%
2019 first phase medium- Expressway MTN001 27,2019 1,2024 6 interest are pa k market
term notes id in one lump
sum on the re
demption date
.
Due payments
once a
year, The pri
Guangdong Provincial Expre ncipal and the
ssway Development Co., Ltd. 20 Guangdong March 749,147,101.9 last instalment Interban
102000367 March 13,2020 March 17,2020 3%
2020 first phase medium- Expressway MTN001 17,2025 5 interest are pa k market
term notes id in one lump
sum on the re
demption date
.
Applicable trading mechanism Circulation and transfer in the national inter-
34
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
bank bond market, its listing and circulation will be carried out in accordance with the relevant regulations
promulgated by the National Interbank Funding Center.
Overdue and unpaid bonds
□ Applicable √ Not applicable
2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor
□ Applicable √ Not applicable
3.Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
4 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
35
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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. 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 1.98 2.90 -31.72%
Debt ratio 46.25% 43.90% 2.35%
Quick ratio 1.98 2.89 -31.49%
At the same time rate of
Amount of this period Amount of last period
change
Net profit after deducting
91,368.36 74,304.02 22.97%
non-recurring profit and loss
EBITDA total debt ratio 28.03% 29.29% -1.26%
Time interest earned ratio 12.54 11.94 5.03%
Cash interest guarantee times 14.86 12.57 18.19%
EBITDATime interest earned
16.74 15.96 4.89%
ratio
Repayment of debt (%) 100.00% 100.00%
Payment of interest (%) 100.00% 100.00%
36
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.
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.
June 30,2023
In RMB
Items June 30,2023 January 1,2023
Current asset：
Monetary fund 5,284,849,991.90 4,290,581,490.78
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 108,862,469.85 108,368,797.56
Financing of receivables
Prepayments 4,797,746.85 7,785,192.95
Insurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable
Including：Interest receivable 56,736,432.76 34,456,244.64
Dividend receivable
Other receivable 45,903,912.26 1,205,472.90
Repurchasing of financial assets
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 34,733.27 2,042,395.28
Total of current assets 5,455,281,374.63 4,443,234,121.21
Non-current assets：
Loans and payment on other’s behalf disbursed
37
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items June 30,2023 January 1,2023
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 3,068,430,688.22 2,923,305,042.30
Other equity instruments investment 1,552,643,487.90 1,557,303,730.98
Other non-current financial assets 181,400,000.00 101,400,000.00
Property investment 2,557,585.69 2,668,144.93
Fixed assets 9,558,708,878.11 10,098,252,638.07
Construction in progress 1,287,072,029.02 753,565,502.12
Production physical assets
Oil & gas assets
Use right assets 30,342,505.71 4,077,555.43
Intangible assets 234,050,221.33 246,772,471.44
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 46,836,719.58 129,044,978.46
Other non-current asset 59,768,581.58 8,374,778.84
Total of non-current assets 16,021,810,697.14 15,824,764,842.57
Total of assets 21,477,092,071.77 20,267,998,963.78
Current liabilities
Short-term loans 430,387,597.20
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 167,332,578.88 197,788,782.77
Advance receipts 3,252,887.09 2,718,756.97
Contract liabilities
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 21,219,186.58 20,660,328.60
Tax payable 163,676,885.03 72,307,773.41
Other account payable 1,044,725,398.43 191,167,560.23
Including：Interest payable
Dividend payable 920,558,170.17 59,994,517.46
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 851,123,675.32 117,011,466.96
Other current liability 500,564,930.33 500,723,556.23
38
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items June 30,2023 January 1,2023
Total of current liability 2,751,895,541.66 1,532,765,822.37
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 5,868,719,950.00 5,566,595,350.00
Bond payable 749,147,101.95 1,428,381,232.94
Including：preferred stock
Sustainable debt
Lease liability 18,856,223.73 150,984.47
Long-term payable 2,022,210.11 2,517,493.12
Long-term remuneration payable to staff
Expected liabilities
Deferred income 237,249,225.25 61,082,981.63
Deferred income tax liability 305,873,349.54 307,825,916.58
Other non-current liabilities
Total non-current liabilities 7,181,868,060.58 7,366,553,958.74
Total of liability 9,933,763,602.24 8,899,319,781.11
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 743,059,586.56 743,133,557.03
Less：Shares in stock
Other comprehensive income 179,248,772.69 170,633,656.67
Special reserve
Surplus reserves 1,373,056,469.02 1,373,056,469.02
Common risk provision
Retained profit 4,688,808,520.14 4,698,029,354.08
Total of owner’s equity belong to the parent
9,074,979,474.41 9,075,659,162.80
company
Minority shareholders’ equity 2,468,348,995.12 2,293,020,019.87
Total of owners’ equity 11,543,328,469.53 11,368,679,182.67
Total of liabilities and owners’ equity 21,477,092,071.77 20,267,998,963.78
Legal Representative: Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
2.Parent Company Balance Sheet
In RMB
Items June 30,2023 January 1,2023
Current asset：
Monetary fund 2,707,888,802.08 1,813,035,761.84
Transactional financial assets
39
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items June 30,2023 January 1,2023
Derivative financial assets
Notes receivable
Account receivable 21,127,358.73 23,817,016.30
Financing of receivables
Prepayments 2,809,613.75 5,515,813.54
Other account receivable 1,286,164,460.20 1,542,022,671.18
Including：Interest receivable
Dividend receivable 45,903,912.26 36,905,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 111,143.99
Total of current assets 4,017,990,234.76 3,384,502,406.85
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 6,560,494,196.19 6,096,415,643.96
Other equity instruments investment 1,552,643,487.90 1,557,303,730.98
Other non-current financial assets
Property investment 2,305,447.44 2,416,006.68
Fixed assets 5,107,546,847.79 5,299,569,148.92
Construction in progress 208,907,444.68 152,388,974.47
Production physical assets
Oil & gas assets
Use right assets 29,423,746.22 3,069,576.00
Intangible assets 128,646,097.36 132,991,895.23
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 41,695,083.71 123,579,950.33
Other non-current asset
Total of non-current assets 13,631,662,351.29 13,367,734,926.57
Total of assets 17,649,652,586.05 16,752,237,333.42
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 84,341,061.59 94,446,623.15
Advance receipts 752,954.28 250,984.75
Contract Liabilities
Employees’ wage payable 7,395,204.74 8,103,399.09
Tax payable 5,618,530.69 4,643,917.73
40
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items June 30,2023 January 1,2023
Other account payable 1,332,431,588.92 362,996,135.95
Including：Interest payable
Dividend payable 920,558,170.17 25,694,517.46
Liabilities held for sales
Non-current liability due within 1 year 796,835,939.08 116,904,509.53
Other current liability 38,917.98 33,596.70
Total of current liability 2,227,414,197.28 587,379,166.90
Non-current liabilities：
Long-term loan 5,508,083,200.00 5,552,070,350.00
Bond payable 749,147,101.95 1,428,381,232.94
Including：preferred stock
Sustainable debt
Lease liability 18,705,239.26
Long-term payable 2,022,210.11 2,517,493.12
Long-term remuneration payable to staff
Expected liabilities
Deferred income 5,197,208.42 6,838,432.16
Deferred income tax liability 67,459,482.66 61,985,198.42
Other non-current liabilities
Total non-current liabilities 6,350,614,442.40 7,051,792,706.64
Total of liability 8,578,028,639.68 7,639,171,873.54
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 934,926,723.73 934,908,293.69
Less：Shares in stock
Other comprehensive income 179,248,772.69 170,633,656.67
Special reserve
Surplus reserves 1,193,084,201.46 1,193,084,201.46
Retained profit 4,673,558,122.49 4,723,633,182.06
Total of owners’ equity 9,071,623,946.37 9,113,065,459.88
Total of liabilities and owners’ equity 17,649,652,586.05 16,752,237,333.42
3.Consolidated Income statement
In RMB
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 2,340,436,775.08 2,057,420,809.68
Incl：Business income 2,340,436,775.08 2,057,420,809.68
Interest income
Insurance fee earned
Fee and commission received
41
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
II. Total business cost 921,351,272.48 879,520,254.68
Incl：Business cost 740,670,310.49 696,143,722.50
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 9,422,373.99 8,932,321.30
Sales expense
Administrative expense 80,023,845.71 85,773,267.04
R & D costs 81,651.82 1,368,887.22
Financial expenses 91,153,090.47 87,302,056.62
Including：Interest expense 109,161,060.69 123,517,238.10
Interest income 18,067,700.31 36,907,508.27
Add: Other income 6,449,973.78 8,178,352.38
Investment gain（“-”for loss） 181,402,127.67 162,320,728.99
Incl: investment gains from affiliates 109,631,134.53 101,561,222.92
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 -45,626,953.18
Impairment loss of assets
Assets disposal income 463,363.89
III. Operational profit（“-”for loss） 1,561,310,650.87 1,348,863,000.26
Add ：Non-operational income 2,148,292.85 5,821,631.65
Less: Non-operating expense 240,222.59 2,955,659.39
IV. Total profit(“-”for loss) 1,563,218,721.13 1,351,728,972.52
Less：Income tax expenses 369,040,383.81 290,224,512.53
V. Net profit 1,194,178,337.32 1,061,504,459.99
(I) Classification by business continuity
1.Net continuing operating profit 1,194,178,337.32 1,061,504,459.99
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 885,644,187.99 773,736,908.29
2.Minority shareholders’ equity 308,534,149.33 287,767,551.70
VI. Net after-tax of other comprehensive income 8,615,116.02 -34,872,070.60
Net of profit of other comprehensive income attributable to owners of 8,615,116.02 -34,872,070.60
the parent company.
42
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
（I）Other comprehensive income items that will not be reclassified
-3,495,182.31 -34,035,245.89
into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net as
sets
2.Other comprehensive income under the equity method investee can
not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-3,495,182.31 -34,035,245.89
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into profit or lo 12,110,298.33 -836,824.71
ss.
1.Other comprehensive income under the equity method investee can 12,110,298.33 -836,824.71
be reclassified 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
Net of profit of other comprehensive income attributable to Minority
shareholders’ equity
VII. Total comprehensive income 1,202,793,453.34 1,026,632,389.39
Total comprehensive income attributable to the owner of the parent
894,259,304.01 738,864,837.69
company
Total comprehensive income attributable minority shareholders 308,534,149.33 287,767,551.70
VIII. Earnings per share
（I）Basic earnings per share 0.42 0.37
(II)Diluted earnings per share 0.42 0.37
The current business combination under common control, the net profits of the combined party before achieved
net profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Miao Deshan
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
43
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 740,672,433.01 642,655,502.74
Incl：Business cost 244,287,384.51 251,072,086.53
Business tax and surcharge 3,726,508.48 3,509,918.91
Sales expense
Administrative expense 49,125,187.49 49,546,552.29
R & D expense
Financial expenses 110,048,379.46 95,640,651.97
Including：Interest expenses 121,332,718.54 115,831,785.91
Interest income 11,309,040.26 20,217,007.24
Add：Other income 2,607,245.65 2,295,878.36
Investment gain（“-”for loss） 596,720,630.99 791,681,986.64
Including: investment gains from affiliates 108,689,822.92 98,360,414.38
Financial assets measured at amortized cost cease to be
recognized as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets
Assets disposal income 463,363.89
II. Operational profit（“-”for loss） 932,812,849.71 1,037,327,521.93
Add ：Non-operational income 517,077.90 562,977.76
Less：Non -operational expenses 15,753.62
III. Total profit(“-”for loss) 933,314,173.99 1,037,890,499.69
Less：Income tax expenses 88,524,211.63 54,001,197.13
IV. Net profit 844,789,962.36 983,889,302.56
1.Net continuing operating profit 844,789,962.36 983,889,302.56
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 8,615,116.02 -34,872,070.60
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -3,495,182.31 -34,035,245.89
period
1.Re-
measurement of defined benefit plans of changes in net debt or
net assets
2.Other comprehensive income under the equity method invest
ee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-3,495,182.31 -34,035,245.89
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into pr 12,110,298.33 -836,824.71
ofit or loss
44
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
1.Other comprehensive income under the equity method invest 12,110,298.33 -836,824.71
ee can be reclassified 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 853,405,078.38 949,017,231.96
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
45
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,387,824,431.30 2,100,682,366.85
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned
Other cash received from business operation 239,874,283.43 67,435,536.39
Sub-total of cash inflow 2,627,698,714.73 2,168,117,903.24
Cash paid for purchasing of merchandise and services 93,721,829.45 131,225,559.09
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 208,391,670.68 201,663,653.64
Taxes paid 272,784,405.49 344,543,903.69
Other cash paid for business activities 38,883,617.41 47,133,520.52
Sub-total of cash outflow from business activities 613,781,523.03 724,566,636.94
Net cash generated from /used in operating activities 2,013,917,191.70 1,443,551,266.30
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 48,694,370.25 114,163,108.50
Net cash retrieved from disposal of fixed assets, intangible assets,
13,110.00 522,436.84
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
28,514,496.27
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 48,707,480.25 143,200,041.61
Cash paid for construction of fixed assets, intangible assets and
582,217,768.98 168,081,166.80
other long-term assets
Cash paid as investment 101,080,000.00 250,091,000.00
Net increase of loan against pledge
46
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 683,297,768.98 418,172,166.80
Net cash flow generated by investment -634,590,288.73 -274,972,125.19
III.Cash flow generated by financing
Cash received as investment 88,470,000.47
Including: Cash received as investment from minor shareholders 88,470,000.47
Cash received as loans 414,525,000.00 320,000,000.00
Other financing –related cash received 1,460,847.67 38,470,400.00
Sub-total of cash inflow from financing activities 504,455,848.14 358,470,400.00
Cash to repay debts 469,864,650.00 65,836,100.00
Cash paid as dividend, profit, or interests 415,505,541.67 367,159,468.70
Including: Dividend and profit paid by subsidiaries to minor
255,975,174.55 218,751,982.19
shareholders
Other cash paid for financing activities 8,327,523.02 6,242,513.89
Sub-total of cash outflow due to financing activities 893,697,714.69 439,238,082.59
Net cash flow generated by financing -389,241,866.55 -80,767,682.59
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 990,085,036.42 1,087,811,458.52
Add: balance of cash and cash equivalents at the beginning of term 4,284,688,231.33 2,955,183,190.55
VI ..Balance of cash and cash equivalents at the end of term 5,274,773,267.75 4,042,994,649.07
47
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 763,931,695.41 661,912,004.69
Tax returned
Other cash received from business operation 142,656,776.31 24,521,728.95
Sub-total of cash inflow 906,588,471.72 686,433,733.64
Cash paid for purchasing of merchandise and services 24,172,182.68 13,570,674.87
Cash paid to staffs or paid for staffs 62,195,705.48 60,633,887.05
Taxes paid 24,138,943.36 23,470,841.12
Other cash paid for business activities 55,091,483.76 236,627,095.73
Sub-total of cash outflow from business activities 165,598,315.28 334,302,498.77
Net cash generated from /used in operating activities 740,990,156.44 352,131,234.87
II. Cash flow generated by investing
Cash received from investment retrieving 60,623,900.00
Cash received as investment gains 499,852,096.70 693,296,160.51
Net cash retrieved from disposal of fixed assets, intangible assets,
13,110.00 517,888.00
and 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 investment activities 499,865,206.70 754,437,948.51
Cash paid for construction of fixed assets, intangible assets and
68,690,286.59 43,488,728.78
other long-term assets
Cash paid as investment 98,000,000.00 246,000,000.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 166,690,286.59 289,488,728.78
Net cash flow generated by investment 333,174,920.11 464,949,219.73
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts 25,339,650.00 32,001,100.00
Cash paid as dividend, profit, or interests 145,644,863.29 136,048,729.34
Other cash paid for financing activities 8,327,523.02 6,214,613.89
Sub-total of cash outflow due to financing activities 179,312,036.31 174,264,443.23
Net cash flow generated by financing -179,312,036.31 -174,264,443.23
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 894,853,040.24 642,816,011.37
Add: balance of cash and cash equivalents at the beginning of term 1,811,814,561.84 1,859,614,927.30
48
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
VI ..Balance of cash and cash equivalents at the end of term 2,706,667,602.08 2,502,430,938.67
49
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
I.Balance at
2,090,806,12 743,133,5 170,633,6 1,373,056, 4,698,02 9,075,65 2,293,020,019.8
the end of last 11,368,679,182.67
6.00 57.03 56.67 469.02 9,354.08 9,162.80 7
year
Add: Change
of
