2019 Annual Report
Guangdong Provincial Expressway Development Co., Ltd.
2019 Annual Report
April 2020
2019 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of the
Company hereby warrant that at the year , there are no misstatement, misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness
of the contents hereof.
Mr.Zheng Renfa, The Company leader, Mr. Wang Chunhua, General Manager, Mr. Fang Zhi, Chief financial
officer and the Ms.Zhou Fang, the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual
report.
All the directors attended the board meeting for reviewing the Annual Report.
The toll revenues of Expressway is main source of the major business income of the company , The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province, autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.
Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments, and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So, the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So, the charging policy changes and charges adjustment will affect the highways operation of the
company.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
2,090,806,126 for the base, the Company would distribute cash dividend to all the shareholders at the rate of
CNY4.22 for every 10 shares (with tax inclusive) , 0 bonus shares （ including tax ） and no reserve would be
converted into share capital.
2019 Annual Report
Table of Contents
I. Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Discussion and Analysis of Operation
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about convertible corporate bonds
IX. Information about Directors, Supervisors and Senior Executives
X. Administrative structure
XI. Corporate Bond
XII. Financial Report
XIII. Documents available for inspection
2019 Annual Report
Definition
Terms to be defined Refers to Definition
Reporting period, This year Refers to January 1, 2019 to December 31, 2019
The annual report of the company was approved by the board of
Reporting date Refers to
directors on 2019, that is April 3, 2020
YOY Refers to Compared with 2018
The Company /This Company Refers to Guangdong Provincial Expressway Development Co.,Ltd.
Communication Group Refers to Guangdong Communication Group Co., Ltd.
Guangdong Expressway Refers to Guangdong Expressway Co.,Ltd.
Construction Company Refers to Guangdong Highway Construction Co., Ltd.
Technology Company/Guangdong
Refers to Guangdong Expressway Technology Investment Co., Ltd
Expressway Technology
Fokai Company Refers to Guangdong Fokai Expressway Co., Ltd.
Fokai Branch Refers to Guangdong Fokai Expressway Co., Ltd. Fokai Branch
Reconstruction and extension Project of the Reconstruction and Expansion Project of Sanbao-Shuikou Section
Refers to
South Section of Fokai Expressway of Fukai Expressway.
Guangfo Company Refers to Guangdong Guangfo Expressway Co., Ltd.
Guangdong Expressway Capital Refers to Yuegao Capital Investment (Hengqin) Co., Ltd.
Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co., Ltd.
Guangdong Provincial Expressway Development Co.,Ltd. issues
Major assets restructuring Refers to shares and uses cash to purchase assets and raise counterpart funds
and Related transaction
2019 Annual Report
II. Basic Information of the Company and Financial index
1．Company Information
Stock abbreviation: Guangdong Expressway A,B Stock code： 000429,200429
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东省高速公路发展股份有限公司
Chinese Abbreviation 粤高速
English name (If any) Guangdong Provincial Expressway Development Co.Ltd.
English Abbreviation (If any) GPED
Legal Representative Zheng Renfa
Registered address 85 Baiyun Road, Guangzhou, Guangdong Province
Postal code of the Registered
510100
Address
45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe Disrtict ,
Office Address
Guangzhou
Postal code of the office address 510623
Internet Web Site www.gpedcl.com
E-mail ygs@gdcg.cn
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
46/F, Litong Plaza, No.32, Zhujiang East Road, 45/F, Litong Plaza, No.32, Zhujiang East Road,
Contact address
Zhujiang New City, Tianhe District , Guangzhou Zhujiang New City, Tianhe District , Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Information disclosure and placed
Securities Times, China Securities, Shanghai Securities
Newspapers selected by the Company for information disclosure
Daily and Hongkong Commercial Daily.
Internet website designated by CSRC for publishing the Annual
www.cninfo.com.cn
report of the Company
The place where the Annual report is prepared and placed Securities affair Dept of the Company
2019 Annual Report
4.Changes in Registration
Organization Code 91440000190352102M
Changes in principal
business activities No change
since listing (if any)
On November 2000, In accordance with Cai Guan Zi (2008) No. 109 Document of Ministry of Finance
and Yue Ban Han (2000) No. 574 Document of General Office of Guangdong People's Government, the
Changes is the
state-owned shares of Guangdong Expressway originally entrusted to Guangdong Expressway Company
controlling
(now renamed as "Guangdong Provincial Expressway Co., Ltd.") for management were transferred to
shareholder in the
Guangdong Communication Group Co., Ltd. for holding and management. After the transfer of
past (is any)
state-owned shares, Guangdong Communication Group Co., Ltd. became the largest shareholder of the
Company. The nature of equity was defined as state-owned shares.
5. Other Relevant Information
CPAs engaged
Name of the CPAs Ruihua Cerified Public Accountants(Special General Partnership)
Office address： 11F, West Tower, China Overseas Property Plaza, Yongding Men, Dongcheng District, Beijing
Names of the Certified Public
Qin Yanlin, Huang Zhiyan
Accountants as the signatories
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.
□ Applicable√ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
□ Applicable√ Not applicable
6.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
Changed over
2019 2018 2017
last year（％）
Operating income（RMB） 3,057,935,584.43 3,218,694,083.94 -4.99% 3,089,055,399.21
Net profit attributable to the shareholders
1,258,628,101.71 1,677,028,179.18 -24.95% 1,509,922,398.70
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 1,249,576,930.75 1,395,441,391.82 -10.45% 1,271,993,450.05
listed company（RMB）
Cash flow generated by business
1,988,551,897.83 1,915,985,578.04 3.79% 2,194,989,925.35
operation, net（RMB）
2019 Annual Report
Changed over
2019 2018 2017
last year（％）
Basic earning per share(RMB/Share) 0.60 0.80 -25.00% 0.72
Diluted gains per
0.60 0.80 -25.00% 0.72
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 13.09% 18.37% -5.28% 17.69%
End of Changed over
End of 2019 End of 2017
2018 last year（％）
Gross assets（RMB） 17,674,545,340.78 16,295,910,774.45 8.46% 16,523,315,093.72
Net assets attributable to shareholders of
9,823,426,849.75 9,586,701,904.06 2.47% 9,023,071,118.45
the listed company（RMB）
7.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
8.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 736,437,257.60 747,235,987.61 796,831,081.45 777,431,257.77
Net profit attributable to the
354,064,646.18 382,421,466.12 371,244,455.76 150,897,533.65
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
353,871,455.69 371,167,579.37 372,502,498.79 152,035,396.90
to the shareholders of listed
company
Net Cash flow generated by
518,337,607.13 532,473,490.10 583,972,506.76 353,768,293.84
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
2019 Annual Report
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2019) Amount (2018) Amount (2017) Notes
Non-current asset disposal
gain/loss(including the write-off part for 7,607,268.21 63,173,138.25 -2,745,683.68
which assets impairment provision is made)
Govemment subsidies recognized in current
gain and loss(excluding those closely related
87,937.00 1,113,228.32 385,932.17
to the Company’s business and granted
under the state’s policies)
Net amount of non-operating income and
-1,393,149.65 -1,545,368.05 61,458,075.96
expense except the aforesaid items
Other non-recurring Gains/loss items 1,652,603.05
Less :Influenced amount of income tax 1,130,270.54 -230,679,518.30 -178,668,186.37
Influenced amount of minor shareholders’
-2,226,782.89 11,833,729.46 -162,437.83
equity (after tax)
Total 9,051,170.96 281,586,787.36 237,928,948.65 --
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.
2019 Annual Report
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and
Jingzhu Expressway Guangzhu Section investment in technological industries and provision of relevant
consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co.,
Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Ex
pressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Petty Loan Co., Ltd., Guangdong
Guangle Expressway Co.,Ltd.and Guoyuan Securities Co., Ltd. As of the end of the reporting period, the
company’s share-controlled expressway is 153.71 km, and the share-participation expressway is 263.41 km.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
An increased by 109.65 million yuan and 3.49% over the beginning of the year, Mainly due to the
Equity assets
combined influence of the operation accumulation and profit distribution of the participating units.
An increased by 1325.65 million yuan and 17.44% over the beginning of the year，It was mainly
influenced by the completion and opening of the expansion project of southern section of Fokai
Fixed assets Expressway and carry-forward of fixed assets. Fixed assets increased by 2.121 billion yuan, while fixed
assets decreased by 787 million yuan due to increased depreciation of road property of Fokai
Expressway and Guangzhu East Company.
Intangible assets No significant change.
A decreased by 860.37 million yuan and 78.97% over the beginning of the year， mainly due to the
Construction in
completion and opening of the main line of the reconstruction and expansion project of southern section
process
of Fokai Expressway and the carry-forward of fixed assets.
An increased by 693.4 million yuan and 32.641% over the beginning of the year，mainly due to
Monetary funds
increased borrowing in fund-raising activities.
An increased by 167.03 million yuan and 10.01% over the beginning of the year，mainly due to the
Other eqiuty
increase in the company's share price of Everbright Bank and the increase in the value of other equity
instrument Investment
instruments measured at fair value.
A decreased by 61.99 million yuan and 13.85% over the beginning of the year，mainly due to that after
Deferred income tax the absorption and merger of the original wholly-owned subsidiary company as a branch Company, the
assets income of the branch Company this year made up part of the Company's deductible losses in previous
years.
2019 Annual Report
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III. Analysis On core Competitiveness
The toll revenue of expressway industry mainly depends on the regional economic development. The
regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokai
expressway, controlled by the company, are part of the National Expressway Network Planning-“Five vertical and
seven horizontal ”,The share-controlled Beijing-Zhuhai Guangzhu Section Expressway is a fast and convenient
expressway. And many of the company’s equity-participation expressways that are part of the main skeleton of
the Guangdong Provincial Expressway Planning- “ Ten vertical and five horizontal ” , which provides a strong
guarantee for stable traffic volume. Meanwhile, the regional economy is the critical factor that influences the
traffic volume, as Guangdong province is the economically developed region, with years ’ continuous high
growth of GDP, so that provides the stable rising demand for the company.
2019 Annual Report
IV. Discussion and Analysis of Operation
I. General
In 2019, the board of directors of the company actively implemented the resolutions of the shareholders' meeting,
conscientiously performed its duties, led the company's management team, made solid progress in key work,
continuously optimized the structure of the core main business, achieved phased results and better completed
various tasks.
1. In 2019, the company's main road production was affected by the diversion of the surrounding road
network and ETC preferential policies. The company realized operating income of 3.058 billion yuan, reaching
94.91% of the target of 3.222 billion yuan and operating cost at 1.356 billion yuan, and completed the target value
of "controlled within 1.422 billion yuan."
2. It completed the task of canceling the construction of expressway provincial toll station. According to the
Ministry of Communications's plan to cancel the overall work of the provincial boundary stations of expressways,
the company successfully completed the construction of ETC portal system, ETC special lanes, ETC mixed lanes,
entrance overload control system, and the construction and renovation of toll station level systems.
3. The reconstruction and expansion project for the southern section of Fokai Expressway was completed and
opened to traffic ahead of schedule. Under the scientific construction organization and schedule management, the
entire reconstruction and expansion project in the southern section of Fokai Expressway was completed and
opened to traffic on November 7, 2019, one and a half years ahead of the approved construction deadline, marking
the successful completion of the first reconstruction and expansion project after the implementation of the
development planning outline for the Great Bay Area of Guangdong, Hong Kong, Macao and Taiwan. The
reconstruction and expansion project for the southern section of Fokai Expressway was successfully completed
and opened to traffic, further optimizing and expanding the company's core business. The reconstruction and
expansion project of Shenzhen Huiyan Expressway invested by the company is also progressing steadily as
planned.
4. The land resources along the line are optimized and revitalized. The company insisted on the
comprehensive development of land resources along the line as the main direction, and paid close attention to the
preliminary work of the project in 2019. The land resources along the Fokai Expressway, including
Zhishan,Chenshan, Xinjitian and Yanshan service areas, have made phased progress in their revitalization.
5. The fee adjustment for the reconstruction and expansion project in the southern section of Fokai
Expressway was completed and the re-verification of the fee operation period was promoted. From zero o'clock
on November 8, 2019, the southern section of Fokai Expressway implemented the adjusted charging standard
approved by the government; Meanwhile, the company promptly organized materials to report to the relevant
government departments for re-approval of the operation period, and strived to obtain the approval of the
provincial government for implementation as soon as possible.
6. The screening of high-quality project sources was strengthened. Firstly, the company actively seized the
development opportunities and investment opportunities of the main business. The company’s investment team
was focusing on following up a number of expressway projects in and outside the province, collecting, analyzing
and calculating relevant data through a wide range of channels, and accumulating experience for accurately
2019 Annual Report
selecting expressway investment targets; Secondly, it concentrated on mining the group's five major
industry-related projects, actively reserved projects, and carried out in-depth research and investigation on key
projects to lay the foundation for further promotion.
II. Main business analysis
1. General
Volume of vehicle traffic in Increase Toll income in 2019（Ten Increase /Decrease(%
2019（Ten thousands vehicles） /Decrease(%) thousands）
Guangfo Expressway 7,596.92 15.60% 47,134.57 -0.68%
Fokai Expressway 7,668.46 1.72% 127,661.44 -3.84%
Jingzhu Expressway 7,330.12 -9.84% 118,742.52 -9.65%
Guangzhu East Section
Huiyan Expressway 4,234.94 2.42% 24,667.08 0.56%
Guangzhao Expressway 3,506.46 7.62% 55,550.74 0.86%
Guanghui Expressway 7,033.28 12.38% 191,770.96 4.71%
Jiangzhong Expressway 6,134.67 6.67% 45,633.10 -4.82%
Kangda Expressway 324.21 7.20% 25,677.24 7.05%
Gangkang Expressway 517.41 29.38% 18,438.04 10.97%
Guangle Expressway 3,039.42 13.20% 318,505.70 2.74%
1. Guangfo Expressway: The increase in traffic volume is higher than the increase in toll revenue, which is
mainly affected by the following factors: (1) From July 1, 2018, traffic restrictions was imposed on trucks with a
capacity of more than 15 tons (7:00-22:00) towards Guangzhou (Yayao-Hengsha section), so as to guide trucks to
adjust the time period for running in Guangfo section; (2) Foshan First Ring Road completed high-speed
renovation and opened to traffic at the beginning of the year. Restriction on goods was cancelled and free passage
was allowed, resulting in a decrease in the proportion of trucks traveling in Guangzhou-Foshan Expressway; (3)
From July 2019, a new preferential policy for Guangdong Pass Card was implemented (from a discount of 2% to a
discount of 5%), resulting in a drop in tolls. (4) Guangfo Area featured a intensive transportation of personnel and
materials, complete supporting of surrounding buildings, and continuous growth of cars flow.
2. Fokai Expressway: Toll revenue fell year on year mainly due to the following factors: (1) Foshan First
Ring Road completed high-speed renovation and opened to traffic at the beginning of the year; Restriction on
goods was cancelled and free passage was allowed, which diverted some traffic; (2) From July 2019, a new
preferential policy for Guangdong Pass Card was implemented (from a discount of 2% to a discount of 5%),
resulting in a drop in tolls. (3) After the opening of Yuzhan Expressway Phase II, the diversion effect appeared.
3. Guangzhu Section of Jingzhu Expressway: Main reasons for decrease of traffic flow and toll revenue year
on year: (1) Nansha Bridge and Dongguan-Panyu Expressway Phase II completed and opened to traffic, resulting
in divergence of vehicles. (2) From August 2019, Humen Bridge was closed to trucks and buses with more than 40
seats for 24 hours, resuting in diversion effect on trucks and buses. (3) From July 2019, a new preferential policy
for Guangdong Pass Card was implemented (from a discount of 2% to a discount of 5%), resulting in a drop in
tolls.
4. Huiyan Expressway: The continuous increase in traffic volume of small passenger cars, strict enforcement
2019 Annual Report
of truck overload control, and the change of original overloaded vehicles to multi-vehicle transportation offset the
adverse impact on road traffic during the construction of reconstruction and expansion project of
Huizhou-Shenzhen Expressway, and toll revenue was even.
5. Guanghui Expressway: The growth of traffic volume and toll revenue is mainly due to the natural growth
of traffic volume on the road section and the additional traffic volume brought about by the opening of
Fenghuangshan Tunnel on the adjacent road section.
6. Guangle Expressway: It was the main reason for the year-on-year growth in traffic volume and toll
revenue. Toll revenue in the first half of 2019 was basically the same as that of last year. The newly opened
Renhua-Shenzhen Expressway diverted some car traffic volume during the Spring Festival, but it had little impact
after the Spring Festival; Toll revenue increased slightly in the second half of the year. The larger increase in toll
revenue in November was mainly due to the return of vehicles diverted from airport high-speed construction to
Jingzhou South Expressway in the same period last year; The relatively large increase in toll revenue in December
was due to the early start of the spring festival transportation in 2020 and the relatively large demand for freight
logistics and the relatively large increase in truck toll revenue at the end of the year under the marketing stimulus
of major e-commerce companies; In the second half of the year, toll revenue increased slightly year on year driven
by toll revenue growth.
7. Gankang Expressway: The year-on-year increase in traffic volume and toll revenue was mainly due to the
combined effects of multiple factors such as drainage of fruit and vegetable markets in East China City, poor
condition of national roads and over-regulation of national roads, restriction on the passage of some trucks, and
backflow of vehicles.
8. Kangda Expressway: The main reasons for the increase in traffic volume and toll revenue were: (1) Traffic
volume on Nankang-Dayu Expressway increased due to traffic restrictions in Nankang region and the construction
of Qinglong and Xincheng sections of National Highway 323. (2) Traffic volume on road sections kept growing
naturally, and the logistics industry was steadily improving, which stimulated the growth of freight vehicles. (3)
The opening of the Wuhan-Shenzhen Expressway and Shantou-Kunming Expressway in Guangdong has
narrowed the distance between Ganzhou and Shenzhen, Dongguan and the eastern part of Guangzhou, attracting a
large number of small buses for the kangda Expressway.
2. Revenue and cost
(1)Component of Business Income
In RMB
2019 2018
Increase /decrease
Amount Proportion Amount Proportion
Total operating
3,057,935,584.43 100% 3,218,694,083.94 100% -4.99%
revenue
Industry
Highway
2,935,385,249.67 95.99% 3,116,441,804.18 96.82% -5.81%
transportations
Other 122,550,334.76 4.01% 102,252,279.76 3.18% 19.85%
Product
2019 Annual Report
2019 2018
Increase /decrease
Amount Proportion Amount Proportion
Highway
2,935,385,249.67 95.99% 3,116,441,804.18 96.82% -5.81%
transportations
Other 122,550,334.76 4.01% 102,252,279.76 3.18% 19.85%
Area
Guangfo
471,345,653.88 15.41% 474,591,734.35 14.74% -0.68%
Expressway
Fokai Expressway 1,276,614,430.61 41.75% 1,327,567,186.19 41.25% -3.84%
Jingzhu
Expressway 1,187,425,165.18 38.83% 1,314,282,883.64 40.83% -9.65%
Guangzhu Section
Other 122,550,334.76 4.01% 102,252,279.76 3.18% 19.85%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
√ Applicable □Not applicable
In RMB
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
Increase/decrea Increase/decrea
Increase/decrea
se of business se of gross
Gross se of revenue in
cost over the profit rate over
Turnover Operation cost profit the same period
same period of the same period
rate(%) of the previous
previous year of the previous
year(%)
(%) year (%)
Industry
Highway
2,935,385,249.67 1,258,716,527.73 57.12% -5.81% 4.69% -4.30%
transportations
Product
Highway
2,935,385,249.67 1,258,716,527.73 57.12% -5.81% 4.69% -4.30%
transportations
Area
Guangfo
471,345,653.88 113,805,926.37 75.86% -0.68% 11.34% -2.60%
Expressway
Fokai Expressway 1,276,614,430.61 779,246,352.00 38.96% -3.84% 10.69% -8.01%
Jingzhu
Expressway 1,187,425,165.18 365,664,249.36 69.21% -9.65% -7.69% -0.65%
Guangzhu Section
2019 Annual Report
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry category
In RMB
2019 2018
Industry
Proportion in Proportion in Increase/
category Items
Amount the operating Amount the operating Decrease (%)
costs (%) costs (%)
Highway Depreciation
827,637,925.95 61.02% 795,052,567.72 62.16% 4.10%
transportations and Amortized
Highway Out of pocket
431,078,601.78 31.78% 407,293,840.94 31.84% 5.84%
transportations expenses
Other Other 97,696,326.04 7.20% 76,748,662.66 6.00% 27.29%
Note
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□ Yes √ No
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
□ Applicable √Not applicable
3.Expenses
In RMB
Increase/
2019 2018 Notes
Decrease(%)
Administrative expenses 192,182,962.68 183,392,148.68 4.79%
Financial expenses 213,705,131.87 212,592,783.74 0.52%
2019 Annual Report
In 2018, Yuegaoke incurred research
R & d expenses 1,318,344.01 -100.00% and development costs for the "Blue
Channel" project, but not in 2019.
4. Research and Development
√ Applicable □Not applicable
No R & D projects in 2019 .
R & D investment
2019 2018 Increase /decrease
Number of Research and Development persons (persons) 0 17 -100.00%
Proportion of Research and Development persons 0.00% 0.77% -0.77%
Amount of Research and Development Investment (In RMB) 0.00 1,318,344.01 -100.00%
Proportion of Research and Development Investment of Operation Revenue 0.00% 0.04% -0.04%
Amount of Research and Development Investment Capitalization (In RMB) 0.00 0.00 0.00%
Proportion of Capitalization Research and Development Investment of
0.00% 0.00% 0.00%
Research and Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Increase/
Items 2019 2018
Decrease(%)
Subtotal of cash inflow received from operation activities 3,169,520,869.81 3,384,347,808.21 -6.35%
Subtotal of cash outflow received from operation activities 1,180,968,971.98 1,468,362,230.17 -19.57%
Net cash flow arising from operating activities 1,988,551,897.83 1,915,985,578.04 3.79%
Subtotal of cash inflow received from investing activities 440,203,871.09 642,611,742.49 -31.50%
Subtotal of cash outflow for investment activities 823,074,417.73 845,371,278.92 -2.64%
Net cash flow arising from investment activities -382,870,546.64 -202,759,536.43 88.83%
Subtotal cash inflow received from financing activities 3,756,700,000.00 1,385,000,000.00 171.24%
Subtotal cash outflow for financing activities 4,667,450,932.28 3,335,697,061.08 39.92%
Net cash flow arising from financing activities -910,750,932.28 -1,950,697,061.08 -53.31%
Net increase in cash and cash equivalents 693,395,898.18 -239,738,904.10 -389.23%
2019 Annual Report
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1. Cash inflow from investment activities was 440 million yuan, of which 420 million yuan was received as cash
dividends from equity investments and 20 million yuan was received from the disposal of intellectual property
rights related to "Blue Channel"; The year-on-year decrease of 202 million yuan was mainly due to the disposal of
the Zhuhai section of Guangzhou-Macao Expressway by 227 million yuan in the same period last year.
2. Cash inflow from fund-raising activities was 3.757 billion yuan, which was loans obtained; The year-on-year
increase of 2.372 billion yuan was due to increased borrowing.
3. Cash outflow from fund-raising activities amounted to 4.667 billion yuan, of which 3.017 billion yuan was paid
for debt, 1.649 billion yuan was paid for dividends and interest; The year-on-year increase of 1.332 billion yuan w
Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
□ Applicable √ Not applicable
III.Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion
Amount in total Explanation of cause Sustainable (yes or no)
profit
Investment It is due to the operation accumulation of
508,416,135.27 28.43% Sustainable
Income participant companies
Fokai Expressway Branch accrued impairment
Asset impairment -7,238,195.84 -0.40% Not sustainable
reserve for fixed assets
Non-operating Mainly the compensation income of road
2,965,674.12 0.17% Not sustainable
income property
Non-operating Mainly non-current asset disposal losses and
15,783,456.02 0.88% Not sustainable
expenses road property repair expenses
The subsidiary Yuegaoke disposed the
Assets disposal intellectual property rights related to "Blue
19,031,900.46 1.06% Not sustainable
earnings Channel" and confirmed the income from asset
disposal
2019 Annual Report
IV. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2019 End of 2018
Proportion
Proportion in the Proportion in the Notes to the significant change
Amount Amount increase/decrease
total assets(%) total assets(%)
It was mainly due to increased borrowing in investment
Monetary fund 2,817,920,894.50 15.94% 2,124,524,996.32 13.04% 2.90%
activities.
Accounts receivable 125,343,724.66 0.71% 91,076,995.07 0.56% 0.15% It was mainly due to the increase in tolls to be split.
Inventories 111,683.22 0.00% 81,017.91 0.00% 0.00%
Investment real estate 3,331,500.37 0.02% 3,579,007.54 0.02% 0.00%
Long-term equity
3,255,739,898.36 18.42% 3,146,092,065.25 19.31% -0.89%
investment
It was mainly due to the completion and opening of the
main line of the reconstruction and expansion project
Fixed assets 8,925,700,473.65 50.50% 7,600,046,319.91 46.64% 3.86%
from the southern section of the Fokai Expressway and
the carry-forward of fixed assets.
It was mainly due to the completion and opening of the
Construction in main line of the reconstruction and expansion project
229,098,299.48 1.30% 1,089,473,425.63 6.69% -5.39%
process from the southern section of the Fokai Expressway and
the carry-forward of fixed assets.
Long-term loans 4,640,425,000.00 26.25% 2,983,040,000.00 18.30% 7.95% Borrowing increased in the current period.
2019 Annual Report
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
In RMB
Impairment
Gain/Loss on Cumulative fair Purchased Sold amount
provisions
fair value value change amount in the in the Other
Items Opening amount in the Closing amount
change in the recorded into reporting reporting changes
reporting
reporting period equity period period
period
Financial assets
4.Other equity instrument
1,668,791,594.53 519,913,426.24 1,835,822,604.77
investment
Subtotal of financial assets 1,668,791,594.53 519,913,426.24 1,835,822,604.77
Total of the above 1,668,791,594.53 519,913,426.24 1,835,822,604.77
Financial liabilities 0.00 0.00
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?
□ Yes √No
3. Assets right restriction till end of reporting period
The balance of restricted bank deposits at the end of the period was RMB 1,221,200.00, which was the land reclamation fund deposited into the fund custody account
for the reconstruction and expansion project of sanbao to shuikou section of Fokai Expressway.
V. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2019(Yuan) Investment Amount in 2018(Yuan) Change rate
1,140,508,126.36 824,811,091.23 38.28%
2019 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □Not applicable
In RMB
Name of Gain or
Share Progress up Whether
the Main Investment Investment Capital Investment Product Less or the Date of
Proportion Partner to Balance Anticipated to Involve Disclosure Index
Company Business Way Amount Source Horizon Type Current Disclosure
% Sheet Date Income in Lawsuit
Invested Investment
Announcement of
Shenzhen Huiyan Co., On the basis Resolutions of the
Huiyan Ltd. of the term 13th (Provisional)
Yantian
Express Express Increase Unallocated of operation Limited October Meeting of the
56,717,650.00 33.33% Port Co., Completed 0.00 0.00 No
way way capital profit approved by Company 31,2017 Eighth Board of
ltd.
Co., conversion the Directors,
Ltd. Capital government Announcement of
External Investment
Total -- -- 56,717,650.00 -- -- -- -- -- -- 0.00 0.00 -- -- --
2019 Annual Report
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □Not applicable
In RMB
Industry in Accumulated Accumulated Reasons for failure
Fixed
Form of which the Investment actual amount realized return in meeting Date of
assets Source of Estimated Disclosure index（If
Name investme investment amount during the invested as of the Progress as of the end of scheduled progress Disclosure(If
investmen und return any）
nt project reporting period end of reporting the end of the and estimated any)
t or not
operates period reporting period return
Announcement of
Fokai the 19th
Expressway (Provisional)
southern Self and Meeting of the
Self Yes Expressway 1,083,790,476.36 2,582,255,320.52 75.37% 0.00 0.00 Not applicable June 17,2016
section Borrowing Seventh Board of
Extension Directors,
project Announcement of
External Investment
Total -- -- -- 1,083,790,476.36 2,582,255,320.52 -- -- 0.00 0.00 -- -- --
2019 Annual Report
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Book value Purchase Sale
Changes in Book value
Stock Mode of balance at the Cumulative fair amount amount Gain/loss of Sauce of
Security Security Initial fair value balance at the end Accountin
Abbreviati accounting beginning of value changes in in the in the the reporting the
category code investment cost of the this of the reporting g items
on: measurement the reporting equity this this period shares
period period
period period period
Other
Domestic and Everbright equity
601818 517,560,876.80 FVM 870,443,292.80 0.00 519,913,426.24 0.00 0.00 37,876,045.98 1,037,474,303.04 Self
foreign stocks Bank instrument
investment
Total 517,560,876.80 -- 870,443,292.80 0.00 519,913,426.24 0.00 0.00 37,876,045.98 1,037,474,303.04 -- --
Disclosure Date of Announcement on
Securities Investment Approved by the July 22,2009
Board of Directors
Disclosure Date of Announcement on
Securities Investment Approved by the August 7,2009
Shareholders Meeting(If any)
2019 Annual Report
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
2019 Annual Report
VII.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company
Company Name Leading products and services Registered capital Total assets Net assets Operating Income Operating profit Net Profit
type
Operating Guangfo Expressway Co.,
Guangfo Ltd.(starts from Hengsha, Guangzhou,
Subsidiary RMB 200 million 608,138,986.47 551,120,287.05 475,502,565.03 334,196,250.90 250,762,288.30
Expressway ends in Xiebian, Foshan. Total length 15.7
kilometers
The operation and management of
Jingzhu Expressway Guangzhu Expressway and provision of
Guangzhu Section Subsidiary supporting services including fueling, RMB 580 million 2,558,550,808.94 1,157,559,905.51 1,218,734,018.60 715,153,192.22 513,065,829.93
Co., Ltd. salvage and supply of parts and
components
Investment in and construction of
Guanghui Expressway Co., Ltd. and
supporting facilities, the toll collection
Guangdong
and maintenance management of
Guanghui Sharing
Guanghui Expressway, The Guanghui RMB 2.352 million 4,228,022,472.12 3,494,911,911.72 1,943,745,753.48 1,333,700,987.33 1,002,651,683.59
Expressway Co., company
Expressway's supporting gas station,
Ltd.
salvation, vehicle maintenance, vehicle
transport, catering, warehousing
investment and development
Guangzhu Traffic
Investment Highway investment management and
Subsidiary RMB 3 million 2,563,460,714.81 641,567,853.91 1,218,734,018.60 715,103,887.59 282,136,901.83
Management Co., consultation; highway maintenance
Ltd.
2019 Annual Report
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Particulars about the Mutual holding companies
1.Guangfo Expressway Co., Ltd., a subsidiary of the company, the company owns 75% of Guangfo Expressway's equity. It builds and operates Guangzhou-Foshan
Expressway. Its management includes road maintenance, toll collection, signs, marking and other transportation facilities maintenance, vehicle rescue and other
business. The net profit of the current period decreased by 14.1911 million yuan, 5.36% decrease compared with the same period last year. The main reasons for the
decrease are: the diversion of surrounding roads and the implementation of new preferential policies of Yuetong card since July 2019 (from 2% discount to5%
discount)
2.Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd., a subsidiary of the company, the company owns 75% of Guangzhu Section's equity directly and indirectly.
It operates Guangzhou-Zhuhai Expressway and provides the service of refueling, rescuing and spare parts supplying with the expressway. The net profit of this period
decreased by 127.2247 million yuan, 19.87% decrease compared with the same period last year, mainly due to the diversion of surrounding roads; from August 2019,
Humen Bridge will be banned from trucks and more than 40 passenger cars for 24 hours, which will affect the diversion of trucks and buses.; the implementation of
new preferential policies of Yuetong card since July 2019 (from 2% discount to5% discount)
3.Guangdong Guanghui Expressway Co., Ltd. is a joint-stock company of the company. The company holds 30% of Guanghui Expressway's equity, invests in and
builds Guanghui Expressway and its supporting facilities; charges and maintenance management of Guanghui Expressway; invests and develops gas stations, rescues,
automobile maintenance, automobile transportation, catering and warehousing for Guanghui Expressway. Net profit for the period increased by RMB 36,361,600, or
3.47% increase compared with the same period last year, mainly due to the natural increase in traffic flow on road sections and the increase in toll income due to
the increase in traffic flow caused by the opening of the Phoenix Mountain Tunnel on adjacent road sections.
2019 Annual Report
VIII. Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prospect for future development of the Company
In order to better serve the New Coronavirus Pneumonia epidemic, promote the resumption of production
and production of enterprises, and ensure the sustainable and healthy development of the economy. With the
consent of the State Council, the Ministry of Transport issued the Notice of the Ministry of Transport on Toll Free
Highway Vehicle Tolls During the New Crown Epidemic Prevention and Control Period (hereinafter referred to as
the "Notice") on February 15, 2020. According to the requirements of the Notice, from 00: 00 on February 17,
2020 until the end of the epidemic prevention and control, all expressways controlled and shared by the company
will be free of vehicle tolls for all vehicles that pass through these sections according to law, and the specific
deadline will be notified separately. Suspension of vehicle tolls is expected to adversely affect the company's
short-term operating results. As of the disclosure date of this report, the time for resuming the collection of vehicle
tolls has not yet been determined, and the company has not been able to estimate the specific impact on the
company's operating performance in 2020, nor is it able to set an operating target for the whole year.
The company will actively respond and do its best to mitigate the adverse impact of the epidemic on the
company. On the basis of strict epidemic prevention and control and ensuring smooth traffic flow, the company
strictly controlled the cost and actively strived for reasonable policy support. In fact, the company has done the
following work well to make sufficient preparations for restarting the charging business and accelerating the
development after the epidemic prevention and control work is completed.
1. Stabilize and expand the main business of expressway. It continued to push forward the phase inspection
of Southern Section of Fokai Expressway Project, and strive to get the approval of the government as soon as
possible; Assisted in accelerating the reconstruction and expansion of Huiyan Expressway; Through various
channels such as property rights trading platforms and other intermediary organizations inside and outside the
province, it widely collected the information on expressway projects inside and outside the system, steadily
promoted investment and merger of expressway quality projects, integrated resources for participating in
expressway projects, optimized asset structure, and made efforts to increase the number of expressway projects
controlled.
2. Accelerate the development of stock resources along the expressway. To build innovative service areas . It
fully promoted the implementation of the pilot project of the innovative service area in Zhushan; Continued to
revitalize the plots of land in Chenshan, Xinjitian, Nanzhuang and Hengsha to obtain incremental benefits through
land transfer, development and construction, and investment promotion.
3.Explore and study the layout of intelligent transportation industry. In order to better grasp the opportunity
of intelligent transportation development, accelerate the research on the development planning of the company's
intelligent transportation industry, and expand the company's intelligent transportation business and market.
4. It strived to give full play to the platform advantages of listed companie. It paid close attention to the
development trend of the domestic capital market, actively research in the planning of the company's capital
operation plan, gave full play to the role of investment and financing platform.
5. It broadened financing channels and optimized financial management. It continued to maintain close ties
with banks, securities dealers and other financial institutions, strived for favorable financing conditions and low
financing costs, and ensured all aspects of the company's capital needs during the special period of epidemic
prevention and control.
2019 Annual Report
6. It accelerated the implementation of optimization plans for market-based incentives and assessment
mechanisms, focused on the decomposition of high-quality development assessment indicators, and formed a
quantitative assessment indicator system to ensure the smooth implementation of salary assessment optimization
plans.
X. List of the received researches, visits and interviews
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □Not applicable
Way of Types of
Reception time Basic index
reception visitors
1. The main content of research:1. the daily operation; 2. the company's
Onsite
January 9,2019 Organization financial data analysis;3. development strategy; 4. analysis on the industry.
investigation
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
Onsite
January 16,2019 Organization financial data analysis;3. development strategy; 4. analysis on the industry.
investigation
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
March 29,2019 By Phone Organization financial data analysis;3. development strategy; 4. analysis on the industry.
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
May 8,2019 By Phone Organization financial data analysis;3. development strategy; 4. analysis on the industry.
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
Onsite
July 9,2019 Organization financial data analysis;3. development strategy; 4. analysis on the industry.
investigation
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
August 30,2019 By Phone Organization financial data analysis;3. development strategy; 4. analysis on the industry.
2.Primary data investigation: Public information company regularly reports
1. The main content of research:1. the daily operation; 2. the company's
November
By Phone Organization financial data analysis;3. development strategy; 4. analysis on the industry.
5,2019
2.Primary data investigation: Public information company regularly reports
Reception times 7
Reception agency amount 66
Reception personal number 0
Others 0
Whether to disclose, reveal or disclose non-public
No
material information
2019 Annual Report
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
□Applicable√ Not applicable
The profit distribution preplan or proposal and the Plan(preplan) or proposal of conversion of the capital reserve
into share capital in the past three years(with the reporting period inclusive:
1.The Company's profit distribution plan for 2017 is as follows:
(1).10% of the net profit of the company, i.e. 177,864,580.14 yuan, is to be allocated for statutory common
reserve fund.
(2).The profit for 2017 is to be distributed as follows:1,057,947,899.76 yuan. is to be allocated as the fund for
dividend distribution for 2017. with the total shares at the end of 2017, i.e., 2,090,806,126 shares, as the base, cash
dividend of 5.06 yuan (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2017 annual shareholders’ general meeting
makes resolution on dividend distribution.
2. The Company's profit distribution plan for 2018 is as follows:
(1) 10% of the net profit of the company, i.e. 230,581,431.32 yuan, is to be allocated for statutory common
reserve fund.
(2) The profit for 2018 is to be distributed as follows:1,175,033,042.81 yuan. is to be allocated as the fund for
dividend distribution for 2018. with the total shares at the end of 2018, i.e., 2,090,806,126 shares, as the base, cash
dividend of 5.62 yuan (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2018 annual shareholders’ general meeting
makes resolution on dividend distribution.
3. The Company's profit distribution preplan for 2019 is as follows:
(1) 10% of the net profit of the company, i.e. 135,022,507.55 yuan, is to be allocated for statutory common
reserve fund.
(2) The profit for 2019 is to be distributed as follows: 882,320,185.17 yuan. is to be allocated as the fund for
dividend distribution for 2018. with the total shares at the end of 2019, i.e., 2,090,806,126 shares, as the base, cash
dividend of 4.22 yuan (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2019 annual shareholders’ general meeting makes
2019 Annual Report
resolution on dividend distribution.
Dividend distribution of the latest three years
In RMB
Ratio of the
Ratio of the
total cash
Ratio of the cash bonus
bonus (other
cash bonus in by other
ways
Net profit net profit Proportio ways in net
included) in
attributable to attributable n for cash profit
net profit
Year common stock to common bonus by attributable Total cash
Amount for cash attributable
for shareholders of stock other to common bonus(other
bonus(tax to common
bonus listed company in shareholders ways(i.e. stock ways
included) stock
shares consolidation of listed share shareholders included)
shareholders
statement for company buy-backs of listed
of listed
bonus year contained in ) company
company
consolidation contained in
contained in
statement consolidation
consolidation
statement
statement
2019 882,320,185.17 1,258,628,101.71 70.10% 0.00 0.00% 882,320,185.17 70.10%
2018 1,175,033,042.81 1,677,028,179.18 70.07% 0.00 0.00% 1,175,033,042.81 70.07%
2017 1,057,947,899.76 1,509,922,398.70 70.07% 0.00 0.00% 1,057,947,899.76 70.07%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□Applicable √ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares (Yuan)(Tax-included) 4.22
Distribute additional (shares)for 10 shares 0
A total number of shares as the distribution basis(shares) 2,090,806,126
Cash dividend amount (yuan, including tax 882,320,185.17
Other means (such as repurchase of shares) cash dividend amount (yuan) 0.00
Total cash dividend (yuan, including tax) 882,320,185.17
Distributable profit (yuan) 3,710,584,722.68
Proportion of cash dividend in the distributable profit 100%
Cash dividend distribution policy
The Company is in a fast growth stage, there fore, the cash dividend will reach 80% of the profit distribution at least. Cash
dividend distribution policy.
2019 Annual Report
Details of profit distribution or reserve capitalization Preplan
1.10% of the net profit of the company, i.e. 135,022,507.55 yuan, is to be allocated for statutory common reserve fund.
