Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial l Report 2021
Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Financial Report 2021
August 2021
1
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
2
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2021
In RMB
Items June 30,2021 December 30,2020
Current asset：
Monetary fund 3,567,296,610.42 2,847,398,003.89
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 143,817,895.36 168,907,517.56
Financing of receivables
Prepayments 3,629,905.49 3,607,538.01
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 116,279,317.70 60,925,367.64
Including：Interest receivable
Dividend receivable 77,609,011.14 2,705,472.90
Repurchasing of financial assets
Inventories 375,353.97 53,761.06
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items June 30,2021 December 30,2020
Contract assets 5,231,809.89 5,452,813.90
Assets held for sales
Non-current asset due within 1 year 6,188,916.16 51,745.32
Other current asset 793,006.80 27,051.69
Total of current assets 3,843,612,815.79 3,086,423,799.07
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 2,425,787,626.37 2,382,381,165.60
Other equity instruments investment 1,687,611,990.05 1,737,015,528.29
Other non-current financial assets
Property investment 2,999,822.65 3,110,381.89
Fixed assets 10,897,135,679.38 11,540,075,929.69
Construction in progress 476,068,792.62 340,611,095.47
Production physical assets
Oil & gas assets
Use right assets 18,740,252.76 Not applicable
Intangible assets 283,730,534.72 302,381,356.52
Development expenses
Goodwill
Long-germ expenses to be amortized 2,279,062.50 3,462,122.00
Deferred income tax asset 287,472,257.16 330,755,418.39
Other non-current asset 23,121,524.43 22,361,861.19
Total of non-current assets 16,104,947,542.64 16,662,154,859.04
Total of assets 19,948,560,358.43 19,748,578,658.11
Current liabilities
Short-term loans 200,175,000.00 200,192,500.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items June 30,2021 December 30,2020
Derivative financial liabilities
Notes payable
Account payable 306,508,695.83 369,773,342.71
Advance receipts 21,801,794.77 11,309,007.41
Contract liabilities 327,734.51 309,734.51
Selling of repurchased financial
assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 25,320,989.97 16,726,198.13
Tax payable 176,211,612.25 217,748,392.78
Other account payable 819,156,400.81 1,512,619,359.78
Including：Interest payable
Dividend payable 630,684,374.92 22,262,804.39
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1
175,857,862.51 266,328,017.47
year
Other current liability 1,882,974.53 648,581.64
Total of current liability 1,727,243,065.18 2,595,655,134.43
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 5,877,040,700.00 4,977,438,800.00
Bond payable 1,426,956,661.36 1,426,488,336.65
Including：preferred stock
Sustainable debt
Lease liability 7,722,763.42 Not applicable
Long-term payable 3,461,832.74 40,406,172.37
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 79,199,331.40 89,170,569.64
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items June 30,2021 December 30,2020
Deferred income tax liability 362,172,755.30 387,103,060.74
Other non-current liabilities
Total non-current liabilities 7,756,554,044.22 6,920,606,939.40
Total of liability 9,483,797,109.40 9,516,262,073.83
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 692,034,132.73 645,969,210.48
Less：Shares in stock
Other comprehensive income 267,838,432.29 302,895,877.65
Special reserve
Surplus reserves 1,167,785,965.63 1,167,785,965.63
Common risk provision
Retained profit 3,965,681,227.90 3,725,679,319.35
Total of owner’s equity belong to the
8,184,145,884.55 7,933,136,499.11
parent company
Minority shareholders’ equity 2,280,617,364.48 2,299,180,085.17
Total of owners’ equity 10,464,763,249.03 10,232,316,584.28
Total of liabilities and owners’
19,948,560,358.43 19,748,578,658.11
equity
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
2.Parent Company Balance Sheet
In RMB
Items June 30,2021 December 31,2020
Current asset：
Monetary fund 2,430,212,254.68 1,781,764,519.09
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 19,737,518.67 27,004,827.41
Financing of receivables
Prepayments 1,020,172.00 2,181,215.03
Other account receivable 107,676,866.16 54,148,114.53
Including：Interest receivable
Dividend receivable 77,609,011.14 2,705,472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 271,802,985.60 256,279,340.60
Other current asset 405,622.83 27,051.69
Total of current assets 2,830,855,419.94 2,121,405,068.35
Non-current assets：
Creditor's right investment 277,903,684.98 287,903,684.98
Other creditor's right investment
Long-term receivable
Long term share equity investment 5,594,733,537.89 5,529,362,536.53
Other equity instruments investment 1,687,611,990.05 1,737,015,528.29
Other non-current financial assets
Property investment 2,747,684.40 2,858,243.64
Fixed assets 5,925,202,476.53 6,245,462,940.39
Construction in progress 46,156,802.33 43,086,545.58
Production physical assets
Oil & gas assets
Use right assets 17,382,834.74 Not applicable
Intangible assets 144,488,882.05 150,582,241.22
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items June 30,2021 December 31,2020
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 280,334,256.79 322,365,911.10
Other non-current asset 7,089,990.48 7,089,990.48
Total of non-current assets 13,983,652,140.24 14,325,727,622.21
Total of assets 16,814,507,560.18 16,447,132,690.56
Current liabilities
Short-term loans 200,175,000.00 200,192,500.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 103,250,751.10 105,919,984.52
Advance receipts 752,954.29
Contract Liabilities Not applicable
Employees’ wage payable 6,208,548.09 6,472,802.81
Tax payable 4,754,697.62 9,165,801.86
Other account payable 739,961,982.78 1,431,814,861.38
Including：Interest payable
Dividend payable 630,684,374.92 22,262,804.39
Liabilities held for sales
Non-current liability due within 1
107,306,161.27 190,331,701.48
year
Other current liability 497,710,890.09 539,618,124.00
Total of current liability 1,660,120,985.24 2,483,515,776.05
Non-current liabilities：
Long-term loan 5,323,090,700.00 4,389,653,800.00
Bond payable 1,426,956,661.36 1,426,488,336.65
Including：preferred stock
Sustainable debt
Lease liability 7,434,009.98 Not applicable
Long-term payable 3,461,832.74 40,406,172.37
Long-term remuneration payable to
staff
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items June 30,2021 December 31,2020
Expected liabilities
Deferred income 11,762,103.38 13,403,327.12
Deferred income tax liability 93,448,933.15 105,636,866.50
Other non-current liabilities
Total non-current liabilities 6,866,154,240.61 5,975,588,502.64
Total of liability 8,526,275,225.85 8,459,104,278.69
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 935,191,327.54 938,969,546.79
Less：Shares in stock
Other comprehensive income 267,838,432.29 302,895,877.65
Special reserve
Surplus reserves 987,813,698.07 987,813,698.07
Retained profit 4,006,582,750.43 3,667,543,163.36
Total of owners’ equity 8,288,232,334.33 7,988,028,411.87
Total of liabilities and owners’
16,814,507,560.18 16,447,132,690.56
equity
3.Consolidated Income statement
In RMB
Items The first half year of 2021 The first half year of 2020
I. Income from the key business 2,488,474,669.81 1,117,754,309.27
Incl：Business income 2,488,474,669.81 1,117,754,309.27
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,114,434,707.99 982,301,522.18
Incl：Business cost 889,127,742.43 777,474,885.26
Interest expense
Fee and commission paid
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
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 11,081,346.10 5,461,398.43
Sales expense
Administrative expense 93,357,035.39 78,662,061.95
R & D costs
Financial expenses 120,868,584.07 120,703,176.54
Including：Interest expense 149,343,110.61 134,883,778.08
Interest income 29,751,089.44 15,990,606.72
Add: Other income 9,922,369.03 5,936,612.55
Investment gain（“-”for loss） 172,050,127.56 66,754,110.72
Incl: investment gains from affiliates 122,646,589.32 12,358,090.15
Financial assets measured at amortized cost cease to be
recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss -1,310,999.95 -236,683.81
Impairment loss of assets -2,889,394.16
Assets disposal income 4.37
III. Operational profit（“-”for loss） 1,551,812,064.30 207,906,830.92
Add ：Non-operational income 4,011,220.05 5,311,689.24
Less: Non-operating expense 1,811,321.13 2,237,538.58
IV. Total profit(“-”for loss) 1,554,011,963.22 210,980,981.58
Less：Income tax expenses 354,025,065.47 94,128,013.74
V. Net profit 1,199,986,897.75 116,852,967.84
(I) Classification by business continuity
1.Net continuing operating profit
2.Termination of operating net profit
(II) Classification by ownership
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
1.Net profit attributable to the owners of parent company 848,860,350.64 24,616,425.76
2.Minority shareholders’ equity 351,126,547.11 92,236,542.08
VI. Net after-tax of other comprehensive income -35,057,445.36 -143,912,924.53
Net of profit of other comprehensive income attributable to o -35,057,445.36 -143,912,924.53
wners of the parent company.
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -37,052,653.68 -146,446,202.64
period
1.Re-measurement of defined benefit plans of changes in net
debt or net assets
2.Other comprehensive income under the equity method inve
stee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-37,052,653.68 -146,446,202.64
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into pr 1,995,208.32 2,533,278.11
ofit or loss.
1.Other comprehensive income under the equity method inve 1,995,208.32 2,533,278.11
stee 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
Minority shareholders’ equity
VII. Total comprehensive income 1,164,929,452.39 -27,059,956.69
Total comprehensive income attributable to the owner of the
813,802,905.28 -119,296,498.77
parent company
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
Total comprehensive income attributable minority
351,126,547.11 92,236,542.08
shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.41 0.01
(II)Diluted earnings per share 0.41 0.01
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Zheng Renfa
General Manager：Wang Chunhua, ,
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
Items The first half year of 2021 The first half year of 2020
I. Income from the key business 692,634,698.13 293,579,730.04
Incl：Business cost 367,240,160.93 328,657,958.84
Business tax and surcharge 3,738,582.05 2,414,928.72
Sales expense
Administrative expense 47,922,792.66 40,263,656.49
R & D expense
Financial expenses 127,541,297.15 111,941,828.19
Including：Interest expenses 145,100,046.47 126,623,134.06
Interest income 17,596,981.65 14,718,213.69
Add：Other income 2,125,443.39 1,348,815.87
Investment gain（“-”for loss） 844,032,026.57 513,084,202.15
Including: investment gains from affiliates 119,611,129.91 55,853,351.49
Financial assets measured at amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets -2,889,394.16
Assets disposal income 4.37
II. Operational profit（“-”for loss） 989,459,941.14 324,734,380.19
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
Add ：Non-operational income 655,426.85 1,033,092.43
Less：Non -operational expenses 22,733.31 410,045.97
III. Total profit(“-”for loss) 990,092,634.68 325,357,426.65
Less：Income tax expenses 42,194,605.52 13,012,561.44
IV. Net profit 947,898,029.16 312,344,865.21
1.Net continuing operating profit 947,898,029.16 312,344,865.21
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -35,057,445.36 -143,912,924.53
（I）Other comprehensive income items that will not be
-37,052,653.68 -146,446,202.64
reclassified into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt
or net assets
2.Other comprehensive income under the equity method investee c
an not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-37,052,653.68 -146,446,202.64
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profi 1,995,208.32 2,533,278.11
t or loss
1.Other comprehensive income under the equity method investee c 1,995,208.32 2,533,278.11
an 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 912,840,583.80 168,431,940.68
VII. Earnings per share
（I）Basic earnings per share
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2021 The first half year of 2020
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,575,650,836.44 1,123,228,667.57
Net increase of customer deposits and capital kept for
brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial
bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 77,578.62
Other cash received from business operation 62,165,772.17 111,366,877.57
Sub-total of cash inflow 2,637,816,608.61 1,234,673,123.76
Cash paid for purchasing of merchandise and services 153,110,239.80 118,763,809.79
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 195,340,890.00 174,308,304.27
Taxes paid 448,200,872.16 205,549,293.48
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
Other cash paid for business activities 25,871,389.40 26,388,420.41
Sub-total of cash outflow from business activities 822,523,391.36 525,009,827.95
Net cash generated from /used in operating activities 1,815,293,217.25 709,663,295.81
II. Cash flow generated by investing
Cash received from investment retrieving 22,500,000.00 15,000,000.00
Cash received as investment gains 51,523,258.20 109,322,820.32
Net cash retrieved from disposal of fixed assets,
9,900.00 17,625.00
intangible assets, 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 74,033,158.20 124,340,445.32
Cash paid for construction of fixed assets, intangible
232,853,557.14 216,075,673.05
assets and other long-term assets
Cash paid as investment 95,000,000.00
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 232,853,557.14 311,075,673.05
Net cash flow generated by investment -158,820,398.94 -186,735,227.73
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor
shareholders
Cash received as loans 1,166,930,000.00 1,345,590,000.00
Other financing –related cash received 97,731,650.00 13,180,600.00
Sub-total of cash inflow from financing activities 1,264,661,650.00 1,358,770,600.00
Cash to repay debts 363,908,100.00 1,234,507,500.00
Cash paid as dividend, profit, or interests 609,553,626.92 206,533,215.82
Including: Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities 1,227,774,134.86 1,122,177.00
Sub-total of cash outflow due to financing activities 2,201,235,861.78 1,442,162,892.82
Net cash flow generated by financing -936,574,211.78 -83,392,292.82
15
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
IV. Influence of exchange rate alternation on cash and
cash equivalents
V.Net increase of cash and cash equivalents 719,898,606.53 439,535,775.26
Add: balance of cash and cash equivalents at the
2,846,176,803.89 3,052,977,164.15
beginning of term
VI ..Balance of cash and cash equivalents at the end of
3,566,075,410.42 3,492,512,939.41
term
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2021 The first half year of 2020
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 720,086,995.35 302,123,119.55
Tax returned
Other cash received from business operation 44,973,397.60 63,304,430.86
Sub-total of cash inflow 765,060,392.95 365,427,550.41
Cash paid for purchasing of merchandise and services 17,069,701.31 15,346,627.62
Cash paid to staffs or paid for staffs 61,391,499.13 52,390,979.85
Taxes paid 27,826,685.08 13,428,897.71
Other cash paid for business activities 73,534,284.42 201,770,756.58
Sub-total of cash outflow from business activities 179,822,169.94 282,937,261.76
Net cash generated from /used in operating activities 585,238,223.01 82,490,288.65
II. Cash flow generated by investing
Cash received from investment retrieving 37,500,000.00
Cash received as investment gains 707,197,026.42 358,767,434.26
Net cash retrieved from disposal of fixed assets, intangible assets,
2,600.00 6,300.00
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 744,699,626.42 358,773,734.26
Cash paid for construction of fixed assets, intangible assets and
94,360,520.74 118,535,092.50
other long-term assets
Cash paid as investment 1,246,839,292.00 82,000,000.00
16
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items The first half year of 2021 The first half year of 2020
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 1,341,199,812.74 200,535,092.50
Net cash flow generated by investment -596,500,186.32 158,238,641.76
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 1,166,930,000.00 1,135,000,000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 1,166,930,000.00 1,135,000,000.00
Cash to repay debts 322,573,100.00 1,083,917,500.00
Cash paid as dividend, profit, or interests 178,730,958.24 73,014,375.80
Other cash paid for financing activities 5,916,242.86 1,122,177.00
Sub-total of cash outflow due to financing activities 507,220,301.10 1,158,054,052.80
Net cash flow generated by financing 659,709,698.90 -23,054,052.80
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 648,447,735.59 217,674,877.61
Add: balance of cash and cash equivalents at the beginning of term 1,780,543,319.09 2,790,163,301.78
VI ..Balance of cash and cash equivalents at the end of term 2,428,991,054.68 3,007,838,179.39
17
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com
: Specia Minor
Items mon Total of owners’
Other
Share Sust Capital Shar lized Surplus shareholders’
Preferre Othe Comprehensi risk Retained profit Other Subtotal equity
Capital aina reserves es in reserv reserves equity
d stock r ve Income prov
ble stoc e
ision
debt k
I.Balance at the end 2,090,806 645,969,21 1,167,785,96 7,933,136,4
302,895,877.65 3,725,679,319.35 2,299,180,085.17 10,232,316,584.28
of last year ,126.00 0.48 5.63 99.11
Add: Change of
accounting -433,859.42 -433,859.42 -433,859.42
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
2,090,806 645,969,21 1,167,785,96 7,932,702,6
beginning of current 302,895,877.65 3,725,245,459.93 2,299,180,085.17 10,231,882,724.86
,126.00 0.48 5.63 39.69
year
III.Changed in the 46,064,922 -35,057,445.36 240,435,767.97 251,443,24 -18,562,720.69 232,880,524.17
18
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com
: Specia Minor
Items mon Total of owners’
Other
Share Sust Capital Shar lized Surplus shareholders’
Preferre Othe Comprehensi risk Retained profit Other Subtotal equity
Capital aina reserves es in reserv reserves equity
d stock r ve Income prov
ble stoc e
ision
debt k
current year .25 4.86
（1）Total
813,802,90
comprehensive -35,057,445.36 848,860,350.64 351,126,547.11 1,164,929,452.39
5.28
income
（II）Investment or
decreasing of capital
by owners
1．Ordinary Shares
invested by sharehol
ders
2．Holders of other
equity instruments i
nvested capital
3．Amount of shares
paid and accounted
as owners’ equity
4．Other
（III）Profit -608,424,58
-608,424,582.67 -417,577,776.30 -1,026,002,358.97
allotment 2.67
19
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com
: Specia Minor
Items mon Total of owners’
Other
Share Sust Capital Shar lized Surplus shareholders’
Preferre Othe Comprehensi risk Retained profit Other Subtotal equity
Capital aina reserves es in reserv reserves equity
d stock r ve Income prov
ble stoc e
ision
debt k
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
-608,424,58
owners (or -608,424,582.67 -417,577,776.30 -1,026,002,358.97
2.67
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves (or
to capital shares)
20
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com
: Specia Minor
Items mon Total of owners’
Other
Share Sust Capital Shar lized Surplus shareholders’
Preferre Othe Comprehensi risk Retained profit Other Subtotal equity
Capital aina reserves es in reserv reserves equity
d stock r ve Income prov
ble stoc e
ision
debt k
3．Making up losses
by surplus reserves.