accountin
g policy
Correcting of
previous errors
Merger of
entities under
common
control
Other
II.Balance at 2,090,806,12 743,133,5 170,633,6 1,373,056, 4,698,02 9,075,65 2,293,020,019.8
11,368,679,182.67
the beginning 6.00 57.03 56.67 469.02 9,354.08 9,162.80 7
50
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
of current year
III.Changed in - -
8,615,116
the current -73,970.47 9,220,83 679,688. 175,328,975.25 174,649,286.86
.02
year 3.94 39
（1）Total
8,615,116 885,644, 894,259,
comprehensive 308,534,149.33 1,202,793,453.34
.02 187.99 304.01
income
（II）
Investment or
decreasing of 88,470,000.47 88,470,000.47
capital by
owners
1．Ordinary S
hares invested
88,470,000.47 88,470,000.47
by shareholder
s
2．Holders of
other equity in
struments inve
51
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
sted capital
3．Amount of
shares paid
and accounted
as owners’
equity
4．Other
（III）Profit - -
894,865, 894,865, -221,675,174.55 -1,116,540,196.48
allotment
021.93 021.93
1.Providing of
surplus
reserves
2.Providing
of common
risk provisions
3．Allotment
to the owners - -
894,865, 894,865, -221,675,174.55 -1,116,540,196.48
(or
021.93 021.93
shareholders)
52
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
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 shares)
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
53
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
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 -73,970.47 73,970.4 -73,970.47
7
IV. Balance at 2,090,806,12 743,059,5 179,248,7 1,373,056, 4,688,80 9,074,97 2,468,348,995.1 11,543,328,469.53
54
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
the end of this 6.00 86.56 72.69 469.02 8,520.14 9,474.41 2
term
55
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Amount in last year
In RMB
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
I.Balance at
2,090,806,12 713,460,518. 1,225,375, 4,760,618, 8,982,437,
the end of last 192,177,466.34 2,338,551,172.96 11,320,989,158.13
6.00 49 330.56 543.78 985.17
year
Add: Change
of
accounti 510,117.60 510,117.60 330.74 510,448.34
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
56
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
Other
II.Balance at
the beginning 2,090,806,12 713,460,518. 1,225,375, 4,761,128, 8,982,948,
192,177,466.34 2,338,551,503.70 11,321,499,606.47
of current 6.00 49 330.56 661.38 102.77
year
III.Changed - -
19,708,141.1
in the current -34,872,070.60 418,022,58 433,186,51 -28,984,430.49 -462,170,943.45
7
year 3.53 2.96
（1）Total
773,736,90 738,864,83
comprehensiv -34,872,070.60 287,767,551.70 1,026,632,389.39
8.29 7.69
e income
（II）
Investment or
decreasing of
capital by
owners
1 ． Ordinary
Shares invest
ed by shareho
lders
57
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares paid
and
accounted as
owners’
equity
4．Other
（III）Profit - -
1,191,759, 1,191,759, -316,751,982.19 -1,508,511,474.01
allotment
491.82 491.82
1.Providing
of surplus
reserves
2.Providing
of common
58
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
risk
provisions
3．Allotment
to the owners - -
1,191,759, 1,191,759, -316,751,982.19 -1,508,511,474.01
(or
491.82 491.82
shareholders)
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
59
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
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
comprehensiv
e income
carry-over
retained
60
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
19,708,141.1 19,708,141
（VI）Other 19,708,141.17
7 .17
IV. Balance
2,090,806,12 733,168,659. 1,225,375, 4,343,106, 8,549,761,
at the end of 157,305,395.74 2,309,567,073.21 10,859,328,663.02
6.00 66 330.56 077.85 589.81
this term
61
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2023
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained Oth
Share capital Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er sive Income reserve equity
stock ble debt
stoc
k
2,090,806,12 934,908,29 170,633,65 1,193,084,20 4,723,633,18 9,113,065,45
I.Balance at the end of last year
6.00 3.69 6.67 1.46 2.06 9.88
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current 2,090,806,12 934,908,29 170,633,65 1,193,084,20 4,723,633,18 9,113,065,45
year 6.00 3.69 6.67 1.46 2.06 9.88
- -
8,615,116.0
III.Changed in the current year 18,430.04 50,075,059.5 41,441,513.5
2
7 1
8,615,116.0 844,789,962. 853,405,078.
（I）Total comprehensive income
2 36 38
(II) Investment or decreasing of capital
by owners
1．Ordinary Shares invested by shareh
olders
2．Holders of other equity instruments
invested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other
62
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2023
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained Oth
Share capital Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er sive Income reserve equity
stock ble debt
stoc
k
- -
（III）Profit allotment 894,865,021. 894,865,021.
93 93
1.Providing of surplus reserves
2．Allotment to the owners (or - -
894,865,021. 894,865,021.
shareholders)
93 93
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)
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
63
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2023
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained Oth
Share capital Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er sive Income reserve equity
stock ble debt
stoc
k
2．Used this term
（VI）Other 18,430.04 18,430.04
2,090,806,12 934,926,72 179,248,77 1,193,084,20 4,673,558,12 9,071,623,94
IV. Balance at the end of this term
6.00 3.73 2.69 1.46 2.49 6.37
64
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Amount in last year
In RMB
The first half year of 2022
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained Oth
Share Capital Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er sive Income reserve equity
stock ble debt stoc
k
2,090,806,12 934,851,28 192,177,46 1,045,403,06 4,586,482,01 8,849,719,95
I.Balance at the end of last year
6.00 5.51 6.34 3.00 6.10 6.95
Add: Change of accounting policy 509,125.37 509,125.37
Correcting of previous errors
Other
II.Balance at the beginning of current 2,090,806,12 934,851,28 192,177,46 1,045,403,06 4,586,991,14 8,850,229,08
year 6.00 5.51 6.34 3.00 1.47 2.32
- - -
III.Changed in the current year 88,237.17 34,872,070. 207,870,189. 242,654,022.
60 26 69
-
983,889,302. 949,017,231.
（I）Total comprehensive income 34,872,070.
56 96
60
(II) Investment or decreasing of capital
by owners
1．Ordinary Shares invested by shareh
olders
2．Holders of other equity instruments
invested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other
（III）Profit allotment - -
65
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2022
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained Oth
Share Capital Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er sive Income reserve equity
stock ble debt stoc
k
1,191,759,49 1,191,759,49
1.82 1.82
1.Providing of surplus reserves
2．Allotment to the owners (or - -
1,191,759,49 1,191,759,49
shareholders)
1.82 1.82
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)
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
66
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The first half year of 2022
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained Oth
Share Capital Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er sive Income reserve equity
stock ble debt stoc
k
（VI）Other 88,237.17 88,237.17
2,090,806,12 934,939,52 157,305,39 1,045,403,06 4,379,120,95 8,607,575,05
IV. Balance at the end of this term
6.00 2.68 5.74 3.00 2.21 9.63
67
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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.,
68
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Ltd. (Group Co.) for holding and management without compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722
shares held by directors, supervisors and senior executives are temporarily frozen) were listed on February 5,
2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized
capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of
2000, i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date
was May 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).
69
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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., SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.and Shenzhen Garage Electric Pile
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 of the Board of Directors of the Company on August
28 ,2023.
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.
70
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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,Notice on Matters Related to the Implementation of New Enterprise Accounting Standards by Listed
Companies issued in 2018.
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,
71
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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
72
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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
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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
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 be measured 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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.
9.Financial instruments(Does not include impairment)
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(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
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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. west bank 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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 portfolio This portfolio is the contract quality guarantee fund and other funds
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
2-3 years 30
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.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.
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12. 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:
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
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.
② 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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.
13.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 (years) Estimated net salvage Annual depreciation
value 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
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.
14.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.
1）The classification of the fixed asset
The Company's fixed assets include roads and bridges, houses and buildings, machinery and equipment,
electronic equipment, transportation tools and other equipment.
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（2）Depreciation method
Expected useful Residual rate Annual depreciation
Type 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
Working flow basis 47.5 years 0%
Shuikou 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
The straight-line
Other 5 years 3%-5% 19.00%-19.40%
method
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.
15.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.
16.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;
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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.
17.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.
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.
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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
（2）The expenditure of internal research and development projects
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.
18. 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
be transferred to the current profits and losses.
19. 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;
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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.
20.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:
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.
21. Revenues
Accounting policies adopted for income recognition and measurement
(1) Revenue recognition principle
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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.
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
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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;
（4） 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
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
None
22. 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
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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.
23.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
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.
24,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
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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 V. 25.
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
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
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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.
25.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.
(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.
26. 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.
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(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.
27. Fair value measurement
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 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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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.
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
Applicable □Not applicable
The content and reasons for the change in accounting policies Approval process Remark
On November 30, 2022, the Ministry of Finance issued the No. 16
Interpretation of Accounting Standards for Business Enterprises (No. 31
[2022] Cai Hui).According to the provisions of the No. 16Interpretation, for
lease transactions in which the lessee initially recognizes lease liabilities and Adopted by resolution The Company
includes them in right-of-use assets on the beginning date of the lease period, by the seventh implements the relevant
the taxable temporary differences and deductible temporary differences meeting of the 10th provisions of the No. 16
arising from the initial recognition of assets and liabilities in the transaction Board of Directors on Interpretation from
shall be in accordance with the relevant provisions of Accounting Standard March 20, 2023. January 1, 2023.
for Business Enterprises No. 18 - Income Tax and other relevant provisions,
and the corresponding deferred tax liabilities and deferred tax assets are
recognized separately at the time of the transaction by enterprises.
On November 30, 2022, the Ministry of Finance issued the No. 16Interpretation of Accounting Standards
for Business Enterprises (No. 31[2022]Cai Hui) (hereinafter referred to as "No. 16Interpretation"). Adopted by
the resolution of the seventh meeting of the 10th Board of Directors of the Company on March 20, 2023, the
Company implements the relevant provisions of the No. 16Interpretation from January 1, 2023.
According to the No. 16Interpretation, for a lease transaction in which the lessee recognizes lease liabilities
and includes them in right-of-use assets on the beginning date of the lease period, the taxable temporary
differences and deductible temporary differences arising from the initial recognition of assets and liabilities in
the transaction shall be in accordance with the relevant provisions of Accounting Standard for Business
Enterprises No. 18 - Income Tax and other relevant provisions, and the corresponding deferred tax liabilities
and deferred tax assets are recognized separately at the time of the transaction by enterprises.
The impact of the implementation of the above regulation on the financial statement for the year ended January
1, 2023 and for comparable periods is as follows:
1). Impact on consolidated financial statement
In RMB
December 312022/January -June January 1,2023/January-June 2022
Items Influence number
2022（Before the change） （after change）
Long term share equity
2,923,368,667.84 2,923,305,042.30 -63,625.54
investment
Deferred income tax assets 128,179,543.02 129,044,978.46 865,435.44
Deferred income tax
306,806,527.72 307,825,916.58 1,019,388.86
liability
Retained profit 4,698,247,435.40 4,698,029,354.08 -218,081.32
Minority shareholders’
2,293,019,517.51 2,293,020,019.87 502.36
equity
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Investment income 162,384,354.53 162,320,728.99 -63,625.54
Income tax expenses 290,240,426.63 290,224,512.53 -15,914.10
2).Impact on Parent company financial statement
In RMB
December 31,2022/January-June 2022 January 1,2023/January-June 2022 Influence
Items
（（Before the change） （after change） number
Long term share equity
6,096,479,269.50 6,096,415,643.96 -63,625.54
investment
Deferred income tax assets 122,968,519.19 123,579,950.33 611,431.14
Deferred income tax
61,217,804.42 61,985,198.42 767,394.00
liability
Retained profit 4,723,852,770.46 4,723,633,182.06 -219,588.40
Investment income 791,745,612.18 791,681,986.64 -63,625.54
Income tax expenses 54,008,183.42 54,001,197.13 -6,986.29
（2）Significant estimates changes
□Applicable √Not applicable
（3）The information of the adjusting items related to the financial statements at the beginning of the year of
first implementation due to the first implementation of new accounting standards from 2023.Adjustment
description
Applicable □Not applicable
Note
On November 30,2022, the Ministry of Finance issued the No. 16Interpretation of Accounting Standards
for Business Enterprises (No. 31[2022]Cai Hui) (hereinafter referred to as "No. 16Interpretation"). According to
the relevant requirements of No.16, the company shall make adjustments to the relevant accounting policies
adopted accordingly.
