2020 Annual Report
Guangdong Provincial Expressway Development Co., Ltd.
2020 Annual Report
March 2021
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2020 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of the
Company hereby warrant that at the year , there are no misstatement, misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness
of the contents hereof.
Mr.Zheng Renfa, The Company leader, Mr. Wang Chunhua, General Manager, Mr. Lu Ming, Chief financial
officer and the Ms.Zhou Fang, the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual
report.
All the directors attended the board meeting for reviewing the Annual Report.
The toll revenues of Expressway is main source of the major business income of the company , The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province, autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.
Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments, and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So, the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So, the charging policy changes and charges adjustment will affect the highways operation of the
company.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
2,090,806,126 for the base, the Company would distribute cash dividend to all the shareholders at the rate of CNY
2.91 for every 10 shares (with tax inclusive) , 0 bonus shares（including tax）and no reserve would be converted
into share capital.
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2020 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. Management’s Discussion and Analysis
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
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2020 Annual Report
Definition
Terms to be defined Refers to Definition
Reporting period, This year Refers to January 1, 2020 to December 31, 2020
The annual report of the company was approved by the board of
Reporting date Refers to
directors on 2020, that is March 25, 2021
YOY Refers to Compared with 2019
The Company /This Company Refers to Guangdong Provincial Expressway Development Co.,Ltd.
Communication Group Refers to Guangdong Communication Group Co., Ltd.
Provincial Expressway Refers to Guangdong Provincial Freeway Co.,Ltd.
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.
Reconstruction and extension Project of Reconstruction and Expansion Project of Sanbao-Shuikou Section of
Refers to
the South Section of Fokai Expressway Fokai Expressway.
Guangfo Company Refers to Guangdong Guangfo Expressway Co., Ltd.
Guangzhou Guangzhu Transportation Investment Management Co.,
Guangzhu Transportation1 Refers to
Ltd.
Guangdong Expressway Capital Refers to Yuegao Capital Investment (Hengqin) Co., Ltd.
Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co., Ltd.
Guanghui Company Refers to Guangdong Guanghui Expressway Co., Ltd.
Guangdong Provincial Expressway Development Co., Ltd. acquired
Major assets restructuring Refers to 21% equity of Guangdong Guanghui Expressway Co., Ltd. held by
Guangdong Provincial Expressway Co., Ltd. by paying cash in 2020
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2020 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
Newspapers selected by the Company for information disclosure
Securities Daily and Hongkong Commercial Daily.
Internet website designated by CSRC for publishing the Annual report
www.cninfo.com.cn
of the Company
The place where the Annual report is prepared and placed Securities affair Dept of the Company
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2020 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 Yong Tuo Cerified Public Accountants(Special General Partnership)
Office address： 13/F, 2 Building, No.1 North Street , Guandongdian, Chaoyang District, Beijing
Names of the Certified Public
Shi Shaoyu, Li Junjie
Accountants as the signatories
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.
□ Applicable√ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
√Applicable □ Not applicable
Name Office address Name of sponsor Consitent supervision period
27-28/F, 2 Black，No1. Guomao Building,
China International Capital
Jianguomen Wai Street, Chaoyang District, Xie Yi, Long Hai 2020-2021
Corporation Limited
Beijing
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2020 Annual Report
6.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No
Retroactive adjustment or restatement of causes: Merger of enterprises under the same control
Changes of this period
2019 over same period of Last 2018
2020
year(%)
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Operating income（RMB） 3,790,348,876.26 3,057,935,584.43 4,999,016,766.74 -24.18% 3,218,694,083.94 5,074,352,303.23
Net profit attributable to the shareholders
867,842,774.78 1,258,628,101.71 1,469,187,067.83 -40.93% 1,677,028,179.18 1,880,524,910.95
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 704,821,643.20 1,249,576,930.75 1,249,579,043.32 -43.60% 1,395,441,391.82 1,395,441,391.82
listed company（RMB）
Cash flow generated by business operation,
2,636,187,241.05 1,988,551,897.83 3,222,681,187.05 -18.20% 1,915,985,578.04 3,300,975,145.20
net（RMB）
Basic earning per share(RMB/Share) 0.42 0.60 0.70 -40.00% 0.80 0.90
Diluted gains per share(RMB/Share) 0.42 0.60 0.70 -40.00% 0.80 0.90
Weighted average ROE(%) 8.27% 13.09% 14.18% -5.91% 18.37% 19.10%
End of 2019 Changed over last year End of 2018
End of 2020
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Gross assets（RMB） 19,748,578,658.11 17,674,545,340.78 20,666,939,285.90 -4.44% 16,295,910,774.45 19,998,135,903.61
Net assets attributable to shareholders of
7,933,136,499.11 9,823,426,849.75 10,557,360,463.78 -24.86% 9,586,701,904.06 10,281,913,855.74
the listed company（RMB）
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2020 Annual Report
The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the last three fiscal years is negative, and the auditor's report
of the previous year shows that the Company’s going concern ability is uncertain.
□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.
□ Yes √No
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2020 Annual Report
7.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
None
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
None
8.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 354,885,621.22 763,073,802.24 1,361,154,456.80 1,311,234,996.00
Net profit attributable to the shareholders of
-65,790,927.23 90,407,352.98 416,728,710.01 426,497,639.02
the listed company
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -71,989,487.82 62,474,770.40 348,606,597.62 365,729,763.00
listed company
Net Cash flow generated by business
163,886,674.37 545,776,621.44 1,035,210,364.11 891,313,581.13
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
In 2020, the Company implemented a major asset restructuring through purchasing 21% equity of Guanghui
Expressway by cash shares, which was completed on December 25, 2020, realizing the merger under the same
control, and adjusting the quarterly and semi-annual financial report data accordingly.
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2020 Annual Report
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2020 Annual Report
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2020) Amount (2019） Amount (2018) Notes
Gains/Losses on the disposal of non-current assets -8,261,533.18 7,607,268.21 63,173,138.25
Government grants recognized in the current
period, except for those acquired in the ordinary
course of business or granted at certain quotas or 8,359,291.82 87,937.00 1,113,228.32
amounts according to the country’s unified
standards
The Company originally held 30% equity of Guanghui Expressway, In
Current net gains and losses occurred from
2020, the Company purchased 21% equity of Guanghui Expressway in
period-begin to combination day by subsidiaries
546,213,524.55 701,856,178.51 678,322,439.24 cash, and the merger date under the same control was December 31,2020,
resulting from business combination under
which was 70% of the net profit and loss realized by Guanghui
common control
Expressway in 2020 from the beginning of merger to the date of merger.
Net amount of non-operating income and expense
-1,069,827.30 -1,393,149.65 -1,545,368.05
except the aforesaid items
Other non-recurring Gains/loss items 974,321.89 1,652,603.05
Less :Influenced amount of income tax 2,214.32 1,130,270.54 -230,679,518.30
In 2020, the Company purchased 21% equity of Guanghui Expressway in
cash, and the merger date under the same control was December 31,
Influenced amount of minor shareholders’ equity
383,192,431.88 489,072,542.07 486,659,436.93 increasing the net profit and loss realized by Guanghui Expressway in
(after tax)
2020 which was attributable to minority shareholders by RMB
382,722,793.66.
Total 163,021,131.58 219,608,024.51 485,083,519.13 --
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2020 Annual Report
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their
Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information
Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary
to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –
recurring gain/loss in the report period.
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2020 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., Guoyuan Securities Co., Ltd.and Hunan Lianzhi Technology Co., Ltd. As of the
end of the reporting period, the company’s share-controlled expressway is 306.78 km, and the share-participation
expressway is 295.88 km.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
Compared with the beginning of the year, it increased by RMB 175.11 million, and 7.93%, which was mainly
due to the increase of long-term equity investment by RMB 130 million yuan for the subscription of Guoyuan
Equity assets Securities, and increase of long-term equity investment by RMB 80 million for the investment in Hunan
Lianzhi; and due to the capital reduction of Ganzhou Gankang Expressway Co., Ltd., to reduce the long-term
equity investment by RMB 45 million.
Compared with the beginning of the year, it decreased by RMB 920.11 million, and 7.38%, which was mainly
Fixed assets due to the comprehensive impact of depreciation of expressway sections and cancellation of temporary
estimation and conversion to fixed assets of expressway toll station projects at provincial boundaries.
Compared with the beginning of the year, it increased by RMB 293.62 million, and 3351.04%, mainly because
Intangible according to the relevant government documents, the holding expressway company included the relevant
assets operating expenses incurred during the epidemic prevention and control period from February 17, 2020 to May
5, 2020 into the book value of the intangible asset-toll road franchise
Compared with the beginning of the year, it increased by RMB 99.34 million, and 41.17%, which was mainly
due to the comprehensive impact of the increased pavement treatment works and bridge deck treatment works
Construction
of Dayong Viaduct by Guangzhu East Company, and the increased Gualvhu Interchange Project, and
in process
cancellation of temporary estimation and conversion to fixed assets of expressway toll station project by
Guanghui Company.
Other current Compared with the beginning of the year, it decreased by RMB 196.55 million, and 99.99%, It was mainly
assets because that Guanghui Expressway recovered all external loans at the end of the year.
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2020 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 Jingzhu Expressway Guangzhu Section 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.
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IV. Management’s Discussion and Analysis
I. General
In 2020, the Company actively fulfilled its social responsibilities, strove to overcome the adverse effects of the
epidemic, worked hard and overcame difficulties. While strictly implementing various epidemic prevention and
control measures to achieve zero infection in the company's system, it also adhered to the front line of epidemic
prevention, ensured smooth traffic, made overall plans to promote the prevention and control of the normalized
epidemic and all tasks, and effectively promoted the stabilization and improvement of economic operation.
1. Major asset restructuring of the Company was completed on time. On July 16, 2020, the Company started
major asset restructuring, and acquired 21% equity of Guanghui Company held by Provincial Expressway in cash
to realize holding. Through the injection of high-quality road assets, the mileage of expressway controlled by the
Company has nearly doubled, and the sustainable profitability of expressway, the main business, and the financing
ability of the Company have been further improved.
2. The first intelligent transportation foreign investment project was implemented smoothly. In June 2020, the
Company completed the project investment of RMB 80 million in Hunan Lianzhi Technology Co., Ltd. by
increasing capital to Yuegao Capital, and the members of Yuegao Capital Project Team implemented the follow-up
investment simultaneously. This project is the Company's first overseas investment project in smart transportation,
and it is also the first project for the project team members to make follow-up investment, which is a new
breakthrough for the Company to explore and innovate the investment mechanism under the new situation.
3. The crucial task of canceling the provincial boundary station was successfully completed. After the toll
collection was resumed on May 6, 2020, the toll stations of the Company's holding sections are with smooth
traffic, the service points of Unitoll Expressway in Guangdong operated orderly, the toll display and data
transmission of toll lanes were correct, the lane configuration was continuously optimized, and the ETC system
was generally stable.
4. The revitalization of land resources along the route was accelerated. The Company insisted on the
comprehensive development of land resources along the line as the main direction. The land resources along the
Fokai Expressway, including Zhishan, Chenshan, Xinjitian and Yanshan service areas, have made phased progress
in their revitalization.
5. The additional investment of the original financial equity projects was completed in an orderly manner. In
November 2020, the Company invested about RMB 130 million and subscribed for 23.88 million shares of
Guoyuan Securities in full at RMB 5.44 per share, which well safeguarded the rights and interests of the
Company.
6. The preparation of strategic planning was started in time. In 2020, the Company started the preparation of
the "14th Five-Year Plan", set up a leading group and a working group, and combined with internal interviews and
external research, with consideration of the current and long-term situation, and based on a comprehensive
summary of the implementation of the "13th Five-Year Plan", prepared the "14th Five-Year" Strategy Plan (first
draft), which will be further revised and improved.
7. Guangzhu Transportation Company was successfully consolidated by merge. The Company started to
consolidate by merge Guangzhu Transportation in May 2020, and successively completed the preparatory work,
assets verification, special audit, agreement signing, internal decision-making, tax settlement and other work.
Through the efforts of all parties, the cancellation approval notice was obtained on December 18, and the task of
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2020 Annual Report
reducing the hierarchy was successfully completed.
8. The application for re-approval of the operation period of the reconstruction and expansion project of the
south section of Fokai Expressway was closely followed up. According to the requirements of the audit unit, the
Company has supplemented the relevant information for re-approval of the operation period for many times and
made explanations, striving to obtain the government's approval as soon as possible.
II. Main business analysis
1. General
Volume of vehicle traffic Increase /Decrease(%) Toll income in 2020 Increase /Decrease(%
in 2020 （Ten （Ten thousands）
thousands vehicles）
Guangfo Expressway 7,269.75 -4.25% 32,971.09 -30.05%
Fokai Expressway 7,718.23 0.65% 96,148.43 -24.68%
Jingzhu Expressway 6,189.52 -15.56% 78,237.88 -34.11%
Guangzhu East Section
Guanghui Expressway 7,487.22 6.45% 159,235.27 -16.97%
Huiyan Expressway 4,349.60 -3.57% 18,593.50 -24.62%
Guangzhao Expressway 2,892.08 -17.52% 43,561.59 -21.58%
Jiangzhong Expressway 6,095.58 -0.82% 33,867.12 -25.79%
Kangda Expressway 147.82 -54.41% 21,190.46 -17.47%
Gankang Expressway 440.48 -14.87% 12,833.68 -30.40%
Guangle Expressway 3,467.39 14.00% 248,409.48 -22.01%
Note: The traffic volume in the above table includes the traffic volume during toll-free period due to the
impact of the epidemic.
In 2020, due to the impact of the epidemic, and the first-level emergency response was activated nationwide.
The toll-free period of the original statutory Spring Festival holiday (January 24-January 30, 2020) was extended
to February 8; Meanwhile, according to the relevant policies of the Ministry of Transport, with the approval of the
State Council, from 0:00 on February 17, 2020 to 24:00 on May 5, 2020, the tolls of toll roads nationwide will be
exempted. This policy led to a significant year-on-year decline in the toll revenue of the Company's participating
companies. Moreover:
(1) Guangzhu section of Jingzhu Expressway: ① Affected by the closure of Humen Bridge for 9 days, the toll
income decreased; ② In September, the one-way maintenance of the section from the Minzhong to Xinlong
Interchange lasted for 21 days, which led to a decrease in vehicle traffic and a decrease in toll revenue; ③ The
impact of the opening of Nansha Bridge in 2019 and the goods restriction of Humen Bridge tended to be stable in
the fourth quarter of 2020; Under the same road network conditions, the fourth quarter achieved a year-on-year
growth trend.
(2) Gankang Expressway: ① The national highway G323 was cancelled and some national highways were
repaired and restored, which diverted some traffic; ② Some sections of national highways G236 and G319 were
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2020 Annual Report
restricted, and some vehicles were diverted to other expressways.
(3) Kangda Expressway: ① Due to the cancellation of the provincial boundary system, the calculated traffic
volume is different from previous years in statistical caliber; ② After the recovery of charges, the public's road
trip increased compared with the past, and the passenger car traffic increased year-on-year; Logistics vehicles such
as transportation cold chain, fresh food and express delivery vehicles have grown rapidly, and the traffic volume
of trucks has also increased.
2. Revenue and cost
(1)Component of Business Income
In RMB
2020 2019 Increase
Amount Proportion Amount Proportion /decrease
Total operating revenue 3,790,348,876.26 100% 4,999,016,766.74 100% -24.18%
Industry
Highway transportations 3,665,926,709.10 96.72% 4,853,094,808.04 97.08% -24.46%
Other 124,422,167.16 3.28% 145,921,958.70 2.92% -14.73%
Product
Highway transportations 3,665,926,709.10 96.72% 4,853,094,808.04 97.08% -24.46%
Other 124,422,167.16 3.28% 145,921,958.70 2.92% -14.73%
Area
Guangfo Expressway 329,710,947.81 8.70% 471,345,653.88 9.43% -30.05%
Fokai Expressway 961,484,310.59 25.37% 1,276,614,430.61 25.54% -24.68%
Jingzhu Expressway Guangzhu Section 782,378,756.64 20.64% 1,187,425,165.18 23.75% -34.11%
Guanghui Expressway 1,592,352,694.06 42.01% 1,917,709,558.37 38.36% -16.97%
Other 124,422,167.16 3.28% 145,921,958.70 2.92% -14.73%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decre Increase/decrease
Increase/decrease
ase of revenue of gross profit
Gross of business cost
in the same rate over the
Turnover Operation cost profit over the same
period of the same period of
rate(%) period of
previous the previous year
previous year (%)
year(%) (%)
Industry
Highway 3,665,926,709.10 1,585,926,446.48 56.74% -24.46% -13.08% -5.66%
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2020 Annual Report
transportations
Product
Highway
3,665,926,709.10 1,585,926,446.48 56.74% -24.46% -13.08% -5.66%
transportations
Area
Guangfo
329,710,947.81 112,789,778.87 65.79% -30.05% -0.89% -10.07%
Expressway
Fokai
961,484,310.59 650,430,454.36 32.35% -24.68% -16.53% -6.61%
Expressway
Jingzhu
Expressway
782,378,756.64 279,884,229.56 64.23% -34.11% -23.46% -4.98%
Guangzhu
Section
Guanghui
1,592,352,694.06 542,821,983.69 65.91% -16.97% -4.08% -4.58%
Expressway
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(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
2020 2019
Increase/
Industry Proportion in Proportion in
Items Decrease
category Amount the operating Amount the operating
(%)
costs (%) costs (%)
Highway Depreciation
1,020,703,974.74 61.41% 1,188,983,865.18 61.78% -14.15%
transportations and Amortized
Highway Out of pocket
565,222,471.74 34.00% 635,659,655.25 33.03% -11.08%
transportations expenses
Other Other 76,297,249.65 4.59% 99,834,413.47 5.19% -23.58%
Note
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√ Yes □ No
Compared with 2019, the scope of consolidation in this year was reduced to Guangzhou Guangzhu
Transportation Investment Management Co., Ltd., which was due to the internal consolidation by merger of the
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Company.
Compared with 2019, Guangdong Guanghui Expressway Co., Ltd. was added to the scope of consolidation
this year, because the Company acquired its 21% equity and held 51% equity of Guanghui Expressway, and
Guanghui Expressway was changed from an affiliated company to a subsidiary.
(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
2020 2019 Notes
/Decrease
Administrative
203,945,119.58 218,914,654.80 -6.84%
expenses
Financial expenses 216,182,374.88 224,177,216.66 -3.57%
In 2020, Yuegao Technology incurred the
R & D expenses 404,303.70 100.00% expenditure of "R&D of Automatic Card Checking
Machine for Expressway Composite Pass Cards".
4. Research and Development
√ Applicable □Not applicable
Since January 1, 2020, the 5.8GHz CPC card has been uniformly used in the toll collection media of MTC
vehicles across the country, and the national unified CPC card management platform has been enabled, and all
cards have been uniformly managed, which requires the card checking and warehousing operation for each
allocated card. According to the feedback from some road sections with large traffic volume, in the process of card
allocation, the work of card reading and sorting is tedious and dull, and manual operation is prone to errors.
Therefore, it is expected that such manual operation can be replaced by automatic card reading and sorting
machines. The Company actively seeks automation equipment manufacturers to jointly develop automatic
checking machine products for composite pass cards. This project is mainly to develop an automatic card
checking equipment, which enables ticket managers in toll stations and CPC card dispatching center to complete
automatic card checking, arrange whole cards in an orderly manner and sort out defective cards only by putting
the scattered cards into the card bin without manual card swiping and testing. The location of each card is
recorded, which is convenient for locating the cards, and reduces the unnecessary card locating work caused by
the sealing failure due to the register of a defective card in a different place. And each detected card can be
automatically disinfected, thus ensuring the health of people contacting the card.
R & D investment
2020 2019 Increase /decrease
19
2020 Annual Report
Number of Research and Development persons (persons) 2 0 100.00%
Proportion of Research and Development persons 0.07% 0.00% 0.07%
Amount of Research and Development Investment (In RMB) 404,303.70 0.00 100.00%
Proportion of Research and Development Investment of Operation Revenue 0.01% 0.00% 0.01%
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
In 2020, Yuegao Technology incurred an expenditure of RMB 404,303.7 on "R&D of Automatic Card
Checking Machine for Expressway Composite Pass Cards", which is not incurred in 2019.
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
□ Applicable √Not applicable
5.Cash Flow
In RMB
Items 2020 2019 Increase/Decrease(%)
Subtotal of cash inflow received from operation
4,051,493,610.08 5,167,390,664.45 -21.59%
activities
Subtotal of cash outflow received from operation
1,415,306,369.03 1,944,709,477.40 -27.22%
activities
Net cash flow arising from operating activities 2,636,187,241.05 3,222,681,187.05 -18.20%
Subtotal of cash inflow received from investing
372,548,657.83 369,542,087.83 0.81%
activities
Subtotal of cash outflow for investment activities 884,922,836.28 1,164,320,280.23 -24.00%
Net cash flow arising from investment activities -512,374,178.45 -794,778,192.40 -35.53%
Subtotal cash inflow received from financing
2,258,963,500.00 3,662,685,000.00 -38.32%
activities
Subtotal cash outflow for financing activities 4,591,305,613.77 5,780,920,106.63 -20.58%
Net cash flow arising from financing activities -2,332,342,113.77 -2,118,235,106.63 10.11%
Net increase in cash and cash equivalents -206,800,360.26 308,133,367.29 -167.11%
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
The cash inflow of fund-raising activities is RMB 2.259 billion, which is the subsidy fund for obtaining loans
and the Gualvhu Interchange Project received by Guanghui Company; Compared with the same period of last year,
it decreased by RMB 1.404 billion, mainly due to the decrease in loans.
20
2020 Annual Report
Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
√Applicable □ Not applicable
In RMB
Year 2020
Adjusting net profit to cash flow from operating activities
Net profit 1,364,385,006.07
Credit loss provision 2,457,808.51
Impairment loss provision of assets 1,231,918.94
Depreciation of fixed assets, oil and gas assets and consumable
1,009,578,943.06
biological assets
Amortization of intangible assets 26,319,338.62
Amortization of Long-term deferred expenses 457,642.44
Fixed assets scrap loss 13,637,658.30
Financial cost 265,092,013.47
Loss on investment -171,366,835.55
Decrease of deferred income tax assets 54,738,687.74
Increased of deferred income tax liabilities -41,819,079.34
Decrease of inventories 57,922.16
Decease of operating receivables 136,745,935.47
Increased of operating Payable -25,329,718.84
Net cash flows arising from operating activities 2,636,187,241.05
III.Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion Sustainable (yes
Amount Explanation of cause
in total profit or no)
It is due to the operation accumulation of
Investment Income 171,366,835.55 9.23% Sustainable
participant companies
21
2020 Annual Report
Guanghui Company accrued impairment
Asset impairment -1,231,918.94 -0.07% Not sustainable
reserve for fixed assets
Mainly insurance claims, road property
Non-operating
11,749,841.36 0.63% claims, and compensation income for Not sustainable
income
demolition
Non-operating Mainly non-current asset disposal losses and
20,642,932.77 1.11% Not sustainable
expenses road property repair expenses
Credit impairment Impairment provision of accounts receivable
-2,457,808.51 -0.13% Not sustainable
losses and other receivables accrual
IV.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
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 2020
Applicable
In RMB
End of 2020 End of 2019
Notes to the
Proportion Proportion Proportion
significant
Amount in the total Amount in the total increase/decrease
change
assets(%) assets(%)
Monetary fund 2,847,398,003.89 14.42% 3,054,198,364.15 14.78% -0.36%
Accounts
168,907,517.56 0.86% 179,449,777.42 0.87% -0.01%
receivable
Inventories 53,761.06 0.00% 111,683.22 0.00% 0.00%
Investment real
3,110,381.89 0.02% 3,331,500.37 0.02% 0.00%
estate
Long-term
equity 2,382,381,165.60 12.06% 2,207,266,324.84 10.68% 1.38%
investment
Fixed assets 11,540,075,929.69 58.43% 12,460,188,469.66 60.29% -1.86%
Construction in
340,611,095.47 1.72% 241,274,698.97 1.17% 0.55%
process
Shore-term
200,192,500.00 1.01% 0.00% 1.01%
loans
Long-term
4,977,438,800.00 25.20% 4,926,015,000.00 23.84% 1.36%
loans
22
2020 Annual Report
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
In RMB
Gain/Loss on Cumulative fair Purchased Sold amount
Impairment
fair value value change amount in the in the Other
Items Opening amount provisions in the Closing amount
change in the recorded into reporting reporting changes
reporting period
reporting period equity period period
Financial assets
4.Other equity instrument
1,835,822,604.77 421,106,349.76 1,737,015,528.29
investment
Subtotal of financial assets 1,835,822,604.77 421,106,349.76 1,737,015,528.29
Total of the above 1,835,822,604.77 421,106,349.76 1,737,015,528.29
Financial liabilities 0.00 0.00
Other
None
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?
□ Yes √No
23
2020 Annual Report
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.
III. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2020(Yuan) Investment Amount in 2019(Yuan) Change rate
2,703,460,018.24 1,140,508,126.36 137.04%
24
2020 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □Not applicable
In RMB
Whether
Name of Progress Gain or
Share to
the Main Investme Investment Capital Investment Product up to Less or the Date of
Proportion Partner Anticipated Involve Disclosure Index
Company Business nt Way Amount Source Horizon Type Balance Current Disclosure
% Income in
Invested Sheet Date Investment
Lawsuit
On the basis
Guangdong Announcement of
of the term
Guanghui Self Provincial November Resolutions of the
Expressw 2,493,549,5 of operation Limited
Expressw Purchase 51.00% and Freeway Completed 0.00 0.00 No 24, 13th (Provisional)
ay 76.00 approved Company
ay loans Co.,Ltd. 2020 Meeting of the Ninth
by the
Board of Directors
government
On the basis
Announcement of
Hunan of the term
Identificat Resolutions of the
Lianzhi 80,000,000. of operation Limited June 24,
ion & Purchase 11.45% Self None Completed 0.00 0.00 No 7th (Provisional)
Technolog 00 approved Company 2020
testing Meeting of the Ninth
y Co., Ltd. by the
Board of Directors
government
Announcement of
Guoyuan Until Resolutions of the
Increase 129,910,44 Markettable September
Securities Securities 2.37% Self None reduction is Completed 0.00 0.00 No 10th (Provisional)
capital 2.24 securities 30,2020
Co., Ltd. complete Meeting of the Ninth
Board of Directors
2,703,460,0
Total -- -- -- -- -- -- -- -- 0.00 0.00 -- -- --
18.24
25
2020 Annual Report
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period □ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment √ Applicable □ Not applicable
In RMB
Book value Changes in Purchase Sale
Stock Mode of Cumulative fair Gain/loss of Book value balance Accoun Sourc
Security Security Initial balance at the fair value amount in amount in
Abbreviati accounting value changes the reporting at the end of the ting es of
category code investment cost beginning of the of the this the this the this
on: measurement in equity period reporting period items funds
reporting period period period period
Other
Domesti equity
c and Everbright instrum
601818 517,560,876.80 FVM 1,037,474,303.04 0.00 421,106,349.76 0.00 0.00 50,344,558.02 938,667,226.56 Self
foreign Bank ent
stocks investm
ent
Total 517,560,876.80 -- 1,037,474,303.04 0.00 421,106,349.76 0.00 0.00 50,344,558.02 938,667,226.56 -- --
Disclosure Date of Announcement
on Securities Investment Approved July 22,2009
by the Board of Directors
Disclosure Date of Announcement
on Securities Investment Approved
August 7,2009
by the Shareholders Meeting(If
any)
（2）Investment in Derivatives □ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
26
2020 Annual Report
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
27
2020 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
Leading products and services Registered capital Total assets Net assets Operating Income Operating profit Net Profit
Name type
Operating Guangfo Expressway Co.,
Guangfo Ltd.(starts from Hengsha, Guangzhou, ends
Subsidiary RMB 200 million 531,194,012.93 460,405,493.14 333,647,719.92 202,903,321.04 155,032,248.63
Expressway in Xiebian, Foshan. Total length 15.7
kilometers
Jingzhu
The operation and management of
Expressway
Guangzhu Expressway and provision of
Guangzhu Subsidiary RMB 580 million 2,390,811,046.60 951,363,541.68 812,354,042.82 413,718,175.77 301,738,807.80
supporting services including fueling,
Section Co.,
salvage and supply of parts and components
Ltd.
Investment in and construction of Guanghui
Expressway Co., Ltd. and supporting
Guangdong facilities, the toll collection and maintenance
Guanghui Sharing management of Guanghui Expressway, The
RMB 2.352 million 4,518,271,534.85 3,971,913,931.56 1,616,980,738.55 1,046,966,245.16 780,305,035.07
Expressway company Guanghui Expressway's supporting gas
Co., Ltd. station, salvation, vehicle maintenance,
vehicle transport, catering, warehousing
investment and development
28
2020 Annual Report
Subsidiaries obtained or disposed in the reporting period
√Applicable □ Not applicable
Ways to acquire and dispose of Impact on overall production, operation and
Name
subsidiaries during the reporting period performance
Guangdong Guanghui Expressway Co., Increase of the net profit attributable to listed
Combination under the same control
Ltd. companies by RMB 163.86 million in 2020
Guangzhou Guangzhu Transportation
Absorption merges None
Investment Management Co., Ltd.
Particulars about the Mutual holding companies
1. Guangfo Expressway Co., Ltd. (the Company holds 75% equity) builds and operates Guangfo Expressway,
and its operation and management includes road maintenance, toll collection, maintenance of traffic facilities such
as signs and markings, and vehicle rescue. The net profit of the current period decreased by RMB 95.73 million
year on year, or 38.18%. The main reason for the decrease was that the toll revenue decreased due to the toll-free
policy of the epidemic situation.
2. Jingzhu Expressway Guangzhu Section Co., Ltd. (the company holds 75% equity) operates
Guangzhou-Zhuhai Expressway and provides the supporting refueling, rescue and spare parts supply services of
expressway. The net profit of the current period decreased by RMB 211,327,000 year-on-year, or 41.19%. The
main reason for the decrease was that the toll revenue decreased due to the toll-free policy of the epidemic
situation.
3. Guangdong Guanghui Expressway Co., Ltd. (the company holds 51% equity) invests in and builds Guanghui
Expressway and supporting facilities; Toll collection and maintenance management of Guanghui Expressway;
Investment and development of gas stations, rescue, automobile maintenance, automobile transportation, catering
and warehousing for Guanghui Expressway. The net profit of the current period decreased by RMB 222,346,600
year-on-year, or 22.18%. The main reason for the decrease was that the toll revenue decreased due to the toll-free
policy of the epidemic situation.
VIII. Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prospect for future development of the Company
2021 is the first year of the 14th Five-Year Plan. The general requirements of the work in 2021 are as follows:
adhere to the general tone of striving for stability, consolidate and expand the main business of expressways, focus
on economic benefits, take market-oriented reform as the driving force, strengthen innovation drive, promote the
intelligent upgrade of transportation industry, emphasize on improving capital operation capability, resolutely
guard against major risks of enterprises, and achieve a good start in the 14th Five-Year Plan.
1. Persist in stabilizing the expressway industry and provide a solid foundation for high-quality development.
Firstly, appropriately increase the shareholding ratio of existing high-quality road property projects, accelerate the
integration of superior resources, and strive to increase the number of expressway holding projects. Secondly,
promote the reconstruction and expansion of the bottleneck expressway and verify the operation period. Thirdly,
based on the main business application scenario and combined with the industrial chain ecosystem, increase the
popularization and application of new technologies, promote the digitalization and intelligent upgrading of
29
2020 Annual Report
operation and management, and gradually apply modern information technologies such as cloud computing, big
data and AI to all sections of management, so as to realize the transformation of scientific and technological
production capacity and empower the development of the main business.
2. Grasp the strategic layout and capital operation, promote transformation, and develop business
development and innovation
According to the company's "14th Five-Year Plan" development plan and the Group's work requirements, the
strategic plan should be launched as soon as possible, so as to make a good start for the integration of smart
transportation and other emerging industries. Firstly, learn from and benchmark the practical experience of
first-class management enterprises, and actively explore cooperation models by using technical forces such as
industry R&D centers and research institutes to lay a good scientific and technological foundation for the
development of the industry; Secondly, seize the opportunity of state-owned enterprise reform, leverage the
capital market, promote mergers and acquisitions of strategic emerging industries related to smart transportation,
obtain high-end products in the industrial chain, strive for the implementation of a project, and realize the
development of superior main business empowerment; Thirdly, actively participate in the research on asset
restructuring of the smart transportation technology sector, explore the feasible mode of implementing the
integration of emerging industry resources within the Group, and accelerate the cultivation of new kinetic energy
for the Company's development;
3.Continue to promote and support the development of land resources along the route, intensify the
revitalization and utilization of land parcels such as Xinjitian, Chenshan, Dayanshan and Hengsha, and fully push
forward the upgrading and reconstruction project of Zhishan Service Area to ensure the smooth implementation of
the development, construction and operation of the service area.
4. Deepen reform, lay a solid foundation, and accomplish key special tasks in a solid manner
Promote the upgrading of operational management. According to the deployment requirements of the
Provincial Department of Transportation and the Provincial Transportation Group to alleviate congestion and
ensure smoothness, implement the specific work of linkage and smooth work in small areas, strengthen the
monitoring of road network operation, optimize relevant processes, and strengthen early warning and dispatching
mechanisms; Perform systematic transformation of Guangfo Expressway toll stations, implement the expansion
project of Guangfo Expressway Michong and Shayong toll stations, and upgrade and transform peripheral urban
roads to alleviate traffic congestion at the entrances and exits of the two toll stations; Constantly strengthen the
inspection of overloading supervision at the expressway entrance, service area supervision, supervision for space
under bridge and pavement, enhance the ability of scientific and technological transformation, and continuously
promote the upgrading of service area and the promotion of brand image.
5. Strengthen the construction of modern enterprise system. Under the overall strategic framework of the
Company, improve the connection between internal business assessment and strategy, formulate quantitative and
qualitative indicators of business plan, comprehensively cover all business activities of the Company and the
platform, and enhance comprehensive service capabilities. Steadily promote the market-oriented operation
mechanism, complete the tenure system and contractual management of managers, explore and continuously
optimize the talent introduction mechanism, further strengthen the construction of talent echelon, promote the
extension of the reform pilot work results integrating "incentive, restraint and fault tolerance" to the grassroots
level, strengthen the cooperation of production, education and research and independent innovation capabilities,
and strive to break the human resources barriers that restrict the Company's development, thus providing
guarantee for the Company's development kinetic energy transformation and industrial upgrading.
30
2020 Annual Report
X. List of the received researches, visits and interviews
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □Not applicable
Place of Way of Main contents discussed and
Reception time Types of visitors Visitors received Basic index
reception reception information provided
1Feng Siqi Sheshang Securities.2.Xu Senzhou BOCOM
SCHRODERS.3. Guo Shuaitong New China 1. The main content of
Fund.4.Guan Panlong Jiashi Fund.5.Guo Zhaoyang research:1. the daily
ICBCCS.6. Ren Yilin BROAD fund. operation; 2. the company's
7.Peng Ke Efunds. 8. Mao Wei, Yi Li Southern Asset financial data analysis;3.
Meeting Room （2020001）
April 7,2020 By Phone Organization Management 9. Hao Xudong Nuode Fund development strategy; 4.
of the Company www.cninfo.com.cn
10.Niu Yongtao Yimin Fund.11.Yao Shuang China analysis on the industry.
Merchants fund. 12.Zhang Chicheng Baank of China 2.Primary data investigation:
investment Management. 13.Zhang Yixin, Li Shoufeng Public information company
Fuanda Fund 14.Zhang Ke Yinhua Fund. 15. Dongkaili regularly reports
Bosera Fund 16.Li Zhechao Dacheng Fund.
1.Huatai Securities Shen Xiaofeng , Lin Xiaying
2.Zhejiang Shanyuan Investment Management Co., Ltd. 1. The main content of
Tang Cong, Liu Mingxia 3.China Innovation Capital research:1. the daily
Carol Chen 4.Elevation Capital Ben Zhang 5.Prime operation; 2. the company's
Capital Lu Peijie 6 financial data analysis;3.
Meeting Room （2020002）
April 7,2020 By Phone Organization .Yunying Asset Teresa Lei 7.BooCommLife development strategy; 4.
of the Company www.cninfo.com.cn
Wang Yaoyong 8.Kaishi Fund Management Co., Ltd. analysis on the industry.
Zhao Chenkai 9.Huabao Fund Management Co., Ltd. Lu 2.Primary data investigation:
Yi 10.Guosen Securities Wang Chengqi 11.China Public information company
Merchants Life Insurance Wang Kangjian 12.CMB regularly reports
Wealth Management
31
2020 Annual Report
Place of Way of Main contents discussed and
Reception time Types of visitors Visitors received Basic index
reception reception information provided
Zhang Ying 13.Morgen Taowei 14.Invesco Great
Wall Fund He Jinyang. 15.Biyun Asset
Fan Jia 16.Jin Chong Investment Mario Fei
1.Guotai Junan Securities Institure Zheng Wu, Huangpu
Xiaohan, Yue Xin 2.Danshuiquan( Beijing) Investment
Management Co., Ltd. Qian Yueqiang 3.Southern Asset
Management Co., Ltd. Yi Li 1. The main content of
research:1. the daily
4.Shanghai Dazheng Investment Wang Zhitong 5.BOC
operation; 2. the company's
International (China) Co., Ltd.Lu Shasha
financial data analysis;3.
Meeting Room 6.Bosera Funds Liu Xiaolong 7. Shenzhen Ximengbei
April 29,2020 By Phone Organization development strategy; 4. www.cninfo.com.cn
of the Company Asset Management Co., Ltd. Sun Yuanjia 8.UBS SDIC
analysis on the industry.
Tang Haibo 9.Invesco Great Wall Fund Management
2.Primary data investigation:
Co., Ltd. He Jinyang 10. BoComm Life Wang Yaoyong
Public information company
11.Taiping Fund Management Co., ltd. Li Teng
regularly reports
12.Guotuo Anxin Futures Co., Ltd. Wang Jianing 13.
Qianhai Taihang Asset Management(Shenzhen) Co.,
Ltd. Xu Longping
1. The main content of
1.Guotai Junan Securities Institure Zheng Wu, Huangpu
research:1. the daily
Xiaohan 2.Shanghai Dazheng Investment Co., Ltd.
operation; 2. the company's
Wang Zhitong 3. Tibet Yuancheng Investment
financial data analysis;3.
Meeting Room Management Co., Ltd. Zeng Shang 4.Shenzhen
August 27,2020 By Phone Organization development strategy; 4. www.cninfo.com.cn
of the Company Ximengbei Asset Managemeent Co., Ltd. Zhang Gang
analysis on the industry.
