Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Guangdong Provincial Expressway Development Co., Ltd.
The Semi-Annual Financial Report 2022
August 2022
1
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Financial Report
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Guangdong Provincial Expressway Development Co., Ltd.
June 30,2022
In RMB
Items June 30,2022 January 1,2022
Current asset：
Monetary fund 4,044,215,849.07 2,956,404,390.55
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 125,230,522.84 159,053,399.87
Financing of receivables
Prepayments 5,721,764.07 5,227,647.09
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 13,847,533.70 13,761,124.23
Including：Interest receivable
Dividend receivable 1,205,472.90 1,205,472.90
Other receivable 12,642,060.80 12,555,651.33
Repurchasing of financial assets
Inventories 640,079.66
Contract assets 5,286,462.45
Assets held for sales
Non-current asset due within 1 year 3,413,274.50 2,782,974.53
Other current asset 22,047,193.48 21,213.96
Total of current assets 4,214,476,137.66 3,143,177,292.34
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 2,820,130,077.40 2,627,130,681.24
2
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Items June 30,2022 January 1,2022
Other equity instruments investment 1,524,908,322.00 1,577,175,826.05
Other non-current financial assets 91,000,000.00
Property investment 2,778,704.17 2,889,263.41
Fixed assets 10,148,446,100.45 10,639,272,192.02
Construction in progress 475,554,879.75 351,130,455.06
Production physical assets
Oil & gas assets
Use right assets 8,937,861.63 14,100,325.01
Intangible assets 256,314,659.97 268,504,176.43
Development expenses
Goodwill
Long-germ expenses to be amortized 2,103,750.00
Deferred income tax asset 170,626,707.99 225,243,885.27
Other non-current asset 24,046,566.62 25,038,952.48
Total of non-current assets 15,522,743,879.98 15,732,589,506.97
Total of assets 19,737,220,017.64 18,875,766,799.31
Current liabilities
Short-term loans 320,266,666.67
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 133,068,489.27 264,487,139.44
Advance receipts 3,744,384.23 10,660,208.51
Contract liabilities 22,000.00
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 19,696,314.69 19,213,631.91
Tax payable 136,183,035.82 164,612,512.99
Other account payable 1,454,190,361.08 177,970,483.76
Including：Interest payable
Dividend payable 1,312,635,476.59 22,941,943.24
Other payable 141,554,884.49 155,028,540.52
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 469,749,328.35 525,644,368.26
Other current liability 1,133,695.05 726,336.48
Total of current liability 2,538,032,275.16 1,163,336,681.35
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 4,534,385,100.00 4,572,621,200.00
Bond payable 1,427,903,757.98 1,427,434,086.58
Including：preferred stock
Sustainable debt
Lease liability 222,305.08 2,773,459.76
Long-term payable 2,517,493.12 3,461,832.74
Long-term remuneration payable to staff
Expected liabilities
Deferred income 69,833,092.84 69,228,093.11
Deferred income tax liability 286,609,571.34 315,922,287.64
Other non-current liabilities
3
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Items June 30,2022 January 1,2022
Total non-current liabilities 6,321,471,320.36 6,391,440,959.83
Total of liability 8,859,503,595.52 7,554,777,641.18
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 733,168,659.66 713,460,518.49
Less：Shares in stock
Other comprehensive income 157,305,395.74 192,177,466.34
Special reserve
Surplus reserves 1,225,375,330.56 1,225,375,330.56
Common risk provision
Retained profit 4,342,645,903.64 4,760,618,543.78
Total of owner’s equity belong to the
8,549,301,415.60 8,982,437,985.17
parent company
Minority shareholders’ equity 2,328,415,006.52 2,338,551,172.96
Total of owners’ equity 10,877,716,422.12 11,320,989,158.13
Total of liabilities and owners’ equity 19,737,220,017.64 18,875,766,799.31
Legal Representative: Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
4
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
2.Parent Company Balance Sheet
In RMB
Items June 30,2022 January 1,2022
Current asset：
Monetary fund 2,503,652,138.67 1,860,836,127.30
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 23,382,037.78 24,208,692.49
Financing of receivables
Prepayments 1,513,664.00 4,311,419.00
Other account receivable 109,927,575.03 6,885,982.60
Including：Interest receivable
Dividend receivable 103,205,472.90 1,205,472.90
Other receivable 6,722,102.13 5,680,509.70
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 279,177,659.24 278,562,652.27
Other current asset 380,399.40 11,067.41
Total of current assets 2,918,033,474.12 2,174,815,941.07
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 5,973,677,507.66 5,792,610,802.46
Other equity instruments investment 1,524,908,322.00 1,577,175,826.05
Other non-current financial assets
Property investment 2,526,565.92 2,637,125.16
Fixed assets 5,502,957,671.60 5,707,608,552.14
Construction in progress 71,591,095.39 43,594,243.12
Production physical assets
Oil & gas assets
Use right assets 7,840,662.26 12,611,748.50
Intangible assets 136,752,374.21 140,756,147.03
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 164,802,202.16 218,624,401.07
Other non-current asset 14,434,283.48
Total of non-current assets 13,385,056,401.20 13,510,053,129.01
Total of assets 16,303,089,875.32 15,684,869,070.08
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 86,315,059.08 105,685,908.27
Advance receipts 752,954.28 250,984.75
Contract Liabilities
Employees’ wage payable 6,798,097.51 6,825,973.81
Tax payable 5,588,770.60 7,330,856.79
Other account payable 1,653,510,704.37 690,062,820.89
Including：Interest payable
Dividend payable
5
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Items June 30,2022 January 1,2022
Liabilities held for sales
Non-current liability due within 1 year 401,413,978.99 456,996,690.91
Other current liability 638,149.43 37,299.97
Total of current liability 2,155,017,714.26 1,267,190,535.39
Non-current liabilities：
Long-term loan 4,053,695,100.00 4,058,096,200.00
Bond payable 1,427,903,757.98 1,427,434,086.58
Including：preferred stock
Sustainable debt
Lease liability 2,445,724.58
Long-term payable 2,517,493.12 3,461,832.74
Long-term remuneration payable to staff
Expected liabilities
Deferred income 8,479,655.90 10,120,879.64
Deferred income tax liability 48,353,580.55 66,399,854.20
Other non-current liabilities
Total non-current liabilities 5,540,949,587.55 5,567,958,577.74
Total of liability 7,695,967,301.81 6,835,149,113.13
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 934,939,522.68 934,851,285.51
Less：Shares in stock
Other comprehensive income 157,305,395.74 192,177,466.34
Special reserve
Surplus reserves 1,045,403,063.00 1,045,403,063.00
Retained profit 4,378,668,466.09 4,586,482,016.10
Total of owners’ equity 8,607,122,573.51 8,849,719,956.95
Total of liabilities and owners’ equity 16,303,089,875.32 15,684,869,070.08
6
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
3.Consolidated Income statement
In RMB
Items The first half year of 2022 The first half year of 2021
I. Income from the key business 2,057,420,809.68 2,488,474,669.81
Incl：Business income 2,057,420,809.68 2,488,474,669.81
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 879,520,254.68 1,114,434,707.99
Incl：Business cost 696,143,722.50 889,127,742.43
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 8,932,321.30 11,081,346.10
Sales expense
Administrative expense 85,773,267.04 93,357,035.39
R & D costs 1,368,887.22
Financial expenses 87,302,056.62 120,868,584.07
Including：Interest expense 123,517,238.10 149,343,110.61
Interest income 36,907,508.27 29,751,089.44
Add: Other income 8,178,352.38 9,922,369.03
Investment gain（“-”for loss） 162,384,354.53 172,050,127.56
Incl: investment gains from affiliates 101,624,848.46 122,646,589.32
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
Impairment loss of assets -2,889,394.16
Assets disposal income 463,363.89
III. Operational profit（“-”for loss） 1,348,926,625.80 1,551,812,064.30
Add ：Non-operational income 5,821,631.65 4,011,220.05
Less: Non-operating expense 2,955,659.39 1,811,321.13
IV. Total profit(“-”for loss) 1,351,792,598.06 1,554,011,963.22
Less：Income tax expenses 290,240,426.63 354,025,065.47
V. Net profit 1,061,552,171.43 1,199,986,897.75
(I) Classification by business continuity
1.Net continuing operating profit 1,061,552,171.43 1,199,986,897.75
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 773,786,851.68 848,860,350.64
2.Minority shareholders’ equity 287,765,319.75 351,126,547.11
VI. Net after-tax of other comprehensive income -34,872,070.60 -35,057,445.36
Net of profit of other comprehensive income attributable to own -34,872,070.60 -35,057,445.36
ers of the parent company.