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%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
None
2.Preferential tax treatment
None
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Amount in year-end Balance Year-beginning
Cash 56,693.11 43,420.71
Bank deposit 5,275,421,651.44 4,285,350,107.61
Among them: Deposits with financial
2,824,451,248.42 2,389,294,052.10
companies
Other monetary funds 516,123.20 515,903.01
Interest receivable 8,855,524.15 4,672,059.45
Total 5,284,849,991.90 4,290,581,490.78
Other note
1）. As of June 30, 2023, the interest receivable is RMB8,855,524.15 from interest accrued on seven-day call
deposits.
2）.As of June 30,2023,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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Accrual of bad
debt provision 3,143,664.00 2.74% 3,143,664.00 100.00% 3,143,664.00 2.80% 3,143,664.00 100.00%
by single
Including：
Accrual of bad
debt provision 111,455,816.08 97.26% 2,593,346.23 2.33% 108,862,469.85 109,016,714.23 97.20% 647,916.67 0.59% 108,368,797.56
by portfolio
Including：
Aging portfolio 111,455,816.08 97.26% 2,593,346.23 2.33% 108,862,469.85 109,016,714.23 97.20% 647,916.67 0.59% 108,368,797.56
Other
Total 114,599,480.08 5,737,010.23 108,862,469.85 112,160,378.23 3,791,580.67 108,368,797.56
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Accrual of bad debt provision by single：
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion Reason
Guangdong Taiheng
It is not expected to be
Expressway 3,143,664.00 3,143,664.00 100.00%
recovered
Development Co., Ltd.
Total 3,143,664.00 3,143,664.00
Accrual of bad debt provision by portfolio: Provision for bad debts according to the aging portfolio
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate (%
Within 1 year 95,338,891.41
1-2 years 4,200,258.00 210,012.90 5.00%
2-3 years 11,916,666.67 2,383,333.33 20.00%
Total 111,455,816.08 2,593,346.23
Note：
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
Disclosure by aging
In RMB
Aging Balance in year-end
Within 1 year 95,338,891.41
1-2 years 4,200,258.00
2-3 years 11,916,666.67
Over 3 year 3,143,664.00
3-4 years 2,077,392.00
4-5 years 1,066,272.00
Subtotal 114,599,480.08
Bad debt reserves 5,737,010.23
Total 108,862,469.85
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Opening Amount of change in the current period
Category Closing balance
balance Accrual Reversed or Write-off Other
98
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
collected
amount
Accrual of bad
debt provision 3,143,664.00 3,143,664.00
by single item
Accrual of bad
debt provision 647,916.67 1,945,429.56 2,593,346.23
by credit risk
Total 3,791,580.67 1,945,429.56 5,737,010.23
Of which the significant amount of the reversed or collected part during the reporting period
None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Proportion of Amount of
Amount of
Company Name total accounts ending balance
ending balance
receivable % for bad debts
Services Co., Ltd. 68,965,060.84 60.18%
1,083,333.33 0.95%
Guangdong Lulutong Traffic Development
4,200,258.00 3.67% 210,012.90
Co., Ltd.
11,916,666.67 10.40% 2,383,333.33
Guangdong Humen Bridge Co., Ltd. 16,631,182.47 14.51%
Guangdong Jingzhu Expressway Guangzhu
5,818,074.99 5.08%
North Section Co., Ltd.
Guangdong Taiheng Expressway 2,077,392.00 1.81% 2,077,392.00
Development Co., Ltd. 1,066,272.00 0.93% 1,066,272.00
Total 111,758,240.30 97.53%
（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 4,575,446.85 95.37% 7,645,192.95 98.20%
1-2 years 82,300.00 1.71%
2-3 years 140,000.00 1.80%
Over 3 years 140,000.00 2.92%
Total 4,797,746.85 7,785,192.95
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
None
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations Amount Aging Reasons for non- Proportion %
with the settlement
Company
Non- No settlement
Guangdong Guanyue Road & Bridge Co., Within 1
Related 2,792,608.35 conditions have 58.21
Ltd. year
party been reached
Non- No settlement
China Ping An Property Insurance Co., Ltd. Within 1
Related 1,444,860.00 conditions have 30.12
Guangdong Branch year
party been reached
Non- No settlement
Over 3
Excellence Appraisal Related 140,000.00 conditions have 2.92
years
party been reached
Guangzhou Branch of China Mobile Non- No settlement
Within 1
Communications Group Guangdong Co., Related 109,830.00 conditions have 2.29
year
Ltd. party been reached
Non- No settlement
Within 1
China Insurance Guangdong Branch Related 77,738.12 conditions have 1.62
year
party been reached
Total 4,565,036.47 95.15
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 45,903,912.26 1,205,472.90
Other receivable 10,832,520.50 33,250,771.74
Total 56,736,432.76 34,456,244.64
（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 No.1 Limited 1,205,472.90 1,205,472.90
partnership enterprise
China Everbright Bank Co., Ltd 44,698,439.36
Total 45,903,912.26 1,205,472.90
2）Significant dividend receivable aged over 1 year
In RMB
Balance in Whether with
Items Aging Reasons for non-recovery
year-end impairment and the
100
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
judgment basis
Guangdong Radio and Television The partnership agreement expires No, it can be
Networks investment No.1 Limited 1,205,472.90 4-5 years and can be recovered after the recovered in the
partnership enterprise extension procedures are completed future
Total 1,205,472.90
3）The bad debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified
In RMB
Nature Balance in year-end Balance Year-beginning
Securities trading settlement funds 30,844,110.43 30,844,110.43
Petty cash 4,489,023.58 4,017,944.81
Highway maintenance expenditure 141,431,005.33 97,749,481.71
Deposit 2,882,022.39 26,630,350.18
Other 3,461,474.53 2,602,476.75
Total 183,107,636.26 161,844,363.88
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Bad Debt Reserves Expected credit losses Expected credit loss Total
for the entire duration
over the next 12 over life (no credit
(credit impairment
months impairment)
occurred)
Balance as at January
97,749,481.71 30,844,110.43 128,593,592.14
1,2023
Balance as at January
1,2023 in current
This period of
43,681,523.62 43,681,523.62
provision
Balance as at June
141,431,005.33 30,844,110.43 172,275,115.76
30,2023
Loss provision changes in current period, change in book balance with significant amount
□Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Book balance
Within 1 year(Including 1 year） 147,426,676.53
1-2 years 1,410,372.20
2-3 years 271,243.57
Over 3 years 33,999,343.96
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
3-4 years 1,713,224.35
4-5 years 26,560.70
Over 5 years 32,259,558.91
Total 183,107,636.26
3） 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 RMB43,681,523.62; and the amount of bad debt reserve
recovered or reversed in the current period is RMB0.00.
Where the current bad debts back or recover significant amounts:None
4） Other account receivables actually cancel after write-off
None
5） Other receivables are classified according to the nature
In RMB
Proportion of the
total year end Closing balance
Closing
Name Nature Aging balance of the of bad debt
balance
accounts provision
receivable(%)
Department of
Highway maintenance
Transport of 141,431,005.33 Within 1 year 77.24% 141,431,005.33
expenditure
Guangdong Province
Kunlun Securities Securities trading settleme
30,844,110.43 Over 5 years 16.84% 30,844,110.43
Co.,Ltd nt funds
Guangdong Litong
Real Estates Rent deposit 1,816,266.94 Within 1 year 0.99%
Investment Co., Ltd.
Guangdong Litong
Real Estates Vehicle parking deposit 22,980.00 2-3 years 0.01%
Investment Co., Ltd.
Guangdong
Expressway Media Advertising revenue 693,103.73 Within 1 year 0.38%
Co., Ltd.
Guangdong
Expressway Media Water and electricity 2,119.81 Within 1 year
Co., Ltd.
Guangdong
Provincial Freeway Current account 463,491.88 Over 5 years 0.25%
Co.,Ltd.
Total 175,273,078.12 95.71% 172,275,115.76
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
None
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
5.Other current assets
I n RMB
Items
Year-end balance Year-beginning balance
Advance tax payment 34,733.27 1,931,251.29
VAT retention tax credits 111,143.99
Total 34,733.27 2,042,395.28
Other note：
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
6. Long-term equity investment
In RMB
Increase/decrease
Investment profit
Closing
Adjustment of Cash bonus or Withdrawal
and loss Changes balance of
Investees Opening balance Additional Negative other profits of Closing balance
recognized under of other Other impairment
comprehensive announced to impairment
investment investment equity provision
the equity income issue provision
method
I. Joint venture
2. Affiliated Company
Zhaoqing
Yuezhao
310,209,765.87 30,133,975.22 340,343,741.09
Highway Co.,
Ltd.
Guangdong
Jiangzhong
446,883,150.40 45,000,000.00 6,731,118.49 16,005.85 4,627,613.17 494,002,661.57
Expressway Co.,
Ltd.
Ganzhou
Gankang
163,154,438.00 9,568,563.16 172,723,001.16
Expressway Co.,
Ltd.
Ganzhou Kangda
Expressway Co., 246,268,935.13 20,692,056.64 266,960,991.77
Ltd.
Shenzhen Huiyan
Expressway Co., 348,669,767.32 14,856,921.37 363,526,688.69
Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Guoyuan
Securities Co., 987,867,627.42 22,017,218.07 12,110,298.33 2,424.19 15,522,387.30 1,006,475,180.71
Ltd.
Guangdong
Yuepu Small
219,031,496.39 4,689,969.97 223,721,466.36
Refinancing Co.,
Ltd(Note)
Hunnan Lianzhi
Technology 97,539,945.74 2,636,209.56 -92,400.51 100,083,754.79
Co., .Ltd.
SPIC Yuetong
Qiyuan Chip
Power 4,981,238.50 -360,145.07 4,621,093.43
Technology Co.,
Ltd.
Shenzhen Garage
Electric Pile
98,698,677.53 -1,334,752.88 1,391,816.00 95,972,108.65
Technology Co.,
Ltd
Subtotal 2,923,305,042.30 45,000,000.00 109,631,134.53 12,110,298.33 -73,970.47 21,541,816.47 3,068,430,688.22
Total 2,923,305,042.30 45,000,000.00 109,631,134.53 12,110,298.33 -73,970.47 21,541,816.47 3,068,430,688.22
Other note
Guoyuan Securities Co., Ltd. implements the provisions of the "No. 16Interpretation of Accounting Standards for Business Enterprises" in the current period,
retrospectively adjusts the financial statement of the previous period, and the Company retrospectively adjusts the investment amount in Guoyuan Securities Co.,
Ltd.at the beginning of the period according to the shareholding ratio.
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7.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co., Ltd. 775,045,413.21 779,705,656.29
Guangdong Radio and Television
Networks investment No.1 Limited 55,365,396.61 55,365,396.61
partnership enterprise
China Everbright Bank Co., Ltd. 722,232,678.08 722,232,678.08
Huaxia Securities Co., Ltd.（Notes1）
Huazheng Asset Management Co., Ltd.
（Notes2）
Total 1,552,643,487.90 1,557,303,730.98
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of Reasons for Reasons for
other designation as other
Dividend consolidated measured at fair consolidated
Cumulative Cumulative
Items income income value and changes income
gain loss
recognized transferred to included in other transferred to
retained comprehensive retained
earnings income earnings
Non-
Guangle
transactional
Expressway Co., 26,551,300.00 26,697,111.48
purpose for
Ltd.
shareholding
Guangdong
Radio and
Television Non-
Networks transactional
5,365,396.61
investment No.1 purpose for
Limited shareholding
partnership
enterprise
Non-
China Everbright transactional
44,698,439.36 204,671,801.28
Bank Co., Ltd. purpose for
shareholding
Non-
Huaxia Securities transactional
5,400,000.00
Co., Ltd. purpose for
shareholding
Huazheng Asset Non-
Management Co., 1,620,000.00 transactional
Ltd. purpose for
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
shareholding
Total 71,249,739.36 236,734,309.37 7,020,000.00
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 1.62 million yuan for impairment in respect of this long-term
equity investment of 1.62 million yuan.