5.BOSC ASSET Yan Feng
2.Primary data investigation:
6.Shenzhen Qianhai Dingye Investment Development
Public information company
Co., Ltd. Chen Zhixiong
regularly reports
32
2020 Annual Report
Place of Way of Main contents discussed and
Reception time Types of visitors Visitors received Basic index
reception reception information provided
1.Huatai Securities Lin Xiaying
1. The main content of
2.Guotai Junan Secuties Huangpu Xiaohan research:1. the daily
3.Tianfeng Securities Zeng Fanzhe operation; 2. the company's
4.Zheshang Securities Li Xiang, financial data analysis;3.
Meeting Room
October 29,2020 By Phone Organization 5. Northerst Securities Zhang Yunkai development strategy; 4. www.cninfo.com.cn
of the Company
analysis on the industry.
6.Dacheng Fund Zheng Xin 7.Shenghai Trust Liu Bai
2.Primary data investigation:
8.China Life AMP Asset Management Co., Ltd. Yan
Public information company
Kun 9.Chengzhou Asset Zhu Yeting 10.Morgan Vivian
regularly reports
Tao 11.Green Corut Jia Fan
Reception times 5
Reception agency amount 62
Reception personal number 0
Others 0
Whether to disclose, reveal or disclose
No
non-public material information
33
2020 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 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.
(2) The Company's profit distribution plan 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 2019. 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.
(3) The Company's profit distribution preplan for 2020 is as follows:
1.10% of the net profit of the company, i.e. 93,232,912.82 yuan, is to be allocated for statutory common reserve
fund.
2.The profit for 2020 is to be distributed as follows: 608,424,582.67 yuan. is to be allocated as the fund for
dividend distribution for 2020. with the total shares at the end of 2020, i.e., 2,090,806,126 shares, as the base, cash
dividend of 2.91 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 2020 annual shareholders’ general meeting makes
34
2020 Annual Report
resolution on dividend distribution.
Dividend distribution of the latest three years
In RMB
Ratio of the Ratio of the cash
Ratio of the total cash
Net profit cash bonus in bonus
Proportion bonus (other ways
attributable to net profit by other ways in net
for cash included) in net profit
Year common stock attributable to profit attributable to Total cash
Amount for cash bonus by attributable to
for shareholders of common stock common stock bonus(other
bonus(tax other common stock
bonus listed company in shareholders of shareholders of ways
included) ways(i.e. shareholders of listed
shares consolidation listed company listed company included)
share company contained
statement for contained in contained in
buy-backs) in consolidation
bonus year consolidation consolidation
statement
statement statement
2020 608,424,582.67 867,842,774.78 70.11% 0.00 0.00% 608,424,582.67 70.11%
2019 882,320,185.17 1,258,628,101.71 70.07% 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%
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
2.91
(Yuan)(Tax-included)
Distribute additional (shares)for 10 shares
A total number of shares as the distribution
2,090,806,126
basis(shares)
Cash dividend amount (yuan, including tax 608,424,582.67
Other means (such as repurchase of shares) cash
0.00
dividend amount (yuan)
Total cash dividend (yuan, including tax) 608,424,582.67
Distributable profit (yuan) 3,667,543,163.36
Proportion of cash dividend in the distributable
100%
profit
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.
Details of profit distribution or reserve capitalization Preplan
35
2020 Annual Report
1.10% of the net profit of the company, i.e. 93,232,912.82 yuan, is to be allocated for statutory common reserve fund.
2.The profit for 2020 is to be distributed as follows: 608,424,582.67 yuan. is to be allocated as the fund for dividend
distribution for 2020. with the total shares at the end of 2020, i.e., 2,090,806,126 shares, as the base, cash dividend of 2.91 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 2020
annual shareholders’ general meeting makes resolution on dividend distribution.
36
2020 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
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
Commitment on share reform
Commitment in the acquisition
report or the report on equity
changes
The predicted net profit of Guangdong Guanghui Expressway Co., Ltd. after deducting
non-recurring gains and losses in 2020, 2021 and 2022 (hereinafter referred to as
Guangdong
"predicted net profit") is RMB 652,477,500, RMB 1,112,587,300 and RMB
Provincial Normal
Performance 1,234,200,900 respectively. According to the special audit opinion issued by the November 25,
Freeway 2020-2022 performan
commitment accounting firm, if the accumulated realized net profit of Guangdong 2020
Co.,Ltd. ce
Guangzhou-Huizhou Expressway Co., Ltd. at the end of any fiscal year does not reach
the accumulated predicted net profit within the compensation period, Guangdong
Commitment made upon the Provincial Freeway Co.,Ltd. will compensate in cash as agreed.
assets replacement Commitment 1. The explanations, commitment and information provided by the Company for this
on transaction are authentic, accurate and complete, and there are no false records,
authenticity, misleading statements or major omissions. 2. The information provided by the Company
Normal
Guangdong accuracy and to the intermediaries that provide professional services such as auditing, evaluation, November 25, Permanently
performan
Expressway completeness legal and financial consulting for this transaction is authentic, accurate and complete 2020 effective
ce
of the original written information or duplicate information, and the duplicate or photocopy of
information the information is consistent with its original information or original copy; The
provided signatures and seals of all documents are authentic, and the legal procedures required for
37
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
signing and sealing have been fulfilled and legal authorization has been obtained; There
are no false records, misleading statements or major omissions. 3. The Company
guarantees that it will provide timely information about this transaction in accordance
with relevant laws and regulations, relevant regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange, ensure the authenticity, accuracy and
completeness of such information, and guarantee that there are no false records,
misleading statements or major omissions. 4. The Company shall bear individual and
joint legal responsibilities for the authenticity, accuracy and completeness of the
information provided or disclosed for this exchange. In case of any loss caused to
investors due to violation of the above commitments, the Company will bear
corresponding liability for compensation according to law.
1. The explanations, commitment and information provided by the Promisee for this
transaction are authentic, accurate and complete, and there are no false records,
misleading statements or major omissions. 2. The information provided by the Promisee
to the intermediaries that provide professional services such as auditing, evaluation,
Commitment
All directors, legal and financial consulting for this transaction is authentic, accurate and complete
on
supervisors original written information or duplicate information, and the duplicate or photocopy of
authenticity,
and senior the information is consistent with its original information or original copy; The Normal
accuracy and November 25, Permanently
management signatures and seals of all documents are authentic, and the legal procedures required for performan
completeness 2020 effective
personnel of signing and sealing have been fulfilled and legal authorization has been obtained; There ce
of the
Guangdong are no false records, misleading statements or major omissions. 3. The Promisee
information
Expressway guarantees that it will provide timely information about this transaction in accordance
provided
with relevant laws and regulations, relevant regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange, ensure the authenticity, accuracy and
completeness of such information, and guarantee that there are no false records,
misleading statements or major omissions. 4. If this transaction is suspected of false
38
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
records, misleading statements or major omissions in the information provided or
disclosed, and is put on file for investigation by judicial organs or by China Securities
Regulatory Commission, the transfer of its shares with interests in the listed company
will be suspended until the investigation conclusion of the case is obtained. 5. The
Promisee shall bear individual and joint legal responsibilities for the authenticity,
accuracy and completeness of the information provided or disclosed for this exchange.
In case of any loss caused to investors due to violation of the above commitments, the
Promisee will bear corresponding liability for compensation according to law.
About the
share
reduction plan
All directors, from the date From the date when the listed company disclosed this trading indicative announcement
supervisors of disclosure to the completion of this transaction, I will not reduce the shares of the listed company
Completio
and senior of the directly or indirectly. If China Securities Regulatory Commission and Shenzhen Stock Completion of
November 25, n of
management announcement Exchange have new regulations on reduction, I will also strictly abide by such this
2020 performan
personnel of of this regulations. If the above commitments are violated, thus causing losses to the listed transaction
ce
Guangdong reorganization company or other investors, I promise that I will be liable for compensation to the listed
Expressway to the company or other investors according to law
completion of
implementatio
n
All directors, Commitment 1. I promise not to transfer benefits to other units or individuals without compensation
Normal
supervisors on filling or under unfair conditions, nor to damage the interests of the Company by other means. November 25, Permanently
performan
and senior measures to 2. I promise to restrain my job consumption behavior. 3. I promise not to use the assets 2020 effective
ce
management dilute of the Company to engage in any investment and consumption activities unrelated to my
39
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
personnel of immediate duties. 4. I promise that the salary system formulated by the Board of Directors or the
Guangdong reward Remuneration Committee of Guangdong Expressway will be linked with the
Expressway implementation of the reward filling measures of Guangdong Expressway. 5. If
Guangdong Expressway plans to implement equity incentive, I promise that the exercise
conditions of equity incentive of Guangdong Expressway to be announced will be
linked with the implementation of the reward filling measures. 6. In case of any loss
caused to Guangdong Expressway or its shareholders due to violation of the above
commitments or refusal to perform the above commitments, I will bear corresponding
compensation responsibilities according to law.
1. The Company and its holding subsidiaries will not use the controlling shareholder's
holding relationship with Guangdong Expressway to conduct business activities that This letter of
harm the legitimate rights and interests of Guangdong Expressway, its minority commitment
shareholders and its holding subsidiaries. 2. The Company and its holding subsidiaries is valid from
will not use the information obtained from Guangdong Expressway and its holding the date of
subsidiaries to engage in the main business competing with Guangdong Expressway or signing to the
Guangdong its holding subsidiaries, and will not engage in any acts or activities that damage or may date when the
Commitment
Provincial damage the legitimate rights and interests of Guangdong Expressway, its minority Provincial Normal
on avoiding
Freeway shareholders and its holding subsidiaries. 3. If the Company and its holding subsidiaries June 26,2015 Expressway is performan
horizontal
Co.,Ltd. transfer any toll roads, bridges, tunnels and related ancillary facilities or rights invested no longer ce
competition
or managed by the Company to a company other than Guangdong Communications controlled by
Group Co., Ltd. and the company directly or indirectly controlled by it, Guangdong the
Expressway will be entitled to the preemptive right under the same conditions, unless controlling
the transferee is explicitly designated by the relevant government authorities under the shareholder of
premise permitted by relevant laws and regulations. 4. In the future, if the Company and Guangdong
its holding subsidiaries invest in the construction of expressways parallel to or in the Expressway
same direction within 20 km from each side of the expressway controlled by Guangdong
40
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
Expressway, Guangdong Expressway will enjoy the priority of investment over
Guangdong Communications Group Co., Ltd. and its directly or indirectly controlled
companies except Guangdong Expressway and its holding subsidiaries, except for the
projects whose investment entities are clearly designated by the relevant government
authorities under the premise permitted by relevant laws and regulations.
This letter of
commitment
is valid from
The Company will not damage the independence of Guangdong Expressway due to the the date of
Commitment increase of shares held by the Company after the completion of this major asset signing to the
Guangdong on restructuring, and will continue to maintain the principle of separation from Guangdong date when the
Provincial maintaining Expressway in terms of assets, personnel, finance, organization and business, and Provincial Normal
Freeway the strictly abide by the relevant regulations of China Securities Regulatory Commission on June 26,2015 Expressway is performan
Co.,Ltd. independence the independence of listed companies, and will not use Guangdong Expressway to no longer ce
of listed provide guarantees, nor occupy Guangdong Expressway funds illegally, so as to controlled by
companies maintain and protect the independence of Guangdong Expressway and protect the the
legitimate rights and interests of other shareholders of Guangdong Expressway. controlling
shareholder of
Guangdong
Expressway
Guangdong Commitment 1. After the completion of this major asset restructuring, the Company and the This letter of
Provincial on reducing companies directly or indirectly controlled by the Company and other related parties commitment Normal
June 26,
Freeway and will try to avoid related transactions with Guangdong Expressway and its holding is valid from performan
2015
Co.,Ltd. standardizing subsidiaries; Related transactions that are really necessary and unavoidable are carried the date of ce
related out in accordance with the principles of fairness, equity and compensation of equal signing to the
41
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
transactions value. The transaction price is determined at a reasonable price recognized by the date when the
market. The transaction approval procedures and information disclosure obligations are Provincial
performed in accordance with relevant laws, regulations and normative documents, and Expressway is
the interests of Guangdong Expressway and its minority shareholders are effectively no longer
protected. 2. The Company guarantees to exercise shareholders' rights and fulfill controlled by
shareholders' obligations in strict accordance with relevant laws and regulations, rules the
and normative documents promulgated by China Securities Regulatory Commission, controlling
business rules promulgated by Shenzhen Stock Exchange and Articles of Association of shareholder of
Guangdong Provincial Expressway Development Co., Ltd., and it will not use the Guangdong
controlling position of Guangdong Expressway's controlling shareholders to seek Expressway
improper benefits or damage the legitimate rights and interests of Guangdong
Expressway and its minority shareholders.
1. The information involved in the explanations and commitment provided by the
Company for this transaction are authentic, accurate and complete, and there are no false
records, misleading statements or major omissions. 2. The information provided by the
Commitment Company to the intermediaries that provide professional services such as auditing,
on evaluation, legal and financial consulting for this transaction is authentic, accurate and
Guangdong
authenticity, complete original written information or duplicate information, and the duplicate or
Provincial Normal
accuracy and photocopy of the information is consistent with its original information or original copy; November 25, Permanently
Freeway performan
completeness The signatures and seals of all documents are authentic, and the legal procedures 2020 effective
Co.,Ltd. ce
of the required for signing and sealing have been fulfilled and legal authorization has been
information obtained; There are no false records, misleading statements or major omissions. 3. The
provided Company guarantees that it will provide timely information about this transaction in
accordance with relevant laws and regulations, relevant regulations of China Securities
Regulatory Commission and Shenzhen Stock Exchange, ensure the authenticity,
accuracy and completeness of such information, and guarantee that there are no false
42
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
records, misleading statements or major omissions.
Guangdong
Communicatio
ns Group Co.,
Ltd.,
Guangdong
From the date when the listed company disclosed this trading indicative announcement
Provincial
to the completion of this transaction, the Company will not reduce the shares of the
Freeway
listed company directly or indirectly. If China Securities Regulatory Commission and
Co.,Ltd.
Statement and Shenzhen Stock Exchange have new regulations on reduction, the Company will also Completio
., Guangdong Completion of
commitment strictly abide by such regulations. If the above commitments are violated, thus causing November 25, n of
Highway this
on share losses to the listed company or other investors, the Company promise that it will be 2020 performan
Construction transaction
reduction plan liable for compensation to the listed company or other investors according to law. For ce
Co., Ltd.,
the Company's increased holdings of shares of listed companies due to issues such as
Guangdong
share offering by listed companies and conversion of capital reserve into share capital,
Communicatio
the above commitment of not reducing its holdings will also be observed.
ns
Development
Co., Ltd. and
Xinyue Co.,
Ltd.
Guangdong Commitment The Company and the companies directly or indirectly controlled by the Company This letter of
Provincial on except Guangdong Expressway and its holding subsidiaries will not damage the commitment Normal
June 18,
Freeway maintaining independence of Guangdong Expressway due to the increase in the shares of is valid from performan
2015
Co.,Ltd. the Guangdong Expressway held by the Company and the companies directly or indirectly the date of ce
independence controlled by the Company except Guangdong Expressway and its holding subsidiaries signing to the
43
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
of listed after the completion of this major asset restructuring, and will continue to maintain the date when the
companies principle of separation from Guangdong Expressway in terms of assets, personnel, Provincial
finance, organization and business, and strictly abide by the relevant regulations of Expressway is
China Securities Regulatory Commission on the independence of listed companies, and no longer
will not use Guangdong Expressway to provide guarantees, nor occupy Guangdong controlled by
Expressway funds illegally, so as to maintain and protect the independence of the
Guangdong Expressway and protect the legitimate rights and interests of other controlling
shareholders of Guangdong Expressway. shareholder of
Guangdong
Expressway
1. The Company and the companies directly or indirectly controlled by the Company
This letter of
except Guangdong Expressway and its holding subsidiaries will not use the controlling
commitment
shareholder's holding relationship with Guangdong Expressway to conduct business
is valid from
activities that harm the legitimate rights and interests of Guangdong Expressway, its
the date of
minority shareholders and its holding subsidiaries. 2. The Company and the companies
signing to the
directly or indirectly controlled by the Company except Guangdong Expressway and its
date when the
Guangdong Commitment holding subsidiaries will not use the information obtained from Guangdong Expressway
Provincial Normal
Communicatio on avoiding and its holding subsidiaries to engage in the main business competing with Guangdong
June 26,2015 Expressway is performan
n Group Co., horizontal Expressway or its holding subsidiaries, and will not engage in any acts or activities that
no longer ce
Ltd competition damage or may damage the legitimate rights and interests of Guangdong Expressway, its
controlled by
minority shareholders and its holding subsidiaries. 3. If the Company and other
the
companies directly or indirectly controlled by the Company except Guangdong
controlling
Expressway and its holding subsidiaries transfer any toll roads, bridges, tunnels and
shareholder of
related ancillary facilities or interests invested or managed by the Company to
Guangdong
companies other than the Company directly or indirectly controlled by the Company,
Expressway
Guangdong Expressway shall be entitled to the preemptive right under the same
44
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
conditions, unless the transferee is explicitly designated by the relevant government
authorities under the premise permitted by relevant laws and regulations. 4. In the
future, if the Company and the companies directly or indirectly controlled by the
Company except Guangdong Expressway and its holding subsidiaries invest in the
construction of expressways parallel to or in the same direction within 20 km from each
side of the expressway controlled by Guangdong Expressway, Guangdong Expressway
will be entitled to the priority investment right compared with the Company and the
companies directly or indirectly controlled by the Company except Guangdong
Expressway and its holding subsidiaries, except for the projects whose investment
entities are clearly designated by the relevant government authorities under the premise
permitted by relevant laws and regulations.
1. After the completion of this major asset restructuring, the Company and other
This letter of
companies and other related parties directly or indirectly controlled by the Company
commitment
except Guangdong Expressway and its holding subsidiaries will try to avoid related
is valid from
transactions with Guangdong Expressway and its holding subsidiaries; Related
the date of
transactions that are really necessary and unavoidable are carried out in accordance with
Commitment signing to the
the principles of fairness, equity and compensation of equal value. The transaction price
Guangdong on reducing date when the
is determined at a reasonable price recognized by the market. The transaction approval Normal
Communicatio and Provincial
procedures and information disclosure obligations are performed in accordance with June 18,2015 performan
n Group Co., standardizing Expressway is
relevant laws, regulations and normative documents, and the interests of Guangdong ce
Ltd related no longer
Expressway and its minority shareholders are effectively protected. 2. The Company
transactions controlled by
guarantees to exercise shareholders' rights and fulfill shareholders' obligations in strict
the
accordance with relevant laws and regulations, rules and normative documents
controlling
promulgated by China Securities Regulatory Commission, business rules promulgated
shareholder of
by Shenzhen Stock Exchange and Articles of Association of Guangdong Provincial
Guangdong
Expressway Development Co., Ltd., and it will not use the controlling position of
45
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
controlling shareholders to seek improper benefits or damage the legitimate rights and Expressway
interests of Guangdong Expressway and its minority shareholders.
1. The explanations, commitment and information provided by the Company for this
transaction are authentic, accurate and complete, and there are no false records,
misleading statements or major omissions. 2. The information provided by the Company
to the intermediaries that provide professional services such as auditing, evaluation,
legal and financial consulting for this transaction is authentic, accurate and complete
original written information or duplicate information, and the duplicate or photocopy of
the information is consistent with its original information or original copy; The
Commitment signatures and seals of all documents are authentic, and the legal procedures required for
on signing and sealing have been fulfilled and legal authorization has been obtained; The
Guangdong authenticity, validity of the originals of each document has not been revoked within its validity
Normal
Communicatio accuracy and period, and such originals are held by their respective legal holders up to now; There are November 25, Permanently
performan
n Group Co., completeness no false records, misleading statements or major omissions. 3. The Company guarantees 2020 effective
ce
Ltd of the that if there are false records, misleading statements or major omissions in the
information information provided or disclosed for this transaction, which are filed for investigation
provided by judicial organs or filed for investigation by China Securities Regulatory Commission,
before the investigation conclusion is revealed, the Company promises to suspend the
transfer of shares with interests in Guangdong Expressway, and submit the written
application for suspension of transfer and the stock account to the Board of Directors of
Guangdong Expressway within two trading days after receiving the notice of filing
inspection, and the Board of Directors of Guangdong Expressway will apply for locking
on behalf of the Company to the stock exchange and the registration and clearing
company; If the application for locking is not submitted within two trading days, the
46
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
Board of Directors of Guangdong Expressway is authorized to directly submit the
identity information and account information of the Company to the stock exchange and
the registration and clearing company after verification and apply for locking; If the
Board of Directors of Guangdong Expressway fails to submit the Company's identity
information and account information to the stock exchange and the registration and
clearing company, the stock exchange and the registration and clearing company are
authorized to directly lock the relevant shares. If the investigation results show that there
are violations of laws and regulations, the Company promises to lock in shares and use
them voluntarily for compensation arrangements of relevant investors. 4. The Company
shall bear individual and joint legal responsibilities for the authenticity, accuracy and
completeness of the information provided or disclosed for this exchange. In case of any
loss caused to Guangdong Expressway or investors due to violation of the above
commitments, the Company will bear corresponding liability for compensation
according to law.
Commitment
on fulfilling 1. It will not interfere with the business activities of Guangdong Expressway beyond
Guangdong
filling authority, and will not encroach on the interests of Guangdong Expressway. 2. In case of Normal
Communicatio November 25, Permanently
measures to any loss caused to Guangdong Expressway or investors due to violation of the above performan
n Group Co., 2020 effective
dilute commitments, the Company will bear corresponding liability for compensation ce
Ltd
immediate according to law.
reward
Commitment 1. The land occupied and used by Guangzhou-Huizhou Expressway with a total area of
Normal
on land and 3,732,185.08 square meters has not yet obtained the ownership certificate. The November 25, Permanently
performan
real estate of Company undertakes that: (1) The ownership of the land use right of the 2020 effective
ce
Guanghui above-mentioned land is clear with no dispute, and Guangzhou-Huizhou Expressway
47
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
Expressway can legally occupy and use the above-mentioned land; (2) Guangzhou-Huizhou
Expressway will continue to effectively occupy and use the relevant land before the
ownership certificate is obtained, and will not be materially adversely affected thereby;
(3) After the completion of this transaction, if Guangdong Expressway suffers losses as
a shareholder of Guangzhou-Huizhou Expressway, for losses suffered because
Guangzhou-Huizhou Expressway occupies and uses the above-mentioned land without
ownership certificate, or engages in engineering construction on such land, the
Company will bear the actual losses suffered by Guangdong Expressway. 2. The land
occupied and used by Guangzhou-Huizhou Expressway with a total area of
12,324,867.92 square meters is currently registered under the name of Guangdong
Changda Highway Engineering Co., Ltd. (now renamed as "Poly Changda Engineering
Co., Ltd.", hereinafter referred to as "Changda Company"), of which 8,799,336.79
square meters of land has obtained the ownership certificate, and the other 3,525,531.13
square meters of land has not yet obtained the ownership certificate. The Company
promises that after the completion of this transaction, if Guangdong Expressway suffers
losses as a shareholder of Guangzhou-Huizhou Expressway and because Guanghui
Expressway occupies and uses the land registered under the name of Changda Company,
the Company will bear the actual losses suffered by Guangdong Expressway. 3. The
property ownership certificate has not been obtained for the property with a total area of
72,364.655 square meters occupied and used by Guangzhou-Huizhou Expressway. The
Company promises that: (1) The ownership of the above-mentioned property without
ownership certificate currently used by Guanghui Expressway is clear with no dispute,
and Guangzhou-Huizhou Expressway can legally occupy and use the above-mentioned
property; (2) Guangzhou-Huizhou Expressway will continue to effectively occupy and
use the above-mentioned property before the property ownership certificate is obtained,
and will not be materially adversely affected; (3) After the completion of this
48
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
transaction, if Guangdong Expressway suffers losses as a shareholder of
Guangzhou-Huizhou Expressway and because Guangzhou-Huizhou Expressway
occupies and uses the above-mentioned property without relevant property ownership
certificate, the Company will bear the actual losses suffered by Guangdong Expressway.
1. The explanations, commitment and information provided by the Company for this
transaction are authentic, accurate and complete, and there are no false records,
misleading statements or major omissions. 2. The information provided by the Company
to the intermediaries that provide professional services such as auditing, evaluation,
legal and financial consulting for this transaction is authentic, accurate and complete
original written information or duplicate information, and the duplicate or photocopy of
Commitment
the information is consistent with its original information or original copy; The
on
signatures and seals of all documents are authentic, and the legal procedures required for
Guangdong authenticity,
signing and sealing have been fulfilled and legal authorization has been obtained; There Normal
Guanghui accuracy and November 25, Permanently
are no false records, misleading statements or major omissions. 3. The Company performan
Expressway completeness 2020 effective
guarantees that it will provide timely information about this transaction in accordance ce
Co., Ltd. of the
with relevant laws and regulations, relevant regulations of China Securities Regulatory
information
Commission and Shenzhen Stock Exchange, ensure the authenticity, accuracy and
provided
completeness of such information, and guarantee that there are no false records,
misleading statements or major omissions. 4. The Company shall bear individual and
joint legal responsibilities for the authenticity, accuracy and completeness of the
information provided or disclosed for this exchange. In case of any loss caused to
investors due to violation of the above commitments, the Company will bear
corresponding liability for compensation according to law.
Guangdong Other In order to promote the smooth progress of the issue of shares, the cash purchase of It continued Normal
April 27,2019
Communicatio commitment assets and the raising of matching funds (hereinafter referred to as "the major asset to push performan
49
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
n Group Co., restructuring") approved by Guangdong Expressway Development Co., Ltd. at its forward the ce
Ltd second extraordinary shareholders' meeting in 2015, with regard to all the land and real progress of
estate (hereinafter referred to as "relevant land and real estate") owned by Guangdong accreditation,
Fokai Expressway Co., Ltd. (hereinafter referred to as "Fokai Company") and Jingzhu and
Expressway Guangzhu Section Co., Ltd. (hereinafter referred to as "Guangzhu East completed the
Company") without ownership certificates (hereinafter referred to as "relevant land and registration
real estate") disclosed in the report of Guangdong Expressway Development Co., Ltd. procedures of
on issuing shares and paying cash to purchase assets and raising matching funds and relevant land
related transactions, the company undertook to urge Fokai Company and Guangzhu East and real estate
Company to go through the ownership registration formalities according to the ownership
following plan under the condition that it is conducive to safeguarding the rights and within three
interests of listed companies; Continued to push forward the progress of accreditation, years after the
and completed the registration procedures of relevant land and real estate ownership relevant
within three years after the relevant policies were clear and the relevant land and real policies were
estate met the conditions for handling the registration procedures of ownership, in clear and the
accordance with the relevant laws and regulations and the requirements of the relevant land
competent government departments. and real estate
met the
conditions for
handling the
registration
procedures of
ownership, in
accordance
with the
relevant laws
50
2020 Annual Report
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
and
regulations
and the
requirements
of the
competent
government
departments
Commitments made upon first
issuance or refinance
Equity incentive commitment
Other commitments made to
minority shareholders
Completed on time(Y/N) Yes
Where the commitment
is overdue and has not
been fulfilled, then the
specific reasons for the
failure to complete and
the next work plan shall
be specified
51
2020 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □ Not applicable
Current Current Reasons for
Earnings Original Original
forecast Actual not meeting
forecast asset Forecast Forecast end forecast forecast
performance performance the forecast
or project start time time disclosure disclosure
(RMB 10， (RMB 10， (if
name date index
000） 000） applicable)
Guanghui December
January 1, Not November www.cninfo.
Expressway 31, 65,247.75 76,923.26
2020 applicable 26,2020 com.cn
Co., Ltd. 2022
Note：
The disclosure index includes the link to the website originally predicted to be disclosed, the date of disclosure, th
e name of the announcement, the number of the announcement, etc.
Commitments made by the company’s shareholders and counterparties in the reporting year’
s operating performance
□ Applicable √ Not applicable
The completion of performance commitments and its impact on the impairment test of goodwill
In 2020, the actual net profit of Guangdong Guanghui Expressway Co., Ltd. after deducting non-recurring gains a
nd losses was RMB 769,232,600, which was RMB 116,755,100 more than the promised amount of RMB 652,477,
500.
IV. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
Nome
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √Not applicable
VI. Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√Applicable □ Not applicable
(I) Changes in accounting policies
The Ministry of Finance issued the " No. 14Accounting Standards for Business Enterprises-Revenue (2017
Revision)" (No. 22-[2017]Caikuai) (hereinafter referred to as the "New Revenue Standards") on July 5, 2017. As
approved by the fourth meeting of the ninth board of directors of the Company on April 3, 2020, the Company
shall begin to implement the aforementioned new revenue standards on January 1, 2020.
52
2020 Annual Report
The new revenue standard establishes a new revenue recognition model for regulating revenue generated
from contracts with customers. In order to implement the new revenue standards, the Company reassessed the
recognition and measurement, accounting and presentation of revenue of main contract. According to the
provisions of the new revenue standard, the selection is only to adjust the cumulative impactamount of contracts
that have not been completed on January 1, 2020. The first adjustment amount of cumulative impact of the first
implementation is to implement the amount of retained earnings and other related items in the financial statements
at the beginning of the first implementation period (ie January 1, 2020), and it shall not be adjusted for the
comparable period information.
(II) Changes in accounting estimates
1.On December 31, 2019, the Company held the 3rd (provisional) meeting of the ninth board of directors, which
passed the Proposal on Changes in Accounting Estimates, and agreed to adopt the Traffic Volume Forecast and
Charge Revenue Report of Foshan-Kaiping Expressway and the Traffic Volume Forecast and Charge Revenue
Report of Guangzhu Section of Jingzhu Expressway issued by Guangdong Transportation Planning and Design
Institute Co., Ltd. in 2019 for the Fokai Branch of Guangdong Expressway Development Co., Ltd., a branch of
the Company, and Jingzhu Expressway Guangzhu Section Co., Ltd., a holding subsidiary from January 1, 2020.
The Company adopts the future applicable method for this item. This change in accounting estimate results in a
decrease of RMB172,308,077.27 in depreciation of fixed assets in the current period than the original accounting
estimate, a decrease of RMB 172,308,077.27 in operating cost, an increase of RMB 129,231,057.95 in net profit
attributable to the shareholders of the parent company, an increase of RMB123,155,223.57 in net profit
attributable to the minority shareholders of the parent company，and an increase of RMB 6,075,834.39 in Impact
attributable to minority shareholder gains and losses.
2. On August 26, 2020, the Company held the 9th (provisional) meeting of the ninth board of directors,
which passed the Proposal on Changes in Accounting Estimates, It is agreed that from September 1, 2020, the
depreciation period of machinery and equipment, electronic equipment and other equipment has been changed,
and the net salvage value rate of fixed assets (except road property) has also been changed. For this matter, the
Company adopts the future applicable method, and such change in accounting estimate results in depreciation of
fixed assets in the current period of RMB 33,759,072.50 more than the original accounting estimate.an increase of
RMB 33,759,072.50 in operating cost, a decrease of RMB25,319,304.38 in net profit，a decrease of
RMB24,086,113.34 in net profit attributable to the minority shareholders of the parent company，and a decrease of
RMB1,233,191.05 in Impact attributable to minority shareholder gains and losses.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
None
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
√Applicable □ Not applicable
1.Compared with 2019, the scope of consolidation in this year was reduced to Guangzhou Guangzhu
Transportation Investment Management Co., Ltd., which was due to the internal consolidation by merger of the
Company.
2.Compared with 2019, Guangdong Guanghui Expressway Co., Ltd. was added to the scope of consolidation
53
2020 Annual Report
this year, because the Company acquired its 21% equity and held 51% equity of Guanghui Expressway, and
Guanghui Expressway was changed from an affiliated company to a subsidiary.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
YongTuo Certified Public Accountants (Special General
Name of the domestic CPAs
Partnership)
Remuneration for domestic accounting firm (Ten thousands yuan) 127.20
Successive years of the domestic CPAs offering auditing services 1
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
The 6th meeting of the 9th Board of Directors held on June 8, 2020 deliberated and passed the Proposal on
Hiring Audit Institution for Financial Report in 2020, agreeing that the Company would hire Yong Tuo Certified
Public Accountants (Special General Partnership) as the audit institution for the Company's financial report in
2020. On June 29, 2020, the company's shareholders' meeting in 2019 deliberated and passed the Proposal on
Hiring Audit Institution for Financial Report in 2020.
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing
√Applicable □ Not applicable
1.The 6th meeting of the 9th Board of Directors held on June 8, 2020 deliberated and passed the Proposal on
Hiring Audit Institution for Financial Report in 2020, agreeing that the Company would hire Yong Tuo Certified
Public Accountants (Special General Partnership) as the audit institution for the Company's financial report in
2020. On June 29, 2020, the company's shareholders' meeting in 2019 deliberated and passed the Proposal on
Hiring Audit Institution for Financial Report in 2020.
2.During the reporting period, the Company hired China International Capital Corporation as an independent
financial adviser for the Company to acquire 21% of the shares of Guanghui Company held by the Provincial
Expressway Company through cash payment.
X. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
XI. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
54
2020 Annual Report
None
XII. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
XIII. Situation of Punishment and Rectification
□Applicable √ Not applicable
None
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
None
XVI. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
None
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
None
3. Related-party transitions with joint investments
□Applicable √ Not applicable
None
4. Credits and liabilities with related parties
□Applicable √ Not applicable
None
5. Other significant related-party transactions
√Applicable □ Not applicable
1. In the 3rd (Provisional) meeting of the ninth session of the board of directors of the Company, it deliberated
and approved the "Proposal on Borrowing Entrusted Loans from Guangdong Jiangzhong Expressway Co., Ltd."
and agreed that the Company borrowed unsecured entrusted loans from Guangdong Jiangzhong Expressway
Cp.,Ltd, with the loan amount does not exceed 18 million yuan, which shall be drawn according to the actual
needs of the Company and shall be used for daily business turnover, with a term of 5 years and using the
"1+1+1+1+1" model-that is, every year is one loan cycle, and if the Company does not propose to repay the loan,
55
2020 Annual Report
the loan will be automatically transferred to the next one-year period. The interest rate is 10%lowered than the
benchmark one-year loan interest rate announced by the People's Bank of China and it’s adjusted annually.
2. In the 4th meeting of the ninth board of directors of the Company, it deliberated and approved the
"Proposal on the Company’s Estimated Routine Related Party Transactions in 2020", agreed to the estimated
routine related transactions in 2020 for the Company’s headquarter and its wholly-owned and holding
subsidiaries’, with the transaction amount totaled in 64,091,200 yuan.
3. In the 5th (Provisional) meeting of the ninth session of the board of directors of the Company, it reviewed
and approved the "Proposal on Renewing the Lease of Litong Plaza Office Place", agreeing that the Company will
continue to lease the 43, 44 full-floor units (full-floor units of floors 45, 46 upon it self-edited) of the planned
floors of Litong Plaza from Guangdong Litong Real Estate Investment Co., Ltd for office space, with a lease term
of 3 years-from May 5, 2020 to May 4, 2023. The monthly rent for the period from May 5, 2020 to May 4, 2021 is
815,233.68 yuan, the monthly rent for the period from May 5, 2021 to May 4, 2022 is 839,690.69 yuan,and the
monthly rent for the period from May 5, 2022 to May 4, 2023 is 864,884.64 yuan..
4. In the 6th (Provisional) meeting of the eighth session of the Company’s board of directors, it deliberated
and approved the “Proposal on the signing of the 2018-2020 entrusted operation and management contract of
Guangzhu North Section of Guangdong Jingzhu Expressway between the Guangzhu Section Company and the
Guangzhu North Section Company, agreed to the Jingzhu Expressway Guangzhu Section Co., Ltd. (hereinafter
referred to as "Guangzhu Section Company") and Guangdong Jingzhu Expressway Guangzhu North Section Co.,
Ltd. (hereinafter referred to as "Guangzhu North Section Company") to sign “The 2018-2020 Entrusted Operation
Management Contract for the North Section of Guangzhu Sectionof Guangdong Jingzhu Expressway, with the
total contract amount does not exceed 60 million yuan. For details of this matter, please refer to the
"Announcement on Related Party Transaction on Entrusted Operations of Subsidiaries" published by the
Company on January 31, 2018.
5. In the 12th (Provisional) meeting of the Ninth Session of the Board of Directors of the Company, it
reviewed and approved the "Proposal on Renewing the Financial Service Agreement with Guangdong
Communication Group Finance Co., Ltd.".
6. In the 13th (Provisional) meeting of the ninth board of directors of the Company and the third
extraordinary general meeting of shareholders in 2020, it reviewed and approved the "Proposal on the Company's
Major Asset Reorganization Namely the Related Party Transaction", and agreed to the Company acquiring 21%
equity of Guanghui Expressway held by Provincial Expressway through cash payment.
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing Description of the website for disclosing
Description of provisional announcement
provisional announcement provisional announcements
Announcement of related party transaction January 2,2020 www.cninfo.com.cn
Estimates announcement of the Daily Related
April7,2020 www.cninfo.com.cn
Party Transaction of 2020
Announcement of related party transaction April 29,2020 www.cninfo.com.cn
Announcement on related transactions to the
June 9,2020 www.cninfo.com.cn
entrusted operation by subsidiaries
Announcement of related party transaction October 29,2020 www.cninfo.com.cn
Announcement of Resolutions of the 13th November 26,2020 www.cninfo.com.cn
56
2020 Annual Report
(Provisional) Meeting of the Ninth Board of
Directors, "Major Asset Purchases and Related
Party Transactions Report", etc
Announcement of Resolution of the Third
December 16,2020 www.cninfo.com.cn
Provisional Shareholder's Meeting
XVII. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
None
(2) Contract
□ Applicable √ Not applicable
None
(3) Lease
□Applicable √ Not applicable
None
2.Guarantees
√ Applicable □Not applicable
（1）Guarantees
In RMB
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
signing guarantee parties
guaranteed or not
agreement) (Yes or no)
amount
Guangdong
Communicat May 11, May 2012.9.25-
172,500 172,500 Pledge Yes Yes
ion Group 2012 31,2013 2020.3.25
Co.,Ltd
Total balance of actual
Total of external guarantee
0.00 external guarantee at 0.00
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
57
2020 Annual Report
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implemen for
date/No. of Guarantee Guarantee
Company of (Date o mount of tation associated
the type term
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implemen for
date/No. of Guarantee Guarantee
Company of (Date o mount of tation associated
the type term
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of actual guarantee
Total of guarantee at
0.00 at Period-end 0.00
Period-end（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee
0.00
in the net assets of the Company(that is A4+B4+C4)
Including
Amount of guarantee for shareholders, actual controller
0.00
and its associated parties（D）
Total guarantee Amount of the abovementioned
0.00
guarantees（D+E+F）
Note
（2）Illegal external guarantee
□ Applicable √ Not applicable
None
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
None
(2)Situation of Entrusted Loans
4.Major contracts for daily operations
58
2020 Annual Report
□ Applicable √ Not applicable
None
5. Other significant contract
□ Applicable √ Not applicable
None
XVIII. Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
In 2020, the Company strived to overcome the adverse effects of the epidemic, worked pragmatically and
solidly and overcome the difficulties. While strictly implementing various prevention and control measures to
achieve zero infection in the Company, it stood firmly in the front line of epidemic prevention, ensured smooth
roads traffic, and fully coordinate the promotion of normalized epidemic prevention and control and promoted the
Company’s various tasks, effectively promoted the stability and improvement of its economic operations.