2.The profit for 2019 is to be distributed as follows: 882,320,185.17 yuan. is to be allocated as the fund for dividend distribution
for 2018. with the total shares at the end of 2019, i.e., 2,090,806,126 shares, as the base, cash dividend of 4.22 yuan (including
tax) is to be distributed for every 10 shares .The remaining undistributed profits are to be carried forward to the next year. The
foreign exchange translation of the cash dividends for shareholders holding B share and overseas corporate shares will be
determined according to HKD:RMB bank’s Middle rate quoted by People’s Bank of China on the first working day after 2019
annual shareholders’ general meeting makes resolution on dividend distribution.
2019 Annual Report
III. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company,
shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.
√Applicable □Not applicable
Time of
making
Contents Period of
Commitment commitm Fulfillment
Commitment Type commitment
maker ent
Commitment on share reform
Commitment in the acquisition
report or the report on equity
changes
Guangfa
Securities
Guangdong Expressway A shares acquired by the Company through subscription in this major asset reorganization cannot be transferred or
Co., Ltd.,
listed for transaction within thirty-six months from the date of the completion of the shares issuance in this major asset reorganization. Upon
Tibet
the expiry of the lock-up period, the transfer and transaction of these shares will be made in accordance with the effective laws and
Yingyue
regulations, and relevant provisions of CSRS and Shenzhen Stock Exchange (SSE). The date of the
Investment Share
Commitment made upon the June expiration of the
Management limited Completed
assets replacement 18,2015 share lock.
Co., Ltd., commitment
Yadong
Fuxing
Yalian
Investment
Co., Ltd.
2019 Annual Report
Time of
making
Contents Period of
Commitment commitm Fulfillment
Commitment Type commitment
maker ent
Guangdong
Expressway
Co., Ltd., Guangdong Expressway A shares acquired by the Company through subscription in this major asset reorganization cannot be transferred or
Guangdong listed for transaction within thirty-six months from the date of the completion of the shares issuance in this major asset reorganization. Upon
The date of the
Highway Share the expiry of the lock-up period, the transfer and transaction of these shares will be made in accordance with the effective laws and
June expiration of the
Construction limited regulations, and relevant provisions of CSRS and Shenzhen Stock Exchange (SSE). Upon the completion of this major asset reorganization, Completed
26,2015 share lock.
Co., Ltd., commitment if the closing price of the A-share of Guangdong Expressway is below the issue price for 20 consecutive trading days within six months, or at
Guangdong the end of six months after the completion of the transaction the closing price is below the issue price, the lock-up period of the A-share of
Communicati Guangdong Expressway acquired by the Company through this major asset reorganization will be automatically extended for six months.
on Group
Co., Ltd.
2019 Annual Report
Time of
making
Contents Period of
Commitment commitm Fulfillment
Commitment Type commitment
maker ent
The commitment to avoid horizontal competition: 1. the Company and the companies that are under direct or indirect control of the
Company, except Guangdong Expressway and its subsidiaries, will not use the controlling shareholders to damage the legitimate interests of
the business activities of Guangdong Expressway and its medium and small shareholders and its subsidiaries. 2. The Company and the
companies that are under direct or indirect control of the Company, except Guangdong Expressway and its subsidiaries, will not use the
information acquired from Guangdong Expressway and its subsidiaries to engage in core business which competes with Guangdong
Expressway and its subsidiaries and will not conduct any activity that damages or may damage the legitimate interests of Guangdong
Expressway and its medium and small shareholders and its subsidiaries. 3. As for the transfer of toll roads, bridges, tunnels and related
Guangdong ancillary facilities or equity invested, constructed or managed by the Company or companies, that are under direct or indirect control of the This commitment is
Expressway Company, except Guangdong Expressway and its subsidiaries to the Company or any company that is under direct or indirect control of the valid from the date of
Commitmen
Co., Ltd., company, unless it is a transferee expressly designated by the relevant government departments, to the extent permitted by relevant laws and signing this letter of
ts on
Guangdong regulations, Guangdong Expressway has the right of preemption under the same conditions. 4. In the future, if the Company and the commitment to the
horizontal Fulfill the
Highway companies that are under direct or indirect control of the Company, except Guangdong Expressway and its subsidiaries, invest and construct date on which the
competition, June commitmen
Construction a parallel highway or a highway in the same direction on either side of the Highway within 20 km, to the extent permitted by relevant laws shares of Company is
related 26,2015 t normally
Co., Ltd., and regulations, except in the project whose investors have been expressly specified by the relevant government departments, Guangdong no longer controlled
transaction
Guangdong Expressway has the priority right to invest ahead of the Company and the companies that are under direct or indirect control of the Company, by the controlling
and capital
Communicati except Guangdong Expressway and its subsidiaries,. This commitment, when signed, constitutes the irrevocable legal obligations of the shareholder of the
occupation
on Group Company. If the circumstances arise that cause damage to Guangdong Expressway because of the Company’s breach of the commitment, the Guangdong
Co., Ltd. Company will bear the corresponding liability according to laws. The commitment to reduce and regulate the connected transactions: 1. Expressway.
After the completion of this major asset reorganization, the Company and the companies that are under direct or indirect control of the
Company, except Guangdong Expressway and its subsidiaries, and other related parties will try to avoid the connected transaction with
Guangdong Expressway and its subsidiaries; the necessary and unavoidable connected transactions shall be conducted in accordance with the
principles of fairness and compensation of equal value, the transaction prices shall be determined according to the reasonable market price,
the transaction approval procedures and the disclosure obligations should be conducted in accordance with relevant laws, regulations and
regulatory documents, to effectively protect the interests of medium and small hareholders of Guangdong Expressway . 2. The Company
guarantees to be in strict accordance with relevant laws and regulations, the regulations and regulatory documents promulgated by CSRC, the
2019 Annual Report
Time of
making
Contents Period of
Commitment commitm Fulfillment
Commitment Type commitment
maker ent
(1) The commitment to the authenticity, accuracy and completeness of the information provided: 1. The Company guarantees to provide the
information related to the major asset reorganization for Guangdong Expressway and ensures its authenticity, accuracy and completeness; if
there is false, misleading statement or major omission in the information provided, which causes losses to Guangdong Expressway or the
investors, the Company will assume the compensation liabilities in accordance with laws. If it is suspected that there is false, misleading
statement or major omission in the information disclosed or provided for the major asset reorganization, and it is investigated by the
judiciary authorities or by CSRC, before the clear conclusion of the case is reached, the Company will suspend the transfer of shares of
Guangdong Expressway held by the Company, and within two business days upon receipt of the notice of filing a case and inspection, the (1) a promise without
written application for suspending the transfer and the stock account should be submitted to the Board of Directors of Guangdong a commitment period.
Expressway , and the Board of Directors of Guangdong Expressway , shall, on behalf of the Company apply for the lockout towards (2) the date of the
Shenzhen Securities Exchange (SSE) and Registration and Clearing Company; if the application for the lockout is not submitted in two validity of the term
business days, after verification the Board of Directors authorized by the Company will directly submits the Company’s identity and commitment from the
Guangdong
account information to the Registration and Clearing Company and apply for the lockout; if the Board of Directors fails to do so, the date of this letter of Fulfill the
Communicati Other June
Securities Exchange and the Registration and Clearing Company will be authorized to directly lock the related shares. If it is found that the commitment to the commitmen
on Group commitment 18,2015
Company has illegal circumstances, the company promises that the lockout shares should be automatically used for the compensation for date of the company t normally
Co., Ltd.
the relevant investors. (2) The commitment to maintain the independence of the listed company. The Company and the companies, that are no longer is the date
under direct or indirect control of the Company, except Guangdong Expressway and its holding subsidiaries, have increased their shares of of the controlling
Guangdong Expressway after the completion of the major asset reorganization; however they will not damage the independence of shareholder of
Guangdong Expressway . They will continue to be separated from Guangdong Expressway in assets, personnel, finance, organization and Guangdong.
business and strictly abide by the relevant provisions on the independence of listed companies of CSRC. They don’t illegally use
Guangdong Expressway to provide guarantee, or occupy its capital so as to keep and maintain its independence and safeguard the
legitimate rights and interests of other shareholders of Guangdong Expressway . All losses will be borne by the Company if it breaks the
above commitments and causes losses to Guangdong Expressway .
2019 Annual Report
Time of
making
Contents Period of
Commitment commitm Fulfillment
Commitment Type commitment
maker ent
(1) The commitment to the authenticity, accuracy and completeness of the information provided: The Company guarantees that there is no false,
misleading statement or major omission in the information disclosure and application documents for the major asset reorganization. If it is
suspected that there is false, misleading statement or major omission in the information disclosed or provided for the major asset reorganization,
(1) a promise without
and it is investigated by the judiciary authorities or by CSRC, before the clear conclusion of the case is reached, the Company will suspend the
a commitment period.
transfer of shares of Guangdong Expressway held by the Company, and within two business days upon receipt of the notice of filing a case and
(2) the date of the
inspection, the written application for suspending the transfer and the stock account should be submitted to the Board of Directors of Guangdong
validity of the term
Expressway, and the Board of Directors of Guangdong Expressway, shall, on behalf of the Company, apply for the lockout towards Shenzhen
commitment from the
Securities Exchange (SSE) and Registration and Clearing Company; if the application for the lockout is not submitted within two business days,
date of this letter of
after verification the Board of Directors authorized by the Company will directly submits the Company’s identity and account information to the
Guangdong commitment to the
Registration and Clearing Company and apply for the lockout; if the Board of Directors fails to do so, the Securities Exchange and the
Highway date of the company
Registration and Clearing Company will be authorized to directly lock the related shares. If it is found that the Company has illegal circumstances,
Construction no longer is the date Fulfill the
the Company promises that the lockout shares should be automatically used for the compensation for the relevant investors. (2) The commitment
Co., Other June of the controlling commitmen
to maintain the independence of the listed company. The Company and the companies, that are under direct or indirect control of the Company,
Ltd.,Guangdo commitment 26,2015 shareholder of t normally
except Guangdong Expressway and its subsidiaries, have increased their shares of Guangdong Expressway after the completion of the major asset
ng Guangdong.
reorganization; however they will not damage the independence of Guangdong Expressway. They will continue to be separated from Guangdong
Expressway (3) the date of the
Expressway in assets, personnel, finance, organization and business and strictly abide by the relevant provisions on the independence of listed
Co., Ltd. validity of the term
companies of CSRC. They will not illegally use Guangdong Expressway to provide guarantee, or occupy its capital, and they will keep and
commitment to the
maintain the its independence and safeguard the legitimate rights and interests of other shareholders of it. (3)The company confirmed and
completion of the
guaranteed: 1, the company set up and effectively exist in accordance with the law of the enterprise, the company has an independent legal
completion of
personality, independent of the ability to assume legal responsibility. 2, as the commitment letter issued by the Japanese, the company does not
the completion of the
exist in the listed company acquisition management approach "the provisions of Article 6 of the acquisition of a listed company may not be under
major asset
any of the following circumstances: (1) bears a relatively large amount of debt, due and outstanding, and in persistent state; (2) in recent 3 years,
restructuring.
have major violations or suspected of major violations; (3) in recent 3 years, have severe stock market acts of dishonesty; (4) the laws,
administrative regulations and recognized by the CSRC shall not purchase of Listed Companies in other circumstances. This commitment is
issued to the completion of the reorganization before, if the company does not conform to the fact that these commitments, the company that will
2019 Annual Report
Time of
making
Contents Period of
Commitment commitm Fulfillment
Commitment Type commitment
maker ent
It continued to push
forward the progress
of accreditation, and
completed the
registration
procedures of
relevant land and real
In order to promote the smooth progress of the issue of shares, the cash purchase of assets and the raising of matching funds (hereinafter
estate ownership
referred to as "the major asset restructuring") approved by Guangdong Expressway Development Co., Ltd. at its second extraordinary
within three years
shareholders' meeting in 2015, with regard to all the land and real estate (hereinafter referred to as "relevant land and real estate") owned by
after the relevant
Guangdong Fokai Expressway Co., Ltd. (hereinafter referred to as "Fokai Company") and Jingzhu Expressway Guangzhu Section Co., Ltd.
policies were clear Fulfill the
Guangdong (hereinafter referred to as "Guangzhu East Company") without ownership certificates (hereinafter referred to as "relevant land and real
and the relevant land commitmen
Communicati Other estate") disclosed in the report of Guangdong Expressway Development Co., Ltd. on issuing shares and paying cash to purchase assets and April
and real estate met t normally
on Group commitment raising matching funds and related transactions, the company undertook to urge Fokai Company and Guangzhu East Company to go through 27,2019
the conditions for
Co., Ltd. the ownership registration formalities according to the following plan under the condition that it is conducive to safeguarding the rights and
handling the
interests of listed companies; Continued to push forward the progress of accreditation, and completed the registration procedures of relevant
registration
land and real estate ownership within three years after the relevant policies were clear and the relevant land and real estate met the conditions
procedures of
for handling the registration procedures of ownership, in accordance with the relevant laws and regulations and the requirements of the
ownership, in
competent government departments.
accordance with the
relevant laws and
regulations and the
requirements of the
competent overnment
departments.
2019 Annual Report
Time of
making
Contents Period of
Commitment commitm Fulfillment
Commitment Type commitment
maker ent
Commitments made upon first
issuance or refinance
Equity incentive commitment
Other commitments made to
minority shareholders
Completed on time(Y/N) Yes
2019 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still
in the forecast period, the company has assets or projects meet the original profit forecast made and the
reasons explained
□Applicable √Not applicable
IV. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
Nil
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
VI. Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√Applicable □ Not applicable
The Ministry of Finance issued the "New Financial Instrument Guidelines" in 2017, requiring domestic listed
enterprises to implement the new financial instrument guidelines from January 1, 2019. Through the resolution of
the 25th (provisional) meeting of the eighth board of directors of the Company on April 26, 2019, the Group
began to implement the aforementioned new financial instrument guidelines on January 1, 2019. The Group
retroactively applied the new financial instrument standard. For the cumulative impact of the first implementation
of the standard, the Group adjusted the amount of retained earnings or other comprehensive income at the
beginning of 2019 and other related items in the financial statements. The 2018 financial statements were not
restated.
In April and September 2019, the Ministry of Finance respectively issued the Notice on Revising and Issuing
the Format of General Enterprise Financial Statements for 2019 (CK [2019] No.6) and the Notice on Revising and
Issuing the Format of Consolidated Financial Statements (2019 Edition) (CK [2019] No.16), revising the format
of general enterprise financial statements and consolidated financial statements. The Group has prepared financial
statements in accordance with the format of general enterprise financial statements and consolidated financial
statements according to its requirements.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
Nil
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
□Applicable √ Not applicable
2019 Annual Report
Nil
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Ruihua Certified Public Accountants (Special General
Name of the domestic CPAs
Partnership)
Remuneration for domestic accounting firm (Ten thousands yuan) 120
Successive years of the domestic CPAs offering auditing services 1
Name of domestic CPA Qin Yanlin, Huang Zhiyan
Continuous fixed number of year for the auditing service
1
provided by CPA in domestic CPA Firms
Has the CPAs been changed in the current period
√ Yes □ No
Whether to change the employment of accounting firm during the audit period
□ Yes √No
Whether to perform the examination and approval procedures for change of accounting firm
√ Yes □ No
A detailed explanation of the change of employment and accounting firm
In order to better meet the needs of the company's future business development, after comprehensive
evaluation, the company plans to employ Ruihua Certified Public Accountants (Special General Partnership) as
the company's 2019 audit institution to be responsible for the audit of the company's financial report.
The 27th meeting of the 8th Board of Directors held on June 6, 2019 deliberated and passed the Proposal on
Hiring Audit Institution for Financial Report in 2019, agreeing that the Company would hire Ruihua Certified
Public Accountants (Special General Partnership) as the audit institution for the Company's financial report in
2019. It is estimated that the audit fee for the annual financial report will be controlled within 1.2 million yuan.
On June 25, 2019, the company's first extraordinary shareholders' meeting in 2019 deliberated and passed the
Proposal on Hiring Audit Institution for Financial Report in 2019.
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing
√ Applicable □ Not applicable
On June 6, 2019, the 27th meeting of the 8th board of directors reviewed and passed the proposal on hiring
the internal control audit institution in 2019, and agreed to hire Ruihua Certified Public Accountants (special
general partnership) as the audit institution of the company's internal control in 2019. It is estimated that the audit
cost of the annual financial report shall be controlled within 1.2 million yuan. On June 25, 2019, the company's
first extraordinary general meeting of shareholders deliberated and passed the proposal on hiring an internal
control audit institution in 2019.
X. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
2019 Annual Report
XI. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
Nil
XII. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
Nil
XIII. Situation of Punishment and Rectification
□Applicable √ Not applicable
Nil
XIV. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XV. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
Nil
XVI. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
Nil
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
Nil
3. Related-party transitions with joint investments
□Applicable √ Not applicable
Nil
4. Credits and liabilities with related parties
□Applicable √ Not applicable
Nil
2019 Annual Report
5. Other significant related-party transactions
√Applicable □ Not applicable
1.The 23th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal on Transferring the Intellectual Property Assets Group of the “Blue Channel” by Guangdong Expressway
Technology Investment Co., Ltd., a wholly-owned subsidiary. It is agreed that Guangdong Expressway
Technology Investment Co., Ltd., a wholly-owned subsidiary of the Company, will transfer the “Blue Channel”
related intellectual property asset group to Guangdong Union Electronic Service Co., Ltd. by way of agreement
transfer, with the assessed value of RMB 19,881,200.00 as the transfer price.
2.The 24th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal Concerning the Company Daily Associated Transactions Predicted of 2019 . Agree on the predicted daily
associated transactions for the company headquarters, wholly-owned and holding subsidiaries of 2019, whose
amount in total is RMB 49.4265 million .
3. The 28th (provisional) meeting of the Eighth Board of Directors deliberated and passed the Proposal on
Renewal of Entrusted Loan from Guangdong Guanghui Expressway Co., Ltd. It agreed that the company should
renew the entrusted loan from Guangdong Guanghui Expressway Co., Ltd., with a total loan amount of 180
million yuan, which would be withdrawn according to the actual needs of the company for a period of 1 year
with an interest rate reduced by 10% according to the benchmark lending rate of the People's Bank of China for
the same period, and which would be used to supplement the working capital. After the expiration of the entrusted
loan, it could be renewed according to the original conditions.
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
Announcement of related party transaction January 23,2019 www.cninfo.com.cn
Estimates announcement of the Daily
March 29,2019 www.cninfo.com.cn
Related Party Transaction of 2019
Announcement of related party transaction August 29.2019 www.cninfo.com.cn
XVII. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
Nil
(2) Contract
□ Applicable √ Not applicable
Nil
(3) Lease
□Applicable √ Not applicable
Nil
2019 Annual Report
2.Guarantees
√ Applicable □Not applicable
（1）Guarantees
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
happening Actual for
Name of the date/No. of Amount of Guarantee Guarantee implemen
(Date of mount of associated
Company the Guarantee type term tation or
signing guarantee parties (Yes
guaranteed not
agreement) or no)
amount
Guangdong
2012.9.25-
Communication May 11,2012 172,500 May 31,2013 172,500 Pledge No Yes
2020.3.25
Group Co.,Ltd
Total balance of actual
Total of external guarantee
172,500 external guarantee at 172,500
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guaran
Comple tee for
Name of the Relevant disclosure Amount Date of Actual Guara te associa
Guarantee
Company date/No. of the of happening(Date of mount of ntee implem ted
term
guaranteed guaranteed amount guarantee signing agreement) guarantee type entation parties
or not (Yes or
no)
Guarantee of the subsidiaries for the controlling subsidiaries
Guaran
Actual Comple tee for
Name of the Relevant disclosure Amount Date of mount te associat
Guaranteet Guarantee
Company date/No. of the of happening(Date of of implem ed
ype term
guaranteed guaranteed amount guarantee signingagreement) guaran entatio parties
tee n or not (Yes or
no)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual guarantee at
Total of guarantee at Period-end
172,500 Period-end 172,500
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net assets of the
17.56%
Company(that is A4+B4+C4)
Including
2019 Annual Report
Amount of guarantee for shareholders, actual controller and its associated
172,500
parties（D）
Total guarantee Amount of the abovementioned guarantees（D+E+F） 172,500
Note
（2）Illegal external guarantee
□ Applicable √ Not applicable
Nil
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
Nil
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
Nil
4. Other significant contract
□ Applicable √ Not applicable
Nil
XVIII. Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
In 2019, the expressway toll-free policy for small-sized passenger cars with less than 7 seats for main
holidays, intermittent free-charge release and green-channel preferential policy were still executed, Guangfo
company, Fokai company and Guangzhudong company have completed each safety and smooth traffic task
successfully based on the thorough understanding, complete personnel dispatching, duties performance and
measures implementation.
1. Several measures are implemented synchronously to provide drivers and the public with the smooth,
convenient, comfortable and safe driving environment and build the harmonious relationship between vehicles
and roads jointly. The company is located in Guangfo and Fokai sections among Pearl River Delta developed zone,
in which, the traffic flow is large and the charging squares and lanes resources are limited due to the limitation of
the previous infrastructure construction scale. Then, with the influence of the north-ring expressway as well as
Gonghe-Siqian bottleneck-type section, the congestion and slow traffic become normal. The traffic flow peak in
holidays lasts long with strong directionality and plenty of emergencies and therefore the vehicle free toll in
2019 Annual Report
holidays catches high social attention. Each toll-station lanes are reconstructed with the whole-weighing-platform
weighing equipment, which results in the larger pressure of the smooth traffic guarantee by stations. In light of
such condition, the company motivated through organization the section companies to perfect and detail the
smooth traffic guarantee working schemes continuously, summarize previous experience, conduct emergency
exercises and make the production line exercise various smooth-traffic measures skillfully on one hand; on the
other hand strengthen the service consciousness and conduct the business and civilized service trainings. Through
efforts of all parties, the section for the company is free from artificial vehicle congestion and mass incidents for
the whole year with the complaints limited to zero, through which, the safety and reliability of the expressway
traffic environment were guaranteed.
2. Respond positively to the governmental policies, provide preferential, deduction and exemption policies
per laws and reduce the cost of enterprise transportation and the masses travel.
3. It earnestly implemented the government's tasks and completed the transformation and switching of ETC
toll collection system at provincial toll stations on time.
4. The South Section Reconstruction and Extension Project of Fokai Expressway opened to traffic. On
November 7, 2019, the reconstruction and expansion project of the southern section of Fokai Expressway opened
to traffic. The project officially started construction on May 7, 2017. Under the condition of opening to traffic
while construction is in progress, the reconstruction and expansion management office of the southern section of
Fokai Expressway overcame all difficulties, and completed the project about one and a half years ahead of the
approved construction period (four years), with remarkable results, setting a both fast and good benchmark for the
expansion project in the province. The opening of the project has realized the two-way and 8-lane operation of the
entire Fokai Expressway, reduced the transportation time cost and economic cost, eased the traffic pressure to the
west of Guangdong, further promoted the function of Fokai Expressway as a major transportation artery between
the west of Guangdong and the core area of the Pearl River Delta, promoted the economic development of the
areas along the line, provided strong support for the construction of the Great Bay Area of Guangdong, Hong
Kong and Macao, and better met the people's demand for a better life brought by transportation.
2.Overview of the targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in the period and bas no follow-up plan
either.
3.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
No
XIX. Explanation on other significant events
□ Applicable √Not applicable
Nil
2019 Annual Report
XX. Significant event of subsidiary of the Company
√ Applicable □Not applicable
1.The 23th (provisional) meeting of the Eighth board of directors of the Company examined and adopted the
Proposal on Transferring the Intellectual Property Assets Group of the “Blue Channel” by Guangdong Expressway
Technology Investment Co., Ltd., a wholly-owned subsidiary. It is agreed that Guangdong Expressway
Technology Investment Co., Ltd., a wholly-owned subsidiary of the Company, will transfer the “Blue Channel”
related intellectual property asset group to Guangdong Union Electronic Service Co., Ltd. by way of agreement
transfer, with the assessed value of RMB 19,881,200.00 as the transfer price.
The website to disclose the interim announcements
Description of the website for
Date of disclosing
Description of provisional announcement disclosing provisional
provisional announcement
announcements
Announcement of Resolutions of the 23th (Provisional) Meeting of January 23,2019 www.cninfo.com.cn
the Eighth Board of Directors
Announcement of related party transaction January 23,2019 www.cninfo.com.cn
2019 Annual Report
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Capitaliz
Share ation of
Proportio Bonus
Amount allotme common Other Subtotal Quantity Proportion
n shares
nt reserve
fund
1.Shares with
conditional 1,273,271,627 60.90% -833,886,969 -833,886,969 439,384,658 21.02%
subscription
1.State-owned shares 410,002,853 19.61% 29,912 29,912 410,032,765 19.61%
2.State-owned legal
652,971,967 31.23% -631,259,229 -631,259,229 21,712,738 1.04%
person shares
3.Other domestic
210,293,994 10.06% -202,654,839 -202,654,839 7,639,155 0.37%
shares
Including ：
Domestic Legal 209,498,275 10.02% -202,469,920 -202,469,920 7,028,355 0.34%
person shares
Domestic natural
795,719 0.04% -184,919 -184,919 610,800 0.03%
person shares
4.Foreign shares 2,813 0.00% -2,813 -2,813 0 0.00%
Including：Foreign
0 0.00% 0 0 0 0.00%
legal person shares
Foreign natural
2,813 0.00% -2,813 -2,813 0 0.00%
person shares
II.Shares with
unconditional 817,534,499 39.10% 833,886,969 833,886,969 1,651,421,468 78.98%
subscription
1.Common shares in
468,885,824 22.43% 833,886,969 833,886,969 1,302,772,793 62.31%
RMB
2.Foreign shares in
348,648,675 16.67% 0 0 348,648,675 16.68%
domestic market
3.Foreign shares in
0 0.00% 0 0 0 0.00%
foreign market
2019 Annual Report
4.Other 0 0.00% 0 0 0 0.00%
III. Total of capital
2,090,806,126 100.00% 0 0 2,090,806,126 100.00%
shares
Reasons for share changed
√ Applicable □Not applicable
1.During the report period, 65 shareholders reimbursed 29,912 shares of Guangdong Provincial
Communication Group Company Limited, which were converted from 29,534 shares of "shareholding of
domestic natural person" and 378 shares of "shareholding of overseas natural person" to "national shareholding".
2.During the reporting period, 631,259,229 shares were "held by state-owned legal persons", 202,429,149
shares were "held by domestic legal persons", 190,381 shares were "held by domestic natural persons", and 2,435
shares were "held by overseas natural persons" and changed to "unlimited conditional shares".
3. During the report period,5,775 shares of limited conditional shares held by Li Mei, the outgoing
supervisor, were converted into limited conditional shares.
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of 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
2019 Annual Report
In shares
Number of Number of
Initial Restricted Date of
Shareholder Unrestricted Increased Reason for
Restricted Shares in the Restriction
Name Shares This Restricted Shares Restricted Shares
Shares End of the Term Removal
Term This Term
The shares for
restricted sales by
Guangdong share reform has
Communication 410,002,853 29,912 410,032,765 not yet be subject Unknown
Group Co., Ltd. to the procedures
for lifting the
restriction.
Zhang Xiuling Release of
April
and other 65 222,728 192,816 0 restrictions on
26,2019
shareholders sales
Total 410,225,581 29,912 192,816 410,032,765 -- --
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √ Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
2019 Annual Report
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total number of 53,746 Total shareholders at the 54,195 The total number of pre 0 Total preference shareholders 0
common end of the month from the ferred shareholders voti with voting rights recovered at
shareholders at the end date of disclosing the ng rights restored at per end of last month before annual
of the reporting period annual report iod-end (if any)(Note 8) report disclosed(if any)(Note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Shareholders Nature of Proporti Number of Changes Amount of Amount of Number of share
shareholder on of shares held in restricted un-restricted pledged/frozen
shares at period reporting shares held shares held State of Amount
held（%） -end period share
Guangdong Communication State-owned 24.56% 513,412,507 29,912 410,032,765 103,379,742
Group Co.,Ltd legal person
Guangdong Highway State-owned 22.30% 466,325,020 466,325,020
Construction Co., Ltd, legal person
Yadong Fuxing Yalian Investment Domestic 9.68% 202,429,149 202,429,149
Co., Ltd. non
State-owned
Legal person
Tibet Yingyue Investment State-owned 4.84% 101,214,574 101,214,574
Management Co., Ltd. legal person
Guangdong Expressway Co., Ltd. State-owned 2.53% 52,937,491 19,582,228 33,355,263
legal person
China Life Insurance Co., Ltd.－ Other 1.66% 34,775,553 34,775,553
Dividend －Personal dividend
-005L-FH002 Shen
China Life Insurance Co., Ltd.－ Other 1.50% 31,312,620 31,312,620
Traditional－Common insurance
products-005L-CT001Shen
Guangfa Securities Co., Ltd. State-owned 1.45% 30,364,372 30,364,372
legal person
Orient Securities Co., Ltd. State-owned 1.05% 21,915,393 21,915,393
legal person
Feng Wuchu Domestic 0.79% 16,464,447 16,464,447
natural
person shares
Strategic investor or general legal person None
becoming top-10 ordinary shareholder due to
rights issue (if any)
Related or acting-in-concert parties among Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Highway
shareholders above Construction Co., Ltd. and Guangdong Expressway Co., Ltd., It 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.
2019 Annual Report
Shareholding of top 10 shareholders of unrestricted shares
Name of the shareholder Quantity of unrestricted shares held Share type
at the end of the reporting period Share type Quantity
Guangdong Highway Construction Co., Ltd, 466,325,020 RMB Common shares
Yadong Fuxing Yalian Investment Co., Ltd. 202,429,149 RMB Common shares
Guangdong Communication Group Co.,Ltd 103,379,742 RMB Common shares
Tibet Yingyue Investment Management Co., Ltd. 101,214,574 RMB Common shares
China Life Insurance Co., Ltd.－Dividend － 34,775,553 RMB Common shares
Personal dividend -005L-FH002 Shen
Guangdong Expressway Co., Ltd. 33,355,263 RMB Common shares
China Life Insurance Co., Ltd.－Traditional－ 31,312,620 RMB Common shares
Common insurance products-005L-CT001Shen
Guangfa Securities Co., Ltd. 30,364,372 RMB Common shares
Orient Securities Co., Ltd. 21,915,393 RMB Common shares
Feng Wuchu 16,464,447 RMB Common shares 14,363,984
Foreign shares placed in 2,100,463
domestic exchange
Explanation on associated relationship or consistent Guangdong Communication Group Co., Ltd. is the parent company of Guangdong
action among the top 10 shareholders of Highway Construction Co., Ltd. and Guangdong Expressway Co., Ltd. ,It is unknown
non-restricted negotiable shares and that between whether there is relationship between other shareholders and whether they are persons
the top 10 shareholders of non-restricted negotiable taking concerted action specified in the Regulations on Disclosure of Information about
shares and top 10 shareholders Change in Shareholding of Shareholders of Listed Companies.
Top 10 ordinary shareholders conducting securities Nil
margin trading (if any) (see note 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2019 Annual Report
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Name of the Legal
Date of
Controlling representative/ Organization code Principal business activities
incorporation
shareholder Leader
Equity management, organization of asset
reorganization and optimized allocation, raising
funds by means including mortgage, transfer of
property rights and joint stock system
transformation, project investment, operation and
Guangdong
management, traffic infrastructure construction,
Communication Deng Xiaohua June 23,2000 91440000723838552J
highway and railway project operation and
Group Co., Ltd.
relevant industries, technological development,
application, consultation and services, highway
and railway passenger and cargo transport, ship
industry, relevant overseas businesses; Value
added telecommunication services.
Equity in other
domestic and
foreign listed
companies held by
the controlling
Guangdong Communication Group Co., Ltd. holds 74.12% equity of Guangdong Nanyue Logistics Co., Ltd., a
shareholder by
company listing H shares.
means of control
and mutual
shareholding in
the reporting
period
Type of Controlling Shareholders: Legal person
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
2019 Annual Report
Legal Date of
Name of the actual controller representative incorpor Organization code Principal business activities
/Leader ation
As an ad hoc body directly under the
Guangdong Provincial People's
State-owned Assets
Government, commissioned by the
supervision and
June provincial government to fulfill the
administration Commission Li Cheng 114400007583361658
26,2004 State-owned asset investor, regulatory
of Guangdong Provincial
enterprises to implement the rights,
People’s Government
obligations and responsibilities, pipe
asset control and people management.
Equity of other
domestic/foreign listed
As an ad hoc body directly under the Guangdong Provincial People's Government,
company with share
commissioned by the provincial government to fulfill the State-owned asset investor, regulatory
controlling and share
enterprises to implement the rights, obligations and responsibilities, pipe asset control and
participation by
people management.
controlling shareholder in
reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
2019 Annual Report
4.Particulars about other legal person shareholders with over 10% shareheld
√ Applicable □Not applicable
Legal
Legal person person/pers Date of Main operation business or management
Register capital
shareholder on in charge foundation activities
of the unit
Highway, bridge, tunnel bridge, traffic
infrastructure construction, investment and
management, technical consulting, leasing of
road construction machinery; sales of
Guangdong Highway Wang April 8,827.36846696 construction materials, construction machinery
Construction Co., Ltd. Kangchen 16,1987 million yuan equipment; vehicle rescue services
(operated by the branch).
(for projects subject to approval according to
law, business activities can only be carried out
with the approval of relevant departments.)
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
2019 Annual Report
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
2019 Annual Report
VIII Information about convertible corporate bonds
□ Applicable √Not applicable
During the reporting period, the company did not have convertible corporate bonds.
2019 Annual Report
IX. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount of Amount of
Shares Other Shares
Starting Expiry shares shares
Office held at the changes held at the
Name Positions Sex Age date of date of increased at the decreased at the
status year-begin( increase/ year-begin(
tenure tenure reporting reporting
share) decrease share)
period(share) period(share)
Zheng Board In January September
Male 50
Renfa Chairman office 4,2017 20,2022
Wang Director
In October September
Chun General Male 55 135,100 135,100
office 19,2015 20,2022
hua Manager
Director,
Wang In Fema April January
Chief 55 3,500 3,500
Ping office le 21,2014 8,2020
Engineer
Fang Director, In December September
Male 56
Zhi CFO office 31,2015 20,2022
Chen In July September
Director Male 56
Min office 19,2017 20,2022
Zeng In December September
Director Male 49
Zhijun office 4,2017 20,2022
In July September
Du Jun Director Male 54
office 21,2016 20,2022
Zhuo
In December September
Wei Director Male 48
office 4,2017 20,2022
heng
Cao In July September
Director Male 34 150,000 150,000
Yu office 21,2016 20,2022
Huang In July September
Director Male 44
Hai office 21,2016 20,2022
Gu Nai Independe In July September
Male 54
kang nt director office 21,2016 20,2022
Bao
Independe In July September
Fang Male 41
nt director office 21,2016 20,2022
zhou
2019 Annual Report
Amount of Amount of
Shares Other Shares
Starting Expiry shares shares
Office held at the changes held at the
Name Positions Sex Age date of date of increased at the decreased at the
status year-begin( increase/ year-begin(
tenure tenure reporting reporting
share) decrease share)
period(share) period(share)
Zhang Independe In December September
Male 54
Hua nt director office 4,2017 20,2022
Liu
Independe In December September
Zhong Male 54
nt director office 4,2017 20,2022
hua
Zeng
Independe In Fema May September
Xiao 50
nt director office le 20,2019 20,2022
qing
Chairman
Jiang of the
In May September
Chang Supervisor Male 52
office 20,2019 20,2022
wen y
Committee
Li Hai In Fema July September
Supervisor 48
hong office le 21,2016 20,2022
In Fema Septembe September
Ke Lin Supervisor 50
office le r 15,2017 20,2022
Feng In Septembe September
Supervisor Male 55
Yuan office r 9,2019 20,2022
Zhou In Septembe September
Supervisor Male 39
Yisan office r 9,2019 20,2022
Deputy
Zuo In Fema October September
General 47
Jiang office le 19,2015 20,2022
Manager
Deputy
Cheng In August September
General Male 45
Rui office 28,2017 20,2022
Manager
He legal In Fema July September
52
Bing counsel office le 23,2012 20,2022
Yang Secretary
In August September
Han to the Male 50
office 28,2017 20,2022
ming Board
Xiao Independe Dimis Fema April May
61
Duan nt director sion le 16,2013 20,2019
2019 Annual Report
Amount of Amount of
Shares Other Shares
Starting Expiry shares shares
Office held at the changes held at the
Name Positions Sex Age date of date of increased at the decreased at the
status year-begin( increase/ year-begin(
tenure tenure reporting reporting
share) decrease share)
period(share) period(share)
Chairman
of the
Ling Dimis Fema March April
Supervisor 56
Ping sion le 23,2015 26,2019
y
Committee
Cao
Dimis Fema July September
Xiaoyi Supervisor 51
sion le 21,2016 8,2019
ng
Yang
Dimis March September
Tiansh Supervisor Male 37
sion 30,2018 8,2019
u
Total -- -- -- -- -- -- 288,600 0 0 0 288,600
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Xiao Duan Independent director The term of office expires. May 19,2019 The term of office expires.
Chairman of the
Ling Ping Dimission April 8,2019 Retired
Supervisory Committee
Cao Xiaoying Supervisor Dimission September 8,2019 Job change
Yang Tianshu Supervisor Dimission September 8,2019 Job change
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Mr. Zheng Renfa，He served as Chairman, Master Degree,Senior economic engineer.Since December 2005，
He served as Deputy Minister of Investment Management Department of Guangdong Communication Group ，
Since April 21, 2014，He served as director ,Since August 15, 2016, the implementation of the duties of the Board
of Directors and the legal representative of the duties. Since January 4, 2017, he was the chairman of the board of
directors of the Company and hold a concurrent post of vice chairman of Guangdong Guanghui Expressway Co.,
Ltd.
Mr. Wang Chunhua, He served as Director and General Manager of the Company, Master Degree, senior
engineer and senior economic engineer, Since September 2006, he served as Deputy General Manager of the
Company.From March 2013 to October 2015, He served as director and Deputy General Manager of the Company,
Since October 2015, He served as Director and General director of the Company, and hold a concurrent post of
2019 Annual Report
vice chairman of Gankang Expressway Co., Ltd , Ganzhou Kangda Expressway Co., Ltd.and Shenzhen Huiyan
Expressway Co., Ltd.
Ms. Wang Ping, She served as Director and Chief Engineer of the Company, bachelor's degree, professor of
Engineering, National registered cost engineer, Senior Economist. From February 2001 to April 2012, she
served as Minister of Infrastructure Management Department. From April 2012 , she served as chief engineer of
the Company, Since April 21, 2014, She served as Director of the Company, and hold a concurrent post of
Chairman of Zhaoqing Highway Co., Ltd.and Vice Chairman of Guangdong Jiangzhong Expressway Co., Ltd. Ms.
Wang Ping resigned as a director and chief engineer on January 8, 2020 and did not hold any other positions in the
Company.
Mr. Fangzhi , He serves as Director , Master Degree and Senior Accountant, He served as associate director
and Deputy General Manager of Finance Center of Guangdong Communication Group, Since May 2015, He
served as Chief accountant of the Company, Since December 2015, He served as director and chief accountant of
the Company, and hold a concurrent post of Chairman of the board of supervisors of Guanghui Expressway Co.,
Ltd, and Direcotr of Yueke Technology Petty Loan Co., Ltd
Mr. Chin Min , He serves as Director , undergraduate degree, senior economist, corporate legal adviser, cost
engineer. From September 2001 to August 2009, He served as Senior economist , Director and General Manager
of Guangdong Jingtong Highway Engineering Construction Group Co., Ltd.,From August 2009 to April 2011, He
served as Deputy General Manager of Guangdong Nanyue Logistics Co., Ltd.,Form April 2011 to December 2014,
He served as Duputy Minister of Legal Affairs of Guangdong Communications Group Co., Ltd., Since December
2014, He served as Minister of Legal Affairs of Guangdong Communications Group Co., Ltd.,Since July ,19,
2017, He served as Director of the Company.
Mr. Zeng Zhijun, economist, is a director of the Company, with master degree. Since June 2010, he has served
as the deputy chief economist of Guangdong Provincial Expressway Co., Ltd. From January 2015 to September
2015, he served as Minister of Investment Planning Department of Guangdong Provincial Expressway Co., Ltd;
since September 2015, he has served as Minister of Legal Affairs Department of Guangdong Provincial
Expressway Co., Ltd. Since December 4, 2017, he serves as Director of the Company.