8.Other non-current financial assets
In RMB
Items Closing balance Opening balance
Classified as financial assets measured at
fair value and whose changes are 181,400,000.00 101,400,000.00
included in the current profit and loss
Total 181,400,000.00 101,400,000.00
Other note：
9. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Items Houses and buildings Land use right Construction in process Total
I. Original value
1.Opening balance 12,664,698.25 2,971,831.10 15,636,529.35
2.Increased amount of
the period
（1）Outsourcing
(2)Inventory, Fixed
assets and
Construction project
into
(3) )Increased of
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Enterprise
consolidation
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 2,971,831.10 15,636,529.35
II.Accumulated
depreciation
accumulated
amortization
1.Opening balance 10,989,739.14 1,978,645.28 12,968,384.42
2.Increased amount of
73,774.56 36,784.68 110,559.24
the period
(1)Withdrawal or
73,774.56 36,784.68 110,559.24
amortization
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 11,063,513.70 2,015,429.96 13,078,943.66
III. Impairment
provision
1.Opening balance
2.Increased amount of
the period
（1）Withdrawal
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
4.Closing balance
IV. Book value
1.Closing book value 1,601,184.55 956,401.14 2,557,585.69
2.Opening book 1,674,959.11 993,185.82 2,668,144.93
(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
Transportation and other ancillary
Houses and Building 923,873.94
facilities, Not accreditation
10. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 9,552,205,782.97 10,098,252,638.07
liquidation of fixed assets 6,503,095.14
Total 9,558,708,878.11 10,098,252,638.07
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(1) List of fixed assets
In RMB
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway equipment and Total
Expressway buildings equipment equipment
Expressway Guangzhu
other
section
I. Original price
1.Opening balance 1,460,270,190.66 10,916,901,136.52 6,824,139,977.48 5,136,471,234.45 664,476,347.75 1,849,144,772.30 61,642,618.63 142,268,138.54 27,055,314,416.33
2.Increased amount
-659,820.18 503,520.00 1,250,706.34 2,009,004.66 3,103,410.82
of the period
（1）Purchase 49,300.00 1,250,706.34 2,009,004.66 3,309,011.00
（2）Transfer of
project under 454,220.00 454,220.00
construction
(3)Increased of
Enterprise
consolidation
（4）Other -659,820.18 -659,820.18
3.Decreased amount
14,920,857.18 36,073,395.95 787,665.00 4,287,225.71 56,069,143.84
of the period
（1）Disposal or
14,920,857.18 36,073,395.95 787,665.00 4,287,225.71 56,069,143.84
scrap
（2）Disposition
subsidiary
（3）Other out 659,820.18
4.Closing balance 1,460,270,190.66 10,916,901,136.52 6,824,139,977.48 5,136,471,234.45 648,895,670.39 1,813,574,896.35 62,105,659.97 139,989,917.49 27,002,348,683.31
II. Accumulated
depreciation
110
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway equipment and Total
Expressway buildings equipment equipment
Expressway Guangzhu
other
section
1.Opening balance 1,460,270,190.66 5,857,558,616.40 4,285,503,165.86 3,319,516,101.13 480,209,669.57 1,409,241,923.31 47,930,132.30 92,710,665.93 16,952,940,465.16
2.Increased amount of
167,001,611.98 205,719,649.48 95,478,011.19 15,431,227.08 51,663,388.65 1,129,558.43 6,195,843.97 542,619,290.78
the period
（1）Withdrawal 167,001,611.98 205,719,649.48 95,478,011.19 15,431,227.08 51,663,388.65 1,129,558.43 6,195,843.97 542,619,290.78
（2）Other
3.Decreased amount
11,290,376.08 33,435,034.30 734,341.75 4,078,416.57 49,538,168.70
of the period
(1)Disposal or scrap 11,290,376.08 33,435,034.30 734,341.75 4,078,416.57 49,538,168.70
（2）Disposition
subsidiary
4.Closing balance 1,460,270,190.66 6,024,560,228.38 4,491,222,815.34 3,414,994,112.32 484,350,520.57 1,427,470,277.66 48,325,348.98 94,828,093.33 17,446,021,587.24
III.Impairment
provision
1.Opening balance 2,889,394.16 1,231,918.94 4,121,313.10
2.Increased amount of
the period
(1)Withdrawal
3.Decreased amount
of the period
(1)Disposal or scrap
4.Closing balance 2,889,394.16 1,231,918.94 4,121,313.10
IV. Book value
111
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway equipment and Total
Expressway buildings equipment equipment
Expressway Guangzhu
other
section
1.Closing book value 4,892,340,908.14 2,332,917,162.14 1,721,477,122.13 161,655,755.66 384,872,699.75 13,780,310.99 45,161,824.16 9,552,205,782.97
2.Opening book 5,059,342,520.12 2,538,636,811.62 1,816,955,133.32 181,377,284.02 438,670,930.05 13,712,486.33 49,557,472.61 10,098,252,638.07
112
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(2)Temporarily idle fixed assets
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
House and
6,176,339.21 4,767,637.50 1,408,701.71
buildings
Machinery
2,322,167.00 1,090,248.06 1,231,918.94
equipment
(3) Fixed assets leased out from operation lease
None
（4） Details of fixed assets failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
House and buildings 145,880,426.60
facilities，Not accreditation.
（5）liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
House and buildings 3,630,481.10
Machinery equipment 2,638,361.65
Transportation equipment 25,443.25
Office equipment and other 208,809.14
Total 6,503,095.14
11. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 1,287,072,029.02 753,565,502.12
Total 1,287,072,029.02 753,565,502.12
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Reconstruction and
Expansion of Nansha-
Zhuhai section of 1,021,162,978.77 1,021,162,978.77 553,543,942.17 553,543,942.17
Guangzhou-Macao
Expressway
Reconstruction and
Expansion of Fokai
208,792,748.04 208,792,748.04 152,274,277.83 152,274,277.83
Expressway Sanbao to
Shuikou
Jiangxi-Shenzhen
high-speed railway 15,664,172.98 15,664,172.98 15,664,172.98 15,664,172.98
cross-section
113
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
expansion project
Guangzhou-Shantou
Railway Crossing 15,098,082.43 15,098,082.43 10,576,570.43 10,576,570.43
project
Boluo Central Station
office and living
6,406,068.37 6,406,068.37 3,768,689.37 3,768,689.37
facilities renovation
and expansion project
Tanwei Bridge Ship
1,749,246.00 1,749,246.00 1,749,246.00 1,749,246.00
Collision Project
Other 18,198,732.43 18,198,732.43 15,988,603.34 15,988,603.34
Total 1,287,072,029.02 1,287,072,029.02 753,565,502.12 753,565,502.12
114
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(2) Changes of significant construction in progress
In RMB
Including:
Sourc
Transferr capitalizatio Capitalizati
Other Capitalizatio e
Name of Opening ed to Proportion Project n of on of
Budget Increase decreas End balance n of of
project balance fixed % process interest interest
e interest fundin
assets this rate (%)
g
period
Reconstructi
on and
Expansion of
Nansha-
13,735,989,200. 553,543,942. 467,619,036. 1,021,162,978. 31,820,755.8 21,918,319.
Zhuhai 7.43% 7.43% 2.91% Other
00 17 60 77 4 01
section of
Guangzhou-
Macao
Expressway
Reconstructi
on and
Expansion of
3,426,210,000.0 152,274,277. 56,518,470.2 208,792,748.0 75,533,679.3 2,318,123.5
Fokai 80.76% 93.00% 3.30% Other
0 83 1 4 3 1
Expressway
Sanbao to
Shuikou
Jiangxi-
Shenzhen
high-speed
15,664,172.9 100.00
railway 16,966,900.00 15,664,172.98 92.32% Other
8 %
cross-section
expansion
project
Guangzhou-
Shantou
10,576,570.4 100.00
Railway 21,460,000.00 4,521,512.00 15,098,082.43 70.35% Other
3 %
Crossing
project
115
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Boluo
Central
Station
office and
living
17,000,000.00 3,768,689.37 2,637,379.00 6,406,068.37 37.68% 37.68% Other
facilities
renovation
and
expansion
project
Tanwei
Bridge Ship
50,000,000.00 1,749,246.00 1,749,246.00 3.50% 3.50 Other
Collision
Project
17,267,626,100. 737,576,898. 531,296,397. 1,268,873,296. 107,354,435. 24,236,442.
Total
00 78 81 59 17 52
116
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(3)Provision for impairment of construction projects in the current period
None
（4）Engineering Materials：None
None
12.Use right assets
In RMB
Machinery Transportation Other
Items House and buildings Total
equipment equipment
I. Original price
1.Opening balance 21,487,031.29 357,112.19 1,007,747.00 22,851,890.48
2.Increased amount of the
30,634,734.72 673,169.06 31,307,903.78
period
（1）New lease 30,634,734.72 673,169.06 31,307,903.78
（2）Other
3.Decreased amount of
21,487,031.29 21,487,031.29
the period
（1）Transfer or hold for
sale
（2）Disposal subsidiary
（3）Other out 21,487,031.29 21,487,031.29
4.Closing balance 30,634,734.72 357,112.19 673,169.06 1,007,747.00 32,672,762.97
II. Accumulated
depreciation
1.Opening balance 18,417,455.29 142,844.88 214,034.88 18,774,335.05
2.Increased amount of the
4,785,441.30 35,711.22 168,292.26 53,508.72 5,042,953.50
period
（1）Withdrawal 4,785,441.30 35,711.22 168,292.26 53,508.72 5,042,953.50
（2）Other increase
3.Decreased amount of the
21,487,031.29 21,487,031.29
period
（1）Disposition
（2）Transfer or hold for
sale
（3）Other out 21,487,031.29 21,487,031.29
4.Closing balance 1,715,865.30 178,556.10 168,292.26 267,543.60 2,330,257.26
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
（1）Withdrawal
（2）Other increase
3.Decreased amount of the
period
（1）Disposition
（2）Transfer or hold for
sale
4.Closing balance
117
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Machinery Transportation Other
Items House and buildings Total
equipment equipment
IV. Book value
1.Closing book value 28,918,869.42 178,556.09 504,876.80 740,203.40 30,342,505.71
2.Opening book value 3,069,576.00 214,267.31 793,712.12 4,077,555.43
13. Intangible assets
(1) List of intangible assets
In RMB
Non-patented The Turnpike
Items Land use right Patent right Total
technology franchise
I. Original price
1.Opening balance 2,701,738.76 38,254,516.12 318,348,741.86 359,304,996.74
2.Increased amount of the
83,247.96 83,247.96
period
(1) Purchase 83,247.96 83,247.96
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of
11,005,016.40 11,005,016.40
the period
（1）Disposal 11,005,016.40 11,005,016.40
（2）Government
subsidies cut
（3）Disposal subsidiary
4.Closing balance 2,701,738.76 27,332,747.68 318,348,741.86 348,383,228.30
II.Accumulated
amortization
1.Opening balance 2,366,543.74 32,357,841.52 77,808,140.04 112,532,525.30
2.Increased amount of the
7,705.62 1,003,484.47 11,794,307.98 12,805,498.07
period
(1) Withdrawal 7,705.62 1,003,484.47 11,794,307.98 12,805,498.07
3.Decreased amount of
11,005,016.40 11,005,016.40
the period
（1）Disposal 11,005,016.40 11,005,016.40
（2）Disposal subsidiary
118
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Non-patented The Turnpike
Items Land use right Patent right Total
technology franchise
4.Closing balance 2,374,249.36 22,356,309.59 89,602,448.02 114,333,006.97
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
1.Closing book value 327,489.40 4,976,438.09 228,746,293.84 234,050,221.33
2.Opening book value 335,195.02 5,896,674.60 240,540,601.82 246,772,471.44
At the end of this period, there is no intangible assets formed through the company's internal research and At the
end of this period, the intangible assets formed through the company's internal research and development
accounted for 0.00% of the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
In RMB
Reason for not obtaining the title
Items Book value
certificate
Gonghe Town Land 327,489.40 Reasons left over from history
14. 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
9,858,323.33 2,464,580.84 7,912,893.77 1,978,223.45
provisions
Deductible loss 25,253,836.36 6,313,459.09 363,420,806.96 90,855,201.74
Asset appraisal,
appreciation,
106,518,448.68 26,629,612.17 120,375,258.24 30,093,814.56
depreciation and
amortization
Deferred income 15,980,161.74 3,995,040.44 21,009,212.70 5,252,303.27
119
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Operation lease 29,736,108.16 7,434,027.04 3,461,741.75 865,435.44
Total 187,346,878.27 46,836,719.58 516,179,913.42 129,044,978.46
(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 236,734,309.37 59,183,577.34 241,394,552.45 60,348,638.11
instruments
Deductible temporary
differences in the
916,831,006.67 229,207,751.66 965,577,119.54 241,394,279.90
formation of asset
impairment
Difference of
amortization method of 11,048,885.57 2,762,221.40 9,854,438.83 2,463,609.71
franchise of toll road
Changes in the fair
value of trading 10,400,000.00 2,600,000.00 10,400,000.00 2,600,000.00
financial assets
Tax accounting
difference of use right 30,342,505.71 7,585,626.43 4,077,555.45 1,019,388.86
asset
Tax accounting
differences of projects 18,136,690.84 4,534,172.71
under construction
Total 1,223,493,398.16 305,873,349.54 1,231,303,666.27 307,825,916.58
(3) Deferred income tax assets or liabilities listed by net amount after off-set
None
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 37,864,110.43 37,864,110.43
Deductible loss 21,327,524.22 18,536,190.43
Total 59,191,634.65 56,400,300.86
(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 in year-begin Remark
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 3,889,857.99
2027 4,326,917.36 4,326,917.36
2028 2,791,333.79
Total 21,327,524.22 18,536,190.43
120
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
15 .Other non-current assets
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision Book value Book balance Provision Book value
for for
devaluation devaluation
Prepaid engineering fees 57,853,104.62 57,853,104.62 6,258,116.72 6,258,116.72
Prepaid business tax 1,915,476.96 1,915,476.96 2,116,662.12 2,116,662.12
Total 59,768,581.58 59,768,581.58 8,374,778.84 8,374,778.84
Other note：
Note
16. Short-term Borrowing
（1）Short-term Borrowing
In RMB
Items Balance in year-end Balance Year-beginning
Credit Borrowing 430,000,000.00
Interest payable not due 387,597.20
Total 430,387,597.20
Note：
(2) Situation of Overdue Outstanding Short-Term Borrowing
None
17.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 35,191,561.22 106,284,617.63
1-2 years（including2 years） 48,777,577.09 15,315,242.17
2-3 years（including 3 years） 9,891,578.33 2,693,624.18
Over 3 years 73,471,862.24 73,495,298.79
Total 167,332,578.88 197,788,782.77
（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
17,466,700.00 Unsettled
Management Dept
Heshan Land and resources Bureau 9,186,893.60 Unsettled
Poly Changda Engineering Co., Ltd. 5,415,553.30 Unsettled
Foshan Chancheng District, Zhang Cha
4,626,817.32 Unsettled
Sub-district Office
Total 67,203,562.43
121
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
18. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 2,169,988.91 1,913,639.06
1-2 years（Including 2 years） 1,082,898.18 805,117.91
Total 3,252,887.09 2,718,756.97
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Hebei Jianhong Power Engineering Co.,
1,082,898.18 Unsettled
Ltd.
Total 1,082,898.18
19. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the current Decrease in the current
Year-end balance
balance period period
I. Short-term
20,660,328.60 186,686,717.85 187,605,961.94 19,741,084.51
compensation
II.Post-
employment benefits -
32,786,473.09 31,308,371.02 1,478,102.07
defined contribution pl
ans
III. Dismissal benefits 1,315,216.92 1,315,216.92
Total 20,660,328.60 220,788,407.86 220,229,549.88 21,219,186.58
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the current Decrease in the
Year-end balance
balance period current period
1.Wages, bonuses, allowances
465,063.49 136,477,235.72 136,477,235.72 465,063.49
and subsidies
2.Employee welfare 8,521,719.59 8,521,719.59
3. Social insurance premiums 17,057,493.93 17,032,657.59 24,836.34
Including ：Medical
10,213,027.92 10,189,709.40 23,318.52
insurance
Work injury insurance 506,588.92 505,071.10 1,517.82
Other 6,337,877.09 6,337,877.09
4.Public reserves for housing 19,702,163.00 19,702,163.00
122
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
5.Union funds and staff
17,883,045.40 4,329,599.11 5,273,679.54 16,938,964.97
education fee
8.Other 2,312,219.71 598,506.50 598,506.50 2,312,219.71
Total 20,660,328.60 186,686,717.85 187,605,961.94 19,741,084.51
（3）Defined contribution plans listed
In RMB
Balance Year- Increase in this period Payable in this period Balance in year-end
Items
beginning
1. Basic old-age
19,582,722.78 19,540,840.38 41,882.40
insurance premiums
2.Unemployment
791,820.39 789,225.18 2,595.21
insurance
3.Enterprise annuity
12,411,929.92 10,978,305.46 1,433,624.46
payment
Total 32,786,473.09 31,308,371.02 1,478,102.07
20. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 12,628,710.29 9,619,067.45
148,023,789.18 58,889,929.38
Enterprise Income tax
Individual Income tax 550,351.13 2,552,347.21
City Construction tax 788,554.59 633,666.06
Education subjoin 383,867.08 306,387.03
Locality Education subjoin 237,270.58 185,315.25
Vehicle and vessel tax
Land use tax 523,762.40
Property tax 504,597.91 60,799.58
Stamp tax 35,981.87 60,261.45
Total 163,676,885.03 72,307,773.41
21.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 920,558,170.17 59,994,517.46
Other account payable 124,167,228.26 131,173,042.77
Total 1,044,725,398.43 191,167,560.23
（1）Interest payable
None
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 920,558,170.17 25,694,517.46
123
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Dividends payable- Guangdong
11,550,000.00
Provincial Freeway Co.,Ltd.