(1) In order to prevent and control the epidemic, the Company's participation-in and holding expressway
companies actively responded to the higher-level policies, and from 00:00 on February 17, 2020 to 24:00 on May
5, the vehicle tolls of the national toll road were exempted. The Company’s party committee and management
team actively mobilized volunteers from the party working group to participate in the epidemic prevention and
control work to effectively fight the epidemic.
(2) The policy of exemption of tolls, intermittent toll-free release, and green channel preferential policies for
passenger cars with less than seven seats on highways during major holidays shall continue to be implemented.
Guangfo Company, Fokai Branch, Guangzhu-Dong Company, and Guanghui Company effectively implemented
the " Recognition, personnel, responsibilities, and measures are in place" and successfully completed various tasks
to ensure safety and smooth flow.
(3)Actively responded to government policies and provided preferential reductions and exemptions in
accordance with laws and regulations to reduce corporate transportation costs and public travel costs.
(4)Conscientiously implemented the government's tasks and completed the transformation and switching of
the ETC toll collection system at the provincial toll station on time. After the resumption of toll collection on May
6, 2020, the Company's holding section of toll gates ran smoothly, Yuetong Card Expressway service points were
operated in an orderly manner, the toll lane fee display and data transmission were normal, the lane configuration
was continuously optimized, and the ETC system is generally stably operated.
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
59
2020 Annual Report
protection department
No
XIX. Explanation on other significant events
□ Applicable √Not applicable
None
XX. Significant event of subsidiary of the Company
□ Applicable √Not applicable
60
2020 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
Amount Proportion Capitali
Bon zation
Share
us of Proporti
allotm Other Subtotal Quantity
shar common on
ent
es reserve
fund
1.Shares with conditional -129,94
439,384,658 21.02% -129,941 439,254,717 21.01%
subscription 1
1.State-owned shares 410,032,765 19.61% 7,931 7,931 410,040,696 19.61%
2.State-owned legal person
21,712,738 1.04% 0 21,712,738 1.04%
shares
-137,87
3.Other domestic shares 7,639,155 0.37% -137,872 7,501,283 0.36%
2
Including ：Domestic
7,028,355 0.34% -63,260 -63,260 6,965,095 0.33%
Legal person shares
Domestic natural person
610,800 0.03% -74,612 -74,612 536,188 0.03%
shares
4.Foreign shares 0 0.00% 0 0 0 0.00%
Including：Foreign legal
0 0.00% 0 0 0.00%
person shares
Foreign natural person
0 0.00% 0 0 0.00%
shares
II.Shares with 129,94
1,651,421,468 78.98% 129,941 1,651,551,409 78.99%
unconditional subscription 1
129,94
1.Common shares in RMB 1,302,772,793 62.31% 129,941 1,302,902,734 62.32%
1
2.Foreign shares in
348,648,675 16.68% 0 0 348,648,675 16.68%
domestic market
3.Foreign shares in foreign
0 0.00% 0 0 0 0.00%
market
4.Other 0 0.00% 0 0 0 0.00%
III. Total of capital shares 2,090,806,126 100.00% 0 0 2,090,806,126 100.00%
61
2020 Annual Report
Reasons for share changed
√ Applicable □Not applicable
1. Within the reporting period, 17 shareholders reimbursed 7,931 shares of Guangdong Provincial
Communication Group Co.,Ltd., which were converted from domestic natural person to "national shareholding".
2.During the reporting period, 51，112 shares held by domestic natural persons with limited sales conditions were
converted into shares with unlimited sales conditions.
3.During the reporting period, 63，260 shares held by domestic natural persons with limited sales conditions
were from domestic Legal person.
4.During the reporting period, Ms. Li Mei, the outgoing supervisor ， held 86,629 restricted shares and changed
them into unrestricted shares.
4.During the reporting period, Mr. Du Jun, the outgoing Director ， held 7,800 Unrestricted shares and changed
them into restricted 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
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
62
2020 Annual Report
The shares for
restricted sales by
Guangdong share reform has
Communication 410,032,765 7,931 410,040,696 not yet be subject Unknown
Group Co., Ltd. to the procedures
for lifting the
restriction.
Wang Jianhua Release of
June
and other 17 59,043 51,112 0 restrictions on
24,2020
shareholders sales
Deletion of top
January
Li Mei 86,629 86,629 0 Supervisor locking
2020
shares
Top director
Du Jun 0 7,800 7,800 Unknown
locking shares
Total 410,178,437 15,731 137,741 410,048,496 -- --
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
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total Total
The total number
Total number of shareholders at preference
of preferred shar
common the end of the shareholders
eholders voting r
shareholders at the 36,100 month from 55,412 0 with 0
ights restored at
end of the the date of voting rights
period-end (if
reporting period disclosing the recovered at
any)(Note 8)
annual report end
63
2020 Annual Report
of last month
before annual
report
disclosed(if
any)(Note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of
Proport
Number of share
ion of Changes in Amount of Amount of
Nature of shares held pledged/frozen
Shareholders shares reporting restricted un-restricted
shareholder at period State
held period shares held shares held Amou
-end of
（%） nt
share
Guangdong
State-owned
Communication Group 24.56% 513,420,438 7,931 410,040,696 103,379,742
legal person
Co.,Ltd
Guangdong Highway State-owned
22.30% 466,325,020 466,325,020
Construction Co., Ltd, legal person
Shangdong Expressway
State-owned
Investment 9.68% 202,429,149 202,429,149
legal person
Development Co., Ltd.
Tibet Yingyue
State-owned
Investment 4.84% 101,214,574 101,214,574
legal person
Management Co., Ltd.
Guangdong Provincial State-owned
2.53% 52,937,491 19,582,228 33,355,263
Freeway Co.,Ltd. legal person
China Life Insurance
Co., Ltd.－Dividend
Other 1.96% 41,009,355 6,233,802 41,009,355
－Personal dividend
-005L-FH002 Shen
China Life Insurance
Co., Ltd.－Traditional
－Common insurance Other 1.78% 37,225,847 5,913,227 37,225,847
products-005L-CT001S
hen
Domestic
Feng Wuchu natural person 0.99% 20,793,853 4,329,406 20,793,853
shares
Overseas legal
Xinyue Co., Ltd. 0.63% 13,201,086 13,201,086
person
Guangdong Tapai Domestic non 0.55% 11,550,604 11,150,604 11,550,604
64
2020 Annual Report
Group Co., Ltd. State-owned
Legal person
Strategic investor or general legal person
becoming top-10 ordinary shareholder due None
to rights issue (if any)（See Note 3)
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong
Highway Construction Co., Ltd. and Guangdong Provincial Freeway Co.,Ltd. ， It is
Related or acting-in-concert parties among
unknown whether there is relationship between other shareholders and whether they are
shareholders above
persons taking concerted action specified in the Regulations on Disclosure of Information
about Change in Shareholding of Shareholders of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at Share type
Name of the shareholder
the end of the reporting period Share type Quantity
Guangdong Highway Construction Co.,
466,325,020 RMB Common shares 466,325,020
Ltd,
Shangdong Expressway Investment
202,429,149 RMB Common shares 202,429,149
Development Co., Ltd.
Guangdong Communication Group Co.,Ltd 103,379,742 RMB Common shares 103,379,742
Tibet Yingyue Investment Management
101,214,574 RMB Common shares 101,214,574
Co., Ltd.
China Life Insurance Co., Ltd.－Dividend
41,009,355 RMB Common shares 41,009,355
－Personal dividend -005L-FH002 Shen
China Life Insurance Co., Ltd.－
Traditional－Common insurance 37,225,847 RMB Common shares 37,225,847
products-005L-CT001Shen
Guangdong Provincial Freeway Co.,Ltd. 33,355,263 RMB Common shares 33,355,263
RMB Common shares 18,487,990
Feng Wuchu 20,793,853 Foreign shares placed in
2,305,863
domestic
Foreign shares placed in
Xinyue Co., Ltd. 13,201,086 13,201,086
domestic
Guangdong Tapai Group Co., Ltd. 11,550,604 RMB Common shares 11,550,604
Explanation on associated relationship or
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong
consistent action among the top 10
Highway Construction Co., Ltd. and Guangdong Provincial Freeway Co.,Ltd. ， ,It is
shareholders of non-restricted negotiable
unknown whether there is relationship between other shareholders and whether they are
shares and that between the top 10
persons taking concerted action specified in the Regulations on Disclosure of Information
shareholders of non-restricted negotiable
about Change in Shareholding of Shareholders of Listed Companies.
shares and top 10 shareholders
Top 10 ordinary shareholders conducting None
65
2020 Annual Report
securities margin trading (if any) (see note
4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type: Legal person
Name of the Legal
Date of
Controlling representat Organization code Principal business activities
incorporation
shareholder ive/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
Deng management, traffic infrastructure construction,
Communication June 23,2000 91440000723838552J
Xiaohua highway and railway project operation and relevant
Group Co., Ltd.
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
Guangdong Communication Group Co., Ltd. holds 74.12% equity of Guangdong Nanyue Logistics Co., Ltd.,
controlling
a company listing H shares.
shareholder by
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
66
2020 Annual Report
No changes of controlling shareholder for the Company in reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the actual Date of
representative Organization code Principal business activities
controller incorporation
/Leader
As an ad hoc body directly under the
State-owned Assets
Guangdong Provincial People's
supervision and
Government, commissioned by the
administration
provincial government to fulfill the
Commission of Li Cheng June 26,2004 114400007583361658
State-owned asset investor, regulatory
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
company with share As an ad hoc body directly under the Guangdong Provincial People's Government, commissioned by
controlling and share the provincial government to fulfill the State-owned asset investor, regulatory enterprises to
participation by implement the rights, obligations and responsibilities, pipe asset control and 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
67
2020 Annual Report
State-owned Assets Supervision and
Administration Commission the
people’s Government of Guangdong
Province
100%
Guangdong Communication Group
Co., Ltd.
Guangdong Province Guangdong Highway Guangdong Province Guangdong Xinyue
Transportation Construction Co., Ltd. Expressway Co., Ltd. Co., Ltd.
Development Co., Ltd
0.10% 22.30% 24.55% 2.53% 0.63%
Guangdong Provincial Expressway Development Co., Ltd
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Particulars about other legal person shareholders with over 10% share held
√ Applicable □Not applicable
Legal
Legal person Date of Main operation business or management
person/person in Register capital
shareholder foundation activities
charge of the unit
Highway, bridge, tunnel bridge, traffic
infrastructure construction, investment
and management, technical consulting,
Guangdong Highway 8,827.36846696 leasing of road construction machinery;
Wang Kangchen April 16,1987
Construction Co., Ltd. million yuan sales of construction materials,
construction machinery equipment;
vehicle rescue services
(operated by the branch).
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects □Applicable √Not applicable
68
2020 Annual Report
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
69
2020 Annual Report
VIII Information about convertible corporate bonds
□ Applicable √Not applicable
During the reporting period, the company did not have convertible corporate bonds.
70
2020 Annual Report
IX. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Shares Amount of Amount of
Other Shares held
Starting held at shares shares
Expiry date changes at the
Name Positions Office status Sex Age date of the increased at the decreased at
of tenure increase year-begin(
tenure year-begi reporting the reporting
/decrease share)
n(share) period(share) period(share)
January September
Zheng Renfa Board Chairman In office Male 51
4,2017 20,2022
October September
Wang Chunhua Director, General Manager In office Male 56 135,100 135,100
19,2015 20,2022
July September
Chen Min Director In office Male 57
19,2017 20,2022
December September
Zeng Zhijun Director In office Male 50
4,2017 20,2022
July September
You Xiaocong Director In office Male 53
21,2020 20,2022
December September
Zhuo Weiheng Director In office Male 49
4,2017 20,2022
Novembe September
Wu Hao Director In office Female 48
r 2,2020 20,2022
July September
Huang Hai Director In office Male 45
21,2016 20,2022
Gu Naikang Independent director In office Male 55 July September
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2020 Annual Report
Shares Amount of Amount of
Other Shares held
Starting held at shares shares
Expiry date changes at the
Name Positions Office status Sex Age date of the increased at the decreased at
of tenure increase year-begin(
tenure year-begi reporting the reporting
/decrease share)
n(share) period(share) period(share)
21,2016 20,2022
July September
Bao Fangzhou Independent director In office Male 42
21,2016 20,2022
December September
Zhang Hua Independent director In office Male 55
4,2017 20,2022
December September
Liu Zhonghua Independent director In office Male 55
4,2017 20,2022
May September
Zeng Xiaoqing Independent director In office Female 51
20,2019 20,2022
Chairman of the Supervisory May September
Jiang Changwen In office Male 53
Committee 20,2019 20,2022
July September
Li Haihong Supervisor In office Female 49
21,2016 20,2022
Septembe September
Ke Lin Supervisor In office Female 51
r 15,2017 20,2022
Septembe September
Feng Yuan Supervisor In office Male 56
r 9,2019 20,2022
Septembe September
Zhou Yisan Supervisor In office Male 40
r 9,2019 20,2022
October September
Zuo Jiang Deputy General Manager In office Female 48
19,2015 20,2022
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2020 Annual Report
Shares Amount of Amount of
Other Shares held
Starting held at shares shares
Expiry date changes at the
Name Positions Office status Sex Age date of the increased at the decreased at
of tenure increase year-begin(
tenure year-begi reporting the reporting
/decrease share)
n(share) period(share) period(share)
August September
Cheng Rui Deputy General Manager In office Male 46
28,2017 20,2022
December September
Lu Ming Chief accountant In office Male 42
25,2020 20,2022
December September
Luo Baoguo Deputy General Manager In office Male 47
25,2020 20,2022
July September
He Bing legal counsel In office Female 53
23,2012 20,2022
August September
Yang Hanming Secretary to the Board In office Male 51
28,2017 20,2022
April January
Wang Ping Director, Chief engineer Dimission Female 56 3,500 3,500
21,2014 8,2020
July June
Du Jun Director Dimission Male 55 0 10,400 10,400
21,2016 24,2020
July September
Cao Yu Director Dimission Male 35 150,000 150,000
21,2016 4,2020
December December
Fang Zhi Director, Chief accountant Dimission Male 57
31,2015 21,2020
Total -- -- -- -- -- -- 288,600 10,400 0 0 299,000
73
2020 Annual Report
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Director, Chief
Wang Ping Dimission January 8,2020 Retired
engineer
Du Jun Director Dimission June 24,2020 Job change
Cao Yu Director Dimission September 4,2020 Job change
Director, Chief
Fang Zhi Dimission December 21,2020 Job change
accountant
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 evecutive director and Legal representative of Guangdong
74
2020 Annual Report
Yuegaoke Capital Investment (Hengqin) 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
vice chairman of Shenzhen Huiyan Expressway Co., Ltd.
Lu Ming, is the director of the Company, chief accountant, senior accountant, with the graduate
degreeandMBA. From July 1999 to February 2001, he served as the accountant of Jingzhu Expressway Guangzhu
Section Co., Ltd; from February 2001 to November 2003, he served as the accountant of the Zhongjiang
Expressway Project Preparation Office, and from November 2003 to September 2006, he served as Deputy
Manager of the Accounting and Finance Department of the West Ring Section (South Section) of the Pearl River
Delta Ring Expressway. From September 2006 to February 2008, he served as the accountant of the Financial
Audit Department of Guangdong Provincial Highway Construction Co., Ltd. From February 2008 to March 2009,
he successively served as the deputy manager and manager of the Finance Department of the Southern Branch of
the West Second Ring Road of Guangdong Provincial Highway Construction Co., Ltd;from March 2009 to
December 2020, he served as the manager personnel, deputy supervisor of business and business supervisor of the
Financial Management Department of Guangdong Provincial Communications Group Co., Ltd. During the period
from December 2018 to December 2019, he served as the first secretary of the Party branch of the Yinghuai
Management Office of the Longhuai Expressway Management Center of Nanyue Transportation of Guangdong
Province. He has been the chief accountant of the Company since December 25, 2020, and he has served as the
director of the Company since February 3, 2021.
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 September 2020, He serves as Minister of personnel resource department，Since December 4, 2017,
he serves as Director of the Company.
You Xiaocong, senior accountant,is the director of the Company, with bachelor degree. From August 1990 to
May 2008, he successively served as the deputy manager and manager of the finance department of Guangfa
Transportation Co., Ltd., and the manager, director and chief accountant of the finance department of Macau
Qi’guan Che’lu Co., Ltd. From May 2008 to January 2015, he served as the assigned chairman of the board of
supervisors ofGuangdong Provincial Communications Group Co., Ltd. From January 2015 to May 2015, he
served as the director and chief accountant of Guangdong Provincial Highway Construction Co., Ltd., and since
May 2015, he has served as the director, chief accountant, and member of the party committee of Guangdong
Provincial Highway Construction Co., Ltd. He has served as director of the Company since November 2, 2020.
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2020 Annual Report
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.,From December 4, 2017 to February 24,2021, he served as Director of the Company.
Wu Hao (resigned from the director and member of the Audit Committee on December 21), is the director of
the Company,with bachelor degree. From September 1992 to October 2011, she successively served as a section
member and deputy section chief of the Finance Section of the Administration for Industry and Commerce of
Tongzi County, Guizhou Province. From October 2011 to February 2012, he served as the section chief of the
Finance Section of the Huichuan District Administration for Industry and Commerce, Zunyi City, Guizhou
Province. From April 2013 to May 2020,S he successively served as deputy manager of the finance department,
deputy manager of the investment business department, and manager of the investment business department of
Shandong Expressway Investment Development Co., Ltd. She has served as the deputy general manager and
member of party committee of Shandong Expressway Investment Development Co., Ltdsince May 2020. From
November 2, 2020, he has served as director of the Company.
Mr. Huang Hai, MBA, joined the work in 1997. He had successively served as the business manager of the
financial department of Shenzhen Wofa Medical New Technology Development Co., Ltd., the manager of the
marketing department of Shantou Branch of Guangzhou Xingda Communication Co., Ltd, the manager of the
securities department and securities affairs representative of Zhongshan Public Technology Co., Ltd., andDeputy
General Manager of the Securities Department of Poly Real Estate and Director of the Office of the Secretary of
the Board of Directorsof Poly Real Estate, currently serving as Secretary of the Board and Director of the Office
of the Board of Directors of Poly Development Holding Group Co., Ltd., Chairman of Poly Property
Development Co., Ltd., Executive Director and General Manager of Tibet Yingyue Investment Management Co.,
Ltd. Since July 21, 2016, he has served as director of the Company.
Mr. Bao Fangzhou, Independent director of the Company, Master of Law. Shanghai Jin Tiancheng Law Firm,
Senior Partner, 2008 - 2014 Former Independent Director of New Nanyang Co., Ltd. Since 2013, he has been an
independent director of Hubei Wushi Pharmaceutical Co., Ltd. since June 2016, Power Co., Ltd. Independent
Director. From July 21, 2016,He is an independent director of the Company.
Gu Naikang, Independent directors and doctorate degree of the Company. Since June 2004, he has been a
professor and doctoral tutor of Finance and Investment Department of Zhongshan University School of
Management. He is currently an independent director of Guangxi Guitang (Group) Co., Ltd., an independent
director of Dongguan Yuqiu Electronics Co., Ltd. and an independent director of Guangzhou Zhujiang Industrial
Development Co., Ltd. From July 21, 2016, he is an independent director of the Company.
Mr. Liu Zhonghua, professor of accounting, is an independent director of the Company, with master degree.
In September 2005, he was transferred to the School of Management of Guangdong University of Foreign Studies
to teach. He is currently a professor at the School of Accounting of Guangdong University of Foreign Studies, he
is a master tutor, concurrently serves as member of Accounting Society of China, executive member of China
Association of Foreign Trade and Economic Accounting, vice chairman of Guangdong Province Management
Accounting Association, executive member of Guangdong Provincial Accounting Association and member of
Guangdong Audit Society. Since December 4, 2017, he is an independent director of the Company.
Mr. Zhang Hua, economist, is an independent director of the Company, with Master Degree. From May 2006
to May 2012, he served as deputy general manager and chief investment director of Guangzhou Yingzhi Caihua
76
2020 Annual Report
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 bachelor's, master's and doctor's degrees
from Tongji University. Since 1993, she conducted training and study at Tsinghua University and German
Darmstadt University of Technology. From February 2000 to October 2002, she conducted post-doctoral research
and study in Tokyo Institute of Technology, Japan. She began to work in Tongji University in 1993, served as
assistant director of Shanghai Municipal Government's Expo Science and Technology Promotion Center from
2005 to 2012, and served as vice-chairman and secretary-general of Shanghai Creative Studies Institute from 2012;
She is currently the director of Tongji University's Joint Experimental Center for Traffic Information Control,
professor and doctoral supervisor of Tongji University's School of Transportation Engineering. From May 20,
2019, she served as the independent director of the Company.
Mr. Jiang Changwen, male, is 52 years old, master of management, senior accountant, senior economist.
From July 1999 to November 2006, he worked in Guangshenzhu Expressway Co., Ltd., and served as the
supervisor, deputy manager and manager of the accounting department. From November 2006 to January 2009, he
worked in the Jiangzhong Expressway Company, and served as the finance department manager; since January
2009, he has worked in the Guangdong Provincial Transportation Group Co., Ltd, and has served as a supervisor.
From May 20,2019, he is the assigned chairman of the supervisory board of Guangdong Communication Group
Co., Ltd.
Ms. 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 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
77
2020 Annual Report
October 2014, he served as deputy general manager of Guangdong Jiangzhong Expressway Co., Ltd. and director
and deputy general manager of Jingzhu 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
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.
Mr. Luo Baoguo, deputy general manager of the Company, with graduate degree and master of engineering, is
senior engineer. From July 1999 to December 2003, he successively served as the chief engineer of the L bid
project of the southern section of the Jingzhu Expressway of the Guangdong Provincial Highway Engineering
Construction Group Co., Ltd., the deputy manager and technical sponsor of the southern Jingzhu pavement project,
Deputy Manager and Chief Engineer of the Pavement Project Department of the Jingzhu Southern Fogang Section,
Manager of the Project Manager Department and Deputy Manager of the Second Branchof the Eighth Contract
Section of Henan Jiaozuo-Jincheng Expressway. From December 2003 to March 2007, he successively served as
the manager of the university town project, the manager of the business contract department, and the employee
supervisor of the Guangdong Jingtong Highway Engineering Construction Group Co., Ltd. From March 2007 to
July 2014, he served as Director of the Project Development Office and Director of the Investment Development
Department of Guangdong Expressway Development Co., Ltd. From August 2014 to July 2017, he served as the
director, general manager and deputy party secretary of Guangdong Fokai Expressway Co., Ltd. From August
2017 to December 2020, he served as the general manager (person in charge) and deputy secretary of the Party
Committee of Fokai Branch of Guangdong Expressway Development Co., Ltd. From December 25, 2020, he has
served as the deputy general manager of the Company. He concurrently serves as the chairman of Zhaoqing
Yuezhao Highway Co., Ltd.-the company's share-participating company, and serves as the vice chairman of
78
2020 Annual Report
Guangdong Jiangzhong Expressway Co., Ltd.
Ms. He Bing , general counsel, master's degree in law, enterprise legal adviser, from August 2005 to July 2012,
she served as Deputy chief economic engineer of the Company, Since July 2012, she served as Chief legal adviser
of the Company. and hold a concurrent post of Director of Huiyan Expressway Co., Ltd., and Director of Guanghui
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, vice Chairman of
Ganzhou Gankang Expressway Co., Ltd., Director of Guangdong Jiangzhong Expressway Co., ltd. and supervisor
of Guangdong Yueke Technology Petty Loan Co., Ltd., Since September 2019, he served as Minister of Development
Dept of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Expiry
Names of the Sharing date receive
Titles engaged in the date of
persons in Names of the shareholders of office remuneration or
shareholders office
office term allowance from
term
the shareholder
Guangdong Communication Minister of Investment December
Chen Min Yes
Group Management Dept. 1,2014
You Guangdong Highway January
Director, Chief accountant Yes
Xiaocong Construction Co., Ltd. 14,2015
Zhuo Guangdong Highway March
Deputy Chief Accountant Yes
Weiheng Construction Co., Ltd. 26,2018
Guangdong Expressway Co., Minister of legal affairs September
Zeng Zhijun Yes
Ltd Dept 1,2015
Tibet Yinyue Investment
Huang Hai Executive director June 1,2015 No
Management Co., Ltd.
Jiang Guangdong Communication Dispatched chairman of the January
Yes
Changwen Group Co., Ltd. supervisory committee 1,2009
Guangdong Communication
Li Haihong Full-time field supervisors July 21,2016 Yes
Group Co., Ltd.
Offices taken in other organizations
√Applicable □Not applicable
Does he/she
Name of the Starting
Titles engaged in the Expiry date of receive
persons in Name of other organizations date of
other organizations office term remuneration
office office term
or allowance
79
2020 Annual Report
from other
organization
January
Bao Fangzhou Shanghai Allbright law firm Lawyer, Senior partner Yes
1,2000
June
Bao Fangzhou Laurel Power Co., Ltd. Independent director Yes
1,2016
Finance and Investment ,School of Business Professor, doctoral January
Gu Naikang Yes
Sun YAT-SEN University supervisor 1,2004
Guangzhou Zhujiang Industry Development May
Gu Naikang Independent director July 1,2020 Yes
Co., Ltd. 1,2014
Mingyang Intelligent Energy Group Co.,
Gu Naikang Supervisor July 1,2017 Yes
Ltd.
December
Gu Naikang Zhubo Design Co., Ltd. Independent director Yes
1,2019
June
Gu Naikang Guangfa Securities Co., Ltd. Supervisor June 1,2020 Yes
1,2016
Shanghai Erro Investment Management October
Zhang Hua General Manager Yes
Service Centre(General partnership) 1,2016
Zhuhai Taichuan Community Technology September
Zhang Hua Independent director Yes
Co., Ltd . 1,2017
November
Zhang Hua Guangzhou Yuyin Technology Co., Ltd. Independent director Yes
1,2018
September
College of Accounting, Guangdong Professor, Master’s
Liu Zhonghua 1, Yes
University of Foreign Studies supervisor
2005
March
Liu Zhonghua Gelinmei Co., Ltd. Independent Director Yes
20,2019
June
Liu Zhonghua Guangdong Shaogang Songshan Co., Ltd. Independent Director Yes
25,2019
Shandong Expressway Investment May,
Wu Hao Deputy GM Yes
Development Co., Ltd. 29,2020
Poly Developments and Holdings Group April
Huang Hai Secretary to the Board Yes
Co., Ltd. 26,2012
April
Huang Hai Poly Property Development Co., Ltd. Board chairman No
22,2019
Tongji University's School of Professor and doctoral June
Zeng Xiaoqing Yes
Transportation Engineering supervisor 1,2007
Tongji University's Joint Experimental June
Zeng Xiaoqing Director No
Center for Traffic Information Control 30,2003
80
2020 Annual Report
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The remuneration of members of the Eighth board of directors and supervisory committee was examined and
determined at the second provisional shareholders ’ general meeting in 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
In RMB 10,000
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from company
the Company related party
Zheng Renfa Board Chairman Male 51 In Office 75.19 No
Director, General
Wang Chunhua Male 56 In office 72.54 No
Manager
Director, Chief
Wang Ping Female 56 Dimission 16.87 No
Engineer
Director, Chief
Fang Zhi Male 57 Dimission 61.59 No
accountant
Chen Min Director Male 42 In office 0 No
Chen Min Director Male 57 In Office 0 Yes
Zeng Zhijun Director Male 50 In Office 0 Yes
Du Jun Director Male 55 Dimission 0 Yes
You Xiaocong Director Male 53 In Office 0 Yes
Zhuo Weiheng Director Male 49 In Office 0 Yes
Cao Yu Director Male 35 Dimission 4.8 No
Wu Hao Director Female 48 In Office 0 Yes
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2020 Annual Report
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from company
the Company related party
Huang Hai Director Male 45 In Office 1.8 No
Gu Naikang Independent director Male 55 In Office 7.2 No
Bao Fangzhou Independent director Male 42 In Office 7.2 No
Zhang Hua Independent director Male 55 In Office 7.2 No
Liu Zhonghua Independent director Male 55 In Office 7.2 No
Zeng Xiaoqing Independent director Female 51 In Office 7.2 No
Chairman of the
Jiang
Supervisory Male 54 In Office 0 Yes
Changwen
Committee
Li Haihong Supervisor Female 49 In Office 0 Yes
Ke Lin Supervisor Female 51 In Office 62.63 No
Feng Yuan Supervisor Male 56 In Office 47.9 No
Zhou Yisan Supervisor Male 40 In Office 48.04 No
Deputy General
Zuo Jiang Female 48 In Office 61.59 No
Manager
Deputy General
Cheng Rui Male 46 In Office 64.59 No
Manager
Deputy General
Luo Baoguo Male 47 In Office 0 No
Manager
He Bing Chief legal adviser Female 53 In Office 49.3 No
Yang Hanming Secretary to the Board Male 51 In Office 51.31 No
Total -- -- -- -- 654.15 --
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) 109
Number of in-service staff of the main subsidiaries(person) 2,847
The total number of the in-service staff(person) 2,956
The total number of staff receiving remuneration in the current
2,949
period(person)
82
2020 Annual Report
Retired staff with charges paid by the parent company and
105
main subsidiaries (person)
Professional
Category Number of persons（person）
Operating personnel 2,348
Sale personnel 0
Technology Personnel 391
Financial personnel 61
Management personnel 156
Total 2,956
Education
Category Number of persons（person）
Holders of master’s degree or above 54
Graduates of regular university 558
Graduates of junior colleges 1,554
Other 790
Total 2,956
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
None
4.Outsourcing situation
□ Applicable √ No Applicable
83
2020 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 Jingzhu
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 Petty Loan Co., Ltd. , Guangdong Guangle Expressway Co., Ltd.,Guoyuan
Securities Co., Ltd.and Hunan Lianzhi Technology Co., Ltd.
The Company has outstanding main operation, independent and complete business and the ability of independent
operation. All business decisions of the Company were made independently, being completely separated from the
shareholder with actual control. Related transactions were carried out in light of the principle of fair transaction,
which did not harm the interests of the Company and other shareholders of the Company. The content of related
transactions was fully, timely and accurately disclosed, which did not have negative influence on the Company.
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2020 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 of
Sessions Meeting Date Resolution Disclosure date Disclosure index
proposals
Annual Announcement of Resolutions
2019 Shareholders’ Shareholders’ June of the shareholders' general
67.90% June 30,2020
general meeting General 29,2020 meeting in
Meeting 2019.www.cninfo.com.cn
The First provisional Provisional Announcement of Resolutions
shareholders’ shareholders’ November of the First provisional
61.46% November 3,2020
General meeting of General 2,2020 shareholders' general meeting
2020 meeting of 2020. www.cninfo.com.cn
The Second Provisional Announcement of Resolutions
November
provisional shareholders’ 63.68% November 26,2020 of the Second provisional
25,2020
shareholders’ General shareholders' general meeting
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2020 Annual Report
General meeting of meeting of 2020. www.cninfo.com.cn
2020
The Third provisional Provisional Announcement of Resolutions
shareholders’ shareholders’ December of the Third provisional
70.97% December 16,2020
General meeting of General 15,2020 shareholders' general meeting
2020 meeting of 2020. www.cninfo.com.cn
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
Failure to
Board
Number of Number of personally Attendance
meetings
Number of meetings attendances attend board of the
Independent necessary to Number of
spot attended by by meetings shareholders'
Directors be attended absence
attendances Communicat representativ successively general
in the
ion e twice meeting
reporting
(Yes/No)
period
Gao Fangzhou 11 0 11 0 0 No 4
Gu Naikang 11 0 11 0 0 No 4
Liu Zhonghua 11 0 11 0 0 No 4
Zhang Hua 11 0 11 0 0 No 4
Zeng Xiaoqing 11 0 11 0 0 No 4
Notes to failure to personally attend Board Meetings Successively Twice
None
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
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2020 Annual Report
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
meetings held by the company in 2020, 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（Resigned as Director and Board of Auditors on 21 December） 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 2019 the audit committee carried out a series of work for the
annual audit of the Company for 2019, 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 2019 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, supervisors 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 2019.
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.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. The results of the Company's annual risk assessment were reviewed and approved.
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2020 Annual Report
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
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
Disclosure date of appraisal report on
March 26 ,2021
internal control
Disclosure index of appraisal report
www.cninfo.com.cn
on internal control
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 87.40%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of 57.36%
evaluation accounting for the
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2020 Annual Report
operating income on the company's
consolidated financial statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
The qualitative criteria for the evaluation of internal control deficiencies in The qualitative criteria for the evaluation of internal control deficiencies
financial reports confirmed by the Company is as follows: The following in non-financial reports confirmed by the Company is as follows:
situations (including but not limited to) shall be deemed as “material Material deficiencies: serious violations and being sentenced to heavy
deficiencies” in the internal control of the financial report. (1) There are fines or need taking criminal responsibility; utterly disregard the rules of
major frauds made by the directors, or supervisors, or senior management law, illegal behaviors in the operation and management are particularly
personnel in the company’s management activities; (2)There are material severe and the circumstance is very bad, which leads to the suspension or
misstatements in the current financial report but the internal control failed cessation to the company's daily operation and management activities,
to find the misstatements during its operation; (3) The supervisions made and leads to the audit report with a disclaimer of opinion or a negative
by the company's audit committee and the internal audit organization on opinion issued by the CPA; the negative news spread all over the
the internal control are invalid; (4) The control environment is invalid; country, which caused severe damage to the company’s reputation;
(5)The material deficiencies found and reported to the management but resulted in decease of a number of workers or citizens, or resulted in
are not corrected within a reasonable time; (6)There is an administrative damages that are unable to recover to workers or citizens; reached the
Qualitative standard punishment from the securities regulatory circumstance(grade II) of major environmental event. Significant
institution due to accounting errors. deficiencies: illegal and being punished; disregard the requirements of
The following situations (including but not limited to) shall be deemed as the company’s management system and the relevant rules of law, there
“significant deficiencies” in the internal control of the financial report are illegal acts of using the authority to seek illegal interests in the work,
and which significantly affect the efficiency and the result of daily operation
there are intense signs for the situations becoming “material and management activities and lead to the audit report with qualified
deficiencies”: (1) Frauds made by staff in key positions; (2)The opinion issued by the CPA; the negative news spread in a region, which
supervisory function on compliance is invalid, and the violations of caused the large-extent damage to the company’s reputation; resulted in
regulations may have a significant impact on the reliability of the financial decease of a worker or a citizen, or resulted in damages that need long
report; (3)The significant deficiencies reported to the management but are time to recover to workers or citizens;
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
The following situations (including but not limited to) shall be deemed as compliance with laws and regulations is weak, lacking of business and
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2020 Annual Report
“general deficiencies” in the internal control of the financial report. (1) management knowledge, and there are phenomena such as being slack in
Frauds made by staff in non key positions, or business operators execute performing management duties, being passive and poorly execute the
the implementation procedures not strictly conforming to the company’s institution in the work, which shall affect the efficiency and the result of
policy but resulted in no significant impact on the reliability of the daily operation and management activities and lead to small effects to
financial report. (2)The supervisory function on compliance is invalid, and the company’s management goal; the negative news spread within the
the violations of regulations may not have a significant impact on the company, which caused the little-extent damage to the company’s
reliability of the financial report; (3)The general deficiencies reported to reputation; shortly affected the health of the workers or citizens and the
the management but are not corrected within a reasonable period. workers or citizens can be recovered in a short time; reached the
circumstance(grade Ⅳ) of general environmental event.
The qualitative criteria for the evaluation of internal control deficiencies
The qualitative criteria for the evaluation of internal control deficiencies in
in financial reports confirmed by the Company is as follows: Material
financial reports confirmed by the Company is as follows: Material
deficiencies: potential misstatement≧1% of the total amount of the
deficiencies: potential misstatement≧1% of the total amount of the
owner’s equity or RMB 200 million; significant deficiencies: 0.5% of
owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the
the total amount of the owner’s equity or RMB 100 million≤potential
Standards of Quantization total amount of the owner’s equity or RMB 100 million≤potential
misstatement＜1% of the total amount of the owner’s equity or RMB
misstatement＜1% of the total amount of the owner’s equity or RMB 200
200 million; general deficiencies: potential misstatement＜0.5% of the
million; general deficiencies: potential misstatement＜0.5% of the total
total amount of the owner’s equity or RMB 100 million Standards of
amount of the owner’s equity or RMB 100 million Standards of
Quantization
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
0
financial reporting（a）
Number of important defects in non
0
financial reporting（a）
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2020 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, 2020.
Disclosure of internal audit report Disclosure
Disclosure date of audit report
March 26 ,2021
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 of significant No
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
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2020 Annual Report
XII. Financial Report
I. Audit report
Type of audit opinion Standard Unqualified audit opinion
Date of signature of audit report March 25，2021
Yong Tuo Certified Public Accountants (special general
Name of audit firm
partnership)
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, 2020, 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, 2020 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
1. Item description
As mentioned in "This Section V.17, Fixed Assets" and "This Section VII.12, Fixed Assets", the book value
of the Guangdong Expressway at the end of 2020 was RMB10,626,919,377.93, accounting for 53.81% of the
consolidated total assets; the depreciation provided for the toll road in 2020 was RMB1,030,814,662.76,
accounting for 62.01% of the consolidated operating costs. Guangdong Expressway toll roads are depreciated
according to the traffic flow method, which calculates depreciation for the current period based on the ratio of the
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2020 Annual Report
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. In 2019, Guangdong Expressway hired professional organizations to
re-measure the total traffic flow during the operation period of Fokai Expressway and Guangzhu Section of
Jingzhu Expressway, and from January 1, 2020, and accrue the depreciation of road property according to the
re-measured total traffic flowmeter, which is an important change in accounting estimation.