4.Change amount of
defined benefit plans
that carry forward
Retained earnings
5．Other
comprehensive
income carry-over
retained earnings
6．Other
(V). Special reserves
1. Provided this year
2．Used this term
46,064,922 46,064,922.
（VI）Other 47,888,508.50 93,953,430.75
.25 25
IV. Balance at the 2,090,806 692,034,13 1,167,785,96 8,184,145,8
267,838,432.29 3,965,681,227.90 2,280,617,364.48 10,464,763,249.03
end of this term ,126.00 2.73 5.63 84.55
21
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount in last year
In RMB
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less
Com
: Specia Minor
Items Total of
Other mon
Share Sus Capital Shar lized Surplus shareholders’
Preferr Comprehensi risk Retained profit Other Subtotal owners’ equity
Capital tain Othe reserves es in reserv reserves equity
ed ve Income provi
able r stoc e
stock sion
deb k
t
I.Balance at the 2,090,806,1 3,094,017,12 1,074,553,052.8 10,557,360,46
382,193,344.90 3,915,790,810.76 2,139,676,884.88 12,697,037,348.66
end of last year 26.00 9.31 1 3.78
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
2,090,806,1 3,094,017,12 1,074,553,052.8 10,557,360,46
beginning of 382,193,344.90 3,915,790,810.76 2,139,676,884.88 12,697,037,348.66
26.00 9.31 1 3.78
current year
III.Changed in the 6,722,106.00 -143,912,924.53 -875,004,927.61 -1,012,195,746 -68,658,149.29 -1,080,853,895.43
22
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less
Com
: Specia Minor
Items Total of
Other mon
Share Sus Capital Shar lized Surplus shareholders’
Preferr Comprehensi risk Retained profit Other Subtotal owners’ equity
Capital tain Othe reserves es in reserv reserves equity
ed ve Income provi
able r stoc e
stock sion
deb k
t
current year .14
（1）Total
-119,296,498.7
comprehensive -143,912,924.53 24,616,425.76 92,236,542.08 -27,059,956.69
7
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Shar
es invested by sha
reholders
2．Holders of oth
er equity instrume
nts invested capit
al
3．Amount of
shares paid and
accounted as
owners’ equity
23
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less
Com
: Specia Minor
Items Total of
Other mon
Share Sus Capital Shar lized Surplus shareholders’
Preferr Comprehensi risk Retained profit Other Subtotal owners’ equity
Capital tain Othe reserves es in reserv reserves equity
ed ve Income provi
able r stoc e
stock sion
deb k
t
4．Other
（III）Profit -899,621,353.3
-899,621,353.37 -167,353,185.37 -1,066,974,538.74
allotment 7
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to
-882,320,185.1
the owners (or -882,320,185.17 -167,353,185.37 -1,049,673,370.54
7
shareholders)
4．Other -17,301,168.20 -17,301,168.20 -17,301,168.20
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves
24
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less
Com
: Specia Minor
Items Total of
Other mon
Share Sus Capital Shar lized Surplus shareholders’
Preferr Comprehensi risk Retained profit Other Subtotal owners’ equity
Capital tain Othe reserves es in reserv reserves equity
ed ve Income provi
able r stoc e
stock sion
deb k
t
(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
25
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less
Com
: Specia Minor
Items Total of
Other mon
Share Sus Capital Shar lized Surplus shareholders’
Preferr Comprehensi risk Retained profit Other Subtotal owners’ equity
Capital tain Othe reserves es in reserv reserves equity
ed ve Income provi
able r stoc e
stock sion
deb k
t
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this term
（VI）Other 6,722,106.00 6,722,106.00 6,458,494.00 13,180,600.00
IV. Balance at the 2,090,806,1 3,100,739,23 1,074,553,052.8 9,545,164,717.
238,280,420.37 3,040,785,883.15 2,071,018,735.59 11,616,183,453.23
end of this term 26.00 5.31 1 64
26
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2021
Other Equity instrument
Less:
Other Specializ
Items Preferr Sust Capital Shares Surplus Total of owners’
Share capital Comprehensive ed Retained profit Other
ed aina Other reserves in reserves equity
Income reserve
stock ble stock
debt
I.Balance at the end 2,090,806,126.0 938,969,546. 987,813,698.0
302,895,877.65 3,667,543,163.36 7,988,028,411.87
of last year 0 79 7
Add: Change of
accounting -433,859.42 -433,859.42
policy
Correcting of
previous errors
Other
II.Balance at the
2,090,806,126.0 938,969,546. 987,813,698.0
beginning of current 302,895,877.65 3,667,109,303.94 7,987,594,552.45
0 79 7
year
III.Changed in the
-3,778,219.25 -35,057,445.36 339,473,446.49 300,637,781.88
current year
（I）Total
comprehensive -35,057,445.36 947,898,029.16 912,840,583.80
income
27
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2021
Other Equity instrument
Less:
Other Specializ
Items Preferr Sust Capital Shares Surplus Total of owners’
Share capital Comprehensive ed Retained profit Other
ed aina Other reserves in reserves equity
Income reserve
stock ble stock
debt
(II) Investment or
decreasing of capital
by owners
1．Ordinary Shares i
nvested by sharehold
ers
2 ． Holders of other
equity instruments in
vested capital
3.Amount of shares
paid and accounted
as owners’ equity
4．Other
（III）Profit
-608,424,582.67 -608,424,582.67
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or -608,424,582.67 -608,424,582.67
shareholders)
28
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2021
Other Equity instrument
Less:
Other Specializ
Items Preferr Sust Capital Shares Surplus Total of owners’
Share capital Comprehensive ed Retained profit Other
ed aina Other reserves in reserves equity
Income reserve
stock ble stock
debt
3．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or
to capital shares)
3．Making up losses
by surplus reserves.
4.Change amount of
defined benefit plans
that carry forward
Retained earnings
5．Other
comprehensive
income carry-over
retained earnings
29
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The first half year of 2021
Other Equity instrument
Less:
Other Specializ
Items Preferr Sust Capital Shares Surplus Total of owners’
Share capital Comprehensive ed Retained profit Other
ed aina Other reserves in reserves equity
Income reserve
stock ble stock
debt
6．Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other -3,778,219.25 -3,778,219.25
IV. Balance at the 2,090,806,126.0 935,191,327. 987,813,698.0
267,838,432.29 4,006,582,750.43 8,288,232,334.33
end of this term 0 54 7
30
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount in last year
In RMB
The first half year of 2020
Other Equity
instrument
Speci
Pref Other
Items Share Capital alized Retained Total of owners’
erre Sust Less: Shares in stock Comprehensive Surplus reserves Other
Capital Othe reserves reserv profit equity
d aina Income
r e
stoc ble
k debt
I.Balance at 2,090,
2,974,458, 3,710,584,722
the end of last 806,12 382,193,344.90 894,580,785.25 10,052,623,675.76
696.93 .68
year 6.00
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II.Balance at
2,090,
the beginning 2,974,458, 3,710,584,722
806,12 382,193,344.90 894,580,785.25 10,052,623,675.76
of current 696.93 .68
6.00
year
III.Changed 3,954,180. -143,912,924.53 -569,975,319. -709,934,064.49
31
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
in the current 00 96
year
（I）Total
312,344,865.2
comprehensiv -143,912,924.53 168,431,940.68
1
e income
(II)
Investment or
decreasing of
capital by
owners
1． Ordinary
Shares invest
ed by shareho
lders
2． Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
（III）Profit -882,320,185.
-882,320,185.17
allotment 17
32
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
1.Providing
of surplus
reserves
2．Allotment
to the owners -882,320,185.
-882,320,185.17
(or 17
shareholders)
3．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making up
losses by
surplus
reserves.
33
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensiv
e income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term
3,954,180.
（VI）Other 3,954,180.00
00
IV. Balance at 2,090,
2,978,412, 3,140,609,402
the end of 806,12 238,280,420.37 894,580,785.25 9,342,689,611.27
876.93 .72
this term 6.00
34
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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.
35
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722
shares held by directors, supervisors and senior executives are temporarily frozen) were listed on February 5,
2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized
capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000,
i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May
22, 2001.
11 ． On March 8, 2004,As approved by China Securities Regulatory Commission by document
Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at the
shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “The
approval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the share
equity relocation and transformation. On October 9 2006, according to the “Circular about implementing of share
equity relocation and relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’
s A shares was restored from “G-Expressway” “Expressway A”.
Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to
Parties such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by
Guangdong Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares
and paid RMB 803.50 million to Guangdong Provincial Expressway Co., Ltd for purchasing the 25% stake of
Guangdong Provincial Fokai Expressway Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; and
issued 466,325,020 shares to Guangdong Provincial Highway Construction Co., Ltd for purchasing the 100%
stake of Guangzhou Guangzhu Traffic Investment Management Co., Ltd held by Guangdong Provincial Highway
Construction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095 A-shares to Yadong
Fuxing Yalian Investment Co.,Ltd, Tibet Yinyue Investment Management Co.,Ltd and GF Securities Co.,Ltd.
The issuance of shares have been registered on July 7, 2016, the new shares will be listed on July 8, 2016.
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 technologycal industries and provision of relevant
consultation while investing in Shenzhen Huiyan Expressway Co., Ltd.,
36
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,
Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd., Guangdong Yuepu Small Refinancing
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., Yuegao Capital Holding (Guangzhou) Co., Ltd., its holding subsidiaries Guangfo
Expressway Co., Ltd., Jingzhu Expressway Guangzhu Section Co., Ltd. and Guanghui Expressway Co., Ltd..
(2) Changes in the scope of consolidated financial statements in the current period
None
5. Approval and submission date of financial report
The financial statements have been authorized for issuance by the 21st meeting of the Ninth Board of Directors of
the Group on August 26 ,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
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are recognized and measured in accordance with the regulations in
the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial
position, business result and cash flow of the Company as of June 30, 2021 and from January to June 2021,. In
addition, the financial statements of the Company comply, in all material respects, with the revised disclosing
37
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
requirements for financial statements and the Compilation Rules for Information Disclosure by Companies
Offering Securities to the Public No.15—General Provisions on Financial Reports (2014 Revision) issued by
China Securities Regulatory Commission (CSRC) in 2014.
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim period
refers to the reporting period shorter than a complete annual period. The accounting period of the Company is the
calendar year from January 1 to December 31.
3.Operating cycle
The normal operating cycle refers to the period from the time when the Group purchases assets for processing to
the time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses it
as a criterion for liquidity classification of assets and liabilities.
4.Standard currency for bookkeeping
The Company adopts CNY to prepare its functional statements.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control
1.Business Combinations under the Same Control
If business participating in the combination are ultimately controlled by the same party or parties before and
after the combination, and the control is not temporary, it is an business combination under the same control.
Usually, business combination under the same control refers to the combination between business within the same
business, except which it is generally not regarded as business combination under the same control.
The assets and liabilities obtained by the Company as the combining party in the business combination shall
be measured according to the book value of the combined party in the consolidated financial statements of the
ultimate controlling party on the combination date. For the long-term equity investment formed by holding
combination under the same control, the company takes the share of the book owner's equity of the combined
party on the combination date as the initial investment cost for forming the long-term equity investment. See the
long-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorption
and combination under the same control shall be recorded by the Company according to the original book value of
the related assets and liabilities in the combined party. The company adjusts the capital reserve according to the
difference between the book value of the net assets obtained and the book value of the combination consideration
paid (or the total par value of the issued shares); If the capital reserve is insufficient to offset, the retained earnings
shall be adjusted.
All directly related expenses incurred by the Company as a combining party for business combination,
including audit fees, evaluation fees, legal service fees, etc., are included in the current profits and losses when
incurred.
Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial
measurement amount of bonds and other debts issued. Fees, commissions and other expenses incurred in issuing
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
38
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
company shall prepare consolidated financial statements on the consolidation date, including consolidated balance
sheet, consolidated income statement and consolidated cash flow statement.
For the consolidated balance sheet, the book value of the combined party in the consolidated financial
statements of the ultimate controlling party shall be incorporated into the consolidated financial statements, and
the transactions between the combining party and the combined party on the consolidation date and the previous
period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated
Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash
flow realized by the combining party and the combined party from the beginning of the current consolidation
period to the consolidation date, and involve the cash flow generated by the transactions and internal transactions
between the two parties in the current period, which shall be offset according to the relevant principles of the
consolidated financial statements.
2. If the parties involved in the combination are not ultimately controlled by the same party or parties before
and after the combination, it is a business combination not under the same control.
Business Combinations not under the Same Control
Determine the cost of business combination: the cost of business combination includes the fair value of cash
or non-cash assets paid by the purchaser for business combination, debts issued or assumed, and equity securities
issued on the purchase date.
In the business combination not under the same control, the intermediary expenses such as auditing, legal
services, evaluation and consultation and other related management expenses incurred by the purchaser for the
business combination shall be included in the current profits and losses when they occur; Transaction costs of
equity securities or debt securities issued by the purchaser as combination consideration shall be included in the
initial recognized amount of equity securities or debt securities.
For the long-term equity investment obtained by holding combination not under the same control, the
company takes the combination cost determined on the purchase date (excluding cash dividends and profits that
should be collected from the investee) as the initial investment cost for the long-term equity investment of the
purchaser; All identifiable assets and liabilities obtained by absorption and combination under different control
that meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on
the date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the
purchaser or various identifiable assets and liabilities, the difference between the fair value of the relevant
non-monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of the
assets and recorded in the income statement of the current consolidation period.
In a business combination not under the same control, the difference between the cost of business
combination and the fair value share of identifiable net assets of the purchaser obtained in the combination is
recognized as goodwill; In the case of absorption and combination, the difference is recognized as goodwill in the
individual financial statements of the parent company; In the case of holding combination, the difference is listed
as goodwill in the consolidated financial statements.
The cost of business combination is less than the difference between the fair value share of identifiable net
assets acquired during the combination, which is included in the profits and losses (non-operating income) of the
current combination period after review by the Company. In the case of absorption and combination, the
difference is included in the individual income statement of the parent company in the current combination period;
In the case of holding combination, the difference is included in the consolidated income statement of the current
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
is not a package transaction, the equity of the purchased party held before the purchase date shall be re-measured
according to the fair value of the equity on the purchase date, and the difference between the fair value and its
book value shall be included in the current investment income; If the equity of the purchased party held before the
purchase date involves other comprehensive income, other comprehensive income related to it shall be converted
into the investment income of the current period on the purchase date, except for other comprehensive income
arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the
invested party.
6. Compilation method of consolidated financial statements
(1) Consolidation scope
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
means that the Company has the power over the investee, is entitled to variable returns by participating in the
related activities of the investee, and has the ability to use the power over the investee to influence its return
amount. Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of
investee(s), structured subjects, etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements of the Company are based on the financial statements of the parent
company and its subsidiaries, and are prepared according to other relevant information. When compiling, the
important internal transactions between the parent company and its subsidiaries, such as investment, transactions,
purchase and sale of inventories and their unrealized profits, are offset and combined item by item, and the
minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the
accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company, the
accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting
periods of the parent company before combination.
(3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period
During the reporting period, when preparing the consolidated balance sheet, the balance at the beginning of
the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same
control. When preparing the consolidated balance sheet, the balance at the beginning of the year of the
consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the
same control. During the reporting period, the subsidiaries are disposed of and the balance at the beginning of the
consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.
During the reporting period, the income, expenses and profits of subsidiaries added by business combination
under the same control from the beginning to the end of the reporting period are included in the consolidated
income statement, and the cash flows from the beginning to the end of the reporting period are included in the
consolidated cash flow statement. For subsidiaries added due to business combination not under the same control,
the income, expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are
included in the consolidated income statement, and their cash flow from the purchase date to the end of the
reporting period is included in the consolidated cash flow statement. During the reporting period, the subsidiary is
disposed of, and the income, expenses and profits from the beginning of the period to the disposal date are
included in the consolidated income statement, and the cash flow from the beginning of the period to the disposal
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
When converting foreign currency financial statements, the Company shall comply with the following
regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date,
and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of
occurrence; The income and expense items in the income statement shall be converted at the spot rate on the
transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot
rate on the transaction date). The translation difference of foreign currency financial statements generated
according to the above translation is recognized as other comprehensive income. The conversion of comparative
financial statements shall be handled according to the above provisions.
10.Financial instruments
The Company recognizes the financial assets or liabilities when involved in financial instruments’
agreements.
（1）Classification, recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractual
cash flow of financial assets, the Company classifies financial assets into: financial assets measured in amortized
cost; financial assets measured at fair value and their's changes are included in other comprehensive income;
financial assets measured at fair value and their's changes are included in current profits and losses.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value, whose changes are included in current profits and losses, relevant transaction costs are directly included
in current profits and losses; For other types of financial assets, relevant transaction costs are included in the
initial recognition amount.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements, that is, the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets, the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.
②Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow,
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculated
according to the actual interest rate method are included in current profits and losses.
In addition, the Company designated some non-trading equity instrument investments as financial assets
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition, the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets, the Company adopts fair value for
subsequent measurement, and includes changes in fair value into current profits and losses.
（2）Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.
1 Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting, changes in fair value are included in current
profits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset, financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,
measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: ①The
contractual right to collect the cash flow of the financial asset is terminated; ②The financial asset has been
transferred, and almost all the risks and rewards in the ownership of the financial asset have been transferred to
the transferee; ③The financial asset has been transferred, although the enterprise neither transfers nor retains
almost all the risks and rewards in the ownership of the financial asset, but it abandoned control of the financial
assets.
In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets
ownership nor waive to control these assets, relevant financial assets shall be recognized in accordance with the
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
correspondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to the
risk level that the enterprise faces resulting from the change of the value of the financial asset.
If the overall transfer of the financial assets satisfies the derecognition criteria, the difference between the
book value of the transferred financial assets and the sum of the consideration received from transfer and
cumulative change in fair value previously recognized in other comprehensive income is accounted into the
current profit or loss.