Dividends payable-Guangdong Zhujiang
21,000,000.00
Highway and Bridge Investment Co., Ltd
Dividends payable-HZCI 1,750,000.00
Total 920,558,170.17 59,994,517.46
Other explanations, including significant dividends payable that have not been paid for more than 1 year, it shall
disclose the reasons for non-payment:
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 25,693,148.24 yuan for more a year in unpaid dividends to shareholders over the year
was mainly due to non- payment of shareholder dividends did not provide information on interest- bearing bank,
did not share reform of shareholders to receive dividends or provide application
to receive dividends the bank information is incorrect, resulting in failure to pay a dividend or refund.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Estimated project cost 33,034,549.95 40,097,538.05
Deposit, warranty and security deposit 64,237,381.43 64,205,413.61
Other 26,895,296.88 26,870,091.11
Total 124,167,228.26 131,173,042.77
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Poly Changda Highway Engineering Co.,
20,101,922.48 The settlement conditions are not met
Ltd.
Yayao to Xiebian extension 12,499,448.48 The settlement conditions are not met
Guangdong Guanyue Road & Bridge
7,954,762.80 The settlement conditions are not met
Co., Ltd.
CCCC First Navigation Engineering
6,604,491.16 The settlement conditions are not met
Bureau Co., Ltd.
China Railway Tunnel Group Co., Ltd. 5,711,835.48 The settlement conditions are not met
Total 52,872,460.40
22. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 145,147,041.19 72,870,082.19
Payable Bonds due within 1 year 695,329,608.09 40,679,999.99
Long-term payable due within 1 year 495,283.01 944,339.62
Lease liabilities due within 1 year 10,151,743.03 2,517,045.16
Total 851,123,675.32 117,011,466.96
23.Other current liabilities
In RMB
124
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Items Balance year-end Year-beginning balance
Tax to be rewritten 169,097.00 600,639.56
Entrusted loans and interest 500,395,833.33 500,122,916.67
Total 500,564,930.33 500,723,556.23
24. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loans 14,525,000.00
Credit loan 6,008,445,000.00 5,619,259,650.00
Interest payable when not due 5,421,991.19 5,680,782.19
Less:Long-term loans due within one year（Note
-145,147,041.19 -72,870,082.19
V.22）
Total 5,868,719,950.00 5,566,595,350.00
25.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1,428,850,956.61 1,428,381,232.94
Interest payable when not due 15,625,753.43 40,679,999.99
Less:Long-term loans due within one year（Note
-695,329,608.09 -40,679,999.99
V.22）
Total 749,147,101.95 1,428,381,232.94
125
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
（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 Overflow
Withdraw Pay in current Closing
Name of the bond Book value Issue date Period Issue amount Opening balance current discount
interest at par period balance
issue amount
19 Guangdong
2019.3.1-
Expressway 680,000,000.00 2019.2.27 680,000,000.00 702,279,764.69 13,488,219.16 -227,377.67 27,200,000.00 688,795,361.52
2024.3.1
MTN001
20 Guangdong
2020.3.17-
Expressway 750,000,000.00 2020.3.13 750,000,000.00 766,781,468.24 11,157,534.28 -242,346.00 22,500,000.00 755,681,348.52
2025.3.17
MTN001
Less: Bonds
payable due within
-40,679,999.99 695,329,608.09
one year（Note
VII.22）
Total 1,430,000,000.00 1,428,381,232.94 24,645,753.44 -469,723.67 49,700,000.00 749,147,101.95
126
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
26.Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
Long-term lease liabilities 30,471,738.14 2,709,232.95
Less：Financing costs are not
1,463,771.38 41,203.32
recognized
Less:Long-term loans due within one
10,151,743.03 2,517,045.16
year(Note V.22)
Total 18,856,223.73 150,984.47
27. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 2,022,210.11 2,517,493.12
Total 2,022,210.11 2,517,493.12
(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
Medium term bill underwriting fee 495,283.01 1,439,622.63
Less:Long-term loans due within one
495,283.01 944,339.62
year(Note V.22)
Total 2,022,210.11 2,517,493.12
28. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
21,009,212.70 185,000,000.00 5,029,050.96 200,980,161.74
subsidy
Lease income 40,073,768.93 3,804,705.42 36,269,063.51
Total 61,082,981.63 185,000,000.00 8,833,756.38 237,249,225.25
Details of government subsidies：
In RMB
Amount
Amount Other Asset-
of cost
transferred income related
Beginning of New subsidy in deducted Other
Items to non- recorded in End of term or
term current period in the changes
operational the current income-
current
income period related
period
Cancellation 15,907,669.2 Related
20,931,143.87 5,023,474.62
of 5 to asset
127
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Expressway
Provincial
Toll Station
Project
Charging
Related
infrastructure 78,068.83 5,576.34 72,492.49
to asset
rewards
Qijiang New
South city
185,000,000. Related
interchange 185,000,000.00
00 to asset
construction
project
29. Stock capital
In RMB
Changed（+，-）
Balance Year- Issuance
Bonus Capitalizatio Balance in year-end
beginning of new Other Subtotal
shares n of public
share
reserve
Total of
2,090,806,126.00 2,090,806,126.00
capital shares
30. Capital reserves
In RMB
Year- beginning Increase in the current Decrease in the
Items Year-end balance
balance period current period
Share premium 508,711,146.99 508,711,146.99
Other capital reserves 234,422,410.04 18,430.04 92,400.51 234,348,439.57
Total 743,133,557.03 18,430.04 92,400.51 743,059,586.56
- The situation of change in the current capital reserve is as follows:
1. The joint venture Guangdong Jiangzhong Expressway Co., Ltd. recognized the special reserve in the
current period, and the Company adjusted the book value of long-term equity investment according to the
shareholding ratio, resulting in an increase in the capital reserve of 16,005.85 yuan.
2. The capital reserve of Guoyuan Securities Co., Ltd., an associated enterprise, has changed in the current
period.
3. Hunan Lianzhi Technology Co., Ltd., an associate of the subsidiary Yuegao Capital (Holdings)
Guangzhou Co., Ltd., repurchased the equity of other shareholders, resulting in a change in the long-term equity
investment of the subsidiary accounted for by the equity method and reducing the capital reserve by 92,400.51
yuan.
128
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
31. Other comprehensive income
In RMB
Amount of current period
Less：Amount transferred Less：Prior period
into profit and loss in the included in other After-tax
Year-beginning Amount After-tax Year-end
Items current period that composite income Less：Income attribute to
balance incurred before attribute to the balance
recognied into other transfer to retained tax expenses minority
income tax parent company
comprehensive income in income in the shareholder
prior period current period
1.Other comprehensive
income will be reclassified
181,045,914.34 -4,660,243.08 -1,165,060.77 -3,495,182.31 177,550,732.03
into income or loss in the
future
Changes in fair value of
investments in other equity 181,045,914.34 -4,660,243.08 -1,165,060.77 -3,495,182.31 177,550,732.03
instruments
2.Other comprehensive
income reclassifiable to
-10,412,257.67 12,110,298.33 12,110,298.33 1,698,040.66
profit or loss in subsequent
periods
Including：Share of other
comprehensive income of
the investee that cannot be
-10,412,257.67 12,110,298.33 12,110,298.33 1,698,040.66
transferred to profit or loss
accounted for using the
equity method
Total of other
170,633,656.67 7,450,055.25 -1,165,060.77 8,615,116.02 179,248,772.69
comprehensive income
129
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
32. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1,373,056,469.02 1,373,056,469.02
reserve
Total 1,373,056,469.02 1,373,056,469.02
33. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in
4,698,029,354.08 4,760,618,543.78
last period end
Adjust the total undistributed profits at
510,117.60
the beginning of the period
After adjustments: Retained profits at the
4,698,029,354.08 4,761,128,661.38
period beginning
Add：Net profit belonging to the owner
885,644,187.99 1,276,341,322.98
of the parent company
Less: Statutory surplus reserve 147,681,138.46
Common stock dividend payable 894,865,021.93 1,191,759,491.82
Retained profit at the end of this term 4,688,808,520.14 4,698,029,354.08
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 -218,081.32.
(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 .
(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 .
34.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 2,310,707,369.57 726,266,759.50 2,022,637,008.32 682,014,744.35
Other operation 29,729,405.51 14,403,550.99 34,783,801.36 14,128,978.15
Total 2,340,436,775.08 740,670,310.49 2,057,420,809.68 696,143,722.50
35. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 4,414,027.47 3,906,433.43
130
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Education surcharge 2,126,579.28 1,870,308.46
Property tax 579,768.50 1,026,637.79
Land use tax 523,762.40 523,762.40
Vehicle use tax 42,143.75 43,285.07
Stamp tax 136,313.89 132,962.51
Business tax 185,247.66 185,247.66
Locality Education surcharge 1,414,531.04 1,243,683.98
Total 9,422,373.99 8,932,321.30
36. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 55,924,172.80 58,799,341.19
Depreciation of fixed assets 4,754,414.20 6,814,076.61
Intangible assets amortization 754,955.47 953,099.24
Low consumables amortization 305,671.18 259,600.97
Rental fee and Management fee 5,680,829.07 6,027,123.06
Business fee 276,707.37 282,100.73
Office expenses 3,253,204.38 4,275,751.24
Travel expenses 299,557.29 114,358.72
Consultation expenses 100,000.00
The fee for hiring agency 2,756,001.59 3,376,068.01
Repairs cost 152,240.53 189,544.16
Vehicle fee 1,353,271.68 1,304,983.31
Listing fee 143,396.22 11,320.75
Information cost and maintenance fee 559,255.14 961,765.47
Other 3,810,168.79 2,304,133.58
Total 80,023,845.71 85,773,267.04
37.R& D expenses
In RMB
Items Amount of this period Amount of last period
Wage 81,651.82 945,204.60
Material cost 412,566.35
Depreciation 5,521.90
Low consumables amortization 885.00
Office expenses 4,318.22
Repairs cost 391.15
Total 81,651.82 1,368,887.22
38.Financial expenses
In RMB
Items Amount of this period Amount of last period
131
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Interest expenses 109,161,060.69 123,517,238.10
Deposit interest income（-） -18,067,700.31 -36,907,508.27
Exchange Income and loss（Gain-）
Bank commission charge 56,504.09 84,179.23
Other 3,226.00 608,147.56
Total 91,153,090.47 87,302,056.62
39.Other gains
In RMB
Items Amount of this period Amount of last period
Government Subsidy-Cancel the Special
Subsidy for Provincial Toll Station 5,023,474.62 5,023,474.62
Project of Expressway
Government Subsidy- Charging
5,576.34
infrastructure incentive funds
Government subsidy-- Jiujiang Bridge
structure health monitoring system
600,000.00
optimization and upgrade of vehicle
purchase tax subsidy funds
Government subsidy- Stable job
25,500.00
subsidies - Expansion subsidy
Government subsidy- Stable job
1,250,935.46
subsidies
Government subsidy-- Enterprises with
1,074,875.00
industrial training subsidies
Maternity allowance 577,849.71 435,454.91
Withholding and remitting enterprise
39,147.73 156,133.38
prepaid income tax fees
Withhold personal income tax handling
164,638.95 159,544.67
fee refund
Veterans' VAT reduction and exemption 13,786.43 15,009.81
Withholding and remitting enterprise
62,924.53
prepaid income tax fees
Total 6,449,973.78 8,178,352.38
40. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by
109,631,134.53 101,561,222.92
equity method
Disposition of the investment income
generated by the long-term equity 13,564,262.33
investment
Investment income of trading financial
601,253.78
assets during the holding period
Dividends earned during the holding
period on investments in other equity 71,249,739.36 47,286,243.74
instrument
Other -80,000.00 -91,000.00
Total 181,402,127.67 162,320,728.99
132
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
41. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on other receivable -43,681,523.62
Impairment losses on account receivable -1,945,429.56
Total -45,626,953.18
Other note
42. Asset impairment loss
In RMB
Items Amount of this period Amount of last period
Total disposal gains or losses of non-
463,363.89
current assets
Including: Loss on impairment of fixed
463,363.89
assets
Total 463,363.89
43. Non-Operation income
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Non-current assets are
damaged and scrapped for 237,412.50
profit
Among them: Fixed assets 237,412.50
Insurance claim income 967,952.70 4,141,948.49 967,952.70
Road property claim income 1,126,095.64 1,419,966.31 1,126,095.64
Other 54,244.51 22,304.35 54,244.51
Total 2,148,292.85 5,821,631.65 2,148,292.85
44. Non-Operation expenses
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and
losses
Non-current assets are
damaged and scrapped for 15,753.62 252,895.85 15,753.62
profit
Road rehabilitation
176,042.00 2,624,379.66 176,042.00
expenditure
Fine 570.97 2,254.33 570.97
Other 47,856.00 76,129.55 47,856.00
Total 240,222.59 2,955,659.39 240,222.59
45. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 287,619,631.20 246,703,707.49
133
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Deferred income tax expense 81,420,752.61 43,520,805.04
Total 369,040,383.81 290,224,512.53
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 1,563,218,721.13
Current income tax expense accounted by tax and relevant
390,804,680.28
regulations
Influence of income tax before adjustment 248,156.86
Influence of non taxable income -17,962,748.29
Impact of non-deductible costs, expenses and losses 10,334,504.26
Effect of deductible losses from using previously unrecognized
-14,384,209.30
deferred income tax assets
Income tax expense 369,040,383.81
46.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 14,000,060.50 20,528,520.76
Unit current account 40,874,222.93 46,907,015.63
Qijiang new city south interchange
185,000,000.00
construction subsidy funds
Total 239,874,283.43 67,435,536.39
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 10,883,695.76 14,342,965.21
Unit current account 27,999,921.65 32,790,555.31
Total 38,883,617.41 47,133,520.52
(3)Cash receivable related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
38,470,400.00
subsidies
Interest income from special borrowing 1,460,847.67
Total 1,460,847.67 38,470,400.00
（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 1,001,869.75 1,001,869.75
Cash paid for the lease liabilities 7,325,653.27 5,240,644.14
Total 8,327,523.02 6,242,513.89
134
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
47. 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 1,194,178,337.32 1,061,504,459.99
Add：Credit loss preparation
Depreciation of fixed assets, oil and gas assets and consumable biological
542,423,799.22 479,906,745.78
assets
Depreciation of Use right assets 5,042,953.50 4,910,817.45
Amortization of intangible assets 12,833,960.75 11,410,277.66
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets, intangible assets and other long-term
-463,363.89
deferred assets
Fixed assets scrap loss 15,753.62 15,483.35
Loss on fair value changes
Financial cost 109,276,885.58 123,517,238.10
Loss on investment -181,402,127.67 -162,320,728.99
Decrease of deferred income tax assets 82,208,258.88 55,802,962.55
Increased of deferred income tax liabilities -787,506.27 -12,282,157.51
Decrease of inventories
Decease of operating receivables -82,590,730.82 -46,196,406.71
Increased of operating Payable 287,090,654.41 -72,254,061.48
Provision for credit losses 45,626,953.18
Net cash flows arising from operating activities 2,013,917,191.70 1,443,551,266.30
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 5,274,773,267.75 4,042,994,649.07
Less: Beginning balance of cash equivalents 4,284,688,231.33 2,955,183,190.55
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 990,085,036.42 1,087,811,458.52
135
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
5,274,773,267.75 4,284,688,231.33
Cash
56,693.11 43,420.71
Of which: Cash in stock
Bank savings could be used at any time 5,274,200,451.44 4,284,128,907.61
Other monetary capital could be used at any
516,123.20 515,803.01
time
Balance of cash and cash equivalents at the
5,274,773,267.75 4,284,688,231.33
period end
48. 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
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding Ratio
Main Places of Registration Nature of Obtaining
Name of Subsidiary (%)
Operation Place Business Method
direct indirect
Under the
same
Expressway
Guangfo Expressway Co., Ltd. Guangzhou Guangzhou 75.00% control
Management
business
combination
Under the
same
Expressway
Guanghui Expressway Co., Ltd. Guangzhou Guangzhou 51.00% control
Management
business
combination
Under the
same
Jingzhu Expressway Guangzhu Expressway
Zhongshan Guangzhou 75.00% control
Section Co.,Ltd. Management
business
combination
Yuegao Capital Investment
Guangzhou Guangzhou 100.00% Establishment
Investment(Guangzhou)Co., Ltd. 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
136
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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
(2) Important Non-wholly-owned Subsidiary
In RMB
Shareholding
Profit or Loss Owned by Dividends Distributed to
Ratio of Equity Balance of the
the Minority the Minority
Name of Subsidiary Minority Minority Shareholders
Shareholders in the Shareholders in the
Shareholders in the End of the Period
Current Period Current Period
(%)
Guangfo Expressway Co., Ltd. 25.00% -10,159,876.83 54,191,863.16
Guangdong Guanghui
49.00% 248,592,282.67 133,205,174.08 2,090,255,570.22
Expressway Co., Ltd.