Mr. Du Jun, He serves as Director, Master's degree and bachelor's degree, senior engineer, He serves as
Deputy General Manager ,director and member of party committee of Guangdong Luqiao Construction
Development Co., Ltd.Since April 2016, He served as Deputy General Manager of Guangdong Highway
Construction Co., Ltd., Since July 21,2016, He served as Director of the Company.
Mr. Zhuo Weiheng, is a senior accountant, with bachelor degree. From January 2008 to May 2009, he served
as the minister of the financial audit department of Guangdong Provincial Highway Construction Co., Ltd. Since
May 2009, he has served as the Minister of Finance Management Department of Guangdong Provincial Highway
Construction Co., Ltd.,Since December 4, 2017, he served as Director of the Company.
Mr. Cao Yu, Master of Business Administration, since 2011 has served as Shanghai Fuxin high-tech (Group)
Co., Ltd. investment manager, deputy director of investment, investment director. From July 21, 2016, he served
as director of the Company.
Mr. Huang Hai, Master of Business Administration. Used to be Zhongshan Public Technology Co., Ltd.
securities manager and securities affairs representative. He is currently the Secretary of the Board of Directors of
Poly Real Estate, the Director of the Office of the Board of Directors and the Executive Director of Tibet Yinyue
Investment Management Co., Ltd. From July 21, 2016, he served as director of the Company.
2019 Annual Report
Mr. Bao Fangzhou, Independent director of the Company, Master of Law. Shanghai Jin Tiancheng Law Firm,
Senior Partner, 2008 - 2014 Former Independent Director of New Nanyang Co., Ltd. Since 2013, he has been an
independent director of Hubei Wushi Pharmaceutical Co., Ltd. since June 2016, Power Co., Ltd. Independent
Director. From July 21, 2016,He is an independent director of the Company.
Gu Naikang, Independent directors and doctorate degree of the Company. Since June 2004, he has been a
professor and doctoral tutor of Finance and Investment Department of Zhongshan University School of
Management. He is currently an independent director of Guangxi Guitang (Group) Co., Ltd., an independent
director of Dongguan Yuqiu Electronics Co., Ltd. and an independent director of Guangzhou Zhujiang Industrial
Development Co., Ltd. From July 21, 2016, he is an independent director of the Company.
Mr. Liu Zhonghua, professor of accounting, is an independent director of the Company, with master degree.
In September 2005, he was transferred to the School of Management of Guangdong University of Foreign Studies
to teach. He is currently a professor at the School of Accounting of Guangdong University of Foreign Studies, he
is a master tutor, concurrently serves as member of Accounting Society of China, executive member of China
Association of Foreign Trade and Economic Accounting, vice chairman of Guangdong Province Management
Accounting Association, executive member of Guangdong Provincial Accounting Association and member of
Guangdong Audit Society. Since December 4, 2017, he is an independent director of the Company.
Mr. Zhang Hua, economist, is an independent director of the Company, with Master Degree. From May 2006
to May 2012, he served as deputy general manager and chief investment director of Guangzhou Yingzhi Caihua
Investment Co., Ltd. From June 2012 to September 2016, he served as the deputy general manager of Guangzhou
De’rui Investment Co., Ltd and concurrently served as Deputy General Manager of Shenzhen Dongying Ruitong
Investment Management Partnership (Limited Partnership); since October 2016, he has served as general manager
of Shanghai Er Luo Investment Management Service Center (General Partnership). From November 2010 to
January 2017, he served as an independent director of Guangzhou Yu Yin Technology Co., Ltd. From December
2011 to September 2017, he served as an independent director of Guangdong Electric Power Development Co.,
Ltd. In September 2017, he was an independent director of Zhuhai Taichuan Cloud Community Technology Co.,
Ltd., Since December 4, 2017, he is an independent director of the Company.
Ms. Zeng Xiaoqing, an independent director of the Company, with doctor's degrees. She began to work in
Tongji University in 1993. From February 2000 to October 2002, she conducted post-doctoral research and study
in Tokyo Institute of Technology, Japan. She began to work in Tongji University in 1993, served as assistant
director of Shanghai Municipal Government's Expo Science and Technology Promotion Center from 2005 to 2012,
and served as vice-chairman and secretary-general of Shanghai Creative Studies Institute from 2012; She is
currently the director of Tongji University's Joint Experimental Center for Traffic Information Control, professor
and doctoral supervisor of Tongji University's School of Transportation Engineering. From May 20, 2019, she
served as the independent director of the Company.
Mr. Jiang Changwen, male, is 52 years old, master of management, senior accountant, senior economist.
From July 1999 to November 2006, he worked in Guangshenzhu Expressway Co., Ltd., and served as the
supervisor, deputy manager and manager of the accounting department. From November 2006 to January 2009, he
worked in the Jiangzhong Expressway Company, and served as the finance department manager; since January
2009, he has worked in the Guangdong Provincial Transportation Group Co., Ltd, and has served as a supervisor.
From May 20,2019, he is the assigned chairman of the supervisory board of Guangdong Communication Group
Co., Ltd.
Ms. Li Haihong, Supervisors of the Company, bachelor degree, senior economist and road and bridge
engineer. Since October 2008, she has been working as a supervisory and auditing department of the Guangdong
2019 Annual Report
Provincial Communications Group. From October 2008 to September 2012, she was appointed full-time
supervisor of Guangdong Expressway Co., Ltd., FromOctober 2012 to March 2016, she was appointed full-time
supervisor of Guangdong Yueyun Traffic Co., Ltd. and Guangdong Communications Industrial Investment Co.,
Ltd.,Form March 2016 to December 2017, she was appointed full-time supervisor of Guangdong Litong Real
Estate Investment Co., Ltd.,Since December 2017, she was appointed full-time supervisor of Guangdong Nanyue
Traffic Investment Construction Co., Ltd., Since March 2016, she was appointed full-time supervisor of
Guangdong Traffic Industry Investment Co., Ltd., from December 2018 to present, is the first secretary of the
party organization of Guangdong Kaiyang Expressway Co., Ltd. From July 21, 2016, she has served as supervisor
of the Supervisory Committee of the Company.
Ms.Ke Lin, bachelor degree, Bachelor of Science, assistant researcher. She began to take a job in July 1991.
She had successively served as cadre of personnel department, deputy head, head of the personnel department,
section chief rank cadre of discipline inspection and supervision department, director of the commission for
discipline Inspection (deputy-director level). In November 2008, she was transferred to work in Provincial
Transportation Group, successively served as member of party committee, union chairman and discipline
inspection commission secretary. From January 2013 to August 2017, she has served as party committee member,
discipline inspection commission secretary and chairman of the union in Yueyun Transportation. .Since September
15, 2017, She served as supervisor of Board of supervisor of the Company.
Mr. Feng Yuan, supervisor of the Company, bachelor of science, associate professor. From October 2009 to
October 2014, he served as deputy general manager of Guangdong Jiangzhong Expressway Co., Ltd. and director
and deputy general manager of Beijing-Zhuhai Expressway Guangzhu Section Co., Ltd. From October 2014 to
December 2018, he served as director, general manager and deputy secretary of the Party Committee of
Guangdong-Foshan Expressway Co., Ltd. and he has been deputy economist of the Company since December
2018. From September 9, 2019, he served as the employee supervisor of the 9th Supervisory Committee of the
Company.
Mr. Zhou Yisan, supervisor of the Company, postgraduate degree, master of law, enterprise legal consultant,
with national legal professional qualification, board secretary qualification, and securities, fund and futures
practitioner qualification. From February 2014 to April 2016, he was the deputy supervisor of the Legal Affairs
Department of Guangdong Transportation Group Co., Ltd. From April 2016 to September 2017, he was the deputy
head of the Investment Development Department and Legal Affairs Department of the Company, and he has been
the head of Legal Affairs Department of the Company since September 2017. From September 9, 2019, he served
as the employee supervisor of the 9th Supervisory Committee of the Company.
Ms. Zuo Jiang, Deputy General Manager of the Company, Master of Economics, Senior Economist, Qualified
as Legal Adviser of the Enterprise, Secretary of the Board of Directors. He has been working in the Company
since 1994. He has been the Minister of Securities Affairs of the Company since 1999. He has been the Secretary
of the Board of Directors and Director of Securities Affairs Department since March 2006. From October 2015 to
July 2016, he was the Deputy General Manager and Secretary of the Board of Directors And Minister of
Securities Affairs. Since October 2015, he has been the Deputy General Manager of the Company, and hold a
concurrent post of Director of Yueke Technology Petty Loan Co., Ltd., and director of Guoyuan Securities Co.,
Ltd.
Mr. Cheng Rui,On-job postgraduate, master of business administration, with a lawyer qualification. He began
to take a job in July 1997. He had successively served as development department staff, deputy manager of
investment management department and manager of investment management department in Xinyue Co.,Ltd,
served as Deputy General Manager of Xinyue Company in August 2015, and served as deputy minister of
2019 Annual Report
strategic development department from April 2016 to August 2017. Since August 2017, he served as Deputy
General Manager of the Company. During this period, starting from May 2019, she was assigned as the first
secretary of the Party organization in Shanhu Village, Jinhe Town, Jiexi County, Jieyang City.
Ms. He Bing , general counsel, master's degree in law, enterprise legal adviser, from August 2005 to July 2012,
she served as Deputy chief economic engineer of the Company, Since July 2012, she served as Chief legal adviser
of the Company. and hold a concurrent post of Director of Huiyan Expressway Co., Ltd., and supervisor of Jiangzhong
Expressway Co., Ltd.
Mr. Yang Hanming, he has been the Secretary of the Board， bachelor's degree, senior economist, corporate
legal adviser, with the board secretary qualifications. Since March 2000, he has been successively served as
deputy minister of investment planning and minister of legal affairs in Guangdong Provincial Expressway
Development Co., Ltd. Since August 2014, he has been concurrently served as minister of investment and
development. Since August 2017, he has been the Secretary of the Board of the Company, and hold a concurrent
post of Supervisor of Yueke Technology Petty Loan Co., Ltd., and supervisor of Ganzhou Kangda Expressway Co.,
Ltd.,Director of Guangdong Jiangzhong Expressway Co., ltd. Since September 2019, he served as Minister of
Development Dept of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Expiry Does he /she receive
Names of the Titles engaged in the Sharting date of date of remuneration or
Names of the shareholders
persons in office shareholders office term office allowance from the
term shareholder
Guangdong Communication Minister of Investment
Chen Min December 1,2014 Yes
Group Management Dept.
Guangdong Highway
Du Jun Deputy General Manager March 8,2016 Yes
Construction Co., Ltd.
Guangdong Highway
Zhuo Weiheng Deputy Chief Accountant March 26,2018 Yes
Construction Co., Ltd.
Guangdong Expressway Co., Minister of legal affairs
Zeng Zhijun September 1,2015 Yes
Ltd Dept
Tibet Yinyue Investment
Huang Hai Executive director June 1,2015 No
Management Co., Ltd.
Dispatched chairman of
Guangdong Communication
Jiang Changwen the supervisory January 1,2009 Yes
Group Co., Ltd.
committee
Guangdong Communication Full-time field
Li Haihong July 21,2016 Yes
Group Co., Ltd. supervisors
Offices taken in other organizations
√Applicable □Not applicable
2019 Annual Report
Expiry Does he/she receive
Name of the
Titles engaged in the Starting date of date of remuneration or
persons in Name of other organizations
other organizations office term office allowance from other
office
term organization
Bao Fangzhou Shanghai Allbright law firm Lawyer, Senior partner January 1,2000 Yes
Bao Fangzhou Laurel Power Co., Ltd. Independent director Jne 1,2016 Yes
Finance and Investment ,School of Professor, doctoral
Gu Naikang January 1,2004 Yes
Business Sun YAT-SEN University supervisor
Guangzhou Zhujiang Industry
Gu Naikang Independent director May 1,2014 Yes
Development Co., Ltd.
Mingyang Intelligent Energy Group
Gu Naikang Independent director July 1,2017 Yes
Co., Ltd.
Gu Naikang Zhubo Design Co., Ltd. Independent director December 1,2019 Yes
Gu Naikang Guangfa Securities Co., Ltd. Supervisor July 1,2016 Yes
Shanghai Erro Investment Management
Zhang Hua General Manager October 1,2016 Yes
Service Centre(General partnership)
Zhuhai Taichuan Community
Zhang Hua Independent director September 1,2017 Yes
Technology Co., Ltd .
Zhang Hua Guangzhou Yuyin Technology Co., Ltd. Independent director November 1,2018 Yes
College of Accounting, Guangdong Professor, Master’s September 1,
Liu Zhonghua Yes
University of Foreign Studies supervisor 2005
Liu Zhonghua Gelinmei Co., Ltd. Independent Director March 20,2019 Yes
Guangdong Shaogang Songshan Co.,
Liu Zhonghua Independent Director June 25,2019 Yes
Ltd.
Shanghai Fuxin high-tech (Group) Co.,
Cao Yu ECD May 1,2008 Yes
Ltd.
Zhongshan Public Utilies Group Co.,
Cao Yu Director July 8,2019 No
Ltd.
Poly Developments and Holdings
Huang Hai Secretary to the Board April 26,2012 Yes
Group Co., Ltd.
Huang Hai Poly Property Development Co., Ltd. Board chairman April 22,2019 No
Zeng Tongji University's School of Professor and doctoral
June 1,2007 Yes
Xiaoqing Transportation Engineering supervisor
Zeng Tongji University's Joint Experimental
Director June 30,2003 No
Xiaoqing Center for Traffic Information Control
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
2019 Annual Report
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The remuneration of members of the Eighth board of directors and supervisory committee was examined and
determined at the second provisional shareholders ’ general meeting in 2019The remuneration of the senior
executives is determined by the assets operation responsibility system in that year.
1. The directors of the Company and the controlling shareholder of the Company and its related parties, as
well as the directors of the Company, shall not receive the remuneration of the directors.
2. Directors who have not held other positions in the Company and the controlling shareholder of the
Company and its related parties are remunerated by the directors of the Company, and the standard is RMB 6,000
(tax included) per person per month. In addition, the expenses incurred by the independent directors at the board
of directors and the shareholders' general meeting and the expenses incurred in exercising their functions and
powers in accordance with the articles of association may be reimbursed in the company.
Remuneration to directors, supervisors and senior executives in the reporting period
Ten Thousands yuan
Total remuneration Whether to get paid in
Office
Name Positions Sex Age received from the the company related
status
Company party
Zheng Renfa Board Chairman Male 50 In Office 68.66 No
Wang Chunhua Director,General Manager Male 55 In Office 65.11 No
Wang Ping Director, Chief Engineer Female 55 In Office 60.89 No
Fang Zhi Director, Chief Accountant Male 56 In Office 61.05 No
Chen Min Director Male 56 In Office 0 Yes
Zeng Zhijun Director Male 49 In Office 0 Yes
Du Jun Director Male 54 In Office 0 Yes
Zhuo Weiheng Director Male 48 In Office 0 Yes
Cao Yu Director Male 34 In Office 6.3 No
Huang Hai Director Male 44 In Office 6.3 No
Xiao Duan Independent director Female 61 Dimission 3 No
Gu Naikang Independent director Male 54 In Office 6.3 No
Bao Fangzhou Independent director Male 41 In Office 6.3 No
Zhang Hua Independent director Male 54 In Office 6.3 No
Liu Zhonghua Independent director Male 54 In Office 6.3 No
Zeng Xiaoqing Independent director Female 50 In Office 3.3 No
Jiang Chairman of the
Male 52 In Office 0 Yes
Changwen Supervisory Committee
2019 Annual Report
Total remuneration Whether to get paid in
Office
Name Positions Sex Age received from the the company related
status
Company party
Chairman of the
Ling Ping Female 56 Dimission 0 Yes
Supervisory Committee
Li Haihong Supervisor Female 48 In Office 0 Yes
Ke Lin Supervisor Female 50 In Office 61.22 No
Cao Xiaoying Supervisor Female 51 Dimission 47.8 No
Yang Tianshu Supervisor Male 37 Dimission 34.89 No
Feng Yuan Supervisor Male 55 In Office 47.35 No
Zhou Yisan Supervisor Male 39 In Office 46.12 No
Zuo Jiang Deputy General Manager Female 47 In Office 61.22 No
Cheng Rui Deputy General Manager Male 45 In Office 62.34 No
He Bing Chief legal adviser Female 52 In Office 49.12 No
Yang Hanming Secretary to the Board Male 50 In Office 50.54 No
Total -- -- -- -- 760.41 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□ Applicable √Not applicable
V. Particulars about employees.
1.Number of staff, professional structure and educational background
Number of in-service staff of the parent company(person) 99
Number of in-service staff of the main subsidiaries(person) 2,055
The total number of the in-service staff(person) 2,154
The total number of staff receiving remuneration in the current
2,154
period(person)
Retired staff with charges paid by the parent company and
98
main subsidiaries (person)
Professional
Category Number of persons（person）
Management personnel 462
Toll collectors 1,280
Road service personnedl 131
Logistical personnedl 281
Total 2,154
2019 Annual Report
Education
Category Number of persons（person）
Holders of master’s degree or above 50
Graduates of regular university 421
Graduates of junior colleges 1,407
Other 276
Total 2,154
2. Remuneration policies
According to the company's overall development plan, to further establish and improve a variety of human
resource management system, strengthen the macro salary management, to maintain the level of salary market
competitiveness. Advocate salary and performance related, and constantly improve the performance appraisal
mechanism, personal performance appraisal approach, staff promotion system, to develop both incentive and
restrictive salary performance policy. Think highly of the establishment and perfection of welfare system, in
accordance with the relevant provisions of the state on time and in full for the full pay pension insurance, medical
insurance, work-related injury insurance, unemployment insurance, maternity insurance, housing provident fund
and other statutory benefits, comply with the provisions on working hours, rest and vacations, the establishment of
supplementary medical insurance, enterprise annuity and welfare system.
3.Training plan
Nil
4.Outsourcing situation
□ Applicable √ No Applicable
2019 Annual Report
X. Administrative structure
I. General situation
The Company strictly followed the requirement of laws and regulations in ,< the Securities
Law>,< Code of Corporate Governance for Listed Companies in China>, etc. and kept on
improving corporate governance structures, improving normative operation level. Company had stipulated rules
such as , rules of procedures in three meetings, working guide of special committee in
board of directors, working guide of general manager etc. and internal control system basically covering all
operating management such as company financial management, investment management, information disclosure,
related transaction, external guarantee, fund raising etc. All rules are well implemented.
In the report period, strictly following the relevant provisions of “Company Law”and “Regulations”, the
shareholder’s meeting of our bank effectively performed the functions. The board of directors is to be responsible
for the shareholder’ meeting, to take the ultimate responsibility for the bank’ operation and management and to
convene a meeting as well as performing the function and power according to legal procedure. In line with the
attitude which is responsible for all shareholders and keeping in close contact and communication with the board
of directors and the management, the board of supervisors carries out the assessment work on duty exercising for
the board of directors and the board of supervisors, effectively performing functions and obligations of
supervision.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
1. Independent business
The company mainly engaged in business is Guangfo Expressway, Fokai Expressway and Beijing-Zhuhai
Expressway Guangzhu section of the charges and maintenance work, investment in science and technology
industry and provide relevant advice.
it has invested in or holds Shenzhen Huiyan Expressway Co., Ltd., Guanghui Expressway Co., Ltd., Jiangzhong
Expressway Co., Ltd. , Zhaoqing Yuezhao Highway Co., Ltd., Ganzhou Kangda Expressway Co., Ltd ,Ganzhou
Gankang Expressway Co., Ltd., Guangdong Yueke Technology Micro Loan Co., Ltd. and Guangdong Guangle
Expressway Co., Ltd.
The Company has outstanding main operation, independent and complete business and the ability of independent
operation. All business decisions of the Company were made independently, being completely separated from the
shareholder with actual control. Related transactions were carried out in light of the principle of fair transaction,
which did not harm the interests of the Company and other shareholders of the Company. The content of related
transactions was fully, timely and accurately disclosed, which did not have negative influence on the Company.
2019 Annual Report
2. Complete assets
The relationship of the Company's property right is clear. The assets injected by shareholders in the Company
are independent and complete and have clear property right. All capital was paid up and relevant formalities of
property right change were settled.
3. Independent personnel
As for personnel relationship, the general manager, deputy general managers, the secretary to the board of
directors and financial controller of the Company were full-time employees and received salary from the
Company, who did not concurrently hold positions at the parent company.
All directors and supervisors of the Company were elected through legal procedure. The general manager,
deputy general managers, chief accountant, chief economic engineer and chief engineer were directly appointed
by the board of directors. Other managerial personnel of all levels were directly appointed by the general manager.
The Company owns independent power of personnel appointment and removal.
4. Independent finance
The Company, including subsidiaries established independent accounting department，independent accounting
system and regulations on financial management.
The Company independently opened bank account and did not deposit funds in the accounts of the finance
company or settlement center of the majority shareholder. The Company independently paid tax. The Company's
financial decisions were independently made. The majority shareholder did not interfere with the use of funds by
listed companies.
5. Independent organization
The board of directors, the supervisory committee and other internal organs of the Company operated
independently. Its organs are complete and independent.
III. Horizontal Competitions
□ Applicable √ Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Description
Sessions Meeting Date Resolution Disclosure date Disclosure index
of proposals
2018 Annual Announcement of Resolutions of the
Shareholders’ Shareholders’ 67.59% May 20,2019 May 21,2019 shareholders' general meeting in
general meeting General Meeting 2018.www.cninfo.com.cn
The First
provisional Provisional Announcement of Resolutions of the
shareholders’ shareholders’ 66.75% June 25,2019 June 26,2019 First provisional shareholders' general
General meeting General meeting meeting of 2019. www.cninfo.com.cn
of 2019
2019 Annual Report
The Second
Announcement of Resolutions of the
provisional Provisional
September September Second provisional shareholders'
shareholders’ shareholders’ 67.02%
20,2019 21,2019 general meeting of 2019.
General meeting General meeting
www.cninfo.com.cn
of 2019
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’general meeting
The attending of independent directors
Number of Board Attendance
Number of Number of Failure to personally
meetings Number of of the
Independent meetings attendances Number of attend board meetings
necessary to be spot shareholder
Directors attended by by absence successively twice
attended in the attendances s' general
Communication representative (Yes/No)
reporting period meeting
Gu Naikang 9 3 6 0 0 No 3
Gao Fangzhou 9 3 6 0 0 No 3
Liu Zhonghua 9 3 6 0 0 No 3
Zhang Hua 9 3 6 0 0 No 3
Zeng Xiaoqing 6 2 4 0 0 No 3
Xiao Duan 3 1 2 0 0 No 3
Notes to failure to personally attend Board Meetings Successively Twice
Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
No objections arising from the independent directors on relevant events of the Company during the Period
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
Independent directors seriously exercise the rights conferred by law, keep abreast of the company's production and
management information, concerned about the company's comprehensive development, actively attend relevant
2019 Annual Report
meetings held by the company in 2019, published an independent and objective advice on relevant matters for
consideration by the Board of Directors of the Company. Faithfully perform their duties, give full play to the
independent role of the independent directors, to safeguard the interests of the company as a whole, and to
safeguard the legitimate rights and interests of all shareholders, especially minority shareholders. The advices on
business development and corporate governance given by independent directors can be adopted.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
1. The board of directors has an audit committee composed of three directors. i.e., Mr. Liu Zhonghua , Mr.Zhang
Hua and Mr.Fang Zhi. The particulars of the work of the audit committee in the report period are as follows:
According to the Rules of Procedure of Audit Committee of the Board of Directors and Working Regulations
of Audit Committee of the Board of Directors on Annual Report and the work requirements of CSRC and
Shenzhen Stock Exchange on annual report for 2018 the audit committee carried out a series of work for the
annual audit of the Company for 2018, including deciding the working schedule for the audit of financial report
for the report year after consultation with the certified public accountants in charge, reviewing the financial report
prepared by the Company and forming written opinions, issuing the Urging Letter for Audit to certified public
accountants and requiring certified public accountants to carry out overall work plan for audit and submit relevant
progress report to the audit committee, reviewing the financial report for 2018 submitted by the Finance Dept. of
the Company (on which the certified public accountants in charge of annual audit issued standard unqualified
opinions) and giving written auditing opinions.
2. The board of directors has a remuneration committee composed of three directors, i.e., Mr. Bao Fangzhou, Mr.
Gu Naikang and Mr Huang Hai. The particulars of the work of the remuneration committee in the report period
are as follows:
According to the Company's Regulations on Performance Appraisal and Remuneration Management of Senior
Executives, the remuneration and appraisal committee audited the remuneration disclosed by the Company's
directors and senior executives for 2018 and expressed auditing opinions and examined and adopted the
remuneration scheme and appraisal scheme for senior executives of the Company for 2018.
3.In the report period, The board of directors has an strategy committee composed of five directors. i.e., Mr.
Zheng Renfa, Mr.Wang Chunhua, Mr.Gu Naikang, Mr.Bao Fangzhou , Mr.Zhang Hua and Ms.Zeng Xiaoqing.
Strategy Committee will strengthen the company's strategic direction, strategic planning, research, and supervise
the implementation of corporate strategies, provide timely advice to the Board decisions on strategic development.
4.The board of directors has set up a Risk Management Committee composed of three directors, including
chairman Mr. Zheng Renfa, members Mr. Gu Naikang and Mr. Bao Fangzhou.
The Risk Management Committee will work in accordance with the Company's Measures for the
Management of Risk Management and Internal Control and the Rules of Procedure of the Risk Management
Committee of the Board of Directors.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
2019 Annual Report
VIII. Assessment and incentive Mechanism for Senior executives
The Company implemented position responsibility to every senior management, and made clear regulations
on job standards, appraisal standards. The senior management staff shall report to worker representatives and
accept comments.
IX. Internal Control
I. Specific situations on major defects of internal control discovered during report period
□ Yes √ No
II. Self-evaluation report on internal control
2019 Annual Report
Disclosure date of appraisal report on internal control April 7,2020
Disclosure index of appraisal report on internal control www.cninfo.com.cn
The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements 100.00%
The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's consolidated financial statements 100.00%
Standards of Defects Evaluation
Type Financial Report Non-financial Report
2019 Annual Report
The qualitative criteria for the evaluation of internal control deficiencies in The qualitative criteria for the evaluation of internal control deficiencies in
financial reports confirmed by the Company is as follows: The following situations non-financial reports confirmed by the Company is as follows: Material deficiencies:
(including but not limited to) shall be deemed as “material deficiencies” in the serious violations and being sentenced to heavy fines or need taking criminal
internal control of the financial report. (1) There are major frauds made by the responsibility; utterly disregard the rules of law, illegal behaviors in the operation
directors, or supervisors, or senior management personnel in the company’s and management are particularly severe and the circumstance is very bad, which
management activities; (2)There are material misstatements in the current financial leads to the suspension or cessation to the company's daily operation and
report but the internal control failed to find the misstatements during its operation; management activities, and leads to the audit report with a disclaimer of opinion or a
(3) The supervisions made by the company's audit committee and the internal audit negative opinion issued by the CPA; the negative news spread all over the country,
organization on the internal control are invalid; (4) The control environment is which caused severe damage to the company’s reputation; resulted in decease of a
invalid; (5)The material deficiencies found and reported to the management but are number of workers or citizens, or resulted in damages that are unable to recover to
not corrected within a reasonable time; (6)There is an administrative punishment workers or citizens; reached the circumstance(grade II) of major environmental
from the securities regulatory event. Significant deficiencies: illegal and being punished; disregard the
institution due to accounting errors. requirements of the company’s management system and the relevant rules of law,
The following situations (including but not limited to) shall be deemed as there are illegal acts of using the authority to seek illegal interests in the work, which
“significant deficiencies” in the internal control of the financial report and significantly affect the efficiency and the result of daily operation and management
Qualitative standard
there are intense signs for the situations becoming “material deficiencies”: (1) activities and lead to the audit report with qualified opinion issued by the CPA; the
Frauds made by staff in key positions; (2)The supervisory function on compliance negative news spread in a region, which caused the large-extent damage to the
is invalid, and the violations of regulations may have a significant impact on the company’s reputation; resulted in decease of a worker or a citizen, or resulted in
reliability of the financial report; (3)The significant deficiencies reported to the damages that need long time to recover to workers or citizens;
management but are not reached the circumstance(grade Ⅲ) of big environmental event. General
corrected within a reasonable period. deficiencies: minor violations; the awareness of management under in compliance
The following situations (including but not limited to) shall be deemed as “general with laws and regulations is weak, lacking of business and management knowledge,
deficiencies” in the internal control of the financial report. (1) Frauds made by and there are phenomena such as being slack in performing management duties,
staff in non key positions, or business operators execute the implementation being passive and poorly execute the institution in the work, which shall affect the
procedures not strictly conforming to the company’s policy but resulted in no efficiency and the result of daily operation and management activities and lead to
significant impact on the reliability of the financial report. (2)The supervisory small effects to the company’s management goal; the negative news spread within
function on compliance is invalid, and the violations of regulations may not have a the company, which caused the little-extent damage to the company’s
significant impact on the reliability of the financial report; (3)The general reputation; shortly affected the health of the workers or citizens and the workers or
deficiencies reported to the management but are not corrected within a reasonable citizens can be recovered in a short time; reached the circumstance(grade Ⅳ) of
period. general environmental event.
2019 Annual Report
The qualitative criteria for the evaluation of internal control deficiencies in financial
The qualitative criteria for the evaluation of internal control deficiencies in
reports confirmed by the Company is as follows: Material deficiencies: potential
financial reports confirmed by the Company is as follows: Material deficiencies:
misstatement≧1% of the total amount of the
potential misstatement≧1% of the total amount of the
owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the total
Standards of owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the total
amount of the owner’s equity or RMB 100 million≤potential misstatement＜1% of
Quantization amount of the owner’s equity or RMB 100 million≤potential misstatement＜1%
the total amount of the owner’s equity or RMB 200 million; general deficiencies:
of the total amount of the owner’s equity or RMB 200 million; general
potential misstatement＜0.5% of the total amount of the owner’s equity or RMB
deficiencies: potential misstatement＜0.5% of the total amount of the owner’s
100 million Standards of Quantization
equity or RMB 100 million Standards of Quantization
Number of major
defects in financial 0
reporting（a）
Number of major
defects in non 0
financial reporting (a)
Number of important
defects in financial 0
reporting（a）
Number of important
defects in non 0
financial reporting（a）
2019 Annual Report
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
In our opinion, Guangdong Expressway has maintained effective financial report internal control in all material aspects according
to the basic standards for Enterprise internal control and relevant regulations ended December 31, 2019.
Disclosure of internal audit report Disclosure
Disclosure date of audit report
April 7,2020
of internal control (full-text)
Disclosure index of audit report
www.cninfo.com.cn
of internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting the existence
No
of significant deficiencies
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
XI. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without
payment in full at maturity on the approval date for annual report disclosed
No
2019 Annual Report
XII. Financial Report
I. Audit report
Type of audit opinion Standard Unqualified audit opinion
Type of audit opinion April 3,2020
Ruihua Certified Public Accountants (special general
Name of audit firm
partnership)
Audit report NO. Ruihua 【2020】4402001
Name of Certified public Accountant Qin Yanlin, Huang Zhiyan
Auditors’ Report
To all shareholders of Guangdong Provincial Expressway Development Co., Ltd.
I. Opinion
We have audited the financial statements of Guangdong Provincial Expressway Development Co., Ltd.
(hereinafter referred to as "the Company"), which comprise the balance sheet as at December 31, 2019, and the
income statement, the statement of cash flows and the statement of changes in owners' equity for the year then
ended and notes to the financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31, 2019 and its operating results and cash flows for the year then ended.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. We have identified the following items as key audit items that need to be communicated in the audit
report.
(I) Depreciation of fixed assets toll roads
1. Item description
As mentioned in "Section 5.15, Fixed Assets" and "Section 7.10, Fixed Assets", the book value of the
Guangdong Expressway at the end of 2019 was RMB8,415,370,425.02, accounting for 47.61% of the
2019 Annual Report
consolidated total assets; the depreciation provided for the toll road in 2019 was RMB770,040,553.89, accounting
for 56.77% of the consolidated operating costs. GX toll roads are depreciated according to the traffic flow method,
which calculates depreciation for the current period based on the ratio of the actual traffic flow to the expected
total remaining traffic flow during the operating period. Total traffic volume over the operating period is the
forecast of total traffic volume over the operating period of GDHC and is a significant accounting estimate.
Therefore, we determine the pricing and depreciation of toll roads of Guangdong Expressway Company as
the key audit items.
2. Audit response
In response to the above key audit matter, we have implemented the following main audit procedures:
(1)Understand, evaluate and test the internal control of the management of the Company on the daily
management and accounting treatment of toll roads;
(2)Check whether the actual traffic flow data applied by Guangdong Expressway Company in the
depreciation calculation of toll roads is consistent with the actual traffic flow data obtained by Guangdong
Expressway Company from external service units;
(3)Evaluate the independence and professional competence of the third-party organization employed by the
Company that carries out traffic flow forecast;
(4) Understand the methods used in traffic flow forecast reports issued by third-party organizations to
forecast the traffic flow in the future, and evaluate the reliability of traffic flow forecast reports by comparing the
predicted traffic flow for the past year with the actual traffic flow for that period;
(5) Recalculate the depreciation of roads and bridges to verify the accuracy of the depreciation amount of
roads and bridges in the financial statements.
(II) Equity investment
1. Item description
As described in " Section7-7, Long-term equity investments", “Section 7-8, Investments in other equity
instruments" and "Section 7-37, Investment income", the total year-end equity investments of Yuehighway
Company in 2019 amounted to RMB5,091,562,503.13, of which RMB3,255,739,898.36 in long-term equity
investments and RMB1,835,822,604.77 in other equity instruments accounted for 28.81% of the total consolidated
assets, of which RMB508,416,135.27 in total investment income from equity investments in 2019 accounted for
35.07% of the consolidated net profit in 2019. Equity investments have a significant impact on the 2019 financial
statements.
Therefore, we have determined the recognition and measurement of equity investment of Guangdong
Expressway Company as the key audit matter.
2. Audit response
In response to the above key audit matter, we have implemented the following main audit procedures:
(1) Obtain investment agreement, articles of association and other documents of equity investment, and
understand the purpose, business model and cash flow characteristics of investment contract of Guangdong
Expressway Company;
(2)Through examination of relevant documents and records, understand the joint control or major impact of
Guangdong Expressway Company on the joint venture company, including appointing representatives to the board
of directors of the joint venture company to participate in the formulation of financial and operating policies;
(3) Communicate and discuss with the management of Guangdong Expressway Company to evaluate the
actual impact of Guangdong Expressway Company on the major decisions of the joint venture company and
related operations, and to evaluate whether there has been any significant change compared with the previous
year;
2019 Annual Report
(4) Check the audit report of the important joint venture and associate company, and implement on-site audit
procedures for the important financial statement items of the important joint venture and associate company that
have influence on the equity method accounting of Guangdong Expressway Company; implement review
procedures for the financial statements of other joint venture and associate company;
(5) Pay attention to whether there are differences between the accounting policies of joint venture and
affiliated company and Guangdong Expressway Company, and check whether the accounting policies of equity
method of Guangdong Expressway Company have been adjusted;
(6) Recalculate the accuracy of equity measurement;
I.Other Matter
The consolidated and company balance sheet on December 31, 2018, the consolidated and company income
statement, the consolidated and company cash flow statement, the consolidated and company shareholders' equity
statement and the notes to the relevant financial statements were audited by other accounting firms, and an
unqualified opinion was issued on March 28, 2019.
II. Other information
The management of Guangdong Expressway Company is responsible for other information. Other
information includes the information covered in the 2019 annual report of Guangdong Expressway Company, but
does not include the financial statement and our audit report.
Our audit opinion on the financial statements does not cover other information, and we do not issue any form
of verification conclusion on other information.
In combination with our audit of the financial statements, our responsibility is to read other information, and
consider in such process whether other information is materially inconsistent with the financial statements or the
information we learned during the audit, or whether there appears to be a material misstatement.
Based on the work that we have already performed, if we determine that other information contains material
misstatements, we should report such fact. In this regard, we have nothing to report.
III. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
IV. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
2019 Annual Report
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the
Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Ruihua Certified Public Accountants Co., Ltd.(Special General Partnership)
Certified Public Accountant of China:
(project partner) Qin Yanlin
Certified Public Accountant of China: Huang Zhiyan
Beijing China
April 3, 2020
2019 Annual Report
II. Financial Statement
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by:：Guangdong Provincial Expressway Development Co., Ltd.
