Stock Code：000429，200429 Stock Abbreviation ：Guangdong Expressway A, Guangdong Expressway B
Announcement No.:2019-031
Summary of 2019 Semi-Annual Report of Guangdong Provincial
Expressway Development Co., Ltd.
1 Important notes
The summary is abstract from full-text of semi-annual report, for more details information , investors should
found in the full-text of annual report that published on website of Shenzhen Stock Exchange and other website
appointed by CSRC.
Director, Supervisor, Senior Manager Objection Statement: None.
All the directors have attended the meeting of the board meeting at which this report was examined
Non-standard audit advice
□ Applicable √ Not applicable
The Board of Directors considered the plan for the distribution of ordinary shares in the reporting period or the
plan for the transfer of capital reserve.
□ Applicable √ Not applicable
The company plans not to send cash dividends, do not send bonus shares, not to increase the share capital.
The Board of Directors decided to adopt the Preplan Preference Share Profit Distribution Plan for the reporting
period
□ Applicable √ Not applicable
II Company basic information
1. Company Profile
Stock abbreviation: Expressway A, Expressway B Stock code： 000429、200429
Stock exchange for listing Shenzhen Stock Exchange
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, Tihe Disrtict , Road, Zhujiang New City, Tihe Disrtict ,
Guangzhou Guangzhou
Tel 020-29004619 020-29004523
E-mail Hmy69@126.com 139221590@qq.com
2. Summary of Accounting data and shareholder change
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data
√Yes □ No
Retroactive adjustment or restatement of reasons
Accounting policy change In RMB
Same period of last year YoY+/-（%）
Reporting period
Before adjustment After adjustment After adjustment
Operating income（yuan） 1,483,673,245.21 1,535,864,145.14 1,535,864,145.14 -3.40%
Net profit attributable to the
shareholders of the listed company 736,486,112.30 779,002,246.98 779,002,246.98 -5.46%
（yuan）
Net profit after deducting of
non-recurring gain/loss attributable to
725,039,035.06 752,917,711.53 752,917,711.53 -3.70%
the shareholders of listed company
（yuan）
Cash flow generated by business
1,050,811,097.23 817,279,588.10 819,779,588.10 28.18%
operation, net（yuan）
Basic earning per share(yuan/Share) 0.35 0.37 0.37 -5.41%
Diluted gains per share(yuan/Share) 0.35 0.37 0.37 -5.41%
Weighted average income/asset ratio
7.53% 8.60% 8.60% -1.07%
（%）
As at the end of As at the end of last year YoY+/-（%）
the reporting
period Before adjustment After adjustment After adjustment
Gross assets（yuan） 16,404,770,149.44 16,295,910,774.45 16,295,910,774.45 0.67%
Shareholders’ equity attributable to
shareholders of the listed company 9,192,599,494.10 9,586,701,904.06 9,586,701,904.06 -4.11%
（yuan）
The reasons for the change of Accounting Policy and the Correction of Accounting errors
On April 30, 2019, the Notice of the Ministry of Finance on Revising and Issuing the Format of Financial
Statements of General Enterprises (No. 6 Finance and Accounting [2019]) issued by the Ministry of Finance
indicated that the actual government subsidies received should be listed in the item "cash received from other
business activities". In response to such change of accounting policy, the Company adopted the retroactive
adjustment method to retroactively adjust the items reported in the financial statements from January to June 2018,
affecting the item "net cash flow generated from operating activities" in the above table.
3.Particulars about top ten shareholders
In share
Total number of common Total number of preferred shareholders that had
shareholders at the end of the 56,739 restored the voting right at the end of the 0
reporting period reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Proportion Number of Changes Amount of
Amount of Number of
Nature of shares held in un-restricte
Shareholders of shares restricted share
shareholder at period reporting d shares
held（%） shares held pledged/frozen
-end period held
State
Amou
of
nt
share
Guangdong
State-owned
Communication 24.56% 513,412,507 410,032,765 10,337,972
legal person
Group Co.,Ltd
Guangdong Highway State-owned
22.30% 466,325,020 466,325,020
Construction Co., Ltd, legal person
Yadong Fuxing Yalian Domestic non Pled 156,65
9.68% 202,429,149 202,429,149
Investment Co., Ltd. State-ow ge 2,500
ned
Legal person
Tibet Yingyue
State-owned
Investment 4.84% 101,214,574 101,214,574
legal person
Management Co., Ltd.