Jingzhu Expressway Guangzhu
25.00% 70,101,743.49 88,470,000.47 323,901,561.73
Section Co.,Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion
None
137
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(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. 227,792,721.22 15,224,557.98 243,017,279.20 26,249,826.57 26,249,826.57
Guangdong Guanghui
1,878,332,015.30 2,744,797,728.05 4,623,129,743.35 203,516,148.58 153,785,900.44 357,302,049.02
Expressway Co., Ltd.
Jingzhu Expressway Guangzhu
913,861,914.06 2,932,963,715.03 3,846,825,629.09 1,880,885,837.14 670,333,545.03 2,551,219,382.17
Section Co.,Ltd.
In RMB
Year-beginning balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co., Ltd. 270,445,990.72 15,689,069.15 286,135,059.87 28,728,099.92 28,728,099.92
Guangdong Guanghui
1,463,091,700.93 2,980,427,023.34 4,443,518,724.27 242,093,924.47 171,081,000.56 413,174,925.03
Expressway Co., Ltd.
Jingzhu Expressway Guangzhu
1,097,313,535.80 2,536,899,303.01 3,634,212,838.81 2,477,933,314.32 141,080,251.54 2,619,013,565.86
Section Co.,Ltd.
In RMB
Amount of current period Amount of previous period
Name Total Total
Cash flows from Business Cash flows from
Business income Net profit Comprehensive Net profit Comprehensive
operating activities income operating activities
income income
Guangfo Expressway
1,472,953.28 -40,639,507.32 -40,639,507.32 -2,029,459.25 66,566,527.45 38,386,003.12 38,386,003.12 200,857,877.57
Co., Ltd.
Guangdong Guanghui
1,024,822,529.29 507,331,189.13 507,331,189.13 777,984,620.05 893,298,497.64 469,177,363.59 469,177,363.59 591,588,578.50
Expressway Co., Ltd.
Jingzhu Expressway 574,690,822.31 280,406,973.97 280,406,973.97 495,884,944.24 452,938,785.68 193,096,571.04 193,096,571.04 271,398,716.46
138
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Guangzhu Section
Co.,Ltd.
Other note：
139
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(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
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
Accounting
treatment of the
Main investment of joint
Registration Proportion
Name operating Business nature venture or
place associated
place
enterprise
Directly Indirectly
Zhaoqing Yuezhao Highway Co., Zhaoqing, Zhaoqing, Expressway
25.00% Equity method
Ltd. Management
Guangdong Guangdong
Shenzhen Huiyan Expressway Expressway
Shenzhen Shenzhen 33.33% Equity method
Co., Ltd. Management
Guangdong Jiangzhong Expressway
Zhongshan , Zhongshan , 15.00% Equity method
Expressway Co., Ltd. Management
Ganzhou kangda Expressway Co., Expressway
Gangzhou Ganzhou 30.00% Equity method
Ltd. Management
Ganzhou Gankang Expressway Expressway
Gangzhou Ganzhou 30.00% Equity method
Co., Ltd. Management
Guangdong Yuepu Small Hand all kinds of
Guangzhou Guangzhou 15.48% Equity method
Refinancing Co., Ltd small loans
Guangyuan Securities Co., Ltd. Hefei Hefei Security business 2.37% Equity method
Research and
Hunan Lianzhi Technology Co.,
Changsha Changsha experimental 12.53% Equity method
Ltd.
development
SPIC Yuetong Qiyuan Chip New Energy
Guangzhou Guangzhou 5.00% Equity method
Power Technology Co., Ltd service
Software and
Shenzhen Garage Electric Pile
Shenzhen Shenzhen Information 17.40% Equity method
Technology Co., Ltd
technology
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
None
140
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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.and Hunan Lianzhi Technology Co., Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.and
Shenzhen Garage Electric Pile Technology Co.,
Ltd. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and o
perating 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 Balance at the end of last year/ Amount
period of previous period
Guoyuan Securities Co., Ltd. Guoyuan Securities Co., Ltd.
Current assets
Non-current assets
Total assets 136,259,314,336.23 130,765,208,142.95
Current liabilities
Non-current Liabilities
Total liabilities
Minority Shareholders’ Equity
Shareholders’ equity attributable to
33,709,197,542.75 32,927,214,909.60
shareholders of the parent
Pro rata share of the net assets calculated 799,379,548.17 780,835,620.42
Adjustment items
--Goodwill 207,095,632.54 207,095,632.54
-- Internal transactions did not achieve
profits
--Other
The book value of equity investments in j
1,006,475,180.71 987,931,252.96
oint ventures
Fair value of equity investment of
associated enterprises with open 674,706,434.64 655,044,744.06
quotation
Buinsess incme 3,110,841,516.79 2,474,031,036.38
Net profit 914,347,343.11 749,499,017.55
Net profit from terminated operations
Other comprehensive income 510,710,079.37 -35,288,230.26
Total comprehensive income 1,425,057,422.48 714,210,787.29
Dividends received from associates durin
15,522,387.30 18,626,864.76
g the year
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(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 the following items
Associated enterprise：
Total book value of the investment 2,061,955,507.51 1,935,437,414.88
Total amount of the pro rata calculation
of the following--Net profit ms
--Net profit 87,613,916.46 82,950,868.66
--Total comprehensive income 87,613,916.46 82,950,868.66
(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
6.Other note
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
reliably, and control the risks within a limited range.
1.Market risk
（1）Foreign exchange risk
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 30,2023, 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 "7, 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
143
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Closing fair value
Items Fir value measurement Fir value measurement Fir value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(I) Trading financial assets 181,400,000.00 181,400,000.00
（2）Equity instrument
181,400,000.00 181,400,000.00
investment
（II）Other equity
722,232,678.08 830,410,809.82 1,552,643,487.90
instrument investment
Total assets continuously
722,232,678.08 1,011,810,809.82 1,734,043,487.90
measured at fair value
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 June 30,2023 of 3.07 yuan, the final calculation of fair value was
722,232,678.08 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 3 fair value measurement items
Items Fair value as of June 30,2032 Valuation technology Unobservable input value
Hire a third party for evaluation or enjoy the
Unlisted equity
1,011,810,809.82 share of the net book assets of the investee based
investment
on 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.
XI. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
Redistricted company of the company of the
Name Registered address Nature
capital Company's Company’s vote
shareholding ratio ratio
Equity
management,
Guangdong
traffic
communication Guangzhou 26.8 billion yuan 24.56% 50.12%
infrastructure
Group Co., Ltd
construction and
railway project
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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 June 30, 2023,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(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the VI-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
4. Other Related parties
Name Relation with the Company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co., Ltd.
Guangdong Expressway Media Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Technology Investment 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 Communications Testing Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Development Investment 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
145
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Guangdong Union Electron Service Information technology
Fully owned subsidiary of the parent company
Co., ltd.
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang 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 Tongyi Expressway Service Area Co., Ltd Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue 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
Guangdong Traffic Development Co., Ltd. Fully owned subsidiary of the parent company
Poly Changda Engineering Co., Ltd. Shares of parent company
Guangdong Communication Planning & Design Institute Co.,
Shares of parent company
Ltd.
Guangdong Changda Road Conservation Co., Ltd. Shares of parent company
Guangzhou Aitesi Communication equipment 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.
Guangdong Feida Traffic Engineering Co., Ltd. Associated enterprises controlled by the same parent company
Guangdong Road Network Digital Media Information
Fully owned subsidiary of the parent company
Technology Co. Ltd
Hunan Lianzhi Technology Co., Ltd. A wholly owned subsidiary of the Company
Guangzhongjiang Expressway Project Management Dept Managed by the parent company
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Amount of Amount of Over the
Content of related Amount of last
Related parties current period previous trading limit
transaction period
period or not?
1. Operating costs
Guangdong Union electronic
Service 13,229,622.13 12,021,733.95
services co., Ltd.
Guangdong Yueyun Traffic
Rescue service fee 1,803,701.00 494,700.00
Rescue Co., Ltd.
Daily maintenance fee of
Guangdong Xinyue Traffic
the electromechanical 1,767,361.32
Investment Co., Ltd.
system
Guangdong Litong
Remote monitoring and
Technology Investment Co., 499,250.40
technical support service fee
Ltd.
Guangdong Humen Bridge
Electric charge 330,692.01 310,411.02
Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Amount of Amount of Over the
Content of related Amount of last
Related parties current period previous trading limit
transaction period
period or not?
Guangdong Hualu Traffic
Service 306,348.00
Technology Co., Ltd.
Poly Changda Engineering
service 242,574.00 11,772,757.00
Co., Ltd.
Guangdong Tongyi
Expressway Service Area Co., Labour protection 176,962.71 40,808.70
Ltd
Guangdong Feida Traffic Mechanical and electrical
2,003,201.04
Engineering Co., Ltd. daily maintenance payment
Guangdong Communication
Planning & Design Institute Project 178,243.00
Co., Ltd.
Guangdong Lulutong Co., Ltd. Maintenance, Project funds 52,598.00
Guangdong Jingzhu
Expressway Guangzhu North Labour protection 8,551.20
Section Co., Ltd.
Guangzhou Aitesi
Maintenance of charging
Communication Equipment 2,400.00
facilities
Co., Ltd.
Subtotal of operating costs 18,356,511.57 26,885,403.91
2. Financial expenses
Guangdong Communication
Deposit interest income -9,965,887.73 -24,475,843.25
Group Finance Co., Ltd.
Guangdong Communication Borrowing Interest
6,590,997.21 5,112,347.24
Group Finance Co., Ltd. expresses
Guangdong Communication
Commission charge 3,785.00 920.00
Group Finance Co., Ltd.
Guangdong Communication
Interest 7,402,083.32
Group Co., Ltd.
Subtotal of Financial expenses 4,030,977.80 -19,362,576.01
3. Administrative expenses
Guangdong Tongyi
Expressway Service Area Co., Labour protection 74,591.29
Ltd
Guangdong Union electronic
maintenance fee 288,500.00
services co., Ltd.
Guangdong East Thinking
Management Technology OA Maintenance，Service 10,000.00
Development Co., Ltd.
Subtotal of management
74,591.29 298,500.00
expenses
4. Non operating expenses
Expenditure for repairing
Poly Changda Engineering
damaged civil engineering 1.00 1,009,397.00
Co., Ltd.
facilities
Subtotal of Non operating
1.00 1,009,397.00
expenses
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Amount of Amount of Over the
Content of related Amount of last
Related parties current period previous trading limit
transaction period
period or not?
5. Construction in progress
Guangdong Communication
Planning & Design Institute Purchase assets 5,422,739.00 5,973,981.00
Co., Ltd.
Guangdong Communications
Purchase assets 2,028,475.00
Testing Co., Ltd.
Guangdong Highway
Purchase assets 480,000.00 9,089,990.48
Construction Co., Ltd.
Poly Changda Engineering
Purchase assets 26,630,344.47
Co., Ltd.