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -34,035,245.89 -37,052,653.68
period
1.Re-
measurement of defined benefit plans of changes in net debt or n
et assets
7
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
2.Other comprehensive income under the equity method investe
e can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-34,035,245.89 -37,052,653.68
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into profit -836,824.71 1,995,208.32
or loss.
1.Other comprehensive income under the equity method investe -836,824.71 1,995,208.32
e can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
Net of profit of other comprehensive income attributable to Min
ority shareholders’ equity
VII. Total comprehensive income 1,026,680,100.83 1,164,929,452.39
Total comprehensive income attributable to the owner of the
738,914,781.08 813,802,905.28
parent company
Total comprehensive income attributable minority shareholders 287,765,319.75 351,126,547.11
VIII. Earnings per share
（I）Basic earnings per share 0.37 0.41
(II)Diluted earnings per share 0.37 0.41
The current business combination under common control, the net profits of the combined party before achieved
net profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Miao Deshan
General Manager：Wang Chunhua, ,
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
Items The first half year of 2022 The first half year of 2021
I. Income from the key business 642,655,502.74 692,634,698.13
Incl：Business cost 251,072,086.53 367,240,160.93
Business tax and surcharge 3,509,918.91 3,738,582.05
Sales expense
Administrative expense 49,546,552.29 47,922,792.66
R & D expense
Financial expenses 95,640,651.97 127,541,297.15
Including：Interest expenses 115,831,785.91 145,100,046.47
Interest income 20,217,007.24 17,596,981.65
Add：Other income 2,295,878.36 2,125,443.39
Investment gain（“-”for loss） 791,745,612.18 844,032,026.57
Including: investment gains from affiliates 98,424,039.92 119,611,129.91
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
8
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Assets disposal income 463,363.89
II. Operational profit（“-”for loss） 1,037,391,147.47 989,459,941.14
Add ：Non-operational income 562,977.76 655,426.85
Less：Non -operational expenses 22,733.31
III. Total profit(“-”for loss) 1,037,954,125.23 990,092,634.68
Less：Income tax expenses 54,008,183.42 42,194,605.52
IV. Net profit 983,945,941.81 947,898,029.16
1.Net continuing operating profit 983,945,941.81 947,898,029.16
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -34,872,070.60 -35,057,445.36
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -34,035,245.89 -37,052,653.68
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
-34,035,245.89 -37,052,653.68
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into -836,824.71 1,995,208.32
profit or loss
1.Other comprehensive income under the equity method inve -836,824.71 1,995,208.32
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
VI. Total comprehensive income 949,073,871.21 912,840,583.80
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
9
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2022 The first half year of 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,100,682,366.85 2,575,650,836.44
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned
Other cash received from business operation 67,435,536.39 62,165,772.17
Sub-total of cash inflow 2,168,117,903.24 2,637,816,608.61
Cash paid for purchasing of merchandise and services 131,225,559.09 153,110,239.80
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 201,663,653.64 195,340,890.00
Taxes paid 344,543,903.69 448,200,872.16
Other cash paid for business activities 47,133,520.52 25,871,389.40
Sub-total of cash outflow from business activities 724,566,636.94 822,523,391.36
Net cash generated from /used in operating activities 1,443,551,266.30 1,815,293,217.25
II. Cash flow generated by investing
Cash received from investment retrieving 22,500,000.00
Cash received as investment gains 114,163,108.50 51,523,258.20
Net cash retrieved from disposal of fixed assets, intangible assets,
522,436.84 9,900.00
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
28,514,496.27
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 143,200,041.61 74,033,158.20
Cash paid for construction of fixed assets, intangible assets and
168,081,166.80 232,853,557.14
other long-term assets
Cash paid as investment 250,091,000.00
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 418,172,166.80 232,853,557.14
Net cash flow generated by investment -274,972,125.19 -158,820,398.94
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 320,000,000.00 1,166,930,000.00
Other financing –related cash received 38,470,400.00 97,731,650.00
Sub-total of cash inflow from financing activities 358,470,400.00 1,264,661,650.00
Cash to repay debts 65,836,100.00 363,908,100.00
Cash paid as dividend, profit, or interests 367,159,468.70 609,553,626.92
Including: Dividend and profit paid by subsidiaries to minor 218,751,982.19 417,577,776.30
10
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Items The first half year of 2022 The first half year of 2021
shareholders
Other cash paid for financing activities 6,242,513.89 1,227,774,134.86
Sub-total of cash outflow due to financing activities 439,238,082.59 2,201,235,861.78
Net cash flow generated by financing -80,767,682.59 -936,574,211.78
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 1,087,811,458.52 719,898,606.53
Add: balance of cash and cash equivalents at the beginning of term 2,955,183,190.55 2,846,176,803.89
VI ..Balance of cash and cash equivalents at the end of term 4,042,994,649.07 3,566,075,410.42
Legal Representative: Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
11
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2022 The first half year of 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 661,912,004.69 720,086,995.35
Tax returned
Other cash received from business operation 24,521,728.95 44,973,397.60
Sub-total of cash inflow 686,433,733.64 765,060,392.95
Cash paid for purchasing of merchandise and services 13,570,674.87 17,069,701.31
Cash paid to staffs or paid for staffs 60,633,887.05 61,391,499.13
Taxes paid 23,470,841.12 27,826,685.08
Other cash paid for business activities 236,627,095.73 73,534,284.42
Sub-total of cash outflow from business activities 334,302,498.77 179,822,169.94