In case that the partial transfer of financial assets meets de-recognition conditions, the book value of
financial assets transferred shall be allocated as per respective fair value between de-recognized or not
de-recognized parts, and the difference between the sum of the consideration received due to transfer with the
accumulated amount of fair value changes that is previously included in other comprehensive income and shall be
allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or
loss.
The Company shall determine whether almost all the risks and rewards of the ownership of the financial
assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee, the
confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the
financial asset have been retained, the confirmation of the financial asset shall not be terminated; if neither the
transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.
In case of remuneration, it shall continue to determine whether the enterprise has retained control over the assets
and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets
and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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
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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition, the credit risk of the
financial asset is significantly increased. Except for special circumstances, the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk, such as
the related party's receivables, the receivables in dispute with the other party or involving litigation and arbitration,
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment, etc.
In addition to the financial assets that assess credit risk individually, the Company shall divide financial
assets into different groups based on common risk characteristics, and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration, the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision, the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision, the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
①Receivable Account and Contract assets
In regard to receivables without significant financing components, the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.
In regard to accounts receivable with significant financing components, the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.
In addition to the accounts receivable that assesses the credit risk individually, receivables are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit risk.
Portfolio 2 ： Quality Guarantee This portfolio is the contract quality guarantee fund and other funds
portfolio
For the above portfolio 1, the measurement method of bad debts reserve is the aging analysis method,
specifically as follows：
Aging Proportion （%）
Within 1 year（Including 1 year） 0
1-2 years 10
2-3 years 30
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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
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 V. 11, Impairment of Financial Instruments for the determination method and accounting treatment
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
method of expected credit loss of contract assets.
14. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
① The initial investment cost of long-term equity investment formed by business combination shall be
determined in accordance with the following provisions:
A. In a business combination under the same control, if the combining party pays cash, transfers non-cash
assets or assumes debts as the combination consideration, the share of the book value of the owner's equity of the
merged party in the consolidated financial statements of the final controlling party shall be taken as the initial
investment cost of long-term equity investment on the combination date. The difference between the initial
investment cost of long-term equity investment and the cash paid, the transferred non-cash assets and the book
value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset,
the retained earnings shall be adjusted. All directly related expenses incurred for business combination, including
audit fees, evaluation fees, legal service fees, etc., are included in the current profits and losses when they occur.
B. In the business combination not under the same control, the Company determines the combination cost by
distinguishing the following situations:
a) For business combination realized by one exchange transaction, the cost of combination is the fair value of
assets paid, liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;
b) For business combination realized step by step through multiple exchange transactions, the sum of the
book value of the equity investment of the purchased party held before the purchase date and the new investment
cost on the purchase date shall be taken as the initial investment cost of the investment;
c) Intermediary expenses such as auditing, legal services, evaluation and consultation, and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur;
d) If future events that may affect the combination cost are agreed in the combination contract or agreement,
if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the
combination cost can be reliably measured, they will be included in the combination cost.
② Except for the long-term equity investment formed by business combination, the initial investment cost
of long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
A. For the long-term equity investment obtained by cash payment, the actual purchase price shall be taken as
the initial investment cost. Initial investment cost includes expenses, taxes and other necessary expenditures
directly related to obtaining long-term equity investment.
B. For long-term equity investment obtained through exchange of non-monetary assets, the initial investment
cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of
Non-monetary Assets.
C. For long-term equity investment obtained through debt restructuring, the initial investment cost shall be
determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.
③ No matter how the long-term equity investment is obtained, when the investment is obtained, the cash
dividends or profits included in the paid consideration that have been declared but not yet issued by the investee
are separately accounted as receivable items, which does not constitute the initial investment cost of obtaining the
long-term equity investment.
(2) Subsequent measurement
Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.
① Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.
If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee, the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment, the difference shall be included in the
current profits and losses, and the cost of long-term equity investment shall be adjusted at the same time.
After obtaining the long-term equity investment, the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit, and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee, the book value of
long-term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss, other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee, the net profit of the investee is recognized after adjustment based on the fair value of the
identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company, the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company, and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee, unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future, the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
amount.
When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee, the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed, and the part attributable to the Company shall be offset, and
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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.
15.Investment Property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.
（1）The measurement mode of investment property
①Depreciation or amortization method
The estimated service life, net salvage value rate and annual depreciation (amortization) rate of investment
real estate are listed as follows:
Type Estimated service life Estimated net salvage 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.
16.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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
（2）Depreciation method
①The Company's fixed assets include roads and bridges, houses and buildings, machinery and equipment,
electronic equipment, transportation tools and other equipment.
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.
② For the fixed assets formed by special reserve expenditure, the special reserve shall be offset according to
the cost to form the fixed assets, and the accumulated depreciation of the same amount shall be recognized. The
fixed assets will not be depreciated in future periods.
According to the nature and usage of fixed assets, the Company determines the service life and estimated net
salvage value of fixed assets. At the end of the year, the service life, estimated net salvage value and depreciation
method of fixed assets shall be rechecked, and if there is any difference with the original estimate, corresponding
adjustments shall be made.
The useful life, residual value rate, and annual depreciation rate of various fixed assets are listed as follows:
Depreciation Expected useful Residual rate Annual depreciation
Type
method life(Year) （%） rate(%)
Highway and Bridge
Including：Guangfo Expressway Working flow 28 years 0%
basis
Fokai Expressway-Xiebian to Sanbao Section Working flow 40 years 0%
basis
Fokai Expressway-Sanbao to Shuikou Section Working flow 47.5 years 0%
basis
Working flow 30 years 0%
Jingzhu Expressway Guangzhu Section
basis
Working flow 23 years 0%
Guanghui Expressway Co., Ltd.
basis
House Building The straight-line 20-30 years 3%-5% 3.17%-4.85%
method
The straight-line 3-10 years 3%-5% 9.50%-32.33%
Machine Equipment
method
The straight-line 5-8 years 3%-5% 11.88%-19.40%
Transportation Equipment
method
The straight-line 5 years 3%-5% 19.00%-19.40%
Other
method
(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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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.
17.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.
18.Borrowing cost
(1) Recognition principle and capitalization period of borrowing cost capitalization
Borrowing costs incurred by the Company can be directly attributed to the purchase, construction or
production of assets that meet the capitalization conditions, and shall be capitalized when the following conditions
are met at the same time and included in the relevant asset costs:
① Production and expenditure have occurred;
② Borrowing costs have already occurred;
③ The purchase, construction or production activities required to make the assets reach the intended usable
or saleable state have started.
Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are
abnormally interrupted in the process of purchase, construction or production, and the interruption time
continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased, built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state, the
capitalization of borrowing costs will continue.
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased, built
or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as
expenses in the current period.
(2) Calculation method of capitalization amount of borrowing costs
Where a special loan is borrowed for the purpose of purchasing, building or producing assets that meet the
capitalization conditions, it shall be determined by deducting the interest income obtained by depositing unused
loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the
investment income obtained by temporary investment.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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.
19.Intangible assets
(1) Pricing method, useful life and impairment test
The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as
intangible assets, which have no physical form, and the estimated future economic benefits related to the assets
are likely to flow into the enterprise and the cost of the assets can be reliably measured.
The intangible assets of the Company are recorded according to the amount actually paid or the determined
value.
(1) If the purchase price of intangible assets exceeds the normal credit conditions, which is of financing
nature in essence, the cost of intangible assets is determined based on the present value of the purchase price. The
difference between the actual paid price and the present value of the purchase price shall be included in the current
profits and losses within the credit period, except that it should be capitalized according to the regulations.
(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the
investment contract or agreement, unless the value agreed in the contract or agreement is unfair.
(3) The expenditure of internal research and development projects of the Company is divided into research
stage expenditure and development stage expenditure. Research refers to an original and planned investigation to
acquire and understand new scientific or technical knowledge. Development refers to the application of research
results or other knowledge to a plan or design to produce new or substantially improved materials, devices and
products before commercial production or use.
Expenditures during the research phase of internal research and development projects are included in the
current profits and losses when they occur. Expenditures in the development stage of internal research and
development projects that meet the following conditions are recognized as intangible assets: it is technically
feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the
intangible assets and use or sell them; The ways in which intangible assets generate economic benefits, including
those that can prove that there is a market for products produced by using the intangible assets or that the
intangible assets themselves exist in the market, and that the intangible assets will be used internally, should prove
their usefulness; Have sufficient technical, financial and other resources to complete the development of the
intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the
development stage of the intangible assets can be measured reliably.
Intangible assets with limited service life of the Company shall be amortized on average within the service
life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.
The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its
cost. For intangible assets for which impairment provision has been made, the accumulated amount of impairment
provision for intangible assets has to be deducted.
The amortization period of intangible assets with limited service life is as follows:
Type Amortization period
Land use right Remaining useful life
Software 3-5 years
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Type Amortization period
Toll road franchises Operating period for residual charges
20. 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.
21. 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.
22. 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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
（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.
23.Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the obligations related to contingencies stipulated by the Company meet the following conditions at the
same time, they are recognized as estimated liabilities:
① The obligations are the current obligations undertaken by the enterprise;
② Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
③ The amount of the obligations can be measured reliably.
(2) Measurement method of estimated liabilities
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations. There is a continuous range of required expenditure, and the possibility of occurrence
of various results in this range is the same, and the best estimate is determined according to the intermediate value
in this range. In other cases, the best estimates are treated as follows:
① Contingencies involving a single item shall be determined according to the most probable amount.
② Contingencies involving multiple items shall be calculated and determined according to various possible
results and relevant probabilities.
When determining the best estimate, the risk, uncertainty and time value of money related to contingencies
shall be considered comprehensively. If the time value of money has great influence, the best estimate is
determined by discounting the related future cash outflow.
If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be
compensated by a third party, the compensation amount can be recognized as an asset only when it is basically
confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the
estimated liabilities.
The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate, the book value shall be
adjusted according to the current best estimate.
24. 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
consumes the economic benefits brought by the company's performance while the company performs the contract;
② The customer can control the goods under manufacturing or services during the company's performance; ③
The goods or services produced during the company's performance have irreplaceable uses, and the company has
the right to accumulate for the completed performances during the entire contract period.
For obligations performed within a certain period of time, the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined, and
the cost incurred is expected to be compensated, the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time, revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product, the company shall consider the
following points: ① The company has the current right to receive payment for the product, that is, the customer
has the current payment obligation for the product; ② The company has transferred the legal ownership of the
product to the customer, that is, the customer has the legal ownership of the product; ③ The company has
transferred the physical product to the customer, that is, the customer has physically taken possession of the
product; ④ The company has transferred the main risks and rewards on the ownership of the product to the
customer, that is, the customer has obtained the main risks and rewards on the ownership of the product; ⑤ The
customer has accepted the product; ⑥ Other signs that the customer has obtained control of the product.
(2) Principle of revenue measurement
① The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers, while does not include payments received
on behalf of third parties and payments expected to be returned to customers.
② If there is variable consideration in the contract, the company shall determine its best estimate according
to the expected value or the most likely amount, but the transaction price including the variable consideration shall
not exceed the accumulated amount that, if relevant uncertainty is eliminated, will most likely have no significant
reversal.
③ If there is any significant financing component in the contract, the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or services.
The difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract, if the company expects that the customer will
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
obtain control of the goods or services and pays the price within one year, the significant financing component in
contract shall not be considered.
④ If the contract contains two or more performance obligations, the company shall, on date of the contract,
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.
The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
(3) Specific methods of revenue recognition
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
(2) Income from providing labor services
For services started and completed in the same fiscal year, income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years, the Company shall,
on the balance sheet date, recognize the related labor income by the percentage of completion method, provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;
③ the degree of completion of labor services can be reliably determined.
For services started and completed in the same fiscal year, income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years, the Company shall,
on the balance sheet date, recognize the related labor income by the percentage of completion method, provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied, the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the
enterprise;
If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably, the
following situations shall be dealt with respectively:
① If the labor cost already incurred is expected to be compensated, the income from the service shall be
recognized according to the amount of the labor cost already incurred, and the labor cost shall be carried over at
the same amount.
② If the incurred labor cost is not expected to be compensated, the incurred labor cost shall be included in
the profits and losses of the current period, and the income from the provision of labor service shall not be
recognized.
When the contracts or agreements signed between the Company and other enterprises include selling goods
and providing services, if the part for selling goods and the part for providing services can be distinguished and
measured separately, the part for selling goods will be treated as goods sales and the part for providing services
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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
25.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 for
contract performance cost: ① The 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 because of the contract; ② This cost increases the resources of the Company for fulfilling its
performance obligations in the future; ③ The cost is expected to be recovered.
Assets related to the contract cost are amortized on the same basis as the recognition of commodity income
related to the assets, and are included in the current profits and losses.
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
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,
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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) Lease accounting policy
Lease refers to a contract in which the Company assigns or obtains the right to control the use of one or more
identified assets within a certain period of time in exchange for or payment of consideration. On the start date of a
contract, the Company assesses whether the contract is a lease or includes a lease.
①The Company as the lessee
A. Initial measurement
At the beginning of the lease period, the Company recognizes the right to use the leased asset during the
lease period as a right-of-use asset, and recognizes the present value of unpaid lease payments as a lease liability,
except for short-term leases and leases of low-value assets. When calculating the present value of lease payments,
the Group uses the interest rate implicit in the lease as the discount rate; if the interest rate implicit in the lease
cannot be determined, the lessee’s incremental borrowing interest rate is used as the discount rate.
B. Follow-up measurement
The Company refers to the " No. 4 Accounting Standards for Business Enterprises—Fixed Assets" related
depreciation provisions for the depreciation of the right-of-use assets (see "This Section V. Important Accounting
Policies and Accounting Estimates-16, Fixed Assets" for details). For the ownership of the leased asset at the end
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
of the lease term can be reasonably determined, the Company shall accrue depreciation during the remaining
useful life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can
be obtained when the lease term expires, the Company shall accrue depreciation during the period of which is
shorter of the lease term and the remaining useful life of the leased asset.
For lease liabilities, the Company calculates its interest expenses during each period of the lease term in
accordance with a fixed periodic interest rate, which is included in the current profit and loss or included in the
cost of related assets. Variable lease payments that are not included in the measurement of lease liabilities are
included in the current profit and loss or the cost of related assets when they actually occur.
After the start date of the lease term, when the actual fixed payment amount changes, the estimated amount
payable of the guarantee residual value changes, the index or ratio used to determine the lease payment changes,
the purchase option, the lease renewal option, or the evaluation result of the termination option, or the actual
exercise situation changes, the Company remeasures the lease liability according to the present value of the lease
payment after the change, and adjusts the book value of the right-of-use asset accordingly. If the book value of the
right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the Company
will include the remaining amount in the current profit and loss.
C. Short-term leases and low-value asset leases
For short-term leases (leases whose lease term does not exceed 12 months from the lease start date) and
low-value asset leases, the Company adopts a simplified approach, and does not recognize the right-of-use assets
and lease liabilities, yet uses the straight-line method during each period of the lease term or other systematic and
reasonable methods to include the lease payment in the relevant asset cost or current profit and loss.
②The Company as the lessor
Based on the nature of the transaction, the Company divides leases into financial leases and operating leases
on the lease start date. Finance lease refers to a lease that has substantially transferred almost all the risks and
rewards related to the ownership of the leased asset. Operating leases refer to leases other than financial leases.
A. Operating lease
The Company will include the assets used for operating leases in the relevant items in the balance sheet
according to the nature of the assets; for operating leases, the rents of operating leases shall be recognized as
current profits and losses during each period of the lease period according to the straight-line method; the initial
direct costs incurred shall be included in the current profit and loss; for fixed assets in operating lease assets, the
depreciation policy of similar assets is used for depreciation; for other operating lease assets, a systematic and
reasonable method is used for amortization; contingent rents are included in current profit and loss when they
actually occur .
B. Financial leasing
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.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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.
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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
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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
materials, construction in progress, intangible assets (except those with uncertain service life), and conducts
impairment test when there are signs of impairment-estimating their recoverable amount. The recoverable amount
is determined by the higher of the net amount of the fair value of the asset minus the disposal expenses and the
present value of the estimated future cash flow of the asset. If the recoverable amount of an asset is lower than its
book value, the book value of the asset shall be written down to the recoverable amount, and the written-down
amount shall be recognized as the asset impairment loss, which shall be included in the current profits and losses,
and the corresponding asset impairment reserve shall be accrued at the same time.
If there are signs that an asset may be impaired, the Company usually estimates its recoverable amount on the
basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset, the recoverable
amount of the asset group is determined based on the asset group to which the asset belongs.
Asset group is the smallest asset portfolio that can be recognized by the Company, and its cash inflow is
basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The
identification of asset group is based on whether the main cash inflow generated by asset group is independent of
other assets or cash inflow of asset group.
The Company conducts impairment test every year for intangible assets with uncertain goodwill and service
life formed by business combination and not yet in serviceable condition, regardless of whether there is any sign
of impairment. The impairment test of goodwill is carried out in combination with its related asset group or
combination of asset groups.
Once the asset impairment loss is confirmed, it will not be reversed in the following accounting period.
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 signif icance 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
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
fair value measurement levels.
32.Change of main accounting policies and estimations
(1)Change of main accounting policies
Accounting policy changes caused by the implementation of the new lease standard
The Ministry of Finance issued the " No. 21 Accounting Standards for Business Enterprises-Leases (2018
Revision)" (No. 35-[2018] Cai Kuai) (hereinafter referred to as the "New Lease Standards") on December 7, 2018.
After a resolution approved in the sixteenth meeting of the ninth term of the board of directors of the Company on
March 25, 2021, the Company will implement the aforementioned new lease standards from January 1, 2021, and
make changes to relevant accounting policies in accordance with the provisions of the new lease standards.