Guangdong Xinyue Traffic
Purchase assets 6,127,813.56
Investment Co., Ltd.
Guangdong Hualu Traffic
Purchase assets 907,894.50
Technology Co., Ltd.
Subtotal of Construction in
7,931,214.00 48,730,024.01
progress
6. Fixed assets
Guangdong Expressway
Technology Investment Co., Purchase assets 82,895.00
Ltd.
Guangdong Communication
Planning & Design Institute Purchase assets 483,543.00
Co., Ltd.
Subtotal of Fixed assets 566,438.00
7. Other current assets
Guangdong Feida Traffic
Contract acquisition cost 182,274.01
Engineering Co., Ltd.
Subtotal of Other current
182,274.01
assets
Related transactions on sale goods and receiving services
In RMB
Related party Content
Amount of current period Amount of previous period
Operating income
Jingzhu Expressway Guangzhu North Commission
10,977,500.00 10,603,632.04
section Co., Ltd. management fee
Salaries of expatriate
Zhaoqing Yuezhao Highway Co., Ltd. 613,816.63 512,977.97
staff
Salaries of expatriate
Ganzhou Gankang Expressway Co., Ltd. 578,774.80 525,660.83
staff
Guangdong Traffic Development Co., Ltd. electricity 486,046.23 336,290.97
Guangdong Tongyi Expressway Service
water and electricity 479,678.14 486,716.96
Area Co., Ltd
Salaries of expatriate
Shenzhen Huiyan Expressway Co., Ltd. 464,466.28 260,849.89
staff
Ganzhou Kangda Expressway Co., Ltd. Salaries of expatriate 142,237.06 138,547.02
148
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
staff
Guangdong Jiangzhong Expressway Co., Salaries of expatriate
168,312.27 176,119.41
Ltd. staff
Bidding documents
Poly Changda Engineering Co., Ltd. income, water and 21,011.51 1,000.00
electricity bills
Guangdong Yueyun Traffic Rescue Co.,
Water and electricity 5,770.73
Ltd.
Guangdong Expressway Media Co., Ltd. Water and electricity 4,637.51
Guangdong Provincial Freeway Co.,Ltd. Project fund 886,950.00
Guangdong Luoyang Expressway Co., Ltd. Test 58,490.57
Subtotal of Operating income 13,942,251.16 13,987,235.66
(2) Information of related lease
The Company was lessor：
In RMB
Category of lease The lease income confirmed in The lease income confirmed in
Name of lessee
assets this year last year
Guangdong Expressway Media Co., Advertising lease
1,292,283.51 1,379,412.57
Ltd.
Guangdong Litong Technology Communication
1,067,169.99 522,034.27
Investment Co., Ltd. Piping
Poly Changda Engineering Co., Ltd. Rental income 555,557.14 555,557.14
Guangdong Expressway Advertising lease
543,695.69
Technology Co., Ltd.
Guangdong Traffic Development Rental income of
267,958.87 149,850.34
Co., Ltd. charging pile
Guangdong Road Network Digital
Media Information Technology Co., Advertising 2,777.78
Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
- The company was lessee：
In RMB
Variable lease payments
Rental charges for short-
not included in lease Interest expenses on lease
term and low-value assets Rent paid Increased use right assets
liabilities measurement (if liabilities assumed
(if any)
any)
Category of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount
Lessor
leased assets
current previous current previous current period previous current previous current period of
period period period period period period period previous
period
Guangdong
Litong
Office space
Decelopment 5,065,766.04 4,798,232.52 276,207.92 223,498.78 30,404,063.26
Investment Co.,
Ltd
Guangdong
Litong Property Office space
18,093.00 27,586.00 15,732.00 1,490.55 230,671.46
Development
Co., Ltd.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
(3 ）Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
2,969,700.00 2,834,900.00
personnel
（4） Transactions with associated financial companies
（1）Deposit business
Related party Relationship Maximum Deposit Beginning The amount of this period
daily deposit interest rate balance（10， Ending
Total amount Total amount
limit（10， range 000） balance
for this period is withdrawn
000）
（10,000） for this period （10，000)
（10,000）
Guangdong
Controlled by the
Communications
same parent 300,000.00 0.35%-2.85% 239,396.61 298,189.83 254,255.77 283,330.67
Group Finance
company
Co., Ltd
（2）Loan business
Related party Relationship Beginning The amount of this period
balance
Ending
Loan limit Total loan Total
（10，000）
Loant interest balance
（10， amount of the repayment
rate range （10，
000） current period amount of the
000）
（10,000） current period
（10,000）
Guangdong
Communications Controlled by the
400,000.00 2.95%-3.40% 62,859.33 659.10 43,797.13 19,721.30
Group Finance same parent company
Co., Ltd
（3）Credit extension or other financial services
Related party Relationship Business type Total amount（10， Actual amount
000） incurred（10，000)
Guangdong Communications Controlled by the same Credit extension
220,000.00 19,700.00
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 Guangdong Branch on May 19, 2020, joined the cash pool of Guangdong Communications Group
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Finance Co., Ltd.
（5）Asset transfer and debt restructuring of related parties
None
(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. The above transactions have been approved and implemented by
the board of directors of Guangdong Fokai Expressway Co., Ltd.
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. The above transactions
have been approved and implemented by the board of directors of Beijing-Zhuhai Expressway Guangzhou-
Zhuhai Section Co., Ltd.
On November 30, 2022, the fifth (interim) meeting of the 10th Board of Directors of the Company
reviewed and approved the Proposal on Entrusted Construction Management of the Reconstruction and
Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway, and agreed that the subsidiary
Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway Co., Ltd. entrusted Guangdong Provincial Highway
Construction Co., Ltd. to carry out the whole-process construction management of the reconstruction and
expansion project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway. The above transactions have
been approved and implemented by the Board of Directors of Guangzhu Section of Beijing-Zhuhai Expressway
Co., Ltd, The above transactions have been approved and implemented by the board of directors of Beijing-
Zhuhai Expressway Guangzhou-Zhuhai Section Co., Ltd.
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 Bad debt
Balance of Book
Book Provision Provision
Account Guangdong Union electron Service Co.,
68,965,060.84 67,197,924.19
receivable Ltd.
Account Guangdong Humen Bridge Co., Ltd. 16,631,182.47 6,072,995.36
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
receivable
Account Jingzhu Expressway Guangzhu North
5,818,074.99 8,321,625.03
receivable Section Co., Ltd.
Account Guangdong Litong Technology
533,136.00
receivable Investment Co., Ltd.
Account Guangdong Expressway Technology
126,986.70 2,315,719.18
receivable Investment Co., Ltd.
Account Guangdong Expressway Media Co.,
522,805.00
receivable Ltd.
Account
Poly Changda Engineering Co., Ltd. 265,054.16
receivable
Total 92,074,441.00 84,696,122.92
Other Account Guangdong Litong Technology
1,839,246.94 1,653,447.36
receivable Investment Co., Ltd.
Other Account Guangdong Expressway Media Co.,
695,223.54 978,997.66
receivable Ltd.
Other Account Guangdong Provincial Freeway
463,491.88 463,491.88
receivable Co.,Ltd.
Other Account Guangdong Expressway Technology
318,319.00 65,605.71
receivable Investment Co., Ltd.
Other Account Guangdong Traffic Development Co.,
183,157.04
receivable Ltd.
Other Account Guangdong Union electron Service Co.,
147,018.71 137,851.04
receivable Ltd.
Other Account Guangdong Litong Property
25,475.00 18,344.00
receivable Develpment Co., Ltd.
Other Account
Guangdong Humen Bridge Co., Ltd. 15,000.00
receivable
Other Account
Poly Changda Engineering Co., Ltd. 6,657.71
receivable
Other Account Guangdong Yueyun Traffic Rescue
3,897.19
receivable Co., Ltd.
Total 3,697,487.01 3,317,737.65
Other Non-Current
Poly Changda Engineering Co., Ltd. 48,226,078.70
Assets
Other Non-Current Guangdong Xinyue Traffic Investment
834,973.80
Assets Co., Ltd.
Other Non-Current Guangdong Traffic Development Co.,
333,398.00 333,398.00
Assets Ltd.
Total 49,394,450.50 333,398.00
（2）Payables
In RMB
Amount at year Amount at year
Name Related party
end beginning
Short-term loan Guangdong Communication Group Finance Co., ltd. 430,387,597.20
Total 430,387,597.20
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Amount at year Amount at year
Name Related party
end beginning
Guangzhongjiang Expressway Project Management
Account payable 17,466,700.00 17,466,700.00
Dept
Account payable Poly Changda Engineering Co., Ltd. 5,415,553.30 12,590,171.30
Account payable Guangdong Xinyue Traffic Investment Co., Ltd 3,498,917.77 6,381,639.70
Account payable Guangdong Union Electron Service Co.,Ltd. 2,818,047.86 188,039.97
Account payable Guangdong Communications Testing Co., Ltd. 2,023,485.00 2,400,079.00
Account payable Guangdong Yueyun Traffic Rescue Co., Ltd. 1,407,941.00 261,800.00
Account payable Guangdong Provincial Freeway Co.,Ltd. 1,245,443.50 1,245,443.50
Guangdong Expressway Technology Investment
Account payable 980,578.00 6,935,455.12
Co., Ltd.
Account payable Guangdong Feida Traffic Engineering Co., Ltd. 774,876.84 3,716,816.94
Guangdong Communication Planning & Design
Account payable 585,379.10 3,008,670.10
Institute Co., Ltd.
Account payable Guangdong Hualu Traffic Technology Co., Ltd. 466,616.91 1,769,785.29
Guangdong Litong Technology Investment Co.,
Account payable 335,569.11 843,562.91
Ltd.
Account payable Guangdong Changda Road Maintenance Co. Ltd. 231,869.00 231,869.00
Guangdong East Thinking Management Technology
Account payable 86,630.00 950,630.00
Development Co., Ltd.
Account payable Guangzhou Xinyue Asphalt Co., Ltd. 46,779.00 46,779.00
Account payable Guangdong Lulutong Co., Ltd. 3,787,627.94
Account payable Hunan Lianzhi Technology Co., Ltd. 640,088.00
Guangzhou Aitesi Communication Equipment Co.,
Account payable 25,194.00
Ltd.
Total 37,384,386.39 62,490,351.77
Advance received Guangdong Union electronic services co., Ltd. 1,417,034.63 1,330,729.13
Total 1,417,034.63 1,330,729.13
Dividend payable Guangdong Provincial Freeway Co.,Ltd. 11,550,000.00
Total 11,550,000.00
Other Payable account Poly Changda Engineering Co., Ltd. 21,556,770.48 20,866,108.48
Other Payable account Guangdong Hualu Traffic Technology Co., Ltd. 2,874,595.06 1,905,833.06
Other Payable account Guangdong Highway Construction Co., Ltd. 2,137,605.14 2,000,000.00
Guangdong Expressway Technology Investment
Other Payable account 1,687,217.46 2,298,424.75
Co., Ltd.
Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1,628,345.00 1,628,345.00
Other Payable account Guangdong Xinyue Traffic Investment Co., Ltd. 1,503,467.33 1,415,273.20
Other Payable account Guangdong Feida Traffic Engineering Co., Ltd. 1,436,828.89 1,522,615.96
Other Payable account Guangdong Xinyue Traffic Investment Co., Ltd. 1,415,273.20 1,332,556.89
Other Payable account Guangdong Union Electron Service Co.,Ltd. 1,355,836.70
Other Payable account Guangzhou Xinyue Asphalt Co., Ltd. 1,054,919.00 1,054,919.00
Other Payable account Guangdong Lulutong Co., Ltd. 809,377.06 859,377.06
Other Payable account Guangdong Communications Testing Co., Ltd. 238,186.00 971,085.90
Guangzhongjiang Expressway Project Management
Other Payable account 200,000.00 200,000.00
Dept
Guangdong Tongyi Expressway Service Area Co.,
Other Payable account 120,000.00 120,000.00
Ltd.
154
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Amount at year Amount at year
Name Related party
end beginning
Guangdong Communication Planning & Design
Other Payable account 110,422.00 110,422.00
Institute Co., Ltd.
Guangdong Litong Technology Investment Co.,
Other Payable account 92,594.24 92,594.24
Ltd.
Other Payable account Guangdong Expressway Media Co., Ltd. 50,000.00 50,000.00
Guangdong East Thinking Management Technology
Other Payable account 26,568.18 156,534.54
Development Co., Ltd.
Other Payable account Hunan Lianzhi Technology Co., Ltd. 19,797.00 85,785.50
Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 2,000.00 2,000.00
Total 38,319,802.74 36,671,875.58
Non-current liabilities due 1 Guangdong Litong Development Investment Co.,
9,648,206.79 2,445,724.55
year Ltd.
Non-current liabilities due 1
Guangdong Communication Group Finance Co., ltd. 2,213,033.33 2,205,700.01
year
Non-current liabilities due 1
Guangdong Litong Property Development Co., Ltd. 100,708.20
year
Total 11,961,948.32 4,651,424.56
Other current liabilities Guangdong Communication Group Co., ltd. 500,395,833.33 500,122,916.67
Total 500,395,833.33 500,122,916.67
Guangdong Litong Development Investment Co.,
Lease Liabilities 18,412,022.93
Ltd.
Lease Liabilities Guangdong Litong Property Development Co., Ltd. 115,721.81
Total 18,527,744.74
Long-term loans Guangdong Communication Group Finance Co., ltd. 195,000,000.00 196,000,000.00
Total 195,000,000.00 196,000,000.00
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
XIII. Commitments
1. Significant commitments
Significant commitments at balance sheet date
Significant commitments The Company held the second (interim) meeting of the 10th Board of Directors
on October 22, 2022. The meeting deliberated and passed the Proposal on Investing in the Reconstruction and
Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway with Capital Increase from
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Guangzhou-Zhuhai Section Co., Ltd. of Beijing-Zhuhai Expressway, and agreed that the company would
invest in the construction of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of
Guangzhou-Macao Expressway with Capital Increase from Guangzhou-Zhuhai Section Co., Ltd. of Beijing-
Zhuhai Expressway based on the estimated investment amount of 15.425 billion yuan approved by Guangdong
Provincial Development and Reform Commission.
The project capital is 35% of the estimated investment amount after deducting the expenses borne by the
government, and the company undertakes the capital contribution of about 3.414 billion yuan according to the
shareholding ratio. This matter has been reviewed and approved by the Company's third extraordinary general
meeting in 2022.