Net cash generated from /used in operating activities 352,131,234.87 585,238,223.01
II. Cash flow generated by investing
Cash received from investment retrieving 60,623,900.00 37,500,000.00
Cash received as investment gains 693,296,160.51 707,197,026.42
Net cash retrieved from disposal of fixed assets, intangible assets, and
517,888.00 2,600.00
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 754,437,948.51 744,699,626.42
Cash paid for construction of fixed assets, intangible assets and other
43,488,728.78 94,360,520.74
long-term assets
Cash paid as investment 246,000,000.00 1,246,839,292.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 289,488,728.78 1,341,199,812.74
Net cash flow generated by investment 464,949,219.73 -596,500,186.32
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 1,166,930,000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 1,166,930,000.00
Cash to repay debts 32,001,100.00 322,573,100.00
Cash paid as dividend, profit, or interests 136,048,729.34 178,730,958.24
Other cash paid for financing activities 6,214,613.89 5,916,242.86
Sub-total of cash outflow due to financing activities 174,264,443.23 507,220,301.10
Net cash flow generated by financing -174,264,443.23 659,709,698.90
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 642,816,011.37 648,447,735.59
Add: balance of cash and cash equivalents at the beginning of term 1,859,614,927.30 1,780,543,319.09
VI ..Balance of cash and cash equivalents at the end of term 2,502,430,938.67 2,428,991,054.68
Legal Representative: Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
12
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Spec Com Minor
Items Less: Other Total of owners’
ialize mon shareholders’
Share Capital Shar Comprehen Surplus equity
Prefer Sust d risk Retained profit Other Subtotal equity
Capital Othe reserves es in sive reserves
red aina reser provis
r stock Income
stock ble ve ion
debt
I.Balance at the 2,090,806,1 713,460,5 192,177,46 1,225,375,330. 4,760,618,543. 8,982,437,
2,338,551,172.96 11,320,989,158.13
end of last year 26.00 18.49 6.34 56 78 985.17
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
2,090,806,1 713,460,5 192,177,46 1,225,375,330. 4,760,618,543. 8,982,437,
beginning of 2,338,551,172.96 11,320,989,158.13
current year 26.00 18.49 6.34 56 78 985.17
- -
III.Changed in the 19,708,14 -
34,872,070. 433,136,56 -10,136,166.44 -443,272,736.01
current year 1.17 417,972,640.14
60 9.57
（1）Total -
738,914,78
comprehensive 34,872,070. 773,786,851.68 287,765,319.75 1,026,680,100.83
income 1.08
60
（II）Investment
or decreasing of
capital by owners
1．Ordinary Shar
es invested by sha
reholders
2．Holders of oth
er equity instrume
13
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Spec Com Minor
Items Less: Other Total of owners’
ialize mon shareholders’
Share Capital Shar Comprehen Surplus equity
Prefer Sust d risk Retained profit Other Subtotal equity
Capital Othe reserves es in sive reserves
red aina reser provis
r stock Income
stock ble ve ion
debt
nts invested capit
al
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
- -
（III）Profit
1,191,759,491. 1,191,759, -316,751,982.19 -1,508,511,474.01
allotment
82 491.82
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to - -
the owners (or 1,191,759,491. 1,191,759, -316,751,982.19 -1,508,511,474.01
shareholders) 82 491.82
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves
(or to capital
shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
14
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Spec Com Minor
Items Less: Other Total of owners’
ialize mon shareholders’
Share Capital Shar Comprehen Surplus equity
Prefer Sust d risk Retained profit Other Subtotal equity
Capital Othe reserves es in sive reserves
red aina reser provis
r stock Income
stock ble ve ion
debt
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
19,708,14 19,708,141
（VI）Other 18,850,496.00 38,558,637.17
1.17 .17
IV. Balance at the 2,090,806,1 733,168,6 157,305,39 1,225,375,330. 4,342,645,903. 8,549,301,
2,328,415,006.52 10,877,716,422.12
end of this term 26.00 59.66 5.74 56 64 415.60
Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang
15
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Amount in last year
In RMB
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Co
mm Minor
Items Less: Other Total of owners’
Special on shareholders’
Share Prefer Sust Capital Shar Comprehen Surplus equity
ized risk Retained profit Other Subtotal equity
Capital red aina Other reserves es in sive reserves
reserve pro
stock ble stock Income
visi
debt on
I.Balance at the 2,090,806,1 645,969,2 302,895,87 1,167,785,9 3,725,679,319.3 7,933,136,4
2,299,180,085.17 10,232,316,584.28
end of last year 26.00 10.48 7.65 65.63 5 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
2,090,806,1 645,969,2 302,895,87 1,167,785,9 3,725,245,459.9 7,932,702,6
the beginning 2,299,180,085.17 10,231,882,724.86
26.00 10.48 7.65 65.63 3 39.69
of current year
-
III.Changed in 46,064,92 251,443,244
35,057,445 240,435,767.97 -18,562,720.69 232,880,524.17
the current year 2.25 .86
.36
（1）Total -
813,802,905
comprehensive 35,057,445 848,860,350.64 351,126,547.11 1,164,929,452.39
.28
income .36
（II）
Investment or
decreasing of
capital by
owners
1．Ordinary Sh
ares invested by
shareholders
2 ． Holders of
16
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Co
mm Minor
Items Less: Other Total of owners’
Special on shareholders’
Share Prefer Sust Capital Shar Comprehen Surplus equity
ized risk Retained profit Other Subtotal equity
Capital red aina Other reserves es in sive reserves
reserve pro
stock ble stock Income
visi
debt on
other equity ins
truments invest
ed capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
-
（III）Profit
-608,424,582.67 608,424,582 -417,577,776.30 -1,026,002,358.97
allotment
.67
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment -
to the owners
-608,424,582.67 608,424,582 -417,577,776.30 -1,026,002,358.97
(or
shareholders) .67
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
17
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Co
mm Minor
Items Less: Other Total of owners’
Special on shareholders’
Share Prefer Sust Capital Shar Comprehen Surplus equity
ized risk Retained profit Other Subtotal equity
Capital red aina Other reserves es in sive reserves
reserve pro
stock ble stock Income
visi
debt on
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
46,064,92 46,064,922.