Therefore, we determined the accuracy of depreciation of highways and bridges and the pricing of highways
and bridges of Guangdong Expressway Company as 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) Investment equity
Item description As described in "This Section VII-9, Long-term equity investments", “This Section VII-10,
Investments in other equity instruments" and "This Section VII-42, Investment income", the total year-end equity
investments of Guangdong Expressway in 2020 amounted to RMB4,119,396,693.89, of which
RMB2,382,381,165.60 in long-term equity investments and RMB1,737,015,528.29 in other equity instruments
accounted for 20.86% of the total consolidated assets, of which RMB165,302,997.18 in total investment income
from equity investments in 2020 accounted for 12.12% of the consolidated net profit in 2020. Equity investments
have a significant impact on the 2020 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;
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2020 Annual Report
(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;
(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;
(III) Merger and reorganization
1. Item description
Guangdong Expressway paid cash consideration to Guangdong Provincial Expressway Co., Ltd. controlled
by the same group, to acquired 21% equity of Guangdong Guanghui Expressway Co., Ltd. so as to achieve control
over it. This reorganization resulted in a change in the scope of consolidation, and adjustment in the related items
in the comparative statements according to the Accounting Standards for Business Enterprises, which had a
significant impact on the financial statements of Guangdong Expressway.
Therefore, we identified the merger and reorganization of Guangdong Expressway as a key audit item.
2. Audit response
In response to the above key audit matter, we have implemented the following main audit procedures:
(1) Obtain resolutions of shareholders' meeting, board of directors and announcements related to
restructuring transactions, and relevant important internal approval documents of the Company;
(2) Check the equity purchase agreement, the approval documents of relevant departments, the transfer of
equity, the amendments to the articles of association of the investee, etc., and review the management's judgment
on whether the equity is under control;
(3) Obtain and review the financial statements and accounting treatment of the acquired company on the
merger day;
(4) Evaluate whether the disclosure of the reorganization matters in the financial statements meets the
disclosure requirements of major asset reorganization matters.
(IV) Compensation for loss during epidemic prevention and control
1. Item description
As stated in "This Section V-20, Intangible Assets" and "This Section VII-14, Intangible Assets", according
to the relevant government documents, Guangdong Expressway included the relevant operating expenses incurred
during the epidemic prevention and control period from February 17, 2020 to May 5, 2020 into the book value of
intangible assets-toll road franchise, and began to amortize the newly added intangible assets-toll road franchise in
May 2020 according to the traffic flow method during the remaining operation period. The total impact on the
consolidated net profit in 2020 is RMB 221,195,846.78, accounting for 16.21% of the consolidated net profit in
2020. This accounting treatment has a great impact on the financial statements in 2020.
Therefore, we identified the loss compensation treatment during the epidemic prevention and control period
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2020 Annual Report
of Guangdong Expressway as a key audit item.
2. Audit response
(1) Obtain and check government documents related to compensation for epidemic prevention and control
losses, and understand the policy of compensation for epidemic prevention and control losses;
(2) Understand the scope of the collection of epidemic losses, and check the entry basis of contracts and
invoices related to losses during epidemic prevention and control to assess their authenticity and accuracy;
(3) Audit the accounting treatment of compensation for loss due to epidemic prevention and control, and
check whether the accounting treatment meets the requirements of accounting standards for business enterprises.
IV.Other Matter
The consolidated and company balance sheet on December 31, 2019, 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 April 3, 2020.
V. Other information
The management of Guangdong Expressway Company is responsible for other information. Other
information includes the information covered in the 2020 annual report of Guangdong Expressway Company, but
does not include the financial statement and our audit report.
Our audit opinion on the financial statements does not cover other information, and we do not issue any form
of verification conclusion on other information.
In combination with our audit of the financial statements, our responsibility is to read other information, and
consider in such process whether other information is materially inconsistent with the financial statements or the
information we learned during the audit, or whether there appears to be a material misstatement.
Based on the work that we have already performed, if we determine that other information contains material
misstatements, we should report such fact. In this regard, we have nothing to report.
VI. 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.
VII. 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.
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2020 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.
Yong Tuo Certified Public Accountants Co., Ltd.(Special General Partnership)
Certified Public Accountant of China: Li Junjie
(project partner)
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2020 Annual Report
Certified Public Accountant of China: Shi Shaoyu
Beijing China
March 25, 2021
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2020 Annual Report
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
December 31,2020
In RMB
Items December 31,2020 December 31,2019
Current asset：
Monetary fund 2,847,398,003.89 3,054,198,364.15
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 168,907,517.56 177,099,124.09
Financing of receivables
Prepayments 3,607,538.01 11,829,452.88
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 60,925,367.64 30,103,478.60
Including：Interest receivable
Dividend receivable 2,705,472.90 7,205,472.90
Repurchasing of financial assets
Inventories 53,761.06 111,683.22
Contract assets 5,452,813.90
Assets held for sales
Non-current asset due within 1 year 51,745.32 51,745.32
Other current asset 27,051.69 196,576,603.21
Total of current assets 3,086,423,799.07 3,469,970,451.47
98
2020 Annual Report
Items December 31,2020 December 31,2019
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other investment on bonds
Long-term receivable
Long term share equity investment 2,382,381,165.60 2,207,266,324.84
Other equity instruments
1,737,015,528.29 1,835,822,604.77
investment
Other non-current financial assets
Property investment 3,110,381.89 3,331,500.37
Fixed assets 11,540,075,929.69 12,460,188,469.66
Construction in progress 340,611,095.47 241,274,698.97
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 302,381,356.52 8,762,039.52
Development expenses
Goodwill
Long-germ expenses to be
3,462,122.00 3,919,764.44
amortized
Deferred income tax asset 330,755,418.39 385,494,106.13
Other non-current asset 22,361,861.19 50,909,325.73
Total of non-current assets 16,662,154,859.04 17,196,968,834.43
Total of assets 19,748,578,658.11 20,666,939,285.90
Current liabilities
Short-term loans 200,192,500.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 369,773,342.71 368,307,598.41
Advance receipts 11,309,007.41 15,605,094.69
99
2020 Annual Report
Items December 31,2020 December 31,2019
Contract liabilities 309,734.51
Selling of repurchased financial
assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 16,726,198.13 15,173,142.46
Tax payable 217,748,392.78 175,201,627.19
Other account payable 1,512,619,359.78 474,689,554.26
Including：Interest payable
Dividend payable 22,262,804.39 20,020,119.31
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1
266,328,017.47 796,246,790.61
year
Other current liability 648,581.64 1,246,636.74
Total of current liability 2,595,655,134.43 1,846,470,444.36
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 4,977,438,800.00 4,926,015,000.00
Bond payable 1,426,488,336.65 678,124,972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 40,406,172.37 39,369,379.91
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 89,170,569.64 51,000,000.00
Deferred income tax liability 387,103,060.74 428,922,140.08
Other non-current liabilities
Total non-current liabilities 6,920,606,939.40 6,123,431,492.88
Total of liability 9,516,262,073.83 7,969,901,937.24
100
2020 Annual Report
Items December 31,2020 December 31,2019
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 645,969,210.48 3,094,017,129.31
Less：Shares in stock
Other comprehensive income 302,895,877.65 382,193,344.90
Special reserve
Surplus reserves 1,167,785,965.63 1,074,553,052.81
Common risk provision
Retained profit 3,725,679,319.35 3,915,790,810.76
Total of owner’s equity belong to the
7,933,136,499.11 10,557,360,463.78
parent company
Minority shareholders’ equity 2,299,180,085.17 2,139,676,884.88
Total of owners’ equity 10,232,316,584.28 12,697,037,348.66
Total of liabilities and owners’
19,748,578,658.11 20,666,939,285.90
equity
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
101
2020 Annual Report
2.Parent Company Balance Sheet
In RMB
Items December 31,2020 December 31,2019
Current asset：
Monetary fund 1,781,764,519.09 2,791,384,501.78
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 27,004,827.41 21,864,051.27
Financing of receivables
Prepayments 2,181,215.03 1,737,598.88
Other account receivable 54,148,114.53 13,435,651.19
Including：Interest receivable
Dividend receivable 2,705,472.90 7,205,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 256,279,340.60 151,637,139.08
Other current asset 27,051.69
Total of current assets 2,121,405,068.35 2,980,058,942.20
Non-current assets：
Debt investment 287,903,684.98 537,903,684.98
Other investment on bonds
Long-term receivable
Long term share equity investment 5,529,362,536.53 4,789,404,907.17
Other equity instruments investment 1,737,015,528.29 1,835,822,604.77
Other non-current financial assets
Property investment 2,858,243.64 3,079,362.12
Fixed assets 6,245,462,940.39 6,818,701,482.08
Construction in progress 43,086,545.58 46,952,925.08
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 150,582,241.22 2,533,878.12
102
2020 Annual Report
Items December 31,2020 December 31,2019
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 322,365,911.10 385,296,935.33
Other non-current asset 7,089,990.48 36,901,029.57
Total of non-current assets 14,325,727,622.21 14,456,596,809.22
Total of assets 16,447,132,690.56 17,436,655,751.42
Current liabilities
Short-term loans 200,192,500.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 105,919,984.52 129,930,285.56
Advance receipts
Contract Liabilities
Employees’ wage payable 6,472,802.81 6,340,740.61
Tax payable 9,165,801.86 8,704,510.83
Other account payable 1,431,814,861.38 582,131,356.01
Including：Interest payable
Dividend payable 22,262,804.39 20,020,119.31
Liabilities held for sales
Non-current liability due within 1
190,331,701.48 744,589,133.72
year
Other current liability 539,618,124.00 821,133,339.57
Total of current liability 2,483,515,776.05 2,292,829,366.30
Non-current liabilities：
Long-term loan 4,389,653,800.00 4,243,730,000.00
Bond payable 1,426,488,336.65 678,124,972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 40,406,172.37 39,369,379.91
Long-term remuneration payable to
staff
103
2020 Annual Report
Items December 31,2020 December 31,2019
Expected liabilities
Deferred income 13,403,327.12
Deferred income tax liability 105,636,866.50 129,978,356.56
Other non-current liabilities
Total non-current liabilities 5,975,588,502.64 5,091,202,709.36
Total of liability 8,459,104,278.69 7,384,032,075.66
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 938,969,546.79 2,974,458,696.93
Less：Shares in stock
Other comprehensive income 302,895,877.65 382,193,344.90
Special reserve
Surplus reserves 987,813,698.07 894,580,785.25
Retained profit 3,667,543,163.36 3,710,584,722.68
Total of owners’ equity 7,988,028,411.87 10,052,623,675.76
Total of liabilities and owners’
16,447,132,690.56 17,436,655,751.42
equity
3.Consolidated Income statement
In RMB
Items Year 2020 Year 2019
I. Income from the key business 3,790,348,876.26 4,999,016,766.74
Incl：Business income 3,790,348,876.26 4,999,016,766.74
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,106,157,423.78 2,392,975,172.99
Incl：Business cost 1,662,223,696.13 1,924,477,933.90
Interest expense
Fee and commission paid
104
2020 Annual Report
Items Year 2020 Year 2019
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 23,401,929.49 25,405,367.63
Sales expense
Administrative expense 203,945,119.58 218,914,654.80
R & D costs 404,303.70
Financial expenses 216,182,374.88 224,177,216.66
Including：Interest expense 264,407,174.38 257,098,768.09
Interest income 50,618,519.70 39,377,414.30
Add: Other income 12,819,409.84 1,740,540.05
Investment gain（“-”for loss） 171,366,835.55 214,765,043.56
Incl: investment gains from affiliates 114,517,784.14 168,708,231.04
Financial assets measured at amortized cost cease to be
recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss -2,457,808.51 -188,983.92
Impairment loss of assets -1,231,918.94 -7,238,195.84
Assets disposal income 19,031,900.46
III. Operational profit（“-”for loss） 1,864,687,970.42 2,834,151,898.06
Add ：Non-operational income 11,749,841.36 8,832,100.71
Less: Non-operating expense 20,642,932.77 17,755,553.62
IV. Total profit(“-”for loss) 1,855,794,879.01 2,825,228,445.15
Less：Income tax expenses 491,409,872.94 673,785,022.80
V. Net profit 1,364,385,006.07 2,151,443,422.35
(I) Classification by business continuity
1.Net continuing operating profit 1,364,385,006.07 2,151,443,422.35
2.Termination of operating net profit
(II) Classification by ownership
105
2020 Annual Report
Items Year 2020 Year 2019
1.Net profit attributable to the owners of parent company 867,842,774.78 1,469,187,067.83
2.Minority shareholders’ equity 496,542,231.29 682,256,354.52
VI. Net after-tax of other comprehensive income -79,297,467.25 126,887,291.61
Net of profit of other comprehensive income attributable to own -79,297,467.25 126,887,291.61
ers of the parent company.
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -74,105,307.36 125,273,257.68
period
1.Re-measurement of defined benefit plans of changes in net de
bt or net assets
2.Other comprehensive income under the equity method investe
e can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-74,105,307.36 125,273,257.68
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into profit -5,192,159.89 1,614,033.93
or loss.
1.Other comprehensive income under the equity method investe -5,192,159.89 1,614,033.93
e can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
Net of profit of other comprehensive income attributable to Min
ority shareholders’ equity
VII. Total comprehensive income 1,285,087,538.82 2,278,330,713.96
Total comprehensive income attributable to the owner of the
788,545,307.53 1,596,074,359.44
parent company
106
2020 Annual Report
Items Year 2020 Year 2019
Total comprehensive income attributable minority shareholders 496,542,231.29 682,256,354.52
VIII. Earnings per share
（I）Basic earnings per share 0.4151 0.7027
(II)Diluted earnings per share 0.4151 0.7027
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
107
2020 Annual Report
4. Income statement of the Parent Company
In RMB
Items Year 2020 Year 2019
I. Income from the key business 975,440,382.58 1,290,289,841.76
Incl：Business cost 655,670,622.07 783,821,932.19
Business tax and surcharge 8,077,542.21 7,618,743.78
Sales expense
Administrative expense 111,210,597.86 118,364,771.13
R & D expense
Financial expenses 208,439,841.94 198,989,995.09
Including：Interest expenses 250,230,473.17 224,948,208.12
Interest income 40,734,373.10 28,519,844.52
Add：Other income 3,249,141.80 483,367.72
Investment gain（“-”for loss） 1,009,976,324.53 1,236,812,045.82
Including: investment gains from affiliates 343,597,391.91 469,503,736.12
Financial assets measured at amortized cost cease to be
recognized as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss -93,582.00
Impairment loss of assets -7,238,195.84
Assets disposal income 276,051.47
II. Operational profit（“-”for loss） 1,005,173,662.83 1,411,827,668.74
Add ：Non-operational income 3,221,547.75 1,856,765.81
Less：Non -operational expenses 12,774,779.05 1,427,763.63
III. Total profit(“-”for loss) 995,620,431.53 1,412,256,670.92
Less：Income tax expenses 63,291,303.29 62,031,595.44
IV. Net profit 932,329,128.24 1,350,225,075.48
1.Net continuing operating profit 932,329,128.24 1,350,225,075.48
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -79,297,467.25 126,887,291.61
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -74,105,307.36 125,273,257.68
period
108
2020 Annual Report
Items Year 2020 Year 2019
1.Re-measurement of defined benefit plans of changes in
net debt or net assets
2.Other comprehensive income under the equity method i
nvestee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-74,105,307.36 125,273,257.68
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified i -5,192,159.89 1,614,033.93
nto profit or loss
1.Other comprehensive income under the equity method i -5,192,159.89 1,614,033.93
nvestee can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the
reclassification of financial assets
4.Allowance for credit impairments in investments in
other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
VI. Total comprehensive income 853,031,660.99 1,477,112,367.09
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Year 2020 Year 2019
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 3,866,637,428.50 5,063,829,880.79
Net increase of customer deposits and capital kept for brother
company
109
2020 Annual Report
Items Year 2020 Year 2019
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned
Other cash received from business operation 184,856,181.58 103,560,783.66
Sub-total of cash inflow 4,051,493,610.08 5,167,390,664.45
Cash paid for purchasing of merchandise and services 391,854,339.69 465,134,590.94
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 384,566,222.40 468,448,589.84
Taxes paid 553,265,616.61 930,941,776.42
Other cash paid for business activities 85,620,190.33 80,184,520.20
Sub-total of cash outflow from business activities 1,415,306,369.03 1,944,709,477.40
Net cash generated from /used in operating activities 2,636,187,241.05 3,222,681,187.05
II. Cash flow generated by investing
Cash received from investment retrieving 210,000,000.00 192,500,000.00
Cash received as investment gains 162,479,782.83 156,977,952.83
Net cash retrieved from disposal of fixed assets, intangible assets,
68,875.00 20,064,135.00
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 372,548,657.83 369,542,087.83
Cash paid for construction of fixed assets, intangible assets and 660,012,394.04 939,320,280.23
110
2020 Annual Report
Items Year 2020 Year 2019
other long-term assets
Cash paid as investment 224,910,442.24 225,000,000.00
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 investment activities 884,922,836.28 1,164,320,280.23
Net cash flow generated by investment -512,374,178.45 -794,778,192.40
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 2,169,880,000.00 3,576,700,000.00
Other financing –related cash received 89,083,500.00 85,985,000.00
Sub-total of cash inflow from financing activities 2,258,963,500.00 3,662,685,000.00
Cash to repay debts 1,730,365,000.00 3,474,420,769.28
Cash paid as dividend, profit, or interests 1,588,108,152.77 2,305,707,953.35
Including: Dividend and profit paid by subsidiaries to minor
380,689,946.00 665,429,842.00
shareholders
Other cash paid for financing activities 1,272,832,461.00 791,384.00
Sub-total of cash outflow due to financing activities 4,591,305,613.77 5,780,920,106.63
Net cash flow generated by financing -2,332,342,113.77 -2,118,235,106.63
IV. Influence of exchange rate alternation on cash and cash
1,728,690.91 -1,534,520.73
equivalents
V.Net increase of cash and cash equivalents -206,800,360.26 308,133,367.29
Add: balance of cash and cash equivalents at the beginning of term 3,052,977,164.15 2,744,843,796.86
VI ..Balance of cash and cash equivalents at the end of term 2,846,176,803.89 3,052,977,164.15
6. Cash Flow Statement of the Parent Company
In RMB
Items Year 2020 Year 2019
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 993,839,736.20 1,319,322,493.90
Tax returned
Other cash received from business operation 93,504,920.38 77,128,413.98
Sub-total of cash inflow 1,087,344,656.58 1,396,450,907.88
111
2020 Annual Report
Items Year 2020 Year 2019
Cash paid for purchasing of merchandise and services 103,008,692.77 127,357,495.28
Cash paid to staffs or paid for staffs 127,409,377.73 147,473,541.71
Taxes paid 38,537,660.12 49,562,069.12
Other cash paid for business activities 345,450,155.26 235,160,213.53
Sub-total of cash outflow from business activities 614,405,885.88 559,553,319.64
Net cash generated from /used in operating activities 472,938,770.70 836,897,588.24
II. Cash flow generated by investing
Cash received from investment retrieving 150,000,000.00 105,000,000.00
Cash received as investment gains 891,162,907.16 1,152,310,903.36
Net cash retrieved from disposal of fixed assets, intangible assets, and
7,700.00 4,900.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational
4,694,628.72
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 1,045,865,235.88 1,257,315,803.36
Cash paid for construction of fixed assets, intangible assets and other
270,834,718.98 704,297,796.17
long-term assets
Cash paid as investment 1,486,620,726.24
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 1,757,455,445.22 704,297,796.17
Net cash flow generated by investment -711,590,209.34 553,018,007.19
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 1,809,290,000.00 3,290,000,000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 1,809,290,000.00 3,290,000,000.00
Cash to repay debts 1,479,775,000.00 2,575,665,000.00
Cash paid as dividend, profit, or interests 1,101,090,057.96 1,407,137,756.96
Other cash paid for financing activities 1,122,177.00 791,384.00
Sub-total of cash outflow due to financing activities 2,581,987,234.96 3,983,594,140.96
Net cash flow generated by financing -772,697,234.96 -693,594,140.96
IV. Influence of exchange rate alternation on cash and cash
1,728,690.91 -1,534,520.73
equivalents
112
2020 Annual Report
Items Year 2020 Year 2019
V.Net increase of cash and cash equivalents -1,009,619,982.69 694,786,933.74
Add: balance of cash and cash equivalents at the beginning of term 2,790,163,301.78 2,095,376,368.04
VI ..Balance of cash and cash equivalents at the end of term 1,780,543,319.09 2,790,163,301.78
113
2020 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Year 2020
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
: Minor
Items Total of
Other Speciali Common
Share Capital Shar Surplus Retained shareholders’
Prefer Sust owners’ equity
Comprehens zed risk Other Subtotal
Capital reserves es in reserves profit equity
red aina Other
ive Income reserve provision
stock ble stoc
debt k
2,090,806,126. 3,094,01 1,074,553,0 3,915,790,81 10,557,360,
I.Balance at the end of last year 382,193,344.90 2,139,676,884.88 12,697,037,348.66
00 7,129.31 52.81 0.76 463.78
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. 3,094,01 1,074,553,0 3,915,790,81 10,557,360,
382,193,344.90 2,139,676,884.88 12,697,037,348.66
current year 00 7,129.31 52.81 0.76 463.78
-2,448,04 93,232,912. -190,111,491. -2,624,223,
III.Changed in the current year -79,297,467.25 159,503,200.29 -2,464,720,764.38
7,918.83 82 41 964.67
（1）Total comprehensive 867,842,774. 788,545,30
-79,297,467.25 496,542,231.29 1,285,087,538.82
income 78 7.53
（II）Investment or decreasing 45,432,5 45,432,585. 43,650,915.00 89,083,500.00
114
2020 Annual Report
Year 2020
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
: Minor
Items Total of
Other Speciali Common
Share Capital Shar Surplus Retained shareholders’
Prefer Sust owners’ equity
Comprehens zed risk Other Subtotal
Capital reserves es in reserves profit equity
red aina Other
ive Income reserve provision
stock ble stoc
debt k
of capital by owners 85.00 00
1．Ordinary Shares invested by
shareholders
2．Holders of other equity instr
uments invested capital
3．Amount of shares paid and
accounted as owners’ equity
45,432,5 45,432,585.
4．Other 43,650,915.00 89,083,500.00
85.00 00
93,232,912. -1,057,954,26 -964,721,35
（III）Profit allotment -380,689,946.00 -1,345,411,299.37
82 6.19 3.37
93,232,912. -93,232,912.8
1.Providing of surplus reserves
82 2
2.Providing of common risk
provisions
3．Allotment to the owners (or -882,320,185. -882,320,18
-380,689,946.00 -1,263,010,131.17
shareholders) 17 5.17
4．Other -82,401,168.2 -82,401,168 -82,401,168.20
115
2020 Annual Report
Year 2020
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
: Minor
Items Total of
Other Speciali Common
Share Capital Shar Surplus Retained shareholders’
Prefer Sust owners’ equity
Comprehens zed risk Other Subtotal
Capital reserves es in reserves profit equity
red aina Other
ive Income reserve provision
stock ble stoc
debt k
0 .20
(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
116
2020 Annual Report
Year 2020
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
: Minor
Items Total of
Other Speciali Common
Share Capital Shar Surplus Retained shareholders’
Prefer Sust owners’ equity
Comprehens zed risk Other Subtotal
Capital reserves es in reserves profit equity
red aina Other
ive Income reserve provision
stock ble stoc
debt k
2．Used this term
-2,493,48 -2,493,480,
（VI）Other -2,493,480,503.83
0,503.83 503.83
IV. Balance at the end of this 2,090,806,126. 645,969, 1,167,785,9 3,725,679,31 7,933,136,4
302,895,877.65 2,299,180,085.17 10,232,316,584.28
term 00 210.48 65.63 9.35 99.11
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2020 Annual Report
Amount in last year
Year 2019
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor Total of
Items Less: Other Specia Commo
Capital
Share Pref Shares Comprehe lized Surplus n risk Retained shareholders’ owners’
reserve Other Subtotal
Capital erred Sustai Othe in nsive reserv reserves provisio profit equity equity
s
stoc nable r stock Income e n
k debt
2,090,806,126 2,536,77 245,109,114 775,402,561 3,938,609,136. 9,586,701,9
I.Balance at the end of last year 459,599,723.87 10,046,301,627.93
.00 4,965.31 .81 .35 59 04.06
Add: Change of accounting 10,196,938.
-9,749,843.30 447,095.18 447,095.18
policy 48
Correcting of previous errors
Merger of entities under 513,389, 164,127,983 694,764,856
17,247,058.59 1,621,117,998.50 2,315,882,855.00
common control 814.00 .91 .50
Other
II.Balance at the beginning of 2,090,806,126 3,050,16 255,306,053 939,530,545 3,946,106,351. 10,281,913,
2,080,717,722.37 12,362,631,578.11
current year .00 4,779.31 .29 .26 88 855.74
43,852,3 126,887,291 135,022,507 275,446,608
III.Changed in the current year -30,315,541.12 58,959,162.51 334,405,770.55
50.00 .61 .55 .04
（1）Total comprehensive 126,887,291 1,469,187,067. 1,596,074,3
682,256,354.52 2,278,330,713.96
income .61 83 59.44
（II）Investment or decreasing 43,852,3 43,852,350.
42,132,650.00 85,985,000.00
of capital by owners 50.00 00
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2020 Annual Report
1．Ordinary Shares invested by s
hareholders
2．Holders of other equity instru
ments invested capital
3．Amount of shares paid and
accounted as owners’ equity
43,852,3 43,852,350.
4．Other 42,132,650.00 85,985,000.00
50.00 00
135,022,507 -1,499,502,608 -1,364,480,1
（III）Profit allotment -665,429,842.01 -2,029,909,943.41
.55 .95 01.40
135,022,507 -135,022,507.5
1.Providing of surplus reserves
.55 5
2.Providing of common risk
provisions
3．Allotment to the owners (or -1,175,033,042 -1,175,033,0
-665,429,842.01 -1,840,462,884.82
shareholders) .81 42.81
-189,447,058.5 -189,447,05
4．Other -189,447,058.59
9 8.59
(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.
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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
IV. Balance at the end of this 2,090,806,126 3,094,01 382,193,344 1,074,553,0 3,915,790,810. 10,557,360,
2,139,676,884.88 12,697,037,348.66
term .00 7,129.31 .90 52.81 76 463.78
In RMB
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2020 Annual Report
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Year 2020
Other Equity instrument
Less: Other
Items Preferr Capital Specialize Total of owners’
Share capital Sustai Shares in Comprehen Surplus reserves Retained profit Other
ed Other reserves d reserve equity
nable stock sive Income
stock
debt
2,090,806,126 2,974,458,6 382,193,344 3,710,584,722.
I.Balance at the end of last year 894,580,785.25 10,052,623,675.76
.00 96.93 .90 68
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 2,090,806,126 2,974,458,6 382,193,344 3,710,584,722.
894,580,785.25 10,052,623,675.76
current year .00 96.93 .90 68
-2,035,489,1 -79,297,467
III.Changed in the current year 93,232,912.82 -43,041,559.32 -2,064,595,263.89
50.14 .25
-79,297,467 932,329,128.2
（I）Total comprehensive income 853,031,660.99
.25 4
(II) Investment or decreasing of 26,725,050.
-2,035,489,150.14
capital by owners 00
1．Ordinary Shares invested by s
hareholders
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2020 Annual Report
Year 2020
Other Equity instrument
Less: Other
Items Preferr Capital Specialize Total of owners’
Share capital Sustai Shares in Comprehen Surplus reserves Retained profit Other
ed Other reserves d reserve equity
nable stock sive Income
stock
debt
2．Holders of other equity instru
ments invested capital
3.Amount of shares paid and
accounted as owners’ equity
26,725,050.
4．Other -2,035,489,150.14
00
-975,553,097.9
（III）Profit allotment 93,232,912.82 -882,320,185.17
9
1.Providing of surplus reserves 93,232,912.82 -93,232,912.82
2．Allotment to the owners (or -882,320,185.1
-882,320,185.17
shareholders) 7
3．Other
(IV) Internal transferring of
182,410.43 182,410.43
owners’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
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2020 Annual Report
Year 2020
Other Equity instrument
Less: Other
Items Preferr Capital Specialize Total of owners’
Share capital Sustai Shares in Comprehen Surplus reserves Retained profit Other
ed Other reserves d reserve equity
nable stock sive Income
stock
debt
4.Change amount of defined
benefit plans that carry forward
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other 182,410.43 182,410.43
(V) Special reserves
1. Provided this year
2．Used this term
-2,062,214,2
（VI）Other
00.14
IV. Balance at the end of this 2,090,806,126 938,969,546 302,895,877 3,667,543,163.
987,813,698.07 7,988,028,411.87
term .00 .79 .65 36
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2020 Annual Report
Amount in last year
In RMB
Year 2019
Other Equity instrument
Less: Other Specializ
Items Prefe Susta Capital Total of owners’
Share Capital Shares in Comprehens ed Surplus reserves Retained profit Other
rred inabl Other reserves equity
stock ive Income reserve
stock e
debt
2,090,806,126.0 2,948,663,19 245,109,114 3,680,165,040.
I.Balance at the end of last year 759,558,277.70 9,724,301,756.30
0 6.93 .81 86
Add: Change of accounting 10,196,938.
-9,749,843.30 447,095.18
policy 48
Correcting of previous errors
Other
II.Balance at the beginning of 2,090,806,126.0 2,948,663,19 255,306,053 3,670,415,197.
759,558,277.70 9,724,748,851.48
current year 0 6.93 .29 56
25,795,500.0 126,887,291
III.Changed in the current year 135,022,507.55 40,169,525.12 327,874,824.28
0 .61
126,887,291 1,350,225,075.
（I）Total comprehensive income 1,477,112,367.09
.61 48
(II) Investment or decreasing of 25,795,500.0
25,795,500.00
capital by owners 0
1．Ordinary Shares invested by sh
areholders
2．Holders of other equity instru
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2020 Annual Report
Year 2019
Other Equity instrument
Less: Other Specializ
Items Prefe Susta Capital Total of owners’
Share Capital Shares in Comprehens ed Surplus reserves Retained profit Other
rred inabl Other reserves equity
stock ive Income reserve
stock e
debt
ments invested capital
3.Amount of shares paid and
accounted as owners’ equity
25,795,500.0
4．Other 25,795,500.00
0
-1,310,055,550
（III）Profit allotment 135,022,507.55 -1,175,033,042.81
.36
-135,022,507.5
1.Providing of surplus reserves 135,022,507.55
5
2．Allotment to the owners (or -1,175,033,042
-1,175,033,042.81
shareholders) .81
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
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2020 Annual Report
Year 2019
Other Equity instrument
Less: Other Specializ
Items Prefe Susta Capital Total of owners’
Share Capital Shares in Comprehens ed Surplus reserves Retained profit Other
rred inabl Other reserves equity
stock ive Income reserve
stock e
debt
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
IV. Balance at the end of this 2,090,806,126.0 2,974,458,69 382,193,344 3,710,584,722.
894,580,785.25 10,052,623,675.76
term 0 6.93 .90 68
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2020 Annual Report
III. Company Profile
1. Basic information of the IPO and share capital of the company
1.The Company was established in February 1993, which was originally named as Guangdong Fokai Expressway
Co., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co., Ltd. after
reorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of Share
Holding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge
Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong State-owned Asset
Management Dept., i.e.,RMB 418.2136 million, was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons
invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested
RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.
2 ． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legal
person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co., Ltd.
in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval
document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document, the
Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at the
price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July
1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of
China with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested joint
stock company limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following
manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on
3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.
487 document, the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of
“payable in full on application, pro-rate placing and subject to refund” with the par value of each share being
RMB 1 in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant
to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of
CSRC with ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249 million
shares at the price of RMB 11 per Right.73,822,250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co.,
Ltd. (Group Co.) for holding and management without compensation.
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2020 Annual Report
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722
shares held by directors, supervisors and senior executives are temporarily frozen) were listed on February 5,
2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized
capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000,
i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May
22, 2001.
11 ． On March 8, 2004,As approved by China Securities Regulatory Commission by document
Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at the
shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “The
approval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the share
equity relocation and transformation. On October 9 2006, according to the “Circular about implementing of share
equity relocation and relative trading”issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’
s A shares was restored from “G-Expressway” “Expressway A”.
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 Guangfa Securities
Co.,Ltd. The issuance of shares have been registered on July 7, 2016, the new shares will be listed on July 8,
2016.
2. Company's registered place and headquarters address
Company name：Guangdong Provincial Expressway Development Co., Ltd.
Registration placeNo.85, Baiyun Road, Yuexiu District, Guangzhou.
Headquarters Office ： 45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tihe Disrtict ,
Guangzhou
3. Business nature and main business activities
Industry and main products of the company: highway management and maintenance.
General business items: investment, construction, charging, maintenance and service management of
expressways, grade roads and bridges; Automobile rescue service, maintenance and cleaning; Parking lot charges;
Design, production, release and agency of all kinds of advertisements at home and abroad; Land development
along the highway; Warehousing business; Intelligent transportation technology research and development and
service; Equity investment, management and consultation. (Projects that must be approved according to law can
be operated only after being approved by relevant departments).
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and
Jingzhu Expressway Guangzhu
Section , investment in technological industries and provision of relevant consultation while investing in Shenzhen
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2020 Annual Report
Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co., Lt
d.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expre
ssway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangdong
Guangle Expressway Co.,Ltd.， Guoyuan Securities Co., Ltd.and Hunan Lianzhi Technology Co., Ltd.
4. Scope and changes of consolidated financial statements in the current period
(1) Scope of current consolidated financial statements
The consolidated scope of the current financial statements invovles Guangdong Expressway Technology
Investment Co., Ltd., Guangzhou Guangzhu Transportation Investment Management Co., Ltd., Yuegao Capital
Investment (Hengqin) Co., Ltd., its holding subsidiaries Guangfo Expressway Co., Ltd. ， Jingzhu Expressway
Guangzhu Section Co., Ltd. and Guangdong Guanghui Expressway Co., Ltd..
The subsidiaries newly included in the consolidation scope in this period include: subsidiaries acquired by
business combination under the same control: Guangdong Guanghui Expressway Co., Ltd..
In this period, due to absorption and combination, the subsidiaries that are no longer combined include:
Guangzhou Guangzhu Transportation Investment Management Co., Ltd.
5. Approval and submission date of financial report
The financial statements have been authorized for issuance by the 16th meeting of the Ninth Board of Directors of
the Company on March 25 ,2021.
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
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2020 Annual Report
estimates for revenue recognition and other transactions and events. For details, see "25, Revenue" in V of this
section. Please refer to "32, 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 December 31, 2020 and year 2020,. 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).
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim period
refers to the reporting period shorter than a complete annual period. The accounting period of the Company is the
calendar year from January 1 to December 31.
3.Operating cycle
The normal operating cycle refers to the period from the time when the Group purchases assets for processing to
the time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses it
as a criterion for liquidity classification of assets and liabilities.
4.Standard currency for bookkeeping
The Company adopts CNY to prepare its functional statements.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control
1.Business Combinations under the Same Control
If business participating in the combination are ultimately controlled by the same party or parties before and
after the combination, and the control is not temporary, it is an business combination under the same control.
Usually, business combination under the same control refers to the combination between business within the same
business, except which it is generally not regarded as business combination under the same control.
The assets and liabilities obtained by the Company as the combining party in the business combination shall
be measured according to the book value of the combined party in the consolidated financial statements of the
ultimate controlling party on the combination date. For the long-term equity investment formed by holding
combination under the same control, the company takes the share of the book owner's equity of the combined
party on the combination date as the initial investment cost for forming the long-term equity investment. See the
long-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorption
and combination under the same control shall be recorded by the Company according to the original book value of
the related assets and liabilities in the combined party. The company adjusts the capital reserve according to the
difference between the book value of the net assets obtained and the book value of the combination consideration
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2020 Annual Report
paid (or the total par value of the issued shares); If the capital reserve is insufficient to offset, the retained earnings
shall be adjusted.
All directly related expenses incurred by the Company as a combining party for business combination,
including audit fees, evaluation fees, legal service fees, etc., are included in the current profits and losses when
incurred.
Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial
measurement amount of bonds and other debts issued. Fees, commissions and other expenses incurred in issuing
equity securities in business combination shall be offset against the premium income of equity securities, and if
the premium income is insufficient to offset, the retained earnings shall be offset.
If the holding under the same control is combined to form a parent-subsidiary relationship, the parent
company shall prepare consolidated financial statements on the consolidation date, including consolidated balance
sheet, consolidated income statement and consolidated cash flow statement.
For the consolidated balance sheet, the book value of the combined party in the consolidated financial
statements of the ultimate controlling party shall be incorporated into the consolidated financial statements, and
the transactions between the combining party and the combined party on the consolidation date and the previous
period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated
Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash
flow realized by the combining party and the combined party from the beginning of the current consolidation
period to the consolidation date, and involve the cash flow generated by the transactions and internal transactions
between the two parties in the current period, which shall be offset according to the relevant principles of the
consolidated financial statements.
2. If the parties involved in the combination are not ultimately controlled by the same party or parties before
and after the combination, it is a business combination not under the same control.
Business Combinations not under the Same Control
Determine the cost of business combination: the cost of business combination includes the fair value of cash
or non-cash assets paid by the purchaser for business combination, debts issued or assumed, and equity securities
issued on the purchase date.
In the business combination not under the same control, the intermediary expenses such as auditing, legal
services, evaluation and consultation and other related management expenses incurred by the purchaser for the
business combination shall be included in the current profits and losses when they occur; Transaction costs of
equity securities or debt securities issued by the purchaser as combination consideration shall be included in the
initial recognized amount of equity securities or debt securities.
For the long-term equity investment obtained by holding combination not under the same control, the
company takes the combination cost determined on the purchase date (excluding cash dividends and profits that
should be collected from the investee) as the initial investment cost for the long-term equity investment of the
purchaser; All identifiable assets and liabilities obtained by absorption and combination under different control
that meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on
the date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the
purchaser or various identifiable assets and liabilities, the difference between the fair value of the relevant
non-monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of the
assets and recorded in the income statement of the current consolidation period.
In a business combination not under the same control, the difference between the cost of business
combination and the fair value share of identifiable net assets of the purchaser obtained in the combination is
recognized as goodwill; In the case of absorption and combination, the difference is recognized as goodwill in the
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2020 Annual Report
individual financial statements of the parent company; In the case of holding combination, the difference is listed
as goodwill in the consolidated financial statements.
The cost of business combination is less than the difference between the fair value share of identifiable net
assets acquired during the combination, which is included in the profits and losses (non-operating income) of the
current combination period after review by the Company. In the case of absorption and combination, the
difference is included in the individual income statement of the parent company in the current combination period;
In the case of holding combination, the difference is included in the consolidated income statement of the current
combination period.