According to the provisions of the new lease standard, the Company reassess whether the contract that exists
before the first implementation date is a lease or includes a lease. For the lease contract in which it’s the lessee,
the Company chooses to adjust only the cumulative impact of the lease contract that has not been completed on
January 1, 2021. The amount of cumulative impact of the first implementation adjusts the amount of retained
earnings and other related items in the financial statements at the beginning of the first implementation period (ie
January 1, 2021), and no adjustment will be made to the comparable period information. For the operating lease
on the first implementation date, the lessee measures the lease liability based on the present value of the remaining
lease payments discounted at the incremental borrowing rate on the first implementation date.
The Company chooses an amount equal to the lease liability according to each lease, and measures the
right-of-use assets according to necessary adjustments based on the prepaid rent. And in accordance with the “No.
8 Accounting Standards for Business Enterprises-Asset Impairment", the impairment test of the right-of-use assets
is carried out and the corresponding accounting treatments are carried out.
The impact of the implementation of the above accounting policy changes on the financial statements on
January 1, 2021 is as follows:
December 31,2020（Before change） January 1,2021（After change）
Items Consolidated
Consolidated statements Parent Company Parent Company
statements
Prepayments 3,607,538.01 2,181,215.03 2,831,124.98 1,404,802.00
Long term share
2,382,381,165.60 5,529,362,536.53 2,381,947,306.18 5,528,928,677.11
equity investment
Use right assets 23,154,055.78 21,927,040.99
Long-germ expenses
3,462,122.00 2,454,375.00
to be amortized
Lease liability 12,245,214.89 12,133,352.33
Non-current liability
266,328,017.47 190,331,701.48 275,452,698.33 199,348,977.11
due within 1 year
Retained profit 3,725,679,319.35 3,667,543,163.36 3,725,245,459.93 3,667,109,303.94
（2）Significant estimates changes
The Company held the nineteenth (temporary) meeting of the ninth board of directors on June 28, 2021. At
the meeting, the "Proposal on Changes in Accounting Estimates" was passed and the company agreed to the
depreciation period of the Sanbao-Shuikou section of the expressway has been changed, and the depreciation
period has been extended to June 14, 2044. For this matter, the Company adopted the future application method.
This change in accounting estimates resulted in a decrease of 15,277,465.25 yuan and 291,029.46 yuan
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
respectively in the current period of fixed asset depreciation and intangible asset amortization compared with the
original accounting estimates, thus the operating costs decreased by 15,568,494.71 yuan and the net profit
increased by 11,676,371.03 yuan, and the net profit attributable to shareholders of the parent company increased
by RMB 11,676,371.03. The impact on the financial statement items is as follows:
Time point at Affected report Impact amount
Contents and causes of
Approval which the items
changes in accounting
procedure application
estimates
begins
Guangdong Provincial Fixed assets 15,277,465.25
Department of Transportation
Intangible assets 291,029.46
has approved the extension of Resolution of
the charging period for the the board of June 1,2021 Main business cost -15,568,494.71
Sanbao-Shuikou section of the directors
Shenyang-Haikou National Income tax
3,892,123.68
expenses
Expressway to June 14, 2044.
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Applicable
Whether need to adjust the balance sheet account at the beginning of the year
√ Yes □No
Consolidated balance sheet
In RMB
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Current asset：
Monetary fund 2,847,398,003.89 2,847,398,003.89
Settlement provision
Outgoing call loan
Transactional financial
assets
Derivative financial assets
Notes receivable
Account receivable 168,907,517.56 168,907,517.56
Financing of receivables
Prepayments 3,607,538.01 2,831,124.98 -776,413.03
Insurance receivable
Reinsurance receivable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Provisions of Reinsurance
contracts receivable
Other account receivable 60,925,367.64 60,925,367.64
Including：Interest
receivable
Dividend receivable 2,705,472.90 2,705,472.90
Repurchasing of financial
assets
Inventories 53,761.06 53,761.06
Contract assets 5,452,813.90 5,452,813.90
Assets held for sales
Non-current asset due
51,745.32 51,745.32
within 1 year
Other current asset 27,051.69 27,051.69
Total of current assets 3,086,423,799.07 3,085,647,386.04 -776,413.03
Non-current assets
Loans and payment on
other’s behalf disbursed
Creditor's right investment
Other creditor's right
investment
Long-term receivable
Long term share equity
2,382,381,165.60 2,381,947,306.18 -433,859.42
investment
Other equity instruments
1,737,015,528.29 1,737,015,528.29
investment
Other non-current financial
assets
Property investment 3,110,381.89 3,110,381.89
Fixed assets 11,540,075,929.69 11,540,075,929.69
Construction in progress 340,611,095.47 340,611,095.47
Production physical assets
Oil & gas assets
Use right assets Not applicable 23,154,055.78 23,154,055.78
Intangible assets 302,381,356.52 302,381,356.52
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Development expenses
Goodwill
Long-germ expenses to be
3,462,122.00 2,454,375.00 -1,007,747.00
amortized
Deferred income tax asset 330,755,418.39 330,755,418.39
Other non-current asset 22,361,861.19 22,361,861.19
Total of non-current assets 16,662,154,859.04 16,683,867,308.40 21,712,449.36
Total of assets 19,748,578,658.11 19,769,514,694.44 20,936,036.33
Current liabilities
Short-term loans 200,192,500.00 200,192,500.00
Loan from Central Bank
Borrowing funds
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 369,773,342.71 369,773,342.71
Advance receipts 11,309,007.41 11,309,007.41
Contract liabilities 309,734.51 309,734.51
Selling of repurchased
financial assets
Deposit taking and
interbank deposit
Entrusted trading of
securities
Entrusted selling of
securities
Employees’ wage payable 16,726,198.13 16,726,198.13
Tax payable 217,748,392.78 217,748,392.78
Other account payable 1,512,619,359.78 1,512,619,359.78
Including：Interest payable
Dividend payable 22,262,804.39 22,262,804.39
Fees and commissions
payable
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Reinsurance fee payable
Liabilities held for sales
Non-current liability due
266,328,017.47 275,452,698.33 9,124,680.86
within 1 year
Other current liability 648,581.64 648,581.64
Total of current liability 2,595,655,134.43 2,604,779,815.29 9,124,680.86
Non-current liabilities：
Reserve fund for insurance
contracts
Long-term loan 4,977,438,800.00 4,977,438,800.00
Bond payable 1,426,488,336.65 1,426,488,336.65
Including：preferred stock
Sustainable debt
Lease liability Not applicable 12,245,214.89 12,245,214.89
Long-term payable 40,406,172.37 40,406,172.37
Long-term remuneration
payable to staff
Expected liabilities
Deferred income 89,170,569.64 89,170,569.64
Deferred income tax
387,103,060.74 387,103,060.74
liability
Other non-current
liabilities
Total non-current liabilities 6,920,606,939.40 6,932,852,154.29 12,245,214.89
Total of liability 9,516,262,073.83 9,537,631,969.58 21,369,895.75
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 645,969,210.48 645,969,210.48
Less：Shares in stock
Other comprehensive
302,895,877.65 302,895,877.65
income
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Special reserve
Surplus reserves 1,167,785,965.63 1,167,785,965.63
Common risk provision
Retained profit 3,725,679,319.35 3,725,245,459.93 -433,859.42
Total of owner’s equity
belong to the parent 7,933,136,499.11 7,932,702,639.69 -433,859.42
company
Minority shareholders’
2,299,180,085.17 2,299,180,085.17
equity
Total of owners’ equity 10,232,316,584.28 10,231,882,724.86 -433,859.42
Total of liabilities and
19,748,578,658.11 19,769,514,694.44 20,936,036.33
owners’ equity
Adjustment statement
Parent Company Balance Sheet
In RMB
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Current asset：
Monetary fund 1,781,764,519.09 1,781,764,519.09
Transactional financial
assets
Derivative financial assets
Notes receivable
Account receivable 27,004,827.41 27,004,827.41
Financing of receivables
Prepayments 2,181,215.03 1,404,802.00 -776,413.03
Other account receivable 54,148,114.53 54,148,114.53
Including：Interest
receivable
Dividend receivable 2,705,472.90 2,705,472.90
Inventories
Contract assets
Assets held for sales
71
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Non-current asset due
256,279,340.60 256,279,340.60
within 1 year
Other current asset 27,051.69 27,051.69
Total of current assets 2,121,405,068.35 2,120,628,655.32 -776,413.03
Non-current assets：
Creditor's right investment 287,903,684.98 287,903,684.98
Other Creditor's right
investment
Long-term receivable
Long term share equity
5,529,362,536.53 5,528,928,677.11 -433,859.42
investment
Other equity instruments
1,737,015,528.29 1,737,015,528.29
investment
Other non-current financial
assets
Property investment 2,858,243.64 2,858,243.64
Fixed assets 6,245,462,940.39 6,245,462,940.39
Construction in progress 43,086,545.58 43,086,545.58
Production physical assets
Oil & gas assets
Use right assets Not applicable 21,927,040.99 21,927,040.99
Intangible assets 150,582,241.22 150,582,241.22
Development expenses
Goodwill
Long-germ expenses to be
amortized
Deferred income tax asset 322,365,911.10 322,365,911.10
Other non-current asset 7,089,990.48 7,089,990.48
Total of non-current assets 14,325,727,622.21 14,347,220,803.78 21,493,181.57
Total of assets 16,447,132,690.56 16,467,849,459.10 20,716,768.54
Current liabilities
Short-term loans 200,192,500.00 200,192,500.00
Transactional financial
liabilities
Derivative financial
72
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
liabilities
Notes payable
Account payable 105,919,984.52 105,919,984.52
Advance receipts
Contract Liabilities
Employees’ wage
6,472,802.81 6,472,802.81
payable
Tax payable 9,165,801.86 9,165,801.86
Other account payable 1,431,814,861.38 1,431,814,861.38
Including：Interest payable
Dividend payable 22,262,804.39 22,262,804.39
Liabilities held for sales
Non-current liability due
190,331,701.48 199,348,977.11 9,017,275.63
within 1 year
Other current liability 539,618,124.00 539,618,124.00
Total of current liability 2,483,515,776.05 2,492,533,051.68 9,017,275.63
Non-current liabilities：
Long-term loan 4,389,653,800.00 4,389,653,800.00
Bond payable 1,426,488,336.65 1,426,488,336.65
Including：preferred stock
Sustainable debt
Lease liability Not applicable 12,133,352.33 12,133,352.33
Long-term payable 40,406,172.37 40,406,172.37
Long-term remuneration
payable to staff
Expected liabilities
Deferred income 13,403,327.12 13,403,327.12
Deferred income tax
105,636,866.50 105,636,866.50
liability
Other non-current
liabilities
Total non-current liabilities 5,975,588,502.64 5,987,721,854.97 12,133,352.33
Total of liability 8,459,104,278.69 8,480,254,906.65 21,150,627.96
Owners’ equity
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount involved in the
Items December 31,2020 January 1,2021
adjustment
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 938,969,546.79 938,969,546.79
Less：Shares in stock
Other comprehensive
302,895,877.65 302,895,877.65
income
Special reserve
Surplus reserves 987,813,698.07 987,813,698.07
Retained profit 3,667,543,163.36 3,667,109,303.94 -433,859.42
Total of owners’ equity 7,988,028,411.87 7,987,594,552.45 -433,859.42
Total of liabilities and
16,447,132,690.56 16,467,849,459.10 20,716,768.54
owners’ equity
Note
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 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
74
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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, 2021, "the end of the period"
refers to June 30, 2021, "current period" refers to January-June, 2021, and "last period" refers to January-June,
2020.
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 82,551.70 54,482.68
Bank deposit 3,566,696,538.96 2,846,821,352.23
Other 517,519.76 522,168.98
Total 3,567,296,610.42 2,847,398,003.89
Other note
On January 30,2021,The balance of restricted bank deposits at the end of the period was 1,221,200.00 yuan, which
was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion project
of Sanbao to Shuikou section of Fokai Expressway.
75
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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 Propo Amount Proportio Amount Propor
(%) rtion( n(%) tion(%
%) )
Of which：
Accrual of bad debt provision
148,842,756.74 100.00% 5,024,861.38 3.38% 143,817,895.36 172,621,378.99 100.00% 3,713,861.43 2.15% 168,907,517.56
by portfolio
Of which：
Aging portfolio 147,970,199.41 99.41% 5,024,861.38 3.40% 142,945,338.03 171,846,750.22 99.55% 3,713,861.43 2.16% 168,132,888.79
Quality guarantee portfolio 872,557.33 0.59% 872,557.33 774,628.77 0.45% 774,628.77
Total 148,842,756.74 5,024,861.38 143,817,895.36 172,621,378.99 3,713,861.43 168,907,517.56
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Accrual of bad debt provision by portfolio：Accrual of bad debt provision by aging portfolio
In RMB
Balance in year-end
Name
Receivable accounts Bad debt provision Withdrawal proportion
Within 1 year 117,138,930.20 0.00%
1-2 years 21,329,417.96 2,029,072.20 10.00%
2-3 years 9,085,541.25 2,619,035.18 30.00%
3-4 years 75,000.00 37,500.00 50.00%
4-5 years 20,560.00 18,504.00 90.00%
Over 5 years 320,750.00 320,750.00 100.00%
Total 147,970,199.41 5,024,861.38 --
Accrual of bad debt provision by portfolio: Notes of the basis of Quality guarantee the group
In RMB
Balance in year-end
Name
Receivable accounts Bad debt provision Withdrawal proportion
Quality guarantee 872,557.33
Total 872,557.33 --
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） 117,359,934.21
1-2 years 21,329,417.96
2-3 years 9,196,201.85
Over 3 years 957,202.72
3-4 years 158,509.20
4-5 years 228,569.83
Over 5 years 570,123.69
Total 148,842,756.74
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(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 3,713,861.43 1,310,999.95 5,024,861.38
Total 3,713,861.43 1,310,999.95 5,024,861.38
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 Relations with the Amount Aging Proportion(%) Bad debt provision
Company
Guangdong Union Electronic 68,390,397.52 Within 1 45.95
Services Co., Ltd. Related party year
Within 1
25,013,757.94 16.81
Guangdong Humen Bridge Co., Ltd. Related party year
14,637,000.00 1-2 years 9.83 1,463,700.00
Guangzhou Lingte Electronic Non- Related
864,000.00 Within 1 0.58 1,463,700.00
Co.,Ltd. party
year
Shandong Boan Intelligent Non- Related
7,409,966.25 4.98 2,222,989.88
Technology Co., Ltd party 2-3 years
Guangdong Lulu Traffic Non- Related Within 1
6,458,333.33 4.34 1,744,962.90
Development Co., Ltd. party year
Total / 122,773,455.04 / 82.49 3,686,698.88
（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
78
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
3. Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance Year-beginning
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 2,413,352.66 66.49% 2,741,988.15 96.85%
1-2 years 1,216,552.83 33.51% 89,136.83 3.15%
Total 3,629,905.49 -- 2,831,124.98 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
None
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations with the Amount Aging Reasons for Proportion %
Company non-settlemen
t
Guangzhou Lianxu Automation Non- Related party 1,417,699.11 Within 1 year Outstanding 39.06
Equipment Co., Ltd period
China Pacific Property Insurance Non- Related party 838,016.00 1-2 years Outstanding 23.09
Co. Ltd. Guangdong Branch period
Tianjing Kechang Huitong Non- Related party 300,000.00 Within 1 year Outstanding 8.26
Information Technology Co., Ltd. period
Guangdong Power Grid Energy Non- Related party 240,500.00 Within 1 year Outstanding 6.63
Development Co., Ltd. period
Zhaoqing Yuezhao highway Co., Related party 151,938.00 Within 1 year Outstanding 4.19
Ltd. period
Total / 2,948,153.11 / / 81.22
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 77,609,011.14 2,705,472.90
Other receivable 38,670,306.56 58,219,894.74
Total 116,279,317.70 60,925,367.64
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
79
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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
China Everbright Bank 49,403,538.24
Ganzhou Kangda Expressway Co., Ltd. 27,000,000.00
Total 77,609,011.14 2,705,472.90
2）Significant dividend receivable aged over 1 year
None
（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 Gangkang 22,500,000.00 45,000,000.00
Petty cash 7,361,462.04 5,654,205.42
Gelin Enze Account 4,007,679.91 4,007,679.91
Cash deposit 3,839,969.43 4,001,660.43
Tran Other safer of long-term assets
935,820.00 935,820.00
receivable
Other 4,159,095.07 2,754,248.87
Subtotal 90,332,082.63 109,881,670.81
Less：Bad-debt provision 51,661,776.07 51,661,776.07
Total 38,670,306.56 58,219,894.74
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
126,039.98 51,535,736.09 51,661,776.07
1,2021
Balance as at January
—— —— —— ——
1,2021 in current
80
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Balance as at June
126,039.98 51,535,736.09 51,661,776.07
30,,2021
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） 33,375,728.18
1-2 years 3,333,236.45
2-3 years 85,640.38
Over 3 years 53,537,477.62
3-4 years 277,019.07
4-5 years 431,700.40
Over 5 years 52,828,758.15
Subtotal 90,332,082.63
Less：Bad-debt provision 51,661,776.07
Total 38,670,306.56
3） Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
81
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount of change in the current period
Balance Reversed or Balance in
Category
Year-beginning Accrual collected Write-off Other year-end
amount
Accrual of single item 51,535,736.09 51,535,736.09
Accrual of
portfolio-Aging 126,039.98 126,039.98
portfolio
Accrual of
portfolio-Other portfolio
Total 51,661,776.07 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
balance of Closing balance of
Name Nature Closing balance Aging
the bad debt provision
accounts
receivable(
%)
Kunlun Securities Securities trading settlem
47,528,056.18 Over 5 years 52.61% 47,528,056.18
Co.,Ltd ent funds
Ganzhou Gangkang Capital reduction due
22,500,000.00 Within 1 year 24.91%
Expressway Co., Ltd. from Gangkang
Beijing Gelin Enze Loans 4,007,679.91 Over 5 years 4.44% 4,007,679.91
Guangdong Litong Real Lease deposit 1,630,467.36 Within 1 year 1.81%
Estates Investment Co.,
Vehicle parking deposit 58,660.00 Over 5 years 0.06%
Ltd.