（VI）Other 47,888,508.50 93,953,430.75
2.25 25
IV. Balance at
2,090,806,1 692,034,1 267,838,43 1,167,785,9 3,965,681,227.9 8,184,145,8
the end of this 2,280,617,364.48 10,464,763,249.03
term 26.00 32.73 2.29 65.63 0 84.55
18
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang
19
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2022
Other Equity
instrument
Less
Su : Speci
Items Other
Shar alized
Share capital Prefe sta Capital reserves Comprehensive Surplus reserves Retained profit Other Total of owners’ equity
Othe es in reserv
rred ina Income
r stoc e
stock ble k
de
bt
I.Balance at the end of
2,090,806,126.00 934,851,285.51 192,177,466.34 1,045,403,063.00 4,586,482,016.10 8,849,719,956.95
last year
Add: Change of
accounting policy
Correcting of previous
errors
Other
II.Balance at the
2,090,806,126.00 934,851,285.51 192,177,466.34 1,045,403,063.00 4,586,482,016.10 8,849,719,956.95
beginning of current year
III.Changed in the
88,237.17 -34,872,070.60 -207,813,550.01 -242,597,383.44
current year
（I）Total
-34,872,070.60 983,945,941.81 949,073,871.21
comprehensive income
(II) Investment or
decreasing of capital by
owners
1 ． Ordinary Shares inve
sted by shareholders
2 ． Holders of other equi
ty instruments invested c
apital
3.Amount of shares paid
and accounted as
owners’ equity
4．Other
20
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
The first half year of 2022
Other Equity
instrument
Less
Su : Speci
Items Other
Shar alized
Share capital Prefe sta Capital reserves Comprehensive Surplus reserves Retained profit Other Total of owners’ equity
Othe es in reserv
rred ina Income
r stoc e
stock ble k
de
bt
（III）Profit allotment -1,191,759,491.82 -1,191,759,491.82
1.Providing of surplus
reserves
2．Allotment to the
-1,191,759,491.82 -1,191,759,491.82
owners (or shareholders)
3．Other
(IV) Internal transferring
of owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
4.Change amount of
defined benefit plans that
carry forward
Retained earnings
5．Other comprehensive
income carry-over
retained earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other 88,237.17 88,237.17
IV. Balance at the end of
2,090,806,126.00 934,939,522.68 157,305,395.74 1,045,403,063.00 4,378,668,466.09 8,607,122,573.51
this term
21
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang
22
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Amount in last year
In RMB
The first half year of 2021
Other Equity
instrument
Spec
Pref Less:
Items Other ializ
erre Ot Share Total of owners’
Share Capital Capital reserves Comprehensive ed Surplus reserves Retained profit Other
Sustai s in equity
d he Income reser
nable stock
stoc r ve
debt
k
7,988,028,411.8
I.Balance at the end of last year 2,090,806,126.00 938,969,546.79 302,895,877.65 987,813,698.07 3,667,543,163.36
7
Add: Change of accounting policy -433,859.42 -433,859.42
Correcting of previous errors
Other
II.Balance at the beginning of 7,987,594,552.4
2,090,806,126.00 938,969,546.79 302,895,877.65 987,813,698.07 3,667,109,303.94
current year 5
III.Changed in the current year -3,778,219.25 -35,057,445.36 339,473,446.49 300,637,781.88
（I）Total comprehensive income -35,057,445.36 947,898,029.16 912,840,583.80
(II) Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by sh
areholders
2 ． Holders of other equity instrum
ents invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other
（III）Profit allotment -608,424,582.67 -608,424,582.67
1.Providing of surplus reserves
2．Allotment to the owners (or
-608,424,582.67 -608,424,582.67
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)
23
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
The first half year of 2021
Other Equity
instrument
Spec
Pref Less:
Items Other ializ
erre Ot Share Total of owners’
Share Capital Capital reserves Comprehensive ed Surplus reserves Retained profit Other
Sustai s in equity
d he Income reser
nable stock
stoc r ve
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
（VI）Other -3,778,219.25 -3,778,219.25
8,288,232,334.3
IV. Balance at the end of this term 2,090,806,126.00 935,191,327.54 267,838,432.29 987,813,698.07 4,006,582,750.43
3
Legal Representative: Miao Deshan General Manager: Wang Chunhua Person in charge of accounting：Lu Ming Accounting Dept Leader: Zhou Fang
24
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
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.
25
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722
shares held by directors, supervisors and senior executives are temporarily frozen) were listed on February 5, 2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized
capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of
2000, i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date
was May 22, 2001.
11．On March 8, 2004,As approved by China Securities Regulatory Commission by document Zheng-Jian-Gong-
Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted through at the
shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “The
approval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the share
equity relocation and transformation. On October 9 2006, according to the “Circular about implementing of share
equity relocation and relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’s
A shares was restored from “G-Expressway” “Expressway A”.
Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties
such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by Guangdong
Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares and paid RMB
803.50 million to Guangdong Provincial Expressway Co., Ltd for purchasing the 25% stake of Guangdong
Provincial Fokai Expressway Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; and issued
466,325,020 shares to Guangdong Provincial Highway Construction Co., Ltd for purchasing the 100% stake of
Guangzhou Guangzhu Traffic Investment Management Co., Ltd held by Guangdong Provincial Highway
Construction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095 A-shares to Yadong
Fuxing Yalian Investment Co.,Ltd, Tibet Yinyue Investment Management Co.,Ltd and Guangfa Securities
Co.,Ltd. The issuance of shares have been registered on July 7, 2016, the new shares will be listed on July 8, 2016.
1. 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
2. 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,Jingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou
Guanghui Expressway Co., Ltd.., Guangdong Jiangzhong Expressway Co.Ltd., Zhaoqing Yuezhao Expressway
Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology
26
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Petty Loan Co., Ltd., Guangdong Guangle Expressway Co.,Ltd., Guoyuan Securities Co., Ltd, Hunan Lianzhi
Technology Co., Ltd., SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.and Shenzhen Garage Electric Pile
Technology Co., Ltd.
3. 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
In the current period, the 100% equity of Guangdong Expressway Technology Investment Co., Ltd-a wholly-
owned subsidiary-was transferred to Guangdong Litong Technology Investment Co., Ltd, and the equity delivery
date was March 29, 2022. Therefore, it will no longer be included in the scope of the consolidated financial
statements at the end of the current period.
4. Approval and submission date of financial report
The financial statements have been authorized for issuance by the 32th(Provisional) meeting of the Ninth Board of
Directors of the Group on August 26 ,2022.
(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
In the current period, the 100% equity of Guangdong Expressway Technology Investment Co., Ltd-a wholly-
owned subsidiary-was transferred to Guangdong Litong Technology Investment Co., Ltd, and the equity delivery
date was March 29, 2022. Therefore, it will no longer be included in the scope of the consolidated financial
statements at the end of the current period.
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.
27
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates are indicated as follows:
None
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are recognized and measured in accordance with the regulations in
the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial
position, business result and cash flow of the Company,. In addition, the financial statements of the Company
comply, in all material respects, with the revised disclosing requirements for financial statements and the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—General
Provisions on Financial Reports (2014 Revision) issued by China Securities Regulatory Commission (CSRC) in
2014.
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
28
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
incurred.
Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial
measurement amount of bonds and other debts issued. Fees, commissions and other expenses incurred in issuing
equity securities in business combination shall be offset against the premium income of equity securities, and if
the premium income is insufficient to offset, the retained earnings shall be offset.
If the holding under the same control is combined to form a parent-subsidiary relationship, the parent
company shall prepare consolidated financial statements on the consolidation date, including consolidated balance
sheet, consolidated income statement and consolidated cash flow statement.
For the consolidated balance sheet, the book value of the combined party in the consolidated financial
statements of the ultimate controlling party shall be incorporated into the consolidated financial statements, and
the transactions between the combining party and the combined party on the consolidation date and the previous
period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated
Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash
flow realized by the combining party and the combined party from the beginning of the current consolidation
period to the consolidation date, and involve the cash flow generated by the transactions and internal transactions
between the two parties in the current period, which shall be offset according to the relevant principles of the
consolidated financial statements.
2. If the parties involved in the combination are not ultimately controlled by the same party or parties before
and after the combination, it is a business combination not under the same control.
Business Combinations not under the Same Control
Determine the cost of business combination: the cost of business combination includes the fair value of cash
or non-cash assets paid by the purchaser for business combination, debts issued or assumed, and equity securities
issued on the purchase date.
In the business combination not under the same control, the intermediary expenses such as auditing, legal
services, evaluation and consultation and other related management expenses incurred by the purchaser for the
business combination shall be included in the current profits and losses when they occur; Transaction costs of
equity securities or debt securities issued by the purchaser as combination consideration shall be included in the
initial recognized amount of equity securities or debt securities.
For the long-term equity investment obtained by holding combination not under the same control, the
company takes the combination cost determined on the purchase date (excluding cash dividends and profits that
should be collected from the investee) as the initial investment cost for the long-term equity investment of the
purchaser; All identifiable assets and liabilities obtained by absorption and combination under different control
that meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on
the date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the
purchaser or various identifiable assets and liabilities, the difference between the fair value of the relevant non-
monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of the
assets and recorded in the income statement of the current consolidation period.
In a business combination not under the same control, the difference between the cost of business
combination and the fair value share of identifiable net assets of the purchaser obtained in the combination is
recognized as goodwill; In the case of absorption and combination, the difference is recognized as goodwill in the
individual financial statements of the parent company; In the case of holding combination, the difference is listed
as goodwill in the consolidated financial statements.
The cost of business combination is less than the difference between the fair value share of identifiable net
assets acquired during the combination, which is included in the profits and losses (non-operating income) of the
29
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
current combination period after review by the Company. In the case of absorption and combination, the
difference is included in the individual income statement of the parent company in the current combination period;
In the case of holding combination, the difference is included in the consolidated income statement of the current
combination period.
If the business combination not under the same control realized step by step through multiple exchange
transactions is a package transaction, each transaction will be treated as a transaction to obtain control rights; If it
is not a package transaction, the equity of the purchased party held before the purchase date shall be re-measured
according to the fair value of the equity on the purchase date, and the difference between the fair value and its
book value shall be included in the current investment income; If the equity of the purchased party held before the
purchase date involves other comprehensive income, other comprehensive income related to it shall be converted
into the investment income of the current period on the purchase date, except for other comprehensive income
arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the
invested party.
6. Compilation method of consolidated financial statements
(1) Consolidation scope
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
means that the Company has the power over the investee, is entitled to variable returns by participating in the
related activities of the investee, and has the ability to use the power over the investee to influence its return
amount. Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of
investee(s), structured subjects, etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements of the Company are based on the financial statements of the parent
company and its subsidiaries, and are prepared according to other relevant information. When compiling, the
important internal transactions between the parent company and its subsidiaries, such as investment, transactions,
purchase and sale of inventories and their unrealized profits, are offset and combined item by item, and the
minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the
accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company, the
accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting
periods of the parent company before combination.
(3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period
During the reporting period, when preparing the consolidated balance sheet, the balance at the beginning of
the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same
control. When preparing the consolidated balance sheet, the balance at the beginning of the year of the
consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the
same control. During the reporting period, the subsidiaries are disposed of and the balance at the beginning of the
consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.
During the reporting period, the income, expenses and profits of subsidiaries added by business combination
under the same control from the beginning to the end of the reporting period are included in the consolidated
income statement, and the cash flows from the beginning to the end of the reporting period are included in the
consolidated cash flow statement. For subsidiaries added due to business combination not under the same control,
the income, expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are
included in the consolidated income statement, and their cash flow from the purchase date to the end of the
reporting period is included in the consolidated cash flow statement. During the reporting period, the subsidiary is
disposed of, and the income, expenses and profits from the beginning of the period to the disposal date are
30
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
included in the consolidated income statement, and the cash flow from the beginning of the period to the disposal
date is included in the consolidated cash flow statement.
When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or
other reasons, the remaining equity investment after disposal shall be re-measured according to its fair value on
the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity, minus the difference between the share of the original subsidiary's net assets
calculated continuously from the purchase date and the sum of goodwill calculated according to the original
shareholding ratio, is included in the investment income in the current period when the control right is lost. Other
comprehensive income related to the original subsidiary's equity investment is converted into current investment
income when the control right is lost, except for other comprehensive income generated by the investee's re-
measurement of net liabilities or changes in net assets of the set income plan.
The difference between the newly acquired long-term equity investment due to the purchase of minority
shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio,
and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries
and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to
adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the
capital reserve is insufficient to offset, the retained earnings will be adjusted.
(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights
If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a
package transaction, the transactions shall be treated as transactions that dispose of subsidiaries and lose control
rights; However, the difference between the disposal price and the share of the subsidiary's net assets related to the
disposal investment before the loss of control right is recognized as other comprehensive income in the
consolidated financial statements, which will be transferred to the current profit and loss when the control right is
lost, except for other comprehensive income arising from the re-measurement of the net liabilities or changes in
net assets of the set income plan by the investee. If it is not a package transaction, before the loss of control, the
difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary
from the purchase date will be adjusted to the capital reserve, and if the capital reserve is insufficient to offset, the
retained earnings will be adjusted; In case of loss of control right, the accounting treatment shall be carried out
according to the above accounting policy when the control right over the original subsidiary is lost.
7.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase), with strong
liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of
change.
8.Foreign Currency Transaction
(1) Foreign currency business
Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency
according to the spot rate on the transaction date.
On the balance sheet date, foreign currency monetary items and foreign currency non-monetary items shall
be treated according to the following provisions: foreign currency monetary items shall be converted at the spot
rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the
balance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are
31
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
included in the current profits and losses; Foreign currency non-monetary items measured at historical cost are
still converted at the spot rate on the transaction date, without changing their bookkeeping base currency amount;
Foreign currency non-monetary items measured at fair value shall be converted at the spot rate on the fair value
determination date, and the difference between the converted bookkeeping base currency amount and the original
bookkeeping base currency amount shall be treated as changes in fair value (including exchange rate changes) and
included in the current profits and losses; During the capitalization period, the exchange difference between the
principal and interest of foreign currency special loans is capitalized and included in the cost of assets that meet
the capitalization conditions.