If the business combination not under the same control realized step by step through multiple exchange
transactions is a package transaction, each transaction will be treated as a transaction to obtain control rights; If it
is not a package transaction, the equity of the purchased party held before the purchase date shall be re-measured
according to the fair value of the equity on the purchase date, and the difference between the fair value and its
book value shall be included in the current investment income; If the equity of the purchased party held before the
purchase date involves other comprehensive income, other comprehensive income related to it shall be converted
into the investment income of the current period on the purchase date, except for other comprehensive income
arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the
invested party.
6. Compilation method of consolidated financial statements
(1) Consolidation scope
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
means that the Company has the power over the investee, is entitled to variable returns by participating in the
related activities of the investee, and has the ability to use the power over the investee to influence its return
amount. Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of
investee(s), structured subjects, etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements of the Company are based on the financial statements of the parent
company and its subsidiaries, and are prepared according to other relevant information. When compiling, the
important internal transactions between the parent company and its subsidiaries, such as investment, transactions,
purchase and sale of inventories and their unrealized profits, are offset and combined item by item, and the
minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the
accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company, the
accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting
periods of the parent company before combination.
(3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period
During the reporting period, when preparing the consolidated balance sheet, the balance at the beginning of
the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same
control. When preparing the consolidated balance sheet, the balance at the beginning of the year of the
consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the
same control. During the reporting period, the subsidiaries are disposed of and the balance at the beginning of the
consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.
During the reporting period, the income, expenses and profits of subsidiaries added by business combination
under the same control from the beginning to the end of the reporting period are included in the consolidated
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2020 Annual Report
income statement, and the cash flows from the beginning to the end of the reporting period are included in the
consolidated cash flow statement. For subsidiaries added due to business combination not under the same control,
the income, expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are
included in the consolidated income statement, and their cash flow from the purchase date to the end of the
reporting period is included in the consolidated cash flow statement. During the reporting period, the subsidiary is
disposed of, and the income, expenses and profits from the beginning of the period to the disposal date are
included in the consolidated income statement, and the cash flow from the beginning of the period to the disposal
date is included in the consolidated cash flow statement.
When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or
other reasons, the remaining equity investment after disposal shall be re-measured according to its fair value on
the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity, minus the difference between the share of the original subsidiary's net assets
calculated continuously from the purchase date and the sum of goodwill calculated according to the original
shareholding ratio, is included in the investment income in the current period when the control right is lost. Other
comprehensive income related to the original subsidiary's equity investment is converted into current investment
income when the control right is lost, except for other comprehensive income generated by the investee's
re-measurement of net liabilities or changes in net assets of the set income plan.
The difference between the newly acquired long-term equity investment due to the purchase of minority
shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio,
and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries
and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to
adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the
capital reserve is insufficient to offset, the retained earnings will be adjusted.
(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights
If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a
package transaction, the transactions shall be treated as transactions that dispose of subsidiaries and lose control
rights; However, the difference between the disposal price and the share of the subsidiary's net assets related to the
disposal investment before the loss of control right is recognized as other comprehensive income in the
consolidated financial statements, which will be transferred to the current profit and loss when the control right is
lost, except for other comprehensive income arising from the re-measurement of the net liabilities or changes in
net assets of the set income plan by the investee. If it is not a package transaction, before the loss of control, the
difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary
from the purchase date will be adjusted to the capital reserve, and if the capital reserve is insufficient to offset, the
retained earnings will be adjusted; In case of loss of control right, the accounting treatment shall be carried out
according to the above accounting policy when the control right over the original subsidiary is lost.
7.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.
(1) Identification of joint venture arrangement
As long as two or more participants exercise joint control over an arrangement, such arrangement can be
regarded as a joint venture arrangement, and all participants are not required to be entitled to joint control over the
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arrangement.
(2) Reassessment
If the legal form, contract terms and other relevant facts and circumstances change, the participants in the
joint venture arrangement shall reassess the joint venture arrangement: First, assess whether the original joint
venture party still has joint control over the arrangement; Second, assess whether the type of joint venture
arrangement has changed.
(3) Accounting treatment of participants in joint operation
① Accounting treatment of the joint venture in joint operation
A. General accounting principles
The joint venture shall recognize the following items related to its share of interests in the joint operation and
carry out accounting treatment in accordance with the relevant accounting standards for enterprises: Firstly,
recognize the assets held separately and recognize the assets held jointly according to their share; Secondly,
recognize the liabilities undertaken separately and recognize the liabilities jointly undertaken according to their
share; Thirdly, recognize the income generated from the sale of its share of joint operating output; Fourthly,
recognize the income generated by the joint operation due to the sale of output according to its share; Fifthly,
recognize the expenses incurred separately, and recognize the expenses incurred in joint operation according to its
share.
The joint venture may use its own assets for joint operations. If the joint venture retains all ownership or
control over these assets, the accounting treatment of these assets is no different from the accounting treatment of
the joint venture's own assets.
The joint venture may also purchase assets together with other joint ventures to invest in joint operations, and
jointly bear the liabilities of joint operations. In this case, the joint venture shall recognize the interest share in
these assets and liabilities in accordance with the relevant provisions of the Accounting Standards for Business
Enterprises. For example, according to the Accounting Standards for Business Enterprises No.4-Fixed Assets, the
interest share in related fixed assets is recognized, and the share in related financial assets and financial liabilities
is recognized according to the financial instrument recognition and measurement standards.
When the joint operation is achieved through a separate entity, the joint venture shall recognize the liabilities
undertaken separately according to the above principles, and recognize the liabilities jointly undertaken according
to the share of the enterprise. However, if the joint venture is jointly and severally liable in accordance with the
relevant laws of China or the relevant contractual stipulations due to the failure of other shareholders to provide
funds to the joint venture arrangement as agreed, its accounting treatment shall be subject to the Accounting
Standards for Business Enterprises No.13-Contingencies.
B. Accounting treatment for the joint venture to invest or sell assets that do not constitute business.
When the joint venture invests or sells assets for joint operation (except that the assets constitute business),
before the joint operation sells the related assets to a third party or the related assets are consumed (i.e. the
unrealized internal profits are still included in the book value of the assets held by the joint venture), only the
gains or losses attributable to other participants in the joint venture shall be recognized. If the transaction shows
that the assets invested or sold meet the asset impairment losses specified in Accounting Standards for Business
Enterprises No.8-Asset Impairment (hereinafter referred to as "Asset Impairment Loss Standards"), the joint
venture shall fully recognize the losses.
C. Accounting treatment of assets purchased by the joint venture from joint operation that do not constitute
business
Before the joint venture buys assets from joint operation (except that the assets constitute business) and sells
the assets to a third party (i.e., when unrealized internal profits are still included in the book value of assets held
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by the joint venture), the share of profits and losses arising from the transaction that the joint venture is entitled to
shall not be recognized. That is, at this time, only the part of the profit and loss arising from the transaction that
belongs to other participants in the joint operation shall be recognized.
D. Accounting treatment of the joint venture's share of the interests of the joint operation that constitutes the
business
When the joint venture obtains the share of interests in the joint operation, and the joint operation constitutes
business, the corresponding accounting treatment shall be carried out in accordance with the relevant standards
such as business combination standards, however the provisions of other relevant standards cannot conflict with
the provisions of the joint venture arrangement standards. The enterprise shall judge whether the joint operation
constitutes a business in accordance with the relevant provisions of the business combination standards. This
treatment principle is not only applicable to the acquisition of the share of interests in the existing joint operation
that constitutes business, but also to the establishment of joint operation with other participants, and because other
participants introduce the existing business, the joint operation constitutes business when it is established.
② Accounting principles for participants who do not enjoy joint control over joint operations
Participants (non-joint ventures) who are not entitled to joint control of the joint operation shall be treated as
the joint ventures if they are entitled to the assets related to the joint operation and bear the liabilities related to the
joint operation. That is, the participants in the joint operation, regardless of whether they are entitled to joint
control or not, will be subject to the same accounting treatment as the joint ventures as long as they are entitled to
the right to jointly operate related assets and undertake the liabilities obligation related to joint operation.
Otherwise, its profit share shall be accounted for in accordance with the relevant accounting standards for
enterprises.
（(4) Accounting treatment of participants in a joint venture
In a joint venture, the participants shall account for their investment in the joint venture in accordance with
the Accounting Standards for Business Enterprises No.2-Long-term Equity Investment.
Participants (non-parties) who are not entitled to joint control over the joint venture shall carry out relevant
accounting treatment according to their influence on the joint venture: if they have significant influence on the
joint venture, their investment in the joint venture shall be accounted for in accordance with the provisions of the
long-term equity investment standards; If it has no significant impact on the joint venture, its investment in the
joint venture shall be accounted for in accordance with the provisions of the Standards for Recognition and
Measurement of Financial Instruments.
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) Foreign currency business
Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency
according to the spot rate on the transaction date.
On the balance sheet date, foreign currency monetary items and foreign currency non-monetary items shall
be treated according to the following provisions: foreign currency monetary items shall be converted at the spot
rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the
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balance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are
included in the current profits and losses; Foreign currency non-monetary items measured at historical cost are
still converted at the spot rate on the transaction date, without changing their bookkeeping base currency amount;
Foreign currency non-monetary items measured at fair value shall be converted at the spot rate on the fair value
determination date, and the difference between the converted bookkeeping base currency amount and the original
bookkeeping base currency amount shall be treated as changes in fair value (including exchange rate changes) and
included in the current profits and losses; During the capitalization period, the exchange difference between the
principal and interest of foreign currency special loans is capitalized and included in the cost of assets that meet
the capitalization conditions.
(2) Translation of foreign currency financial statements
When converting foreign currency financial statements, the Company shall comply with the following
regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date,
and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of
occurrence; The income and expense items in the income statement shall be converted at the spot rate on the
transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot
rate on the transaction date). The translation difference of foreign currency financial statements generated
according to the above translation is recognized as other comprehensive income. The conversion of comparative
financial statements shall be handled according to the above provisions.
10.Financial instruments
The Company recognizes the financial assets or liabilities when involved in financial instruments’
agreements.
（1）Classification, recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractual
cash flow of financial assets, the Company classifies financial assets into: financial assets measured in amortized
cost; financial assets measured at fair value and their's changes are included in other comprehensive income;
financial assets measured at fair value and their's changes are included in current profits and losses.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value, whose changes are included in current profits and losses, relevant transaction costs are directly included
in current profits and losses; For other types of financial assets, relevant transaction costs are included in the
initial recognition amount.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements, that is, the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets, the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.
②Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow,
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculated
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according to the actual interest rate method are included in current profits and losses.
In addition, the Company designated some non-trading equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company includes the relevant
dividend income of such financial assets in current profits and losses, and the changes in fair value in other
comprehensive gains. When the financial asset ceases to be recognized, the accumulated gains or losses
previously included in other comprehensive gains shall be transferred into retained income from other
comprehensive income, and not be included in current profit and loss.
③Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured
at fair value and their's changes in financial assets other than financial assets of comprehensive income and
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition, the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets, the Company adopts fair value for
subsequent measurement, and includes changes in fair value into current profits and losses.
（2）Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.
1 Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting, changes in fair value are included in current
profits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset, financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,
measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
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(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.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets
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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 of financial instruments
The Company requires to confirm that the financial assets lost by impairment are financial assets measured
by amortized cost, investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains, mainly including notes receivable, accounts receivable,
other receivables, creditor's rights investment, other creditor's rights investment and long-term receivables and etc.
In addition, provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss, the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).
Credit loss refers to the difference between the cash flow of all contracts discounted according to the original
real interest rate and the expected cash flow of all contracts receivable according to the contract, that is, the
present value of all cash shortages. Among them, the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.
The general method of measuring anticipated credit loss is whether the credit risk of the Company's
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financial assets (including other applicable items such as contract assets, similarly hereinafter) has increased
significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly
since the initial recognition, the Company shall measure the loss preparation according to the amount equivalent
to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial
recognition, the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information,
including forward-looking information, when evaluating expected credit losses.
Assuming that their credit risk has not increased significantly since the initial recognition, the Company may
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial
instruments with low credit risk on the balance sheet date.
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition, the credit risk of the
financial asset is significantly increased. Except for special circumstances, the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk, such as
the related party's receivables, the receivables in dispute with the other party or involving litigation and arbitration,
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment, etc.
In addition to the financial assets that assess credit risk individually, the Company shall divide financial
assets into different groups based on common risk characteristics, and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration, the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision, the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision, the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
①Receivable Account and Contract assets
In regard to receivables without significant financing components, the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.
In regard to accounts receivable with significant financing components, the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.
In addition to the accounts receivable that assesses the credit risk individually, receivables are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit
risk.
Portfolio 2 ： Quality Guarantee This portfolio is the contract quality guarantee fund and other funds
portfolio
For the above portfolio 1, the measurement method of bad debts reserve is the aging analysis method,
specifically as follows：
Aging Proportion （%）
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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
For the guarantee fund portfolio of portfolio 2, no provision for bad debts shall be made unless there is
objective evidence that the money cannot be recovered according to the original terms of accounts receivable and
contract assets.
②Other receivable
The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration, based on whether the credit risk of other receivables has increased significantly
since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually,
they are divided into different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1 This portfolio is a collection of various deposits, advances, pledges and other
receivables in daily activities.
Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business
activities.
Protfolio 3 Other receivables other than the above portfolio.
Combination of deposit, quality assurance fund and deposit and reserve fund combination except for
objective evidence that the Group will not be able to recover the amount according to the original terms of
receivables, will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for
other combinations is aging analysis, and the accrual proportion is the same as accounts receivable.
③ Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration, based on whether the credit risk has increased significantly since the initial recognition. The
Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
12.Inventory
1.Investories class:
The company’s stocks can be classified as: raw materials, etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the
weighted averages method or the first-in first-out method.
(3) Measurement of ending inventory
On the balance sheet date, inventory shall be measured at the lower of cost and net realizable value. If the
cost of inventory is higher than its net realizable value, provision for inventory depreciation shall be accrued and
recorded into the current profits and losses.
If the difference between the cost calculated by a single inventory item and its net realizable value is higher,
the inventory depreciation reserve shall be accrued and recorded into the current profits and losses. Net realizable
value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred
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upon completion, estimated sales expenses and related taxes and fees.
4. Physical inventories are managed by the perpetual inventory taking system.
13.Contract assets
The Company lists the customer's unpaid contract consideration for which the Company has fulfilled its
performance obligations according to the contract, and which is not the right to collect money from customers
unconditionally (that is, only depending on the passage of time) as a contract asset in the balance sheet. Contract
assets and liabilities under the same contract are listed in net amount, while contract assets and liabilities under
different contracts are not offset.
See Note III. 11, Impairment of Financial Instruments for the determination method and accounting treatment
method of expected credit loss of contract assets.
14.Contract cost
If the incremental cost incurred by the Company for obtaining the contract is expected to be recovered, it
shall be recognized as an asset as the contract acquisition cost. However, if the amortization period of the asset
does not exceed one year, it will be included in the current profits and losses when it occurs.
If the cost incurred for the performance of the contract does not fall within the scope of other accounting
standards for business enterprises other than Accounting Standards for Business Enterprises No.14-Revenue
(revised in 2017) and meets the following conditions at the same time, it will be recognized as an asset as contract
performance cost: ① Such cost is directly related to a current or expected contract, including direct labor, direct
materials, manufacturing expenses (or similar expenses), costs explicitly borne by customers, and other costs
incurred only due to the contract. ② Such cost increases the resources of the Company for fulfilling its
performance obligations in the future; ③ Such cost is expected to be recovered.
Assets related to the contract cost are amortized on the same basis as the recognition of commodity revenue
related to the assets, and are included in the current profits and losses.
15. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
① The initial investment cost of long-term equity investment formed by business combination shall be
determined in accordance with the following provisions:
A. In a business combination under the same control, if the combining party pays cash, transfers non-cash
assets or assumes debts as the combination consideration, the share of the book value of the owner's equity of the
merged party in the consolidated financial statements of the final controlling party shall be taken as the initial
investment cost of long-term equity investment on the combination date. The difference between the initial
investment cost of long-term equity investment and the cash paid, the transferred non-cash assets and the book
value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset,
the retained earnings shall be adjusted. All directly related expenses incurred for business combination, including
audit fees, evaluation fees, legal service fees, etc., are included in the current profits and losses when they occur.
B. In the business combination not under the same control, the Company determines the combination cost by
distinguishing the following situations:
a) For business combination realized by one exchange transaction, the cost of combination is the fair value of
assets paid, liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;
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b) For business combination realized step by step through multiple exchange transactions, the sum of the
book value of the equity investment of the purchased party held before the purchase date and the new investment
cost on the purchase date shall be taken as the initial investment cost of the investment;
c) Intermediary expenses such as auditing, legal services, evaluation and consultation, and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur;
d) If future events that may affect the combination cost are agreed in the combination contract or agreement,
if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the
combination cost can be reliably measured, they will be included in the combination cost.
② Except for the long-term equity investment formed by business combination, the initial investment cost
of long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
A. For the long-term equity investment obtained by cash payment, the actual purchase price shall be taken as
the initial investment cost. Initial investment cost includes expenses, taxes and other necessary expenditures
directly related to obtaining long-term equity investment.
B. For long-term equity investment obtained through exchange of non-monetary assets, the initial investment
cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of
Non-monetary Assets.
C. For long-term equity investment obtained through debt restructuring, the initial investment cost shall be
determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.
③ No matter how the long-term equity investment is obtained, when the investment is obtained, the cash
dividends or profits included in the paid consideration that have been declared but not yet issued by the investee
are separately accounted as receivable items, which does not constitute the initial investment cost of obtaining the
long-term equity investment.
(2) Subsequent measurement
Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.
① Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.
If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee, the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment, the difference shall be included in the
current profits and losses, and the cost of long-term equity investment shall be adjusted at the same time.
After obtaining the long-term equity investment, the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit, and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee, the book value of
long-term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss, other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee, the net profit of the investee is recognized after adjustment based on the fair value of the
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identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company, the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company, and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee, unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future, the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
amount.
When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee, the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed, and the part attributable to the Company shall be offset, and
the investment income shall be recognized on this basis. Unrealized internal transaction losses between the
Company and the investee are asset impairment losses, which shall be fully recognized.
Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital
institutions, mutual funds, trust companies or similar entities including investment-linked insurance funds.
Regardless of whether the above entities have a significant impact on this part of investment, the Company
chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments, and the rest is accounted for by equity method.
③ When the Company disposes of long-term equity investment, the difference between its book value and
the actual purchase price shall be included in the current profits and losses. For long-term equity investment
accounted by equity method, when disposing of the investment, it adopts the same basis as the investee's direct
disposal of related assets or liabilities, and accounts for the part originally included in other comprehensive
income according to the corresponding proportion.
(3) Basis to determine joint control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement, and
the relevant activities of such arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. Significant influence means that the investor has the right to participate in the
decision-making on the financial and operating policies of the investee, but cannot control or jointly control the
formulation of these policies with other parties. When determining whether the investee can be controlled or exert
significant influence, the potential voting rights factors such as current convertible bonds and current executable
warrants of the investee held by the Company and other parties shall be considered at the same time.
16.Investment Property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.
（1）The measurement mode of investment property
①Depreciation or amortization method
The estimated service life, net salvage value rate and annual depreciation (amortization) rate of investment
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real estate are listed as follows:
Type Estimated service life Estimated net salvage Annual depreciation
(years) value rate (amortization) rate
Land use right Remaining useful life
Houses and buildings 20-30 years 3%-10% 3%-4.85%
② Impairment test method and accounting treatment method
See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual
methods of investment real estate.
(2) Conversion of investment real estate
The Company has conclusive evidence that the use of real estate has changed. When converting investment
real estate into self-use real estate or inventory, the fair value on the day of conversion is taken as the book value
of self-use real estate, and the difference between fair value and original book value is included in current profits
and losses. When self-use real estate or inventory is converted into investment real estate measured by fair value
model, the investment real estate is priced according to the fair value on the conversion day. If the fair value on
the conversion day is less than the original book value, the difference is included in the current profits and losses;
If the fair value on the conversion date is greater than the original book value, the difference shall be included in
other comprehensive income.
17.Fixed assets
（1）Confirmation conditions
The Company's fixed assets refer to tangible assets held for the production of commodities, provision of
labor services, leasing or operation management, which have a service life of more than one year, and whose
economic benefits are likely to be included into the Company and whose costs can be reliably measured.
The Company's fixed assets include roads and bridges, houses and buildings, machinery and equipment,
electronic equipment, transportation tools and other equipment.
（2）Depreciation method
Depreciation Expected useful Annual depreciation
Type Residual rate（%）
method life(Year) rate(%)
Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to
Working flow basis 40 years 0%
Sanbao Section
Fokai Expressway-Sanbao to
Working flow basis 30 years 0%
Shuikou Section
Jingzhu Expressway Guangzhu
Working flow basis 30 years 0%
Section
Guanghui Expressway Co., Ltd. Working flow basis 23 years 0%
House Building The straight-line
20-30 years 3%-5% 3.17%-4.85%
method
Machine Equipment The straight-line 3-10 years 3%-5% 9.50%-32.33%
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method
The straight-line
Transportation Equipment 5-8 years 3%-5% 11.88%-19.40%
method
The straight-line
Other 5 years 3%-5% 19.00%-19.40%
method
Except for the fixed assets that have been fully depreciated and continue to be used, the depreciation of fixed
assets is classified and accrued by the life average method and workload method, and the depreciation rate is
determined according to the category of fixed assets, estimated service life and estimated net salvage value rate.
For the fixed assets formed by special reserve expenditure, the special reserve shall be offset according to the
cost to form the fixed assets, and the accumulated depreciation of the same amount shall be recognized. The fixed
assets will not be depreciated in future periods.
According to the nature and usage of fixed assets, the Company determines the service life and estimated net
salvage value of fixed assets. At the end of the year, the service life, estimated net salvage value and depreciation
method of fixed assets shall be rechecked, and if there is any difference with the original estimate, corresponding
adjustments shall be made.
(3) Identification basis, valuation and depreciation method of fixed assets leased by financing
When the leased fixed assets have substantially transferred all risks and rewards related to the assets, the
Company recognizes that the lease of the fixed assets is a financial lease.
The cost of fixed assets acquired by finance lease shall be determined according to the lower of the fair value
of the leased assets on the lease start date and the present value of the minimum lease payment.
The depreciation policy consistent with their own depreciated assets is adopted for fixed assets leased by
financing. If it can be reasonably determined that the ownership of the leased asset is acquired at the expiration of
the lease term, depreciation shall be accrued within the serviceable life of the leased asset; If it is impossible to
reasonably determine that the ownership of the leased asset can be acquired at the expiration of the lease term,
depreciation shall be accrued within the shorter period of the lease term and the serviceable life of the leased asset.
18.Construction-in process
The construction in progress of the Company refers to the plant, equipment and other fixed assets under
construction, which are accounted for in detail according to the project and recorded according to the actual cost,
including direct construction and installation costs and borrowing costs that meet the capitalization conditions.
When the construction in progress reaches the scheduled usable state, it will be carried over to fixed assets by
temporary estimation, stop interest capitalization, and start to accrue depreciation according to the determined
depreciation method of fixed assets. After the project is completed and final accounts are made, the original
estimated amount will be adjusted according to the amount of final accounts, but the original accrued depreciation
amount will not be adjusted.
19.Borrowing cost
(1) Recognition principle and capitalization period of borrowing cost capitalization
Borrowing costs incurred by the Company can be directly attributed to the purchase, construction or
production of assets that meet the capitalization conditions, and shall be capitalized when the following conditions
are met at the same time and included in the relevant asset costs:
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① Production and expenditure have occurred;
② Borrowing costs have already occurred;
③ The purchase, construction or production activities required to make the assets reach the intended usable
or saleable state have started.
Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are
abnormally interrupted in the process of purchase, construction or production, and the interruption time
continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased, built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state, the
capitalization of borrowing costs will continue.
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased, built
or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as
expenses in the current period.
(2) Calculation method of capitalization amount of borrowing costs
Where a special loan is borrowed for the purpose of purchasing, building or producing assets that meet the
capitalization conditions, it shall be determined by deducting the interest income obtained by depositing unused
loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the
investment income obtained by temporary investment.
If the general loan is occupied for the purpose of purchasing, building or producing assets that meet the
capitalization conditions, the interest amount of the general loan that should be capitalized shall be calculated and
determined according to the weighted average of the accumulated asset expenditure exceeding the special loan
portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and
determined according to the weighted average interest rate of general borrowings.
20.Intangible assets
(1) Pricing method, useful life and impairment test
The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as
intangible assets, which have no physical form, and the estimated future economic benefits related to the assets
are likely to flow into the enterprise and the cost of the assets can be reliably measured.
The intangible assets of the Company are recorded according to the amount actually paid or the determined
value.
(1) If the purchase price of intangible assets exceeds the normal credit conditions, which is of financing
nature in essence, the cost of intangible assets is determined based on the present value of the purchase price. The
difference between the actual paid price and the present value of the purchase price shall be included in the current
profits and losses within the credit period, except that it should be capitalized according to the regulations.
(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the
investment contract or agreement, unless the value agreed in the contract or agreement is unfair.
(3) The expenditure of internal research and development projects of the Company is divided into research
stage expenditure and development stage expenditure. Research refers to an original and planned investigation to
acquire and understand new scientific or technical knowledge. Development refers to the application of research
results or other knowledge to a plan or design to produce new or substantially improved materials, devices and
products before commercial production or use.
Expenditures during the research phase of internal research and development projects are included in the
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current profits and losses when they occur. Expenditures in the development stage of internal research and
development projects that meet the following conditions are recognized as intangible assets: it is technically
feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the
intangible assets and use or sell them; The ways in which intangible assets generate economic benefits, including
those that can prove that there is a market for products produced by using the intangible assets or that the
intangible assets themselves exist in the market, and that the intangible assets will be used internally, should prove
their usefulness; Have sufficient technical, financial and other resources to complete the development of the
intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the
development stage of the intangible assets can be measured reliably.
Intangible assets with limited service life of the Company shall be amortized on average within the service
life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.
The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its
cost. For intangible assets for which impairment provision has been made, the accumulated amount of impairment
provision for intangible assets has to be deducted.
The amortization period of intangible assets with limited service life is as follows:
Type Amortization period
Land use right Remaining useful life
Software 3-5 years
Toll road franchises Operating period for residual charges
21. Long-term amortizable expenses
Long-term deferred expenses are recorded according to the actual amount incurred, and are amortized
equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense
item cannot benefit the future accounting period, the amortized value of the item that has not been amortized will
be transferred to the current profits and losses.
22. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer goods to customers for the received or
receivable consideration from customers. If the customer has paid the contract consideration or the Group has
obtained the unconditional collection right before the Group transfers the goods to the customer, the Group will
list the received or receivable amount as the contract liability at the earlier of the actual payment made by the
customer and the due date for payment. Contract assets and liabilities under the same contract are listed in net
amount, while contract assets and liabilities under different contracts are not offset.
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23. Employee Benefits
Employee compensation refers to various forms of remuneration or compensation given by the Company for
obtaining services provided by employees or dissolving labor relations. Employee compensation includes
short-term salary, post-employment benefits, dismissal benefits and other long-term employee benefits.
Benefits provided by the Company to spouses, children, dependents, survivors of deceased employees and
other beneficiaries of employees are also employee compensation.
（1）Accounting methods of short-term benefits
During the accounting period when employees provide services, the Company recognizes the actual short-term
salary as a liability, which is included in the current profits and losses, except that other accounting standards
require or allow it to be included in the cost of assets.
(2) Accounting methods for post-employment benefits
The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit
plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on
post-employment benefits, or the rules or measures formulated by the Company to provide post-employment
benefits to employees, among which the set deposit plan refers to the post-employment welfare plan in which the
Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;
Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.
(3) Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees, the employee compensation liabilities arising from
the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when
the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations
plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
（4）Other long-term employee benefits
If other long-term employee benefits provided by the Company to employees meet the conditions of the set
deposit plan, they shall be handled according to the accounting policies of the set deposit plan mentioned above;
Otherwise, the net liabilities or net assets of other long-term employee benefits shall be recognized and measured
in accordance with the accounting policies of defined benefit plans mentioned above.
24.Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the obligations related to contingencies stipulated by the Company meet the following conditions at the
same time, they are recognized as estimated liabilities:
① The obligations are the current obligations undertaken by the enterprise;
② Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
③ The amount of the obligations can be measured reliably.
(2) Measurement method of estimated liabilities
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations. There is a continuous range of required expenditure, and the possibility of occurrence
of various results in this range is the same, and the best estimate is determined according to the intermediate value
in this range. In other cases, the best estimates are treated as follows:
① Contingencies involving a single item shall be determined according to the most probable amount.
② Contingencies involving multiple items shall be calculated and determined according to various possible
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results and relevant probabilities.
When determining the best estimate, the risk, uncertainty and time value of money related to contingencies
shall be considered comprehensively. If the time value of money has great influence, the best estimate is
determined by discounting the related future cash outflow.
If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be
compensated by a third party, the compensation amount can be recognized as an asset only when it is basically
confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the
estimated liabilities.
The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate, the book value shall be
adjusted according to the current best estimate.
25. Revenues
Accounting policies adopted for income recognition and measurement
(1) Revenue recognition principle
Since the starting date of the contract, the company shall evaluate the contract, identifies each individual
performance obligation contained in, and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.
The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met, otherwise, it is defined as fulfilled at a certain point in time: ① The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
② The customer can control the goods under manufacturing or services during the company's performance; ③
The goods or services produced during the company's performance have irreplaceable uses, and the company has
the right to accumulate for the completed performances during the entire contract period.
For obligations performed within a certain period of time, the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined, and
the cost incurred is expected to be compensated, the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time, revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product, the company shall consider the
following points: ① The company has the current right to receive payment for the product, that is, the customer
has the current payment obligation for the product; ② The company has transferred the legal ownership of the
product to the customer, that is, the customer has the legal ownership of the product; ③ The company has
transferred the physical product to the customer, that is, the customer has physically taken possession of the
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product; ④ The company has transferred the main risks and rewards on the ownership of the product to the
customer, that is, the customer has obtained the main risks and rewards on the ownership of the product; ⑤ The
customer has accepted the product; ⑥ Other signs that the customer has obtained control of the product.
(2) Principle of revenue measurement
① The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers, while does not include payments received
on behalf of third parties and payments expected to be returned to customers.
② If there is variable consideration in the contract, the company shall determine its best estimate according
to the expected value or the most likely amount, but the transaction price including the variable consideration shall
not exceed the accumulated amount that, if relevant uncertainty is eliminated, will most likely have no significant
reversal.
③ If there is any significant financing component in the contract, the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or services.
The difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract, if the company expects that the customer will
obtain control of the goods or services and pays the price within one year, the significant financing component in
contract shall not be considered.
④ If the contract contains two or more performance obligations, the company shall, on date of the contract,
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.
The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
(3) Specific methods of revenue recognition
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
(2) Income from providing labor services
For services started and completed in the same fiscal year, income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years, the Company shall,
on the balance sheet date, recognize the related labor income by the percentage of completion method, provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
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satisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;
③ the degree of completion of labor services can be reliably determined.
For services started and completed in the same fiscal year, income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years, the Company shall,
on the balance sheet date, recognize the related labor income by the percentage of completion method, provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the
enterprise;
If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably, the
following situations shall be dealt with respectively:
① If the labor cost already incurred is expected to be compensated, the income from the service shall be
recognized according to the amount of the labor cost already incurred, and the labor cost shall be carried over at
the same amount.
② If the incurred labor cost is not expected to be compensated, the incurred labor cost shall be included in
the profits and losses of the current period, and the income from the provision of labor service shall not be
recognized.
When the contracts or agreements signed between the Company and other enterprises include selling goods
and providing services, if the part for selling goods and the part for providing services can be distinguished and
measured separately, the part for selling goods will be treated as goods sales and the part for providing services
will be treated as service provision. Sales of goods and services can not be distinguished, or although they can be
distinguished, they can not be measured separately. All parts for the selling goods and providing services will be
treated as sales of goods.
The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
26. Government Grants
Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received.
Government subsidies for monetary assets shall be measured according to the amount received or receivable.
Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained
reliably, it shall be measured according to the nominal amount of 1 yuan.
Government subsidies related to assets refer to government subsidies obtained by the Company for
purchasing and building or forming long-term assets in other ways; Otherwise, as a government subsidy related to
income.
Where the government documents do not specify the object of the subsidy, and the subsidy can form
long-term assets, the part of the government subsidy corresponding to the value of the assets shall be regarded as
the government subsidy related to the assets, and the rest shall be regarded as the government subsidy related to
the income; Where it is difficult to be distinguished, government subsidies as a whole are treated as
income-related government subsidies.
Government subsidies related to assets offset the book value of related assets, or are recognized as deferred
revenue and included in profits and losses by stages according to a reasonable and systematic method within the
service life of related assets. Government subsidies related to income, which are used to compensate related costs
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or losses that have occurred, shall be included in current profits and losses or offset related costs; If they are used
to compensate related costs or losses in later periods, they will be included in the deferred revenue, and they will
be included in the current profits and losses or offset related costs during the recognition period of related costs or
losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The
Company adopts a consistent approach to the same or similar government subsidy business.
Government subsidies related to daily activities, according to the essence of economic business, are included
in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into
the non-operating receipt and disbursement.
When the recognized government subsidy needs to be returned, if the book value of related assets is offset
during initial recognition, the book value of assets will be adjusted; If there is a relevant deferred revenue balance,
the book balance of the relevant deferred revenue will be offset, and the excess will be included in the current
profits and losses; In other cases, it is directly included in the current profits and losses.
For the discount interest of preferential policy loans, if the finance allocates the discount interest funds to the
lending bank, the actually received loan amount is taken as the recorded value of the loan, and the borrowing cost
is calculated according to the loan principal and preferential policy interest rate. If the finance directly allocates
the discount interest funds to the Company, the discount interest will offset the borrowing costs.
27.Deferred income tax assets and deferred income tax liabilities
The Company adopts the balance sheet liability method for income tax accounting treatment.
(1) Deferred tax assets
① If there is a deductible temporary difference between the book value of an asset or liability and its tax
basis, the deferred income tax assets generated by the deductible temporary difference shall be calculated and
confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the
liability.
② On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be
obtained in the future period to offset the deductible temporary difference, the unrecognized deferred income tax
assets in the previous period shall be recognized.
③ On the balance sheet date, the book value of deferred income tax assets shall be reviewed. If it is unlikely
that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax
assets, the book value of deferred income tax assets will be written down. When sufficient taxable income is likely
to be obtained, the written-down amount will be reversed.
(2) Deferred income tax liabilities
If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis,
the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to
the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.
28.Lease
(1) Accounting methods for operating leases
As the lessee, the Company's operating lease rent is included in the relevant asset cost or current profit and
loss according to the straight-line method in each period of the lease term; The initial direct expenses incurred are
included in the current profits and losses; Contingent rents are included in current profits and losses when they
actually occur.
As the lessor, the Company includes the assets used as operating leases in the relevant items in the balance
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sheet according to the nature of the assets; For the rent of operating lease, it is recognized as the current profit and
loss according to the straight-line method in each period of the lease term; The initial direct expenses incurred are
included in the current profits and losses; For the fixed assets in the operating lease assets, the depreciation policy
of similar assets is adopted for depreciation; For other operating lease assets, a systematic and reasonable method
is adopted for amortization; Contingent rents are included in current profits and losses when they actually occur.
(2) Accounting methods for financial leasing
① As the lessee
On the start date of the lease term, the Company takes the lower of the fair value of the leased assets on the
lease start date and the present value of the minimum lease payment as the recorded value of the leased assets, and
the minimum lease payment as the recorded value of the long-term payables, with the difference as the
unrecognized financing expenses; Initial direct expenses such as handling fees, attorney fees, travel expenses,
stamp duty, etc., which occur during the lease negotiation and signing of the lease contract, are included in the
value of the leased assets; Unrecognized financing expenses are allocated in each period of the lease term, and the
current financing expenses are calculated and recognized by the effective interest rate method; Contingent rents
are included in current profits and losses when they actually occur.
When calculating the present value of the minimum lease payment, if the lessor's lease inclusive interest rate
can be obtained, the lease inclusive interest rate shall be used as the discount rate; Otherwise, the interest rate
stipulated in the lease contract shall be used as the discount rate. If the lessor's lease interest rate cannot be
obtained and the lease contract does not stipulate the interest rate, the bank loan interest rate of the same period
shall be used as the discount rate.
The Company adopts the depreciation policy consistent with that of the self-owned fixed assets to withdraw
the depreciation of the leased assets. If it can be reasonably determined that the ownership of the leased asset is
acquired at the expiration of the lease term, depreciation shall be accrued within the service life of the leased asset.
If it is impossible to reasonably determine that the ownership of the leased asset can be acquired at the expiration
of the lease term, depreciation shall be accrued within the shorter period of the lease term and the service life of
the leased asset.
② As the lessor
On the start date of the lease term, the Company shall take the sum of the minimum lease receipt amount and
the initial direct expenses on the lease start date as the recorded value of the financial lease receivable, and records
the unsecured residual value; Recognize the difference between the sum of the minimum lease payment amount,
initial direct expenses and unsecured residual value and its present value as unrealized financing income;
Distribute unrealized financing income in each period of the lease term; Calculate and confirm the financing
income of the current period by using the effective interest rate method; And include contingent rents in current
profits and losses when they actually occur.
29. Held-for-sale non-current assets, disposal group and termination of operation
(1) Classification and measurement of held-for-sale non-current assets or disposal groups
When the book value is recovered mainly by selling (including the exchange of non-monetary assets with
commercial substance) rather than continuously using a non-current asset or disposal group, the non-current asset
or disposal group is classified as held for sale.
The above-mentioned non-current assets do not include investment real estate measured by fair value model,
biological assets measured by net amount of fair value minus selling expenses, assets formed by employee
compensation, financial assets, deferred income tax assets and rights arising from insurance contracts.
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The disposal group refers to a group of assets disposed of together by sale or other means in a transaction as
a whole, and liabilities directly related to these assets transferred in the transaction. Under certain circumstances,
the disposal group includes goodwill obtained in business combination, etc.
At the same time, non-current assets or disposal groups that meet the following conditions are classified as
held for sale: according to the practice of selling such assets or disposal groups in similar transactions, the
non-current assets or disposal groups can be sold immediately under the current situation; The sale is very likely
to happen, that is, a resolution has been made on a sale plan and a firm purchase commitment has been obtained,
and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to the
sale of investments in subsidiaries, whether or not the Company retains part of the equity investments after the
sale, when the investment in subsidiaries to be sold meets the classification conditions of held-for-sale, the
investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements, and all
assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.