China Railway No.18 Pay compensation for
963,300.00 Within 1 year 1.07%
Bureau Group Co., Ltd. local problems on behalf
Total -- 76,688,163.45 -- 84.90% 51,535,736.09
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(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
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 273,584.06 273,584.06 49,380.53 49,380.53
Stock goods 101,769.91 101,769.91 4,380.53 4,380.53
Total 375,353.97 375,353.97 53,761.06 53,761.06
(2) Inventory depreciation reserve
None
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（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 5,231,809.89 5,231,809.89 5,452,813.90 5,452,813.90
Total 5,231,809.89 5,231,809.89 5,452,813.90 5,452,813.90
Amount and reason of material change of book value of contract assets in the current period::None
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
83
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
□ Applicable √Not applicable
7.Non-current asset due within 1 year
In RMB
Items
Year-end balance Year-beginning balance
Pre-payment of business tax before
51,745.32 51,745.32
replacing business tax with VAT
7 days notice of deposit interest 6,137,170.84
Total 6,188,916.16 51,745.32
8.Other current assets
I n RMB
Items
Year-end balance Year-beginning balance
Income tax to be deducted 738,014.86
Income tax to be certified 54,991.94 27,051.69
Total 793,006.80 27,051.69
84
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
9. Long-term equity investment
In RMB
Increase/decrease
Withdra Closing
Decr Profits and Cash bonus or wal of balance of
Additi ease losses on Other Closing
Investees Opening balance in investments Changes of profits impairm impairme
onal comprehensiv balance
Other
invest inves Recognized e other equity announced to ent nt
ment tmen under the equity income
issue provisio provision
t method
n
I. Joint venture
2. Affiliated Company
203,958,049.0
Guangdong Jiangzhong Expressway Co., Ltd. 192,252,504.94 11,705,544.07
1
155,398,808.1
Ganzhou Gankang Expressway Co., Ltd. 145,774,620.72 9,624,187.44
6
214,731,258.8
Ganzhou Kangda Expressway Co., Ltd. 216,814,090.50 24,917,168.32 27,000,000.00
2
302,411,701.9
Shenzhen Huiyan Expressway Co., Ltd. 285,408,755.15 17,002,946.80
5
292,468,119.8
Zhaoqing Yuezhao Highway Co., Ltd. 302,436,218.83 29,706,901.01 39,675,000.00
4
950,426,509.1
Guoyuan Securities Co., Ltd. 938,476,820.74 20,302,738.27 1,995,208.32 10,348,258.20
3
218,276,745.1
Guangdong Yuepu Small Refinancing Co., Ltd 215,703,320.38 6,351,644.00 -3,778,219.25
3
Hunnan Lianzhi Technology Co., .Ltd. 85,080,974.92 3,035,459.41 88,116,434.33
85
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
2,425,787,626.
Subtotal 2,381,947,306.18 122,646,589.32 1,995,208.32 -3,778,219.25 77,023,258.20
37
2,425,787,626.
Total 2,381,947,306.18 122,646,589.32 1,995,208.32 -3,778,219.25 77,023,258.20
37
Other note
Note：Guangdong Yueke Technology Petty Loan Co., Ltd. was renamed as Guangdong Yuepu Small Refinancing Co., Ltd in February 2021.
86
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
10.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
50,000,000.00 50,000,000.00
Limited partnership enterprise
China Everbright Bank Co., Ltd. 889,263,688.32 938,667,226.56
Huaxia Securities Co., Ltd.（Notes1）
Huazheng Asset Management Co., Ltd.（Notes2）
Kunlun Securities Co., Ltd.（Notes3）
Total 1,687,611,990.05 1,737,015,528.29
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of Reasons for
Reasons for
other other
designation as
Dividend consolidated consolidated
Cumulative Cumulative measured at fair value
Items income income income
gain loss and changes included
recognized transferred to transferred
in other comprehensive
retained to retained
income
earnings earnings
Non-transactional
Guangle Expressway Co.,
purpose for
Ltd.
shareholding
Guangdong Radio and
Non-transactional
Television Networks
7,802,784.15 purpose for
investment No.1 Limited
shareholding
partnership enterprise
Non-transactional
China Everbright Bank
49,403,538.24 371,702,811.52 purpose for
Co., Ltd.
shareholding
Non-transactional
Huaxia Securities Co.,
5,400,000.00 purpose for
Ltd.
shareholding
Non-transactional
Huazheng Asset
1,620,000.00 purpose for
Management Co., Ltd.
shareholding
Kunlun Securities Co., Non-transactional
30,000,000.00
Ltd. purpose for
87
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
shareholding
Total 49,403,538.24 379,505,595.67 37,020,000.00
Other note：
Note 1: The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in December 2005.
The Company made full provision for impairment in respect of this long-term equity investment of RMB 5.4 million.
Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co., Ltd. As the June
30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was 279.132 million yuan and the appraised
value was - 2299.5486 million yuan ,On October 14, 2005, Jianyin CITIC Asset Management Co., Ltd. issued the Letter of
Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset Management Co., Ltd. was willing to pay the
price of not more than 42 million yuan to acquire 100% equity of Huazheng Asset Management Co., Ltd. and solicited the
Company's opinions. The Company replied on December 5, 2005, abandoning the preemptive right under the same conditions.
The Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62
million 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.
11. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Construction in
Items Houses and buildings Land use right Total
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
88
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Construction in
Items Houses and buildings Land use right Total
progress
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 2,971,831.10 15,636,529.35
II.Accumulated
depreciation
accumulated
amortization
1.Opening balance 10,694,640.90 1,831,506.56 12,526,147.46
2.Increased amount of
73,774.56 36,784.68 110,559.24
the period
(1)Withdrawal or
73,774.56 36,784.68 110,559.24
amortization
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 10,768,415.46 1,868,291.24 12,636,706.70
III. Impairment
provision
1.Opening balance
2.Increased amount of
the period
（1）Withdrawal
3.Decreased
amount of the period
（1）Disposal
89
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Construction in
Items Houses and buildings Land use right Total
progress
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 1,896,282.79 1,103,539.86 2,999,822.65
2.Opening book 1,970,057.35 1,140,324.54 3,110,381.89
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
Houses and Building 1,218,972.18
facilities, Not accreditation
Other note
12. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 10,897,122,561.83 11,540,066,429.69
liquidation of fixed assets 13,117.55 9,500.00
Total 10,897,135,679.38 11,540,075,929.69
90
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(1) List of fixed assets
In RMB
Jingzhu Electricity
Guangfo Guanghui House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
Expressway buildings equipment equipment
Expressway
Guangzhu section other
I. Original price
1.Opening
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
balance
2.Increased
amount of the 16,210,108.00 27,120.00 290,080.76 16,527,308.76
period
（1）Purchase 27,120.00
（2）Transfer of
project under 276,082.76 303,202.76
construction
(3)Increased of
Enterprise 13,998.00 13,998.00
consolidation
（4）Other 16,210,108.00 16,210,108.00
3.Decreased
amount of the 129,039.00 957,990.00 499,966.00 16,482,158.00 18,069,153.00
period
（1）Disposal or
129,039.00 957,990.00 499,966.00 272,050.00 1,859,045.00
scrap
91
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
（2）Government
subsidy offset
（3）Other 16,210,108.00 16,210,108.00
4.Closing balance 1,460,270,190.66 10,892,817,927.30 6,475,428,904.48 4,841,091,532.98 653,027,759.92 1,806,149,925.89 60,927,722.89 118,053,920.77 26,307,767,884.89
II. Accumulated
depreciation
1.Opening balance 1,460,270,190.66 4,999,612,912.32 3,571,631,502.43 2,994,964,464.08 432,913,163.79 1,174,349,065.14 49,827,783.08 77,204,103.16 14,760,773,184.66
2.Increased amount
279,351,679.51 181,279,037.25 81,797,251.54 14,304,055.28 77,259,366.40 1,144,611.08 5,087,884.75 640,223,885.81
of the period
（1）Withdrawal 279,351,679.51 181,279,037.25 81,797,251.54 14,304,055.28 77,259,366.40 1,144,611.08 5,087,884.75 640,223,885.81
3.Decreased
amount of the 122,587.05 862,191.00 474,967.70 251,510.60 1,711,256.35
period
(1)Disposal or scrap 122,587.05 862,191.00 474,967.70 251,510.60 1,711,256.35
4.Closing balance 1,460,270,190.66 5,278,964,591.83 3,752,910,539.68 3,076,761,715.62 447,094,632.02 1,250,746,240.54 50,497,426.46 82,040,477.31 15,399,285,814.12
II.Accumulated
depreciation
1.Opening balance 7,870,708.72 599,405.96 8,470,114.78
2.Increased amount
2,889,394.16 2,889,394.16
of the period
（1）Withdrawal 2,889,394.16 2,889,394.16
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
3.Decreased amount
of the period
(1)Disposal or scrap
4.Closing balance 2,889,394.16 7,870,708.72 599,405.96 11,359,508.94
IV. Book value
1.Closing book
5,613,853,335.47 2,722,518,364.80 1,764,329,817.36 203,043,733.74 547,532,976.63 10,430,296.43 35,414,037.50 10,897,122,561.83
value
2.Opening book 5,893,205,014.98 2,903,797,402.05 1,829,916,960.90 220,243,635.13 624,861,021.93 11,599,905.81 56,442,488.89 11,540,066,429.69
93
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(2)Temporarily idle fixed assets
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
House and
6,014,243.63 4,166,329.20 1,847,914.43
buildings
Total 6,014,243.63 4,166,329.20 1,847,914.43
(3)Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Transportation and other ancillary
House and Building 141,341,854.15
facilities，Not accreditation.
（4）liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Transportation equipment 9,500.00
House and Building 6,451.95
Office equipment and other 6,665.60
Total 13,117.55 9,500.00
13. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 476,068,792.62 340,611,095.47
Total 476,068,792.62 340,611,095.47
（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
119,531,037.47 119,531,037.47 117,493,329.30 117,493,329.30
Project of
Dayong
94
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Viaduct
Pavement
Treatment 122,157,600.54 122,157,600.54 105,958,479.27 105,958,479.27
Project
Gualuhu
Interchange 134,788,295.75 134,788,295.75 52,045,974.12 52,045,974.12
project
Reconstruction
and Expansion
32,639,361.33 32,639,361.33 29,547,232.58 29,547,232.58
of Sanbao to
Shuikou
Ganshen
High-speed
railway
crossing 12,091,362.98 12,091,362.98 2,555,353.00 2,555,353.00
section
expansion
project
Huizhou North
Interchange 17,214,947.18 17,214,947.18 283,432.73 283,432.73
Project
Odd project 37,646,187.37 37,646,187.37 32,727,294.47 32,727,294.47
Total 476,068,792.62 476,068,792.62 340,611,095.47 340,611,095.47
95
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(2) Changes of significant construction in progress
In RMB
Including:
capitalization Capitaliza Source
Transferre Capitalization
Other Proportion Project of tion of of
Name of project Budget Opening balance Increase d to fixed End balance of
decrease % process interest interest fundin
assets interest
this rate (%) g
period
Reconstruction
and Expansion
3,426,206,700.00 29,547,232.58 3,092,128.75 32,639,361.33 75.86% 82.29% 72,779,504.82
of Sanbao to
Shuikou
Gualuhu
Interchange 197,520,000.00 52,045,974.12 82,756,319.63 13,998.00 134,788,295.75 68.24% 68.24%
project
Pavement
Treatment 186,000,000.00 105,958,479.27 16,199,121.27 122,157,600.54 65.68% 65.68% 4,188,901.41 1,708,886.27 4.07%
Project
Bridge Deck
Treatment
123,000,000.00 117,493,329.30 2,037,708.17 119,531,037.47 97.18% 97.18% 6,678,897.11 2,037,708.17 4.07%
Project of
Dayong Viaduct
Total 3,932,726,700.00 305,045,015.27 104,085,277.82 13,998.00 409,116,295.09 -- -- 83,647,303.34 3,746,594.44 --
96
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(3)Provision for impairment of construction projects in the current period
None
14.Use right assets
In RMB
Items House and buildings Transportation equipment Total
I. Original price
1.Opening balance 22,494,778.29 659,277.49 23,154,055.78
2.Increased amount of the
504,113.56 504,113.56
period
4.Closing balance 22,494,778.29 1,163,391.05 23,658,169.34
II. Accumulated depreciation
1.Opening balance
2.Increased amount of the period 4,657,872.55 260,044.03 4,917,916.58
（1）Withdrawal 4,657,872.55 260,044.03 4,917,916.58
4.Closing balance 4,657,872.55 260,044.03 4,917,916.58
III. Impairment provision
IV. Book value
1.Closing book value 17,836,905.74 903,347.02 18,740,252.76
2.Opening book value 22,494,778.29 659,277.49 23,154,055.78
Other note :None
15. Intangible assets
(1) List of intangible assets
In RMB
Land use Patent Non-patent The Turnpike
Items Software Total
right right right franchise
I. Original price
1.Opening balance 1,311,658.00 39,912,285.19 318,348,741.86 359,572,685.05
2.Increased amount of the
period
(1) Purchase
97
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Land use Patent Non-patent The Turnpike
Items Software Total
right right right franchise
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
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 32,458,724.38 23,420,946.15 57,191,328.53
2.Increased amount of the
1,405,532.76 17,245,289.04 18,650,821.80
period
(1) Withdrawal 1,405,532.76 17,245,289.04 18,650,821.80
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 1,311,658.00 33,864,257.14 40,666,235.19 75,842,150.33
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
98
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Land use Patent Non-patent The Turnpike
Items Software Total
right right right franchise
4.Closing balance
IV. Book value
1.Closing book value 6,048,028.05 277,682,506.67 283,730,534.72
2.Opening book value 7,453,560.81 294,927,795.71 302,381,356.52
The intangible assets by the end of the formation of the company's internal R & D accounted 0.00% 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
16. Long-term amortize expenses
In RMB
Balance in Increase in this Amortized Balance in
Items year-begin period expenses Other loss
year-end
Prepaid business
tax and surcharges
before
2,454,375.00 175,312.50 2,279,062.50
replacement of
business tax with
value-added tax
Total 2,454,375.00 175,312.50 2,279,062.50
17. 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
99
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Assets impairment
11,594,966.32 2,898,741.58 8,705,572.16 2,176,393.04
provisions
Deductible loss 895,998,889.02 223,999,722.26 1,000,101,381.76 250,025,345.44
Amortization of
204,533,341.88 51,133,335.47 269,669,149.91 67,417,287.48
intangible assets
Deferred income 37,761,831.40 9,440,457.85 44,545,569.73 11,136,392.43
Total 1,149,889,028.62 287,472,257.16 1,323,021,673.56 330,755,418.39
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in the fair
value of other equity 371,702,811.52 92,925,702.88 421,106,349.76 105,276,587.44
instruments
Deductible temporary
differences in the
1,073,420,402.00 268,355,100.50 1,124,772,402.32 281,193,100.58
formation of asset
impairment
Difference of
amortization method of 3,567,807.68 891,951.92 2,533,490.83 633,372.72
franchise of toll road
Total 1,448,691,021.20 362,172,755.30 1,548,412,242.91 387,103,060.74
（3）Details of unrecognized deferred tax assets
In RMB
Items Balance in year-end Balance Year-beginning
Deductible loss 15,880,112.62 11,452,524.12
Assets impairment provisions 93,295,931.45 91,984,931.50
Total 109,176,044.07 103,437,455.62
（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
2021
2022 1,133,109.04 1,133,109.04
100
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
2023 3,129,535.72 3,129,535.72
2024 3,618,779.07 3,618,779.07
2025 3,571,100.29 3,571,100.29
2026 4,427,588.50
Total 15,880,112.62 11,452,524.12 --
18. Other Non-current assets
In RMB
Balance in year-end Balance Year-beginning
Book balance Provision Book value Book balance Provision Book value
Items
for for
devaluation devaluation
Prepaid fixed assets 22,732,114.6
22,732,114.65 21,946,578.75 21,946,578.75
engineering fees 5
Prepaid business tax 441,155.10 441,155.10 467,027.76 467,027.76
Less：Part due within 1
51,745.32 51,745.32 51,745.32 51,745.32
year
23,121,524.4
Total 23,121,524.43 22,361,861.19 22,361,861.19
3
19. Short-term Borrowing
（1）Short-term Borrowing
In RMB
Total Balance in year-end Balance Year-beginning
Credit Borrowing 200,000,000.00 200,000,000.00
Interest accrued on short-term borrowing 175,000.00 192,500.00
Total 200,175,000.00 200,192,500.00
（2）Overdue short-term borrowings
None
20.Account payable
（1） List of account payable
In RMB
101
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 108,653,398.13 252,654,968.64
1-2 years（including2 years） 95,600,699.27 44,097,234.36
2-3 years（including 3 years） 33,193,319.26 10,392,605.88
Over 3 years 69,061,279.17 62,628,533.83
Total 306,508,695.83 369,773,342.71
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Foshan Land and resources Bureau. 30,507,598.21 Unsettled
Guang Zhongjiang Expressway project
28,000,000.00 Unsettled
Management Dept
Heshan Land and resources Bureau 10,186,893.60 Unsettled
Guangdong Provincial Freeway Co.,Ltd. 8,746,491.18 Unsettled
The Third Research Institute of The
8,730,588.49 OBU goods，Unsettled
ministry Of public Security
Total 86,171,571.48 --
Other note：
21. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 12,523,692.52 1,473,106.10
1-2 years（Including 2 years）
2-3 years（Including 3 years）
Over 3 years 9,278,102.25 9,835,901.31
Total 21,801,794.77 11,309,007.41
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/Uncarry over reason
Guangzhou Huanlong Expressway Co., The Rental is not in the settlement
7,538,446.46
Ltd. period
102
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Guanghdong Xinle Technology The Rental is not in the settlement
1,317,877.49
Development Co., Ltd. period
Total 8,856,323.95 --
（3）Settlement of outstanding projects resulting from final construction contracts
None
22.Contract liabilities
In RMB
Items Balance in year-end Balance Year-beginning
Payments received in advance 327,734.51 309,734.51
Less：Other non-current liabilities
Total 327,734.51 309,734.51
23. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the Decrease in the
Year-end balance
balance current period current period
I. Short-term compensation 16,726,198.13 176,850,610.36 171,066,382.99 22,510,425.50
II.Post-employment benefits - defin
29,615,875.36 26,805,310.89 2,810,564.47
ed contribution plans
III. Dismissal benefits 52,930.00 52,930.00
Total 16,726,198.13 206,519,415.72 197,924,623.88 25,320,989.97
（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
465,063.49 130,356,876.54 124,264,341.41 6,557,598.62
and subsidies
2.Employee welfare 10,676,725.41 10,676,725.41
3. Social insurance premiums 12,115,919.26 12,102,773.45 13,145.81
103
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Including ：Medical
7,943,235.84 7,931,971.21 11,264.63
insurance
Work injury insurance 132,925.72 132,667.60 258.12
Maternity insurance 1,243,270.56 1,241,647.50 1,623.06
Other 2,796,487.14 2,796,487.14
4.Public reserves for housing 18,938,804.00 18,914,108.00 24,696.00
5.Union funds and staff
14,578,979.10 4,108,021.65 4,454,171.22 14,232,829.53
education fee
8.Other 1,682,155.54 654,263.50 654,263.50 1,682,155.54
Total 16,726,198.13 176,850,610.36 171,066,382.99 22,510,425.50
（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
17,058,245.75 17,033,625.11 24,620.64
insurance premiums
2.Unemployment
1,508,985.20 1,508,236.43 748.77
insurance
3.Enterprise annuity
11,048,644.41 8,263,449.35 2,785,195.06
payment
Total 29,615,875.36 26,805,310.89 2,810,564.47
24. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 11,310,652.79 19,253,425.01
161,545,820.11 192,073,414.37
Enterprise Income tax
Individual Income tax 379,604.75 2,589,498.58
City Construction tax 735,675.16 1,270,608.27
Education subjoin 354,153.73 594,019.27
Locality Education subjoin 216,166.07 376,577.48
Land use tax 638,542.10
Property tax 975,716.99 45,461.47
Stamp tax 55,280.55 1,514,826.65
Construction costs for cultural 30,561.68
104
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
undertaking
Total 176,211,612.25 217,748,392.78
25.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 630,684,374.92 22,262,804.39
Other account payable 188,472,025.89 1,490,356,555.39
Total 819,156,400.81 1,512,619,359.78
（1）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 630,684,374.92 22,262,804.39
Total 630,684,374.92 22,262,804.39
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 19,634,536.14yuan 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.