(2) Translation of foreign currency financial statements
When converting foreign currency financial statements, the Company shall comply with the following
regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date,
and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of
occurrence; The income and expense items in the income statement shall be converted at the spot rate on the
transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot
rate on the transaction date). The translation difference of foreign currency financial statements generated
according to the above translation is recognized as other comprehensive income. The conversion of comparative
financial statements shall be handled according to the above provisions.
9.Financial instruments
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.
32
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
In addition, the Company designated some non-trading equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company includes the relevant
dividend income of such financial assets in current profits and losses, and the changes in fair value in other
comprehensive gains. When the financial asset ceases to be recognized, the accumulated gains or losses
previously included in other comprehensive gains shall be transferred into retained income from other
comprehensive income, and not be included in current profit and loss.
③Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured
at fair value and their's changes in financial assets other than financial assets of comprehensive income and
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition, the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets, the Company adopts fair value for
subsequent measurement, and includes changes in fair value into current profits and losses.
（2）Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.
① Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting, changes in fair value are included in current
profits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset, financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,
measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
33
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Financial assets satisfying one of the following conditions shall be terminated and recognized: ①The
contractual right to collect the cash flow of the financial asset is terminated; ②The financial asset has been
transferred, and almost all the risks and rewards in the ownership of the financial asset have been transferred to
the transferee; ③The financial asset has been transferred, although the enterprise neither transfers nor retains
almost all the risks and rewards in the ownership of the financial asset, but it abandoned control of the financial
assets.
In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets
ownership nor waive to control these assets, relevant financial assets shall be recognized in accordance with the
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized
correspondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to the
risk level that the enterprise faces resulting from the change of the value of the financial asset.
If the overall transfer of the financial assets satisfies the derecognition criteria, the difference between the
book value of the transferred financial assets and the sum of the consideration received from transfer and
cumulative change in fair value previously recognized in other comprehensive income is accounted into the
current profit or loss.
In case that the partial transfer of financial assets meets de-recognition conditions, the book value of
financial assets transferred shall be allocated as per respective fair value between de-recognized or not de-
recognized parts, and the difference between the sum of the consideration received due to transfer with the
accumulated amount of fair value changes that is previously included in other comprehensive income and shall be
allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or
loss.
The Company shall determine whether almost all the risks and rewards of the ownership of the financial
assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee, the
confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the
financial asset have been retained, the confirmation of the financial asset shall not be terminated; if neither the
transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.
In case of remuneration, it shall continue to determine whether the enterprise has retained control over the assets
and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities, and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities, it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof), it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets
and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
34
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is
presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date. The fair value of financial instruments existing in an active
market is determined by the Company according to its quoted price in this market. westbank The quoted prices in
the active market refer to the prices, which are easily available from the stock exchanges, brokers, industry
associations, pricing service institutions and etc. at a fixed term, and which represent the prices at which actually
occurred market transactions are made under fair conditions.¨In can a financial instrument does not exist in
active markets, its fair value shall be determined by the Company with assessment techniques. The value appraisal
techniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latest
market transaction upon their own free will, the current fair value obtained by referring to other financial
instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc. In
valuation, the Company adopts valuation techniques that are applicable in the current situation and supported by
sufficient data and other information to select input values consistent with the characteristics of assets or liabilities
considered by market participants in the transactions of related assets or liabilities, and give priority to the use of
relevant observable input values as far as possible. Unallowable values are used if the relevant observable input
values are not available or are not practicable.
（7）Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. The consideration received from issuing equity instruments, net of transaction costs,
are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to
holders of equity instruments are deducted from shareholders’ equity.
The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the
Company's equity instruments during the period of their existence shall be treated as profit distribution.
10. Impairment of financial instruments
The Company requires to confirm that the financial assets lost by impairment are financial assets measured
by amortized cost, investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains, mainly including notes receivable, accounts receivable,
other receivables, creditor's rights investment, other creditor's rights investment and long-term receivables and etc.
In addition, provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss, the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).
Credit loss refers to the difference between the cash flow of all contracts discounted according to the
original real interest rate and the expected cash flow of all contracts receivable according to the contract, that is,
the present value of all cash shortages. Among them, the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.
The general method of measuring anticipated credit loss is whether the credit risk of the Company's
financial assets (including other applicable items such as contract assets, similarly hereinafter) has increased
35
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly
since the initial recognition, the Company shall measure the loss preparation according to the amount equivalent
to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial
recognition, the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information,
including forward-looking information, when evaluating expected credit losses.
Assuming that their credit risk has not increased significantly since the initial recognition, the Company may
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial
instruments with low credit risk on the balance sheet date.
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition, the credit risk of the
financial asset is significantly increased. Except for special circumstances, the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk, such as
the related party's receivables, the receivables in dispute with the other party or involving litigation and arbitration,
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment, etc.
In addition to the financial assets that assess credit risk individually, the Company shall divide financial
assets into different groups based on common risk characteristics, and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration, the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision, the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision, the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
①Receivable Account and Contract assets
In regard to receivables without significant financing components, the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.
In regard to accounts receivable with significant financing components, the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.
In addition to the accounts receivable that assesses the credit risk individually, receivables are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit risk.
Portfolio 2 ： Quality Guarantee This portfolio is the contract quality guarantee fund and other funds
portfolio
For the above portfolio 1, the measurement method of bad debts reserve is the aging analysis method,
specifically as follows：
Aging Proportion （%）
Within 1 year（Including 1 year） 0
1-2 years 10
2-3 years 30
3-4 years 50
36
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
4-5 years 90
Over 5 years 100
For the guarantee fund portfolio of portfolio 2, no provision for bad debts shall be made unless there is
objective evidence that the money cannot be recovered according to the original terms of accounts receivable and
contract assets.
②Other receivable
The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration, based on whether the credit risk of other receivables has increased significantly
since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually,
they are divided into different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1 This portfolio is a collection of various deposits, advances, pledges and other
receivables in daily activities.
Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business
activities.
Protfolio 3 Other receivables other than the above portfolio.
Combination of deposit, quality assurance fund and deposit and reserve fund combination except for
objective evidence that the Group will not be able to recover the amount according to the original terms of
receivables, will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for
other combinations is aging analysis, and the accrual proportion is the same as accounts receivable.
③ Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration, based on whether the credit risk has increased significantly since the initial recognition. The
Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
11.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.
12.Contract assets and Contract liabilities
In the contract between the Company and customers, the Company has the right to charge the contract price
for the goods and related services that have been transferred to customers, and meanwhile undertake the
performance obligation of transferring the goods or services to customers. When the customer actually pays the
37
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
contract consideration or the enterprise has transferred the goods or services to the customer before the
consideration becomes due and payable, the right to receive the consideration due to the transferred goods or
services shall be listed as contract assets, and recognized as accounts receivable or long-term receivables when the
unconditional right of collection is obtained. `
13. 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
38
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
long-term equity investment.