As of June 30, 2023, the accumulated cost of the reconstruction and expansion project of Nansha- Zhuhai
section of Guangzhou-Macao Expressway was 1,021,162,978.77 yuan
2. Contingency
(1) Significant contingency at balance sheet date
As of June 30,2023, the Company did not need to disclose important commitments.
(2) The Company have no significant contingency to disclose, also should be stated
None
XIV. Events after balance sheet date
None
XV.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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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
In RMB
Subsidy item Category Opening New subsidy amount The carry-over in current Other Closing Presentation items carried Asset-
balance in current period period is included in profit changes balance over into profit or loss in related/revenue-
and loss amount the current period related
Cancel the special subsidy for the Financial Other income
expressway provincial toll station appropriation 20,931,143.87 5,023,474.62 15,907,669.25 Assets related
project
Qijiang new city south interchange Financial Other income
185,000,000.00 185,000,000.00 Assets related
construction Project appropriation
Charging infrastructure incentive Financial Other income
78,068.83 5,576.34 72,492.49 Assets related
funds appropriation
(2) Government subsidies included in current profits and losses using the total amount method
In RMB
Subsidy item Category Amount included in profit or loss Presentation items included in Asset-related/revenue-
in the current period profit or loss in the current related
period
Subsidy for post stabilization Financial appropriation 25,500.00 Other income Income related
Jiujiang Bridge structure health monitoring system optimization and Other income Income related
Financial appropriation 600,000.00
upgrade of vehicle purchase tax subsidy funds
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
3.Other important transactions and events have an impact on investors decision-making
(1) Performance compensation
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; the net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and
losses) in 2022 was RMB 896,101,9OO, RMB 338,099,000 less than the promised amount by the end of 2022, the
accumulated net profit (excluding non-recurring gains and losses) was RMB 2,770,778,900, RMB 228,486,800
more than the promised amount.
In 2022, affected by the macroeconomic impact and in response to the State Council's 10% reduction in
truck tollsin toll roads in the fourth quarter of 2022, Guanghui Expressway toll revenue fell sharply. According
to the "Profit Compensation Agreement" signed between the Company and the Provincial Expressway,
combined with the actual situation of the performance of Guanghui Expressway, the Company negotiated
matters related to the performance commitment with the Provincial Expressway, and the contingent
consideration formed by the performance compensation was not recognized in 2022.
On August 7,2023,The "Proposal on Changing the Performance Commitment of Major Asset
Restructuring Project in 2020 and Sinning the Supplementary Agreement to the Profit Compensation
Agreement " was deliberated and adopted in the 10thmeeting (interim) of the 10th Board of Directors of the
Company , agreeing to change the performance commitment of major asset restructuring project in 2020, and
the performance compensation period of the restructuring is adjusted to 2020, 2021 and 2023, and the
Provincial Expressway promises that the net profit accumulated by Guanghui Expressway in the three years of
2020, 2021 and 2023 after deducting non-recurring profits and losses shall not be less than 2,999,265,700 yuan.
If the cumulative net profit of Guanghui Company does not reach the afore-said cumulative committed net
profit within the afore-said adjusted compensation period, the Provincial Expressway shall compensate the
Company in cash in accordance with the "Profit Compensation Agreement" and the provisions of this
agreement.
The above-mentioned change to performance commitments need to be reviewed and approved by the
company at its first (extraordinary) general meeting of shareholders on August 23, 2023.
(2) Follow-up management and maintenance issues after the expiration of the Guangzhou-Foshan
Expressway operation
The Company received the Notice of the Guangdong Provincial Department of Transport on Matters
Related to the Disposal of the Guangfo Expressway Toll Period (No. 24 [2022] Yue Jiaoying Memorandum),
and the Guangfo Expressway operated by its holding subsidiary Guangfo Expressway Co., Ltd (hereinafter
referred to as "Guangfo Company") stopped collecting tolls from midnight on March 3, 2022. It retains the
existing toll facilities to operate as usual in a zero-rate manner, exempts all vehicle tolls for vehicles passing
through this section of the road, and collects vehicle tolls for other road sections on their behalf. After the toll
collection is stopped, the Guangfo Company will continue to be responsible for the management and
maintenance of the Guangfo Expressway.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
The source of funds for management and maintenance expenses paid by Guangfo on behalf of remains to
be further clarified, and as of June 30,2023, the management and maintenance expenses paid by Guangfo
Company on behalf of is 141,431,005.33 yuan.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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 Proporti Amou Proportio Book value Amount Proportio Amoun Proportion( Book value
on(%) nt n(%) n(%) t %)
Accrual of bad debt provision by
Single
Accrual of bad debt provision by 100.00
21,127,358.73 21,127,358.73 23,817,016.30 100.00% 23,817,016.30
portfolio %
Of which：
100.00
Aging portfolio 21,127,358.73 21,127,358.73 23,817,016.30 100.00% 23,817,016.30
%
Other
Total 21,127,358.73 21,127,358.73 23,817,016.30 23,817,016.30
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Accrual of bad debt provision by Single :None
Accrual of bad debt provision by portfolio: Accounts receivables with bad debt provision are recognised by
portfolio by age
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate(%)
Within 1 year 21,127,358.73
Total 21,127,358.73
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
Disclosure by aging
In RMB
Aging Book balance
Within 1 year（Including 1 year） 21,127,358.73
Total 21,127,358.73
(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
21,000,372.03 99.40%
Services Co., Ltd.
Guangdong Expressway
126,986.70 0.60%
Technology Investment Co., Ltd.
Total 21,127,358.73 100.00%
（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 45,903,912.26 36,905,472.90
161
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Other receivable 1,240,260,547.94 1,505,117,198.28
Total 1,286,164,460.20 1,542,022,671.18
（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
China Everbright Bank Co., Ltd. 44,698,439.36
Guangdong Guanghui Expressway Co., Ltd. 35,700,000.00
Total 45,903,912.26 36,905,472.90
2）Significant dividend receivable aged over 1 year
I n RMB
Whether or not the
Balance in
Items) Aging Reasons for non-recovery impairment and the basis
year-end
for its determination
The partnership agreement
Guangdong Radio and Television
4-5 expires and can be recovered No, it can be recovered
Networks investment No.1 Limited 1,205,472.90
years after the extension procedures in the future
partnership enterprise
are completed
Total 1,205,472.90
3）The withdrawal amount of the bad debt provision
□ Applicable √ Not applicable
162
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
（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
Proportion Proportion Book value Proportion Proportion Book value
Amount Amount Amount Amount
(%) (%) (%) (%)
Other receivables
for individual bad 30,844,110.43 2.43 30,844,110.43 100.00 30,844,110.43 2.01 30,844,110.43 100.00
debt provision
Other receivables
for bad debt
provision according
1,240,260,547.94 97.57 1,240,260,547.94 1,505,117,198.28 97.99 1,505,117,198.28
to the combination
of credit risk
characteristics
Including: Aging
portfolio
Other 1,240,260,547.94 97.57 1,240,260,547.94 1,505,117,198.28 97.99 1,505,117,198.28
Total 1,271,104,658.37 100.00 30,844,110.43 — 1,240,260,547.94 1,535,961,308.71 100.00 30,844,110.43 — 1,505,117,198.28
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Accrual of bad debt provision by single：
In RMB
Closing book balance
Expected credit loss
Bad Debt Reserves Book balance Bad debt provision Reason
rate(%)
Kunlun Securities Co., Bad debts were
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: None
In the portfolio, other receivables with bad debt provision by other methods:
Name Balance in year-end Balance Year-beginning
Deposit money and quality guarantee 2,412,546.94 2,090,516.36
fund combination
Petty cash 1,458,213.38 1,293,602.05
Other 1,236,389,787.62 1,501,733,079.87
Subtotal 1,240,260,547.94 1,505,117,198.28
Less：Bad debt provision
Total 1,240,260,547.94 1,505,117,198.28
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Bad Debt Reserves Expected credit Expected credit loss Total
for the entire duration
losses over the next over life (no credit
(credit impairment
12 months impairment)
occurred)
Balance as at January
30,844,110.43 30,844,110.43
1,2023
Balance as at January
1,2023
Balance as at June
30,844,110.43 30,844,110.43
30,2023
Loss provision changes in current period, change in book balance with significant amount
□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 according to the nature
In RMB
Nature Closing book balance Opening book balance
Securities trading settlement funds 30,844,110.43 30,844,110.43
Deposit 2,412,546.94 2,090,516.36
Petty cash 1,458,213.38 1,293,602.05
Other 1,236,389,787.62 1,501,733,079.87
164
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Subtotal 1,271,104,658.37 1,535,961,308.71
Less：Bad debt provision 30,844,110.43 30,844,110.43
Total 1,240,260,547.94 1,505,117,198.28
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 end Closing balance
Name Nature Closing balance Aging balance of the of bad debt
accounts provision
receivable(%)
Jingzhu
Expressway Reconstruction and expansion of Within
1,235,277,549.57 97.18%
Guangzhu investment funds and interest 1 year
Section Co., Ltd.
Kunlun
Over 5
Securities Securities trading settlement funds 30,844,110.43 2.43% 30,844,110.43
years
Co.,Ltd
Guangdong
Litong
Within
Development Lease deposit 1,816,266.94 0.14%
1 year
Investment Co.,
Ltd
Guangdong
Litong
2-3
Development Vehicle parking deposit 22,980.00 0.00%
years
Investment Co.,
Ltd.
Guangdong
Provincial Over 5
Entrusted management fee 463,491.88 0.04%
Freeway years
Co.,Ltd.
Water and electricity fee working
Savills Property 2-3
capital, management fee deposit, 4,200.00 0.00%
Consulting years
vehicle parking space deposit
Water and electricity fee working
Savills Property 3-4
capital, management fee deposit, 414,525.00 0.03%
Consulting years
vehicle parking space deposit
Total 1,268,843,123.82 99.82% 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
165
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
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 3,692,740,464.84 3,692,740,464.84 3,374,330,463.43 3,374,330,463.43
Investment in joint ventures
2,867,753,731.35 2,867,753,731.35 2,722,085,180.53 2,722,085,180.53
and associates
Total 6,560,494,196.19 6,560,494,196.19 6,096,415,643.96 6,096,415,643.96
（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 Section
871,171,883.08 265,410,001.41 1,136,581,884.49
Co., Ltd.
Guangfo Expressway Co., ltd. 154,982,475.25 154,982,475.25
Yuegao Capital Investment
322,500,000.00 53,000,000.00 375,500,000.00
(Guangzhou) Co., Ltd.
Guanghui Expressway Co., Ltd. 2,025,676,105.10 2,025,676,105.10
Total 3,374,330,463.43 318,410,001.41 3,692,740,464.84
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Announced for
Decrease Investment Other Other Provision balance of
Name Opening balance Increase in distributing Closing balance
in income under comprehensive changes for Other impairment
investment cash dividend
investment equity method income in equity impairment provision
or profit
I. Joint ventures
II. Associated enterprises
Guangdong
Jiangzhong
446,883,150.40 45,000,000.00 6,731,118.49 16,005.85 4,627,613.17 494,002,661.57
Expressway
Co., Ltd.
Ganzhou
Gankang
163,154,438.00 9,568,563.16 172,723,001.16
Expressway
Co., Ltd.
Ganzhou
Kangda
246,268,935.13 20,692,056.64 266,960,991.77
Expressway
Co., Ltd.
Shenzhen
Huiyan
348,669,767.32 14,856,921.37 363,526,688.69
Expressway
Co., Ltd.
Zhaoqing
Yuezhao
310,209,765.87 30,133,975.22 340,343,741.09
Highway
Co., Ltd.
Guoyuan 987,867,627.42 22,017,218.07 12,110,298.33 2,424.19 15,522,387.30 1,006,475,180.71
167
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Securities
Co.,Ltd.
Guangdong
Yuepu
Small 219,031,496.39 4,689,969.97 223,721,466.36
Refinancing
Co., Ltd
Subtotal 2,722,085,180.53 45,000,000.00 108,689,822.92 12,110,298.33 18,430.04 20,150,000.47 2,867,753,731.35
Total 2,722,085,180.53 45,000,000.00 108,689,822.92 12,110,298.33 18,430.04 20,150,000.47 2,867,753,731.35
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Revenue Cost Revenue Cost
Main business 734,319,820.33 242,491,456.98 636,965,610.55 249,145,875.83
Other 6,352,612.68 1,795,927.53 5,689,892.19 1,926,210.70
Total 740,672,433.01 244,287,384.51 642,655,502.74 251,072,086.53
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income
404,052,121.37 681,064,177.01
accounted by cost method
Long-term equity investment income
108,689,822.92 98,360,414.38
accounted by equity method
Investment income from disposal of
-45,107,982.42
Long-term equity investment
Dividend income from other equity
instrument investments during the 71,249,739.36 47,286,243.74
holding period
Interest income from debt investment
10,079,133.93
during holding period.
Other 12,728,947.34
Total 596,720,630.99 791,681,986.64
XVII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-
-15,753.62
off part for which assets impairment provision is made)
Government subsidies recognized in current gain and
loss(excluding those closely related to the Company’s 5,654,550.96
business and granted under the state’s policies)
Net amount of non-operating income and expense except
1,923,823.88
the aforesaid items
Other non-recurring Gains/loss items 795,422.82
The impairment provision for the advance expenses that
have occurred but need to be defined from the source of -43,681,523.62
funds
Less :Influenced amount of income tax 2,088,521.91
Influenced amount of minor shareholders’ equity (after
-9,372,564.36
tax)
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Report 2023
Total -28,039,437.13 --
None ：
Due to its special nature, the provision for impairment of the management and maintenance expenditures that ha
ve been paid for by Guangfo Expressway but whose source of funds needs to be clarified will affect the normal
judgment of the company's operating performance and profitability by the report users.
Details of other profit and loss items that meet the non-recurring profit and loss definition
√Applicable□ Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses of the
Guangzhou-Foshan Expressway that has been advanced but the source of funds needs to be clarified, it will
affect the normal judgment to the Company's operating performance and profitability by the user of the report.
Explanation on defining the non recurring profit and loss items listed in the Explanatory Announcement
No. 1 on Information Disclosure of Companies Issuing Securities to the Public as recurring profit and loss
items□ Applicable√ Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
9.30% 0.42 0.42
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
9.59% 0.44 0.44
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 account
ing standards. If the data that has been audited by an overseas audit institution is adjusted for differences,
the name of the overseas institution should be indicated
170