December 31,2019
In RMB
Items December 31,2019 December 31,2018
Current asset：
Monetary fund 2,817,920,894.50 2,124,524,996.32
Settlement provision
Outgoing call loan
Transactional financial assets
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Notes receivable
Account receivable 125,343,724.66 91,076,995.07
Financing of receivables
Prepayments 10,894,246.41 1,912,943.40
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 26,618,178.57 16,487,256.02
Including：Interest receivable
Dividend receivable 7,205,472.90 1,205,472.90
Repurchasing of financial assets
Inventories 111,683.22 81,017.91
Contract assets
Assets held for sales
Non-current asset due within 1 year 51,745.32 51,745.32
Other current asset
2019 Annual Report
Items December 31,2019 December 31,2018
Total of current assets 2,980,940,472.68 2,234,134,954.04
Non-current assets：
Loans and payment on other’s behalf
disbursed
Debt investment
Available for sale of financial assets 1,668,791,594.53
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 3,255,739,898.36 3,145,644,970.07
Other equity instruments investment 1,835,822,604.77
Other non-current financial assets
Property investment 3,331,500.37 3,579,007.54
Fixed assets 8,925,700,473.65 7,600,046,319.91
Construction in progress 229,098,299.48 1,089,473,425.63
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 6,393,895.17 5,739,020.48
Development expenses
Goodwill
Long-germ expenses to be amortized 1,114,764.44 1,221,781.88
Deferred income tax asset 385,494,106.13 447,485,034.79
Other non-current asset 50,909,325.73 99,794,665.58
Total of non-current assets 14,693,604,868.10 14,061,775,820.41
Total of assets 17,674,545,340.78 16,295,910,774.45
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair value
with variations accounted into current
income account
2019 Annual Report
Items December 31,2019 December 31,2018
Derivative financial liabilities
Notes payable
Account payable 290,657,734.31 203,779,190.74
Advance receipts 15,605,094.69 12,039,708.01
Contract liabilities
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 14,822,524.70 13,122,437.17
Tax payable 84,257,586.94 104,198,746.06
Other account payable 626,180,586.92 191,254,464.84
Including：Interest payable 8,971,576.57
Dividend payable 20,020,119.31 17,191,142.23
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 795,861,958.07 2,498,480,000.00
Other current liability 189,628.17
Total of current liability 1,827,575,113.80 3,022,874,546.82
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 4,640,425,000.00 2,983,040,000.00
Bond payable 678,124,972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 39,369,379.91 38,022,210.11
Long-term remuneration payable to staff
Expected liabilities
Deferred income
Deferred income tax liability 238,453,976.29 205,672,389.59
Other non-current liabilities
2019 Annual Report
Items December 31,2019 December 31,2018
Total non-current liabilities 5,596,373,329.09 3,226,734,599.70
Total of liability 7,423,948,442.89 6,249,609,146.52
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,562,570,465.31 2,536,774,965.31
Less：Shares in stock
Other comprehensive income 382,193,344.90 245,109,114.81
Special reserve
Surplus reserves 910,425,068.90 775,402,561.35
Common risk provision
Retained profit 3,877,431,844.64 3,938,609,136.59
Total of owner’s equity belong to the parent
9,823,426,849.75 9,586,701,904.06
company
Minority shareholders’ equity 427,170,048.14 459,599,723.87
Total of owners’ equity 10,250,596,897.89 10,046,301,627.93
Total of liabilities and owners’ equity 17,674,545,340.78 16,295,910,774.45
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
2019 Annual Report
2.Parent Company Balance Sheet
In RMB
Items December 31,2019 December 31,2018
Current asset：
Monetary fund 2,791,384,501.78 2,096,597,568.04
Transactional financial assets
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Notes receivable
Account receivable 21,864,051.27 18,405,847.15
Financing of receivables
Prepayments 1,737,598.88 1,532,057.82
Other account receivable 13,435,651.19 9,323,782.66
Including：Interest receivable 1,880,148.12
Dividend receivable 7,205,472.90 1,205,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 151,637,139.08 100,000,000.00
Other current asset
Total of current assets 2,980,058,942.20 2,225,859,255.67
Non-current assets：
Debt investment 537,903,684.98
Available for sale of financial assets 1,668,791,594.53
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 4,789,404,907.17 4,679,309,978.88
Other equity instruments investment 1,835,822,604.77
Other non-current financial assets
Property investment 3,079,362.12 3,326,869.29
Fixed assets 6,818,701,482.08 5,292,898,635.00
2019 Annual Report
Items December 31,2019 December 31,2018
Construction in progress 46,952,925.08 1,060,230,773.10
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 2,533,878.12 1,741,277.53
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 385,296,935.33 447,328,530.77
Other non-current asset 36,901,029.57 790,720,727.48
Total of non-current assets 14,456,596,809.22 13,944,348,386.58
Total of assets 17,436,655,751.42 16,170,207,642.25
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 129,930,285.56 124,833,335.72
Advance receipts
Contract Liabilities
Employees’ wage payable 6,340,740.61 5,669,203.37
Tax payable 8,704,510.83 10,297,144.52
Other account payable 582,131,356.01 142,457,135.79
Including：Interest payable 8,373,096.36
Dividend payable 20,020,119.31 17,191,142.23
Liabilities held for sales
Non-current liability due within 1 year 744,589,133.72 2,327,180,000.00
Other current liability 821,133,339.57 977,236,252.44
Total of current liability 2,292,829,366.30 3,587,673,071.84
Non-current liabilities：
Long-term loan 4,243,730,000.00 2,731,990,000.00
2019 Annual Report
Items December 31,2019 December 31,2018
Bond payable 678,124,972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 39,369,379.91 38,022,210.11
Long-term remuneration payable to
staff
Expected liabilities
Deferred income
Deferred income tax liability 129,978,356.56 88,220,604.00
Other non-current liabilities
Total non-current liabilities 5,091,202,709.36 2,858,232,814.11
Total of liability 7,384,032,075.66 6,445,905,885.95
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,974,458,696.93 2,948,663,196.93
Less：Shares in stock
Other comprehensive income 382,193,344.90 245,109,114.81
Special reserve
Surplus reserves 894,580,785.25 759,558,277.70
Retained profit 3,710,584,722.68 3,680,165,040.86
Total of owners’ equity 10,052,623,675.76 9,724,301,756.30
Total of liabilities and owners’ equity 17,436,655,751.42 16,170,207,642.25
Legal Representative :Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
2019 Annual Report
3.Consolidated Income statement
In RMB
Items Year 2019 Year 2018
I. Income from the key business 3,057,935,584.43 3,218,694,083.94
Incl：Business income 3,057,935,584.43 3,218,694,083.94
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,778,450,564.64 1,692,385,614.14
Incl：Business cost 1,356,412,853.77 1,279,095,071.32
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 16,149,616.32 15,987,266.39
Sales expense
Administrative expense 192,182,962.68 183,392,148.68
R & D costs 1,318,344.01
Financial expenses 213,705,131.87 212,592,783.74
Including：Interest expense 236,273,431.67 237,334,325.27
Interest income 28,663,756.79 31,889,543.71
Add: Other income 1,740,540.05 1,113,228.32
Investment gain（“-”for loss） 508,416,135.27 507,659,683.96
Incl: investment gains from affiliates 469,503,736.12 463,873,066.20
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
2019 Annual Report
Items Year 2019 Year 2018
Credit impairment loss -191,096.49
Impairment loss of assets -7,238,195.84 1,006,155.42
Assets disposal income 19,031,900.46 66,431,966.75
III. Operational profit（“-”for loss） 1,801,244,303.24 2,102,519,504.25
Add ：Non-operational income 2,965,674.12 4,175,801.94
Less: Non-operating expense 15,783,456.02 8,979,998.49
IV. Total profit(“-”for loss) 1,788,426,521.34 2,097,715,307.70
Less：Income tax expenses 338,841,390.07 194,374,904.99
V. Net profit 1,449,585,131.27 1,903,340,402.71
(I) Classification by business
continuity
1.Net continuing operating profit 1,449,585,131.27 1,903,340,402.71
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners
1,258,628,101.71 1,677,028,179.18
of parent company
2.Minority shareholders’ equity 190,957,029.56 226,312,223.53
VI. Net after-tax of other
126,887,291.61 -82,154,709.36
comprehensive income
Net of profit of other comprehensive in
126,887,291.61 -82,154,709.36
come attributable to owners of the pare
nt company.
（I）Other comprehensive income
items that will not be reclassified into
125,273,257.68
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under t
he equity method investee can not be re
classified into profit or loss.
3. Changes in the fair value of
125,273,257.68
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
2019 Annual Report
Items Year 2019 Year 2018
5.Other
（II）
Other comprehensive income that will 1,614,033.93 -82,154,709.36
be reclassified into profit or loss.
1.Other comprehensive income under t
1,614,033.93 -20,400,286.56
he equity method investee can be reclas
sified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.Gains and losses from changes in fair
-61,754,422.80
value available for sale financial assets
4. Other comprehensive income arising
from the reclassification of financial
assets
5.Held-to-maturity investments reclassi
fied to gains and losses of available for
sale financial assets
6. Allowance for credit impairments in
investments in other debt obligations
7. Reserve for cash flow hedges
8.Translation differences in currency fi
nancial statements
9.Other
Net of profit of other comprehensive in
come attributable to Minority
shareholders’ equity
VII. Total comprehensive income 1,576,472,422.88 1,821,185,693.35
Total comprehensive income
attributable to the owner of the parent 1,385,515,393.32 1,594,873,469.82
company
Total comprehensive income
190,957,029.56 226,312,223.53
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.60 0.80
(II)Diluted earnings per share 0.60 0.80
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0.00, last period the combined party realized RMB0.00.
2019 Annual Report
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
2019 Annual Report
4. Income statement of the Parent Company
In RMB
Items Year 2019 Year 2018
I. Income from the key business 1,290,289,841.76 1,407,552,753.41
Incl：Business cost 783,821,932.19 715,167,422.95
Business tax and surcharge 7,618,743.78 7,835,359.08
Sales expense
Administrative expense 118,364,771.13 110,081,131.38
R & D expense
Financial expenses 198,989,995.09 195,110,213.09
Including：Interest expenses 224,948,208.12 223,418,837.71
Interest income 28,519,844.52 31,556,863.82
Add：Other income 483,367.72 396,608.55
Investment gain（“-”for loss） 1,236,812,045.82 1,814,856,174.83
Including: investment gains from
469,503,736.12 463,873,066.20
affiliates
Financial assets measured at
amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets -7,238,195.84 1,013,982.92
Assets disposal income 276,051.47 200,494.75
II. Operational profit（“-”for loss） 1,411,827,668.74 2,195,825,887.96
Add ：Non-operational income 1,856,765.81 1,131,640.33
Less：Non -operational expenses 1,427,763.63 3,421,654.59
III. Total profit(“-”for loss) 1,412,256,670.92 2,193,535,873.70
Less：Income tax expenses 62,031,595.44 -112,278,439.46
IV. Net profit 1,350,225,075.48 2,305,814,313.16
1.Net continuing operating profit
2.Termination of operating net profit
V. Net after-tax of other
126,887,291.61 -82,154,709.36
comprehensive income
2019 Annual Report
Items Year 2019 Year 2018
（I）Other comprehensive income
items that will not be reclassified into
125,273,257.68
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit
plans of changes in net debt or net ass
ets
2.Other comprehensive income under
the equity method investee can not b
e reclassified into profit or loss.
3. Changes in the fair value of
investments in other equity 125,273,257.68
instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
(II)Other comprehensive income that
1,614,033.93 -82,154,709.36
will be reclassified into profit or loss.
1.Other comprehensive income under
the equity method investee can be re 1,614,033.93 -20,400,286.56
classified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.Gains and losses from changes in fa
ir value available for sale financial as -61,754,422.80
sets
4. Other comprehensive income
arising from the reclassification of
financial assets
5.Held-to-maturity investments reclas
sified to gains and losses of available
for sale financial assets
6. Allowance for credit
impairments in investments in other
debt obligations
7. Reserve for cash flow hedges
8.Translation differences in currency
financial statements
2019 Annual Report
Items Year 2019 Year 2018
9.Other
VI. Total comprehensive income 1,477,112,367.09 2,223,659,603.80
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
5. Consolidated Cash flow statement
In RMB
Items Year 2019 Year 2018
I.Cash flows from operating activities
Cash received from sales of goods or
3,106,889,139.80 3,287,727,513.56
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central
bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received from interest,
commission charge and commission
Net increase of inter-bank fund
received
Net increase of repurchasing business
Net cash received by agent in
securities trading
Tax returned
2019 Annual Report
Items Year 2019 Year 2018
Other cash received from business
62,631,730.01 96,620,294.65
operation
Sub-total of cash inflow 3,169,520,869.81 3,384,347,808.21
Cash paid for purchasing of
337,822,067.09 282,911,012.21
merchandise and services
Net increase of client trade and
advance
Net increase of savings in central
bank and brother company
Cash paid for original contract
claim
Net increase in financial assets
held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing
fee and commission
Cash paid to staffs or paid for staffs 353,578,371.44 331,709,871.16
Taxes paid 417,125,959.47 778,835,419.88
Other cash paid for business activities 72,442,573.98 74,905,926.92
Sub-total of cash outflow from
1,180,968,971.98 1,468,362,230.17
business activities
Net cash generated from /used in
1,988,551,897.83 1,915,985,578.04
operating activities
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 420,177,836.09 414,389,169.98
Net cash retrieved from disposal of
fixed assets, intangible assets, and 20,026,035.00 228,222,572.51
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
440,203,871.09 642,611,742.49
investment activities
2019 Annual Report
Items Year 2019 Year 2018
Cash paid for construction of fixed
assets, intangible assets and 823,074,417.73 845,371,278.92
other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
823,074,417.73 845,371,278.92
investment activities
Net cash flow generated by
-382,870,546.64 -202,759,536.43
investment
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as
investment from minor shareholders
Cash received as loans 3,756,700,000.00 1,385,000,000.00
Other financing –related cash
received
Sub-total of cash inflow from
3,756,700,000.00 1,385,000,000.00
financing activities
Cash to repay debts 3,017,350,000.00 1,785,260,000.00
Cash paid as dividend, profit, or
1,649,309,548.28 1,550,437,061.08
interests
Including: Dividend and profit paid
223,386,705.29 210,252,062.66
by subsidiaries to minor shareholders
Other cash paid for financing
791,384.00
activities
Sub-total of cash outflow due to
4,667,450,932.28 3,335,697,061.08
financing activities
Net cash flow generated by financing -910,750,932.28 -1,950,697,061.08
IV. Influence of exchange rate
alternation on cash and cash -1,534,520.73 -2,267,884.63
equivalents
V.Net increase of cash and cash
693,395,898.18 -239,738,904.10
equivalents
2019 Annual Report
Items Year 2019 Year 2018
Add: balance of cash and cash
2,123,303,796.32 2,363,042,700.42
equivalents at the beginning of term
VI ..Balance of cash and cash
2,816,699,694.50 2,123,303,796.32
equivalents at the end of term
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
6. Cash Flow Statement of the Parent Company
In RMB
Items Year 2019 Year 2018
I.Cash flows from operating activities
Cash received from sales of goods or
1,319,322,493.90 1,376,638,206.96
rending of services
Tax returned
Other cash received from business
77,128,413.98 451,033,420.59
operation
Sub-total of cash inflow 1,396,450,907.88 1,827,671,627.55
Cash paid for purchasing of
127,357,495.28 129,341,285.43
merchandise and services
Cash paid to staffs or paid for staffs 147,473,541.71 140,700,012.09
Taxes paid 49,562,069.12 51,584,160.49
Other cash paid for business activities 235,160,213.53 380,472,347.82
Sub-total of cash outflow from
559,553,319.64 702,097,805.83
business activities
Net cash generated from /used in
836,897,588.24 1,125,573,821.72
operating activities
II. Cash flow generated by investing
Cash received from investment
105,000,000.00
retrieving
Cash received as investment gains 1,152,310,903.36 1,045,610,436.49
Net cash retrieved from disposal of
fixed assets, intangible assets, and 4,900.00 313,375.00
other long-term assets
2019 Annual Report
Items Year 2019 Year 2018
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
148,330,950.62
received
Sub-total of cash inflow due to
1,257,315,803.36 1,194,254,762.11
investment activities
Cash paid for construction of fixed
assets, intangible assets and 704,297,796.17 803,184,034.08
other long-term assets
Cash paid as investment
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
5,000,000.00
activities
Sub-total of cash outflow due to
704,297,796.17 808,184,034.08
investment activities
Net cash flow generated by
553,018,007.19 386,070,728.03
investment
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 3,290,000,000.00 636,000,000.00
Other financing –related ash
291,000,000.00
received
Sub-total of cash inflow from
3,290,000,000.00 927,000,000.00
financing activities
Cash to repay debts 2,575,665,000.00 821,880,000.00
Cash paid as dividend, profit, or
1,407,137,756.96 1,275,396,189.75
interests
Other cash paid for financing
791,384.00 374,200,000.00
activities
Sub-total of cash outflow due to
3,983,594,140.96 2,471,476,189.75
financing activities
Net cash flow generated by financing -693,594,140.96 -1,544,476,189.75
IV. Influence of exchange rate
alternation on cash and cash -1,534,520.73 -2,267,884.63
equivalents
2019 Annual Report
Items Year 2019 Year 2018
V.Net increase of cash and cash
694,786,933.74 -35,099,524.63
equivalents
Add: balance of cash and cash
2,095,376,368.04 2,130,475,892.67
equivalents at the beginning of term
VI ..Balance of cash and cash
2,790,163,301.78 2,095,376,368.04
equivalents at the end of term
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
2019 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Year 2019
Owner’s equity Attributable to the Parent Company
Other Equity instrument Comm Minor
Items Total of owners’
Less: Other Speciali
Share Surplus on risk Ot shareholders’
Capital reserves Shares Comprehensive zed Retained profit Subtotal equity
preferre Sustainable equity
Capital Other reserves provis her
d stock debt in stock Income reserve
ion
I.Balance at the end of 2,090,806
2,536,774,965.31 245,109,114.81 775,402,561.35 3,938,609,136.59 9,586,701,904.06 459,599,723.87 10,046,301,627.93
last year ,126.00
Add:
Change of accounting 10,196,938.48 -9,749,843.30 447,095.18 447,095.18
policy
Correcting of previous
errors
Merger of entities
under common control
Other
II.Balance at the
2,090,806
beginning of current 2,536,774,965.31 255,306,053.29 775,402,561.35 3,928,859,293.29 9,587,148,999.24 459,599,723.87 10,046,748,723.11
,126.00
year
III.Changed in the
25,795,500.00 126,887,291.61 135,022,507.55 -51,427,448.65 236,277,850.51 -32,429,675.73 203,848,174.78
current year
（1）Total
126,887,291.61 1,258,628,101.71 1,385,515,393.32 190,957,029.56 1,576,472,422.88
comprehensive income
2019 Annual Report
Year 2019
Owner’s equity Attributable to the Parent Company
Other Equity instrument Comm Minor
Items Total of owners’
Less: Other Speciali
Share Surplus on risk Ot shareholders’
Capital reserves Shares Comprehensive zed Retained profit Subtotal equity
preferre Sustainable equity
Capital Other reserves provis her
d stock debt in stock Income reserve
ion
（II）Investment or
decreasing of capital by
owners
1Ordinary Shares inves
ted by shareholders
2Holders of other equit
y instruments invested
capital
3．Amount of shares
paid and accounted as
owners’ equity
4．Other
（III）Profit allotment 135,022,507.55 -1,310,055,550.36 -1,175,033,042.81 -223,386,705.29 -1,398,419,748.10
1.Providing of surplus
135,022,507.55 -135,022,507.55
reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or -1,175,033,042.81 -1,175,033,042.81 -223,386,705.29 -1,398,419,748.10
shareholders)
2019 Annual Report
Year 2019
Owner’s equity Attributable to the Parent Company
Other Equity instrument Comm Minor
Items Total of owners’
Less: Other Speciali
Share Surplus on risk Ot shareholders’
Capital reserves Shares Comprehensive zed Retained profit Subtotal equity
preferre Sustainable equity
Capital Other reserves provis her
d stock debt in stock Income reserve
ion
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 plans
that carry forward
Retained earnings
5．Other comprehensive
income carry-over
retained earnings
6．Other
(V). Special reserves
2019 Annual Report
Year 2019
Owner’s equity Attributable to the Parent Company
Other Equity instrument Comm Minor
Items Total of owners’
Less: Other Speciali
Share Surplus on risk Ot shareholders’
Capital reserves Shares Comprehensive zed Retained profit Subtotal equity
preferre Sustainable equity
Capital Other reserves provis her
d stock debt in stock Income reserve
ion
1. Provided this year
2．Used this term
（VI）Other 25,795,500.00 25,795,500.00 25,795,500.00
IV. Balance at the end 2,090,806
2,562,570,465.31 382,193,344.90 910,425,068.90 3,877,431,844.64 9,823,426,849.75 427,170,048.14 10,250,596,897.89
of this term ,126.00
2019 Annual Report
Amount in last year
In RMB
Year 2018
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less: Speci Comm Minor
Items Total of owners’
Other Ot
Ot Shares alized Surplus on risk shareholders’
share Capita preferre Capital reserves Comprehensive Retained profit he Subtotal equity
Sustainab he in reserv reserves provis equity
d stock Income r
le debt r stock e ion
2,090,806,126.0
I.Balance at the end of last year 2,510,069,749.76 327,263,824.17 544,821,130.03 3,550,110,288.49 9,023,071,118.45 431,039,563.00 9,454,110,681.45
0
Add: Change of accounting
policy
Correcting of previous errors
Merger of entities under
common control
Other
II.Balance at the beginning of 2,090,806,126.0
2,510,069,749.76 327,263,824.17 544,821,130.03 3,550,110,288.49 9,023,071,118.45 431,039,563.00 9,454,110,681.45
current year 0
III.Changed in the current year 26,705,215.55 -82,154,709.36 230,581,431.32 388,498,848.10 563,630,785.61 28,560,160.87 592,190,946.48
（1）Total comprehensive
-82,154,709.36 1,677,028,179.18 1,594,873,469.82 226,312,223.53 1,821,185,693.35
income
（II）Investment or decreasing
of capital by owners
1Ordinary Shares invested by s
hareholders
2019 Annual Report
Year 2018
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less: Speci Comm Minor
Items Total of owners’
Other Ot
Ot Shares alized Surplus on risk shareholders’
share Capita preferre Capital reserves Comprehensive Retained profit he Subtotal equity
Sustainab he in reserv reserves provis equity
d stock Income r
le debt r stock e ion
2Holders of other equity instru
ments invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other
-1,057,947,899.7 -197,752,062.6
（III）Profit allotment 230,581,431.32 -1,288,529,331.08 -1,255,699,962.42
6 6
1.Providing of surplus reserves 230,581,431.32 -230,581,431.32
2.Providing of common risk
provisions
3．Allotment to the owners (or -1,057,947,899.7 -197,752,062.6
-1,057,947,899.76 -1,255,699,962.42
shareholders) 6 6
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)
2019 Annual Report
Year 2018
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less: Speci Comm Minor
Items Total of owners’
Other Ot
Ot Shares alized Surplus on risk shareholders’
share Capita preferre Capital reserves Comprehensive Retained profit he Subtotal equity
Sustainab he in reserv reserves provis equity
d stock Income r
le debt r stock e ion
3．Making up losses by surplus
reserves.
4.Change amount of defined
benefit plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V). Special reserves
1. Provided this year
2．Used this term
（VI）Other 26,705,215.55 26,705,215.55 26,705,215.55
IV. Balance at the end of this 2,090,806,126.0
2,536,774,965.31 245,109,114.81 775,402,561.35 3,938,609,136.59 9,586,701,904.06 459,599,723.87 10,046,301,627.93
term 0
Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
2019 Annual Report
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Year 2019
Other Equity instrument
Less: Other Specializ
Items Surplus Othe Total of owners’
Share capital preferred Othe Capital reserves Shares Comprehensiv ed Retained profit
Sustainabl reserves r equity
stock r in stock e Income reserve
e debt
I.Balance at the end of last year 2,090,806,126.00 2,948,663,196.93 245,109,114.81 759,558,277.70 3,680,165,040.86 9,724,301,756.30
Add: Change of accounting policy 10,196,938.48 -9,749,843.30 447,095.18
Correcting of previous errors
Other
II.Balance at the beginning of current year 2,090,806,126.00 2,948,663,196.93 255,306,053.29 759,558,277.70 3,670,415,197.56 9,724,748,851.48
III.Changed in the current year 25,795,500.00 126,887,291.61 135,022,507.55 40,169,525.12 327,874,824.28
（I）Total comprehensive income 126,887,291.61 1,350,225,075.48 1,477,112,367.09
(II) Investment or decreasing of capital by
owners
1．Ordinary Shares invested by shareholders
2Holders of other equity instruments invested ca
pital
3.Amount of shares paid and accounted as
owners’ equity
4．Other
-1,310,055,550.3
（III）Profit allotment 135,022,507.55 -1,175,033,042.81
6
2019 Annual Report
Year 2019
Other Equity instrument
Less: Other Specializ
Items Surplus Othe Total of owners’
Share capital preferred Othe Capital reserves Shares Comprehensiv ed Retained profit
Sustainabl reserves r equity
stock r in stock e Income reserve
e debt
1.Providing of surplus reserves 135,022,507.55 -135,022,507.55
-1,175,033,042.8
2．Allotment to the owners (or shareholders) -1,175,033,042.81
1
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
（VI）Other 25,795,500.00 25,795,500.00
IV. Balance at the end of this term 2,090,806,126.00 2,974,458,696.93 382,193,344.90 894,580,785.25 3,710,584,722.68 10,052,623,675.76
2019 Annual Report
Amount in last year
In RMB
Year 2018
Other Equity instrument
Specia
Less: Other
Items lized Total of owners’
prefer
Share Capital Sustai Capital reserves Shares Comprehensive Surplus reserves Retained profit Other
red Other reserv equity
nable in stock Income
stock e
debt
I.Balance at the end of last year 2,090,806,126 2,921,957,981.38 327,263,824.17 528,976,846.38 2,662,880,058.78 8,531,884,836.71
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
2,090,806,126 2,921,957,981.38 327,263,824.17 528,976,846.38 2,662,880,058.78 8,531,884,836.71
current year
III.Changed in the current year 26,705,215.55 -82,154,709.36 230,581,431.32 1,017,284,982.08 1,192,416,919.59
（I）Total comprehensive income -82,154,709.36 2,305,814,313.16 2,223,659,603.80
(II) Investment or decreasing of
capital by owners
1Ordinary Shares invested by sha
reholders
2Holders of other equity instrum
ents invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
2019 Annual Report
Year 2018
Other Equity instrument
Specia
Less: Other
Items lized Total of owners’
prefer
Share Capital Sustai Capital reserves Shares Comprehensive Surplus reserves Retained profit Other
red Other reserv equity
nable in stock Income
stock e
debt
（III）Profit allotment 230,581,431.32 -1,288,529,331.08 -1,057,947,899.76
1.Providing of surplus reserves 230,581,431.32 -230,581,431.32
2．Allotment to the owners (or
-1,057,947,899.76 -1,057,947,899.76
shareholders)
3．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
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
2019 Annual Report
Year 2018
Other Equity instrument
Specia
Less: Other
Items lized Total of owners’
prefer
Share Capital Sustai Capital reserves Shares Comprehensive Surplus reserves Retained profit Other
red Other reserv equity
nable in stock Income
stock e
debt
1. Provided this year
2．Used this term
（VI）Other 26,705,215.55 26,705,215.55
IV. Balance at the end of this
2,090,806,126 2,948,663,196.93 245,109,114.81 759,558,277.70 3,680,165,040.86 9,724,301,756.30
term
Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
2019 Annual Report
III. Company Profile
(I)History
1.The Company was established in February 1993, which was originally named as Guangdong Fokai
Expressway Co., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co.,
Ltd. after reorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units
of Share Holding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as
follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang
Bridge Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong State-owned
Asset Management Dept., i.e.,RMB 418.2136 million, was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons
invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested
RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legal
person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co., Ltd.
in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24
approval document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68
document, the Company issued 135 million domestically listed foreign investment shares (B shares) to overseas
investors at the price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during
June to July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s
Republic of China with (1996) WJMZYHZ No. 606 document, the Company was approved to be a
foreign-invested joint stock company limited.
5 ． The Company distributed dividends and capitalized capital common reserve for the year 1996 in the
following manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common
reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486
and No. 487 document, the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term
of “payable in full on application, pro-rate placing and subject to refund” with the par value of each share being
RMB 1 in January 1998.
7 ． In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and
pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and
that of CSRC with ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249
million shares at the price of RMB 11 per Right.73,822,250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co., Ltd.
(Group Co.) for holding and management without compensation.
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,
2019 Annual Report
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”.
13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to
Parties such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by
Guangdong Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares
and paid 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 GF Securities Co.,Ltd.
The issuance of shares have been registered on July 7, 2016, the new shares will be listed on July 8, 2016.
As of December 31, 2019 ， Registration capital:RMB2,090,806,126 ， Legal representative ： Zheng
Renfa,Registration place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32,
Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou ， The company has set up: Investment
Development Dept, Security Affairs Department, Management Department, Financial Management Department,
Base construction Department, Audit and Supervise Department, Affairs Department, Personnel Department ,
Party Work Department, Law affairs Department , Project Office and Labour union etc.
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative:
Deng Xiaohua. Date of establishment: June 23, 2000. As of December 31, 2018,Registered capital: RMB 26.8
billion. 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.
(II)Organization structure and the actual controller of the Company
The State-owned assets Supervision and Administration Committee of the Guangdong Provincial people's
Government shall be the final controlling shareholder of the company.
（III）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Management fee
s and maintenance of roads, bridges, and car rescue, maintenance, cleaning, concurrently with the company's busi
ness supporting motor transport, warehousing operations.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and
JingzhuExpresswayGuangzhuSection ,investment in technological industries and provision of relevant consultatio
n while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu
2019 Annual Report
Expressway Guangzhu Co., Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway C
o., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology
Micro Loan Co., Ltd.,Guangdong Guangle Expressway Co.,Ltd. and Guoyuan Securities Co., Ltd.
The financial statements have been authorized for issuance by the Board of Directors of the Group on April
3 ,2020.
As of December 31,2019,The company's consolidated subsidiaries of total 5 companies, Refer to financial
statements VIII, Equity in other entities for more details.
IV. Basis for the preparation of financial statements
1.Preparation basis
The financial statements of the Company have been prepared on basis of going concern in conformity with
Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises
issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33, the
Ministry of Finance revised order No.76) on February 15, 2006, and revised Accounting Standards (order 42 of
the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to
the Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China Securities
Regulatory Commission (CSRC).
According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises,
the Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the
lower of its book value at its classification date and fair value minus expected disposal costs. Where assets are
impaired, provisions for asset impairment are made in accordance with relevant requirements
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will
cause material doubts as to the continuation capability of the Company.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates are indicated as follows:
According to the actual production and operation characteristics and the provisions of relevant accounting
standards for enterprises, the Group has formulated a number of specific accounting policies and accounting
estimates for revenue recognition and other transactions and events. For details, see "24, Revenue" in V of this
section. Please refer to "29, Significant Accounting Judgments and Estimates" in V of this section for explanations
of significant accounting judgements and estimates made by management.
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 as of June 30, 2019. In addition, the financial statements
of the Company comply, in all material respects, with the revised disclosing requirements for financial statements
and the Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—
General Provisions on Financial Reports (2014 Revision) issued by China Securities Regulatory Commission
(CSRC) in 2014.
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim period refers
2019 Annual Report
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
Yuan (CNY) is the currency of the primary economic environment in which the Company and its domestic
subsidiaries operate. Therefore, the Company and its domestic subsidiaries choose CNY as their functional
currency. 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
A business combination is a transaction or event that brings together two or more separate entities into one
reporting entity. Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
1.Business Combinations under the Same Control
A business combination involving enterprises under common control is a business combination in which all
of the combining enterprises are ultimately controlled by the same party or parties both before and after the
combination, and that control is not transitory.
For a business combination involving enterprises under common control, the party that, on the combination
date, obtains control of another enterprise participating in the combination is theabsorbing party, while that other
enterprise participating in the combination is a party being absorbed. Combination date is the date on which the
absorbing party effectively obtains control of the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being
combined at the combination date. The difference between the carrying amount of the net assets obtained and the
carrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to
the capital premium (or share premium) in the capital reserve. If the balance of the capital premium (or share
premium) is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to the
combination shall be recognized as an expense through profit or loss for the current period when incurred.
2. Business Combinations not under the Same Control
A business combination involving enterprises not under common control is a business combination in which
all of the combining enterprises are not ultimately controlled by the same party or parties both before and after the
business combination.
For a business combination not involving enterprises under common control, the party that, on the
acquisition date, obtains control of another enterprise participating in the combination is the acquirer, while that
other enterprise participating in the combination is the acquiree. Acquisition date is the date on which the acquirer
effectively obtains control of the acquiree.
For a business combination not involving enterprise under common control, the combined cost including the
sum of fair value, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities
issued by the acquirer. The intermediary expenses incurred by the acquirer in respect of auditing, legal services,
2019 Annual Report
valuation and consultancy services, etc. and other associated administrative expenses attributable to the business
combination are recognized in profit or loss when they are incurred.
The transaction cost arose from issuing of equity securities, or liability securities shall be initially recognized
as equity securities or liability securities. The contingent consideration related to the combination shall be booked
as combination cost at the fair value at the acquisition date. If within the 12 months after the acquisition,
additional information can prove the existence of related information at the acquisition date and the contingent
consideration need to be adjusted, goodwill can be adjusted.
Combination cost of the acquirer’s interest and identifiable net assets of the acquirer acquired through the
business combination shall be measured by the fair value at the acquisition date. Where the costof combination
exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference shall be
recognized as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference shall be accounted for according to the following requirements: (i)
the acquirer shall reassess the measurement of the fair values of the acquiree’s identifiable assets, liabilities and
contingent liabilities and measurement of the cost of combination; (ii) if after that reassessment, the cost of
combination is still less than the acquirer’s interest in the fair values of the acquiree’s identifiable net assets, the
acquirer shall recognize the remaining difference immediately in profit or loss for the current period.
Where the temporary difference obtained by the acquirer was not recognized due to conformity with the
conditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional
information can prove the existence of related information at acquisition date and the expected economic benefits
on the acquisition date arose from temporary deductible difference by the acquiree can be achieved, relevant
income tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall be
recognized as the profit of the current period.
Apart from above, the differences shall be taken into profit or loss of the current period if the recognition of
deferred income tax assets is related to the combination.
For a business combination not involving enterprise under common control, which achieved in stages that
involves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance of
Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article 51 of “Accounting Standards for
Business Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion (see Note 4.5.2),
to judge the multiple exchange transactions whether they are the "package deal". If it belongs to the “package
deal” in reference to the preceding paragraphs of this section and the Notes described in 4.13 “long-term
investment” accounting treatment, if it does not belong to the “package deal” to distinguish the individual
financial statements and the consolidated financial statements related to the accounting treatment:
In the individual financial statements, the total value of the book value of the acquiree's equity investment
before the acquisition date and the cost of new investment at the acquisition date, as the initial cost of the
investment, the acquiree's equity investment before the acquisition date involved in other comprehensive income,
in the disposal of the investment will be in other comprehensive income associated with the use of infrastructure
and the acquiree directly related to the disposal of assets or liabilities of the same accounting treatment (that is,
except in accordance with the equity method of accounting in the defined benefit plan acquiree is remeasured net
changes in net assets or liabilities other than in the corresponding share of the lead, and the rest into the current
investment income).
In the combination financial statements, the equity interest in the acquiree previously held before the
acquisition date re-assessed at the fair value at the acquisition date, with any difference between its fair value and
its carrying amount is recorded as investment income. The previously-held equityinterest in the acquiree involved
in other comprehensive income and other comprehensive income associated with the purchase of the foundation
2019 Annual Report
should be used party directly related to the disposal of assets or liabilities of the same accounting treatment (that is,
except in accordance with the equity method of accounting in the acquiree is remeasured defined benefit plans
other than changes in net liabilities or net assets due to a corresponding share of the rest of the acquisition date
into current investment income).
6.Methods for Preparing the Consolidated Financial Statements
（1）The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control.
Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its
operating activities. The scope of consolidation includes the Company and all of the subsidiaries. The subsidiary
is an enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant elements
involved in the control of the change, the Company will be re-evaluated.
（2） Preparation of the consolidated financial statements
The subsidiary of the Company is included in the consolidated financial statements from the date when the
control over the net assets and business decisions of the subsidiary is effectively obtained and excluded from the
date when the control ceases.
For a subsidiary disposed of by the Company, the operating results and cash flows before the date of disposal
(the date when control is lost) are included in the consolidated income statement and consolidated statement of
cash flows, as appropriate. For a subsidiary disposed of during the period, no adjustment is made to the opening
balance of the consolidated financial statements. For a subsidiary acquired through a business combination not
under common control, the operating results and cash flows from the acquisition (the date when the control is
obtained) are included in the consolidated income statement and consolidated statement of cash flows, as
appropriate; no adjustment is made to the opening balance and comparative figures in the consolidated financial
statements.
Where a subsidiary was acquired during the reporting period, through a business combination involving
enterprises under common control, the financial statements of the subsidiary are included in the consolidated
financial statements. The results of operations and cash flow are included in the consolidated balance sheet and
the consolidated income statement, respectively, based on their carrying amounts, from the date that common
control was established, and the opening balances and the comparative figures of the consolidated financial
statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of theCompany,
the Company makes necessary adjustments to the financial statements of the subsidiary based on the Company’s
own accounting period or accounting policies. Where a subsidiary was acquired during the reporting period
through a business combination not under common control, the financial statements were reconciled on the basis
of the fair value of identifiable net assets at the date of acquisition. Intra-Group balances and transactions and any
unrealized profit or loss arising from intra-Group transactions are eliminated in preparing the consolidated
financial statements.
Minority interest and the portion of the net profit or loss not attributable to the Company are presented
separately in the consolidated balance sheet within shareholders’/ owners’ equity and net profit. Net profit or loss
attributable to minority shareholders in the subsidiaries is presented separately as minority interest in the
consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders. of a subsidiary
exceeds the minority shareholders’ portion of the opening balance of shareholders’/equity of the subsidiary, the
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excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment or
other reasons, the remaining equity investment is re-measured at its fair value at the date when control is lost. The
difference between 1) the total amount of consideration received from the transaction that resulted in the loss of
control and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in the
former subsidiary’s net assets immediately before the loss of the control is recognized as investment income for
the current period when control is lost. Other comprehensive income related to the former subsidiary's equity
investment, using the foundation and the acquiree directly related to the disposal of the same assets or liabilities
are accounted when the control is lost (i.e., in addition to the former subsidiary, which is remeasured at the net
defined benefit plan or changes in net assets and liabilities resulting from, the rest subsidiaries are transferred to
the current investment income). The retained interest is subsequently measured according to the rules stipulated in
the - “Chinese Accounting Standards for Business Enterprises No.2 - Long-term equity investment” or “Chinese
Accounting Standards for Business Enterprises No.22 - Determination and measurement of financial instruments”.
See Note 5.14 Long-term equity investments and Note 5.10 Financial instruments for details.
Where loss of control over a subsidiary result from multiple transactions (agreements), the assessment shall
be made as to whether the multiple agreements shall be viewed as a whole as a single transaction. Multiple
agreements giving rise to loss of control over a subsidiary is generally viewed as a whole as a single transaction if
the terms, conditions and economic implications of the multiple agreements satisfy one or more of the following
conditions: 1) the agreements are entered into simultaneously or taking into account the implication of each other;
2) the business objective cannot be achieved without successful completion of all the agreements; 3)the
occurrence of oneagreement is dependent on the result of at least another one agreement; and/or 4) any one single
agreement is not recognized as economic, and the agreements as a whole is economic. Where multiple agreements
do not satisfy the conditions of being viewed as a single transaction, each agreement shall be treated and
accounted for in accordance with the provisions of disposal of long-term equity investments not resulting loss of
control (see Note 5.14.2.4) or loss of control due to disposal of shares or other events (see the previous paragraph).
Where multiple agreements satisfy the conditions of being viewed as a single transaction, each agreement shall be
treated and accounted for as a transaction which results in loss of control; differences between the consideration
for disposals prior to loss of control and the net assets proportionate to the shares disposed prior to loss of control
are recognized as other comprehensive income in the consolidated financial statements and transferred to profit or
loss at the time of loss of control.
7.Joint venture arrangements classification and Co-operation accounting treatment
A joint arrangement is an arrangement of which two or more parties have joint control. A joint arrangement is
either a joint operation or a joint venture, depending on the rights and obligation of the Company in the joint
arrangement. A joint operation is a joint arrangement whereby the Company has rights to the assets, and
obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the
Company has rights to the net assets of the arrangement.
The Company accounts for joint ventures using the equity method, see Note 5.14.2.2 for details.
The Company, a joint operator, recognizes in relation to its interest in a joint operation: (a) its assets,
including its share of any assets held jointly; (b) its liabilities, including its share of any liabilities incurred jointly;
(c) its revenue from the sale of its share of the output arising from the joint operation;(d)its share of the revenue
from the sale of the output by the joint operation; and (e)its expenses, including its share of any expenses incurred
jointly.
When the Company enters into a transaction with a joint operation in which it is a joint operator, such as a
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sale or contribution of assets, the Company, prior to disposal of the assets to a third party by the joint operation,
recognizes gains and losses resulting from such a transaction only to the extent of the other parties' interests in the
joint operation. When there is evidence of a reduction in the net realizable value of the assets to be sold or
contributed to the joint operation, or of an impairment loss of those assets which is in line with provision
stipulated by CAS 8, those losses are recognized fully by the Company. When there is evidence of a reduction in
the net realizable value of the assets to be purchased or of an impairment loss of those assets, the Company shall
recognize its share of those losses.
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase), with strong
liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of
change.
9.Foreign Currency Transaction
1 Translation in foreign exchange transactions
Transactions denominated in foreign currencies are translated into the functional currency using the
transaction-date spot exchange rates. Where a transaction is conducted purely for the purpose of exchange one
currency into another currency, the exchange rate used to translate the foreign currency into the functional
currency is the exchange rate that is actually used for the currency exchange.
2 Translation of foreign monetary currency and non-monetary foreign currency
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the
balance sheet date. All the exchange differences thus resulted are taken to profit or loss, except for ① those
relating to foreign currency borrowings specifically for construction and acquisition of qualifying assets, which
are capitalized in accordance with the principle of capitalization of borrowing costs, ② hedging accounting, the
exchange difference related to hedging instruments for the purpose of net oversea operating investment is
recorded in the comprehensive income till the date of disposal and recognized in profit or loss of the period;
exchange difference from changes of other account balance of foreign currency monetary items, ③
available-for-trade is recorded into profit or loss except for amortized cost.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spot exchange
rate prevailing on the transaction date, and the amount denominated in the functional currency is not changed.
Non-monetary foreign currency items measured at fair value are translated at the spot exchange rate prevailing at
the date when the fair values are determined. The exchange difference thus resulted are recognized in profit or loss
for the current period or as capital reserve.
（3）Conversion method of Foreign currency Financial statements
Where the preparation of consolidated financial statements involves overseas operations, if any foreign
currency monetary item constitutes a net investment in overseas operations in essence, the exchange difference
resulting from the change of exchange rate shall be recognized as other comprehensive gains as the "conversion
difference of foreign currency statements"; when dealing with overseas operations, it shall be included in the
profits and losses of the current period of disposal.
Foreign currency financial statements operated abroad are converted into RMB statements by the following
methods: assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet
date; shareholder equity items are converted at the spot exchange rate at the time of occurrence, except for
"undistributed profit" items. The revenues and expenses in the income statement are converted with the spot
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exchange rate on the transaction day. The undistributed profit at the beginning of the year is the undistributed
profit at the end of the year after the conversion of the previous year; the undistributed profit at the end of the year
is calculated and shown according to the items of the profit distribution after the conversion; the difference
between the total amount of assets and liabilities and shareholders' equity after the conversion is recognized as the
conversion difference of foreign currency statements and as other comprehensive income. When the foreign
operation is disposed and the control right is lost, the conversion balance which is presented under the
shareholders’ equities item in the balance sheet and arises from the conversion of foreign currency financial
statements related to this foreign operation will be transfered into the current profit and loss fully or in the foreign
operation proportion.