(2) Subsequent measurement
Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.
① Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.
If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee, the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment, the difference shall be included in the
current profits and losses, and the cost of long-term equity investment shall be adjusted at the same time.
After obtaining the long-term equity investment, the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit, and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee, the book value of long-
term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss, other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee, the net profit of the investee is recognized after adjustment based on the fair value of the
identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company, the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company, and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee, unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future, the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
amount.
When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee, the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed, and the part attributable to the Company shall be offset, and
the investment income shall be recognized on this basis. Unrealized internal transaction losses between the
Company and the investee are asset impairment losses, which shall be fully recognized.
Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital
institutions, mutual funds, trust companies or similar entities including investment-linked insurance funds.
Regardless of whether the above entities have a significant impact on this part of investment, the Company
chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments, and the rest is accounted for by equity method.
② When the Company disposes of long-term equity investment, the difference between its book value and
the actual purchase price shall be included in the current profits and losses. For long-term equity investment
accounted by equity method, when disposing of the investment, it adopts the same basis as the investee's direct
39
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
disposal of related assets or liabilities, and accounts for the part originally included in other comprehensive
income according to the corresponding proportion.
(3) Basis to determine joint control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement, and
the relevant activities of such arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. Significant influence means that the investor has the right to participate in the
decision-making on the financial and operating policies of the investee, but cannot control or jointly control the
formulation of these policies with other parties. When determining whether the investee can be controlled or exert
significant influence, the potential voting rights factors such as current convertible bonds and current executable
warrants of the investee held by the Company and other parties shall be considered at the same time.
14.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 value Annual depreciation
(years) 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.
15.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.
（2）Depreciation method
Type Depreciation Expected useful Residual Annual depreciation
40
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
method life(Year) rate（%） rate(%)
Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to Sanbao
Working flow basis 40 years 0%
Section
Fokai Expressway-Sanbao to Shuikou
Working flow basis 47.5 years 0%
Section
Jingzhu Expressway Guangzhu Section Working flow basis 30 years 0%
Guanghui Expressway Co., Ltd. Working flow basis 23 years 0%
House Building The straight-line
20-30 years 3%-5% 3.17%-4.85%
method
The straight-line
Machine Equipment 3-10 years 3%-5% 9.50%-32.33%
method
The straight-line
Transportation Equipment 5-8 years 3%-5% 11.88%-19.40%
method
The straight-line
Other 5 years 3%-5% 19.00%-19.40%
method
①The Company's fixed assets include roads and bridges, houses and buildings, machinery and equipment,
electronic equipment, transportation tools and other equipment.
②For 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.
16.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.
17.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
41
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased, built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state, the
capitalization of borrowing costs will continue.
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased, built
or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as
expenses in the current period.
(2) Calculation method of capitalization amount of borrowing costs
Where a special loan is borrowed for the purpose of purchasing, building or producing assets that meet the
capitalization conditions, it shall be determined by deducting the interest income obtained by depositing unused
loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the
investment income obtained by temporary investment.
If the general loan is occupied for the purpose of purchasing, building or producing assets that meet the
capitalization conditions, the interest amount of the general loan that should be capitalized shall be calculated and
determined according to the weighted average of the accumulated asset expenditure exceeding the special loan
portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and
determined according to the weighted average interest rate of general borrowings.
18.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.
(2) 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.
(3) 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.
(4) 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
42
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the
development stage of the intangible assets can be measured reliably.
Intangible assets with limited service life of the Company shall be amortized on average within the service
life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.
The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its
cost. For intangible assets for which impairment provision has been made, the accumulated amount of impairment
provision for intangible assets has to be deducted.
The amortization period of intangible assets with limited service life is as follows:
Type Amortization period
Land use right Remaining useful life
Software 3-5 years
Toll road franchises Operating period for residual charges
19. 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.
20. Employee Benefits
Employee compensation refers to various forms of remuneration or compensation given by the Company for
obtaining services provided by employees or dissolving labor relations. Employee compensation includes short-
term salary, post-employment benefits, dismissal benefits and other long-term employee benefits. Benefits
provided by the Company to spouses, children, dependents, survivors of deceased employees and other
beneficiaries of employees are also employee compensation.
（1）Accounting methods of short-term benefits
During the accounting period when employees provide services, the Company recognizes the actual short-term
salary as a liability, which is included in the current profits and losses, except that other accounting standards
require or allow it to be included in the cost of assets.
(2) Accounting methods for post-employment benefits
The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit
plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on
post-employment benefits, or the rules or measures formulated by the Company to provide post-employment
benefits to employees, among which the set deposit plan refers to the post-employment welfare plan in which the
Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;
Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.
(3) Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees, the employee compensation liabilities arising from
the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when
the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations
plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
（4）Other long-term employee benefits
If other long-term employee benefits provided by the Company to employees meet the conditions of the set
deposit plan, they shall be handled according to the accounting policies of the set deposit plan mentioned above;
43
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
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.
21.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.
22. Revenues
Accounting policies adopted for income recognition and measurement
(1) Revenue recognition principle
Since the starting date of the contract, the company shall evaluate the contract, identifies each individual
performance obligation contained in, and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.
The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met, otherwise, it is defined as fulfilled at a certain point in time: ① The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
② The customer can control the goods under manufacturing or services during the company's performance; ③
The goods or services produced during the company's performance have irreplaceable uses, and the company has
the right to accumulate for the completed performances during the entire contract period.
For obligations performed within a certain period of time, the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined, and
44
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
the cost incurred is expected to be compensated, the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time, revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product, the company shall consider the
following points: ① The company has the current right to receive payment for the product, that is, the customer
has the current payment obligation for the product; ② The company has transferred the legal ownership of the
product to the customer, that is, the customer has the legal ownership of the product; ③ The company has
transferred the physical product to the customer, that is, the customer has physically taken possession of the
product; ④ The company has transferred the main risks and rewards on the ownership of the product to the
customer, that is, the customer has obtained the main risks and rewards on the ownership of the product; ⑤ The
customer has accepted the product; ⑥ Other signs that the customer has obtained control of the product.
(2) Principle of revenue measurement
① The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers, while does not include payments received
on behalf of third parties and payments expected to be returned to customers.
② If there is variable consideration in the contract, the company shall determine its best estimate according
to the expected value or the most likely amount, but the transaction price including the variable consideration shall
not exceed the accumulated amount that, if relevant uncertainty is eliminated, will most likely have no significant
reversal.
③ If there is any significant financing component in the contract, the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or services.
The difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract, if the company expects that the customer will
obtain control of the goods or services and pays the price within one year, the significant financing component in
contract shall not be considered.