Guangdong State-owned
2.53% 52,937,491 52,937,491
Expressway Co., Ltd. legal person
Guangfa Securities State-owned
1.45% 30,364,372 30,364,372
Co., Ltd. legal person
Agricultural Bank of
China－Jingshun
Great Wall Energy
Other 1.27% 26,617,103
Infrastructure Mixed
Securities Investment
Fund
China Life Insurance
Co., Ltd.－Dividend
Other 1.15% 23,965,291
－Personal dividend
-005L-FH002 Shen
China Life Insurance
Co., Ltd.－Traditional
－Common insurance Other 1.08% 22,495,445
products-005L-CT001
Shen
Domestic
Feng Wuchu natural person 0.97% 20,222,807
shares
Strategic investor or
general legal person
becoming top-10
None
ordinary shareholder
due to rights issue (if
any)
Related or Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway Construction
acting-in-concert Co., Ltd. and Guangdong Expressway Co., Ltd., It is unknown whether there is relationship between other
parties among shareholders and whether they are persons taking concerted action specified in the Regulations on
shareholders above Disclosure of Information about Change in Shareholding of Shareholders of Listed Companies.
4. 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.
5.The total number of shareholders of the Company's preferred shares and the shareholdings of the top 10
preferred shareholders
□ Applicable √ Not Applicable
The Company did not have any shareholding in the report period.
6. The corporate bonds
Whether the company has a public offering and listed on the stock exchange, and in the semi-annual report
approved the date of the report did not expire or due to full payment of corporate bonds.
no
III. Discussion and analysis by the management
1.General
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
In the first half of 2019, the company, according to the annual business plan established by the board of directors,
soundly did a good job of each work. . In the first half of 2019, the main business income was 1.484 billion yuan,
meaning 46.06% of the annual plan was completed; and the operating costs was 550 million yuan, Flat year-on-year,
representing completed 38.68% of the annual plan.
In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of the
Company are as follows:
Volume of vehicle traffic in Increase Toll income in the first Increase
the first half year of 2019 /Decrease(%) half year of 2019（Ten /Decrease(%
（Ten thousand vehicles） thousand）
Guangfo Expressway 3,537.04 19.74% 23,017.10 2.19%
Fokai Expressway 3,421.36 4.26% 61,731.41 -3.33%
Jingzhu Expressway 3,483.62 -4.35% 60,184.56 -5.27%
Guangzhu East Section
Huiyan Expressway 2,008.31 -1.86% 11,728.74 -3.66%
Guanghui Expressway 3,082.54 10.73% 90,639.13 4.44%
Yuezhao Expressway 1,575.32 8.31% 27,114.74 3.18%
Jiangzhong Expressway 2,736.67 6.30% 22,530.61 -1.90%
Guangle Expressway 1,247.19 8.28% 155,056.82 1.45%
Kangda Expressway 131.96 3.90% 12,001.61 6.16%
Gangkang Expressway 216.06 15.40% 8,659.92 12.80%
Overall situation: During the reporting period, the increase of Guangfo Expressway traffic volume was
higher than that of toll revenue, which was mainly influenced by time-limited goods and distribution of trucks in
the surrounding sections; the toll revenue of Fokai Expressway and Guangzhu Section of Jingzhu Expressway
showed negative growth year on year, which was mainly influenced by the distributions of the surrounding road
network.
Guangfo Expressway: From July 1, 2018, a traffic restriction on trucks with more than 15 tons (7:00-22:00)
has been imposed in the direction of Guangzhou (Yayao-Hengsha Section) that trucks are guided and the time
period of Guangzhou-Foshan Section is adjusted. At the same time, the prohibition on goods was virtually
cancelled early in this year in the Foshan First Ring and drivers can drive on the road for free. Thus, the
proportion of trucks in Guangfo Section has been declined. However, Guangfo Area featured a intensive
transportation of personnel and materials, complete supporting of surrounding buildings, and continuous growth
of cars and vehicles. As a consequence, the increase of traffic volume was higher than that of toll revenue.
Foai Expressway: The toll revenue declined by 3.33% year on year compared with the first quarter, which
was mainly affected by the following factors: on the one hand, the diversion effect of the second phase of Yunzhan
Highway was apparent after the opening of the whole line; on the other hand, the tolls of Foshan First Ring Road
that was originally planned to open in February were repeatedly postponed, but the entry of vehicles was
unrestricted, and the strict control of over-limited and over-load transportation of trucks was not implemented.
Guangzhu Section of Jingzhu Expressway: Due to the combination of multiple factors, such as limited cargo
in some periods of Humen Bridge, the completion and opening of Nansha Bridge and Panguan Expressway, the
traffic volume and toll revenue showed negative growth year-on-year.
Gankang Expressway: traffic volume and toll revenue increased by 15.40% and 12.80% respectively
year-on-year, and continued to grow on the basis of the first quarter. It is mainly affected by many factors, such as
the construction of the surrounding national highway, the overhaul of sand and stone vehicles, and the restriction
of the passage of some trucks.
Kangda Expressway: In the first half of the year, toll revenue increased by 6.16% year-on-year in the fir
st half of this year, which was mainly influenced by the combined influence such as the gradual stabiliz
ation of the negative impact of the Dayu Section of the 323 National Highway in 2017 and the stabiliza
tion of traffic volume.