（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 72,631,540.13 147,443,692.67
Deposit, warranty and security deposit 75,542,601.43 82,529,159.41
Other 36,354,505.94 36,456,530.29
Temporary collection payable 3,943,378.39 2,087,881.02
Total 188,472,025.89 1,490,356,555.39
105
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Poly Changda Highway Engineering Project Quality guarantees, constrict
14,430,723.78
Co., Ltd. liquidated damages
Yayao to Xiebian extension 12,499,448.48 Outstanding
Guangdong Guanyue Road & Bridge
6,539,681.80 Project Quality guarantee
Co., Ltd.
Guangdong Nengda High Grade Contract liquidated damages, Wage
3,615,020.10
Highway Maintenance Co., Ltd. margin for migrant workers
Dahao Municipal Construction Co., Ltd. 3,000,000.00 Project Quality guarantee
Total 40,084,874.16 --
26. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 142,956,200.00 203,536,200.00
Long-term payable due within 1 year 944,339.62 732,075.46
Lease liabilities due within 1 year 9,658,303.32 9,124,680.86
Interest payable due within 1 year 22,299,019.57 62,059,742.01
Total 175,857,862.51 275,452,698.33
Other note：
27.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Tax to be rewritten 1,882,974.53 648,581.64
Total 1,882,974.53 648,581.64
28. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 616,030,000.00 657,365,000.00
106
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Credit loan 5,403,966,900.00 4,523,610,000.00
Less:Long-term loans due within one
142,956,200.00 203,536,200.00
year
Total 5,877,040,700.00 4,977,438,800.00
29.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1,426,956,661.36 1,426,488,336.65
Total 1,426,956,661.36 1,426,488,336.65
107
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
（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
Withdra Pay in
The Overflow
w curren
Name of the bond Book value Issue date Period Issue amount Opening balance current discount Closing balance
interest t
issue amount
at par period
19 Guangdong
680,000,000.00 2019.2.27 2019.3.1-2024.3.1 680,000,000.00 678,575,316.87 -223,418.00 678,798,734.87
Expressway MTN001
20 Guangdong
750,000,000.00 2020.3.13 2020.3.17-2025.3.17 750,000,000.00 747,913,019.78 -244,906.71 748,157,926.49
Expressway MTN001
Total -- -- -- 1,430,000,000.00 1,426,488,336.65 -468,324.71 1,426,956,661.36
108
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
30.Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
Long-term lease liabilities 17,381,066.74 21,369,895.75
Including： Financing costs are not
737,310.63 1,134,013.96
recognized
Less：Lease liabilities due within 1 year -9,658,303.32 -9,124,680.86
Total 7,722,763.42 12,245,214.89
31. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 3,461,832.74 40,406,172.37
Total 3,461,832.74 40,406,172.37
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2,022,210.11 2,022,210.11
Entrust loans 36,000,000.00
Medium term bill underwriting fee 2,383,962.25 3,116,037.72
Less：Part due within 1 year 944,339.62 732,075.46
Total 3,461,832.74 40,406,172.37
32. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
44,545,569.64 6,783,738.24 37,761,831.40
subsidy
Lease income 44,625,000.00 3,187,500.00 41,437,500.00
109
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Total 89,170,569.64 9,971,238.24 79,199,331.40 --
110
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Details of government subsidies：
In RMB
Amount Other income Asset-related
New subsidy Amount of cost Other
Beginning of transferred to recorded in or
Items in current deducted in the chang End of term
term non-operational the current income-relat
period current period es
income period ed
Cancellation of Expressway Provincial Toll Station Related to
44,545,569.64 6,783,738.24 37,761,831.40
Project assets
Total 44,545,569.64 6,783,738.24 37,761,831.40
111
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
33. 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
34. Capital reserves
In RMB
Items Year-beginning Increase in the Decrease in Year-end balance
balance current period the current
period
Share premium 508,711,146.99 508,711,146.99
(1) Capital invested by investors 2,508,408,342.99 2,508,408,342.99
(2) Influence of business combination under the
-1,999,697,196.00 -1,999,697,196.00
same control
Other capital reserves 137,258,063.49 46,064,922.25 183,322,985.74
(1) Changes in other equity of the investee under
525,074.49 525,074.49
the equity accounting
（2）Other 136,732,989.00 46,064,922.25 182,797,911.25
Total 645,969,210.48 46,064,922.25 692,034,132.73
- The situation of change in the current capital reserve is as follows:
①The 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 RMB268,103,900.00 was received from
Zengcheng District Government at the beginning of the period, of which the opening balance of capital reserve
attributable to the parent company-other capital reserve was RMB136,732,989.00, and RMB97,731,650.00 was
112
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
newly received in this period, of which capital reserve attributable to the parent company-other capital reserve
increased by RMB 49,843,141.50 in this period.
②The joint venture Guangdong Yuepu Small Refinancing Co., Ltd increased its capital and expanded its shares.
The Company adjusted the book value of long-term equity investment according to the diluted shareholding ratio,
reducing the capital reserve by RMB 3,778,219.25.
113
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
35. Other comprehensive income
In RMB
Amount of current period
Less：Amount
transferred into
profit and loss Less：Prior period
in the current included in other After-tax
Year-beginning Amount After-tax Year-end
Items period that composite income Less：Income tax attribute to
balance incurred before attribute to the balance
recognied into transfer to retained expenses minority
income tax parent company
other income in the shareholder
comprehensive current period
income in prior
period
1.Other comprehensive
income will be reclassified
315,829,762.32 -49,403,538.24 -12,350,884.56 -37,052,653.68 278,777,108.64
into income or loss in the
future
Changes in fair value of
investments in other equity 315,829,762.32 -49,403,538.24 -12,350,884.56 -37,052,653.68 278,777,108.64
instruments
2.Other comprehensive
income reclassifiable to profit -12,933,884.67 1,995,208.32 1,995,208.32 -10,938,676.35
or loss in subsequent periods
Including：Share of other
comprehensive income of the
-12,933,884.67 1,995,208.32 1,995,208.32 -10,938,676.35
investee that cannot be
transferred to profit or loss
114
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
accounted for using the equity
method
Total of other comprehensive
302,895,877.65 -47,408,329.92 -12,350,884.56 -35,057,445.36 267,838,432.29
income
115
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
36. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1,167,785,965.63 1,167,785,965.63
reserve
Total 1,167,785,965.63 1,167,785,965.63
37. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last
3,725,679,319.35 3,915,790,810.76
period end
Adjust the total undistributed profits at the
-433,859.42
beginning of the period
After adjustments: Retained profits at the period
3,725,245,459.93 3,915,790,810.76
beginning
Add：Net profit belonging to the owner of the
848,860,350.64 867,842,774.78
parent company
Less: Statutory surplus reserve 93,232,912.82
Common stock dividend payable 608,424,582.67 882,320,185.17
Other 82,401,168.20
Retained profit at the end of this term 3,965,681,227.90 3,725,679,319.35
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 .
116
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
38.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 2,448,927,494.46 868,560,892.48 1,089,323,025.02 765,703,663.54
Other operation 39,547,175.35 20,566,849.95 28,431,284.25 11,771,221.72
Total 2,488,474,669.81 889,127,742.43 1,117,754,309.27 777,474,885.26
39. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 4,707,823.03 2,113,789.37
Education surcharge 2,248,134.09 1,011,633.95
Property tax 1,328,788.22 712,301.65
Land use tax 875,697.88 606,620.40
Vehicle use tax 43,697.47 46,634.19
Stamp tax 196,890.20 113,623.71
Business tax 185,247.66 185,247.66
Locality Education surcharge 1,495,067.55 671,547.50
Total 11,081,346.10 5,461,398.43
Other note：
40. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 66,423,609.15 55,064,316.42
Depreciation and Amortization 5,724,413.26 4,979,637.57
Intangible assets amortization 1,081,305.76 1,192,383.87
Low consumables amortization 324,317.77 269,115.76
Rental fee 6,032,852.02 5,183,189.17
Business fee 372,403.60 348,171.25
Office expenses 4,187,689.42 3,673,999.40
Travel expenses 325,420.94 112,453.53
117
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Consultation expenses 117,000.00 63,000.00
The fee for hiring agency 3,076,580.06 3,309,843.01
Repairs cost 342,887.00 309,198.01
Vehicle fee 1,504,032.85 1,353,273.53
Listing fee 11,320.75 11,320.75
Information cost and maintenance fee 507,982.88 253,897.56
Other 3,325,219.93 2,538,262.12
Total 93,357,035.39 78,662,061.95
41.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 149,343,110.61 134,883,778.08
Deposit interest income（-） -29,751,089.44 -15,990,606.72
Exchange Income and loss（Gain-）
Bank commission charge 93,344.30 104,477.69
Other 1,183,218.60 1,705,527.49
Total 120,868,584.07 120,703,176.54
42.Other gains
In RMB
Items Amount of this period Amount of last period
Cancellation of Expressway Provincial
6,783,738.24 5,180,566.19
Toll Station Project
Stable job subsidies 932,076.28 398,471.22
Enterprises with industrial training
1,243,500.00
subsidies
Yuexiu District Bureau of Commerce
339,000.00
awards and subsidies
Maternity allowance 149,069.16 149,747.43
Veterans' VAT reduction and exemption 15,785.44 12,771.61
Withholding and remitting enterprise
322,529.07 195,056.10
prepaid income tax fees
Veterans' VAT reduction and exemption 136,670.84
118
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Total 9,922,369.03 5,936,612.55
43. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by
122,646,589.32 12,358,090.15
equity method
Dividends earned during the holding period
49,403,538.24 50,785,213.04
on investments in other equity instrument
Interest income on entrusted loans 3,610,807.53
Total 172,050,127.56 66,754,110.72
44. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on accounts
-1,310,999.95 -236,683.81
receivable
Total -1,310,999.95 -236,683.81
45. Asset impairment loss
In RMB
Items Amount of this period Amount of last period
Loss on impairment of fixed assets -2,889,394.16
Total -2,889,394.16
46.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Non-current assets disposal gains
Including：Income from disposal of
Fixed assets
Income from disposal of Intangible
assets
Other 4.37
Total 4.37
119
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
47. Non-Operation income
In RMB
Recorded in the amount of
Items Amount of this period Amount of last period the non-recurring gains and
losses
Insurance claim income 2,494,015.56 2,229,165.04 2,494,015.56
Road property claim income 1,436,421.01 1,262,316.21 1,436,421.01
Relocation compensation
1,549,865.12
income
Other 80,783.48 270,342.87 80,783.48
Total 4,011,220.05 5,311,689.24 4,011,220.05
48. Non-Operation expense
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Road rehabilitation
1,567,847.87 1,411,624.28 1,567,847.87
expenditure
Loss & abandonment of
135,447.06 184,878.43 135,447.06
non-current assets
Fine 153.62 25,472.76 153.62
Other 107,872.58 615,563.11 107,872.58
Total 1,811,321.13 2,237,538.58 1,811,321.13
49. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 323,321,325.12 78,051,106.83
Deferred income tax expense 30,703,740.35 16,076,906.91
Total 354,025,065.47 94,128,013.74
(2) Adjustment process of accounting profit and income tax expense
In RMB
120
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Items Amount of current period
Total 1,554,011,963.22
Current income tax expense accounted by tax and relevant
388,502,990.81
regulations
Influence of income tax before adjustment 2,881,722.95
Influence of non taxable income -43,012,531.89
Impact of non-deductible costs, expenses and losses 6,149,582.63
The current period does not affect the deferred tax assets
-496,699.03
recognized deductible temporary differences or deductible loss
Income tax expense 354,025,065.47
50.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 23,613,918.60 15,990,606.72
Unit current account 38,551,853.57 39,524,470.85
Cancellation of Expressway Provincial Toll
55,851,800.00
Station Project
Total 62,165,772.17 111,366,877.57
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 14,914,357.27 16,911,831.76
Unit current account 10,957,032.13 9,476,588.65
Total 25,871,389.40 26,388,420.41
(3).Cash receivable related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
97,731,650.00 13,180,600.00
subsidies
Total 97,731,650.00 13,180,600.00
121
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
（4）Cash paid related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Issuance fee of medium-term notes 776,869.75 1,122,177.00
Purchase of 21% equity consideration of
1,221,839,292.00
Guanghui
Cash paid for the lease liabilities 5,157,973.11
Total 1,227,774,134.86 1,122,177.00
51. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current Amount of previous
period period
I. Adjusting net profit to cash flow from operating activities -- --
Net profit 1,199,986,897.75 116,852,967.84
Add：Credit loss preparation 1,310,999.95 236,683.81
Impairment loss provision of assets 2,889,394.16
Depreciation of fixed assets, oil and gas assets and consumable biological
645,076,121.84 534,959,817.53
assets
Depreciation of Use right assets
Amortization of intangible assets 18,687,606.48 1,528,552.29
Amortization of Long-term deferred expenses 175,312.50 228,821.22
Loss on disposal of fixed assets, intangible assets and other long-term
deferred assets
Fixed assets scrap loss 135,447.06 184,878.43
Loss on fair value changes
Financial cost 149,343,110.61 137,383,778.08
Loss on investment -172,050,127.56 -66,754,110.72
Decrease of deferred income tax assets 43,283,161.23 12,995,521.70
Increased of deferred income tax liabilities -12,579,420.88 3,081,385.21
Decrease of inventories -321,592.91
122
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Decease of operating receivables 19,900,483.49 -151,425,588.68
Increased of operating Payable -80,544,176.47 120,390,589.10
Net cash flows arising from operating activities 1,815,293,217.25 709,663,295.81
II. Significant investment and financing activities that without cash flows: -- --
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 3,566,075,410.42 3,492,512,939.41
Less: Beginning balance of cash equivalents 2,846,176,803.89 3,052,977,164.15
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 719,898,606.53 439,535,775.26
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
3,566,075,410.42 2,846,176,803.89
Cash
82,551.70 54,482.68
Of which: Cash in stock
Bank savings could be used at any time 3,565,475,338.96 2,845,600,152.23
Other monetary capital could be used at
517,519.76 522,168.98
any time
Balance of cash and cash equivalents at
3,566,075,410.42 2,846,176,803.89
the period end
52. 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 June 30, 2021, the Company's subsidiary Jingzhu Expressway Guangzhu Section Co., Ltd borrowed
123
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
616,030,000.00 yuan from Wuyang Sub-branch of Industrial and Commercial Bank of China (including
67,670,000.00 yuan in non-current liabilities due within one year and 548,360,000.00 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).
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding
Main Places Registrat Ratio (%)
Name of Subsidiary Nature of Business Obtaining Method
of Operation ion Place indire
direct
ct
Under the same
Guangzh Expressway
Guangfo Expressway Co., Ltd. Guangzhou 75.00% control business
ou Management
combination
Guangdong Expressway Technology Guangzh Expressway
Guangzhou 100.00% Investment
Investment Co., Ltd. ou Management
Under the same
Guangdong Guanghui Expressway Co., Guangzh Expressway
Guangzhou 51.00% control business
Ltd. ou Management
combination
Under the same
Jingzhu Expressway Guangzhu Section Guangzh Expressway
Zhongshan 75.00% control business
Co.,Ltd. ou Management
combination
Yuegao Capital Guangzh Investment
Guangzhou 100.00% Investment
Investment(Guangzhou)Co., Ltd. ou management
Notes: holding proportion in subsidiary different from voting proportion: None
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee: None
Significant structure entities and controlling basis in the scope of combination: None
Basis of determine whether the Company is the agent or the principal: None
Other notes：
Yuegao Capital Investment(Hengqin)Co., Ltd. was renamed as Yuegao Capital Investment(Guangzhou)Co.,
Ltd. in June 16, 2021.