When the non-current assets or disposal groups held for sale are initially measured or re-measured on the
balance sheet date, the difference between the book value and the net amount after deducting the selling expenses
from the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss recognized
for the held-for-sale disposal group, the book value of goodwill in the disposal group is offset first, and then the
book value of non-current assets in the disposal group is offset proportionally.
If the net amount of non-current assets held for sale or disposal group's fair value minus selling expenses
increases on the subsequent balance sheet date, the previously written-down amount will be restored and reversed
within the amount of asset impairment loss recognized after being classified as held-for-sale, and the reversed
amount will be included in the current profits and losses. The book value of offset goodwill shall not be reversed.
Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;
Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part of
the investments of affiliated enterprises or joint ventures classified as held-for-sale shall be accounted for by the
equity method for those classified as held for sale, while those retained (not classified as held-for-sale) shall
continue to be accounted for by the equity method; When the Company loses significant influence on the affiliated
enterprise and joint venture due to the sale, it shall stop using the equity method.
If a certain non-current asset or disposal group is classified as held for sale, but the classification conditions
of held for sale are no longer met, the Company will stop classifying it as held for sale and measure it according to
the lower of the following two amounts:
① For the book value of the asset or disposal group before it is classified as held for sale, the amount
adjusted according to the depreciation, amortization or impairment which should have been recognized without
being classified as held for sale;
② Recoverable amount.
(2) Termination of operation
Termination of operation refers to the components that have been disposed of by the Company or classified
as held for sale by the Company and can be distinguished separately, which meet one of the following conditions:
① This component represents an independent main business or a separate main business area.
② This component is part of an associated plan to dispose of an independent main business or a separate
main business area.
③ This component is a subsidiary acquired for resale.
(3) Presentation
In the balance sheet, the Company lists the non-current assets held for sale or the assets in the disposal group
held for sale as "assets held for sale", and lists the liabilities in the disposal group held for sale as "liabilities held
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for sale".
The Company separately lists the profit and loss from continuing operations and the profit and loss from
termination of operations in the income statement. For non-current assets or disposal groups held for sale that do
not meet the definition of termination of operation, the impairment loss, reversal amount and disposal profit and
loss are listed as the profit and loss of continuing operations. Operating profit and loss and disposal profit and loss
such as impairment loss and reversal amount of discontinued operation are listed as discontinued operation profit
and loss.
A disposal group that intends to terminate its use instead of selling and meets the conditions of relevant
components in the definition of operation termination shall be listed as operation termination from the date when
it ceases to use.
For the discontinued operations listed in the current period, in the current financial statements, the
information originally listed as the profit and loss of continuing operations is re-listed as the profit and loss of
discontinued operations in the comparable accounting period. If the termination of operation no longer meets the
classification conditions for held-for-sale, the information originally listed as the profit and loss of operation
termination in the current financial statements will be listed again as the profit and loss of continuing operation in
the comparable accounting period.
30. Impairment of assets
The following signs indicate that the assets may be impaired:
(1) The market price of assets fell sharply in the current period, which was significantly higher than the
expected decline due to the passage of time or normal use.
(2) The economic, technical or legal environment in which the Company operates and the market in which
the assets are located have undergone major changes in the current period or in the near future, which will have
adverse effects on the Company.
(3) The market interest rate or other market return on investment has increased in the current period, which
affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of
assets, resulting in a significant decrease in the recoverable amount of assets.
(4) There is evidence that the assets are outdated or their entities have been damaged.
(5) Assets have been or will be idle, terminated or planned to be disposed of in advance.
(6) The evidence reported by the company shows that the economic performance of assets has been or will
be lower than expected, such as the net cash flow created by assets or the realized operating profit (or loss) is far
lower than the expected amount.
(7) Other indications that assets may have been impaired.
On the balance sheet date, the Company judges various assets that are applicable to the Accounting Standards
for Business Enterprises No.8-Impairment of Assets, such as long-term equity investment, fixed assets,
engineering materials, construction in progress, intangible assets (except those with uncertain service life), and
conducts impairment test when there are signs of impairment-estimating their recoverable amount. The
recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset
is lower than its book value, the book value of the asset shall be written down to the recoverable amount, and the
written-down amount shall be recognized as the asset impairment loss, which shall be included in the current
profits and losses, and the corresponding asset impairment reserve shall be accrued at the same time.
If there are signs that an asset may be impaired, the Company usually estimates its recoverable amount on the
basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset, the recoverable
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2020 Annual Report
amount of the asset group is determined based on the asset group to which the asset belongs.
Asset group is the smallest asset portfolio that can be recognized by the Company, and its cash inflow is
basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The
identification of asset group is based on whether the main cash inflow generated by asset group is independent of
other assets or cash inflow of asset group.
The Company conducts impairment test every year for intangible assets with uncertain goodwill and service
life formed by business combination and not yet in serviceable condition, regardless of whether there is any sign
of impairment. The impairment test of goodwill is carried out in combination with its related asset group or
combination of asset groups.
Once the asset impairment loss is confirmed, it will not be reversed in the following accounting period.
31. Fair value measurement
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date.
The Company measures related assets or liabilities at fair value, assuming that the orderly transaction of
selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no
major market, the Company assumes that the transaction will be conducted in the most favorable market of related
assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can
enter on the measurement day. The Company adopts the assumptions used by market participants to maximize
their economic benefits when pricing the assets or liabilities.
When measuring non-financial assets at fair value, the ability of market participants to use the assets for the
best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best
purpose to generate economic benefits shall be considered.
The Company adopts the valuation technology which is applicable in the current situation and supported by
sufficient available data and other information, and gives priority to the relevant observable input values, and only
uses the unobservable input values when the observable input values are unavailable or impractical.
For assets and liabilities measured or disclosed at fair value in financial statements, it shall determine the fair
value level according to the lowest level input value which is of great significance to fair value measurement as a
whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained
on the measurement date in an active market; The second-level input value is directly or indirectly observable
input values of related assets or liabilities except the first-level input value; The third level input value is the
unobservable input value of related assets or liabilities.
On each balance sheet date, the Company reassesses the assets and liabilities recognized in the financial
statements that are continuously measured at fair value to determine whether there is a conversion between the
fair value measurement levels.
32.Change of main accounting policies and estimations
(1)Change of main accounting policies
√Applicable □ Not applicable
Contents and causes for changes of
Approval procedures Remarks
accounting policy
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2020 Annual Report
The New Income Standards
establish a new income recognition
model for regulating the income
generated by contracts with customers.
In order to implement the new revenue
standard, the Company re-evaluated the
recognition, measurement, accounting
On July 5, 2017, the Ministry of Finance and presentation of main contract
issued the Accounting Standards for It was adopted at the 4th meeting of the income. According to the new income
Business Enterprises No.14-Income 9th Board of Directors of the Company standards, only the cumulative impact of
(Revised in 2017) (CK [2017] No.22) on April 3, 2020 unfinished contracts on January 1, 2020
(hereinafter referred to as the "New are adjusted. The accumulated impact
Income Standards"). amount of the first implementation is
adjusted. The amount of retained
earnings at the beginning of the first
implementation period (i.e. January 1,
2020) and other related items in the
financial statements will not be adjusted
for the information of comparable
periods.
Influence of implementing new income standards on financial statements on January 1, 2020:
Items December 31,2019（Before change） January 1,2020（After change）
Consolidated statements Consolidated statements
Account receivable 177,099,124.09 179,449,777.42
Other account
30,103,478.60 22,706,427.50
receivable
Contract assets 5,046,397.77
Inventories 111,683.22 111,683.22
Other Non-current assets 50,909,325.73 50,909,325.73
Advance receipts 15,605,094.69 12,817,484.06
Contract liabilities 2,787,610.63
（2）Significant estimates changes
√ Applicable □ Not applicable
Time point at
Contents and causes of changes in
Approval procedure which the Remarks
accounting estimates
application begins
From January 1, 2020, the Traffic On December 31, 2019, For this matter, the company adopts the
Volume Forecast and Charge the third (provisional) future applicable method. This change in
Revenue Report of Fokai meeting of the ninth January 1,2020 accounting estimate results in a decrease
Expressway and the Traffic Volume board of directors was in depreciation of fixed assets in the
Forecast and Charge Revenue held, and the meeting current period than the original
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2020 Annual Report
Report of Guangzhu Section of passed the Proposal on accounting estimate by RMB
Jiangzhu Expressway issued by Changes in Accounting 172,308,077.27, a decrease in operating
Guangdong Transportation Estimates cost by RMB 172,308,077.27, AN
Planning and Design Institute Co., increase in net profit by RMB
Ltd. in 2019 for the Fokai Branch 129,231,057.95, an increase in net profit
of Guangdong Expressway attributable to shareholders of the parent
Development Co., Ltd., a branch of company by RMB 123,155,223.57, and
the Company, and Jingzhu an increase in impact of profit and loss
Expressway Guangzhu Section Co., attributable to minority shareholders by
Ltd., a holding subsidiary are used RMB 6,075,834.39.、
as depreciation basis
For this matter, the company adopts the
future applicable method. This change in
accounting estimate results in a decrease
in depreciation of fixed assets in the
From September 1, 2020, the On August 26, 2020,
current period than the original
depreciation period of machinery the 9th (provisional)
accounting estimate by RMB
and equipment, electronic meeting of the ninth
33,759,072.50, an Increase in operating
equipment and other equipment has board of directors was
September 1,2020 cost by RMB 33,759,072.50, A decrease
been changed, and the net salvage held, and the meeting
in net profit by RMB 25,319,304.38, a
value rate of fixed assets (except passed the Proposal on
decrease in net profit attributable to
road property) has also been Changes in Accounting
shareholders of the parent company by
changed. Estimates
RMB 24,086,113.34, and a decrease in
impact of profit and loss attributable to
minority shareholders by RMB
1,233,191.05.
（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 2020
Applicable
Whether need to adjust the balance sheet account at the beginning of the year
√ Yes □No
Consolidated balance sheet
In RMB
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Current asset：
Monetary fund 3,054,198,364.15 3,054,198,364.15
Settlement provision
Outgoing call loan
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2020 Annual Report
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 177,099,124.09 179,449,777.42 2,350,653.33
Financing of receivables
Prepayments 11,829,452.88 11,829,452.88
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 30,103,478.60 22,706,427.50 -7,397,051.10
Including：Interest receivable
Dividend receivable 7,205,472.90 7,205,472.90
Repurchasing of financial assets
Inventories 111,683.22 111,683.22
Contract assets 5,046,397.77 5,046,397.77
Assets held for sales
Non-current asset due within 1 year 51,745.32 51,745.32
Other current asset 196,576,603.21 196,576,603.21
Total of current assets 3,469,970,451.47 3,469,970,451.47
Non-current assets
Loans and payment on other’s behalf
disbursed
Debt investment
Other investment on bonds
Long-term receivable
Long term share equity investment 2,207,266,324.84 2,207,266,324.84
Other equity instruments investment 1,835,822,604.77 1,835,822,604.77
Other non-current financial assets
Property investment 3,331,500.37 3,331,500.37
Fixed assets 12,460,188,469.66 12,460,188,469.66
Construction in progress 241,274,698.97 241,274,698.97
Production physical assets
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2020 Annual Report
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Oil & gas assets
Use right assets
Intangible assets 8,762,039.52 8,762,039.52
Development expenses
Goodwill
Long-germ expenses to be amortized 3,919,764.44 3,919,764.44
Deferred income tax asset 385,494,106.13 385,494,106.13
Other non-current asset 50,909,325.73 50,909,325.73
Total of non-current assets 17,196,968,834.43 17,196,968,834.43
Total of assets 20,666,939,285.90 20,666,939,285.90
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 368,307,598.41 368,307,598.41
Advance receipts 15,605,094.69 12,817,484.06 -2,787,610.63
Contract liabilities 2,787,610.63 2,787,610.63
Selling of repurchased financial
assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 15,173,142.46 15,173,142.46
Tax payable 175,201,627.19 175,201,627.19
Other account payable 474,689,554.26 474,689,554.26
Including：Interest payable
Dividend payable 20,020,119.31 20,020,119.31
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
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2020 Annual Report
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Non-current liability due within 1
796,246,790.61 796,246,790.61
year
Other current liability 1,246,636.74 1,246,636.74
Total of current liability 1,846,470,444.36 1,846,470,444.36
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 4,926,015,000.00 4,926,015,000.00
Bond payable 678,124,972.89 678,124,972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 39,369,379.91 39,369,379.91
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 51,000,000.00 51,000,000.00
Deferred income tax liability 428,922,140.08 428,922,140.08
Other non-current liabilities
Total non-current liabilities 6,123,431,492.88 6,123,431,492.88
Total of liability 7,969,901,937.24 7,969,901,937.24
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 3,094,017,129.31 3,094,017,129.31
Less：Shares in stock
Other comprehensive income 382,193,344.90 382,193,344.90
Special reserve
Surplus reserves 1,074,553,052.81 1,074,553,052.81
Common risk provision
Retained profit 3,915,790,810.76 3,915,790,810.76
Total of owner’s equity belong to the 10,557,360,463.78 10,557,360,463.78
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2020 Annual Report
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
parent company
Minority shareholders’ equity 2,139,676,884.88 2,139,676,884.88
Total of owners’ equity 12,697,037,348.66 12,697,037,348.66
Total of liabilities and owners’
20,666,939,285.90 20,666,939,285.90
equity
Adjustment statement
Parent Company Balance Sheet
In RMB
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Current asset：
Monetary fund 2,791,384,501.78 2,791,384,501.78
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 21,864,051.27 21,864,051.27
Financing of receivables
Prepayments 1,737,598.88 1,737,598.88
Other account receivable 13,435,651.19 13,435,651.19
Including：Interest receivable
Dividend receivable 7,205,472.90 7,205,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 151,637,139.08 151,637,139.08
Other current asset
Total of current assets 2,980,058,942.20 2,980,058,942.20
Non-current assets：
Debt investment 537,903,684.98 537,903,684.98
Other investment on bonds
Long-term receivable
Long term share equity investment 4,789,404,907.17 4,789,404,907.17
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2020 Annual Report
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Other equity instruments investment 1,835,822,604.77 1,835,822,604.77
Other non-current financial assets
Property investment 3,079,362.12 3,079,362.12
Fixed assets 6,818,701,482.08 6,818,701,482.08
Construction in progress 46,952,925.08 46,952,925.08
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 2,533,878.12 2,533,878.12
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 385,296,935.33 385,296,935.33
Other non-current asset 36,901,029.57 36,901,029.57
Total of non-current assets 14,456,596,809.22 14,456,596,809.22
Total of assets 17,436,655,751.42 17,436,655,751.42
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 129,930,285.56 129,930,285.56
Advance receipts
Contract Liabilities
Employees’ wage payable 6,340,740.61 6,340,740.61
Tax payable 8,704,510.83 8,704,510.83
Other account payable 582,131,356.01 582,131,356.01
Including：Interest payable
Dividend payable 20,020,119.31 20,020,119.31
Liabilities held for sales
Non-current liability due within 1
744,589,133.72 744,589,133.72
year
Other current liability 821,133,339.57 821,133,339.57
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2020 Annual Report
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Total of current liability 2,292,829,366.30 2,292,829,366.30
Non-current liabilities：
Long-term loan 4,243,730,000.00 4,243,730,000.00
Bond payable 678,124,972.89 678,124,972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 39,369,379.91 39,369,379.91
Long-term remuneration payable to
staff
Expected liabilities
Deferred income
Deferred income tax liability 129,978,356.56 129,978,356.56
Other non-current liabilities
Total non-current liabilities 5,091,202,709.36 5,091,202,709.36
Total of liability 7,384,032,075.66 7,384,032,075.66
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 2,974,458,696.93
Less：Shares in stock
Other comprehensive income 382,193,344.90 382,193,344.90
Special reserve
Surplus reserves 894,580,785.25 894,580,785.25
Retained profit 3,710,584,722.68 3,710,584,722.68
Total of owners’ equity 10,052,623,675.76 10,052,623,675.76
Total of liabilities and owners’
17,436,655,751.42 17,436,655,751.42
equity
Note
165
2020 Annual Report
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2020
□ Applicable √ Not applicable
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Taxable income 3%，5%，6%，9%，13%
City maintenance and construction tax The actual payment of turnover tax 7%，5%
Enterprise income tax Taxable income 25%
Education Fee Surcharge The actual payment of turnover tax 3%
Local education surcharge The actual payment of turnover tax 2%
2.Preferential tax
According to the Notice of the Ministry of Finance and the State Administration of Taxation on Fully
Opening the Pilot of Changing Business Tax to VAT (CS [2016] No.36), the qualified contract energy
management services of the subsidiary Guangdong High-speed Technology Investment Co., Ltd. are exempt from
VAT.
VII. Notes to the major items of consolidated financial statement
Unless otherwise specified, in the following notes (including the notes to main items in the financial statements of
the parent company) "the beginning of the period" refers to January 1, 2020, "the end of the period" refers to
December 31, 2020, "current period" refers to Year 2020, and "last period" refers to Year 2019.
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 54,482.68 75,833.29
Bank deposit 2,846,821,352.23 3,052,884,045.33
Other 522,168.98 1,238,485.53
Total 2,847,398,003.89 3,054,198,364.15
Other note
On December 31,2020,The balance of restricted bank deposits at the end of the period was 1,221,200.00 yuan,
which was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion
project of Sanbao to Shuikou section of Fokai Expressway.
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2020 Annual Report
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book value Book value
Amount Proportion(%) Amount Propor Amount Proportion Amount Proportion(
tion(% (%) %)
)
Of which：
Accrual of bad
1,352,880
debt provision by 172,621,378.99 100.00% 3,713,861.43 2.15% 168,907,517.56 180,802,658.14 100.00% 0.75% 179,449,777.42
.72
portfolio
Of which：
1,352,880
Aging portfolio 171,846,750.22 99.55% 3,713,861.43 2.16% 168,132,888.79 179,305,712.71 99.17% 0.75% 177,952,831.99
.72
Quality guarantee
774,628.77 0.45% 774,628.77 1,496,945.43 0.83% 1,496,945.43
portfolio
1,352,880
Total 172,621,378.99 3,713,861.43 168,907,517.56 180,802,658.14 179,449,777.42
.72
①Accrual of bad debt provision by single：None
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2020 Annual Report
②Accrual of bad debt provision by portfolio：Accrual of bad debt provision by aging portfolio
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion
Within 1 year 155,744,121.98 0.00%
1-2 years 6,216,340.00 517,764.40 10.00%
2-3 years 9,303,445.25 2,684,406.38 30.00%
3-4 years 75,000.00 37,500.00 50.00%
4-5 years 336,523.39 302,871.05 90.00%
Over 5 years 171,319.60 171,319.60 100.00%
Total 171,846,750.22 3,713,861.43 --
Note of the basis of recognizing the portfolio:
Provision for bad debts according to the age portfolio
③Accrual of bad debt provision by portfolio: Notes of the basis of Quality guarantee the group
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion
Quality guarantee 774,628.77 0.00%
Total 774,628.77 --
Notes of the basis of recognizing the portfolio:
Provision for bad debts according to Quality guarantee portfolio
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 155,744,121.98
1-2 years 6,247,640.00
2-3 years 9,410,005.85
Over 3 years 1,219,611.16
3-4 years 157,725.20
4-5 years 575,094.67
Over 5 years 486,791.29
Total 172,621,378.99
168
2020 Annual Report
(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
Opening Reversed or Closing
Category
balance Accrual collected Write-off Other balance
amount
Aging portfolio 1,352,880.72 2,360,980.71 3,713,861.43
Total 1,352,880.72 2,360,980.71 3,713,861.43
Of which the significant amount of the reversed or collected part during the reporting period :None
（3）The current accounts receivable write-offs situation
None
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services
100,047,025.70 57.96%
Co., Ltd.
Guangzhou Lingte Electronic Co.,Ltd. 16,299,000.00 9.44%
Guangdong Humen Bridge Co., Ltd. 11,044,082.54 6.40%
Guangdong Lulu Traffic Development
10,420,000.00 6.04%
Co., Ltd.
Shandong Boan Intelligent
7,409,966.25 4.29% 2,222,989.88
Technology Co., Ltd
Total 145,220,074.49 84.13%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
3. Prepayments
（1）Aging analysis
In RMB
169
2020 Annual Report
Balance in year-end Balance Year-beginning
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year 3,518,401.18 97.53% 11,659,714.88 98.57%
1-2 years 89,136.83 2.47%
Over 3 years 169,738.00 1.43%
Total 3,607,538.01 -- 11,829,452.88 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
None
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations with the Amount Aging Reasons for Proportion %
Company non-settleme
nt
China Pacific Property Insurance Co. Ltd. Non- Related 838,016.00 Within 1 Unliquidated 23.23
Guangdong Branch party year
China Ping An Property Insurance Co. Ltd. Non- Related 819,624.15 Within 1 Unliquidated 22.72
Guangdong Branch party year
Guangdong Litong Property Investment Co., Ltd. Related party 776,413.03 Within 1 Unliquidated 21.52
year
Tianjing Kechang Huitong Information Technology Non- Related 300,000.00 Within 1 Unliquidated 8.32
Co., Ltd. party year
Guangdong Power Grid Energy Development Co., Non- Related 240,500.00 Within 1 Unliquidated 6.67
Ltd. party year
Total / 2,974,553.18 / / 82.46
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 2,705,472.90 7,205,472.90
Other receivable 58,219,894.74 15,500,954.60
Total 60,925,367.64 22,706,427.50
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1,205,472.90 1,205,472.90
No.1 Limited partnership enterprise
Ganzhou Gankang Expressway Co., Ltd. 1,500,000.00
170
2020 Annual Report
Guangdong Yueke Technology Petty Loan Co., Ltd. 6,000,000.00
Total 2,705,472.90 7,205,472.90
2）Significant dividend receivable aged over 1 year
In RMB
Whether with
Balance in Reasons for
Items Aging impairment and the
year-end non-recovery
judgment basis
The Company No, it can be
广 Guangdong Radio and Television Networks Over 1
1,205,472.90 account is recovered in the
investment No.1 Limited partnership enterprise year
temporarily frozen future
（2） 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
Capital reduction due from Gankang 45,000,000.00
Petty cash 5,654,205.42 6,125,222.52
Gelin Enze Account 4,007,679.91 4,007,679.91
Cash deposit 4,001,660.43 3,435,790.57
Tran Other safer of long-term assets
935,820.00 935,820.00
receivable
Other 2,754,248.87 5,033,333.69
Leas：Bad-debt provision -51,661,776.07 -51,564,948.27
Total 58,219,894.74 15,500,954.60
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit Expected credit loss over
Bad Debt Reserves for the entire duration Total
losses over the life (no credit
(credit impairment
next 12 months impairment)
occurred)
Balance as at January 1,2020 29,212.18 51,535,736.09 51,564,948.27
Balance as at January 1,2020 in —— —— —— ——
171
2020 Annual Report
current
Accrual 96,827.80 96,827.80
Balance as at December
126,039.98 51,535,736.09 51,661,776.07
31,2020
Of which the significant amount of the reversed or collected part during the reporting period :None
Note 1 ： The parent company once paid 33,683,774.79 yuan into Kunlun Securities Co., Ltd, Guangdong
Expressway technology investment Co., Ltd once paid 18,000,000.00 yuan into Kunlun Securities Co., Ltd.
Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun
Securities Co., Ltd went bankrupt and repaid debt in November 11, 2006. On March 2007, The Company and
Guangdong Expressway Technology Investment Co., Ltd had switched the money that paid into Kunlun Securities
Co., Ltd to other account receivable, and follow the careful principle to doubtful debts provision. The 710,349.92
yuan Credit was Recovered in 2008, The 977,527.77 yuan credit was recovered in 2011, The 652,012.00 yuan
Credit was recovered in 2014, The 1,815,828.92 yuan Credit was recovered in 2018, and the provision for had deb
Note 2：Guangdong Expressway Technology investment Co., Ltd .should charge Beijing Gelin Enze Organic
Fertilizer Co., Ltd.for 12,220,079.91 yuan. Eight millions of it was entrust loan, three million was temporary
borrowing 12,400.00 yuan is the commission loan interest, the rest of it was advance money for another, Beijing
Gelin Enze Organic Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly,
the controlling subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full provision
for Bad debt 12,220,079.91 yuan provision. The company in 2014 recovered arrears of 8,000,000.00
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.
Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 54,791,424.11
1-2 years 985,257.58
2-3 years 723,934.77
Over 3 years 53,381,054.35
3-4 years 426,977.40
4-5 years 493,491.88
Over 5 years 52,460,585.07
Total 109,881,670.81
3） Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
172
2020 Annual Report
Amount of change in the current period
Balance
Reversed or
Category Year-beginnin Balance in year-end
Accrual collected Write-off Other
g
amount
Accrual of single item 51,535,736.09 51,535,736.09
Accrual of
29,212.18 96,827.80 126,039.98
portfolio-Aging portfolio
Accrual of
portfolio-Other portfolio
Total 51,564,948.27 96,827.80 51,661,776.07
Where the current bad debts back or recover significant amounts:None
4)The actual write-off other accounts receivable: None
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
total year end Closing balance
Name Nature Closing balance Aging balance of the of bad debt
accounts provision
receivable(%)
Securities trading se Over 5
Kunlun Securities Co.,Ltd 47,528,056.18 43.25% 47,528,056.18
ttlement funds years
Ganzhou Gankang Expressway Capital reduction Within 1
45,000,000.00 40.95%
Co., Ltd. due from Gankang year
Over 5
Beijing Gelin Enze Current account 4,007,679.91 3.65% 4,007,679.91
years
Guangdong Litong Real Estates Within 1
Deposit 1,630,467.36 1.52%
Investment Co., Ltd. year
Vehicle parking Over 5
35,680.00
deposit years
Guangdong Expressway Media Within 1
Current account 1,218,110.44 1.11%
Co.,Ltd. year
Total -- 99,419,993.89 -- 90.48% 51,535,736.09
173
2020 Annual Report
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
5. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw material 49,380.53 49,380.53 111,683.22 111,683.22
Stock goods 4,380.53 4,380.53
Total 53,761.06 53,761.06 111,683.22 111,683.22
(2) Inventory depreciation reserve
None
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（4）Description of amortization amount of contract performance cost in the current period
None
6.Contract assets
In RMB
Year-end balance Year-beginning balance
Items
Book Bad debt Book Bad debt
Book value Book value
balance provision balance provision
Quality guarantee 5,452,813.90 5,452,813.90 5,046,397.77 5,046,397.77
Total 5,452,813.90 5,452,813.90 5,046,397.77 5,046,397.77
Amount and reason of material change of book value of contract assets in the current period::None
Provision for impairment of contract assets in the current period
None
174
2020 Annual Report
7.Non-current asset due within 1 year
In RMB
Items
Year-end balance Year-beginning balance
Pre-payment of business tax before
51,745.32 51,745.32
replacing business tax with VAT
Total 51,745.32 51,745.32
8.Other current assets
I n RMB
Items
Year-end balance Year-beginning balance
Income tax to be deducted
Income tax to be certified 27,051.69
Short-term Creditor's Investment 196,576,603.21
Total 27,051.69 196,576,603.21
175
2020 Annual Report
9. Long-term equity investment
In RMB
Increase/decrease
With
Closing
Investment draw
balance
Adjustment of Cash bonus or al of
profit and loss Changes of Ot of
Investees Opening balance Additional Negative other profits impai Closing balance
other he impairme
recognized
comprehensive announced to rmen
investment investment equity r nt
under the income issue t
provision
equity method provi
sion
I. Joint venture
2. Affiliated Company
Guangdong Jiangzhong Expressway Co.,
179,491,516.98 12,760,987.96 192,252,504.94
Ltd.
Ganzhou Gankang Expressway Co., Ltd. 213,672,650.90 45,000,000.00 -21,398,030.18 1,500,000.00 145,774,620.72
Ganzhou Kangda Expressway Co., Ltd. 234,733,526.86 9,080,563.64 27,000,000.00 216,814,090.50
Shenzhen Huiyan Expressway Co., Ltd. 262,682,427.44 22,726,327.71 285,408,755.15
Zhaoqing Yuezhao Highway Co., Ltd. 308,122,059.69 44,064,159.14 49,750,000.00 302,436,218.83
Guoyuan Securities Co., Ltd. 793,926,807.52 129,910,442.24 32,205,888.19 -5,192,159.89 11,940,297.90 938,910,680.16
Guangdong Yueke Technology Petty
214,637,335.45 10,065,984.93 9,000,000.00 215,703,320.38
Loan Co., Ltd.
Hunnan Lianzhi Technology Co., .Ltd. 80,000,000.00 5,011,902.75 69,072.17 85,080,974.92
Subtotal 2,207,266,324.84 209,910,442.24 45,000,000.00 114,517,784.14 -5,192,159.89 69,072.17 99,190,297.90 2,382,381,165.60
Total 2,207,266,324.84 209,910,442.24 45,000,000.00 114,517,784.14 -5,192,159.89 69,072.17 99,190,297.90 2,382,381,165.60
176
2020 Annual Report
Other note
177
2020 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
Guangdong Radio and Television
Networks investment No.1 Limited 50,000,000.00 50,000,000.00
partnership enterprise
China Everbright Bank Co., Ltd. 938,667,226.56 1,037,474,303.04
Huaxia Securities Co., Ltd.（Notes1）
Huazheng Asset Management Co., Ltd.
（Notes2）
Kunlun Securities Co., Ltd.（Notes3）
Total 1,737,015,528.29 1,835,822,604.77
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.
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 consolidat measured at fair consolidat
Cumulative
Items income Cumulative gain ed income value and changes ed income
loss
recognized transferred included in other transferred
to retained comprehensive to retained
earnings income earnings
Non-trans
Guangle Expressway Co., actional
Ltd. purpose
for
178
2020 Annual Report
Amount of Reasons for Reasons
other designation as for other
Dividend consolidat measured at fair consolidat
Cumulative
Items income Cumulative gain ed income value and changes ed income
loss
recognized transferred included in other transferred
to retained comprehensive to retained
earnings income earnings
shareholdi
ng
Non-trans
Guangdong Radio and actional
Television Networks purpose
440,655.02 7,802,784.15
investment No.1 Limited for
partnership enterprise shareholdi
ng
Non-trans
actional
China Everbright Bank Co., 50,344,558.0 purpose
421,106,349.76
Ltd. 2 for
shareholdi
ng
Non-trans
actional
purpose
Huaxia Securities Co., Ltd. 5,400,000.00
for
shareholdi
ng
Non-trans
actional
Huazheng Asset Management purpose
1,620,000.00
Co., Ltd. for
shareholdi
ng
Non-trans
actional
purpose
Kunlun Securities Co., Ltd. 30,000,000.00
for
shareholdi
ng
50,785,213.0
Total 428,909,133.91 37,020,000.00
4
179
2020 Annual Report
11. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Houses and Construction in
Items Land use right Total
buildings progress
I. Original value
1.Opening balance 12,664,698.25 2,971,831.10 15,636,529.35
2.Increased amount of the period
（1）Outsourcing
(2)Inventory, Fixed assets and Construction
project into
(3) )Increased of Enterprise consolidation
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 2,971,831.10 15,636,529.35
II.Accumulated depreciation accumulated
amortization
1.Opening balance 10,547,091.78 1,757,937.20 12,305,028.98
2.Increased amount of the period 147,549.12 73,569.36 221,118.48
(1)Withdrawal or amortization 147,549.12 73,569.36 221,118.48
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 10,694,640.90 1,831,506.56 12,526,147.46
III. Impairment provision
180
2020 Annual Report
Houses and Construction in
Items Land use right Total
buildings progress
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 1,970,057.35 1,140,324.54 3,110,381.89
2.Opening book 2,117,606.47 1,213,893.90 3,331,500.37
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
Houses and Building 1,292,746.74
facilities, Not accreditation
Total 1,292,746.74
12. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 11,540,066,429.69 12,460,188,469.66
liquidation of fixed assets 9,500.00
Total 11,540,075,929.69 12,460,188,469.66
181
2020 Annual Report
(1) List of fixed assets
In RMB
Jingzhu
Office
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway equipment and Total
Expressway Expressway Guangzhu buildings equipment equipment
other
section
I. Original price
1.Opening balance 1,460,270,190.66 10,935,058,609.66 6,475,428,904.48 4,816,156,616.45 651,538,302.92 1,581,718,051.00 62,473,441.73 109,565,991.37 26,092,210,108.27
2.Increased amount of the
8,724,808.53 1,757,934.00 296,199,676.97 2,009,197.16 34,672,992.94 343,364,609.60
period
（1）Purchase 5,228,185.60 2,009,197.16 12,979,530.72 20,216,913.48
（2）Transfer of project
8,724,808.53 1,578,211.00 290,971,491.37 21,693,462.22 322,967,973.12
under construction
(3)Increased of Enterprise
consolidation
（4）Other 179,723.00 179,723.00
3.Decreased amount of the
42,240,682.36 139,438.00 70,836,932.08 3,054,950.00 9,992,986.30 126,264,988.74
period
（1）Disposal or scrap 42,240,682.36 139,438.00 70,836,932.08 3,054,950.00 9,992,986.30 126,264,988.74
（2）Government subsidy
offset
4.Closing balance 1,460,270,190.66 10,892,817,927.30 6,475,428,904.48 4,824,881,424.98 653,156,798.92 1,807,080,795.89 61,427,688.89 134,245,998.01 26,309,309,729.13
182
2020 Annual Report
Jingzhu
Office
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway equipment and Total
Expressway Expressway Guangzhu buildings equipment equipment
other
section
II. Accumulated
depreciation
1.Opening balance 1,460,270,190.66 4,494,205,215.58 3,233,900,466.28 2,841,639,585.51 404,319,093.80 1,062,403,571.32 49,538,185.49 78,507,134.13 13,624,783,442.77
2.Increased amount of the
539,758,748.04 337,731,036.15 153,324,878.57 28,686,206.44 177,723,828.53 3,143,306.74 8,179,629.68 1,248,547,634.15
period
（1）Withdrawal 539,758,748.04 337,731,036.15 153,324,878.57 28,686,206.44 177,723,828.53 3,143,306.74 8,179,629.68 1,248,547,634.15
3.Decreased amount of the
34,351,051.30 92,136.45 65,778,334.71 2,853,709.15 9,482,660.65 112,557,892.26
period
（1）Disposal or scrap 34,351,051.30 92,136.45 65,778,334.71 2,853,709.15 9,482,660.65 112,557,892.26
4.Closing balance 1,460,270,190.66 4,999,612,912.32 3,571,631,502.43 2,994,964,464.08 432,913,163.79 1,174,349,065.14 49,827,783.08 77,204,103.16 14,760,773,184.66
II. Accumulated
depreciation
1.Opening balance 6,638,789.88 599,405.96 7,238,195.84
2.Increased amount of the
1,231,918.94 1,231,918.94
period
（1）Withdrawal 1,231,918.94 1,231,918.94
183
2020 Annual Report
Jingzhu
Office
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway equipment and Total
Expressway Expressway Guangzhu buildings equipment equipment
other
section
3.Decreased amount of the
period
（1）Disposal or scrap
4.Closing balance 7,870,708.82 599,405.96 8,470,114.78
IV. Book value
1.Closing book value 5,893,205,014.98 2,903,797,402.05 1,829,916,960.90 220,243,635.13 624,861,021.93 11,599,905.81 56,442,488.89 11,540,066,429.69
2.Opening book 6,440,853,394.08 3,241,528,438.20 1,974,517,030.94 247,219,209.12 512,675,689.80 12,935,256.24 30,459,451.28 12,460,188,469.66
184
2020 Annual Report
⑵Temporarily idle fixed assets
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
House and
6,014,243.63 4,047,283.20 1,966,960.43
buildings
Total 6,014,243.63 4,047,283.20 1,966,960.43
⑶Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Transportation and other ancillary Transportation and other ancillary
153,886,038.13
facilities facilities，Not accreditation.
（4）liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Transportation equipment 9,500.00
Total 9,500.00
13. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 340,611,095.47 241,274,698.97
Total 340,611,095.47 241,274,698.97
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Bridge Deck
Treatment
Project of 117,493,329.30 117,493,329.30 67,204,790.39 67,204,790.39
Dachong
Viaduct
Pavement
105,958,479.27 105,958,479.27 46,573,355.85 46,573,355.85
Treatment
185
2020 Annual Report
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Project
Gualuhu
Interchange 52,045,974.12 52,045,974.12 338,747.00 338,747.00
project
Reconstruction
and Expansion
29,547,232.58 29,547,232.58 15,943,015.38 15,943,015.38
of Sanbao to
Shuikou
Odd project 35,566,080.20 35,566,080.20 40,110,826.35 40,110,826.35
Bridge
Drainage
Improvement
Project Across 71,103,964.00 71,103,964.00
Centralized
Drinking Water
Sources
Total 340,611,095.47 340,611,095.47 241,274,698.97 241,274,698.97
186
2020 Annual Report
(2) Changes of significant construction in progress
In RMB
Including:
Capitali Sourc
Projec capitalization
Capitalization zation e
Opening Transferred to Other Proportio t of
Name of project Budget Increase End balance of of of
balance fixed assets decrease n% proces interest
interest interest fundi
s this
rate (%) ng
period
Reconstruction and
Expansion of 3,426,206,700.00 15,943,015.38 13,604,217.20 29,547,232.58 75.76% 82.29 72,779,504.82 Other
Sanbao to Shuikou
Bridge Drainage
Improvement
Project Across
295,867,737.02 71,103,964.00 204,100,412.74 275,204,376.74 93.02% 100.00 Other
Centralized
Drinking Water
Sources
Gualuhu
197,520,000.00 338,747.00 51,707,227.12 52,045,974.12 26.35% 26.35 Other
Interchange project
Pavement
186,000,000.00 46,573,355.85 59,385,123.42 105,958,479.27 56.97% 56.97 2,301,824.65 2,301,824.65 4.25% Other
Treatment Project
Bridge Deck
Treatment Project
123,000,000.00 67,204,790.39 50,288,538.91 117,493,329.30 95.52% 95.52 3,953,599.55 3,953,599.55 4.25% Other
of Dachong
Viaduct
Total 4,228,594,437.02 201,163,872.62 379,085,519.39 275,204,376.74 305,045,015.27 -- -- 79,034,929.02 6,255,424.20 --
187
2020 Annual Report
(3)Provision for impairment of construction projects in the current period
None
188
2020 Annual Report
14. Intangible assets
(1) List of intangible assets
In RMB
Items Land use right Software Toll road franchises Total
I. Original price
1.Opening balance 1,311,658.00 39,920,855.16 41,232,513.16
2.Increased amount of the
1,636,467.03 318,348,741.86 319,985,208.89
period
(1) Purchase 929,667.03 929,667.03
(2)Internal Development
(3)Increased of Enterprise
Combination
（4）Other 706,800.00 318,348,741.86 319,055,541.86
3.Decreased amount of the
1,645,037.00 1,645,037.00
period
（1）Disposal 1,645,037.00 1,645,037.00
4.Closing balance 1,311,658.00 39,912,285.19 318,348,741.86 359,572,685.05
II.Accumulated amortization
1.Opening balance 1,311,658.00 31,158,815.64 32,470,473.64
2.Increased amount of the
2,944,945.74 23,420,946.15 26,365,891.89
period
(1) Withdrawal 2,944,945.74 23,420,946.15 26,365,891.89
3.Decreased amount of the
1,645,037.00 1,645,037.00
period
（1）Disposal 1,645,037.00 1,645,037.00
4.Closing balance 1,311,658.00 32,458,724.38 23,420,946.15 57,191,328.53
III. Impairment provision
189
2020 Annual Report
Items Land use right Software Toll road franchises Total
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 7,453,560.81 294,927,795.71 302,381,356.52
2.Opening book value 8,762,039.52 8,762,039.52
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets
Note: According to the relevant government documents, the company included the relevant operating
expenses incurred during the epidemic prevention and control period from February 17, 2020 to May 5, 2020 into
intangible assets-book value of toll road franchise, and began to accrue and amortize the remaining operating
period in May 2020 according to the traffic flow method.