Cash flow of foreign currency shall be converted into spot exchange rate on the date of occurrence of cash
flow. The influence of exchange rate fluctuation on cash will be separately presented as an adjustment item in the
Cash Flow Statement.
The account at the beginning of current year and the actual amount of previous year shall be listed in
accordance with the translation differences statements of the previous year.
During the management of the entire owner's equity of the Company's operations abroad or the loss of
control over overseas operations due to the disposal of part of the equity investment or other reasons, the
converted balance of the foreign currency statements related to the overseas operations, which are attributable to
the owner's rights and interests of the parent Company, as shown below in the balance sheet, shall be transferred
to the current profit and loss.
During the management of part of the equity investment or other reasons leading to the reduction of the
proportion of holding overseas operating rights and interests but not losing control over overseas operations, the
balance of foreign currency statement conversion related to the part of overseas operation and disposal will be
attributed to the rights and interests of minority shareholders and shall not be transferred to current profits and
losses. During the management of part of the equity of an overseas joint venture or joint venture, the difference in
the conversion of foreign currency statements related to the overseas operation shall be transferred to the profits
and losses of the current period according to the proportion of disposing of the overseas operation.
If there are foreign currency monetary items that constitute a net investment in overseas operations, the
exchange differences arising from exchange rate changes in the consolidated financial statements shall be
recognized as other comprehensive income as "translation differences in foreign currency statements"; The
disposal of overseas operations shall be included in the profits and losses of the current period.
10.Financial instruments
The Company recognizes the financial assets or liabilities when involved in financial instruments’
agreements.
（1）Classification, recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractual
cash flow of financial assets, the Company classifies financial assets into: financial assets measured in amortized
cost; financial assets measured at fair value and their's changes are included in other comprehensive income;
financial assets measured at fair value and their's changes are included in current profits and losses.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value, whose changes are included in current profits and losses, relevant transaction costs are directly included
in current profits and losses; For other types of financial assets, relevant transaction costs are included in the
initial recognition amount. Accounts receivable or notes receivable arising from the sale of products or the
provision of labor services that do not include or take into account significant financing components are initially
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recognized by the Company in accordance with the amount of consideration that the Company is expected to be
entitled to receive.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements, that is, the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets, the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.
②Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow, and
the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculated
according to the actual interest rate method are included in current profits and losses.
In addition, the Company designated some non-trading equity instrument investments as financial assets
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
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included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset, financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,
measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: ① The
contractual right to collect the cash flow of the financial asset is terminated; ② The 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; ③ The 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.
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(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets
and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is
presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date. The fair value of financial instruments existing in an active
market is determined by the Company according to its quoted price in this market. westbank The quoted prices in
the active market refer to the prices, which are easily available from the stock exchanges, brokers, industry
associations, pricing service institutions and etc. at a fixed term, and which represent the prices at which actually
occurred market transactions are made under fair conditions.¨ In can a financial instrument does not exist in
active markets, its fair value shall be determined by the Company with assessment techniques. The value appraisal
techniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latest
market transaction upon their own free will, the current fair value obtained by referring to other financial
instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc. In
valuation, the Company adopts valuation techniques that are applicable in the current situation and supported by
sufficient data and other information to select input values consistent with the characteristics of assets or liabilities
considered by market participants in the transactions of related assets or liabilities, and give priority to the use of
relevant observable input values as far as possible. Unallowable values are used if the relevant observable input
values are not available or are not practicable.
（7）Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. The consideration received from issuing equity instruments, net of transaction costs,
are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to
holders of equity instruments are deducted from shareholders’ equity.
The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the
Company's equity instruments during the period of their existence shall be treated as profit distribution.
11. Impairment provision for financial assets
The Company requires to confirm that the financial assets lost by impairment are financial assets measured
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by amortized cost, investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains, mainly including notes receivable, accounts receivable,
other receivables, creditor's rights investment, other creditor's rights investment and long-term receivables and etc.
In addition, provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss, the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).
Credit loss refers to the difference between the cash flow of all contracts discounted according to the original
real interest rate and the expected cash flow of all contracts receivable according to the contract, that is, the
present value of all cash shortages. Among them, the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.
The general method of measuring anticipated credit loss is whether the credit risk of the Company's financial
assets (including other applicable items such as contract assets, similarly hereinafter) has increased significantly
since the initial recognition on each balance sheet day. If the credit risk has increased significantly 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
① Account receivable
In regard to receivables without significant financing components, the Company shall measure loss
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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 This portfolio is characterized by the aging of receivables as a credit risk.
For the above portfolio 1, the measurement method of bad debts reserve is the aging analysis method, specifically
as follows：
Aging Proportion （%）
Within 1 year（Including 1 year） 0
1-2 years 10
2-3 years 30
3-4 years 50
4-5 years 90
Over 5 years 100
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.
12.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
1.Investories class: The company’s stocks can be classified as: raw materials, etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to
the weighted averages method or the first-in first-out method.
3. Determination of net realizable value of inventories and impairment allowance for inventories
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Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable value is
determined on the basis of clear evidence obtained and takes intoconsideration the purpose of holding inventories
and effect of post balance sheet events.
At the balance sheet date, inventories are measured at the lower of the cost and net realizable value. If the
net realizable value is below the cost of inventories, a provision for decline in value of inventories is made. The
provision for inventories decline in value is normally determined by the difference of the cost of the individual
item less its realizable value. For large quantity and low-value items of inventories, provision for decline in value
is made based on categories of inventories.
For items of inventories relating to a product line that are produced and marketed in the same geographical
area, have the same or similar end users or purposes, and cannot be practicably evaluated separately from other
items in that product line provision for decline in value is determined on an aggregate basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused
inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher
than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss
for the period.
4. Physical inventories are managed by the perpetual inventory taking system.
5. Amortization of low-value consumables and packaging materials.
Low-value consumables and packaging materials are fully amortized at the time of issuance.
13. Held-for-sale assets and disposal group
The Company classify a non-current asset or disposal group as held for sale if its carrying amount will be
recovered principally through a sale transaction rather than through continuing use. For this to be the case, the
following conditions shall be met: a) the asset (or disposal group) must be available for immediate sale in its
present condition subject to terms that are usual and customary for sales of such assets or disposal groups; b) the
Company has made the resolution on the disposal plan and must be committed to a plan to sell the asset (or
disposal group); c) the sale is expected to be completed within one year from the date of classification. A disposal
group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and
liabilities directly associated with those assets that will be transferred in the transaction. The group shall include
goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been
allocated in accordance with the requirements of Accounting Standard for Business Enterprises No. 8 –
Impairment of assets.
The Company measure a non-current asset or disposal group classified as held for sale at the lower of its
carrying amount and fair value less costs to sell on initial recognition and subsequent remeasurement on the
balance sheet date. An impairment loss is recognized when the carrying amount is higher than the fair value less
costs to sell, and allowance for impairment is recognized accordingly. For the disposal group, the recognized
impairment loss on assets is offset against the carrying amount of the goodwill in the disposal group, and then
reduced in proportion of the book value of the non-current assets applicable to "Accounting Standard for Business
Enterprises No. 42 - Non-current Assets Held for Sale, Disposal Group and Discontinued Operations (hereinafter
referred to as "held for sale accounting principle") measurement requirements. The Company shall recognize a
gain during the period for any subsequent increase in fair value less costs to sell of an asset, but not in excess of
the cumulative impairment loss that has been recognized after the reclassification to non-current assets held for
sale. The book value of assets in the disposal group is increased proportionately according to the proportion of the
book value of each non-current asset except for goodwill. Impairment loss recognized before the reclassification
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to non-current assets held for sell shall not be recovered.
Non-current asset or non-current asset in the disposal group classified as held for sale are not subject to
depreciation or amortization. The interest and other expenses on liabilities held in the disposal group for sale are
continuously recognized.
Non-current assets or disposal group that no longer meet the conditions of non-current asset held for sell
shall be removed from the category, and shall be measured at the lower of the following: (a) The carrying amount
before classification as held for sale after adjustment of depreciation, amortization or impairment that should be
recognized if it is not classified as non-current assets held for sell; (b) recoverable amount.
14. Long-term equity investments
Long-term equity investments in this section refer to the long-term investment through which the Company
has control, joint control, or material influence on the investee. Long-term equity investments through which the
Company does not have control, joint control or material influence on the investee shall be recognized as
available-for-sale financial assets or financial assets measured by fair value with changes in fair value recognized
in profit or loss. See 10 for details.
Joint control is the contractually agreed sharing of control over economic activity and exists when the
strategic financial and operating decisions relating to the activity require the unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy decisions of
the investee but is not control or joint control over those policies.
（1）Determination of Investment cost
Long-term equity investment acquired through business combination under common control are measured at
the acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller's
consolidated financial statements. The difference between the initial cost and cash paid, non-monetary assets
transferred, and liabilities assumed by is adjusted to capital reserves, and to retained earnings if capital reserves
are insufficient. If the consideration is paid by issuing equity instruments, the initial cost is measured at the
acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller's
consolidated financial statements, with the face value of the equity instruments issued recognized as share capital
and the difference between the initial cost and the face value of the equity instruments issued adjusted to capital
reserves, and to retained earnings if capital reserves is insufficient. For business combination involving entities
under common control achieved through multiple transactions (acquisition in stages), the multiple agreements are
assessed to determine whether they should be viewed as a lump-sum purchase. Where multiple agreements of an
acquisition in stages are viewed as a lump-sum purchase, the transactions are viewed as one transaction that
acquires the control power. Where multiple agreements of an acquisition fail the conditions of a lump-sum
purchase, long-term equity investment acquired through business combination under common control are
measured at the acquirer's share of the combination date book value of the acquiree's net equity in the ultimate
controller's consolidated financial statements. The difference between the initial cost, and the book value of the
long-term equity investment before combination date and considerations paid to acquire new shares on the
combination date, is adjusted to capital reserves, and to retained earnings if capital reserves are insufficient.
Long-term equity investment acquired through business combination not under common control is measured
at combination cost on the combination date. The combination cost includes assets contributed by the purchaser,
liabilities incurred or assumed by, and fair value of the equity instruments issued by the acquirer. For business
combination involving entities not under common control achieved through multiple transactions (acquisition in
stages), the multiple agreements are assessed to determine whether they should be viewed as a lump-sum purchase.
Where multiple agreements of an acquisition in stages are viewed as a lump-sum purchase, the transactions are
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viewed as one transaction that acquires the control power. Where multiple agreements of an acquisition fail the
conditions of a lump-sum purchase, long-term equity investment acquired through business combination not under
common control are measured at the sum of the original book value of the equity investment on the investee and
the new investment cost, which is regarded as the new initial cost of the long-term investment when transferred to
cost method. If the original equity is measured by the equity method, not accounting treatment is applied to
relevant other comprehensive income temporarily.
The audit, legal services, valuation, and other directly associated administrative expenses incurred by the
acquirer are recognized in profit or loss on the transaction dates.
Long-term equity investments acquired not through business combination are measured at cost onnitial
recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair value
of equity instrument issued, the contract price, the fair value or book value of the assets given away in the case of
non-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost of
acquisition of a long-term equity investment acquired not through business combination also includes all directly
associated expenses, applicable taxes and fees, and other necessary expenses. When the Company increase
investment to have material influence or joint control, but not control over the investee, long-term investments are
measured at the sum of the fair value of initial equity investment and cost of new investment as defined in
CAS22-Recognition and Measurement of Financial Assets.
（2）Subsequent measurement and recognition and measurement of gain or loss
Where a long-term equity investment gives the Company either joint control or significant influence over
the respective investee, the investment is subsequently measured using the equity method. Where a long-term
equity investment gives the Company control over the respective investee, the investment is subsequently
measured at cost.
① Long-term equity investments measured at cost
A long-term equity investment is measured at the cost of investment, excluding declared cash dividends or
profit pending distribution included in the consideration paid. Investment income for the relevant period from a
long-term equity investment measured at cost is recognized as the Company's share of the cash dividends or profit
declared for distribution by the investee.
② Long-term equity investments measured using the equity method
When the cost of a long-term equity investment measured using the equity method on initial recognition
exceeds the Company's share of the fair value of the respective investee's net identifiable assets, no adjustment is
made to the cost of the investment for the excess. When the Company's share of the fair value of an investee's net
identifiable assets exceeds the cost of the respective long-term equity investment measured using the equity
method on initial recognition, adjustment is made to the cost of the investment for the difference and the
difference is carried to profit or loss for the period during which the investment is recognized.
Investment income or loss and other comprehensive income for the relevant period from a long-term equity
investment measured using the equity method is measured at the Company's share of the net profit or loss and
other comprehensive income of the respective investee for the relevant period, and the book value of long-term
equity investments is adjusted accordingly. If the investee declares profit distribution or cash dividends, long-term
equity investments are reduced by the Company’s share of declared profit distribution or cash dividends in the
investee. Long-term equity investments will be adjusted, and capital reserves are recognized with variations other
than net profit or loss, other comprehensive income, and profit distribution. When computing the Company's share
of the net profit or loss of the investee for the relevant period, net profit or loss of the investee for the relevant
period is adjusted, if necessary, for the fair value of the investee's identifiable assets and identifiable liabilities on
acquisition and the Company's accounting policies and accounting period. Investment income and other
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comprehensive income is recognized accordingly. The computation of the Company's share of the net profit or
loss of the investee for the relevant period also eliminates unrealized profit and loss arising from transactions
between the Company and the investee (a joint venture or associate, whichever is applicable) and contributing or
selling assets to the investee which forms an operation, to the extent of the Company's share calculated by the
Company's shareholding in the investee for the relevant period, except for the unrealized loss resulted from
impairment of transferred assets. When contributing assets to the joint venture or associate by the Company forms
an operation, and the investor acquires the long-term equity investment without control, long-term equity
investments are measured at fair value of the contributed operations, with the difference between initial
investment cost and book value of the contributed operation fully recognized in profit or loss for the period. When
selling assets to the joint venture or associate by the Company forms an operation, the difference between
considerations received and book value of the operation is fully recognized in profit and loss for the period. When
purchasing assets from the joint venture or associate by the Company belongs to an operation, income and losses
are fully recognized as specified in CAS20-Business Combination. When the Company's share of an investee's net
loss exceeds the sum of the carrying amount of the respective long-term equity investment measured using the
equity method and other investments in the investee, the carrying amount of the long-term equity investment and
other investments in the investee is reduced to zero. If the Company is obliged to share loss of the investee after
its long-term equity investment and other investments have been reduced to zero, an investment loss and provision
is recognized to the extent of the estimated obligation. If the investee reports profits in subsequent periods, the
Company only recognizes its share of profit after its share of profit equals the share of loss not recognized.
For long-term equity investments in associates and joint ventures which had been held by the Company
before its first time adoption of new accounting standards, where the initial investment cost of a long-term equity
investment exceeds the Company’s share in the investee’s net assets at the time of acquisition, the excess is
amortized and is recognized in profit or loss on a straight-line basis over the original remaining life.
③ Acquisition of minority interests
If minority interests in an investee is acquired by the Company, during the Company's preparation of the
consolidated financial statements, the difference between the Company's cumulative share of the investees net
assets calculated on the basis of the new shareholding in the investee from the acquisition date (or combination
date) and the Company's investment in the investee following the minority interest acquisition is adjusted to
capital reserves, and to retained earnings if capital reserves is insufficient.
④Disposal of long-term equity investments
On the consolidated financial statements, when partly disposal of a long-term equity investment in a
subsidiary which does not cause loss of control over the subsidiary, the difference between the consideration for
disposal and the net identifiable asset given away proportionate to the disposed shares in the subsidiary is
recognized in equity; partly disposal of a long-term equity investment in a subsidiary which causes loss of control
over the subsidiary is accounted for in accordance with Note 5.6.2.
The difference between the consideration for disposal of long-term equity investments and the carrying
amount of the long-term equity investments disposed of is recognized in profit or loss for the period during which
the investments are disposed of.
When a long-term equity investment measured using the equity method is disposed, and the residual equity
after disposal is still measured using equity method, the respective cumulative other comprehensive income
recognized in equity proportionate to the disposed of investment shall adopt the same accounting treatment as the
investee disposes of relevant assets or liabilities directly. Movement in investee's equity other than changes in net
profit or loss, other comprehensive income, and profit distribution is recognized in profit or loss proportionally.
When a long-term equity investment measured using the cost method is disposed and the residual equity
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after disposal is still measured using cost method, other comprehensive income, which is recognized by equity
method or recognition and measurement applicable to financial instruments prior to the Company's acquisition of
control over the investee, shall adopt the same accounting treatment as the investee disposes relevant assets or
liabilities directly on the date of loss of control, and profit or loss is recognized proportionally. Movement in
investee's equity other than changes in net profit or loss, other comprehensive income, and profit distribution is
recognized in profit or loss proportionally. Where the Company's control over an investee is lost due to partial
disposal of investment in the investee and the Company continues to have significant influence over the investee
after the partial disposal, the investment is measured by equity method in the Company's separate financial
statements; where the Company's control over an investee is lost due to partial disposal of investment in the
investee and the Company ceases to have significant influence over the investee after the partial disposal, the
investment is measured in accordance with the recognition and measurement principles applicable to financial
instruments in the Company's separate financial statements and the difference between the fair value and book
value of the remaining investment at the date of loss of control is recognized in profit or loss. Cumulative other
comprehensive income relevant to the investment, which is recognized by equity method or recognition and
measurement principles applicable to financial instruments prior to the Company's acquisition of control over the
investee, shall adopt the same accounting treatment as the investee disposes relevant assets or liabilities directly
on the date of loss of control, The investee's equity movement other than changes in net profit or loss, other
comprehensive income and profit distribution, as a result of accounting by equity method, is recognized in profit
or loss when control is lost. Where the remaining investment is measured by equity method, the afore-mentioned
other comprehensive income and other equity movement are recognized in profit or loss proportionate to the
disposal; Where the remaining investment is measured in accordance with the recognition and measurement
principles applicable to financial instruments, the afore-mentioned other comprehensive income and other equity
movement are fully recognized in profit or loss.
Where the Company's joint control or significant influence over an investee is lost due to partial disposal of
investment in the investee, the remaining investment in the investee is measured in accordance with the
recognition and measurement principles applicable to financial instruments, the difference between the fair value
and the book value of the remaining investment at the date of loss of joint control or significant influence is
recognized in profit or loss. Cumulative other comprehensive income relevant to the investment, which is
recognized by equity method or recognition and measurement principles applicable to financial instruments prior
to the Company's acquisition of control over the investee, shall adopt the same accounting treatment as the
investee disposes relevant assets or liabilities directly on the date of loss of control, The investee's equity
movement other than changes in net profit or loss, other comprehensive income and profit distribution, as a result
of accounting by equity method, is recognized in profit or loss when control is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple disposals
can be viewed as a lump-sum transaction, the multiple disposals are accounted for one single transaction which
results in the Company's loss of control over the investee. Difference between the consideration received and the
book value of the investment disposed at each time of disposal is recognized in other comprehensive income and
reclassified in full to profit or loss at the period when control over the investee is lost.
15..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
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includes leased or ready to transfer after capital appreciation land use rights and leased buildings. Investment
property is initially measured at cost. Subsequent expenditures related to an investment real estate are likely to
flow about the economic benefits of the asset, and its cost can be measured reliably, is included in the cost of
investment real estate. Other subsequent expenditure in the profit or loss when it incurred.
The Group uses the cost model for subsequent measurement of investment property, and in accordance with
the depreciation or amortization of buildings or land use rights policy.
Investment property impairment test method and impairment accrual method described in Note 20
“Non-current and non-financial assets impairment."
Occupied real estate for investment property or investment property is transferred to the owner-occupied real
estate or stock conversion as the recorded value after the conversion, according to the book value before the
conversion.
Investment property change into the Owner-occupied real estate, since the change of date for the investment
property, is transferred to fixed assets or intangible assets. Change the owner-occupied property held to earn
rentals or for capital appreciation, since the change of date, the fixed assets or intangible assets to investment
property. Conversion occurs when converted to investment property using the cost model, as the book value
before the conversion of the recorded value after the conversion; converted to investment property measured at
fair value model, the fair value of the conversion date as the recorded value after conversion.
Derecognized, when the investment property is disposed of or permanently withdrawn from use and the
expected economic benefits, cannot be obtained from the disposal of investment property. Proceeds on disposal of
investment property is sold, transferred, retired or damaged through profit or loss after deducting the book value
and related taxes.
16.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or
management, and operation with service life of more than one year.
The fixed assets are recognized only after relevant economic interests probably flow into the Company and
costs are reliably measured. The initial calculation will be made for the fixed assets based on the cost and the
influence of expected disposal cost.
Expected useful Residual Annual depreciation
Type Depreciation method
life(Year) rate（%） rate(%)
Highway and bridge：
Including：Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to Sanbao
Working flow basis 40 years 0%
Section
Fokai Expressway-Sanbao to Shuikou
Working flow basis 30 years 0%
Section
Jingzhu Expressway Guangzhu Section Working flow basis 30 years 0%
House Building The straight-line method 20-30 years 3%-10% 3%-4.85%
Machine Equipment The straight-line method 10 years 3%-10% 9%-9.7%
Transportation Equipment The straight-line method 5-8 years 3%-10% 11.25%-19.4%
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Electric Equipment and other The straight-line method 5-15 years 3%-10% 6%-19.4%
(2) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset Impairment
Reserves
For the impairment test method and the impairment provision withdrawing method of the Fixed assets,
please refer to “Long-term Assets Impairment in Article 20 of Important Accounting Policies and Accounting
Estimates in Notes 5 of Financial Statements”.
（3）Recognition and measurement of fixed assets held under financial lease
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an
asset. The title may or may not eventually be transferred. Fixed assets that are held under finance leases shall be
depreciated by applying the same policy as that for the fixed assets owned by the Company. If it can be reasonably
determined that the ownership of the leased assets can be obtained at the end of the lease period, the leased assets
are depreciated over their useful lives; otherwise, the leased assets are depreciated over the shorter of the lease
terms and the useful lives of the leased assets.
（4） Other notes
A fixed asset is recognized only when the economic benefits associated with the asset will probably flow to
the Company and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset
that meets the recognition criteria shall be included in the cost of the fixed asset, and the carrying amount of the
component of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall be
recognized in profit or loss in the period in which they are incurred.
The revenue from selling or transferring or disposing of a fixed asset is booked into profit and loss after
deduction of carrying value and related tax.
The Company conducts a review of useful life, expected net realizable value and depreciation methods of
the fixed asset at least on an annual base. Any change is regarded as a change in accounting estimates.
17.Construction-in process
The cost of construction in progress is measured at the actual expenditure incurred, including construction
expenditure and capitalization of borrowing costs and other applicable costs incurred prior to the completion. An
item of construction in progress is reclassified to fixed asset upon completion.
See Note 5.20 for details of assessment for impairment of construction in progress and impairment
allowance for construction in progress.
18.Borrowing cost
Borrowing costs include interests on loans, amortization of discount or premium, ancillary expenses, and
foreign exchange difference on loans denominated in foreign currencies. Borrowing costs directly associated with
the acquisition of construction of a qualifying asset are eligible for capitalization. Capitalization starts when
expenditure on the qualifying asset is incurred, borrowing costs are incurred, or production or construction of the
qualifying asset for its intended use or sales is started, whichever is later. Capitalization stops when the qualifying
assets reach the condition of its intended use or sales. All other borrowing costs are recognized in profit or loss for
the period during which they are incurred.
When a loan is taken out specifically for the construction of a particular qualifying asset, the interest
expense capitalized for a particular period is the residual amount after deducting interest income from unused
facilities for the period and/or income from temporary investment of the unused facilities for the period from the
interest expense incurred for the period. Borrowing costs on general purpose financing are calculated by
multiplying the weighted average of the excess of cumulative capital expenditure over the designated financing
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facilities with the capitalization rate of general purpose financing. The capitalisation rate of general purpose
financing is calculated as the weighted average of the interest rates of general purpose financing.
Foreign exchange difference on designated financing denominated in foreign currencies incurred during the
capitalization period is wholly capitalized. Foreign exchange difference on general purpose financing
denominated in foreign currencies is recognized in profit or loss for the period during which it is incurred.
A qualifying asset is an item of fixed assets, investment property, inventories, etc. which requires a
substantial period of time for the construction or production for its intended use of sales.
If the construction or production of a qualifying asset stops for a period longer than three months,
capitalization of borrowing costs is suspended until the construction or production is resumed.
See Note 5.20 for details of assessment for impairment of construction in progress and impairment
allowance for construction in progress.
19.Intangible assets
(1) Pricing method, useful life and impairment test
An intangible asset is an identifiable non-monetary asset without a physical form which is owned or control
by the Company. Intangible assets are measured at cost on initial recognition. If it is probable that economic
benefits associated with expenditure directly associated with an item of intangible assets will flow to the Company
and the cost of the expenditure can be reliably measured, the expenditure is measured as part of the intangible
asset's initial cost; all other expenditure is recognized in profit or loss for the period during which it is incurred.
Land use rights acquired are generally recognized as intangible assets. In the case of a self-constructed
building, the costs of acquiring the respective land use right(s) and the costs of building construction are
separately recognized and measured as intangible assets and fixed assets respectively. In the case of a purchased
building, the costs of acquisition are allocated to land useright(s) and building; if the reasonable allocation is
impossible, the costs of acquisition as a whole are recognized and measured as fixed assets. For an item of
intangible assets which is with a finite useful life, the residual amount after deducting its estimated residual value
and previously recognized impairment from its cost is amortized over its estimated remaining useful life using the
straight-line method starting from the month in which it reaches the conditions of its intended use of sales.
Intangible assets with infinite useful life are not amortized.
Useful lives of intangible assets are a review on each balance sheet date. If circumstances indicate that there
is a change in the useful life of an item of intangible assets with a finite useful life, a change in accounting
estimates is carried out. If circumstances indicate that the useful life of an item of intangible assets with infinite
useful life becomes finite, the useful life of the intangible asset is estimated, and the intangible asset is amortized
accordingly.
See Note 5.20 for details of assessment for impairment of intangible assets and impairment allowance for
intangible assets.
（2） Research and development expenditure
A research and development project is divided into research stage and development stage. Expenditure
incurred during the research stage is recognized in profit or loss for the period during which it is incurred.
Expenditure incurred during the development stage is recognized as intangible assets if all of the following
conditions are satisfied:
a. it is technically feasible to complete the intangible asset so that it can be used or sold;
and b. the Company has clear intention to complete the intangible asset and to use it or sell it;
and c. it is evidential that the intangible asset will generate economic benefits either by selling the
intangible asset itself or the goods produced by the intangible asset or by using it internally;
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and d. there are sufficient technical, financial and other resources to complete the intangible asset and the
Company is able to use it or sell it,
and e. expenditure incurred in the development stage of the intangible asset can be reliably measured.
Where a research and development project cannot be separated into the research stage and development
stage, all expenditure incurred for the project is recognized in profit or loss for the period during which it is
incurred.
（3） Provision for the depreciation of value of the intangible assets
For the impairment test method and the impairment provision withdrawing method of the Intangible assets,
please refer to “ Long-term Assets Impairment of Important Accounting Policies and Accounting Estimates in
Notes V(20)”.
20.Impairment of Long-term assets
Non-current non-monetary assets, such as fixed assets, construction in progress, intangible assets with finite
useful life, investment property measured by cost, and long-term equity investments in subsidiaries, joint ventures,
and associates, are assessed for impairment on each balance sheet date. If circumstances on a balance-sheet date
indicate that a non-current non-monetary asset is impaired, the recoverable amount of the asset is estimated. The
recoverable amounts of goodwill, intangible assets with infinite useful live and intangible assets which have not
yet reached the conditions of their intended use or sales are estimated at least once a year regardless of whether
there is an indication of impairment.
If the carrying amount of a non-current non-monetary asset exceeds its estimated recoverable amount, the
excess of the carrying amount over the estimated recoverable amount is recognized as impairment allowance, and
an impairment loss of the same amount is recognized. The estimated recoverable amount of an asset is the higher
of the residual amount after deducting disposal expense of the asset from its fair value and the present value of its
future cash flows. Where there is a sales contract for an asset, and the contract is entered into for an arm's length
transaction, the fair value of the asset is the contract price; where there isn't a sales contract for an asset, but there
is an active market for it, the fair value of the asset is price offered by the buyer; where there is neither a sales
contract nor an active market for an asset, the fair value of the asset is the best estimate based on all available
information. The disposal cost of an asset includes legal expenses, applicable taxes and fees and transportation
costs directly associated with the asset's disposal and all direct costs necessary to bring the asset to its sellable
condition. The present value of an asset's future cash flows is calculated by multiplying the cash flows arising
from the continual use of the asset and its disposal at an appropriate discount rate. An impairment allowance is
generally calculated on the basis of individual assets. If it is not possible to estimate the recoverable amount of an
individual asset, the recoverable amount of a cash-generating unit to which the asset belongs is estimated. A
cash-generating unit is the smallest combination of assets that are capable of cash flow generation. Goodwill
separately presented on the (consolidated) financial statements is allocated to cash-generating units or groups of
units that are expected to benefit from the synergy of business combination for impairment testing. Where the
recoverable amount a cash-generating unit (or group of units) is lower than its carrying amount, an impairment
loss is recognized.
The impairment loss is firstly allocated to the goodwill allocated to the unit (or group of units) and then to
individual assets pro rata on the basis of the carrying amount of each asset in the unit (or group of units) The
impairment loss recognized in accordance with this section is irreversible in subsequent periods.
21. Long-term amortizable expenses
An item of deferred charges is an expense incurred which brings economic benefits to the Company for a
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period exceeding one year starting from the transaction date. An item of deferred charges is amortized over its
estimated useful life using the straight-line method.
22. Employee Benefits
（1）Accounting methods of short-term benefits
Short-term employee benefits include wages, bonuses, allowances and subsidies, welfare, health insurance,
maternity insurance, work injury insurance, housing funds, labor union funds, employee education funds,
non-monetary benefits etc. Short-term employee benefits are recognized as liabilities and profit or loss account or
the costs associated with the asset during the accounting period when employees actually provide services. The
non -monetary benefits are measured at fair value.
(2) Accounting methods for post-employment benefits Post-employment benefits include defined
contribution plans and defined benefit plans. Defined contribution plan which includes the basic pension,
unemployment insurance and annuities shall be recognized as cost of related assets or profit or loss.
(3) Accounting Treatment Method of Demission Welfare
When the Company terminates the labor relationship with employees prior to the employment contracts, or
encourages employees to accept voluntary redundancy compensation proposals in this company, a provision shall
be recognized for the compensation arising from the termination of employment relationship with employees at
the time when the Company cannot unilaterally withdraw layoff proposal termination benefits provided due to
termination of employment or the Company ensures the costs related to the payment for termination benefits
related to the restructuring, which one is early to confirm employee benefits liabilities, and recorded as profit or
loss. However, if termination benefits cannot be fully paid within twelve months of the reporting date the liability
shall be processed in accordance with other long-term employee benefits.
（4）Other long-term employee benefits
Other long-term employee benefits provided by the Company to employees that are in line with defined
contribution plans shall adopt the accounting treatment in accordance with defined contribution plans, otherwise
the accounting treatment of defined benefit plans.
23.Estimated liabilities
A contingent liability is recognized as provision if all or the following conditions are satisfied:
a. it is a present obligation assumed by the Company;
and b. it is probable that the fulfillment of the obligation will cause economic benefit flows from the
Company;
and c. the amount of the obligation can be reliably measured.
A provision is measured on a balance-sheet date as the best estimate of the amount that is required for the
fulfillment of the present obligation after considering of the risks and uncertainty associated with the respective
contingent events and the time value of money.
If the amount required for settlement of a provision is wholly or partly reimbursed by a third party, the
reimbursement is recognized separately as an asset to the extent of the carrying amount of the provision if it is
probable that the reimbursement becomes receivable.
(1) Loss contract
Loss contract is a contract in which the cost of performing contractual obligations inevitably exceeds the
expected economic benefits. Where the pending contract becomes a loss contract, and the obligations arising from
the loss contract meet the recognition conditions of the above-mentioned expected liabilities, the part of the
expected loss of the contract exceeding the recognized impairment loss of the underlying asset of the contract (if
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any) shall be recognized as the expected liability.
(2) Restructuring obligations
For a restructuring plan with detailed, formal and public announcement, the amount of the estimated
liabilities is determined according to the direct expenditure related to the restructuring, subject to the above
conditions for confirmation of the estimated liabilities.
24. Revenues
Whether implemented new revenue guidelines?
□ Yes √ No
The company’s incomes mainly include the toll service revenues and the services provision.
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
(2) Provision of labor service
Incomes from labors services that start and complete within the same fiscal year shall be recognized when
the services are finished. If the beginning and completion of labor services belong to different fiscal years, the
Company shall, on the balance sheet date, recognize the related labor income by the percentage of completion
method, provided that the result of the labor service transaction can be reliably estimated. When the following
conditions can be satisfied, the results of the transaction can be reliably estimated: ① the total income and total
cost of labor services can be reliably measured; ② the economic benefits related to the transaction can flow into
the enterprise; ③ the degree of completion of labor services can be reliably determined.
The income from provision of labor services shall be determined as follows in case the result of the provided
labor service transaction cannot be reliably estimated on the date of the Balance Sheet:
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.
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.
If a contract entered into by the Company and a counterparty involves both sales of goods and rendering of
services and revenue arising from goods sold and services rendered can be distinguished, revenue from sales of
goods and rendering of services are separately accounted for; if, however, revenue arising from goods sold and
services rendered cannot be distinguished or can be distinguished but cannot be separately measured, all revenue
is accounted for as revenue arising from sales of goods.
25. Government Grants
A government grant is a transfer of monetary and non-monetary assets from the government to the Company
for no consideration, excluding resources transferred to the Company by the government in the capacity of the
shareholder. Government grants include grants related to assets and grants related to income.
Government grants obtained by the Company which is relevant to construction or acquisition of long-term
assets are classified as asset-related government grants; all other government grants are classified as
revenue-related government grants. For government grants without a specified beneficiary, the Company performs
classification in accordance with the following criteria.
a. Where a grant is obtained for a specified project, the grant is spat into asset-related and revenue related
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portions proportionate to the project's investment to expense ratio; the classification is reviewed on each balance
sheet date and revised if necessary.
b. Where a grant is obtained for general purpose, the grant as a whole is classified as a revenue-related
government grant. If a government grant is in the form of monetary assets, it is measured at the amount received
or receivable.
If a government grant is in the form of non-monetary assets, it is measured by the fair value of the assets; if
the fair value of the assets granted cannot be reliably measured, the grant is measured by the nominal value of the
assets and is recognized immediately in profit or loss for the relevant period.
In general, the Company recognizes a government grant when it is actually received, and measures at the
amount actually received. However, a government grant may be recognized as receivable if it is objectively
evidential on the reporting date that conditions for the grant receipt are satisfied and thatthe grant is receivable. A
government grant is recognized as receivable if all following conditions are satisfied:
a. the amount of the grant is expressly stipulated in an official publication by the authorized governmental
agency or can be reasonably estimated in accordance with fiscal pronouncement issued by the authorized
governmental agency, and the estimate is not subject to significant uncertainty;
b. the grant is officially disclosed as part of publicly disclosed fiscal subsidized projects by the local fiscal
government bodies in accordance with the Government Information Disclosure Directives and is managed in
accordance with the fiscal plan published and the management of the grant if not entity-specific, i.e., every
eligible entity is entitled to apply;
c. the term for payment is expressly stipulated in the official pronouncement, and the payment is backed by
fiscal planning so that it is reasonable to expect receipt within the term of the payment;
and d. other conditions (inapplicable) need to be satisfied taking into account the Company's circumstances.
Grants related to assets are recognized as deferred income and amortized over the useful life of the relevant
assets using the straight-line method. A grant related to income is recognized as deferred income if it is related to
expenses or loss to be incurred in the future and is carried to profit or loss for the period during which the relevant
expenses or loss are recognized; it is recognized in profit or loss for the period during which it is received or
becomes receivable if it is related to expenses or loss already incurred. When assets are sold, transferred, disposed
or scraped before the end of useful life, the remaining differed income will be transferred to profit or loss in the
current period of asset disposal.
The government grants related to the daily activities of the Company are included in other income or
offsetting the related costs according to the substance of the economic business. The government grants unrelated
to the daily activities are included in the non-operating income and expenses. Where a recognized grant becomes
repayable, the amount repayable is firstly charged to the remaining deferred income (if any); the remaining
amount after charge to deferred income is recognized in profit or loss for the period during which it becomes
repayable
26.Deferred income tax assets and deferred income tax liabilities
（1）Current income tax
The current income tax liability (asset) on a balance-sheet date is measured at the amount of current income
tax payable (receivable) computed in accordance with the relevant tax law. Current income tax expense is
computed on the basis of taxable profit (loss) which is the amount after the adjustment of the relevant accounting
profit (loss) in accordance with the relevant tax law.
（2）Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are recognized on an accrual basis for the temporary
2019 Annual Report
difference between the carrying amounts of assets and liabilities and their tax bases and the temporary difference
arising from the difference in recognition criteria for assets and liabilities between CAS and relevant tax
provisions.
No deferred tax liability is recognized for the temporary taxable difference arising from the initial
recognition of goodwill and the initial recognition of assets and liabilities acquired or assumed resulting from
transactions which are not business combination, and which do not have impact on both accounting profit and
taxable profit (deductible tax loss) at the time of their occurrence. Similarly, the deferred tax liability is not
recognized for temporary taxable difference associated with investments in subsidiaries, associates, and joint
ventures if the Company can control the reverse of the temporary difference and it is probable that the temporary
difference is not expected to reverse in the foreseeable future. Except for the circumstances described here above,
the deferred tax liability is recognized for all other taxable temporary difference.
No deferred tax asset is recognized for the temporary deductible difference arising from the initial
recognition of assets and liabilities acquired or assumed resulting from transactions which are not a business
combination, and which do not have an impact on both accounting profit and taxable profit (deductible tax loss) at
the time of their occurrence. Similarly, deferred tax asset is not recognized for temporary deductible difference
associated with investments in subsidiaries, associates, and joint ventures if the Company can control the reverse
of the temporary difference and it is probable that the temporary difference is not expected to reverse in the
foreseeable future. Except for the circumstances described here above, deferred tax asset is recognized for all
other deductible temporary difference to the extent that it is probable that taxable profit will be available against
which the temporary deductible difference can be utilized.
Deferred tax asset is recognized for deductible tax loss and tax credit carrying forward to the extent that it is
probable that taxable profit will be available against which the deductible tax loss and tax credit carryforward can
be utilized.
Deferred tax assets and deferred tax liabilities are measured on a balance-sheet date on the basis of tax rates
expected to be applicable in accordance with relevant tax law at the time when the relevant assets are recovered,
or relevant liabilities settled.
The carrying amount of deferred tax assets is reviewed on each balance sheet date. If it is probable that
insufficient taxable profit is available to utilize the deferred tax assets, the carrying amount of deferred tax assets
is reduced. When it is probable that sufficient taxable profit becomes available after the carrying amount of
deferred tax assets has been reduced, the reduction is reversed.
（3） Income tax expenses
Income tax expenses include current income tax expenses and deferred income tax expenses.
All current income tax expenses (credit) and deferred income tax expenses (gains) are recognized in profit
or loss for the relevant period except for a. current income tax and deferred income tax on transactions and events
which are accounted for in other comprehensive income or directly in equity, which are included in other
comprehensive income or directly recognized in equity depending on the treatment of its underlying transactions
and events, and b. deferred income tax arising from business combination, which is accounted for as an
adjustment to the carrying amount of the respective goodwill.
（4）Offsetting of income tax
A current income tax liability and current income tax asset are presented on (consolidated) financial
statements after netting only if the Company is permitted by law to settle the asset and liability net in cash and is
planning to do so or to recover the asset and settle the liability simultaneously.