(2) Important Non-wholly-owned Subsidiary
In RMB
Shareholding Profit or Loss Dividends Distributed Equity Balance of the
Name of Subsidiary Ratio of Owned by the to the Minority Minority Shareholders
Minority Minority Shareholders in the in the End of the
124
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Shareholders Shareholders in the Current Period Period
(%) Current Period
Guangfo Expressway Co., Ltd. 25.00% 31,281,677.09 37,982,900.91 108,400,149.47
Guangdong Guanghui Expressway
49.00% 253,242,000.77 304,914,520.46 1,942,453,815.27
Co., Ltd.
Jingzhu Expressway Guangzhu
25.00% 66,602,869.25 74,680,354.93 229,763,399.74
Section Co.,Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion
None
125
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance
Name Non- current
Current assets Non- current assets Total assets Current Liabilities Total liabilities
liabilities
Guangfo Expressway Co., Ltd. 475,156,113.44 38,940,988.54 514,097,101.98 78,736,240.45 1,760,263.67 80,496,504.12
Guangdong Guanghui Expressway
1,101,624,619.02 3,341,755,936.81 4,443,380,555.83 255,443,544.26 223,745,551.83 479,189,096.09
Co., Ltd.
Jingzhu Expressway Guangzhu
117,147,025.52 2,194,887,158.23 2,312,034,183.75 460,471,665.13 932,508,919.65 1,392,980,584.78
Section Co.,Ltd.
（Continue）
Year-beginning balance
Name Non- current
Current assets Non- current assets Total assets Current Liabilities Total liabilities
liabilities
Guangfo Expressway Co., Ltd. 475,293,044.67 55,900,968.26 531,194,012.93 67,267,992.50 3,520,527.29 70,788,519.79
Guangdong Guanghui Expressway
1,066,412,539.00 3,451,858,995.85 4,518,271,534.85 305,774,405.46 240,583,197.83 546,357,603.29
Co., Ltd.
Jingzhu Expressway Guangzhu
118,177,442.22 2,272,633,604.38 2,390,811,046.60 470,629,108.30 968,818,396.62 1,439,447,504.92
Section Co.,Ltd.
I n RMB
Amount of current period Amount of previous period
Total Cash flows from Total Cash flows from
Name
Business income Net profit Comprehe operating Business income Net profit Comprehe operating
nsive activities nsive activities
126
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
income income
Guangfo Expressway Co., Ltd. 223,491,338.35 125,126,708.37 157,947,488.85 102,043,817.63 44,304,805.16 59,016,009.03
Guangdong Guanghui Expressway
1,004,523,049.04 516,820,409.74 680,781,673.26 457,060,461.67 144,984,204.47 291,757,191.47
Co., Ltd.
Jingzhu Expressway Guangzhu
560,521,671.83 266,411,477.01 379,260,592.42 232,123,838.11 40,472,322.41 136,327,743.66
Section Co.,Ltd.
127
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(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
Main the
Registration
Name operating Business nature Directl Indirectl investment of
place
place y y joint venture
or associated
enterprise
Zhaoqing, Zhaoqing, Expressway Equity
Zhaoqing Yuezhao Highway Co., Ltd. 25.00%
Management method
Guangdong Guangdong
Shenzhen Huiyan Expressway Co., Expressway Equity
Shenzhen Shenzhen 33.33%
Ltd. Management method
Guangdong Jiangzhong Expressway Zhongshan Expressway Equity
Zhongshan , 15.00%
Co., Ltd. , Management method
Ganzhou kangda Expressway Co., Expressway Equity
Gangzhou Ganzhou 30.00%
Ltd. Management method
Ganzhou Gankang Expressway Co., Expressway Equity
Gangzhou Ganzhou 30.00%
Ltd. Management method
Guangdong Yuepu Small Refinancing Hand all kinds of Equity
Guangzhou Guangzhou 15.48%
Co., Ltd small loans method
Equity
Guangyuan Securities Co., Ltd. Hefei Hefei Security business 2.37%
method
Research and
Equity
Hunan Lianzhi Technology Co., Ltd. Changsha Changsha experimental 10.10%
method
development
128
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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.，Yuepu Small Refinancing 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 64,029,364,790.07 61,811,795,291.30
Non-current assets 36,583,479,739.43 29,078,621,012.06
Total assets 100,612,844,529.50 90,890,416,303.36
Current liabilities 56,859,657,145.26 47,486,651,848.27
Non-current Liabilities 12,394,345,520.50 12,549,458,553.05
Total liabilities 69,254,002,665.76 60,036,110,401.32
Minority Shareholders’ Equity 13,172,068.16 12,544,928.96
Shareholders’ equity attributable to
31,345,669,795.58 30,841,760,973.08
shareholders of the parent
Pro rata share of the net assets calculated 743,330,876.59 731,381,188.20
--Goodwill 207,095,632.54 207,095,632.54
The book value of equity investments in
950,426,509.13 938,476,820.74
joint ventures
Fair value of equity investment of
associated enterprises with open 824,756,178.54 927,203,934.72
quotation
Buinsess incme 2,275,384,578.36 2,115,128,481.79
Net profit 846,756,168.54 617,902,373.05
Other comprehensive income 84,942,800.98 99,219,704.73
Total comprehensive income 931,698,969.52 717,122,077.78
Dividends received from associates duri
10,348,258.20 11,940,297.90
ng the year
129
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(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 1,475,361,117.24 1,443,470,485.44
Total amount of the pro rata calculation -- --
--Net profit 102,343,851.05 -2,270,918.50
--Total comprehensive income 102,343,851.05 -2,270,918.50
Other note
The book value of the long-term equity investment of associates and joint ventures other than Guoyuan
Securities Co., Ltd is not higher than 5% of the company’s total owner’s equity attributable to the parent
company. The company considers other associates and joint ventures to be non-significant joint ventures and
associates.
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
IX. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
130
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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 28). The Company's policy is to maintain the floating
interest rate of these borrowings, and at the same time to reasonably reduce the risk of interest rate fluctuation by
shortening the term of a single loan and specifically agreeing on prepayment terms.
（3）Other price risk
The investments held by the Company are classified as financial assets measured at fair value and whose
changes are included in other comprehensive income and are measured at fair value on the balance sheet date.
Therefore, the Company bears the risk of changes in the securities market.
2.Credit risk
As of June 30, 2021, the largest credit risk exposure that may cause financial losses of the Company mainly
comes from the loss of financial assets of the Company caused by the failure of the other party to perform its
obligations.
In order to reduce credit risk, the Company only deals with recognized and reputable customers. In addition,
the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate
bad debt provisions are made for unrecoverable amounts. Consequently, the Company's management believes that
the Company's credit risk has been greatly reduced.
The Group's working capital is deposited in banks with higher credit rating, so the credit risk of working
capital is relatively low.
Financial assets overdue or impaired;
(1) Aging analysis of financial assets with overdue impairment: Not existed
(2) Analysis of financial assets that have suffered single impairment: Refer to "4, Other Receivables" in VII
and "10, Investment in Other Equity Instruments" in VII of this section for details.
3.Liquidity risk
When managing liquidity risks, the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
131
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
loan agreement.
X. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fir value Fir value Fir value
Items
measurement items measurement items measurement items Total
at level 1 at level 2 at level 3
I. Consistent fair value
-- -- -- --
measurement
（3）Other equity instrument
889,263,688.32 748,348,301.73 1,637,611,990.05
investment
Total assets continuously measured at
889,263,688.32 748,348,301.73 1,637,611,990.05
fair value
II. Non –persistent measure -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of June 30, 2021 of 3.78 yuan, the final calculation of fair value was
889,263,688.32 yuan.
3. Fair value of financial assets and liabilities not measured at fair value
Items Fair value as of June 30, 2021 Valuation technology Unobservable input value
Unlisted equity 748,348,301.73 Discounted method of future cash Discount rate
investment 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
132
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
fair value and the fair value.
XI. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
Redistricted company of the company of the
Name Registered address Nature Company's Company’s vote
capital
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
Note ：
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Deng
Xiaohua. Date of establishment: June 23, 2000. As of June 30, 2021,Registered capital: 26.8 billion yuan. It is a
solely state-owned limited company. Business scope：equity management, organization of asset reorganization and
optimized allocation, raising funds by means including mortgage, transfer of property rights and joint stock
system transformation, project investment, operation and management, traffic infrastructure construction, highway
and railway project operation and relevant industries, technological development, application, consultation and
services, highway and railway passenger and cargo transport, ship industry, relevant overseas businesses; The
value-added communication business.
The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.
2.Subsidiaries of the Company
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note VIII(3), Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relation with the Company
Shenzhen Huiyan Expressway Co., Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co., Ltd. Associated enterprises of the Company
Ganzhou Kangda Expressway Co., Ltd. Associated enterprises of the Company
Ganzhou Gankang Expressway Co., Ltd. Associated enterprises of the Company
133
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Guangdong Jiangzhong Expressway Co., Ltd. Associated enterprises of the Company
Guangdong Yuepu Small Refinancing 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
Guangdong Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Property Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Information technology
Fully owned subsidiary of the parent company
Co., ltd.
Guangdong Union Electron Service Co., ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Maozhan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co., ltd. Fully owned subsidiary of the parent company
Guangdong Provincial Freeway Co.,Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Group Finance Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Read & Bridge Construction Development Co., Fully owned subsidiary of the parent company
134
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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 Yuegan Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangshenzhu Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Traffic Technology Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co., Ltd. Fully owned subsidiary of the parent company
Guangzhou Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co., Ltd Fully owned subsidiary of the parent company
Guangdong Traffic Development 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 P lanning & Design Institute Co.,
Shares of parent company
Ltd.
Guangzhongjiang Expressway Project Management Dept Managed by the parent company
Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company
Guangzhou Aitesi Communication equipment Co., Ltd. Associated enterprises controlled by the same parent company
Jiangmen Jianghe Expressway Co., Ltd. Associated enterprises controlled by the same parent company
Guangdong Shenshan Expressway Co., Ltd. Associated enterprises controlled by the same parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co.,
Associated enterprises controlled by the same parent company
Ltd.
Foshan Guangshan Expressway Co., Ltd. Associated enterprises controlled by the same parent company
Guangdong Feida Traffic Engineering Co., Ltd. Associated enterprises controlled by the same parent company
Poly Changda Engineering Co., Ltd. Shares of parent company
Guangdong Changda Road Conservation Co., Ltd. Shares of parent company
Guangdong Road Network Digital Media Information
Joint venture of parent company
Technology Co. Ltd
Guangdong Xiangfei Highway Engineering Supervision Co.,
Subsidiary of the parent company
Ltd
Guangdong Jiangzhao Expressway Management Center Other significant impacts of parent company
5. List of related-party transactions
135
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Content of related Amount of current
Related parties Amount of last period
transaction period
1Business cost
Guangdong Union electronic services co., Ltd. Service 14,427,549.75 6,519,360.51
Boly Changda Engineering Co., Ltd. Service 4,459,339.00 51,358,887.00
Guangdong Feida Traffic Engineering Co., Ltd. Maintenance 2,066,264.07 2,020,413.97
Guangdong East Thinking Management Technology
Maintenance，Service 30,000.00
Development Co., Ltd.
Guangdong Humen Bridge Co., Ltd. Service 20,981.64
Subtotal 20,983,152.82 59,919,643.12
2.Financial expenses
Jiangzhou Expressway Co., Ltd. Interest 27,405.00 712,530.00
Subtotal 27,405.00 712,530.00
3.Management expenses
Guangdong East Thinking Management Technology OA Maintenance
60,000.00 60,000.00
Development Co., Ltd.
Guangdong Union electronic services co., Ltd. Service 17,094.71
Subtotal 60,000.00 77,094.71
4.Construction in process
Maintenance Purchase assets 141,402,869.60 47,564,260.01
Guangdong Communication P lanning & Design
Purchase assets 7,455,615.00
Institute Co., Ltd.
Guangdong Xinyue traffic Investment Co., Ltd. Purchase assets 584,557.32 1,908,423.62
Guangdong Xiangfei Highway Supervision Co., Ltd. Purchase assets 208,829.00 89,603.00
Guangdong Guanyue Road & Bridge Co., Ltd. Purchase assets 3,068,158.00
Guangdong Jiaoke Testing Co., Ltd. Purchase assets 391,026.50
Guangdong Hualu Traffic Technology Co., Ltd. Purchase assets 2,002,200.00
Subtotal 149,651,870.92 55,023,671.13
Related transactions on sale goods and receiving services
In RMB
Related party Content
Amount of current period Amount of previous period
136
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Related party Content
Amount of current period Amount of previous period
1.Business income
Jingzhu Expressway Guangzhu North section Commission
9,622,924.52 9,734,292.46
Co., Ltd. management fee
Guangdong Provincial Freeway Co.,Ltd. Project 1,773,900.00 1,773,900.00
Guangdong Tongyi Expressway Service Area
water and electricity
Co., Ltd 577,014.73 378,440.26
Poly Changda Engineering Co., Ltd. water and electricity 103,082.55 76,900.41
Guangdong Feida Traffic Engineering Co., Ltd CPC card sales revenue 56,991.15 138,053.09
Guangdong Xinyue Traffic Investment Co.,
Project 52,187.72 15,840.71
Ltd.
Guangdong Expressway Media Co., Ltd. water and electricity 49,750.19 10,992.74
Guangdong Yueyun Traffic Co., Ltd. water and electricity 18,905.54
Guangshenzhu Expressway Co., Ltd. Project 8,407.08
Guangdong Union electronic services co., Ltd. Promotion fees 1,525,613.18
Subtotal 12,254,756.40 13,662,439.93
(2) Information of related lease
The Company was lessor：
In RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of lease assets
in this year in last year
Guangdong Expressway Advertising lease
842,169.89 12,905.92
Media Co., Ltd.
Guangdong Litong
Technology Investment Co., Communication Piping 819,439.23 545,439.38
Ltd.
Guangdong Guanyue Road &
Service Area Lease 232,891.43 232,891.43
Bridge Co., Ltd.
Total 1,894,500.55 791,236.73
- The company was lessee：
In RMB
Category of leased The lease income confirmed
Lessor Category of leased assets
assets in this year
Guangdong Litong Real Estate Office space
4,604,363.83 4,450,575.83
Investment Co., Ltd
Jingzhu Expressway Guangzhu North Activity place 53,508.72 53,508.72
137
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
section Co., Ltd.
Guangdong Gaoda Property Office space
50,321.37 49,582.73
Development Co., Ltd.
Advertising colum
Zhaoqing Yuezhao Highway Co., Ltd. 124,031.00
n lease
Guangzhou Yueyun Traffic Co., Ltd. Car rental fee 59,601.00
Total 4,708,193.92 4,737,299.28
(3) Inter-bank lending of capital of related parties
In RMB
Amount
Related party borrowed and Initial date Due date Notes
loaned
Borrowed
Guangdong Jiangzhong
36,000,000.00 November 14,2018 November 13,2023 Reppaid on 8 January 2021
Expressway Co Loaned., Ltd.
Loaned
(4 ）Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
2,935,588.00 2,182,956.00
personnel
（5） Other significant related-party transactions
√ Applicable □Not applicable
（1）Deposit business
Related party Relationship Maximum daily Deposit interest Beginning The amount Ending balance
deposit limit rate range balance（10， incurred（10， （10，000）
（10，000） 000） 000）
Guangdong 300,000.00 1.725%-3.57% 103,110.58 74,933.67 178,044.25
Communicatio Controlled by
ns Group the same parent
Finance Co., company
Ltd
（2）Loan business
138
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Related party Relationship Beginning The amount Ending balance
Loan limit（10， Loant interest
balance（10， incurred（10， （10，000）
000） rate range
000） 000）
Guangdong
Communicatio Controlled by
ns Group the same parent 400,000.00 3.15% 20,000.00 20,000.00
Finance Co., company
Ltd
③Credit extension or other financial services
Related party Relationship Business type Total amount（10，000） Actual amount
incurred（10，000)
Guangdong
Communications Controlled by the same
Credit extension 120,000.00 20,000.00
Group Finance Co., parent company
Ltd
The Company respectively signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co., Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 25, 2017; and signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co., Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 22, 2017 respectively, joined the cash pool of Guangdong Communications Group
Finance Co., Ltd.
Guangdong Guanghui Expressway Co., Ltd respectively signed the "Cash Management Business
Cooperation Agreement" with Guangdong Communications Group Finance Co., Ltd and Agricultural Bank of
China Co., Ltd Guangdong Branch on May 19, 2020, joined the cash pool of Guangdong Communications Group
Finance Co., Ltd.
(6) Other related-party transactions
-On June 15, 2016,The company’s 29th meeting (Provisional) of the seventh board of directors was
convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of
Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting, agreed
that Guangdong Provincial Fokai Expressway Co., Ltd entrusts Guangdong Provincial Highway Construction Co.,
Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway, and handling the related matters of the entrustment of the
construction management.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Name Related party Amount at year end Amount at year beginning
139
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Guangdong Xinyue Traffic Investment
Contract assets 119,242.50 119,242.50
Co., Ltd.
广 Guangdong Feida Traffic Engineering
Contract assets 48,230.00 48,230.00
Co.,Ltd.
Guangdong Road & Bridge Construction
Contract assets 25,262.45 25,262.45
Development Co., ltd.
Contract assets Zhaoqing Yuezhao Expressway Co., Ltd. 22,667.85 22,667.85
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 4,530.99
Contract assets Guangdong Humen Bridge Co., Ltd. 2,700.00
Total 244,641.79 247,341.79
Guangdong Union electron Service Co.,
Account receivable 68,390,397.52 100,047,025.70
Ltd.
Account receivable Guangdong Humen Bridge Co., Ltd. 25,016,457.94 11,044,082.54
Jingzhu Expressway Guangzhu North
Account receivable 4,936,650.00 5,980,163.99
Section Co., Ltd.
Guangdong Feida Traffic Engineering
Account receivable 2,651,661.50 14,607.55 3,274,356.00 45,916.00
Co., Ltd.