⑵Details of Land use right failed to accomplish certification of property
None
15. 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
1,114,764.44 107,017.44 1,007,747.00
plant
Prepaid business
tax and surcharges
2,805,000.00 350,625.00 2,454,375.00
before
replacement of
190
2020 Annual Report
business tax with
value-added tax
Total 3,919,764.44 457,642.44 3,462,122.00
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
8,705,572.16 2,176,393.04 7,238,195.84 1,809,548.96
provisions
Deductible loss 1,000,101,381.76 250,025,345.44 1,054,468,552.04 263,617,138.01
Amortization of
269,669,149.91 67,417,287.48 480,269,676.65 120,067,419.16
intangible assets
Deferred income 44,545,569.73 11,136,392.43
Total 1,323,021,673.56 330,755,418.39 1,541,976,424.53 385,494,106.13
(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 421,106,349.76 105,276,587.44 519,913,426.24 129,978,356.56
instruments
Deductible temporary
differences in the
1,124,772,402.32 281,193,100.58 1,195,775,134.08 298,943,783.52
formation of asset
impairment
Difference of
amortization method of 2,533,490.83 633,372.72
franchise of toll road
Total 1,548,412,242.91 387,103,060.74 1,715,688,560.32 428,922,140.08
（3）Details of unrecognized deferred tax assets
In RMB
191
2020 Annual Report
Items Balance in year-end Balance Year-beginning
Deductible loss 11,452,524.12 8,013,102.87
Assets impairment provisions 91,984,931.50 89,939,941.56
Cost of outstanding invoices 1,941,115.68
Total 103,437,455.62 99,894,160.11
（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
2020
2021
2022 1,133,109.04 1,133,109.04
2023 3,129,535.72 3,210,991.23
2024 3,618,779.07 3,669,002.60
2025 3,571,100.29
Total 11,452,524.12 8,013,102.87 --
17. Other Non-current assets
In RMB
Balance in year-end Balance Year-beginning
Book balance Provisio Book value Book balance Provisio Book value
Items n for n for
devaluat devaluati
ion on
21,946,578. 50,442,297
Prepaid fixed assets engineering fees 21,946,578.75 50,442,297.97
75 .97
Prepaid business tax 467,027.76 467,027.76 518,773.08 518,773.08
Less：Part due within 1 year(this
-51,745.32 -51,745.32 -51,745.32 -51,745.32
section VII-7)
22,361,861. 50,909,325
Total 22,361,861.19 50,909,325.73
19 .73
18. Short-term Borrowing
（1）Short-term Borrowing
In RMB
192
2020 Annual Report
Items Balance in year-end Unpaid/Uncarry over reason
Credit Borrowing 200,000,000.00
Interest accrued on short-term borrowing 192,500.00
Total 200,192,500.00
（2）Overdue short-term borrowings
None
19.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 252,654,968.64 246,906,431.07
1-2 years（including2 years） 44,097,234.36 14,937,937.96
2-3 years（including 3 years） 10,392,605.88 4,199,281.77
Over 3 years 62,628,533.83 102,263,947.61
Total 369,773,342.71 368,307,598.41
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Foshan Land and resources Bureau. 30,507,598.21 Unsettled
Guang Zhongjiang Expressway project
28,000,000.00 Unsettled
Management Dept
Guangzhou Tuzhiling
9,426,384.44 Unsettled
Computer technology Co., Ltd.
Heshan Land and resources Bureau 10,186,893.60 Unsettled
Guangdong Provincial Freeway Co.,Ltd. 8,746,491.18 Unsettled
Total 86,867,367.43 --
Other note：
20. Prepayment received
(1) List of Prepayment received
In RMB
193
2020 Annual Report
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 1,473,106.10 1,865,984.63
1-2 years（Including 2 years）
2-3 years（Including 3 years）
Over 3 years 9,835,901.31 10,951,499.43
Total 11,309,007.41 12,817,484.06
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/Uncarry over reason
Guangzhou Huanlong Expressway Co.,
7,961,163.14 Unsettled
Ltd.
Guanghdong Xinle Technology
1,427,700.65 Unsettled
Development Co., Ltd.
Total 9,388,863.79 --
（3）Settlement of outstanding projects resulting from final construction contracts
None
21.Contract liabilities
In RMB
Items Balance in year-end Balance Year-beginning
Payments received in advance 309,734.51 2,787,610.63
Less：Other non-current liabilities
Total 309,734.51 2,787,610.63
22. 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 15,173,142.46 420,274,135.08 418,721,079.41 16,726,198.13
II.Post-employment benefits - def
28,537,890.35 28,537,890.35
ined contribution plans
194
2020 Annual Report
III. Dismissal benefits 80,117.63 80,117.63
Total 15,173,142.46 448,892,143.06 447,339,087.39 16,726,198.13
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the Decrease in the
Year-end balance
balance current period current period
1.Wages, bonuses, allowances
642,463.49 315,741,784.41 315,919,184.41 465,063.49
and subsidies
2.Employee welfare 33,098,661.41 33,098,661.41
3. Social insurance premiums 21,778,259.66 21,778,259.66
Including ：Medical
13,057,047.19 13,057,047.19
insurance
Work injury insurance 26,725.04 26,725.04
Maternity insurance 2,427,076.20 2,427,076.20
Other 6,267,411.23 6,267,411.23
4.Public reserves for housing 37,421,150.00 37,421,150.00
5.Union funds and staff
13,216,025.40 10,494,429.86 9,131,476.16 14,578,979.10
education fee
8.Other 1,314,653.57 1,739,849.74 1,372,347.77 1,682,155.54
Total 15,173,142.46 420,274,135.08 418,721,079.41 16,726,198.13
（3）Defined contribution plans listed
In RMB
Balance Increase in this period Payable in this period Balance in year-end
Items
Year-beginning
1. Basic old-age
2,832,716.48 2,832,716.48
insurance premiums
2.Unemployment
87,937.45 87,937.45
insurance
3.Enterprise annuity
25,617,236.42 25,617,236.42
payment
Total 28,537,890.35 28,537,890.35
23. Tax Payable
In RMB
195
2020 Annual Report
Items Balance in year-end Balance Year-beginning
VAT 19,253,425.01 19,799,902.60
192,073,414.37 149,304,329.42
Enterprise Income tax
Individual Income tax 2,589,498.58 3,294,428.41
City Construction tax 1,270,608.27 1,384,098.16
Education subjoin 594,019.27 631,151.81
Locality Education subjoin 376,577.48 401,070.94
Land use tax
Property tax 45,461.47 17,061.15
Stamp tax 1,514,826.65 218,722.91
Construction costs for cultural
30,561.68 31,200.00
undertaking
Other 119,661.79
Total 217,748,392.78 175,201,627.19
24.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 22,262,804.39 20,020,119.31
Other account payable 1,490,356,555.39 454,669,434.95
Total 1,512,619,359.78 474,689,554.26
（1）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 22,262,804.39 20,020,119.31
Total 22,262,804.39 20,020,119.31
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 19,637,548.28yuan for more than a year in unpaid dividends to shareholders over the year w
as 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 informa
tion is incorrect, resulting in failure to pay a dividend or refund.
196
2020 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
M&A funds payable to Guanghui 21%
1,221,839,292.00
equity
Estimated project cost 147,443,692.67 305,588,291.39
Deposit, warranty and security deposit 82,529,159.41 88,113,871.73
Other 36,456,530.29 60,277,636.22
Temporary collection payable 2,087,881.02 686,335.61
Withheld and remitted payment 3,300.00
Total 1,490,356,555.39 454,669,434.95
(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
Poly Changda Highway Engineering Project Quality guarantees,constract
14,146,027.78
Co., Ltd. liquidated damages
Guangdong Guanyue Road & Bridge
6,967,006.70 Project Quality guarantee
Co., Ltd.
Guangdong Nengda High Grade Contract liquidated damages, Wage
3,420,026.10
Highway Maintenance Co., Ltd. margin for migrant workers
Dahao Municipal Construction Co., Ltd. 3,000,000.00 Project Quality guarantee
Total 40,032,509.06 --
25. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 203,536,200.00 765,445,000.00
Long-term payable due within 1 year 732,075.46 256,603.77
Interest payable due within 1 year 62,059,742.01 30,545,186.84
Total 266,328,017.47 796,246,790.61
197
2020 Annual Report
26.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Tax to be rewritten 648,581.64 1,246,636.74
Total 648,581.64 1,246,636.74
27. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 657,365,000.00 447,365,000.00
Guaranteed loan 375,000,000.00
Credit loan 4,523,610,000.00 4,869,095,000.00
Long-term loans due within one year -203,536,200.00 -765,445,000.00
Total 4,977,438,800.00 4,926,015,000.00
28.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1,426,488,336.65 678,124,972.89
Total 1,426,488,336.65 678,124,972.89
198
2020 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
Withdraw Overflow Pay in
Name of the The current Closing
Book value Issue date Period Issue amount Opening balance interest at discount current
bond issue balance
par amount period
19 Guangdong
ExpresswayMT 680,000,000.00 2019.2.27 2019.3.1-2024.3.1 680,000,000.00 678,124,972.89 -450,343.98 678,575,316.87
N001
20 Guangdong
ExpresswayMT 750,000,000.00 2020.3.13 2020.3.17-2025.3.17 750,000,000.00 750,000,000.00 2,086,980.22 747,913,019.78
N001
1,426,488,336.
Total -- -- -- 1,430,000,000.00 678,124,972.89 750,000,000.00 1,636,636.24
65
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
29. Long-term payable
In RMB
199
2020 Annual Report
Items Balance year-end Year-beginning balance
Long-term payable 40,406,172.37 39,369,379.91
Total 40,406,172.37 39,369,379.91
(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 3,116,037.72 1,603,773.5
Less：Part due within 1 year 732,075.46 256,603.77
30. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
58,351,800.00 13,806,230.36 44,545,569.64
subsidy
Rental income 51,000,000.00 6,375,000.00 44,625,000.00
Total 51,000,000.00 58,351,800.00 20,181,230.36 89,170,569.64 --
Details of government subsidies：
In RMB
Amount Amount of Asset-related
Beginni New subsidy Other income Other
transferred to cost deducted or
Items ng of in current recorded in the chang End of term
non-operationa in the current income-relate
term period current period es
l income period d
Cancellation of
Expressway Related to
55,851,800.00 11,306,230.36 44,545,569.64
Provincial Toll assets
Station Project
Financial Related to
2,500,000.00 2,500,000.00
discount income
200
2020 Annual Report
31. Stock capital
In RMB
Changed（+，-）
Balance Balance in
Issuance of Bonus Capitalizatio
Year-beginning Other Subtotal year-end
new share shares n of public
reserve
Total of
2,090,806,126.00 2,090,806,126.00
capital shares
32. Capital reserves
In RMB
Items Year-beginning Increase in Decrease in the Year-end balance
balance the current current period
period
Share premium 3,002,260,722.99 2,493,549,576.00 508,711,146.99
(1) Capital invested by investors 2,508,408,342.99 2,508,408,342.99
(2) Influence of business combination under the
493,852,380.00 2,493,549,576.00 -1,999,697,196.00
same control
Other capital reserves 91,756,406.32 45,501,657.17 137,258,063.49
(1) Changes in other equity of the investee under 69,072.17 525,074.49
456,002.32
the equity accounting
（2）Other 91,300,404.00 45,432,585.00 136,732,989.00
Total 3,094,017,129.31 45,501,657.17 2,493,549,576.00 645,969,210.48
- The situation of change in the current capital reserve is as follows:
① The reduction of capital reserve-equity premium in this period is due to the merger of Guangdong
Guanghui Expressway Co., Ltd. under the same control, which reduces capital reserve by RMB 2,493,549,576.00.
② The increase of capital reserve-others in this period is mainly due to the agreement signed by Guanghui
and Zengcheng District People's Government to add interchange on Zengcheng Section of Guanghui Expressway,
which stipulates that Guanghui will build Shaning Road Interchange and Xincheng Avenue Interchange, and all
expenses incurred in building interchange will be borne by Zengcheng District People's Government. After the
project is completed, it will be managed by Guanghui. A total of RMB 179,020,400.00 was received from
Zengcheng District Government at the beginning of the period, of which the opening balance of capital reserve
201
2020 Annual Report
attributable to the parent company-other capital reserve was RMB 91,300,404.00, and RMB 89,083,500.00 was
newly received in this period, of which capital reserve attributable to the parent company-other capital reserve
increased by RMB 45,432,585.00 in this period.
202
2020 Annual Report
33. Other comprehensive income
In RMB
Amount of current period
Less：Amount
transferred into
Less：Prior period After-ta
profit and loss
included in other x
in the current
Year-beginning Amount composite After-tax attribute attribute
Items period that Less：Income Year-end balance
balance incurred before income transfer to the parent to
recognied into tax expenses
income tax to retained company minority
other
income in the sharehol
comprehensive
current period der
income in prior
period
1.Other comprehensive income will be
389,935,069.68 -98,807,076.48 -24,701,769.12 -74,105,307.36 315,829,762.32
reclassified into income or loss in the future
Changes in fair value of investments in
389,935,069.68 -98,807,076.48 -24,701,769.12 -74,105,307.36 315,829,762.32
other equity instruments
2.Other comprehensive income
reclassifiable to profit or loss in subsequent -7,741,724.78 -5,192,159.89 -5,192,159.89 -12,933,884.67
periods
Including：Share of other comprehensive
income of the investee that cannot be
-7,741,724.78 -5,192,159.89 -5,192,159.89 -12,933,884.67
transferred to profit or loss accounted for
using the equity method
Total of other comprehensive income 382,193,344.90 -103,999,236.37 -24,701,769.12 -79,297,467.25 302,895,877.65
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:
203
2020 Annual Report
34. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1,074,553,052.81 93,232,912.82 1,167,785,965.63
reserve
Total 1,074,553,052.81 93,232,912.82 1,167,785,965.63
35. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last
3,915,790,810.76 3,938,609,136.59
period end
Adjust the total undistributed profits at the
7,497,215.29
beginning of the period
After adjustments: Retained profits at the period
3,915,790,810.76 3,946,106,351.88
beginning
Add：Net profit belonging to the owner of the
867,842,774.78 1,469,187,067.83
parent company
Less: Statutory surplus reserve 93,232,912.82 135,022,507.55
Common stock dividend payable 882,320,185.17 1,175,033,042.81
Other（Note） 82,401,168.20 189,447,058.59
Retained profit at the end of this term 3,725,679,319.35 3,915,790,810.76
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 .
204
2020 Annual Report
Note: Other items are the dividends corresponding to the 21% equity of this major asset restructuring transaction
distributed by Guangdong Guanghui Expressway Co., Ltd. to the shareholder Guangdong Provincial Freeway Co.,Ltd..
as stated in "VIII. Changes in the Scope of Consolidation 1. Business Combination under the Same Control"
during the reporting period.
36.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 3,722,365,693.29 1,633,666,936.51 4,929,198,882.32 1,891,514,552.64
Other operation 67,983,182.97 28,556,759.62 69,817,884.42 32,963,381.26
Total 3,790,348,876.26 1,662,223,696.13 4,999,016,766.74 1,924,477,933.90
Whether the net profit before and after deducting non-recurring gains and losses is negative after audit
□ Yes √ No
37. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 7,512,714.60 9,899,795.27
Education surcharge 3,578,509.64 4,705,324.22
Property tax 5,212,158.72 3,635,796.50
Land use tax 1,830,767.01 2,607,625.78
Vehicle use tax 77,663.79 71,398.77
Stamp tax 2,310,400.84 756,487.51
Business tax 370,495.32 370,495.32
Locality Education surcharge 2,379,608.64 3,130,192.25
Construction of cultural undertakings 84,510.00
Other 129,610.93 143,742.01
Total 23,401,929.49 25,405,367.63
38. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 141,324,125.20 149,431,400.61
Depreciation and Amortization 9,870,249.16 11,781,051.98
205
2020 Annual Report
Items Amount of this period Amount of last period
Intangible assets amortization 2,368,807.27 2,397,249.26
Low consumables amortization 1,316,594.00 1,747,119.88
Rental fee 9,351,373.71 11,677,765.22
Office expenses 7,437,025.62 7,837,930.83
Travel expenses 573,930.76 1,324,609.53
Consultation expenses 2,595,902.63 3,290,750.94
The fee for hiring agency 7,179,452.28 5,558,915.38
Listing fee 864,123.92 869,876.63
Information cost and maintenance fee 2,830,419.98 2,674,063.40
Other 18,233,115.05 20,323,921.14
Total 203,945,119.58 218,914,654.80
39.R& D expenses
In RMB
Items Amount of this period Amount of last period
Wags 315,808.12
Materials expenses 88,495.58
Total 404,303.70
Other note：
40.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 264,407,174.38 257,098,768.09
Deposit interest income（-） -50,618,519.70 -39,377,414.30
Exchange Income and loss（Gain-） -1,815,160.91 1,590,432.88
Bank commission charge 881,757.74 1,077,195.61
Other 3,327,123.37 3,788,234.38
Total 216,182,374.88 224,177,216.66
41.Other gains
In RMB
206
2020 Annual Report
Amount of this Amount of last Related to assets/
Items
period period Related to income
Government subsidy- Cancellation of Expressway
11,306,230.36 Related to assets
Provincial Toll Station Project
Government subsidy- Stable job subsidies 516,603.84 Related to income
Maternity allowance 440,077.14 642,489.29 Related to income
Veterans' VAT reduction and exemption 326,184.25 Related to income
Withholding and remitting enterprise prepaid income tax Related to income
195,477.50 414,891.18
fees
Input tax plus deduction 34,836.75 19,409.20 Related to income
Withholding and remitting enterprise prepaid income tax Related to income
575,813.38
fees
Enterprise incentive subsidy funds 66,000.00 Related to income
Enterprise office space rental subsidy 21,937.00 Related to income
42. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
114,517,784.14 168,708,231.04
method
Dividends earned during the holding period on
50,785,213.04 38,912,399.15
investments in other equity instrument
Interest income on entrusted loans 6,063,838.37 7,144,413.37
Total 171,366,835.55 214,765,043.56
43. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on accounts
-2,360,980.71 -176,000.73
receivable
Impairment losses on other receivable -96,827.80 -12,983.19
Total -2,457,808.51 -188,983.92
44. Asset impairment loss
In RMB
207
2020 Annual Report
Items Amount of this period Amount of last period
Loss on impairment of fixed assets -1,231,918.94 -7,238,195.84
Total -1,231,918.94 -7,238,195.84
45.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Non-current assets disposal gains 276,051.47
Including：Income from disposal of
276,051.47
Fixed assets
Income from disposal of
Intangible assets
Income from disposal of
18,755,848.99
Intellectual property right
Total 19,031,900.46
46. 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
Insurance claim income 3,538,886.07 3,028,261.81 3,538,886.07
Road property claim income 2,858,053.10 2,772,329.53 2,858,053.10
Relocation compensation
3,353,085.30 3,353,085.30
income
Compensation for
construction land and ground 1,210,712.86 2,292,510.28 1,210,712.86
attachments
Other 789,104.03 738,999.09 789,104.03
Total 11,749,841.36 8,832,100.71 11,749,841.36
47. Non-Operation expense
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Road rehabilitation
5,167,239.28 4,310,540.20 5,167,239.28
expenditure
208
2020 Annual Report
Loss & abandonment of
13,637,658.30 11,690,361.16 13,637,658.30
non-current assets
Fine 711,701.58 2,216.57 711,701.58
Relocation compensation
405,100.00 1,595,684.00 405,100.00
income
Other 721,233.61 156,751.69 721,233.61
Total 20,642,932.77 17,755,553.62 20,642,932.77
48. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 453,788,495.42 639,863,876.23
Deferred income tax expense 37,621,377.52 33,921,146.57
Total 491,409,872.94 673,785,022.80
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 1,855,794,879.01
Current income tax expense accounted by tax and relevant
463,948,719.75
regulations
Influence of income tax before adjustment -62,313.43
Influence of non taxable income -41,215,585.54
Impact of non-deductible costs, expenses and losses 14,846,139.47
The current period does not affect the deferred tax assets
1,342,110.41
recognized deductible temporary differences or deductible loss
Other 52,550,802.28
Income tax expense 491,409,872.94
49.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
209
2020 Annual Report
Items Amount of current period Amount of previous period
Interest income 50,618,519.70 39,377,414.30
Unit current account 75,997,867.92 64,183,369.36
Net toll income received by networked toll
2,387,993.96
clearing
Cancellation of Expressway Provincial Toll
55,851,800.00
Station Project
Total 184,856,181.58 103,560,783.66
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 47,721,287.38 54,682,646.22
Unit current account 37,898,902.95 14,791,928.56
Net toll income received by networked toll
10,709,945.42
clearing
Total 85,620,190.33 80,184,520.20
Note：
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
89,083,500.00 85,985,000.00
subsidies
Total 89,083,500.00 85,985,000.00
(4).Cash paid related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Issuance fee of medium-term notes 1,122,177.00 791,384.00
Purchase of 21% equity consideration of
1,271,710,284.00
Guanghui
Total 1,272,832,461.00 791,384.00
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2020 Annual Report
50. 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 1,364,385,006.07 2,151,443,422.35
Add:Credit loss provision 2,457,808.51 188,983.92
: Impairment loss provision of assets 1,231,918.94 7,238,195.84
Depreciation of fixed assets, oil and gas assets and
1,009,578,943.06 1,207,510,097.27
consumable biological assets
Depreciation of Use right assets
Amortization of intangible assets 26,319,338.62 3,149,424.55
Amortization of Long-term deferred expenses 457,642.44 457,642.44
Loss on disposal of fixed assets, intangible assets and other
-19,031,900.46
long-term deferred assets
Fixed assets scrap loss 13,637,658.30 11,690,361.16
Loss on fair value changes
Financial cost 265,092,013.47 266,483,287.67
Loss on investment -171,366,835.55 -214,765,043.56
Decrease of deferred income tax assets 54,738,687.74 61,990,928.66
Increased of deferred income tax liabilities -41,819,079.34 -28,069,782.09
Decrease of inventories 57,922.16 -30,665.31
Decease of operating receivables 136,745,935.47 -15,041,345.19
Increased of operating Payable -25,329,718.84 -210,532,420.20
Other
Net cash flows arising from operating activities 2,636,187,241.05 3,222,681,187.05
II. Significant investment and financing activities that without cash
-- --
flows:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
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2020 Annual Report
Supplement Information Amount of current period Amount of previous period
Financing of fixed assets leased
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 2,846,176,803.89 3,052,977,164.15
Less: Beginning balance of cash equivalents 3,052,977,164.15 2,744,843,796.86
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent -206,800,360.26 308,133,367.29
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
2,846,176,803.89 3,052,977,164.15
Cash
54,482.68 75,833.29
Of which: Cash in stock
Bank savings could be used at any time 2,845,600,152.23 3,051,662,845.33
Other monetary capital could be used at
522,168.98 1,238,485.53
any time
Balance of cash and cash equivalents at
2,846,176,803.89 3,052,977,164.15
the period end
Other note：
51. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the period Restricted reason
Land reclamation funds in the fund
Monetary fund 1,221,200.00
escrow account
Total 1,221,200.00 --
Other：
As of December 31, 2020, the Company's subsidiary Jingzhu Expressway Guangzhu Section Co., Ltd
borrowed 657,365,000.00 yuan from Wuyang Sub-branch of Industrial and Commercial Bank of China (including
75,170,000.00 yuan in non-current liabilities due within one year and 582,195,000.00 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 Guangzhu section of Jingzhu Expressway and the revenue generated by owning such right).
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2020 Annual Report
VIII. Changes of merge scope
1. Business combination under the same control
(1) Business Combination under the same control during the reporting period
In RMB
Net profit from
Recogniti Income from the
Forming the basis the reporting
on basis period-begin to Income during Net profit during
Proportion of for merger of period to the
Name Combination date of the combination the period of the period of
stock rights enterprises under combination
Combina date of the comparison comparison
the same control date of the
tion date combination
combination
Acquisiti
Guangdong Guanghui Under the control
51.00% December 31,2020 on of 1,616,980,738.55 780,305,035.07 1,943,745,753.48 1,002,651,683.59
Expressway Co., Ltd. of the same party
control
Other note：
（2）Combined cost
In RMB
Combined cost Guangdong Guanghui Expressway Co., Ltd.
--Cash 2,493,549,576.00
213
2020 Annual Report
（3）The book value of the assets and liabilities of the merged party on the date of consolidation
In RMB
Guangdong Guanghui Expressway Co., Ltd.
Combination date Last closing period
Monetary funds 1,006,493,048.13 236,277,469.65
Account receivable 59,804,115.72 57,890,140.44
Fixed assets 3,271,321,898.32 3,534,487,996.01
Loans 5,590,000.00 285,590,000.00
Account payable 135,706,707.74 79,235,904.15
Payable to employees 308,597.50 350,617.76
Net assets 3,971,913,931.56 3,494,911,911.72
Less： Minority shareholders' rights 1,946,237,826.46 1,712,506,836.74
Net assets acquired 2,025,676,105.10 1,782,405,074.98
Contingent liabilities of the combined party undertaken in combination：None
2. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant
information:
Original subsidiary name Place of Business Sharehold Proportion of Reasons for not
registration nature ing ratio voting rights becoming a subsidiary
(%) entitled to in this year
(%)
Guangzhou Guangzhu Transportation Guangzhou Investment 100.00 100.00 Consolidation by
Investment Management Co., Ltd Management combination
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding Ratio
Registra
Main Places Nature of (%)
Name of Subsidiary tion Obtaining Method
of Operation Business Indirectl
Place Directly
y
Guangz Expressway Under the same
Guangfo Expressway Co., Ltd. Guangzhou 75.00%
Management control business
hou
214
2020 Annual Report
Investment in
Guangdong Expressway technical
Guangz
Technology Investment Co., Guangzhou industries and 100.00% Investment
Ltd. hou
provision of
relevant
Under the same
Guangdong Guanghui Guangz Investment
Guangzhou 51.00% control business
Expressway Co., Ltd.
hou management
combination
Under the same
Jingzhu Expressway Guangzhu Guangz Expressway
Zhongshan 75.00% control business
Section Co.,Ltd. hou Management
combination
Yuegao Capital Investment
Guangzhou Zhuhai 100.00% Investment
Investment(Hengqin)Co., Ltd. management
Notes: holding proportion in subsidiary different from voting proportion: None
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee: None
Significant structure entities and controlling basis in the scope of combination: None
Basis of determine whether the Company is the agent or the principal: None
(2) Important Non-wholly-owned Subsidiary
In RMB
Profit or Loss
Shareholdin Dividends Equity Balance of
Owned by the
g Ratio of Distributed to the the Minority
Minority
Name of Subsidiary Minority Minority Shareholders in
Shareholders in
Shareholder Shareholders in the the End of the
the Current
s (%) Current Period Period
Period
Guangfo Expressway Co., Ltd. 25.00% 38,758,062.16 61,436,760.63 115,101,373.29
Guangdong Guanghui Expressway Co., Ltd. 49.00% 382,349,467.18 192,269,392.46 1,946,237,826.46
Jingzhu Expressway Guangzhu Section Co.,Ltd. 25.00% 75,434,701.95 126,983,792.91 237,840,885.42
Holding proportion of minority shareholder in subsidiary different from voting proportion
None
215
2020 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Name of Year-end balance Year-beginning balance
Subsidia Current Non- current Current Non- current Current Non- current Current Non- current
Total assets Total liabilities Total assets Total liabilities
ry assets assets Liabilities liabilities assets assets Liabilities liabilities
Guangfo
Express 475,293 67,267,992.5 560,965,221. 608,138,986.4 57,018,699.4
55,900,968.26 531,194,012.93 3,520,527.29 70,788,519.79 47,173,764.91 57,018,699.42
way Co., ,044.67 0 56 7 2
Ltd.
Guangdo
ng
Guanghu 1,066,4
3,451,858,995. 4,518,271,534. 305,774,405. 240,583,197. 546,357,603.2 676,184,932. 3,551,837,539. 4,228,022,472. 206,052,396. 527,058,163.7 733,110,560.4
i 12,539.
85 85 46 83 9 27 85 12 61 9 0
Express 00
way Co.,
Ltd.
Jingzhu
Express
way 118,177, 2,272,633,604. 2,390,811,046. 470,629,108. 968,818,396. 1,439,447,504. 301,043,906. 2,257,506,902. 2,558,550,808. 377,916,598. 1,023,074,304. 1,400,990,903.
Guangzh 442.22 38 60 30 62 92 12 82 94 72 71 43
u Section
Co.,Ltd.
In RMB
Amount of current period Amount of previous period
Name Total Cash flows from Total Cash flows from
Business income Net profit Business income Net profit
Comprehensive operating Comprehensive operating
216
2020 Annual Report
income activities income activities
Guangfo Expressway Co.,
333,647,719.92 155,032,248.63 155,032,248.63 188,091,317.89 475,502,565.03 250,762,288.30 250,762,288.30 244,313,182.32
Ltd.
Guangdong Guanghui
1,616,980,738.55 780,305,035.07 780,305,035.07 1,173,180,438.28 1,943,745,753.48 1,002,651,683.59 1,002,651,683.59 1,234,129,289.22
Expressway Co., Ltd.
Jingzhu Expressway
812,354,042.82 301,738,807.80 301,738,807.80 542,082,484.05 1,218,734,018.60 513,065,829.93 513,065,829.93 772,968,519.31
Guangzhu Section Co.,Ltd.
Other note：
217
2020 Annual Report
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Significant joint venture arrangement or associated enterprise
None
（2）Affect of the transaction on the minority equity and owner's equity attributable to the parent company
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting
treatment of the
Main
Registration investment of joint
Name operating Business nature Indirectl
place Directly venture or
place y
associated
enterprise
Zhaoqing, Zhaoqing, Expressway
Zhaoqing Yuezhao Highway Co., Ltd. 25.00% Equity method
Management
Guangdong Guangdong
Shenzhen Shenzhen Expressway
Shenzhen Huiyan Expressway Co., Ltd. 33.33% Equity method
Guangdong Guangdong Management
Guangzhou,
Guangdong Jiangzhong Expressway Co., Zhongshan , Expressway
Guangdon 15.00% Equity method
Ltd. Guangdong Management
g
Gangzhou, Gangzhou, Expressway
Ganzhou kangda Expressway Co., Ltd. 30.00% Equity method
Jiangxi Jiangxi Management
Gangzhou, Gangzhou, Expressway
Ganzhou Gankang Expressway Co., Ltd. 30.00% Equity method
Jiangxi Jiangxi Management
Guangdong Yueke Technology Petty Guangzhou, Guangzhou, Hande all kinds
20.00% Equity method
Loan Co., Ltd. Guangdong Guangdong of small loans
Hefei, Hefei, Security
Guangyuan Securities Co., Ltd. 2.37% Equity method
Anhui Anhui business
Research and
Hunan Lianzhi Technology Co., Ltd. Changsha Changsha experimental 10.10% Equity method
development
218
2020 Annual Report
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
None
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Guangdong, Jiangzhong Expressway Co., Ltd., Guangyuan Securities Co., Ltd..and Hunan Lianzhi Technology Co.,
Ltd. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and ope
rating decisions, and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
None
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Guoyuan Securities Co., Ltd. Guoyuan Securities Co., Ltd.
Current assets 57,918,624,287.41
Non-current assets 26,015,472,537.63
Total assets 90,751,959,774.27 83,934,096,825.04
Current liabilities 46,206,352,399.19
Non-current Liabilities 12,890,023,021.47
Total liabilities 59,096,375,420.66
Minority Shareholders’ Equity 11,785,075.26
Shareholders’ equity attributable to
30,860,056,478.72 24,825,936,329.12
shareholders of the parent
Pro rata share of the net assets calculated 731,815,047.62 587,200,989.50
--Goodwill 207,095,632.54 206,725,818.02
The book value of equity investments in
938,910,680.16 793,926,807.52
joint ventures
Fair value of equity investment of
associated enterprises with open 927,203,934.72 737,910,410.22
quotation
Buinsess incme 4,579,605,087.78 3,302,720,958.61
Net profit 917,476,547.45
Other comprehensive income 95,017,342.59
Total comprehensive income 1,012,493,890.04
219
2020 Annual Report
Dividends received from associates duri
11,940,297.90 19,900,496.50
ng the year
Other note
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Joint venture： -- --
Total amount of the pro rata calculation of
-- --
the following items
Associated enterprise： -- --
Total book value of the investment 1,443,470,485.44 1,413,339,517.32
Total amount of the pro rata calculation of
-- --
the following--Net profit ms
-Nit profit 82,311,895.95 147,340,576.39
--Total comprehensive income 82,311,895.95 147,340,576.39
Note
As the book value of the long-term equity investment in the associated enterprises and joint ventures except
those listed in (2) and (3) in the current period and in 2018 and 2019 is not higher than 5% of the total owner's
equity attributable to the parent company, the Company considers that all associated enterprises and joint ventures
except the important associated enterprises and joint ventures listed in (2) and (3) are non-important associated
enterprises and joint ventures.
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
220
2020 Annual Report
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
X. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.
(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 27). 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, 2020, 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
221
2020 Annual Report
the Company's credit risk has been greatly reduced.
The Group's working capital is deposited in banks with higher credit rating, so the credit risk of working
capital is relatively low.
Financial assets overdue or impaired;
(1) Aging analysis of financial assets with overdue impairment: Not existed
(2) Analysis of financial assets that have suffered single impairment: Refer to " 4 and Other Receivables" in
10, Investment in Other Equity Instruments" in VII of this section for details.
3.Liquidity risk
When managing liquidity risks, the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fir value Fir value Fir value
Items
measurement items measurement items measurement Total
at level 1 at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
（3）Other equity instrument investment 938,667,226.56 748,348,301.73 1,687,015,528.29
Total assets continuously measured at
938,667,226.56 748,348,301.73 1,687,015,528.29
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, 2020 of 3.99 yuan, the final calculation of fair value was
938,667,226.56 yuan.
3. Fair value of financial assets and liabilities not measured at fair value
The valuation techniques adopted and the qualitative and quantitative information of important parameters for
continuous and non-continuous level 3 fair value measurement items
Items Fair value as of December 31, Valuation technology Unobservable input
2020 value
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2020 Annual Report
Investment in equity
instruments
Unlisted equity 748,348,301.73 Discounted method of future Discount rate
investment cash flow
Due to the lack of recent information on the fair value of some other equity instruments, and no significant
change in the operation of the invested company, the Company takes the cost as its fair value estimate.
4. Fair value of financial assets and liabilities not measured at fair value
The Company's financial assets and liabilities measured in amortized cost mainly include: accounts
receivable, other receivables, contract assets, short-term loans, accounts payable, other payables, non-current
liabilities due within one year, long-term loans, bonds payable and long-term payables.
There is no significant difference between the book value of financial assets and liabilities not measured at
fair value and the fair value.
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
Redistricted company of the company of the
Name Registered address Nature
capital Company's Company’s vote
shareholding ratio ratio
Equity
management,
Guangdong traffic
communication Guangzhou infrastructure 26.8 billion yuan 24.56% 50.12%
Group Co., Ltd construction and
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, 2020,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
223
2020 Annual Report
Guangdong Provincial People's Government.
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see IX(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the IX-3, Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relation with the Company
Shenzhen Huiyan Expressway Co., Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co., Ltd. Associated enterprises of the Company
Ganzhou Kangda Expressway Co., Ltd. Associated enterprises of the Company
Ganzhou Gankang Expressway Co., Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co., Ltd. Associated enterprises of the Company
Guangdong Yueke Technology Petty Loan Co., Ltd. Associated enterprises of the Company
Hunan Lianke Technology Co., Ltd. Associated enterprises of the Company
4. Other Related parties
Name Relation with the Company
Guangdong Boda Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Chaohui Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co., Ltd.
Guangdong Gaoda Property Development Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Gaoen Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangfozhao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangle Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Guangzhu West Line Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Humen Bridge Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu Traffic Technology Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Jiaotong Testing Co., Ltd Fully owned subsidiary of the parent company
Guangdong Traffic Industry Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
224
2020 Annual Report
Name Relation with the Company
Guangdong Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Information technology
Fully owned subsidiary of the parent company
Co., ltd.
Guangdong Union Electron Service Co., ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co., ltd. Fully owned subsidiary of the parent company
Guangdong Provincial Freeway Co.,Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Group Finance Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Read & Bridge Construction Development Co.,
Fully owned subsidiary of the parent company
Ltd.
Guangdong Taishan Coastal Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co., Ltd Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yuedong Expressway Industry Development Co.,
Fully owned subsidiary of the parent company
Ltd.(Cancelled)
Guangdong Yuegan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangshenzhu Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Traffic Technology Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Humen Bridge Co., Ltd. Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Tianlu New Energy Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Planning & Design Institute Co.,
Shares of parent company
Ltd.
Guangzhongjiang Expressway Project Management Dept Managed by the parent company
225
2020 Annual Report
Name Relation with the Company
Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company
Guangzhou Aitesi Communication equipment Co., Ltd. Shares of enterprised controlled by the same parent company
Jiangmen Jianghe Expressway Co., Ltd. Shares of enterprised controlled by the same parent company
Guangdong Shenshan Expressway Co., Ltd. Shares of enterprised controlled by the same parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co.,
Shares of enterprised controlled by the same parent company
Ltd.