A deferred tax asset and deferred tax liability are presented on (consolidated) financial statements after
netting only if all of the following conditions are satisfied: the Company is permitted by law to settle the current
2019 Annual Report
asset and liability related to an income tax net in cash; and the deferred tax asset and deferred tax liability arising
from that income tax is levied by the same tax authority on the same entity or on different entities but the relevant
entities are planning to settle the underlying income tax net in cash or simultaneously recover the relevant assets
and settle the relevant liabilities during each future period during which significant deferred tax assets and
deferred tax liabilities are reversed.
27.Lease
(1) Accounting methods for operating leases
The Group records the operation lease business as a lessee
Rental expenditures for operating leases are included in the relevant asset costs or current profits and losses
on a straight-line basis in each period of the lease term. Initial direct expenses are included in current profits and
losses. Contingent rentals are included in current profits and losses when they actually occur.
The Group records the operation lease business as a lessor
Rental income from operating leases is recognized as current profits and losses on a straight-line basis during
each period of the lease term. The initial direct expenses with large amount shall be capitalized when incurred, and
shall be included in the current profits and losses during the whole lease period on the same basis as the
recognized rental income; Other initial direct expenses with smaller amount shall be included in current profits
and losses when incurred. Contingent rentals are included in current profits and losses when they actually occur.
(2) Accounting methods for financial leasing
The Group records the financial lease business as a lessee
On the start date of the lease period, the lower of the fair value of the leased asset and the present value of
the minimum lease payment on the lease start date is taken as the recorded value of the leased asset, the minimum
lease payment is taken as the recorded value of the long-term payables, and the difference is taken as the
unrecognized financing expense. In addition, the initial direct expenses that can be attributed to the lease items
incurred during the lease negotiation and signing of the lease contract are also included in the value of the leased
assets. The balance of the minimum lease payment after deducting unrecognized financing expenses is listed as
long-term liabilities and long-term liabilities due within one year respectively.
Unrecognized financing expenses shall be calculated and recognized by the effective interest rate method
during the lease period. Contingent rentals are included in current profits and losses when they actually occur.
The Group records the financial lease business as a lessor
On the starting date of the lease period, the sum of the minimum lease receipts and the initial direct expenses
on the lease start date shall be taken as the entry value of the finance lease receivables, and the unsecured residual
value shall be recorded at the same time; The difference between the sum of the minimum lease receipts, initial
direct expenses and unsecured residual value and its present value shall be recognized as unrealized financing
income. The balance of finance lease receivables after deducting unrealized finance income is listed as long-term
creditor's rights and long-term creditor's rights due within one year respectively.
Unrealized financing income is calculated and recognized by the effective interest rate method during the
lease period. Contingent rentals are included in current profits and losses when they actually occur.
2019 Annual Report
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □ Not applicable
Contents and causes for changes of accounting Approval
Remarks
policy procedures
The Accounting Standards for Enterprises
No. 22 - Recognition and Measurement of Through the
Under the new financial instrument standards, based on the expected
Financial Instruments (Revised in 2017), the resolution of the
credit loss, the Company makes provision for impairment of financial assets
Accounting Standards for Enterprises No. 23 - 25th (provisional)
measured by amortized cost, investment in debt instruments measured by fair
Transfer of Financial Assets (Revised in 2017), meeting of the
value and its changes included in other comprehensive gains, lease receivables,
and the Accounting Standards for Enterprises No. eighth board of
contractual assets and financial guarantee contracts, and confirms the loss of
24 - Hedge Accounting Standards for Enterprises directors of the
credit impairment.
(Revised in 2017) (Accounting [2017] No. 9) Company on April
The Company retrospectively applies the new financial instrument
promulgated by the Ministry of Finance on 26, 2019, the
standards, but for classification and measurement (including impairment)
March 31, 2017, as well as the Accounting Company began
involving the inconsistency between the previous comparative financial
Standards for Enterprises No. 37 - Financial to implement the
statement data and the new financial instrument standards, the Company
Instruments Presentation (Revised in 2017) aforementioned
chooses not to repeat. Therefore, for the cumulative impact of the first
(Accounting [2017] No. 14) (collectively referred new financial
implementation of this standard, the Company adjusted the retained earnings or
to as "New Financial Instruments Standards") instrument
other comprehensive earnings at the beginning of 2019 and the amount of other
issued on May 2, 2017 requires domestic listed guidelines on
related items in the financial statements, which were not restated in the
enterprises to implement the new standards from January 1, 2019.
financial statements of 2018.
January 1, 2019. Guidelines for financial
instruments.
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
2019 Annual Report
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 1,668,791,594.53
financial assets and included in other other equity and included in other
comprehensive instruments comprehensive
benefits (equity earnings
instruments)
long-term equity Cost method/equity 3,145,644,970.07 long-term equity Cost method/equity 3,146,092,065.25
investments method investments method
b. Impact on the financial statement
December 31, 2018 (before change) January 1, 2019 (after the change)
Items Measurement Book value Items Measurement Book value
category category
Available-for-sales Measured at fair 1,668,791,594.53 Investment in other Measured at fair 1,668,791,594.53
financial assets value and included in equity instruments value and included
other comprehensive in other
benefits (equity comprehensive
instruments) earnings
long-term equity Cost method/equity 4,679,309,978.88 long-term equity Cost 4,679,757,074.06
investments method investments method/equity
method
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-measurement January 1,2019
(before change) Re-Class (after change)
Measured at fair value and included in
other comprehensive earnings:
Available-for-sale financial assets 1,668,791,594.53
(original guidelines)
Less transfer to other creditor's rights
investment
Less: transfer to other non-current
financial assets
Less: transfer to other equity 1,668,791,594.53
instruments
Balances shown in accordance with the
new financial instrument guidelines
Investment in other equity instruments 1,668,791,594.53
2019 Annual Report
Add: transfer from available-for-sale 1,668,791,594.53
financial assets (original criteria)
Re-measurement: re-measurement at
fair value
Balances shown in accordance with the 1,668,791,594.53
new financial instrument guidelines
b. Impact on the Company's financial statements
Items December 31, 2018 Re-Class Re-measurement January 1,2019
(before change) (after change)
Amortized cost
Other non-current assets (original criteria) 692,903,684.98
Less: transfer to creditor's rights 692,903,684.98
investment
Balances shown in accordance with the
new financial instrument guidelines
Creditor's rights investment 692,903,684.98
Add: transfer from other non-current 692,903,684.98
assets (original criteria)
Re-measurement: expected credit loss
preparation
Balances shown in accordance with the 692,903,684.98
new financial instrument guidelines
Measured at fair value and included in
other comprehensive earnings:
Available-for-sale financial assets 1,668,791,594.53
(original 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 1,668,791,594.53
Add ： transfer from available-for-sale 1,668,791,594.53
financial assets (original criteria)
Re-measurement: re-measurement at fair
value
Balances shown in accordance with the 1,668,791,594.53
new financial instrument guidelines
C. Financial assets impairment provision adjustment table on the first implementation date
2019 Annual Report
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
Provision for impairment of 37,020,000.00 -37,020,000.00
available-for-sale financial assets
Investment in other equity 37,020,000.00 37,020,000.00
instruments
b. Impact on the Company's financial 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 7,020,000.00 -7,020,000.00
available-for-sale financial assets
Investment in other equity 7,020,000.00 7,020,000.00
instruments
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 -9,749,843.30 10,196,938.48
investment
January 1, 2019 3,928,859,293.29 255,306,053.29
(1）Other accounting policy changes
In April and September 2019, the Ministry of Finance respectively issued the Notice on Revising and Issuing
the Format of General Enterprise Financial Statements for 2019 (CK [2019] No.6) and the Notice on Revising and
Issuing the Format of Consolidated Financial Statements (2019 Edition) (CK [2019] No.16), revising the format
of general enterprise financial statements and consolidated financial statements. The Group has prepared financial
statements in accordance with the format of general enterprise financial statements and consolidated financial
statements according to its requirements, and restated the comparative statements retroactively according to the
above presentation requirements.
A、Impact on consolidated statements
December 31, 2018 January 1,2019
Items Re-Class
(before change) (after change)
Other payables 191,254,464.84 -7,875,376.57 183,379,088.27
Including: interest payable 8,971,576.57 -8,971,576.57
2019 Annual Report
Non current liabilities due within one
2,498,480,000.00 7,875,376.57 2,506,355,376.57
year
B、Impact on the company's financial statements
December 31, 2018 January 1,2019
Items Re-Class
(before change) (after change)
Other receivables 9,323,782.66 -1,880,148.12 7,443,634.54
Including: interest receivable 1,880,148.12 -1,880,148.12
Non current assets due within one year 100,000,000.00 1,880,148.12 101,880,148.12
Other payables 142,457,135.79 -7,276,896.36 135,180,239.43
Including:interest payable 8,373,096.36 -8,373,096.36
Non current liabilities due within one year 2,327,180,000.00 7,276,896.36 2,334,456,896.36
(2）Change of accounting estimations
□ Applicable √ Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases from year 2019
√ Applicable □Not applicable
Consolidated balance sheet
In RMB
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Current asset：
Monetary fund 2,124,524,996.32 2,124,524,996.32
Settlement provision
Outgoing call loan
Transactional financial
assets
Financial assets
measured at fair value with
variations accounted into
current income account
2019 Annual Report
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Derivative financial
assets
Notes receivable
Account receivable 91,076,995.07 91,076,995.07
Financing of
receivables
Prepayments 1,912,943.40 1,912,943.40
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other account receivable 16,487,256.02 16,487,256.02
Including：Interest
receivable
Dividend receivable 1,205,472.90 1,205,472.90
Repurchasing of financial
assets
Inventories 81,017.91 81,017.91
Contract assets
Assets held for sales
Non-current asset due
51,745.32 51,745.32
within 1 year
Other current asset
Total of current assets 2,234,134,954.04 2,234,134,954.04
Non-current assets：
Loans and payment on
other’s behalf disbursed
Debt investment
Available for sale of
1,668,791,594.53 -1,668,791,594.53
financial assets
Other investment on
bonds
Expired investment in
possess
Long-term receivable
Long term share equity
3,145,644,970.07 3,146,092,065.25 447,095.18
investment
2019 Annual Report
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Other equity instruments
1,668,791,594.53 1,668,791,594.53
investment
Other non-current financial
assets
Property investment 3,579,007.54 3,579,007.54
Fixed assets 7,600,046,319.91 7,600,046,319.91
Construction in progress 1,089,473,425.63 1,089,473,425.63
Production physical
assets
Oil & gas assets
Use right assets
Intangible assets 5,739,020.48 5,739,020.48
Development expenses
Goodwill
Long-germ expenses to be
1,221,781.88 1,221,781.88
amortized
Deferred income tax
447,485,034.79 447,485,034.79
asset
Other non-current asset 99,794,665.58 99,794,665.58
Total of non-current assets 14,061,775,820.41 14,062,222,915.59 447,095.18
Total of assets 16,295,910,774.45 16,296,357,869.63 447,095.18
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Transactional financial
liabilities
Financial liabilities
measured at fair value with
variations accounted into
current income account
Derivative financial
liabilities
Notes payable
Account payable 203,779,190.74 203,779,190.74
Advance receipts 12,039,708.01 12,039,708.01
2019 Annual Report
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Contract liabilities
Selling of repurchased
financial assets
Deposit taking and
interbank deposit
Entrusted trading of
securities
Entrusted selling of
securities
Employees’ wage
13,122,437.17 13,122,437.17
payable
Tax payable 104,198,746.06 104,198,746.06
Other account payable 191,254,464.84 183,379,088.27 -7,875,376.57
Including：Interest
8,971,576.57 -8,971,576.57
payable
Dividend payable 17,191,142.23 17,191,142.23
Fees and commissions
payable
Reinsurance fee
payable
Liabilities held for sales
Non-current liability due
2,498,480,000.00 2,506,355,376.57 7,875,376.57
within 1 year
Other current liability
Total of current liability 3,022,874,546.82 3,022,874,546.82
Non-current liabilities：
Reserve fund for insurance
contracts
Long-term loan 2,983,040,000.00 2,983,040,000.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 38,022,210.11 38,022,210.11
2019 Annual Report
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Long-term remuneration
payable to staff
Expected liabilities
Deferred income
Deferred income tax
205,672,389.59 205,672,389.59
liability
Other non-current
liabilities
Total non-current liabilities 3,226,734,599.70 3,226,734,599.70
Total of liability 6,249,609,146.52 6,249,609,146.52
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2,536,774,965.31 2,536,774,965.31
Less：Shares in stock
Other comprehensive
245,109,114.81 255,306,053.29 10,196,938.48
income
Special reserve
Surplus reserves 775,402,561.35 775,402,561.35
Common risk provision
Retained profit 3,938,609,136.59 3,928,859,293.29 -9,749,843.30
Total of owner’s equity
belong to the parent 9,586,701,904.06 9,587,148,999.24 447,095.18
company
Minority shareholders’
459,599,723.87 459,599,723.87
equity
Total of owners’ equity 10,046,301,627.93 10,046,748,723.11 447,095.18
Total of liabilities and
16,295,910,774.45 16,296,357,869.63 447,095.18
owners’ equity
Adjustment statement
2019 Annual Report
Parent Company Balance Sheet
In RMB
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Current asset：
Monetary fund 2,096,597,568.04 2,096,597,568.04
Transactional financial
assets
Financial assets
measured at fair value with
variations accounted into
current income account
Derivative financial
assets
Notes receivable
Account receivable 18,405,847.15 18,405,847.15
Financing of receivables
Prepayments 1,532,057.82 1,532,057.82
Other account receivable 9,323,782.66 7,443,634.54 -1,880,148.12
Including：Interest
1,880,148.12 -1,880,148.12
receivable
Dividend receivable 1,205,472.90 1,205,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due
100,000,000.00 101,880,148.12 1,880,148.12
within 1 year
Other current asset
Total of current assets 2,225,859,255.67 2,225,859,255.67
Non-current assets：
Debt investment 692,903,684.98 692,903,684.98
Available for sale of
1,668,791,594.53 -1,668,791,594.53
financial assets
Other investment on bonds
Expired investment in
possess
Long-term receivable
2019 Annual Report
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Long term share equity
4,679,309,978.88 4,679,757,074.06 447,095.18
investment
Other equity instruments
1,668,791,594.53 1,668,791,594.53
investment
Other non-current financial
assets
Property investment 3,326,869.29 3,326,869.29
Fixed assets 5,292,898,635.00 5,292,898,635.00
Construction in
1,060,230,773.10 1,060,230,773.10
progress
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 1,741,277.53 1,741,277.53
Development expenses
Goodwill
Long-germ expenses to
be amortized
Deferred income tax
447,328,530.77 447,328,530.77
asset
Other non-current asset 790,720,727.48 97,817,042.50 -692,903,684.98
Total of non-current assets 13,944,348,386.58 13,944,795,481.76 447,095.18
Total of assets 16,170,207,642.25 16,170,654,737.43 447,095.18
Current liabilities
Short-term loans
Transactional financial
liabilities
Financial liabilities
measured at fair value with
variations accounted into
current income account
Derivative financial
liabilities
Notes payable
Account payable 124,833,335.72 124,833,335.72
Advance receipts
2019 Annual Report
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Contract Liabilities
Employees’ wage
5,669,203.37 5,669,203.37
payable
Tax payable 10,297,144.52 10,297,144.52
Other account payable 142,457,135.79 135,180,239.43 7,276,896.36
Including：Interest
8,373,096.36 -8,373,096.36
payable
Dividend payable 17,191,142.23 17,191,142.23
Liabilities held for sales
Non-current liability due
2,327,180,000.00 2,334,456,896.36 7,276,896.36
within 1 year
Other current liability 977,236,252.44 977,236,252.44
Total of current liability 3,587,673,071.84 3,587,673,071.84
Non-current liabilities：
Long-term loan 2,731,990,000.00 2,731,990,000.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 38,022,210.11 38,022,210.11
Long-term remuneration
payable to staff
Expected liabilities
Deferred income
Deferred income tax
88,220,604.00 88,220,604.00
liability
Other non-current
liabilities
Total non-current liabilities 2,858,232,814.11 2,858,232,814.11
Total of liability 6,445,905,885.95 6,445,905,885.95
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
2019 Annual Report
Amount involved in the
Items December 31,2018 January 1,2019
adjustment
Including：preferred
stock
Sustainable debt
Capital reserves 2,948,663,196.93 2,948,663,196.93
Less：Shares in stock
Other comprehensive
245,109,114.81 255,306,053.29 10,196,938.48
income
Special reserve
Surplus reserves 759,558,277.70 759,558,277.70
Retained profit 3,680,165,040.86 3,670,415,197.56 -9,749,843.30
Total of owners’ equity 9,724,301,756.30 9,724,748,851.48 447,095.18
Total of liabilities and
16,170,207,642.25 16,170,654,737.43 447,095.18
owners’ equity
Note
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2019
□ Applicable √ Not applicable
29. Significant account judgment and estimates
During the application of accounting policies, judgements, estimates, and presumption need to be made for
elements of financial statements, which cannot be precisely measured due to inherent uncertainty existing in
operating activities. The judgments, estimates, and presumption are made on the basis of the Company's past
experience and other relevant factors. The exercise of judgements, estimates, and presumption has an impact on
the measurement of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities on the
balance sheet date. However, the inherent uncertainty of the judgments, estimates, and presumption may result in
future significant adjustments to be made to the measurement of the affected assets and liabilities.
The judgments, estimates, and presumption are regularly reviewed on the basis of going concern. Where a
change in accounting estimates is applicable, its impact on financial statements is recognized in the period during
which the change occurs if the change has an impact on the financial statements for that period only; and in
subsequent periods if the change also has an impact on the financial statements for subsequent periods.
Significant elements of financial statements and areas that are subject to judgements, estimates and
presumption on the balance-sheet date include the following.
（1）Impairment of financial assets
The Company adopts the anticipated credit loss model to evaluate the impairment of financial instruments,
which requires that significant judgments and estimates should be made and all reasonable and reliable
information, including forward-looking information should be taken into account. In making such judgment and
2019 Annual Report
estimate, the Company deduces the expected change of debtor's credit risk based on historical data and
macroeconomic indicators of economic policies, industrial risks, external market environment, technical
environment, changes of customer conditions and other factors.
(2) Fair value of financial instruments
For financial instruments with no active trading markets, the Group determines their fair values through
various valuation methods. These valuation methods include discounted cash flow model analysis, etc. During the
valuation, the Group needs to estimate the future cash flow, credit risk, market volatility and correlation, and
select an appropriate discount rate. These related assumptions are uncertain, and their changes will affect the fair
value of financial instruments. If there is a public quotation for equity instrument investment or contract, the
Group does not use cost as the best estimate of its fair value.
（3）Provision for impairment of long-term assets.
Non-current assets are assessed for indicators of impairment on each balance sheet date. In addition,
intangible assets with infinite useful life are subject to impairment testing on each balance-sheet date and
whenever there is evidence indicating impairment; other non-financial non-current assets are subject to
impairment testing only if their evidence indicating that the carrying amount becomes non-collectible.
Impairment exists when the carrying amount of an asset or cash-generating unit exceeds its recoverable
amount, which is higher of the residual amount after deducting necessary expenses for disposal from its fair value
and the present value of its future cash flows. An asset's residual amount after deducting necessary expenses for
disposal is determined by reference to the residual amount after deducting the incremental costs to dispose the
asset from the selling price provided by contracts for sales of similar assets or the observable market price of
similar assets.
When estimating the present value of future cash flows of an asset or cash-generating unit, significant
judgments must be made regarding the production capacity, selling price, relevant operating costs of the asset or
cash-generating unit and relevant discount rates for discounting the cash flows. The Company considers all
available relevant information when determining the recoverable amount, including estimates regarding future
production capacity, selling price and relevant operating costs made on the basis of reasonable and supportive
presumption.
Goodwill is assessed for impairment at least annually. The assessment involves an estimate of the present
value of the future cash flows associated with the assets or groups of assets to which goodwill has been allocated.
The estimate considers the future cash flows associated with the assets or groups of assets to which goodwill has
been allocated and the applicable discount rates for cash flow discounting.
（4）Depreciation and amortization
Investment property, fixed assets, and intangible assets are depreciated (amortized) over their useful lives
using the straight-line method after considering of their residual value. Useful lives of these assets are regularly
reviewed for the purpose of determining the depreciation and amortization recognized for each period. Useful
lives are determined on the basis of the Company's past experience on similar assets and expected new technology
development. If existing estimates change significantly, the adjustment is made to the depreciation and
amortization for future periods.
（5）Deferred tax assets
All unutilized tax loss is recognized as deferred tax assets to the extent it is probable that taxable profit will
be available against which the deductible tax loss can be utilized. Significant judgments are required to estimate
the timing and amount of future taxable profit and to consider tax planning strategy so as to determine the number
of deferred tax assets to be recognized.
2019 Annual Report
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Taxable income 3%,5%,6%,9%,10%,11%,13%
City maintenance and construction tax The actual payment of turnover tax 5%、7%
Enterprise income tax Taxable income 25%
2.Preferential tax
According to the Notice of the Ministry of Finance and the State Administration of Taxation on Fully
Opening the Pilot of Changing Business Tax to VAT (CS [2016] No.36), the qualified contract energy
management services of the subsidiary Guangdong High-speed Technology Investment Co., Ltd. are exempt from
VAT.
According to the Notice of the Ministry of Finance and the State Administration of Taxation on Promoting
the Development of Value-added Tax, Business Tax and Enterprise Income Tax Policies for Energy-Saving
Service Industries (CK [2010] No.110), if the contract energy management project implemented by the subsidiary
Guangdong Expressway Technology Investment Co., Ltd. complies with the relevant provisions of the enterprise
income tax law, the enterprise income tax shall be exempted from the first to the third year from the tax year in
which the project obtains the first production and operation income, and the enterprise income tax shall be halved
from the fourth to the sixth year according to the statutory tax rate of 25%. This year is the sixth year for the
entitlement of tax concessions.
3.Other
The applicable tax rates for VAT sales or imported goods in our company during the period from January to
March 2019 are 16% and 10%. According to the Announcement of the Ministry of Finance, the State
Administration of Taxation and the General Administration of Customs on the Policies for Deepening the Reform
of VAT (Announcement [2019] No. 39 of the Ministry of Finance, the State Administration of Taxation and the
General Administration of Customs), the applicable tax rate has been adjusted to 13% and 9% since April 1, 1919.
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 20,587.32 53,211.49
Bank deposit 2,817,384,626.65 2,123,807,010.07
Other 515,680.53 664,774.76
Total 2,817,920,894.50 2,124,524,996.32
2019 Annual Report
Other note
Note：On December 31,2019,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.
2019 Annual Report
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book value
Amount Proportio Amount Amount Amount Proportio Amount Proportio Book value
Proportion(%)
n(%) n(%) n(%)
Of which：
Accrual of bad debt provision by
126,698,717.95 100.00% 1,354,993.29 1.07% 125,343,724.66 92,253,875.06 100.00% 1,176,879.99 1.28% 91,076,995.07
portfolio
Of which：
Aging portfolio 126,698,717.95 100.00% 1,354,993.29 1.07% 125,343,724.66 92,253,875.06 100.00% 1,176,879.99 1.28% 91,076,995.07
Total 126,698,717.95 100.00% 1,354,993.29 1.07% 125,343,724.66 92,253,875.06 100.00% 1,176,879.99 1.28% 91,076,995.07
2019 Annual Report
Accrual of bad debt provision by portfolio：Accrual of bad debt provision by aging portfolio
In RMB 元
Balance in year-end
Name
Receivable accounts Bad debt provision Withdrawal proportion
Within 1 year 116,958,715.56
1-2 years 8,993,839.40 899,383.94 10.00%
2-3 years 75,000.00 22,500.00 30.00%
3-4 years 439,843.39 219,921.70 50.00%
4-5 years 181,319.60 163,187.65 90.00%
Over 5 years 50,000.00 50,000.00 100.00%
Total 126,698,717.95 1,354,993.29 --
Disclosure by aging
In RMB
Aging Book balance
Within 1 year（Including 1 year） 116,958,715.56
1-2 years 8,993,839.40
2-3 years 75,000.00
Over 3 years 671,162.99
3-4 years 439,843.39
4-5 years 181,319.60
Over 5 years 50,000.00
Total 126,698,717.95
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Aging portfolio 1,176,879.99 178,113.30 1,354,993.29
Total 1,176,879.99 178,113.30 1,354,993.29
（3）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
2019 Annual Report
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services Co.,
57,172,014.20 45.12%
Ltd.
Guangdong Humen Bridge Co., Ltd. 16,693,904.73 13.18%
Guangzhou Lingte Electronic cO., lTD. 8,505,000.00 6.71%
Shandong Boan Intelligent Technology
7,409,966.25 5.85% 740,996.63
Co., Ltd
Guangdong Jingzhu Expressway Guangzhu
6,168,200.00 4.87%
North Section Co., Ltd.
Total 95,949,085.18 75.73%
3. Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance Year-beginning
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 10,724,508.41 98.44% 1,708,205.40 89.30%
Over 3 years 169,738.00 1.56% 204,738.00 10.70%
Total 10,894,246.41 -- 1,912,943.40 --
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Name Amount Proportion %
Third Institute of Public Security 8,230,088.50 75.55
Guangdong Litong Real estate Investment Co., Ltd. 735,092.38 6.75
China Pacific Property Insurance Co. Ltd. Guangdong Branch 598,831.50 5.50
China Ping An Property Insurance Co. Ltd. Guangdong Branch 534,184.50 4.90
Guangdong Transmission & Transformation Engineering 235,695.00 2.16
Company
Total 10,333,891.88 94.86
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 7,205,472.90 1,205,472.90
2019 Annual Report
Other receivable 19,412,705.67 15,281,783.12
Total 26,618,178.57 16,487,256.02
（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
Guangdong Yueke Technology Petty Loan Co., Ltd. 6,000,000.00
Total 7,205,472.90 1,205,472.90
（2）Significant dividend receivable aged over 1 year
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
Other note：
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Balance of settlement funds for
47,528,056.18 47,528,056.18
securities transactions
Cash deposit 10,881,564.39 7,813,222.94
Gelin Enze Account 4,007,679.91 4,007,679.91
Petty cash 3,580,634.57 3,800,100.00
Transfer of long-term assets receivable 935,820.00
Other 4,043,898.89 3,684,689.17
Less：Bad-debt provision -51,564,948.27 -51,551,965.08
Total 19,412,705.67 15,281,783.12
Disclosure by aging
2019 Annual Report
In RMB
Aging Closing balance
Within 1 year 10,848,432.72
1-2 years 3,059,557.82
2-3 years 2,325,969.50
3-4 years 978,158.33
4-5 years 540,755.98
Over 5 years 53,224,779.59
Subtotal 70,977,653.94
Less：Bad-debt provision 51,564,948.27
Total 19,412,705.67
3）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
16,228.99 51,535,736.09 51,551,965.08
1, 2019
Balance as at January
—— —— —— ——
1, 2019 in current
Provision in the current
12,983.19 12,983.19
period
Balance as at
29,212.18 51,535,736.09 51,564,948.27
December 31, 2019
Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable
4) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening
Category Reversed or Closing balance
balance Accrual Write - off
collected amount
2019 Annual Report
Amount of change in the current period
Opening
Category Reversed or Closing balance
balance Accrual Write - off
collected amount
Financial assets with
significantly 51,535,736.09 51,535,736.09
different credit risks
Other Portfolio 16,228.99 12,983.19 29,212.18
Total 51,551,965.08 12,983.19 51,564,948.27
Note 1:The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd, Guangdong
Expressway technology investment Co., Ltd once paid 18,000,000.00 yuan into Kunlun Securities Co., Ltd.
Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun
Securities Co., Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007, The Company and
Guangdong Expressway Technology Investment Co., Ltd had switched the money that paid into Kunlun Securities
Co., Ltd to other account receivable, and follow the careful principle to doubtful debts provision. The 710,349.92
yuan Credit was Recovered in 2008, The 977,527.77 yuan credit was recovered in 2011, The 652,012.00 yuan
Credit was recovered in 2014, The 1,815,828.92 yuan Credit was recovered in 2018, and the provision for had
debt is deducted.
Note2：Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze Organic
Fertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it was entrust loan, three million was temporary
borrowing 12,400.00 yuan is the commission loan interest, the rest of it was advance money for another, Beijing
Gelin Enze Organic Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly,
the controlling subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full provision
for Bad debt 12,220,079.91yuan provision. The company in 2014 recovered arrears of 8,000,000.00
yuan, rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tTh
e settlement agreement of 212,400.00 yuan.
5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion of
the total year
Closing balance of
Name Nature Closing balance Aging end balance of
bad debt provision
the accounts
receivable(%)
Kunlun Securities Securities trading set
47,528,056.18 Over 5 years 66.96% 47,528,056.18
Co.,Ltd tlement funds
Beijing Gelin
Current account 4,007,679.91 Over 5 years 5.65% 4,007,679.91
Enze
Shandong Boan
Intelligent
Deposit 1,725,155.40 1-2 years 2.43%
Technology Co.,
Ltd.
2019 Annual Report
Guangdong Litong
Real Estates
Deposit 1,505,864.00 2-3 years 2.12%
Investment Co.,
Ltd.
Guangdong
Guanghui
Deposit 1,462,587.90 1-5 years 2.06%
Expressway Co.,
Ltd.
Total -- 56,229,343.39 -- 79.22% 51,535,736.09
5. Inventories
Whether implemented new revenue guidelines?
□ Yes √No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 111,683.22 111,683.22 81,017.91 81,017.91
Total 111,683.22 111,683.22 81,017.91 81,017.91
(2)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
Nil
6.Non-current asset due within 1 year
In RMB
Items
Year-end balance Year-beginning balance
Pre-payment of business tax before
51,745.32 51,745.32
replacing business tax with VAT
Total 51,745.32 51,745.32
2019 Annual Report
7. Long-term equity investment In RMB
Increase/decrease Closing
Adjustme Withdraw balance
Addit Investment profit Cash bonus or
Negative nt of other al of O of
Investees Opening balance ional and loss Changes of profits Closing balance
investmen comprehe impairme th impairme
invest recognized under other equity announced to
t nsive nt er nt
ment the equity method issue
income provision provision
I. Joint venture
Guangdong Guanghui
992,521,223.58 300,795,505.08 25,795,500.00 270,638,655.14 1,048,473,573.52
Expressway Co., Ltd.
Subtotal 992,521,223.58 300,795,505.08 25,795,500.00 270,638,655.14 1,048,473,573.52
2. Affiliated Company
Zhaoqing Yuezhao Highway Co., Ltd. 307,172,338.10 54,157,587.00 53,207,865.41 308,122,059.69
Shenzhen Huiyan Expressway 230,553,756.87 32,128,670.57 262,682,427.44
Guangdong Jiangzhong Expressway
175,324,643.76 17,985,293.11 13,818,419.89 179,491,516.98
Co.,. Ltd.
Ganzhou Kangda Expressway 219,985,018.52 35,748,508.34 21,000,000.00 234,733,526.86
Gan Ganzhou Gankang Expressway 209,995,910.71 6,376,740.19 2,700,000.00 213,672,650.90
Guangdong Yueke Technology Petty
219,693,558.27 943,777.18 6,000,000.00 214,637,335.45
Loan Co., Ltd.
Guoyuan Securities Co., Ltd. 790,845,615.44 21,367,654.65 1,614,033.93 19,900,496.50 793,926,807.52
Subtotal 2,153,570,841.67 168,708,231.04 1,614,033.93 116,626,781.80 2,207,266,324.84
Total 3,146,092,065.25 469,503,736.12 1,614,033.93 25,795,500.00 387,265,436.94 3,255,739,898.36
Other note
2019 Annual Report
8.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co., Ltd. 748,348,301.73 748,348,301.73
China Everbright Bank Co., Ltd. 50,000,000.00 50,000,000.00
Huaxia Securities Co., Ltd.（Notes1） 1,037,474,303.04 870,443,292.80
Huazheng Asset Management Co., Ltd.
（Notes2）
Kunlun Securities Co., Ltd.（Notes3）
Total 1,835,822,604.77 1,668,791,594.53
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of Reasons for Reasons
other designation as for other
Dividend consolidated measured at fair consolidate
Cumulative Cumulative
Items income income value and changes d income
gain loss
recognized transferred included in other transferred
to retained comprehensive to retained
earnings income earnings
Guangle Non-transactional
Expressway Co., purpose for
Ltd. shareholding
Guangdong Radio
and Television
Non-transactional
Networks
1,036,353.17 7,362,129.13 purpose for
investment No.1
shareholding
Limited partnership
enterprise
Non-transactional
China Everbright
37,876,045.98 519,913,426.24 purpose for
Bank Co., Ltd.
shareholding
Non-transactional
Huaxia Securities
5,400,000.00 purpose for
Co., Ltd.
shareholding
Huazheng Asset Non-transactional
Management Co., 1,620,000.00 purpose for
Ltd. shareholding
2019 Annual Report
Non-transactional
Kunlun Securities
30,000,000.00 purpose for
Co., Ltd.
shareholding
Total 38,912,399.15 527,275,555.37 37,020,000.00
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 yuanto
acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions. The
Company replied on December 5, 2005, abandoning the preemptive right under the same conditions. The
Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of
1.62 million yuan.
Note 3.The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered liquidation procedure in
October 2005. A wholly owned subsidiary of Guangdong Expressway Technology Investment Co., Ltd. Will
invest Kunlun Securities Co., Ltd.'s full provision for impairment of 30 million yuan.
9. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Houses and Construction in
Items Land use right Total
buildings progress
I. Original value
1.Opening balance 12,664,698.25 2,971,831.10 15,636,529.35
2.Increased amount of the period
（1）Outsourcing
(2)Inventory, Fixed assets and Construction project
into
(3) )Increased of Enterprise consolidation
3.Decreased amount of the period
2019 Annual Report
Houses and Construction in
Items Land use right Total
buildings progress
（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 10,373,153.97 1,684,367.84 12,057,521.81
2.Increased amount of the period 173,937.81 73,569.36 247,507.17
(1)Withdrawal or amortization 173,937.81 73,569.36 247,507.17
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 10,547,091.78 1,757,937.20 12,305,028.98
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
4.Closing balance
IV. Book value
1.Closing book value 2,117,606.47 1,213,893.90 3,331,500.37
2.Opening book 2,291,544.28 1,287,463.26 3,579,007.54
2019 Annual Report
(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
Houses and Building 1,440,295.86 Transportation and other ancillary facilities, Not accreditation
Total 1,440,295.86
Other note
10. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 8,925,700,473.65 7,600,046,319.91
Total 8,925,700,473.65 7,600,046,319.91
2019 Annual Report
(1) List of fixed assets
In RMB
Jingzhu Electricity
Guangfo House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
Expressway buildings equipment equipment
Guangzhu section other
I. Original price
1.Opening balance 1,460,270,190.66 8,988,726,518.80 4,798,270,209.11 342,597,957.59 122,698,641.11 48,745,472.07 659,423,683.35 16,420,732,672.69
2.Increased amount of the period 1,946,332,090.86 17,886,407.34 22,600,884.86 139,103,522.87 2,018,560.77 57,478,635.10 2,185,420,101.80
（1）Purchase 189,000.00 2,018,560.77 14,665,709.97 16,873,270.74
（2）Transfer of project under
1,946,327,170.86 17,886,407.34 12,127,161.89 138,641,218.60 48,198,313.24 2,163,180,271.93
construction
(3)Increased of Enterprise
consolidation
（4）Other 4,920.00 10,473,722.97 273,304.27 -5,385,388.11 5,366,559.13
3.Decreased amount of the period 3,005,947.81 1,241,560.00 2,120,018.00 58,789,027.81 65,156,553.62
（1）Disposal or scrap 3,005,947.81 1,241,560.00 2,120,018.00 56,517,622.81 62,885,148.62
（2）Other Out 2,271,405.00 2,271,405.00
4.Closing balance 1,460,270,190.66 10,935,058,609.66 4,816,156,616.45 362,192,894.64 260,560,603.98 48,644,014.84 658,113,290.64 18,540,996,220.87
II. Accumulated depreciation
1.Opening balance 1,460,270,190.66 3,940,158,837.04 2,625,645,410.16 232,333,164.38 71,147,743.72 38,419,504.01 452,711,502.81 8,820,686,352.78
2.Increased amount of the period 554,046,378.54 215,994,175.35 22,593,138.77 14,846,035.69 2,679,865.44 30,106,584.89 840,266,178.68
（1）Withdrawal 554,046,378.54 215,994,175.35 14,107,525.37 14,773,299.92 2,679,865.44 38,664,934.06 840,266,178.68
（2）Other 8,485,613.40 72,735.77 -8,558,349.17
2019 Annual Report
Jingzhu Electricity
Guangfo House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
Expressway buildings equipment equipment
Guangzhu section other
3.Decreased amount of the period 2,042,517.39 1,179,482.00 1,924,922.05 47,748,058.64 52,894,980.08
（1）Disposal or scrap 2,042,517.39 1,179,482.00 1,924,922.05 47,748,058.64 52,894,980.08
4.Closing balance 1,460,270,190.66 4,494,205,215.58 2,841,639,585.51 252,883,785.76 84,814,297.41 39,174,447.40 435,070,029.06 9,608,057,551.38
II. Accumulated depreciation
1.Opening balance
2.Increased amount of the period 7,238,195.84 7,238,195.84
（1）Withdrawal 7,238,195.84 7,238,195.84
3.Decreased amount of the period
（1）Disposal or scrap
4.Closing balance 7,238,195.84 7,238,195.84
IV. Book value
1.Closing book value 6,440,853,394.08 1,974,517,030.94 109,309,108.88 175,746,306.57 9,469,567.44 215,805,065.74 8,925,700,473.65
2.Opening book 5,048,567,681.76 2,172,624,798.95 110,264,793.21 51,550,897.39 10,325,968.06 206,712,180.54 7,600,046,319.91
2019 Annual Report
⑵Temporarily idle fixed assets
Nil
⑶Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Transportation and other ancillary
House and buildings 89,891,573.85
facilities, Not accreditation
House and buildings 685,270.80 Change procedures are in process
Total 90,576,844.65
Other note
（4） Provision for impairment of fixed assets
The Group determines the recoverable amount of the electronic equipment to be disposed of based on
the net of its fair value minus disposal expenses and sets aside the corresponding asset impairment reserve.
Its fair value is determined based on the quoted price of such assets in the secondary trading market.
11. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 229,098,299.48 1,087,923,869.63
Engineering material 1,549,556.00
Total 229,098,299.48 1,089,473,425.63
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Book balance Provision for Book value Book balance Provision Book value
Items
devaluation for
devaluation
Cancellation of
Expressway Provincial 66,534,825.51 66,534,825.51
Toll Station Project
Reconstruction and
Expansion of Sanbao 15,943,015.38 15,943,015.38 1,052,834,193.16 1,052,834,193.16
to Shuikou
Bridge deck pavement
project of hailong 1,382,928.49 1,382,928.49 1,382,928.49 1,382,928.49
Bridge
2019 Annual Report
Year-end balance Year-beginning balance
Book balance Provision for Book value Book balance Provision Book value
Items
devaluation for
devaluation
Minzhong Service area
18,210,698.73 18,210,698.73
reconstruction project
Urban toll station
9,013,081.45 9,013,081.45 5,008,642.53 5,008,642.53
project
Pavement Treatment
46,573,355.85 46,573,355.85
Project
Bridge Deck Treatment
Project of Dayong 67,204,790.39 67,204,790.39
Viaduct
Improvement Project
of Drainage Pipes
5,933,146.00 5,933,146.00
Across River Reach of
Bridge
Bridge Drainage
Improvement Project
Across Centralized 7,000,000.00 7,000,000.00
Drinking Water
Sources
Monitoring Hall
7,167,718.98 7,167,718.98
Migration Project
Odd project 2,345,437.43 2,345,437.43 10,487,406.72 10,487,406.72
Total 229,098,299.48 229,098,299.48 1,087,923,869.63 1,087,923,869.63
2019 Annual Report
(2) Changes of significant construction in progress
In RMB
Including:
Capitali
capitalization
Capitalization zation Source
Transferred to Other Proport Project of
Name of project Budget Opening balance Increase End balance of of of
fixed assets decrease ion % process interest
interest interest funding
this
rate (%)
period
Cancellation of
Expressway Provincial 85,000,000.00 66,534,825.51 66,534,825.51 78.28% 78.28% Other
Toll Station Project
Reconstruction and
Expansion of Sanbao to 3,426,210,000.00 1,052,834,193.16 1,083,790,476.36 2,120,681,654.14 15,943,015.38 75.37% 75.37% 72,779,504.82 28,555,152.81 4.49% Other
Shuikou
Minzhong Service area 100.00
34,332,800.00 18,210,698.73 11,028,092.50 29,238,791.23 85.16% Other
reconstruction project %
Financial
Pavement Treatment
93,000,000.00 46,573,355.85 46,573,355.85 50.08% 50.08% 178,190.49 178,190.49 4.41% institutio
Project
n Loans
Financial
Bridge Deck Treatment
133,000,000.00 67,204,790.39 67,204,790.39 50.53% 50.53% 687,589.39 687,589.39 4.41% institutio
Project of Dayong Viaduct
n Loans
Total 3,771,542,800.00 1,071,044,891.89 1,275,131,540.61 2,149,920,445.37 196,255,987.13 -- -- 73,645,284.70 29,420,932.69 --
2019 Annual Report
（3）Engineering material
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision for Book value Book Provision for Book value
devaluation balance devaluation
Signpost 1,549,556.00 1,549,556.00
Total 1,549,556.00 1,549,556.00
Other note：
12. Intangible assets
(1) List of intangible assets
In RMB
Items Land use right Patent right Non-patent right Software Total
I. Original price
1.Opening balance 1,311,658.00 28,619,133.57 29,930,791.57
2.Increased amount of the period 2,709,706.24 2,709,706.24
(1) Purchase 2,709,706.24 2,709,706.24
(2)Internal Development
(3)Increased of Enterprise Combination
3.Decreased amount of the period
（1）Disposal
4.Closing balance 1,311,658.00 31,328,839.81 32,640,497.81
II. Accumulated amortization
1.Opening balance 1,311,658.00 22,880,113.09 24,191,771.09
2.Increased amount of the period 2,054,831.55 2,054,831.55
(1) Withdrawal 2,054,831.55 2,054,831.55
3.Decreased amount of the period
2019 Annual Report
Items Land use right Patent right Non-patent right Software Total
（1）Disposal
4.Closing balance 1,311,658.00 24,934,944.64 26,246,602.64
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 6,393,895.17 6,393,895.17
2.Opening book value 5,739,020.48 5,739,020.48
The proportion of intangible assets formed through internal R&D of the company at the end of this period in the
balance of intangible assets is 0.00。
13. Long-term amortize expenses
In RMB
Balance in Increase in this Amortized Balance in
Items year-begin period expenses Other loss
year-end
Rental fee for plant 1,221,781.88 107,017.44 1,114,764.44
Total 1,221,781.88 107,017.44 1,114,764.44
Other note
14. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Items Balance in year-end Balance Year-beginning
2019 Annual Report
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
7,238,195.84 1,809,548.96
provisions
Deductible loss 1,054,468,552.04 263,617,138.01 1,281,389,685.73 320,347,421.43
Amortization of
100,250,984.24 25,062,746.06 66,852,925.03 16,713,231.26
intangible assets
Asset valuation
380,018,692.41 95,004,673.10 441,697,528.41 110,424,382.10
appreciation
Total 1,541,976,424.53 385,494,106.13 1,789,940,139.17 447,485,034.79
(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 519,913,426.24 129,978,356.56 352,882,416.00 88,220,604.00
instruments
Deductible temporary
differences in the
433,902,478.92 108,475,619.73 469,807,142.34 117,451,785.59
formation of asset
impairment
Total 953,815,905.16 238,453,976.29 822,689,558.34 205,672,389.59
（3）Details of unrecognized deferred tax assets
In RMB
Items Balance in year-end Balance Year-beginning
Deductible loss 8,013,102.87 8,796,952.44
Assets impairment provisions 89,939,941.56 89,748,845.07
Cost of outstanding invoices 1,941,115.68
Total 99,894,160.11 98,545,797.51
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance Year-beginning Remark
2019 3,456,570.30
2019 Annual Report
Year Balance in year-end Balance Year-beginning Remark
2020
2021
2022 1,133,109.04 2,121,083.91
2023 3,210,991.23 3,219,298.23
2024 3,669,002.60
Total 8,013,102.87 8,796,952.44 --
Other note：
15. Other Non-current assets
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
Items Balance in year-end Balance Year-beginning
Deductible import tax 49,385,484.09
Prepaid fixed assets engineering fees 50,442,297.97 49,890,408.41
Prepaid business tax 518,773.08 570,518.40
Less：Part due within 1 year -51,745.32 -51,745.32
Total 50,909,325.73 99,794,665.58
Other note：
16.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 177,823,526.35 84,200,629.90
1-2 years（including2 years） 11,710,703.48 8,911,247.40
2-3 years（including 3 years） 2,468,424.00 84,119,053.06
Over 3 years 98,655,080.48 26,548,260.38
Total 290,657,734.31 203,779,190.74
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
2019 Annual Report
Items Balance in year-end Reason
Heshan Land and resources Bureau 27,186,893.60 Unsettled
Guangdong Highway Construction Co., Ltd. 25,630,651.00 Unsettled
Foshan Land and resources Bureau. 30,507,598.21 Unsettled
Guangdong Expressway Co., Ltd. 8,746,491.18 Unsettled
Foshan Chancheng Zhancha Street Office 4,626,817.32 Unsettled
Total 96,698,451.31 --
Other note：
17. Prepayment received
Whether implemented new revenue guidelines?
□ Yes √No
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 4,653,396.85 516,610.46
1-2 years（Including 2 years） 198.41
2-3 years（Including 3 years） 419,601.44
Over 3 years 10,951,499.43 11,103,496.11
Total 15,605,094.69 12,039,708.01
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/ Uncarry over reason
Guangzhou Huanlong Expressway Co., Ltd. 8,806,596.50 Land rent is not in the settlement period
Guanghdong Xinle Technology Development The Rental is not in the settlement
1,647,346.97
Co., Ltd. period
Total 10,453,943.47 --
18. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the Decrease in the
Year-end balance
balance current period current period
I. Short-term compensation 13,122,437.17 331,254,614.36 329,554,526.83 14,822,524.70
2019 Annual Report
II.Post-employment benefits - defined contri
43,321,707.31 43,321,707.31
bution plans
Total 13,122,437.17 374,576,321.67 372,876,234.14 14,822,524.70
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the Decrease in the Year-end
balance current period current period balance
1.Wages, bonuses, allowances and subsidies 628,563.49 251,560,541.09 251,546,641.09 642,463.49
2.Employee welfare 22,667,111.10 22,667,111.10
3. Social insurance premiums 17,992,083.36 17,992,083.36
Including ：Medical insurance 11,402,270.98 11,402,270.98
Work injury insurance 244,229.07 244,229.07
Maternity insurance 1,701,690.99 1,701,690.99
Supplementary medical insurance 4,643,892.32 4,643,892.32
4.Public reserves for housing 27,782,966.00 27,782,966.00
5.Union funds and staff education fee 11,817,868.74 8,836,861.72 7,789,322.82 12,865,407.64
8.Other 676,004.94 2,415,051.09 1,776,402.46 1,314,653.57
Total 13,122,437.17 331,254,614.36 329,554,526.83 14,822,524.70
（3）Defined contribution plans listed
In RMB
Balance Increase in this Payable in this Balance in year-end
Items
Year-beginning period period
1. Basic old-age insurance premiums 23,282,285.36 23,282,285.36
2.Unemployment insurance 835,489.43 835,489.43
3.Enterprise annuity payment 19,203,932.52 19,203,932.52
Total 43,321,707.31 43,321,707.31
Other note：
Note ： The Group participates in pension and unemployment insurance schemes set up by government
agencies according to regulations. In addition to the above monthly payment, the Group will not undertake any
further payment obligations. The corresponding expenditures are included in the current profits and losses or the
cost of related assets when incurred.
2019 Annual Report
19. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 14,195,480.90 13,473,944.70
65,145,885.17 85,375,209.49
Enterprise Income tax
Individual Income tax 2,866,768.16 3,551,727.77
City Construction tax 957,991.34 793,960.96
Education subjoin 431,482.48 371,885.57
Locality Education subjoin 273,333.04 233,892.04
Land use tax 200,454.00
Property tax 17,061.15 155,413.34
Stamp tax 218,722.91 26,304.47
Construction costs for cultural
31,200.00 12,000.00
undertaking
Other 119,661.79 3,953.72
Total 84,257,586.94 104,198,746.06
Other note：
20.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 20,020,119.31 17,191,142.23
Other account payable 606,160,467.61 166,187,946.04
Total 626,180,586.92 183,379,088.27
（1）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 20,020,119.31 17,191,142.23
Total 20,020,119.31 17,191,142.23
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 16,962,838.73yuan for more than a year in unpaid dividends to shareholders over the year
was mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank,
did not share reform of shareholders to receive dividends or provide application to receive dividends the bank info
rmation is incorrect, resulting in failure to pay a dividend or refund.
2019 Annual Report
（2）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Quality guarantee fund 55,789,027.50 69,573,092.43
Borrowing 184,505,512.50 46,096,200.00
Provisional estimate of project cost 305,588,291.39
Other 60,277,636.22 50,518,653.61
Total 606,160,467.61 166,187,946.04
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Yayao to Xiebian extension 12,499,448.48 Outstanding
Baoli Changda Highway Engineering Co., Ltd. 8,098,915.63 Project Quality guarantees
CCCC First Harbor Engineering Co., Ltd. 7,576,165.47 Project Quality guarantees,constract liquidated damages
Project Quality guarantees,constract liquidated damages,
China Railway 18 Bureau Group Co., Ltd. 7,134,981.40
Wage margin for migrant workers
China Railway Tunnel Group Co., Ltd. 6,406,779.86 Project Quality guarantees
Total 41,716,290.84 --
Other note
21. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 765,445,000.00 2,498,480,000.00
Long-term payable due within 1 year 256,603.77
Interest payable due within 1 year 30,160,354.30 7,875,376.57
Total 795,861,958.07 2,506,355,376.57
Other note：
22.Other current liabilities
Whether implemented new revenue guidelines?
2019 Annual Report
□ Yes √No
In RMB
Items Balance year-end Year-beginning balance
Tax to be rewritten 189,628.17
Total 189,628.17
23. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 447,365,000.00 422,350,000.00
Guaranteed loan 375,000,000.00 1,125,000,000.00
Credit loan 4,583,505,000.00 3,934,170,000.00
Long-term loans due within one year -765,445,000.00 -2,498,480,000.00
Total 4,640,425,000.00 2,983,040,000.00
Other notes including interest rate range：
24.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 678,124,972.89
Total 678,124,972.89
2019 Annual Report
（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
Overflow Pay in
Name of the Opening The current Withdraw
Book value Issue date Period Issue amount discount current Closing balance
bond balance issue interest at par
amount period
19
Guangdong 680,000,000.0 2019.3.1-
2019.2.27 680,000,000.00 680,000,000.00 -1,875,027.11 678,124,972.89
Expressway 0 2024.3.1
MTN001
Total -- -- -- 680,000,000.00 680,000,000.00 -1,875,027.11 678,124,972.89
2019 Annual Report
25. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 39,369,379.91 38,022,210.11
Total 39,369,379.91 38,022,210.11
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2,022,210.11 2,022,210.11
Entrust loans 36,000,000.00 36,000,000.00
Medium term bill underwriting fee 1,603,773.57
Less：Part due within 1 year 256,603.77
Total 39,369,379.91 38,022,210.11
Other note：
26. Stock capital
In RMB
Changed（+，-）
Balance Issuance Capitalizatio Balance in
Year-beginning of new Bonus shares n of public Other Subtotal year-end
share reserve
Total of
capital 2,090,806,126.00 2,090,806,126.00
shares
Other note：
27. Capital reserves
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Share premium 2,508,408,342.99 2,508,408,342.99
Other capital reserves 28,366,622.32 25,795,500.00 54,162,122.32
Total 2,536,774,965.31 25,795,500.00 2,562,570,465.31
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 25,795,500.00 yuan due to the change of the owner's equity of the
joint-stock company
2019 Annual Report
28. Other comprehensive income
In RMB
Amount of current period
Less：Amount transferred
Less：Prior period included After-tax After-tax
Year-beginning Amount into profit and loss in the Year-end
Items in other composite income Less：Income attribute to the attribute to
balance incurred before current period that recognied balance
transfer to retained income tax expenses parent minority
income tax into other comprehensive
in the current period company shareholder
income in prior period
1.Other comprehensive income will
be reclassified into income or loss in 264,661,812.00 167,031,010.24 41,757,752.56 125,273,257.68 389,935,069.68
the future
Changes in fair value of investments
264,661,812.00 167,031,010.24 41,757,752.56 125,273,257.68 389,935,069.68
in other equity instruments
2.Other comprehensive income
reclassifiable to profit or loss in -9,355,758.71 1,614,033.93 1,614,033.93 -7,741,724.78
subsequent periods
Including：Share of other
comprehensive income of the investee
that cannot be transferred to profit or -9,355,758.71 1,614,033.93 1,614,033.93 -7,741,724.78
loss accounted for using the equity
method
Total of other comprehensive income 255,306,053.29 168,645,044.17 41,757,752.56 126,887,291.61 382,193,344.90
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
2019 Annual Report
29. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus reserve 775,402,561.35 135,022,507.55 910,425,068.90
Total 775,402,561.35 135,022,507.55 910,425,068.90
Note：
According to the Company Law and the Articles of Association of the Company, the Company draws
legal surplus reserve at 10% of net profit.
30. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last period end 3,938,609,136.59 3,550,110,288.49
Adjust the total undistributed profits at the beginning of the period -9,749,843.30
After adjustments: Retained profits at the period beginning 3,928,859,293.29 3,550,110,288.49
Add：Net profit belonging to the owner of the parent company 1,258,628,101.71 1,677,028,179.18
Less: Statutory surplus reserve 135,022,507.55 230,581,431.32
Common stock dividend payable 1,175,033,042.81 1,057,947,899.76
Retained profit at the end of this term 3,877,431,844.64 3,938,609,136.59
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the
affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB
0.00 .
(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 .
31.Operation income and operation cost
In RMB
Items Amount of this period Amount of last period
2019 Annual Report
Income Cost Income Cost
Main operation 3,012,240,940.41 1,327,031,747.83 3,174,342,835.65 1,250,876,481.00
Other operation 45,694,644.02 29,381,105.94 44,351,248.29 28,218,590.32
Total 3,057,935,584.43 1,356,412,853.77 3,218,694,083.94 1,279,095,071.32
Whether implemented new revenue guidelines?
□ Yes √No
Other note
32. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 6,225,239.58 6,257,072.93
Education surcharge 2,907,484.31 2,943,233.19
Property tax 2,399,365.40 2,510,760.22
Land use tax 1,671,920.58 1,744,091.50
Vehicle use tax 52,670.21 62,306.65
Stamp tax 674,931.71 370,956.91
Business tax 51,745.32 62,845.97
Locality Education surcharge 1,938,007.20 1,961,948.53
Construction costs for cultural
84,510.00 53,046.83
undertakings
Other 143,742.01 21,003.66
Total 16,149,616.32 15,987,266.39
Other notes：
The various taxes and additional payment criteria are detailed in the Section V, tax.
33. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 131,128,908.75 124,523,644.86
Depreciation and Amortization 11,015,511.37 10,846,662.10
Low consumables amortization 1,608,243.88 669,751.05
Rental fee 11,677,765.22 11,350,401.58
Travel expenses 1,280,863.53 951,373.50
Office expenses 6,961,912.80 7,113,887.43
2019 Annual Report
The fee for hiring agency 5,233,578.38 3,700,667.16
Consultation expenses 3,290,750.94 4,243,970.38
Listing fee 869,876.63 903,551.56
Information cost and maintenance fee 2,018,023.40 1,254,978.71
Other 17,097,527.78 17,833,260.35
Total 192,182,962.68 183,392,148.68
Other notes：
The various taxes and additional payment criteria are detailed in the Section VI, tax.
34. R & D cost
In RMB
Items Amount of this period Amount of last period
Labor cost 1,236,840.49
Depreciation expenses 26,107.33
Other 55,396.19
Total 1,318,344.01
Other note：
35.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 236,273,431.67 237,334,325.27
Deposit interest income（-） -28,663,756.79 -31,889,543.71
Exchange Income and loss（Gain-） 1,590,432.88 2,348,188.17
Bank commission charge 4,505,024.11 4,799,814.01
Total 213,705,131.87 212,592,783.74
Other note：
36.Other gains
In RMB
Items Amount of this period Amount of last period
Government subsidy 87,937.00
Maternity allowance 642,489.29 599,573.55
Return of personal tax handing fee 414,891.18 295,702.41
Stable job subsidies 217,952.36
2019 Annual Report
Fees for withholding enterprise income tax in advance 575,813.38
Input tax plus deduction 19,409.20
Total 1,740,540.05 1,113,228.32
37. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity method 469,503,736.12 463,873,066.20
Dividends earned during the holding period on
38,912,399.15
investments in other equity instrument
Hold the investment income during from
43,786,617.76
available-for-sale financial assets
Total 508,416,135.27 507,659,683.96
Other note：
38. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Loss of bad debts in other receivables -12,983.19
Loss of bad accounts receivable -178,113.30
Total -191,096.49
Other note：
39. Asset impairment loss
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
Items Amount of this period Amount of last period
I.Bad debt loss 1,232,955.42
Loss on impairment of financial assets available for sale -226,800.00
Loss on impairment of fixed assets -7,238,195.84
Total -7,238,195.84 1,006,155.42
Other note：
2019 Annual Report
40.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Non-current assets disposal gains 276,051.47 66,431,966.75
Including：Income from disposal of Fixed assets 276,051.47 66,431,966.75
Income from disposal of Intangible assets
Income from disposal of Intellectual property right 18,755,848.99
Total 19,031,900.46 66,431,966.75
Note： According to the approval of Guangdong Provincial Highway Enterprise Restructuring and Reform
Plan in "Guangdong Provincial Letter [2017] No. 273" of Guangdong Provincial Government, and the
Notice of Pre-Work on Developing Blue Channel Assets and Business Integration of Guangdong
Transportation Group, and the principle of "One Platform, One System, One Operating Team", "Blue
Channel" assets and business are integrated to Guangdong Unitoll Collection Inc. In April 2019,
Guangdong Gaosu Science and Technology Investment Co., Ltd. transferred the related rights of "Blue
Channel" which had not been completed as an asset group to the related party, Guangdong Unitoll
Collection Inc.The transaction was based on the evaluation value of the underlying asset group of China
Federation International Assessment Consulting Co., Ltd. (Assessment Report No. WIGPD0664, CIFIC
International Commentary [2018]).
41. Non-Operation income
In RMB
Recorded in the amount of the
Items Amount of this period Amount of last period
non-recurring gains and losses
Road property claim income 2,283,577.02 1,646,322.85 2,283,577.02
Other income 682,097.10 2,529,479.09 682,097.10
Total 2,965,674.12 4,175,801.94 2,965,674.12
42. Non-Operation expense
In RMB
Amount of current Amount of The amount of non-operating
Items
period previous period gains & losses
Loss & abandonment of non-current assets 11,424,632.25 3,368,846.52 11,424,632.25
Including：Fixed assets 11,424,632.25 3,368,846.52 11,424,632.25
Intangible assets
Fine 2,216.57 382,973.69 2,216.57
Road rehabilitation expenditure 4,310,540.20 5,153,376.72 4,310,540.20
Other 46,067.00 74,801.56 46,067.00
Total 15,783,456.02 8,979,998.49 15,783,456.02
Other note：
2019 Annual Report
43. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 285,826,627.27 340,935,816.06
Deferred income tax expense 53,014,762.80 -146,560,911.07
Total 338,841,390.07 194,374,904.99
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 1,788,426,521.34
Current income tax expense accounted by tax and relevant regulations 447,106,630.34
Influence of income tax before adjustment 7,668,106.50
Influence of non taxable income -126,844,945.53
Impact of non-deductible costs, expenses and losses 10,297,268.66
Affect the use of deferred tax assets early unconfirmed deductible losses -1,303,011.29
The current period does not affect the deferred tax assets recognized deductible temporary
312,229.18
differences or deductible loss
Other 1,605,112.21
Income tax expense 338,841,390.07
Other note
44. Other comprehensive income
Refer to the notes 7.28
45.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 28,663,756.79 31,889,543.71
Unit current account 33,967,973.22 63,672,701.77
Network received toll income 1,058,049.17
Total 62,631,730.01 96,620,294.65
2019 Annual Report
Note：
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 50,634,832.65 45,920,848.02
Unit current account 11,097,795.91 28,708,531.18
Network received toll income 10,709,945.42 276,547.72
Total 72,442,573.98 74,905,926.92
Note：
(3) Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Medium-term bill issuance fee 791,384.00
Total 791,384.00
Note：
46. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from operating activities -- --
Net profit 1,449,585,131.27 1,903,340,402.71
Add: Impairment loss provision of assets 7,238,195.84 -1,006,155.42
Credit impairment losses 191,096.49
Depreciation of fixed assets, oil and gas assets and
840,513,685.85 807,609,480.04
consumable biological assets
Amortization of intangible assets 2,054,831.55 2,526,983.05
Amortization of Long-term deferred expenses 107,017.44 101,686.95
Loss on disposal of fixed assets, intangible assets and other
-19,031,900.46 -66,431,966.75
long-term deferred assets
Fixed assets scrap loss 11,424,632.25 3,258,828.50
Financial cost 245,363,864.55 249,543,624.55
Loss on investment -508,416,135.27 -507,659,683.96
Decrease of deferred income tax assets 61,990,928.66 -112,186,009.51
2019 Annual Report
Supplement Information Amount of current period Amount of previous period
Increased of deferred income tax liabilities -8,976,165.86 -34,374,901.56
Decrease of inventories -30,665.31 -81,017.91
Decease of operating receivables 6,373,720.49 245,477,300.99
Increased of operating Payable -99,836,339.66 -574,132,993.64
Net cash flows arising from operating activities 1,988,551,897.83 1,915,985,578.04
II. Significant investment and financing activities that
-- --
without cash flows:
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 2,816,699,694.50 2,123,303,796.32
Less: Beginning balance of cash equivalents 2,123,303,796.32 2,363,042,700.42
Net increase of cash and cash equivalents 693,395,898.18 -239,738,904.10
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
Cash 2,816,699,694.50 2,123,303,796.32
Of which: Cash in stock 20,587.32 53,211.49
Bank savings could be used at any time 2,816,163,426.65 2,122,585,810.07
Other monetary capital could be used at any time 515,680.53 664,774.76
Balance of cash and cash equivalents at the period end 2,816,699,694.50 2,123,303,796.32
Other note：
Cash and cash equivalents exclude restricted cash and cash equivalents used by parent companies or
subsidiaries within a group.
47. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the period Restricted reason
Monetary fund 1,221,200.00 Land reclamation funds in the fund escrow account
Total 1,221,200.00 --
Other note：
As of December 31, 2019, the Group borrowed 447,365,000.00 yuan from Wuyang Sub-branch of
Industrial and Commercial Bank of China (including 50,670,000.00 yuan in non-current liabilities due
within one year and 396,695,000.00 yuan in long-term loans), and provided a pledge guarantee of 19.2%
of the project's toll interest (the right to collect tolls for vehicles traveling on the Guangzhou-Zhuhai
section of Beijing-Zhuhai Expressway and the revenue generated by owning such right).
2019 Annual Report
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding Ratio
Main Places
Registration (%) Obtaining
Name of Subsidiary of Nature of Business
Place indirec Method
Operation direct
t
Under the same
Expressway control
Guangfo Expressway Co., Ltd. Guangzhou Guangzhou 75.00%
Management business
combination
Investment in
Guangdong Expressway
technical industries
Technology Investment Co., Guangzhou Guangzhou 100.00% Investment
Ltd. and provision of
relevant
Under the same
Guangzhuo Guangzhu Traffic
Investment control
Investment Management Co., Guangzhou Guangzhou 100.00%
business
management
Ltd.
combination
Under the same
Jingzhu Expressway Guangzhu Expressway 55.00 control
Zhongshan Guangzhou 20.00%
Section Co.,Ltd.（Notes） Management % business
combination
Yuegao Capital Investment
Guangzhou Zhuhai 100.00% Investment
Investment(Hengqin)Co., Ltd. management
Other note：
Guangzhou Guangzhu Traffic Investment Management Co., Ltd. holds 55% equity in Guangzhu
Section Co., Ltd. of Jingzhu Expressway.
(2) Important Non-wholly-owned Subsidiary
In RMB
Shareholding
Profit or Loss Owned Dividends Distributed Equity Balance of the
Ratio of
by the Minority to the Minority Minority Shareholders
Name of Subsidiary Minority
Shareholders in the Shareholders in the in the End of the
Shareholders
Current Period Current Period Period
(%)
Guangfo Expressway Co., Ltd. 25.00% 62,690,572.08 64,914,807.35 137,780,071.77
Jingzhu Expressway Guangzhu
25.00% 128,266,457.48 158,471,897.94 289,389,976.37
Section Co.,Ltd.
Note：
2019 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Name Non- current Current Non- current Non- current Current Non- current
Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets Liabilities liabilities assets Liabilities liabilities
Guangfo
Expressway 560,965,221.56 47,173,764.91 608,138,986.47 57,018,699.42 57,018,699.42 590,663,709.13 27,675,485.80 618,339,194.93 58,321,966.77 58,321,966.77
Co., Ltd.
Jingzhu
Expressway
Guangzhu 301,043,906.12 2,257,506,902.82 2,558,550,808.94 377,916,598.72 1,023,074,304.71 1,400,990,903.43 432,281,073.29 2,301,876,076.48 2,734,157,149.77 419,370,011.85 1,036,405,470.57 1,455,775,482.42
Section
Co.,Ltd.
Amount of current period Amount of previous period
Total Total
Name Cash flows from Cash flows from
Business income Net profit Comprehensive Business income Net profit Comprehensive
operating activities operating activities
income income
Guangfo Expressway Co., Ltd. 475,502,565.03 250,762,288.30 250,762,288.30 244,313,182.32 478,698,151.01 264,958,397.35 264,958,397.35 269,630,338.75
Jingzhu Expressway Guangzhu
1,218,734,018.60 513,065,829.93 513,065,829.93 772,968,519.31 1,340,650,149.26 640,290,496.74 640,290,496.74 890,454,604.43
Section Co.,Ltd.
Other note：
2019 Annual Report
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Nil
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Nil
Other note：
2. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting
treatment of the
Main
Registration Business investment of
Name operating
place nature Directly Indirectly joint venture or
place
associated
enterprise
Guangdong Guanghui Expressway Guangzhou, Guangzhou, Expressway
30.00% Equity method
Co., Ltd. Guangdong Guangdong Management
Zhaoqing Yuezhao Highway Co., Zhaoqing, Zhaoqing, Expressway
25.00% Equity method
Ltd. Management
Guangdong Guangdong
Shenzhen Huiyan Expressway Co., Shenzhen Shenzhen Expressway
33.33% Equity method
Ltd. Guangdong Guangdong Management
Guangdong Jiangzhong Zhongshan , Guangzhou, Expressway
15.00% Equity method
Expressway Co., Ltd. Guangdong Guangdong Management
Ganzhou kangda Expressway Co., Gangzhou, Gangzhou, Expressway
30.00% Equity method
Ltd. Jiangxi Jiangxi Management
Ganzhou Gankang Expressway Gangzhou, Gangzhou, Expressway
30.00% Equity method
Co., Ltd. Jiangxi Jiangxi Management
Hande all
Guangdong Yueke Technology Guangzhou, Guangzhou,
kinds of small 20.00% Equity method
Petty Loan Co., Ltd. Guangdong Guangdong
loans
Hefei, Security
Guangyuan Securities Co., Ltd. Hefei, Anhui 2.37% Equity method
Anhui business
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Nil
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Guangdong, Jiangzhong Expressway Co., Ltd and GuangyuanSecuritiesCo.,Ltd... holds 20% of the voting rights, b
ut has the power to participate in making decisions on their financial and operating decisions, and therefore deeme
d to be able to exert significant influence over the investee.
2019 Annual Report
(2) Main financial information of significant joint venture
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Guangdong Guanghui Expressway Co., Guangdong Guanghui Expressway Co.,
Ltd. Ltd.
Current assets 676,535,557.27 886,631,849.70
Including：Cash and cash equivalent 236,277,469.65 621,540,000.54
Non-current assets 3,551,486,914.85 3,813,612,927.86
Total assets 4,228,022,472.12 4,700,244,777.56
Current liabilities 212,427,396.61 544,082,765.04
Non-current liabilities 520,683,163.79 847,757,933.94
Total liabilities 733,110,560.40 1,391,840,698.98
Attributable to shareholders of the
3,494,911,911.72 3,308,404,078.58
parent company
Share of net assets calculated by stake 1,048,473,573.52 992,521,223.58
Book value of equity investment in
1,048,473,573.52 992,521,223.58
joint ventures
Operating income 1,943,745,753.48 1,855,658,219.29
Financial expenses 15,373,529.34 33,863,147.93
Income tax expenses 334,943,632.73 323,116,545.35
Net profit 1,002,651,683.59 969,032,056.06
Total comprehensive income 1,002,651,683.59 969,032,056.06
Dividends received from joint ventures
270,638,655.14 274,805,847.20
this year
Other note
2019 Annual Report
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdon
Guangdong
Shenzhen Guangdong Ganzhou Zhaoqing Shenzhen Guangdong Ganzhou g Yueke Zhaoqing
Ganzhou Yueke Guoyuan Ganzhou Guoyuan
Huiyan Jiangzhong Gankang Yuezhao Huiyan Jiangzhong Gankang Technolog Yuezhao
Kangda Technology Securities Co., Kangda Securities Co.,
Expressway Expressway Expressway Highway Co., Expressway Expressway Expressway Co., y Petty Highway
Expressway Petty Loan Ltd. Expressway Ltd.
Co., Ltd. Co., Ltd. Co., Ltd. Ltd. Co., Ltd. Co., Ltd. Ltd. Loan Co., Co., Ltd.
Co., Ltd
Ltd
Current 209,139,152. 166,062,286.0 332,805,593.6 1,361,568,837. 57,918,624,287. 214,674,038.7 153,631,998. 35,495,996.3 1,394,967, 42,721,180,653.5 196,254,
51,220,910.08 86,313,236.14 270,093,954.27
assets 55 5 6 83 41 2 00 2 072.45 0 075.84
Non-current 745,836,911. 1,565,194,583. 1,421,468,958 1,282,668,160 26,015,472,537. 1,453,888,135 569,633,252. 1,701,322,494. 1,463,543,28 1,372,121,014.4 8,047,674. 35,374,232,070.5 1,565,55
29,480,303.62
assets 95 12 .16 .31 63 .31 71 90 8.08 0 82 1 7,770.89
954,976,064. 1,731,256,869. 1,472,689,868 1,615,473,753 1,391,049,141. 83,934,096,825. 1,668,562,174 723,265,250. 1,787,635,731. 1,499,039,28 1,642,214,968.6 1,403,014, 78,095,412,724.0 1,761,81
Total assets
50 17 .24 .97 45 04 .03 71 04 4.40 7 747.27 1 1,846.73
Current 136,928,782. 284,146,755.9 46,206,352,399. 106,514,632.0 31,603,980.1 170,304,772.6 72,629,731.8 40,797,85 46,417,460,063.6 151,065,
85,725,138.63 96,316,661.38 93,651,010.16 109,921,418.26
liabilities 17 9 19 5 0 7 9 8.70 3 956.20
Non-current 30,000,000.0 250,500,000.0 604,519,640.0 806,914,922.9 12,890,023,021. 329,559,303.2 448,500,000.0 693,126,157. 636,518.5 382,056,
475,532.74 832,307,181.39 6,989,817,868.77
Liabilities 0 0 8 1 47 1 0 44 8 538.13
Total 166,928,782. 534,646,755.9 690,244,778.7 903,231,584.2 59,096,375,420. 436,073,935.2 31,603,980.1 618,804,772.6 765,755,889. 41,434,37 53,407,277,932.4 533,122,
94,126,542.90 942,228,599.65
liabilities 17 9 1 9 66 6 0 7 33 7.28 0 494.33
Minority
263,112,5
Shareholders’ 223,735,921.31 11,785,075.26 11,368,910.62
78.63
Equity
Shareholders’
equity
788,047,282. 1,196,610,113. 782,445,089.5 712,242,169.6 1,073,186,677. 24,825,936,329. 1,232,488,238 691,661,270. 1,168,830,958. 733,283,395. 1,098,467, 24,676,765,880.9 1,228,68
attributable to 699,986,369.02
33 18 3 8 24 12 .77 61 37 07 791.36 9 9,352.40
shareholders
of the parent
Pro rata share
262,682,427. 179,491,516.9 234,733,526.8 213,672,650.9 308,122,059.6 230,553,756. 175,324,643.7 219,985,018. 219,693,5 307,172,
of the net ass 214,637,335.45 587,200,989.50 209,995,910.71 583,672,702.24
44 8 6 0 9 87 6 52 58.27 338.10
ets calculated
2019 Annual Report
Year-end balance/ Amount of current period Year-beginning balance/ Amount of previous period
Guangdon
Guangdong
Shenzhen Guangdong Ganzhou Zhaoqing Shenzhen Guangdong Ganzhou g Yueke Zhaoqing
Ganzhou Yueke Guoyuan Ganzhou Guoyuan
Huiyan Jiangzhong Gankang Yuezhao Huiyan Jiangzhong Gankang Technolog Yuezhao
Kangda Technology Securities Co., Kangda Securities Co.,
Expressway Expressway Expressway Highway Co., Expressway Expressway Expressway Co., y Petty Highway
Expressway Petty Loan Ltd. Expressway Ltd.
Co., Ltd. Co., Ltd. Co., Ltd. Ltd. Co., Ltd. Co., Ltd. Ltd. Loan Co., Co., Ltd.
Co., Ltd
Ltd
--Goodwill 206,725,818.02 206,725,818.02
The book val
ue of equity i
262,682,427. 179,491,516.9 234,733,526.8 213,672,650.9 308,122,059.6 230,553,756. 175,324,643.7 219,985,018. 219,693,5 307,172,
nvestments in 214,637,335.45 793,926,807.52 209,995,910.71 790,398,520.26
44 8 6 0 9 87 6 52 58.27 338.10
joint venture
s
Fair value of
equity
investment of
associated 737,910,410.22 555,621,862.28
enterprises
with open
quotation
Buinsess 246,670,783. 492,139,509.2 261,253,295.4 187,468,413.1 3,302,720,958.6 560,630,583.9 246,387,205. 511,026,031.4 244,708,403. 181,963,0 555,636,
131,857,238.51 169,762,652.79 2,569,814,200.00
incme 03 1 0 5 1 5 44 2 60 49.20 181.75
100,651,048. 119,901,954.0 124,414,900.0 219,532,873.9 103,069,675. 107,386,985. 75,671,75 233,420,
Net profit 21,255,800.66 20,084,911.58 917,476,547.45 78,708,231.50 18,637,357.87 663,937,167.17
27 9 2 7 97 55 4.19 321.62
Other
comprehensiv 95,017,342.59 -862,492,101.21
e income
Total
100,651,048. 119,901,954.0 124,414,900.0 1,012,493,890.0 219,532,873.9 103,069,675. 107,386,985. 75,671,75 233,420,
comprehensiv 21,255,800.66 20,084,911.58 78,708,231.50 18,637,357.87 -198,554,934.04
27 9 2 4 7 97 55 4.19 321.62
e income
Dividends rec
eived from as 53,000,000.0 21,000,000.0 10,989,12 43,088,8
13,818,419.89 21,000,000.00 2,700,000.00 19,900,496.50 53,207,865.41 9,983,895.07 11,940,297.90
sociates durin 0 0 5.47 59.48
g the year
Other note
2019 Annual Report
IX. Risks Related to Financial Instruments
The main financial instruments of the Company include equity investments, financial products, trust
investments, accounts receivable, accounts payable etc., please refer to Note 6 for detail of related items. The risk
associated with financial instruments, and risk management policies which the Company uses to reduce these risks
are described below. The management of the Company manages and supervises the risks to ensure that the risks
can be controlled within a limited range.
The Company uses sensitivity analysis techniques to analyze the impact of reasonable and possible changes
in risk variables on current profit and loss or shareholders' equity. Since any risk variable seldom changes in
isolation, and the correlation between variables will have a significant impact on the final amount of change in a
risk variable, the following is assumed to be independent of each variable.
(I)The targets and policies of risk management
The target of risk management is to obtain the proper balance between the risk and benefit, to reduce the
negative impact that is caused by the risk of the Company to the lowest level, and to maximize the benefits of
shareholders and other equity investors. Based on the targets of risk management, the basic strategy of the
Company’s risk management is to identify and analyze the risks which are faced by the Company, establish
suitable risk tolerance baseline and proceed the risk management, and supervise a variety of risks timely and
reliably, and control the risks within a limited range.
1.Market risk
（1）Foreign exchange risk
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 (see this Section VII 23). 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 (financial assets available for sale on or before December 31,
2018) 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
On December 31, 2019, 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.
2019 Annual Report
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 "8, Investment in Other Equity Instruments" in VII of this section for details.
3.Liquidity risk
When managing liquidity risks, the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.
X. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
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
（3）Other equity
1,037,474,303.04 1,037,474,303.04
instrument investment
Total assets continuously
1,037,474,303.04 1,037,474,303.04
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 December 31, 2019 of 4.41 yuan, the final calculation of fair value was
1,037,474,303.04 yuan.
3. Fair value of financial assets and liabilities not measured at fair value
At the end of the period, the fair value of financial assets and financial liabilities held by the Company that
are not measured at fair value is as follows:
Items Book value Fair values Remar
Balance at Beginning of the Year Ending amount Affiliated hierarchy k
Financial assets not measured at fair
value
Other eqiuty instrument investment 798,348,301.73 798,348,301.73 798,348,301.73
2019 Annual Report
XI. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
Registered Redistricted company of the company of the
Name Nature
address capital Company's Company’s vote
shareholding ratio ratio
Guangdong Equity management, traffic
26.8 billion
communication Guangzhou infrastructure construction and 24.56% 50.12%
yuan
Group Co., Ltd railway project operation
Notes ：
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Deng
Xiaohua. Date of establishment: June 23, 2000. As of December 31, 2019,Registered capital: 26.8 billion yuan. It
is a solely state-owned limited company. Business scope：equity management, organization of asset reorganization
and optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stock
system transformation, project investment, operation and management, traffic infrastructure construction, highway
and railway project operation and relevant industries, technological development, application, consultation and
services, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; The
value-added communication business.
The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.