Account receivable Guangdong Provincial Freeway Co.,Ltd. 1,795,132.00 21,232.00
Guangdong Litong Technology
Account receivable 533,136.00
Investment Co., Ltd.
Account receivable Guangdong Road Construction Co., ltd. 249,760.00 21,830.40 1,037,305.45 65,491.20
Guangdong Xinyue Traffic Investment
Account receivable 175,139.60 26,888.90 300,009.20 148,208.50
Co., Ltd.
Account receivable Guangzhenzhu Expressway Co., Ltd. 69,736.00 69,736.00
Guangdong Road & Bridge Construction
Account receivable 61,891.30 61,891.30
Development Co., lt
Account receivable Guangdong Boda Expressway Co., Ltd. 22,740.00 22,740.00
Guangdong Jiangzhong Expressway Co.,
Account receivable 19,708.00
Ltd.
Account receivable Guangdong Chaohui Expressway Co., 7,367.20 7,367.20
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Ltd.
Account receivable Guangdong Yueyun Traffic Co., Ltd. 3,032.00 15,032.00
Guangdong Guangle Expressway Co.,
Account receivable 7,248.00
Ltd.
Guangdong Guangzhu West Line
Account receivable 223,500.00
Expressway Co., Ltd.
Account receivable Guangdong Expressway Media Co., Ltd. 1,966,548.00
Total 103,913,101.06 63,326.85 124,097,945.38 259,615.70
Advanced payment Zhaoqing Yuezhao Highway Co., Ltd. 151,938.00 151,938.00
Guangdong Feida Traffic Engineering
Advanced payment 149,400.00 149,400.00
Co., Ltd.
Guangdong Litong Real Estate
Advanced payment 776,413.03
Investment Co., Ltd.
Total 301,338.00 1,077,751.03
Dividend Receivable Ganzhou Kangda Expressway Co., Ltd,. 27,000,000.00
Dividend Receivable Ganzhou Gankang Expressway Co., Ltd. 1,500,000.00
Total 27,000,000.00 1,500,000.00
Other Account receivable Ganzhou Gankang Expressway Co., Ltd. 22,500,000.00 45,000,000.00
Guangdong Litong Real Estate
Other Account receivable 1,689,127.36 1,666,147.36
Investment Co., Ltd.
Other Account receivable Guangdong Provincial Freeway Co.,Ltd. 463,491.88 463,491.88
Other Account receivable Zhaoqing Yuezhao Highway Co., Ltd. 350,000.00 350,000.00
Guangdong Tongyi Expressway Service
Other Account receivable 152,737.65
Area Co., Ltd.
Guangdong Union electron Service Co.,
Other Account receivable 50,000.00 50,000.00
Ltd.
Other Account receivable Guangdong Expressway Media Co., Ltd. 24,832.25 1,218,110.44
Guangdong Guangzhu West Line
Other Account receivable 20,000.00 20,000.00
Expressway Co., Ltd.
Other Account receivable Poly Changda Engineering Co., Ltd. 18,663.97 10,124.14
Guangdong Gaoda Property
Other Account receivable 16,268.00 16,268.00
Development Co., ltd.
Other Account receivable Guangdong Xinyue Traffic Investment 5,340.03
141
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Co., Ltd.
Other Account receivable Guangshenzhu Expressway Co., Ltd. 60,640.00
Other Account receivable Guangdong Boda Expressway Co., Ltd. 22,740.00
Total 25,285,121.11 48,882,861.85
Non-current assets due Guangdong Communication Group
6,137,170.84
within 1 year Finance Co., ltd.
Total 6,137,170.84
Guangdong Litong Technology
Use right assets 16,882,667.46 21,487,031.29
Investment Co., ltd.
Guangdong Jingzhu Expressway
Use right assets 954,238.28 1,007,747.00
Guangzhu North Section Co., Ltd.
Total 17,836,905.74 22,494,778.29
Other Non-Current Assets Guangdong Road Construction Co., Ltd. 7,089,990.48 7,089,990.48
Guangdong Feida Traffic Engineering
Other Non-Current Assets 1,801,070.70
Co., Ltd.
Guangdong Traffic Development Co.,
Other Non-Current Assets 333,398.00
Ltd.
Guangdong Tianlu New Energy
Other Non-Current Assets 333,398.00
Investment Co., Ltd.
Other Non-Current Assets Poly Changda Engineering Co., Ltd. 11,599,273.00
Total 9,224,459.18 19,022,661.48
（2）Payables
In RMB
Amount at year Amount at year
Name Related party
end beginning
Guangdong Communication Group Finance Co.,
Short-term loan 200,175,000.00 200,192,500.00
ltd.
Total 200,175,000.00 200,192,500.00
Guangzhongjiang Expressway Project
Account payable 28,000,000.00 28,000,000.00
Management Dept
Account payable Guangdong Provincial Freeway Co.,Ltd. 8,746,491.18 8,746,491.18
Account payable Guangdong Xinyue Traffic Investment Co., Ltd 8,696,753.69 13,149,675.40
142
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount at year Amount at year
Name Related party
end beginning
Account payable Poly Changda Engineering Co., Ltd. 6,818,921.30 25,621,536.30
Account payable Guangzhou Xinyue Asphalt Co., Ltd. 4,013,984.24 47,362.94
Guangdong Communication P lanning & Design
Account payable 3,010,539.80 8,929,645.80
Institute Co., Ltd.
Account payable Guangdong Union Electron Service Co.,Ltd. 2,672,961.97 254,011.26
Account payable Guangdong Hualu Traffic Technology Co., Ltd. 1,708,586.87 2,198,660.67
Account payable Guangdong Feida Traffic Engineering Co., Ltd. 1,628,342.10 500,864.10
Guangzhou Aitesi Communication Equipment
Account payable 1,283,018.78 1,283,018.78
Co., Ltd.
Guangdong East Thinking Management
Account payable 739,010.55 1,584,416.70
Technology Development Co., Ltd.
Account payable Guangdong Changda Road Maintenance Co., Ltd. 309,101.00 309,101.00
Account payable Guangdong Lulutong Co., Ltd. 269,526.40 3,560,871.60
Guangdong Litong Technology Investment Co.,
Account payable 85,074.95 85,074.95
Lt
Account payable Guangdong Jiaoke Testing Co., Ltd. 88,880.00
Account payable Guangdong Yueyun Traffic Co., Ltd. 268,021.00
Total 67,982,312.83 94,627,631.68
Guangdong Road Network Digital Media
Advance received 2,777.78 2,777.78
Information Technology Co. Ltd.
Total 2,777.78 2,777.78
Other Payable account Poly Changda Engineering Co., Ltd. 19,275,354.39 20,042,113.05
Other Payable account Guangdong Union Electron Service Co.,Ltd. 2,021,914.48 956,272.04
Other Payable account Guangdong Xinyue Traffic Investment Co., Ltd. 1,825,829.92 1,889,981.61
Other Payable account Guangdong Feida Traffic Engineering Co., Ltd. 1,658,998.35 1,700,740.34
Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1,630,765.00 1,630,765.00
Other Payable account Guangdong Hualu Traffic Technology Co., Ltd. 1,410,484.00 1,327,451.00
Other Payable account Guangdong Lulutong Co., Ltd. 1,084,995.15 1,084,995.15
Other Payable account Guangzhou Xinyue Asphalt Co., Ltd. 567,221.00 567,221.00
Guangdong Communication P lanning & Design
Other Payable account 238,479.70 238,479.70
Institute Co., Ltd.
Guangzhongjiang Expressway Project
Other Payable account 200,000.00 200,000.00
Management Dept
Other Payable account Guangzhou Xinyue Traffic Technology Co., Ltd. 171,809.00 171,809.00
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount at year Amount at year
Name Related party
end beginning
Guangdong Litong Technology Investment Co.,
Other Payable account 131,962.50 167,591.50
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 51,697.00 58,991.40
Technology Development Co., Ltd.
Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 900.00 900.00
Other Payable account Guangdong Provincial Freeway Co.,Ltd. 1,221,839,292.00
Total 30,460,410.49 1,252,066,602.79
Non-current liabilities due 1 year Guangdong Jiangzhong Expressway Co., Ltd. 43,065.00
Total 43,065.00
Long-term payable Guangdong Jiangzhong Expressway Co., Ltd. 36,000,000.00
Total 36,000,000.00
7. Related party commitment
None
XII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
5.Other
None
XIII. 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 June 30,2021, The
accumulated expenses occurred of Sanboto Shuikou Highway extension project was 2.599 billion yuan.
No Contract Counterparty Economic Content Contract Amount Fulfilled as of June 30, 2021
1 China Railway Tunnel Group Co., 262,803,912.00 257,051,236.72
Civil Engineering
Ltd.
2 Poly Changda Engineering Co., Ltd. Civil Engineering 700,827,037.00 664,276,757.53
3 China Railway 18th Bureau Group 216,279,360.00 210,849,755.44
Civil Engineering
Co., Ltd.
4 CCCC First Navigation Engineering Civil Engineering 319,869,654.00 313,831,969.84
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Bureau Co., Ltd
2. Contingency
(1) Significant contingency at balance sheet date
If there is no major policy factors affected ，The toll operation period of Guangfo Expressway operated by
the subsidiary Guangfo Expressway Co., Ltd will be less than one year. According to relevant policies and
regulations, after the toll operation period ends, Guangfo Expressway will be handed over free of charge. As the
specific plan for the transfer of Guangfo Expressway has not been determined, the Company cannot reasonably
estimate the expected liabilities that may arise from the transfer of Guangfo Expressway.
(2) The Company have no significant contingency to disclose, also should be stated
None
XIV. Events after balance sheet date
None。
XV.Other significant events
1. Segment information
The company's business for the Guangfo Expressway , the Fokai Expressway，Guanghui Expressway and Jingzhu
Expressway Guangzhu Section toll collection and maintenance work, the technology industry and provide
investment advice, no other nature of the business, no reportable segment.
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
Subsidy item Category Opening balance New subsidy The carry-over in Other Closing balance Presentation items carried over Asset-related/revenue-relat
amount in current current period is changes into profit or loss in the current ed
period included in profit period
and loss amount
Cancel the special subsidy Financial 44,545,569.64 6,783,738.24 37,761,831.40 Other income Assets related
for the expressway appropriation
provincial toll station project
(2) Government subsidies included in current profits and losses using the total amount method
Subsidy item Category Amount included in profit or loss in Presentation items included in profit or Asset-related/revenue-related
the current period loss in the current period
Subsidy for post stabilization Subsidy for post stabilization 932,076.28 Other income Income related
Enterprises with industrial Enterprises with industrial training 1,243,500.00 Other income Income related
training subsidies subsidies
147
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
3.Other important transactions and events have an impact on investors decision-making
（1）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.
（2）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 June 31, 2021, The company has paid all the equity
transfer funds 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
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.
XVI..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
148
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category
Amount Proporti Amount Proportio Book value Amount Proportion( Amou Proportio Book value
on(%) n(%) %) nt n(%)
Of which
Accrual of bad debt provision by portfolio 19,737,518.67 100.00% 19,737,518.67 27,004,827.41 100.00% 27,004,827.41
Of which：
Aging portfolio 19,737,518.67 100.00% 19,737,518.67
Total 19,737,518.67 19,737,518.67 27,004,827.41 100.00% 27,004,827.41
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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 19,737,518.67 0.00 0.00%
Total 19,737,518.67 0.00 --
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） 19,737,518.67
Total 19,737,518.67
(2) Accounts receivable withdraw, reversed or collected during the reporting period
None
（3）The current accounts receivable write-offs situation
None
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services
19,737,518.67 100.00%
Co., Ltd.
Total 19,737,518.67 100.00%
（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
150
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
2.Other receivable
In RMB
Items
Year-end balance Year-beginning balance
Dividend receivable 77,609,011.14 2,705,472.90
Other receivable 30,067,855.02 51,442,641.63
Total 107,676,866.16 54,148,114.53
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks
1,205,472.90 1,205,472.90
investment No.1 Limited partnership enterprise
Ganzhou Gangkang Expressway Co., Ltd. 1,500,000.00
China Everbright Bank 49,403,538.24
Ganzhou Kangda Expressway Co., Ltd. 27,000,000.00
Total 77,609,011.14 2,705,472.90
（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 22,500,000.00 45,000,000.00
Balance of settlement funds for
30,844,110.43 30,844,110.43
securities transactions
Cash deposit 2,275,460.36 2,490,271.36
Petty cash 2,265,469.59 2,140,410.04
Other 3,120,507.07 1,905,542.23
Less：Bad debt provision 30,937,692.43 30,937,692.43
Total 30,067,855.02 51,442,641.63
2）Bad debt provision
In RMB
Bad Debt Reserves Stage 1 Stage 2 Stage 3 Total
151
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Expected credit Expected credit loss over Expected credit losses for
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
93,582.00 30,844,110.43 30,937,692.43
1, 2021
Balance as at January
—— —— —— ——
1, 2021
Balance as at June
93,582.00 30,844,110.43 30,937,692.43
30,2021
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year 28,249,728.74
1-2 years 962,380.70
2-3 years 78,763.50
Over 3 years 31,714,674.51
Over 5 years 31,714,674.51
Total 61,005,547.45
3) 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
Reversed or Closing
Category Opening balance
Accrual collected write - off Other balance
amount
Accrual of single item 30,844,110.43 30,844,110.43
Accrual of
93,582.00 93,582.00
portfolio-Aging portfolio
Total 30,937,692.43 30,937,692.43
Where the current bad debts back or recover significant amounts:None
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
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 balance of
Name Nature Aging balance of the
balance bad debt provision
accounts
receivable(%)
Securities trading settlement
Kunlun Securities Co.,Ltd 30,844,110.43 Over 5 years 50.56% 30,844,110.43
funds
Ganzhou Gankang Within 1
Less receivable 22,500,000.00 36.88%
Expressway Co., Ltd. year
Within 1
Petty cash Petty cash 2,265,469.59 3.71%
year
Guangdong Litong Real Within 1
Deposit 1,630,467.36 2.67%
Estates Investment Co., Ltd. year
Guangdong Litong Real
Vehicle parking deposit 58,660.00 Over 5 years 0.10%
Estates Investment Co., Ltd.
China Railway No.18 Bureau Pay compensation for local Within 1
963,300.00 1.58%
Group Co., Ltd problems on behalf year
Total -- 58,262,007.38 -- 95.50% 30,844,110.43
(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
3. Long-term equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment
Book Balance Book value Book Balance Book value
provision provision
153
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Investment in subsidiaries 3,257,062,345.85 3,257,062,345.85 3,232,062,345.85 3,232,062,345.85
Investment in joint
2,337,671,192.04 2,337,671,192.04 2,296,866,331.26 2,296,866,331.26
ventures and associates
Total 5,594,733,537.89 5,594,733,537.89 5,528,928,677.11 5,528,928,677.11
154
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period
Closing balance of
Withdrawn
Name Opening balance Decreased Closing balance impairment
Add investment impairment Other
investment provision
provision
Jingzhu Expressway Guangzhu Section
871,171,883.08 871,171,883.08
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 (Guangzhou)
84,500,000.00 25,000,000.00 109,500,000.00
Co., Ltd.
Guanghui Expressway Co., Ltd. 2,025,676,105.10 2,025,676,105.10
Total 3,232,062,345.85 25,000,000.00 3,257,062,345.85
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Incre
Decr Closing
ase Announced for Provisio
ease Investment Other balance of
Name Opening balance in Other changes distributing n for Othe Closing balance
in income under comprehensiv impairment
inves in equity cash dividend impairm r
inves equity method e income provision
tmen or profit ent
tment
t
155
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
I. Joint ventures
II. Associated enterprises
Guangdong Jiangzhong Expressway
192,252,504.94 11,705,544.07 203,958,049.01
Co., Ltd.
Ganzhou Gankang Expressway Co.,
145,774,620.72 9,624,187.44 155,398,808.16
Ltd.
Ganzhou Kangda Expressway Co., Ltd. 216,814,090.50 24,917,168.32 27,000,000.00 214,731,258.82
ShenzhenHuiyan Expressway Co., Ltd. 285,408,755.15 17,002,946.80 302,411,701.95
Guoyuan Securities Co.,Ltd. 938,476,820.74 20,302,738.27 1,995,208.32 10,348,258.20 950,426,509.13
Zhaoqing Yuezhao Highway Co., Ltd. 302,436,218.83 29,706,901.01 39,675,000.00 292,468,119.84
Guangdong Yuepu Small Refinancing
215,703,320.38 6,351,644.00 -3,778,219.25 218,276,745.13
Co., Ltd
Subtotal 2,296,866,331.26 119,611,129.91 1,995,208.32 -3,778,219.25 77,023,258.20 2,337,671,192.04
Total 2,296,866,331.26 119,611,129.91 1,995,208.32 -3,778,219.25 77,023,258.20 2,337,671,192.04
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Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 687,416,026.88 365,529,996.74 288,021,522.60 326,653,026.85
Other 5,218,671.25 1,710,164.19 5,558,207.44 2,004,931.99
Total 692,634,698.13 367,240,160.93 293,579,730.04 328,657,958.84
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted
655,349,778.63 380,951,378.72
by cost method
Long-term equity investment income accounted
119,611,129.91 55,853,351.49
by equity method
Investment return on investments held to maturity
49,403,538.24 50,785,213.04
during the holding period
Interest income from debt investment during
19,667,579.79 25,494,258.90
holding period.
Total 844,032,026.57 513,084,202.15
XVII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current assets -135,447.06
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according 9,298,314.52
to the country’s unified standards
Net amount of non-operating income and expense except the aforesaid items 2,335,345.98
Other non-recurring Gains/loss items 624,054.51
Less :Influenced amount of income tax 3,030,247.74
Influenced amount of minor shareholders’ equity (after tax) 2,974,828.21
157
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2021
Total 6,117,192.00 --
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)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
10.16% 0.41 0.41
shareholders of the Company
Net profit attributable to common
shareholders of the Company
after 10.09% 0.40 0.40
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
（1）．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
（2）. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accounting stand
ards. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of the o
verseas institution should be indicated
158