Foshan Guangshan Expressway Co., Ltd. Shares of enterprised controlled by the same parent company
Guangdong Feida Traffic Engineering Co., Ltd. Shares of enterprised controlled by the same parent company
Poly Changda Engineering Co., Ltd. Shares of parent company
Guangdong Changda Road Conservation Co., Ltd. A subsidiary Shares of parent company
Guangdong Road Network Digital Media Information
Fully owned subsidiary of the parent company
Technology Co. Ltd
Guangdong Xiangfei Highway Engineering Supervision Co.,
Fully owned subsidiary of the parent company
Ltd
Guangdong Jiangzhao Expressway Management Center Fully owned subsidiary of the parent company
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Amount of Amount
Over the
Content of related current period of trading Amount of last
Related parties
transaction limit or period
previous not?
period
1.Business cost
Boly Changda Engineering Co.,
Project fund, service 43,663,945.00 43,216,399.22
Ltd.
Guangdong Lulutong Co., Ltd. Project funds 36,627,747.85 6,465,863.46
Guangdong Union electronic
Service 22,140,969.83 27,828,355.00
services co., Ltd.
Guangdong Xinyue Asphalt Co.,
Purchase 13,627,554.77 423,213.90
Ltd.
Guangdong Jiaoke Testing Co., Project 10,948,746.94 6,007,217.92
226
2020 Annual Report
Amount of Amount
Over the
Content of related current period of trading Amount of last
Related parties
transaction limit or period
previous not?
period
Ltd.
Guangdong Communication
Planning & Design Institute Co., Project labour service 8,136,858.45 1,612,868.00
Ltd.
Guangdong Feida Traffic
Maintenance 7,314,621.02 3,807,139.23
Engineering Co., Ltd.
Guangdong Xinyue traffic
Maintenance Project 5,947,406.32 3,020,562.88
Investment Co., Ltd.
Guangdong Hualu Traffic
Project 4,869,113.63 2,832,988.81
Technology Co., Ltd.
Guangzhou Aitesi Communication
Project 1,771,681.42
Equipment Co., Ltd.
Guangdong Litong Technology
Maintenance 1,424,414.80 5,285,628.86
Investment Co., Ltd.
Guangdong Tongyi Expressway
Service 604,826.78 225,055.47
Service Area Co., Ltd
Guangdong Humen Bridge Co.,
Service 528,929.83 1,047,385.24
Ltd.
Guangdong East Thinking
Management Technology Maintenance，Service 282,800.00 105,850.00
Development Co., Ltd.
Guangdong Expressway Media
Advertising 128,431.80
Co., Ltd.
Guangdong Jingzhu Expressway
Service 107,017.44 107,017.44
Guangzhu North Section Co., Ltd.
Guangzhou Xinyue Traffic
Project 3,377,412.00
Technology Co., Ltd.
Subtotal 158,125,065.88 105,362,957.43
2.Financial cost
Guangdong Communication Group Borrowing Interest
2,240,000.00
Finance Co., Ltd. expresses
Guangdong Jiangzhong Principal Loan Interest 1,432,890.00 1,428,975.00
227
2020 Annual Report
Amount of Amount
Over the
Content of related current period of trading Amount of last
Related parties
transaction limit or period
previous not?
period
Expressway Co., Ltd. Expenditure
Subtotal 3,672,890.00 1,428,975.00
3.Administrative expenses
Guangdong Litong Property
Management Fee 2,787,764.02
Investment Co., Ltd.
Guangdong East Thinking
Management Technology Maintenance，Service 1,048,608.53 582,500.00
Development Co., Ltd.
Guangdong Tongyi Expressway
Service 57,955.00 87,189.00
Service Area Co., Ltd
Guangdong Lulutong Co., Ltd. Maintenance charges 38,400.00 48,000.00
Subtotal 3,932,727.55 717,689.00
4.Intangible assets
Guangdong East Thinking
Management Technology Purchase assets 231,017.70 462,500.00
Development Co., Ltd.
Guangdong Litong Technology
Purchase assets 301,800.00
Investment Co., Ltd.
Subtotal 231,017.70 764,300.00
5.Fixed assets
Guangdong Xinyue Traffic
Purchase assets 8,327,087.05
Investment Co., Ltd.
Guangdong East Thinking
Management Technology Purchase assets 2,939,612.48 358,440.98
Development Co., Ltd.
Guangdong Lualu Traffic
Purchase assets 1,263,639.96
Technology Co., Ltd.
Guangdong Communication
Planning & Design Institute Co., Purchase assets 1,141,056.00
Ltd.
Poly Changda Engineering Co.,
Purchase assets 803,433.00
Ltd.
228
2020 Annual Report
Amount of Amount
Over the
Content of related current period of trading Amount of last
Related parties
transaction limit or period
previous not?
period
Guangdong Lulutong Co., Ltd. Purchase assets 774,003.00
Guangdong Feida Traffic
Purchase assets 255,165.00
Engineering Co., Ltd.
Subtotal 15,503,996.49 466,740.98
6.Construction in process
Poly Changda Engineering Co.,
Purchase assets 174,118,816.33 354,252,263.97
Ltd.
Guangdong Highway Construction
Purchase assets 32,720,641.48
Co., Ltd.
Guangdong Communication
Planning & Design Institute Co., Purchase assets 6,549,774.00
Ltd.
Guangzhou Xinyue Asphalt Co.,
Purchase assets 6,094,415.27
Ltd.
Guangdong Xinyue Traffic
Purchase assets 6,093,672.62 14,193,117.28
Investment Co., Ltd.
Guangdong Hualu Traffic
Purchase assets 4,965,661.48 7,293,946.75
Technology Co., Ltd.
Guangdong Jiaoke Testing Co.,
Purchase assets 4,924,163.50 45,030.00
Ltd.
Guangdong Feida Traffic
Purchase assets 4,456,756.00 7,547,509.00
Engineering Co., Ltd.
Guangdong Xiangfei Highway
Purchase assets 188,644.00
Supervision Co., Ltd.
Guangdong Litong Technology
Purchase assets 26,373,280.00
Investment Co., Ltd.
Guangdong Lulutong Co., Ltd. Purchase assets 969,546.53
Subtotal 240,112,544.68 410,674,693.53
7.Non-operating expenses
Guangdong Lulutong Co., Ltd. Maintenance 222,410.00
Guangdong Litong Technology
Equipment 11,000.00
Investment Co., Ltd.
229
2020 Annual Report
Amount of Amount
Over the
Content of related current period of trading Amount of last
Related parties
transaction limit or period
previous not?
period
Subtotal 233,410.00
Related transactions on sale goods and receiving services
In RMB
Amount of current Amount of
Related party Content
period previous period
1.Business income
Jingzhu Expressway Guangzhu North
Commission management fee 19,593,901.34 20,047,032.07
section Co., Ltd.
Guangdong Provincial Freeway Co.,Ltd. Project fund 4,382,576.33 4,310,630.18
Guangdong Feida Traffic Engineering Co.,
CPC card sales revenue 2,621,638.92 871,473.15
Ltd
Guangdong Union electronic services co.,
Promotion fees 1,479,844.56 999,971.70
Ltd.
Guangdong Tongyi Expressway Service
water and electricity 1,256,761.24
Area Co., Ltd
Guangdong Road Construction Development
Project fund 1,122,174.65 1,574,566.33
Co., Ltd.
Salary income and testing fee for
Zhaoqing Yuezhao Highway Co., Ltd. 1,044,069.06 2,155,810.23
expatriate staff
Salary income and testing fee for
Shenzhen Huiyan Expressway Co., Ltd. 944,060.56 1,121,184.34
expatriate staff
Ganzhou Gankang Expressway Co., Ltd. Salaries of expatriate staff 594,631.40 737,114.13
Ganzhou Kangda Expressway Co., Ltd. Salaries of expatriate staff 590,288.43 513,990.93
Guangdong Jiangzhong Expressway Co.,
Salary income, project payment, etc 530,534.64 635,673.34
Ltd.
Guangdong Chaohui Expressway Co., Ltd. Test 422,830.19 425,905.66
Guangdong Road & Bridge Construction
Test 394,211.89 2,144,812.90
Development Co., Ltd.
Guangdong Guangzhu West Line
Service, test 333,636.67 751,475.04
Expressway Co., Ltd.
230
2020 Annual Report
Amount of current Amount of
Related party Content
period previous period
Guangdong Yangmao Expressway Co., Ltd. Service, test 333,264.32 166,981.13
Guangdong Boda Expressway Co., Ltd. Test 295,325.43 730,270.82
Guangdong Maozhan Expressway Co., Ltd. Service, test 277,482.05 418,867.92
Guangdong Kaiyang Expressway Co., Ltd. Test 237,735.85 380,652.28
Guangdong Guangle Expressway Co., Ltd. Test 222,169.81 300,849.06
Poly Changda Engineering Co., Ltd. water and electricity 200,087.71
Guangdong Zhaoyang Expressway Co., Ltd. Test 150,000.00 236,460.18
Guangdong Guangfozhao Expressway Co.,
Test 142,641.51 331,283.02
Ltd.
Guangdong Xinyue Traffic Investment Co.,
CPC card sales revenue 128,993.83 2,208,097.34
Ltd.
Guangdong Luoyang Expressway Co., Ltd. Test 107,547.17 107,547.17
Guangdong Traffic Industry Investment Co.,
Test 90,566.04 90,566.04
Ltd.
Guangdong Gaoen Expressway Co., Ltd. Test 79,245.28 79,245.28
Yunfo Gufangyun Expressway Co., Ltd. Test 65,377.36 164,469.85
Jiangmen Jianghe Expressway Co., lTD. Test 57,547.17 110,377.36
Guangdong Road Nework Digital Media
Advertising 34,218.33
Information Technology Co., Ltd.
Guangdong Humen Bridge Co., Ltd. Test 33,962.26 60,849.06
Guangdong Expressway Media Co., Ltd. water and electricity 23,053.70 44,213.00
Guangdong Yueyun Traffic Co., Ltd. Test 11,320.75 42,452.83
Guangshenzhu Expressway Co., Ltd. Service 8,407.08 114,655.17
Guangdong Jiangzhao Expressway Co., Ltd. Project 130,188.68
Foshan Guangshan Expressway Co., Ltd. Project 120,283.02
Guangdong Taishan coastal Expressway Co.,
Project -59,433.96
Ltd.
Guangzhongjiang Expressway Project
Project -89,622.64
Management Dept
Subtotal 37,810,105.53 41,978,892.61
2.Non-operating income
Poly Changda Engineering Co., Ltd. Construction penalty 93,754.00
Guangdong Xinyue Traffic Investment Co., Construction penalty 5,300.00
231
2020 Annual Report
Amount of current Amount of
Related party Content
period previous period
Ltd.
Subtotal 99,054.00
(2) Information of related lease
The Company was lessor：
In RMB
The lease income The lease income
Name of lessee Category of lease assets
confirmed in this year confirmed in last year
Advertising lease
Guangdong Expressway Media Co., Ltd. 4,598,128.21 3,556,249.10
Guangdong Tongyi Expressway Service
Service Area Lease 2,297,830.86 2,297,830.86
Area Co., Ltd
Guangdong Litong Technology
Communication Piping 1,030,735.24 930,872.38
Investment Co., Ltd.
Guangdong Litong Technology
Land lease 37,690.80
Investment Co., Ltd.
- The company was lessee：
In RMB
The lease income confirmed
Lessor Category of leased assets Category of leased assets
in this year
Guangdong Litong Real Office space
9,208,532.51 8,876,387.85
Eatate Investment Co., Ltd
Zhaoqing Yuezhao Highway
Advertising column lease 253,230.00 248,061.50
Co., Ltd.
Guangzhou Yueyun Traffic
Car rental fee 187,200.00 190,640.78
Co., Ltd.
Guangdong Gaoda Property Office space
102,969.27 95,436.00
Development Co., Ltd.
Zhaoqing Yuezhao Highway
Equipment lease 116,504.86
Co., Ltd.
Guangdong Kaiyang
Equipment lease 106,194.69
Expressway Co., Ltd.
Guangdong Maozhan
Equipment lease 106,194.69
Expressway Co., Ltd.
(4) Inter-bank lending of capital of related parties
In RMB
232
2020 Annual Report
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Guangdong Jiangzhong
36,000,000.00 November 14,2018 November 13,2023
Expressway Co Loaned., Ltd.
Guangdong Communication
200,000,000.00 August 26,2020 August 25,2021
Group Finance Co., Ltd.
Loaned
(5) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
6,541,500.00 7,604,100.00
personnel
(6) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
In RMB
Amount of current Amount of previous period
Items
period
Balance of Deposit 1,031,105,792.71 813,272,070.75
Including ： Guangdong Provincial Expressway 90,107,522.98 813,272,070.75
Development Co., Ltd.（Not include Guanghui）
Guangdong Guanghui Expressway Co., Ltd. 940,998,269.73
Interest revenue 14,429,931.26 8,705,455.79
Including ： Guangdong Provincial Expressway 13,058,886.79 8,705,455.79
Development Co., Ltd.（Not include Guanghui）
Guangdong Guanghui Expressway Co., Ltd. 2,869,377.80
Reference to the deposit rate of the people's Bank of
Pricing Principle
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 May 19, 2020, Guangdong Guanghui Expressway Co., ltd. signed the Cash Management Business
Cooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and Agricultural Bank of
233
2020 Annual Report
China Guangdong Branch and signed the Cash Management Business Cooperation Agreement with Guangdong
Communications Group Finance Co., Ltd. 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.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Guangdong Xinyue Traffic Investment Co.,
Contract assets 119,242.50 127,567.50
Ltd.
Guangdong Road & Bridge Construction
Contract assets 25,262.45 83,391.05
Development Co., ltd.
Contract assets Zhaoqing Yuezhao Expressway Co., Ltd. 22,667.85 41,442.48
Guangdong Feida Traffic Engineering
Contract assets 48,230.00 48,230.00
Co.,Ltd.
Contract assets Guangzhenzhu Expressway Co., Ltd. 9,096.00 9,096.00
Guangdong Jiangzhong Expressway Co.,
Contract assets 8,412.00 8,412.00
Ltd.
Guangdong Road Construction
Contract assets 7,200.00 7,200.00
Development Co., ltd.
Contract assets Guangdong Boda Expressway Co., Ltd. 4,530.99 4,531.00
Contract assets Guangdong Humen Bridge Co., Ltd. 2,700.00 2,700.00
Contract assets Guangdong Provincial Freeway Co.,Ltd. 41,377.00
Guangdong Guangzhu West Line
Contract assets 18,781.60
Expressway Co., Ltd.
Guangdong Shenshan Expressway East
Contract assets 12,000.00
Section Co., Ltd.
Guangdong Litong Technology Investment
Contract assets 5,273.00
Co., Ltd.
234
2020 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
Total 247,341.79 410,001.63
Account Guangdong Union electron Service Co.,
100,047,025.70 92,786,286.61
receivable Ltd.
Account
Guangdong Humen Bridge Co., Ltd. 11,044,082.54 16,698,073.73
receivable
Account Jingzhu Expressway Guangzhu North
5,980,163.99 6,174,264.00 4,450.00
receivable Section Co., Ltd.
Account
Guangdong Expressway Media Co., Ltd. 1,966,548.00 1,909,300.00
receivable
Account Guangdong Feida Traffic Engineering Co.,
3,274,356.00 45,916.00 1,423,875.25 103,072.45
receivable Ltd.
Account
Guangdong Road Construction Co., ltd. 1,037,305.45 65,491.20 336,946.45 3,818.00
receivable
Account Guangdong Xinyue Traffic Investment Co.,
300,009.20 148,208.50 2,334,682.70 160,715.94
receivable Ltd.
Account Guangdong Guangzhu West Line
223,500.00 384,226.00
receivable Expressway Co., Ltd.
Account
Guangzhenzhu Expressway Co., Ltd. 69,736.00 115,278.40
receivable
Account Guangdong Road & Bridge Construction
61,891.30 567,957.47
receivable Development Co., ltd.
Account
Guangdong Boda Expressway Co., Ltd. 22,740.00 537,848.00
receivable
Account
Guangdong Provincial Freeway Co.,Ltd. 21,232.00 175,248.90
receivable
Account Guangdong Jiangzhong Expressway Co.,
19,708.00 19,708.00
receivable Ltd.
Account
Guangdong Yueyun Traffic Co., Ltd. 15,032.00 3,032.00
receivable
Account
Guangdong Chaohui Expressway Co., Ltd. 7,367.20
receivable
Account
Guangdong Guangle Expressway Co., Ltd. 7,248.00 7,248.00
receivable
Account Guangdong Litong Technology Investment
68,542.00
receivable Co., Ltd.
235
2020 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 Maozhan Expressway Co.,
8,747.20
receivable Ltd.
Account
Guangdong Shanfen Expressway Co., Ltd. 8,028.80
receivable
Account Guangdong Yuedong Expressway Industry
7,367.20
receivable Development Co., Ltd.
Account
Jiangmen Jianghe Expressway Co., Ltd. 2,539.20
receivable
Total 124,097,945.38 259,615.70 123,569,199.91 272,056.39
Advanced Guangdong Litong Real Estate Investment
776,413.03 735,092.38
payment Co., Ltd.
Advanced
Zhaoqing Yuezhao Highway Co., Ltd. 151,938.00 144,703.00
payment
Advanced Guangdong Feida Traffic Engineering Co.,
149,400.00
payment Ltd.
Total 1,077,751.03 879,795.38
Dividend
Ganzhou Gankang Expressway Co., Ltd. 1,500,000.00
Receivable
Dividend Guangdong Yueke Technology Petty Loan
6,000,000.00
Receivable Co., Ltd.
Total 1,500,000.00 6,000,000.00
Other Account
Ganzhou Gankang Expressway Co., Ltd. 45,000,000.00
receivable
Other Account Guangdong Litong Real Estate Investment
1,666,147.36 1,515,077.22
receivable Co., Ltd.
Other Account
Guangdong Expressway Media Co., Ltd. 1,218,110.44 896,321.01
receivable
Other Account Guangdong Guanghui Expressway Co.,
463,491.88 463,491.88
receivable Ltd.
Other Account
Zhaoqing Yuezhao Highway Co., Ltd. 350,000.00 390,000.00
receivable
Other Account
Guangshenzhu Expressway Co., Ltd. 60,640.00 60,640.00
receivable
Other Account Guangdong Union electron Service Co.,
50,000.00 50,000.00
receivable Ltd.
236
2020 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 Boda Expressway Co., Ltd. 22,740.00 22,740.00
receivable
Other Account Guangdong Gufangzhu West Line
20,000.00 20,000.00
receivable Expressway Co., Ltd.
Other Account Guangdong Gaoda Property Development
16,268.00 15,906.00
receivable Co., ltd.
Other Account
Poly Changda Engineering Co., Ltd. 10,124.14 192,169.95
receivable
Other Account Guangdong Xinyue Traffic Investment Co.,
5,340.03 3,477.00
receivable Ltd.
Other Account Hongkong Zhuhai Macao Bridge
3,000.00
receivable Connection line management center
Total 48,882,861.85 3,632,823.06
Other
Non-Current Poly Changda Engineering Co., Ltd. 11,599,273.00 48,400,293.16
Assets
Other
Non-Current Guangdong Road Construction Co., Ltd. 7,089,990.48
Assets
Other
Guangdong Tianlu New Energy Investment
Non-Current 333,398.00
Co., Ltd.
Assets
Other
Guangdong Hualu Traffic Technology Co.,
Non-Current 277,117.00
Ltd.
Assets
Total 19,022,661.48 48,677,410.16
Long-term
Guangdong Jingzhu Expressway Guangzhu
amortization 1,007,747.00 1,114,764.44
North Section Co., Ltd.
costs
Total 1,007,747.00 1,114,764.44
（2）Payables
In RMB
237
2020 Annual Report
Amount at year
Name Related party Amount at year end
beginning
Guangdong Communication Group Finance Co.,
Short-term loans 200,192,500.00
Ltd.
Total 200,192,500.00
Guangzhongjiang Expressway Project Management
Account payable 28,000,000.00 28,000,000.00
Dept
Account payable Poly Changda Engineering Co., Ltd. 25,621,536.30 48,505,079.52
Account payable Guangdong Xinyue Traffic Investment Co., Ltd 13,149,675.40 5,496,352.70
Guangdong Communication Planning & Design
Account payable 8,929,645.80 6,013,501.73
Institute Co., Ltd.
Account payable Guangdong Provincial Freeway Co.,Ltd. 8,746,491.18 8,746,491.18
Account payable Guangdong Lulutong Co., Ltd. 3,560,871.60 3,674,959.44
Account payable Guangdong Hualu Traffic Technology Co., Ltd. 2,198,660.67 877,441.72
Guangdong East Thinking Management
Account payable 1,584,416.70 474,000.00
Technology Development Co., Ltd.
Guangzhou Aitesi Communication Equipment Co.,
Account payable 1,283,018.78
Ltd.
Account payable Guangdong Feida Traffic Engineering Co., Ltd. 500,864.10 7,588,881.23
Account payable Guangdong Changda Road Maintenance Co., Ltd. 309,101.00 309,101.00
Account payable Guangdong Yueyun Traffic Co., Ltd. 268,021.00
Account payable Guangdong Union Electron Service Co.,Ltd. 254,011.26 2,661,544.84
Account payable Guangdong Jiaoke Testing Co., Ltd. 88,880.00 317,105.00
Guangdong Litong Technology Investment Co.,
Account payable 85,074.95 3,307,587.00
Ltd.
Account payable Guangzhou Xinyue Asphalt Co., Ltd. 47,362.94 46,779.00
Account payable Guangdong Road Construction Co., Ltd. 25,630,651.00
Account payable Guangzhou Xinyue Traffic Technology Co., Ltd. 2,279,061.00
Total 94,627,631.68 143,928,536.36
Guangdong Road Network Digital Media
Advance received 2,777.78
Information Technology Co. Ltd.
Total 2,777.78
Other Payable account Guangdong Provincial Freeway Co.,Ltd. 1,221,839,292.00
Other Payable account Poly Changda Engineering Co., Ltd. 20,042,113.05 30,447,877.47
Other Payable account Guangdong Xinyue Traffic Investment Co., Ltd. 1,889,981.61 2,533,921.10
Other Payable account Guangdong Feida Traffic Engineering Co., Ltd. 1,700,740.34 2,203,127.20
238
2020 Annual Report
Amount at year
Name Related party Amount at year end
beginning
Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1,630,765.00 1,630,765.00
Other Payable account Guangdong Hualu Traffic Technology Co., Ltd. 1,327,451.00 1,078,565.88
Other Payable account Guangdong Lulutong Co., Ltd. 1,084,995.15 230,261.43
Other Payable account Guangdong Union Electron Service Co.,Ltd. 956,272.04 367,300.00
Other Payable account Guangzhou Xinyue Asphalt Co., Ltd. 567,221.00
Guangdong Communication Planning & Design
Other Payable account 238,479.70 216,749.70
Institute Co., Ltd.
Guangzhongjiang Expressway Project Management
Other Payable account 200,000.00 200,000.00
Dept
Other Payable account Guangzhou Xinyue Traffic Technology Co., Ltd. 171,809.00 171,809.00
Guangdong Litong Technology Investment Co.,
Other Payable account 167,591.50 247,070.50
Ltd.
Guangdong Tongyi Expressway Service Area Co.,
Other Payable account 120,000.00 120,000.00
Ltd.
Other Payable account Guangdong Expressway Media Co., Ltd. 70,000.00 70,000.00
Guangdong East Thinking Management
Other Payable account 58,991.40 439,523.40
Technology Development Co., Ltd.
Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 900.00 900.00
Other Payable account Guangdong Yuegan Expressway Co., Ltd. 1,000.00
Total 1,252,066,602.79 39,958,870.68
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
7. Related party commitment
None
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
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2020 Annual Report
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
（1）Capital commitment
On June 15, 2016, the Company’s 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 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 31,2020, The
accumulated expenses occurred of Sanboto Shuikou Highway extension project was 2.596 billion yuan.
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2020 Annual Report
Economic
No Contract Counterparty Contract Amount Fulfilled as of June 30, 2020
Content
1 China Railway Tunnel Group Co., Civil 251,026,485.00 254,055,919.72
Ltd. Engineering
2 Poly Changda Engineering Co., Ltd. Civil 624,878,240.00 612,468,267.93
Engineering
3 China Railway 18th Bureau Group Civil 219,974,609.00 209,612,477.24
Co., Ltd. Engineering
4 CCCC First Navigation Engineering Civil 355,014,108.00 302,643,777.44
Bureau Co., Ltd Engineering
2. Contingency
(1) Significant contingency at balance sheet date
As of December 31,2020,The company does not disclose the pension plan undisclosed matter should exist.
(2) The Company have no significant contingency to disclose, also should be stated
XV. Events after balance sheet date
1.Profit distribution
In RMB
Profit or dividend to be distributed 608,424,582.67
Profits or dividends declared upon examination and approval Subject to the approval of the shareholders' meeting
XVI.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.
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2020 Annual Report
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
Subsidy item Category Opening New subsidy amount The carry-over in Other Closing balance Presentation items Asset-related/
balance in current period current period is changes carried over into revenue-relate
included in profit and profit or loss in d
loss amount the current period
Cancel the special subsidy for the expressway Financial appropriation 55,851,800.00 11,306,230.36 44,545,569.64 Other income Assets related
provincial toll station project
Discount interest fund Discount interest fund 2,500,000.00 2,500,000.00 Financial Income
Expreses related
(2) Government subsidies included in current profits and losses using the total amount method
Subsidy item Category Amount included in profit or loss in the Presentation items included in profit or loss in the Asset-related/revenue-related
current period current period
Subsidy for post Subsidy for 516,603.84 Other income Income related
stabilization post
stabilization
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2020 Annual Report
3.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
"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 unnatural
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. Because the defendant failed to perform the
effective judgment, the company applied to Guangzhou Maritime Court for compulsory execution. On July 27,
2020, the company received the enforcement ruling of Guangzhou Maritime Court ([2020] Y 72 Z No.247 - 3rd);
A total execution payment of RMB 657,219.33 was transferred to our company by the court, and the execution
procedure was terminated according to law.
(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
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2020 Annual Report
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 the end of this period, the
company has returned all the raised funds to Pacific Asset Management Co., Ltd. On May 22, 2020, the company
completed the cancellation registration of equity pledge of Guangzhou Guangzhu Transportation Investment
Management Co., Ltd.
（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 and 750 million yuan on March 1 2019 and March 17, 2020.
The Company's plan to purchase 21% equity of Guangdong Guanghui Expressway Co., Ltd. (hereinafter
referred to as "Guanghui") held by Guangdong Expressway Co., Ltd. (hereinafter referred to as "Guangdong
Expressway") by payment in cash and related matters have been adopted by the resolution of the third
extraordinary general meeting of shareholders in 2020. As of December 31, 2020, the Company has paid a total of
RMB 1,271,710,284.00 to Guangdong Expressway, accounting for 51% of the total equity transfer, and 21% of
Guanghui's equity has been changed to the Company's name. The amendments to Guanghui Articles of
Association involved in this major asset restructuring have been filed with the market supervision and
management department.
According to the Profit Compensation Agreement signed by Guangdong Expressway and the Company, it is
agreed that Guangdong Expressway shall undertake the compensation obligation when the actual net profit of
Guanghui is less than the predicted net profit within the compensation period. The compensation period is the year
when the transaction is completed and the next two years thereafter, namely 2020, 2021 and 2022. After
negotiation between the Company and Guangdong Expressway, the predicted net profit of Guanghui after
deducting non-recurring gains and losses in 2020, 2021 and 2022 is RMB 652,477,500, RMB 1,112,587,300 and
RMB 1,234,200,900 respectively. Within the compensation period, if the accumulated realized net profit at the
end of any fiscal year of Guanghui does not reach the accumulated predicted net profit, Guangdong Expressway
will compensate the company in cash, and the specific compensation amount paid by Guangdong Expressway in
that year will be calculated and determined according to the following formula: current compensation amount
promised for performance = (accumulated predicted net profit as of the end of the current period - accumulated
244
2020 Annual Report
realized net profit as of the end of the current period) ÷ sum of predicted net profits of each year within the
compensation period × transaction price of the underlying assets - accumulated compensated amount of
Guangdong Expressway. When the compensation amount calculated in each year is less than the RMB 0, the
value shall be taken as RMB 0, and the compensated amount shall not be reversed.
The predicted net profit of Guanghui after deducting non-recurring gains and losses in 2020 is RMB
769.2326 million, which is RMB 116.7551 million more than the promised amount.
245
2020 Annual Report
XVII..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category
Amount Proportio Amou Amount Book value Amount Proportion Amount Amount Book value
n(%) nt (%)
Of which
Accrual of bad debt provision by
27,004,827.41 100.00% 27,004,827.41 21,864,051.27 100.00% 21,864,051.27
portfolio
Of which：
Aging portfolio 27,004,827.41 100.00% 27,004,827.41 21,864,051.27 100.00% 21,864,051.27
Total 27,004,827.41 27,004,827.41 21,864,051.27 21,864,051.27
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2020 Annual Report
Accrual of bad debt provision by single item: None
②Accrual of bad debt provision by portfolio：
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion
Within 1 year 27,004,827.41 100.00%
Total 27,004,827.41 --
Provision for bad debts according to Quality guarantee portfolio
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 27,004,827.41
Total 27,004,827.41
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：None
（3）The current accounts receivable write-offs situation
None
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic
27,004,827.41 100.00%
Services Co., Ltd.
Total 27,004,827.41 100.00%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
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2020 Annual Report
2.Other receivable
In RMB
Items
Year-end balance Year-beginning balance
Dividend receivable 2,705,472.90 7,205,472.90
Other receivable 51,442,641.63 6,230,178.29
Total 54,148,114.53 13,435,651.19
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment No.1
1,205,472.90 1,205,472.90
Limited partnership enterprise
Guangdong Yueke Technology Petty Loan Co., Ltd. 6,000,000.00
Ganzhou Gankang Expressway Co., Ltd. 1,500,000.00
Total 2,705,472.90 7,205,472.90
2）Significant dividend receivable aged over 1 year
I n RMB
Whether or not the
Balance in Reasons for impairment and the
Items) Aging
year-end non-recovery basis for its
determination
Temporary freezing
Guangdong Radio and Television Networks Over 1 No, it's recoverable in
1,205,472.90 of company
investment No.1 Limited partnership enterprise year the future
accounts
Total 1,205,472.90 -- -- --
（2） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Less receivable 45,000,000.00
Balance of settlement funds for
30,844,110.43 30,844,110.43
securities transactions
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2020 Annual Report
Nature Closing book balance Opening book balance
Cash deposit 2,490,271.36 1,935,101.00
Petty cash 2,140,410.04 1,700,634.57
Other 1,905,542.23 2,594,442.72
Total 82,380,334.06 37,074,288.72
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss Expected credit losses for
Bad Debt Reserves Total
losses over the over life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1,2020 30,844,110.43 30,844,110.43
Balance as at January 1,2020 in
—— —— —— ——
current
Accrual 93,582.00 93,582.00
Balance as at December 31,2020 93,582.00 30,844,110.43 30,937,692.43
Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 49,224,624.35
1-2 years 975,380.70
2-3 years 443,715.70
Over 3 years 31,736,613.31
3-4 years 463,491.88
4-5 years 31,273,121.43
Over 5 years 82,380,334.06
Total
3） Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
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2020 Annual Report
Amount of change in the current period
Balance Balance in
Category
Year-beginning Reversed or year-end
Write-
Accrual collected Other
off
amount
Accrual of single item 30,844,110.43 30,844,110.43
Accrual of portfolio-Aging
93,582.00 93,582.00
portfolio
Total 30,844,110.43 93,582.00 30,937,692.43
Where the current bad debts back or recover significant amounts:None
4)The actual write-off other accounts receivable: None
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
total year end Closing
Closing
Name Nature Aging balance of the balance of bad
balance
accounts debt provision
receivable(%)
Ganzhou Gankang Within 1
Less receivable 45,000,000.00 54.62%
Expressway Co., Ltd. year
Kunlun Securities
Investment Deposit 30,844,110.43 Over 5 years 37.44% 30,844,110.43
Co.,Ltd
Guangdong Litong
Within 1
Real Estates Vehicle parking deposit 1,630,467.36 1.98%
year
Investment Co., Ltd.
Foshan Hezhan
Yinghui Property Disposal of Building Income
935,820.00 1-2 year 1.14% 93,582.00
Management Co., from New Jitian Land
Ltd.
Guangdong
Provincial Freeway Commission management 463,491.88 4-5 year 0.56%
Co.,Ltd.
Total -- 78,873,889.67 -- 95.74% 30,937,692.43
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2020 Annual Report
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
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2020 Annual Report
3. Long-term equity investment
In RMB
End of term Beginning of term
Items
Book Balance Impairment provision Book value Book Balance Impairment provision Book value
Investment in subsidiaries 3,232,062,345.85 3,232,062,345.85 1,533,665,008.81 1,533,665,008.81
Investment in joint ventures
2,297,300,190.68 2,297,300,190.68 3,255,739,898.36 3,255,739,898.36
and associates
Total 5,529,362,536.53 5,529,362,536.53 4,789,404,907.17 4,789,404,907.17
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period Closing balance of
Name Opening balance Closing balance impairment
Add investment Other
provision
Jingzhu Expressway Guangzhu Section
419,105,446.88 452,066,436.20 871,171,883.08
Co., Ltd.
Guangzhou Guangzhu Traffic Investment
859,345,204.26 859,345,204.26
Management Co., Ltd.
Guangfo Expressway Co., ltd. 154,982,475.25 154,982,475.25
Guangdong Expressway Technology
95,731,882.42 95,731,882.42
Investment Co., Ltd.
Yuegao Capital Investment (Hengqin)
4,500,000.00 80,000,000.00 84,500,000.00
Co., Ltd.
252
2020 Annual Report
Guangdong Guanghui Expressway Co.,
2,025,676,105.10 2,025,676,105.10
Ltd.
Total 1,533,665,008.81 2,557,742,541.30 859,345,204.26 3,232,062,345.85
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Withdra
Closing
Adjustment wn
Declaration of balance of
Name Opening balance Decreased Gain/loss of of other Other equity impairm Oth Closing balance
Add investment cash dividends impairment
investment Investment comprehensiv changes ent er
or profit provision
e income provisio
n
I. Joint ventures
Guangdong
Guanghui
1,048,473,573.52 834,101,925.63 2,025,676,105.10 234,091,510.52 26,725,050.00 117,715,954.57
Expressway
Co., Ltd.
Subtotal 1,048,473,573.52 834,101,925.63 2,025,676,105.10 234,091,510.52 26,725,050.00 117,715,954.57
II. Associated enterprises
Guangdong
Jiangzhong
179,491,516.98 12,760,987.96 192,252,504.94
Expressway
Co., Ltd.
Ganzhou
213,672,650.90 45,000,000.00 -21,398,030.18 1,500,000.00 145,774,620.72
Gankang
253
2020 Annual Report
Increase /decrease in reporting period
Withdra
Closing
Adjustment wn
Declaration of balance of
Name Opening balance Decreased Gain/loss of of other Other equity impairm Oth Closing balance
Add investment cash dividends impairment
investment Investment comprehensiv changes ent er
or profit provision
e income provisio
n
Expressway
Co., Ltd.
Ganzhou
Kangda
234,733,526.86 9,080,563.64 27,000,000.00 216,814,090.50
Expressway
Co., Ltd.
Shenzhen
Huiyan
262,682,427.44 22,726,327.71 285,408,755.15
Expressway
Co., Ltd.
Guoyuan
Securities 793,926,807.52 129,910,442.24 32,205,888.19 -5,192,159.89 11,940,297.90 938,910,680.16
Co.,Ltd.
Guangdong
Yueke
Technology 214,637,335.45 10,065,984.93 9,000,000.00 215,703,320.38
Petty Loan
Co., Ltd.
Zhaoqing
Yuezhao 308,122,059.69 44,064,159.14 49,750,000.00 302,436,218.83
Highway Co.,
254
2020 Annual Report
Increase /decrease in reporting period
Withdra
Closing
Adjustment wn
Declaration of balance of
Name Opening balance Decreased Gain/loss of of other Other equity impairm Oth Closing balance
Add investment cash dividends impairment
investment Investment comprehensiv changes ent er
or profit provision
e income provisio
n
Ltd.
Subtotal 2,207,266,324.84 129,910,442.24 45,000,000.00 109,505,881.39 -5,192,159.89 99,190,297.90 2,297,300,190.68
Total 3,255,739,898.36 964,012,367.87 2,070,676,105.10 343,597,391.91 -5,192,159.89 26,725,050.00 216,906,252.47 2,297,300,190.68
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2020 Annual Report
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 961,484,310.59 650,430,454.36 1,276,614,430.61 779,246,352.00
Other 13,956,071.99 5,240,167.71 13,675,411.15 4,575,580.19
Total 975,440,382.58 655,670,622.07 1,290,289,841.76 783,821,932.19
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted by
565,261,660.63 670,160,115.89
cost method
Long-term equity investment income accounted by
343,597,391.91 469,503,736.12
equity method
Investment return on investments held to maturity
50,785,213.04 38,912,399.15
during the holding period
Interest income from debt investment during holding
50,332,058.95 58,235,794.66
period.
Total 1,009,976,324.53 1,236,812,045.82
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of
-8,261,533.18
non-current assets
Government grants recognized in the
current period, except for those acquired in
the ordinary course of business or granted 8,359,291.82
at certain quotas or amounts according to
the country’s unified standards
Current net gains and losses occurred from The Company originally held 30%
546,213,524.55
period-begin to combination day by equity of Guanghui Expressway, In
256
2020 Annual Report
subsidiaries resulting from business 2020, the Company purchased 21%
combination under common control equity of Guanghui Expressway in cash,
nd the merger date under the same
control was December 31, which was
70% of the net profit and loss realized by
Guanghui Expressway in 2020 from the
beginning of merger to the date of
merger.
Net amount of non-operating income and
-1,069,827.30
expense except the aforesaid items
Other non-recurring Gains/loss items 974,321.89
Less :Influenced amount of income tax 2,214.32
In 2020, the Company purchased 21%
equity of Guanghui Expressway in cash,
and the merger date under the same
Influenced amount of minor control was December 31, increasing the
383,192,431.88
shareholders’ equity (after tax) net profit and loss realized by Guanghui
Expressway in 2020 which was
attributable to minority shareholders by
RMB 382,722,793.66.
Total 163,021,131.58 --
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Weighted EPS（Yuan/share）
Profit as of reporting period average ROE
EPS-basic EPS-diluted
(%)
Net profit attributable to common
8.27% 0.42 0.42
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
EPS-diluted 0.34 0.34
deduction of non-recurring profit
and loss
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2020 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.
258