Other note：
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see Note VIII(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relation with the Company
Guangdong Guanghui Expressway Co., Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co., Ltd. Associated enterprises of the Company
Shenzhen Huiyan Expressway Co., Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co., Ltd. Associated enterprises of the Company
Ganzhou Gankang Expressway Co., Ltd. Associated enterprises of the Company
Guangdong Yueke Technology Petty Loan Co., Ltd. Associated enterprises of the Company
Other note
4. Other Related parties
2019 Annual Report
Name Relation with the Company
Guangdong East Thinking Management Technology Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Co., ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Technology Inspection Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu Traffic Technology Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Humen Bridge Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Xinyue Asphalt Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Read & Bridge Construction Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., ltd. Fully owned subsidiary of the parent company
Guangdong Guangzhu West Line Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Chaohui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guang-fo-Zhao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangle Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Yunfu Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangshenzhu Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Industry Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Gaoen Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Taishan Coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yuedong Exrpessway Industry Development Co., Ltd. Fully owned subsidiary of the parent company
2019 Annual Report
Name Relation with the Company
Guangdong Pingxing Exrpessway Co., ltd. Fully owned subsidiary of the parent company
Guangdong Litong Real Estate Investment Co., ltd. Fully owned subsidiary of the parent company
Guangdong Gaoda Property Development Co., Ltd. Fully owned subsidiary of the parent company
Heyuan Helong Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Ninghua Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Meihe Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Jiangzhao Expressway Management Center Managed by the parent company
Guangzhongjiang Expressway Project Management Dept Managed by the parent company
Guangdong Nanyue Triffic Yunzhan Expressway Management Dept Managed by the parent company
Guangdong Nanyue Traffic Renbo Expressway Management Center Managed by the parent company
Guangdong Nanyue Traffic Chaozhang Expressway Management Center Managed by the parent company
Guangdong Nanyue Traffic Shaogan Expressway Management Center Managed by the parent company
Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company
Poly Changda Engineering Co., Ltd. Sharing Company
Controlled by the same parent company and
Guangdong Feida Traffic Engineering Co., Ltd.
equity participation unit
Controlled by the same parent company and
Guangdong Jingzhu Expressway Guangzhu North Section Co., Ltd.
equity participation unit
Controlled by the same parent company and
Foshan Guangsan Expressway Co., ltd.
equity participation unit
Controlled by the same parent company and
Jiangmen Jianghe Expressway Co., Ltd.
equity participation unit
Controlled by the same parent company and
Guangdong Shanshan Expressway East Section Co., ltd.
equity participation unit
Other note
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Amount of Amount
Content of Over the
current period of Amount of last
Related parties related trading
previous period
transaction limit or not?
period
1.Business cost
Guangdong Union electronic services co., Ltd. Service 15,266,915.03 No 15,478,247.27
2019 Annual Report
Amount of Amount
Content of Over the
current period of Amount of last
Related parties related trading
previous period
transaction limit or not?
period
Guangdong Traffic Technology Inspection Co., Project
5,690,112.92 No 5,380,171.92
Ltd. funds
Project
Guangdong Feida Traffic Engineering Co., Ltd. 3,807,139.23 No
funds
Guangdong Litong Technology Investment Co., Project
3,605,631.86 No 3,517,587.00
Ltd. funds
Project
Guangzhou Xinyue Traffic Technology Co., Ltd. 3,377,412.00 No
funds
Project
Guangdong Lulutong Co., Ltd. 2,389,297.99 No 1,985,356.36
funds
Project
Boly Changda Engineering Co., Ltd. fund, 2,201,322.00 No 29,662,147.00
service
Project
Guangdong Hualu Traffic Technology Co., Ltd. 1,781,263.00 No 6,084,009.00
funds
Project
Guangdong Humen Bridge Co., Ltd. fund, 1,047,385.24 No 1,470,696.80
service
Guangdong Xinyue Asphalt Co., Ltd. Service 376,434.90 No
Guangdong Tongyi Expressway Service Area Co.,
Service 225,055.47 No 747,966.07
Ltd.
Guangdong Jingzhu Expressway Guangzhu North
Service 107,017.44 No
Section Co., Ltd.
Guangdong East Thinking Management
Service 105,850.00 369,650.00
Technology Development Co., Ltd.
Guangdong Guanghui Expressway Co., Ltd. Service 49,480.49 No
Project
Guangdong Xinyue Traffic Investment Co., Ltd. 9,416.88 No 770,454.00
funds
Subtotal 40,039,734.45 65,466,285.42
2.Financial expenses
Guangdong Gufanghui Expressway Co., Ltd. Interest 5,195,531.25 No 3,231,506.25
Guangdong Jiangzhong Expressway Co., Ltd. Interest 1,428,975.00 No 187,920.00
Ganzhou Gankang Expressway Co., Ltd. Interest No 765,623.34
Subtotal 6,624,506.25 4,185,049.59
3.Management expenses
Guangdong East Thinking Management
Service 236,500.00 No 404,091.29
Technology Development Co., Ltd.
Guangdong Tongyi Expressway Service Area Co.,
Service 87,189.00 No
Ltd.
Guangdong Lulutong Co., Ltd. Service 48,000.00 No
Guangdong Expressway Media Co., Ltd. No 606,132.08
Subtotal 371,689.00 1,010,223.37
4.Construction in process
2019 Annual Report
Amount of Amount
Content of Over the
current period of Amount of last
Related parties related trading
previous period
transaction limit or not?
period
Purchase
Boly Changda Engineering Co., Ltd. 353,181,578.97 No 181,773,095.95
assets
Guangdong Litong Technology Investment Co., Purchase
26,225,312.00 No 859,450.00
Ltd. assets
Purchase
Guangdong Xinyue Traffic Investment Co., Ltd. 10,173,639.28 No 1,136,466.97
assets
Purchase
Guangdong Feida Traffic Engineering Co., Ltd. 7,547,509.00 No
assets
Purchase
Guangdong Hualu Traffic Technology Co., Ltd. 6,724,808.26 No 5,156,328.48
assets
Purchase
Guangdong Lulutong Co., Ltd. 363,747.00 No
assets
Guangdong Traffic Technology Inspection Co., Purchase
45,030.00 No
Ltd. assets
Subtotal 404,261,624.51 188,925,341.40
5.Fixed assets
Guangdong East Thinking Management Purchase
358,440.98 No
Technology Development Co., Ltd. assets
Purchase
Guangdong Feida Traffic Engineering Co., Ltd. 108,300.00 No
assets
Purchase
Guangdong Lulutong Co., Ltd. No 56,680.00
assets
Guangdong Litong Technology Investment Co., Purchase
No 427,500.00
Ltd. assets
Subtotal 466,740.98 484,180.00
6.Intangible Assets
Guangdong East Thinking Management Purchase
462,500.00 No 297,950.00
Technology Development Co., Ltd. assets
Guangdong Litong Technology Investment Co., Purchase
301,800.00 No 185,000.00
Ltd. assets
Subtotal 764,300.00 482,950.00
Related transactions on sale goods and receiving services
In RMB
Amount of Amount of
Related party Content
current period previous period
1.Business income
Commission
Jingzhu Expressway Guangzhu North section Co., Ltd. 20,047,032.07 17,120,754.74
management fee
Guangdong Expressway Co., Ltd. Project fund 4,310,630.18 5,812,437.52
Guangdong Xinyue Traffic Investment Co., Ltd. Project fund 2,208,097.34 1,883,038.06
Zhaoqing Yuezhao Highway Co., Ltd. Project fund 2,155,810.23 856,469.13
2019 Annual Report
Amount of Amount of
Related party Content
current period previous period
Guangdong Road & Bridge Construction Development Co., Ltd. Project fund 2,144,812.90 2,543,533.92
Guangdong Guanghui Expressway Co., Ltd. Project fund 2,009,735.59 2,437,801.44
Guangdong Highway Construction Co., Ltd. Project fund 1,574,566.33 594,659.08
Shezhen Huiyan Expressway Co., Ltd. Project fund 1,121,184.34 53,773.58
Guangdong Feida Traffic Engineering Co., Ltd. Project fund 871,473.15
Guangdong Guangzhu West line Expressway Co., ltd. Project fund 751,475.04 729,132.79
Ganzhou Gankang Expressway Co., Ltd. Project fund 737,114.13
Guangdong Boda Expressway Co., Ltd. Project fund 730,270.82 520,924.53
Guangdong Jiangzhong Expressway Co., Ltd. Project fund 635,673.34 276,415.10
Ganzhou Kangda Expressway Co., Ltd. Project fund 513,990.93
Guangdong Chaohui Expressway Co., Ltd. Project fund 425,905.66 384,835.85
Guangdong Maozhan Expressway Co., Ltd. Project fund 418,867.92 206,603.77
Guangdong Kaiyang Expressway Co., Ltd. Project fund 380,652.28 507,128.03
Guangdong Guangfozhao Expressway Co., ltd. Project fund 331,283.02 342,452.84
Guangdong Guangle Expressway Co., Ltd. Project fund 300,849.06 290,094.34
Guangdong Zhaoyang Expressway Co., Ltd. Project fund 236,460.18 172,641.51
Guangdong Yangmao Expressway Co., Ltd. Project fund 166,981.13 166,981.13
Yunfu Guangyun Expressway Co., Ltd. Project fund 164,469.85 94,622.64
Guangdong Jiangzhao Expressway Co., Ltd. Project fund 130,188.68 147,169.81
Foshan Guangsan Expressway Co., Ltd. Project fund 120,283.02
Guangshenzhu Expressway Co., Ltd. Project fund 114,655.17
Jiangmen Jianghe Expressway Co.,Ltd. Project fund 110,377.36
Guangdong Luoyang Expressway Co., Ltd. Project fund 107,547.17 107,547.17
Guangdong Traffic Industry Investment Co., Ltd. Project fund 90,566.04 118,867.92
Guangdong Gaoen Expressway Co., ltd. Project fund 79,245.28
Guangdong Humen Bridge Co., Ltd. Project fund 60,849.06 133,435.27
Guangdong Expressway Media Co., Ltd. Project fund 44,213.00
Guangdong Yueyun Traffic Co., Ltd. Project fund 42,452.83 42,452.83
Guangdong Union Electron Service Co., ltd. Project fund 10,471.70
Guangdong Litong Technology Investment Co., Ltd. Project fund 35,384.62
Guangdong Taishan Costal Expressway Co., Ltd. Project fund -59,433.96 59,433.96
Guangzhongjiang Expressway Project Management Dept Project fund -89,622.64 197,169.81
2019 Annual Report
Amount of Amount of
Related party Content
current period previous period
Subtotal 42,999,128.20 35,835,761.39
2.Non-operating income
Guangdong Xinyue Traffic Investment Co., Ltd. Tenter 862.07
Guangdong Lulutong Co., Ltd. Tenter 862.07
Subtotal 1,724.14
3..Assets disposal income
Transfer of
Guangdong Union electronic services co., Ltd. 18,755,848.99
intellectual property
Subtotal 18,755,848.99
Note
(2) Information of related lease
The Company was lessor：
In RMB
Category of lease The lease income The lease income
Name of lessee
assets confirmed in this year confirmed in last year
Advertising lease
Guangdong Expressway Media Co., Ltd. 3,556,249.10 3,436,468.80
Guangdong Tongyi Expressway Service Area Co., Ltd. Service area lease 2,297,830.86 5,859,573.97
Subtotal 5,854,079.96 9,296,042.77
- The company was lessee：
In RMB
The lease income Category of
Lessor Category of leased assets
confirmed in this year leased assets
Guangdong Litong Real Eatate Investment Co., Ltd Office space 8,876,387.85 9,254,826.21
Guangdong Guanghui Expressway Co., Ltd. Advertising column lease 692,571.43 551,400.00
Zhaoqing Yuezhao Highway Co., Ltd. Advertising column lease 248,061.50 248,062.50
Zhaoqing Yuezhao Highway Co., Ltd. Equipment lease 116,504.86 116,504.85
Guangzhou Yueyun Traffic Co., Ltd. Car rental fee 190,640.78
Guangdong Kaiyang Expressway Co., Ltd. Equipment lease 106,194.69 116,504.85
Guangdong Maozhan Expressway Co., Ltd. Equipment lease 106,194.69 103,448.28
Guangdong Gaoda Property Development Co., Ltd. Office space 95,436.00 60,999.64
Guangdong Jingzhu Expressway Guangzhu North
Equipment lease 8,918.12
Section Co., ltd.
Subtotal 10,431,991.80 10,460,664.45
2019 Annual Report
Note
（3）Related-party guarantee
The Company was Guarantor
Nil
The Company was secured party
In RMB
Execution
Guarantor Guarantee amount Start date End date
accomplished or not
Guangdong Communication Group
1,725,000,000.00 September 25,2012 March 25,2020 No
Co., Ltd.
Note: Guangdong Communications Group Co., Ltd., the controlling shareholder of the company, provides
the company with an unconditional and irrevocable joint and several liability guarantee in full amount of principal
and interest for accepting the insurance creditor's rights investment plan of Pacific Asset Management Co., Ltd. To
this end, the company provided counter guarantee to Guangdong Communication Group with 75% equity of
Guangzhou Guangzhu Traffic Investment Management Co., Ltd.
(4) Inter-bank lending of capital of related parties
In RMB
Amount borrowed
Related party Initial date Due date Notes
and loaned
Borrowed
Guangdong Guanghui Expressway Co., Ltd. 30,000,000.00 April 1,2019 March 31,2020
Guangdong Guanghui Expressway Co., Ltd. 105,000,000.00 April 2,2019 April 1,2020
Guangdong Guanghui Expressway Co., Ltd. 45,000,000.00 May 22,2018 May 21,2019
Guangdong Guanghui Expressway Co., Ltd. 45,000,000.00 September 25,2019 September 24,2020
Guangdong Jiangzhong Expressway Co
36,000,000.00 November 14,2018 November 13,2023
Loaned., Ltd.
Loaned
(5) Related party asset transfer and debt restructuring
Nil
(6) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management personnel 7,604,100.00 6,638,600.00
2019 Annual Report
(7) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
In RMB
Items Amount of current period Amount of previous period
Balance of Deposit 813,272,070.75 640,041,849.19
Interest Income 8,705,455.79 5,695,294.50
Pricing Principle Reference to the deposit rate of the people's Bank of China for the same period
On December 25, 2017 and December 22, 2017, the Company signed the Cash Management Business
Cooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and Industrial and
Commercial Bank of China Guangdong Branch and signed the Cash Management Business Cooperation
Agreement with Guangdong Communications Group Finance Co., Ltd. and China Construction Bank Corporation.
Guangdong Branch respectively, to join in the cash pool of Guangdong Communications Group Finance Co., Ltd.
-On June 15, 2016,The company ’ s 29th meeting (Provisional) of the seventh board of directors was
convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of
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.
③The subsidiary Guangdong Gaosu Science and Technology Investment Co., Ltd. signed the Blue Channel
Related Asset Transfer Contract with the affiliated party Guangdong Unitoll Collection Inc, transferring the rights
related to the Blue Channel that have not been developed and completed as an asset group to the affiliated party
Guangdong Unitoll Collection Inc at a transfer price of RMB 19,881,200.00, see Note VII, 40 for details.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Account Guangdong Union electron Service Co.,
57,172,014.20 45,159,424.41
receivable Ltd.
Account
Guangdong Humen Bridge Co., Ltd. 16,693,904.73 12,579,159.31
receivable
Account Jingzhu Expressway Guangzhu North
6,168,200.00 4,450.00 5,280,850.02
receivable Section Co., Ltd.
2019 Annual Report
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Account Guangdong Xinyue Traffic Investment Co.,
2,076,440.10 160,715.94 1,828,273.53 202,508.01
receivable Ltd.
Account
Guangdong Expressway Media Co., Ltd. 1,909,300.00
receivable
Account Guangdong Feida Traffic Engineering Co.,
1,332,954.50 103,072.45
receivable Ltd.
Account Guangdong Road & Bridge Construction
564,194.77
receivable Development Co., Ltd.
Account
Guangdong Boda Expressway Co., Ltd. 515,108.00
receivable
Account Guangdong Guanghui Expressway Co.,
501,765.65 2,112.57 901,822.65
receivable Ltd.
Account Guangdong Guangzhu West Line
318,280.00 294,260.00
receivable Expressway Co., Ltd.
Account Guangdong Highway Construction Co.,
256,484.00 3,818.00 358,484.00 109,152.00
receivable Ltd.
Account Guangdong Litong Technology Investment
68,542.00 68,542.00 6,854.20
receivable Co., Ltd.
Account
Guangdong Expressway Co., Ltd. 60,000.00 873,408.00
receivable
Account
Guangdong Yueyun Traffic Co., Ltd. 45,000.00
receivable
Account
Zhaoqing Yuezhao Highway Co., Ltd. 4,829.98
receivable
Account Guangzhongjiang Expressway Project
95,000.00
receivable Management Dept
Account Guangdong Taishan Coastal Expressway
63,000.00
receivable Co., Ltd.
Account
Guangdong Kaiyang Expressway Co., ltd. 178,157.15
receivable
Account
Guangdong Jiangzhao Expressway Co., ltd. 156,000.00
receivable
Total 87,637,187.95 274,168.96 67,886,211.05 318,514.21
Advanced Guangdong Litong Real Estate Investment
735,092.38 735,092.38
payment Co., Ltd.
Advanced
Zhaoqing Yuezhao Highway Co., Ltd. 144,703.00 144,702.50
payment
Total 879,795.38 879,794.88
Dividend Guangdong Yueke Technology Petty Loan
6,000,000.00
receivable Co., Ltd.
Total 6,000,000.00
Other Account Guangdong Litong Real Estate Investment
1,515,077.22 1,505,864.00
receivable Co., Ltd.
Other Account Guangdong Guanghui Expressway Co.,
1,462,587.90 1,478,904.68
receivable Ltd.
2019 Annual Report
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Other Account
Guangdong Expressway Media Co., Ltd. 896,321.01 275,166.57
receivable
Other Account
Guangdong Expressway Co., Ltd. 620,117.78 638,502.27
receivable
Other Account
Zhaoqing Yuezhao Highway Co., Ltd. 431,442.48 437,463.87
receivable
Other Account Guangdong Xinyue Traffic Investment Co.,
385,810.10 415,442.60
receivable Ltd.
Other Account
Guangshenzhu Expressway Co., Ltd. 185,014.40 187,533.46
receivable
Other Account Guangdong Feida Traffic Engineering Co.,
139,150.75
receivable Ltd.
Other Account Guangdong Guangzhu West Line
104,727.60 186,371.32
receivable Expressway Co., Ltd.
Other Account Guangdong Highway Construction Co.,
87,662.45 129,529.29
receivable Ltd.
Other Account Guangdong Road & Bridge Construction
87,153.75 123,604.83
receivable Development Co., Ltd.
Other Account
Guangdong Boda Expressway Co., Ltd. 50,011.00 52,467.45
receivable
Other Account Guangdong Jiangzhong Expressway Co.,
28,120.00 28,474.26
receivable Ltd.
Other Account Guangdong Gaoda Property Development
15,906.00 11,748.00
receivable Co., Ltd.
Other Account Guangdong Shenshan Expressway East
12,000.00 12,081.56
receivable Section Co., Ltd.
Other Account
Guangdong Maozhan Expressway Co., Ltd. 8,747.20 14,074.11
receivable
Other Account
Guangdong Shanfen Expressway Co., Ltd. 8,028.80 8,028.80
receivable
Other Account Guangdong Yuedong Expressway Industry
7,367.20 7,367.20
receivable Development Co., Ltd.
Other Account
Guangdong Guangle Expressway Co., Ltd. 7,248.00 29,832.90
receivable
Other Account
Guangdong Humen Bridge Co., Ltd. 6,869.00 9,141.89
receivable
Other Account Guangdong Jingzhu Expressway Guangzhu
6,064.00 6,202.46
receivable Section Co., Ltd.
Other Account Guangdong Litong Technology Investment
5,273.00 5,273.00
receivable Co., Ltd.
Other Account
Guangdong Yueyun Traffic Co., Ltd. 3,032.00 3,032.00
receivable
Other Account Hongkong Zhuhai Macao Bridge
3,000.00 3,000.00
receivable Connection line management center
2019 Annual Report
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Other Account
Jiangmen Jianghe Expressway Co., Ltd. 2,539.20
receivable
Other Account
Heyuan Helong Expressway Co., Ltd. 467.14
receivable
Other Account Guangdong Zhaoyang Expressway Co.,
4,304.00
receivable Ltd.
Other Account
Yunfu Guangyun Expressway Co., Ltd. 5,831.32
receivable
Other Account
Guangdong Chaohui Expressway Co., Ltd. 2,819.90
receivable
Other Account
Guangdong Ninghua Expressway Co., Ltd. 271.81
receivable
Other Account
Guangdong Meihe Expressway Co., Ltd. 574.17
receivable
Other Account
Guangdong Kaiyang Expressway Co., Ltd. 45,999.77
receivable
Other Account Guangdong Guangfozhao Expressway Co.,
3,619.10
receivable Ltd.
Other Account Guangdong Yangmao Expressway Co.,
29,265.49
receivable Ltd.
Total 6,079,270.84 5,662,259.22
Other
Non-Current Boly Changda Engineering Co., Ltd. 48,400,293.16 4,216,292.57
Assets
Other
Guangdong Hualu Traffic Technology Co.,
Non-Current 277,117.00 796,711.00
Ltd.
Assets
Other
Guangdong Xinyue Traffic Investment Co.,
Non-Current 823,423.25
Ltd.
Assets
Total 48,677,410.16 5,836,426.82
Long-term
Guangdong Jingzhu Expressway Guangzhu
amortization 1,114,764.44 1,221,781.88
North Section Co., Ltd.
costs
Total 1,114,764.44 1,221,781.88
（2）Payables
In RMB
2019 Annual Report
Amount at year Amount at year
Name Related party
end beginning
Guangzhongjiang Expressway Project Management
Account payable 28,000,000.00
Dept
Account payable Guangdong Highway Construction Co., Ltd. 25,630,651.00 25,630,651.00
Account payable Poly Changda Engineering Co., Ltd. 16,685,096.00 12,166,883.00
Account payable Guangdong Expressway Co., Ltd. 8,746,491.18 8,746,491.18
Account payable Guangdong Feida Traffic Engineering Co., Ltd. 7,588,881.23
Account payable Guangdong Litong Technology Investment Co., Ltd. 2,663,010.00 1,631,800.00
Account payable Guangdong Xinyue Traffic Investment Co., Ltd. 1,237,761.42 1,829,141.32
Account payable Guangdong Lulutong Co., ltd. 852,623.59
Account payable Guangdong Guanghui Expressway Co., Ltd. 742,051.92 551,400.00
Account payable Guangdong Hualu Traffic Technology Co., Ltd. 276,371.00 2,913,206.00
Account payable Guangzhou Xinyue Asphalt Co., Ltd. 2,537,848.10
Account payable Guangdong Maozhen Expressway Co., Ltd. 120,000.00
Total 92,422,937.34 56,127,420.60
Other Payable account Guangdong Guanghui Expressway Co., Ltd. 184,505,512.50 46,096,200.00
Other Payable account Poly Changda Engineering Co., Ltd. 19,879,471.19 11,346,061.22
Other Payable account Guangdong Feida Traffic Engineering Co., Ltd. 2,092,641.20
Other Payable account Guangdong Xinyue Traffic Investment Co., Ltd. 1,331,893.22 1,779,918.51
Other Payable account Guangdong Hualu Traffic Technology Co., Ltd. 1,077,965.88 786,185.88
Guangdong East Thinking Management Technology
Other Payable account 416,398.40 531,573.69
Development Co., Ltd.
Other Payable account Guangdong Union Electron Service Co.,Ltd. 367,300.00 3,800,226.36
Other Payable account Guangdong Litong Technology Investment Co., Ltd. 247,070.50 203,655.20
Guangzhongjiang Expressway Project Management
Other Payable account 200,000.00 200,491.55
Dept
Other Payable account Guangdong Tongyi Expressway Service Area Co., Ltd. 120,000.00 120,000.00
Other Payable account Guangzhou Xinyue Traffic Technology Co., Ltd. 101,323.00
Other Payable account Guangdong Maozhen Expressway Co., Ltd. 70,000.00 70,000.00
Other Payable account Guangdong Lulutong Co., Ltd. 10,912.41 165,249.80
Guangdong Nanyue Yunzhan Expressway
Other Payable account 821.38
Management Center
Other Payable account Guangdong Zhaoyang Expressway Co., Ltd. 2,145.78
2019 Annual Report
Amount at year Amount at year
Name Related party
end beginning
Guangdong Jingzhu Expressway Guangzhu North
Other Payable account 9,327.00
Section Co., Ltd.
Guangdong Nanyue Traffic Renbo Expressway
Other Payable account 225.79
Management Center
Guangdong Nanyue Traffic Chaozhang Expressway
Other Payable account 282.67
Management Center
Other Payable account Shenzhen Huiyan Expressway Co., Ltd. 391.36
Guangdong Nanyue Shaogan Expressway
Other Payable account 546.89
Management Center
Other Payable account Guangdong Boda Expressway Co., Ltd. 100.97
Guangdong Jiangzhao Expressway Management
Other Payable account 7,217.12
Center
Other Payable account Guangdong Shanfen Expressway Co., Ltd. 751.35
Guangdong Yuedong Expressway Industry
Other Payable account 1,018.37
Development Co., ltd.
Other Payable account Guangdong Expressway Co., Ltd. 18,548.20
Other Payable account Guangdong Traffic Industry Investment Co., Ltd. 2,347.68
Other Payable account Guangdong Highway Construction Co., Ltd. 689.83
Guangdong Road & Bridge Construction Development
Other Payable account 551.99
Co., Ltd.
Other Payable account Guangdong Pingxing Expressway Co., Ltd. 45.41
Other Payable account Guangdong Luoyang Expressway Co., Ltd. 319.21
Total 210,420,488.30 65,144,893.21
Non-current liabilities due 1
Guangdong Jiangzhong Expressway Co., Ltd. 43,065.00 43,065.00
year
Total 43,065.00 43,065.00
Long-term payable Guangdong Jiangzhong Expressway Co., Ltd. 36,000,000.00 36,000,000.00
Total 36,000,000.00 36,000,000.00
XII. Commitments
1. Significant commitments
Significant commitments at balance sheet date
On June 15, 2016, the Company’ 29th meeting (Provisional) of the seventh board of directors was convened.
In the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltd pertaining to the
2019 Annual Report
Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway
was examined and approved, agreed that based on the approved total investment amount by relevant government
department, then the company’s subsidiary- Guangdong Fokai Expressway Co., Ltd carries out the investment
and construction of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway; the company increases funding for Guangdong Provincial Fokai Expressway Co., Ltd
pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway, with the contributed funds as a proportion of 35% of the total investment amount approved
by relevant government department. The afore-said item had been examined and approved in the first
extraordinary general shareholder meeting, The Company had received the approval of the National Development
and Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section Rebubuilding and
Expansion Project(NO.1874-2016-NDRC Infrastructure Document)from Guangdong Provincel Development and
reform Commission On October 11, 2016, agreed with the implementation of the Guangdong Provincial
Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the total investment
of this project is about 3.513 billion yuan(the static investment is about 3.289 billion yuan), of which the project
capital is 1.23 billion yuan that accounts for 35% of the total investment and such amount of the project capital
will be provided by Guangdong Provincial Fokai Expressway Co., Ltd, and the rest amount of 2,283 billion yuan
will be solved by using bank loans. According to the "Official Reply to the preliminary design of reconstruction
and extension project of Guangdong Sanbao to Shuikou Road by Ministry of Transport" (No.73-2017 Transport
Road Document) issued by Guangdong Provincial Department of Transport, the Ministry of Transport checked
and ratified that the general estimate of the preliminary design of reconstruction and extension project of
Guangdong Sanbao to Shuikou Road is RMB 3.426 billion. As of December 31,2019, The accumulated expenses
occurred of Sanboto Shuikou Highway extension project was 2.582 billion yuan.
Fulfilled as of December 31,
No Contract Counterparty Economic Content Contract Amount
2019
1 China Railway Tunnel Group Co., Ltd. Civil Engineering 251,026,485.00 231,556,089.00
2 Boli Changda Engineering Co., Ltd. Civil Engineering 624,878,240.00 531,858,267.92
3 China Railway 18th Bureau Group Co., Ltd. Civil Engineering 219,974,609.00 191,897,525.38
4 CCCC First Navigation Engineering Bureau 355,014,108.00 28,837,1367.24
Civil Engineering
Co., Ltd
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be stated
XIII. Events after balance sheet date
1. Significant events had not adjusted
In RMB
2019 Annual Report
Number of impacts on financial Cause of the impact
Items Contents
status and operating results cannot be estimated
(1) The third (extraordinary) meeting of the ninth board of According to the relevant
directors of the company deliberated and passed the provisions of the Accounting
Proposal on Changes in Accounting Estimates and agreed Standards for Business Enterprises
to adopt the Report on Traffic Volume Forecast and Toll No.28 - Accounting Policies,
Revenue of Foshan-Kaiping Expressway, Report on Changes in Accounting Estimates
Traffic Volume Forecast and Toll Revenue of Guangzhu and Error Correction, the above
Other
Section of Beijing-Zhuhai Expressway Co., Ltd." adjustments are changes in
(hereinafter referred to as "2019 Forecast Traffic Volume") accounting estimates, and will be
issued by Guangdong Communication Planning and subject to accounting treatment by
Design Institute Co., Ltd. for Guangdong Expressway future applicable method, with no
Development Co., Ltd. in 2019 as depreciation basis from affect on the financial status and
January 1, 2020. operating results of previous years.
(2) Affected by the new coronavirus pneumonia The above policies
epidemic, with the consent of the State Council, the will have a negative
Ministry of Transport has notified that toll roads across the impact on the
Other country will be free of tolls from zero o'clock on February Group's operating
17, 2020 until the end of the epidemic prevention and income in 2020.,
control approved by the State Council. The specific the specific impact
deadline will be notified separately. is still uncertain.
2.Profit distribution
In RMB
Profit or dividend to be distributed 882,320,185.17
XIV. Other significant events
1. Segment information
The company's business for the Guangfo Expressway , the Fokai Expressway and Jingzhu Expressway Guangzhu
Section toll collection and maintenance work, the technology industry and provide investment advice, no other
nature of the business, no reportable segment.
2.Other important transactions and events have an impact on investors decision-making
(1)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii 035#
collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads the
collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10, 2009, Jiujiang Bridge opened
to traffic has been restored.
On June 19,2007 ， The Ministry of Communications, the State Production Safety Supervision and
Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15
2019 Annual Report
"Jiujiang Bridge Collision Accident", initially determined the causes of the accident are: the incident ship
suddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain neglected looking out, did not
take proper measures and deviated from the main channel, touched the 325 National Road Jiujiang Bridge the
non-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an unilateral
On July 19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August
22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping
Company Limited and Yang Xiong to undertake the compensation 25,587,684 yuan for the loss caused by
collapsing of Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to
the (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case
was suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial Government had
not made the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the
proceeding. In September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed
the proceedings. On December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case.
Currently, Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide,
therefore, on January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. On September 17,
2013, the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings,
the court decided to resume the trial. On December 19, 2013, the Guangzhou Maritime Court opened a court
session, has not yet made the first-instance judgment. On March 7, 2014 the Court made the first instance verdict:
the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong compensated the plaintiff Fokai
Expressway Co., Ltd. toll revenue losses of 19,357,500.96 yuan; the court dismissed the plaintiff other aspirations.
The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong Provincial Higher
People's Court ruled on June 5, 2014, the case discontinued proceedings. By the end of the report period, the
abatement of action causes are already removed and the provincial higher court restores the hearing and conducts
the investigation on April 21, 2017. On 27 February 2020, the company received a court decision of second
instance, which rejected the appeal and upheld the original sentence.
(2)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial Expressway
Development Co., Ltd. was held of May 10, 2012. The meeting examined and adopted the proposal Concerning
the Company ’ s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. The
Company was approved to accept the insurance bond investment plan made by Pacific Asset Management Co.,
Ltd. The amount of proceeds to be raised is not more than 1.5 billion yuan . Floating interest rate plus guaranteed
base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate of
RMB loan with a term of over five years on the day when the investment fund of the insureance company is
transferred into the Company’s account and the corresponding days of the future years, which shall be adjusted
once each year. The guaranteed base interest rate is 5.6%. The concrete amount of raised proceeds shall be
within maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to the
Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan between
Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the
Company to implement the above-mentioned matters.
The Company was approved to provide counter guarantee to Guangdong Communication Group
Co.,Ltd.with 75% equity of Guangdong Fokai Expressway Co., Ltd. Held by it . as of December 31, 2016, the
company has borrowed 1.5 billion yuan.
2019 Annual Report
（3）The 19th (Provisional)Meeting of the Eighth board of directors of Guangdong Provincial Expressway
Development Co., Ltd. was held of August 7, 2018. The meeting examined and approved the Proposal on Issuing
Medium-Term Notes ， Agree that the company intends to register in the China Interbank Market Dealers
Association with a quota of not more than 3.4 billion yuan (inclusive), which is within 40% of the company's
latest audited net assets. Apply for a one-time or installment in a timely manner, with a term of no less than 5
years (including 5 years), and raise funds to repay the loan and replenish working capital; The matter has been
passed by the resolution of the first interim shareholders' meeting in 2018.
On January 4, 2019, the dealers association issued a Notice of Acceptance of Registration (ZSXZ [2019]
MTN 9). The amount of acceptance of the company's medium-term notes is 3.4 billion yuan, and the amount of
registration is valid for 2 years from the date of receipt of the notice of acceptance, and it is jointly underwritten
by Industrial and Commercial Bank of China Limited and China Construction Bank Limited. The company
borrowed 680 million yuan on March 1, 2019.
（4） According to the Implementation Plan for Accelerating the Electronic Non-stop Quick Toll Application
Services on Expressways (FGJC [2019] No. 935) issued by the National Development and Reform Commission
and the Ministry of Transport and the Notice on Vigorously Promoting the Development and Application of ETC
on Expressways issued by the General Office of the Ministry of Transport, ETC users of expressway traffic
vehicles shall strictly implement the basic preferential policies of not less than 5% of the vehicle tolls since July 1,
2019. The above policies are expected to have an adverse impact on the Group's operating income, but the specific
impact has not yet determined.
XV..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
Bad debt Bad debt
Book Balance Book Balance
provision provision
Category
Amount Proportio Amo Prop Book value Amount Proportio Amou Propo Book value
n(%) unt ortio n(%) nt rtion(
n(%) %)
Of which
Accrual of bad debt
21,864,051.27 100.00% 21,864,051.27 18,405,847.15 100.00% 18,405,847.15
provision by portfolio
Of which：
Aging portfolio 21,864,051.27 100.00% 21,864,051.27 18,405,847.15 100.00% 18,405,847.15
Total 21,864,051.27 100.00% 21,864,051.27 18,405,847.15 100.00% 18,405,847.15
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
2019 Annual Report
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 21,864,051.27
Total 21,864,051.27
（2）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services Co., Ltd. 21,864,051.27 100.00%
Total 21,864,051.27 100.00%
2.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 7,205,472.90 1,205,472.90
Other receivable 6,230,178.29 6,238,161.64
Total 13,435,651.19 7,443,634.54
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks
1,205,472.90 1,205,472.90
investment No.1 Limited partnership enterprise
Guangdong Yueke Technology Petty Loan Co., Ltd. 6,000,000.00
Total 7,205,472.90 1,205,472.90
（2）Significant dividend receivable aged over 1 year
Nil
（2） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
2019 Annual Report
Nature Closing book balance Opening book balance
Balance of settlement funds for securities transactions 30,844,110.43 30,844,110.43
Cash deposit 1,935,101.00 1,930,943.00
Petty cash 1,700,634.57 1,605,100.00
Other 2,594,442.72 2,702,118.64
Less：Bad debt provision -30,844,110.43 -30,844,110.43
Total 6,230,178.29 6,238,161.64
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
30,844,110.43 30,844,110.43
1, 2019
Balance as at January
—— —— —— ——
1, 2019 in current
Banlance as at
30,844,110.43 30,844,110.43
December 31,2019
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year 3,381,367.15
1-2 years 443,715.70
2-3 years 1,490,184.00
Over 3 years 31,759,021.87
3-4 years 463,491.88
Over 5 years 31,295,529.99
Total 37,074,288.72
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
2019 Annual Report
Amount of change in the current period
Opening Reversed or
Category Closing balance
balance Accrual collected write - off
amount
Financial assets with significantly
30,844,110.43 30,844,110.43
different credit risk
Total 30,844,110.43 30,844,110.43
4) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion of the
total year end
Closing Closing balance of
Name Nature Aging balance of the
balance bad debt provision
accounts
receivable(%)
Securities trading s
Kunlun Securities Co.,Ltd 30,844,110.43 Over 5 years 83.20% 30,844,110.43
ettlement funds
Petty cash Petty cash 1,700,634.57 Within 1 year 4.59%
Guangdong Litong Real
Estates Investment Co., Deposit 1,505,864.00 2-3 years 4.06%
Ltd.
Foshan Hezhan Yinghui
Disposal of fixed
Property Management Co., 935,820.00 Within 1 year 2.52%
assets
Ltd.
Guangdong Expressway Entrustment
463,491.88 3-4 years 1.25%
Co.,Ltd. management fee
Total -- 35,449,920.88 -- 95.62% 30,844,110.43
3. Long-term equity investment
In RMB
Items End of term Beginning of term
2019 Annual Report
Impairmen Impairment
Book Balance Book value Book Balance Book value
t provision provision
Investment in
1,533,665,008.81 1,533,665,008.81 1,533,665,008.81 1,533,665,008.81
subsidiaries
Investment in
joint ventures 3,255,739,898.36 3,255,739,898.36 3,146,092,065.25 3,146,092,065.25
and associates
Total 4,789,404,907.17 4,789,404,907.17 4,679,757,074.06 4,679,757,074.06
（2）Investment to the subsidiary
In RMB
Increase /decrease in reporting
Closing
period
balance of
Name Opening balance Closing balance
Add impairment
Other
investment provision
Jingzhu Expressway Guangzhu
419,105,446.88 419,105,446.88
Section Co., Ltd.
Guangzhou Guangzhu Traffic
Investment Management Co., 859,345,204.26 859,345,204.26
Ltd.
Guangfo Expressway Co., ltd. 154,982,475.25 154,982,475.25
Guangdong Expressway
Technology Investment Co., 95,731,882.42 95,731,882.42
Ltd.
Yuegao Capital Investment
4,500,000.00 4,500,000.00
(Hengqin) Co., Ltd.
1,533,665,008.
Total 1,533,665,008.81
81
2019 Annual Report
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Decre Adjustment of balance of
Name Opening balance Add Declaration of Withdrawn Closing balance
ased Gain/loss of other Other equity impairmen
invest cash dividends impairment Other
invest Investment comprehensive changes t provision
ment or profit provision
ment income
I. Joint ventures
Guangdong Guanghui Expressway
992,521,223.58 300,795,505.08 25,795,500.00 270,638,655.14 1,048,473,573.52
Co., Ltd.
Subtotal 992,521,223.58 300,795,505.08 25,795,500.00 270,638,655.14 1,048,473,573.52
II. Associated enterprises
ZhaoqingYuezhao Highway Co.,
307,172,338.10 54,157,587.00 53,207,865.41 308,122,059.69
Ltd.
ShenzhenHuiyan Expressway Co.,
230,553,756.87 32,128,670.57 262,682,427.44
Ltd.
Guangdong Jiangzhong
175,324,643.76 17,985,293.11 13,818,419.89 179,491,516.98
Expressway Co., Ltd.
Ganzhou Kangda Expressway Co.,
219,985,018.52 35,748,508.34 21,000,000.00 234,733,526.86
Ltd.
Ganzhou Gankang Expressway
209,995,910.71 6,376,740.19 2,700,000.00 213,672,650.90
Co., Ltd.
Guangdong Yueke Technology
219,693,558.27 943,777.18 6,000,000.00 214,637,335.45
Petty Loan Co., Ltd.
Guoyuan Securities Co.,Ltd. 790,845,615.44 21,367,654.65 1,614,033.93 19,900,496.50 793,926,807.52
2,153,570,841.6
Subtotal 168,708,231.04 1,614,033.93 116,626,781.80 2,207,266,324.84
7
3,146,092,065.2
Total 469,503,736.12 1,614,033.93 25,795,500.00 387,265,436.94 3,255,739,898.36
5
2019 Annual Report
（3）Other note
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 1,276,614,430.61 779,246,352.00 1,327,567,186.19 707,219,409.98
Other 13,675,411.15 4,575,580.19 79,985,567.22 7,948,012.97
Total 1,290,289,841.76 783,821,932.19 1,407,552,753.41 715,167,422.95
Whether implemented new revenue guidelines?
□ Yes √ No
Other notes：
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted by cost method 670,160,115.89 621,221,266.51
Long-term equity investment income accounted by equity method 469,503,736.12 463,873,066.20
Investment loss through disposal of long-term equity investment 685,975,224.36
Dividend income from investments in other equity instruments
38,912,399.15
during the holding period
Investment return on investments held to maturity during the
43,786,617.76
holding period
Interest income from debt investment during holding period. 58,235,794.66
Total 1,236,812,045.82 1,814,856,174.83
6.Other
XVI. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current assets 7,607,268.21
2019 Annual Report
Items Amount Notes
Government grants recognized in the current period, except for those acquired in the ordinary
course of business or granted at certain quotas or amounts according to the country’s unified 87,937.00
standards
Net amount of non-operating income and expense except the aforesaid items -1,393,149.65
Other non-recurring Gains/loss items 1,652,603.05
Less :Influenced amount of income tax 1,130,270.54
Influenced amount of minor shareholders’ equity (after tax) -2,226,782.89
Total 9,051,170.96 --
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Weighted average EPS（Yuan/share）
Profit as of reporting period
ROE (%) EPS-basic EPS-diluted
Net profit attributable to common shareholders of the Company 13.09% 0.60 0.60
Net profit attributable to common shareholders of the Company after
13.00% 0.60 0.60
deduction of non-recurring profit and loss
2019 Annual Report
XIII. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, Chief Financial officer
and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