2.Matters relating to financial report
(1)Explain change of the accounting policy, accounting estimate and measurement methods as compared with the
financial reporting of last year.
√Applicable□ Not applicable
①Changes in accounting policies resulting from the implementation of the new financial instrument
guidelines
The Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments
(Revised in 2017), the Accounting Standards for Enterprises No. 23 - Transfer of Financial Assets (Revised in
2017), and the Accounting Standards for Enterprises No. 24 - Hedge Accounting Standards for Enterprises
(Revised in 2017) (Accounting [2017] No. 9) promulgated by the Ministry of Finance on March 31, 2017, as well
as the Accounting Standards for Enterprises No. 37 - Financial Instruments Presentation (Revised in 2017)
(Accounting [2017] No. 14) (collectively referred to as "New Financial Instruments Standards") issued on May 2,
2017 requires domestic listed enterprises to implement the new standards from January 1, 2019. Guidelines for
financial instruments.
Through the resolution of the 25th (provisional) meeting of the eighth board of directors of the Company on
April 26, 2019, the Company began to implement the aforementioned new financial instrument guidelines on
January 1, 2019.
All recognized financial assets under the new financial instrument standards are subsequently measured at
the amortized cost or fair value. On the date of implementation of the new financial instrument standards, the
business model of managing financial assets is evaluated on the basis of the existing facts and circumstances of
the Company on that day, and the characteristics of contractual cash flow on the financial assets are evaluated on
the basis of facts and circumstances at the time of initial recognition of financial assets. The financial assets are
divided into three categories: measured according to the amortized cost and measured according to the public
value. Value is measured and its changes are included in other comprehensive income and fair value, and its
changes are included in current profits and losses. Among them, when the financial asset terminates recognition,
the accumulated gains or losses previously included in other comprehensive gains will be transferred from other
comprehensive gains to retained gains, not into current profits and losses.
Under the new financial instrument standards, based on the expected credit loss, the Company makes
provision for impairment of financial assets measured by amortized cost, investment in debt instruments measured
by fair value and its changes included in other comprehensive gains, lease receivables, contractual assets and
financial guarantee contracts, and confirms the loss of credit impairment.
The Company retrospectively applies the new financial instrument standards, but for classification and
measurement (including impairment) involving the inconsistency between the previous comparative financial
statement data and the new financial instrument standards, the Company chooses not to repeat. Therefore, for the
cumulative impact of the first implementation of this standard, the Company adjusted the retained earnings or
other comprehensive earnings at the beginning of 2019 and the amount of other related items in the financial
statements, which were not restated in the financial statements of 2018.
The main changes and impacts of the implementation of the new financial instrument guidelines on our
Company are as follows:
- On January 1, 2019 and beyond, the Company designated some non-tradable equity investments held as
financial assets measured at fair value and included their changes in other comprehensive income, and reported
them as investments in other equity instruments.
- For the long-term equity investment of associates, the Company re-classified and measured the financial
instruments according to the new financial instrument standards, and the Company adjusted accordingly according
to the equity method.
- The Company holds part of the debt instruments, whose cash flow generated on a specific date is only the
payment of principal and interest based on the amount of unpaid principal, and the business model of the
Company's management of the financial assets is to collect the cash flow of the contract. The Company will take it
from other sources on January 1, 2019 and beyond. Non-current assets are reclassified to creditor's rights
investment.
A. Comparison of financial assets classification and measurement before and after the first implementation
date
a. Impact on the consolidated financial statements
December 31, 2018 (before change) January 1, 2019 (after the change)
Items Measurement category Book value Items Measurement category Book value
Available-for-sales Measured at fair value 1,668,791,594.53 Investment in Measured at fair value and 1,668,791,594.53
financial assets and included in other other equity included in other
comprehensive benefits instruments comprehensive earnings
(equity instruments)
long-term equity Cost method/equity 3,145,644,970.07 long-term equity Cost method/equity method 3,145,355,906.88
investments method investments
b. Impact on the financial statement
December 31, 2018 (before change) January 1, 2019 (after the change)
Items Measurement Book value Items Measurement category Book value
category
Available-for-sales Measured at fair 1,668,791,594.53 Investment in Measured at fair value and 1,668,791,594.53
financial assets value and included in other equity included in other
other comprehensive instruments comprehensive earnings
benefits (equity
instruments)
long-term equity Cost method/equity 4,679,309,978.88 long-term equity Cost method/equity method 4,679,020,915.69
investments method investments
Other non-current amortized cost 692,903,684.98 Creditor's right amortized cost 692,903,684.98
assets investment
B. On the first execution date, the book value of the original financial assets shall be adjusted to a new
adjustment table for the book value of the financial assets classified and measured in accordance with the
provisions of the new financial instrument standards.
a. Impact on consolidated statements
Items December 31, 2018 Re-measurem January 1,2019
(before change) Re-Class ent (after change)
Measured at fair value and included in other
comprehensive earnings:
Available-for-sale financial assets (original guidelines) 1,668,791,594.53
Less transfer to other creditor's rights investment
Less: transfer to other non-current financial assets
Less: transfer to other equity instruments 1,668,791,594.53
Balances shown in accordance with the new financial
instrument guidelines
Investment in other equity instruments
Add: transfer from available-for-sale financial assets 1,668,791,594.53
(original criteria)
Re-measurement: re-measurement at fair value
Balances shown in accordance with the new financial 1,668,791,594.53
instrument guidelines
b. Impact on the Company's financial statements
Items December 31, 2018 Re-Class Re-measurem January 1,2019
(before change) ent (after change)
Amortized cost
Other non-current assets (original criteria) 692,903,684.98
Less: transfer to creditor's rights investment 692,903,684.98
Balances shown in accordance with the new
financial instrument guidelines
Creditor's rights investment
Add: transfer from other non-current assets 692,903,684.98
(original criteria)
Re-measurement: expected credit loss preparation
Balances shown in accordance with the new 692,903,684.98
financial instrument guidelines
Measured at fair value and included in other
comprehensive earnings:
Available-for-sale financial assets (original 1,668,791,594.53
guidelines)
Less: transfer to other creditor's rights investment
Less: transfer to other non-current financial assets
Less: transfer to other equity instruments 1,668,791,594.53
Balances shown in accordance with the new
financial instrument guidelines
Investment in other equity instruments
Add ： transfer from available-for-sale financial 1,668,791,594.53
assets (original criteria)
Re-measurement: re-measurement at fair value
Balances shown in accordance with the new 1,668,791,594.53
financial instrument guidelines
C. Financial assets impairment provision adjustment table on the first implementation date
a. Impact on consolidated statements
Measurement category December 31, 2018 Re-Class Re-measurement January 1, 2019
(before change) (after change)
Measured at fair value and included in other
comprehensive benefits (debt instruments)
Provision for impairment of available-for-sale 37,020,000.00 37,020,000.00
financial assets
Investment in other equity instruments 37,020,000.00 37,020,000.00
b. Impact on the Company's financial statements
Measurement category December 31, Re-Class Re-measu January 1,
2018 rement 2019
(before change) (after change)
Measured at fair value and included in other comprehensive benefits
(debt instruments)
Provision for impairment of available-for-sale financial assets 7,020,000.00 7,020,000.00
Investment in other equity instruments 7,020,000.00 7,020,000.00
D. Impact on retained earnings and other comprehensive earnings as of January 1, 2019
December 31, 2018 Consolidated retained Consolidated surplus Consolidation of other
earnings reserve comprehensive benefits
December 31,2018 3,938,609,136.59 245,109,114.81
1. Re-measurement of long-term equity -11,353,413.48 11,064,350.29
investment
January 1, 2019 3,927,255,723.11 256,173,465.10
②Other accounting policy changes
E. On April 30, 2019, the Notice of the Ministry of Finance on Revising and Issuing the Format of Financial
Statements of General Enterprises (No. 6 Finance and Accounting [2019]) issued by the Ministry of Finance
adjusts the format of financial statements of enterprises accordingly, and regulates that the detailed items of
"management expenses" and "R&D expenses" should be separated from the items of "management expenses" in
the profit statement; it also indicates that the actual government subsidies received should be listed in the item
"cash received from other business activities". In response to such change of accounting policy, the Company
adopts the retroactive adjustment method to retroactively adjust the items reported in the financial statements from
January to June in 2018, as follows:
a. Impact on consolidated statements
January - June 2018 Before adjustment After Adjustment Change
Administrative Fees 75,594,633.97 73,109,460.94 -2,485,173.03
R&D expense 2,485,173.03 2,485,173.03
Other cash receipts relating to operating 39,446,329.98 41,946,329.98 2,500,000.00
activities
Receipt of other cash related to fund-raising 2,500,000.00 -2,500,000.00
activities
b. Impact on the Company's financial statements
January - June 2018 Before adjustment After Adjustment Change
Other cash receipts relating to operating 46,329,459.08 48,829,459.08 2,500,000.00
activities
Receipt of other cash related to fund-raising 293,500,000.00 291,000,000.00 -2,500,000.00
activities
(2)Explain retrospective restatement due to correction of significant accounting errors in the reporting period
□Applicable √ Not applicable
N/A
(3)Explain change of the consolidation scope as compared with the financial reporting of last year.
□Applicable √Not applicable
There was no change in the scope of the consolidated financial statements during the reporting period.