④ If the contract contains two or more performance obligations, the company shall, on date of the contract,
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.
The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
(3) Specific methods of revenue recognition
① Toll service fee income
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
45
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
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:
④If 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.
⑤If the incurred labor cost is not expected to be compensated, the incurred labor cost shall be included in the
profits and losses of the current period, and the income from the provision of labor service shall not be recognized.
When the contracts or agreements signed between the Company and other enterprises include selling goods
and providing services, if the part for selling goods and the part for providing services can be distinguished and
measured separately, the part for selling goods will be treated as goods sales and the part for providing services
will be treated as service provision. Sales of goods and services can not be distinguished, or although they can be
distinguished, they can not be measured separately. All parts for the selling goods and providing services will be
treated as sales of goods.
The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
23. 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
46
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into
the non-operating receipt and disbursement.
When the recognized government subsidy needs to be returned, if the book value of related assets is offset
during initial recognition, the book value of assets will be adjusted; If there is a relevant deferred revenue balance,
the book balance of the relevant deferred revenue will be offset, and the excess will be included in the current
profits and losses; In other cases, it is directly included in the current profits and losses.
24.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.
25.Lease
(1) Identification of lease
On the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether the
customers in the contract have the right to obtain almost all economic benefits arising from the use of the
identified assets during the use period, and has the right to lead the use of the identified assets during the use
period. If one party to the contract transfers the right to control the use of one or multiple identified assets within a
certain period of time in exchange for consideration, the Company will consider the contract as lease or lease-
included.
（2）The Company as the lessee
On the start date of the lease term, the Company recognizes the right-to-use assets and lease liabilities for all
leases, except for short-term leases and low-value asset leases that are simplified.
The accounting policy of the right-to-use assets is shown in Note V. 26.
Lease liabilities are initially measured according to the unpaid lease payment amount on the start date of the
lease term and the present value calculated according to the implied interest rate of the lease or the incremental
borrowing interest rate. The lease payment amount includes: fixed payment amount and substantial fixed payment
amount. If there is lease incentive, the related amount of lease incentive shall be deducted; variable lease
payments depending on index or ratio; the exercise price of the option, provided that the lessee reasonably
determines that the option will be exercised; payment for exercising the option to terminate the lease, provided
47
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
that the lease period reflects that the lessee will exercise the option to terminate the lease; and the amount
expected to be paid according to the residual guarantee value provided by the lessee. The interest expense of the
lease liability in each period of the lease term shall be calculated subsequently according to the fixed periodic
interest rate, and included in the current profit and loss. Variable lease payments that are not included in the
measurement of lease liabilities are included in the current profits and losses when actually incurred.
Short-term lease
Short-term lease refers to the lease with a lease term of no more than 12 months on the start date of the lease
term, except for the lease with purchase option.
The Company includes the lease payment of short-term lease into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.
Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single leased asset is less than RMB 100,000
when it is brand new.
The Company includes the lease payment of low-value assets into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.
For the lease of low-value assets, the Company chooses to adopt the simplified treatment method mentioned
above according to the specific conditions of each lease.
(3) The Company serves as the lessor
The Company, when as the lessor, recognizes the leases that have substantially transferred all risks and
rewards related to asset ownership as financial leases, and other leases except financial leases as operating leases.
Accounting methods for operating leases
For the rent in the operating lease, the Company recognizes the current profits and losses according to the
straight-line method in each period of the lease term. The initial direct expenses incurred in connection with the
operating lease shall be capitalized, allocated on the same basis as the rental income recognition during the lease
term, and included in the current profits and losses by stages. The variable lease payments obtained related to
operating leases that are not included in the lease receipts are included in the current profits and losses when they
actually occur.
Accounting treatment method of leasing
In financing lease, at the beginning of the lease term, Japanese companies take the net investment in leasing
as the recorded value of the financing lease receivable, and the net investment in leasing is the sum of the
unsecured residual value and the present value of the lease proceeds that have not yet been received on the start
date of the lease term discounted according to the implied interest rate of the lease. As the lessor, the Company
calculates and recognizes the interest income of each period in the lease term according to the fixed periodic
interest rate. The variable lease payments obtained by the Company as the lessor that are not included in the
measurement of net lease investment are recorded into the current profits and losses when they actually occur.
The derecognition and impairment of financial lease receivables shall be treated according to the provisions
of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
and Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.
26.The right to use assets
(1) Conditions for recognition of the right-to-use assets
The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets
during the lease term.
On the start date of the lease term, the right-to-use assets are initially measured at cost. The cost includes:
48
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
The initial measurement amount of lease liabilities; if there is lease incentive for the lease payment issued on or
before the start date of the lease term, the amount related to the lease incentive enjoyed shall be deducted; initial
direct expenses incurred by the Company as the lessee; the estimated costs that the Company as the lessee will
incur for dismantling and removing the leased assets, restoring the leased assets' site or restoring the leased assets
to the state agreed in the lease terms. The Company, as the lessee, recognizes and measures the demolition and
restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. It
makes subsequent adjustments to any remeasurement of lease liabilities.
(2) Depreciation method of right-to-use assets
The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can be
reasonably determined that the ownership of the leased asset is acquired at the expiration of the lease term, it shall
accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine
that the ownership of the leased asset can be acquired at the expiration of the lease term, it shall accrue
depreciation within the shorter of the lease term and the remaining service life of the leased asset.
(3) See "27. Impairment of Assets" in "Section V Important Accounting Policies and Accounting Estimates"
for the impairment test method and the provision method for impairment of right-to-use assets.
27. Impairment of assets
The following signs indicate that the assets may be impaired:
(1) The market price of assets fell sharply in the current period, which was significantly higher than the
expected decline due to the passage of time or normal use.
(2) The economic, technical or legal environment in which the Company operates and the market in which
the assets are located have undergone major changes in the current period or in the near future, which will have
adverse effects on the Company.
(3) The market interest rate or other market return on investment has increased in the current period, which
affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of
assets, resulting in a significant decrease in the recoverable amount of assets.
(4) There is evidence that the assets are outdated or their entities have been damaged.
(5) Assets have been or will be idle, terminated or planned to be disposed of in advance.
(6) The evidence reported by the company shows that the economic performance of assets has been or will
be lower than expected, such as the net cash flow created by assets or the realized operating profit (or loss) is far
lower than the expected amount.
(7) Other indications that assets may have been impaired.
On the balance sheet date, the Company judges various assets that are applicable to the Accounting
Standards for Business Enterprises No.8-Impairment of Assets, such as long-term equity investment, fixed assets,
engineering materials, construction in progress, intangible assets (except those with uncertain service life), and
conducts impairment test when there are signs of impairment-estimating their recoverable amount. The
recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset
is lower than its book value, the book value of the asset shall be written down to the recoverable amount, and the
written-down amount shall be recognized as the asset impairment loss, which shall be included in the current
profits and losses, and the corresponding asset impairment reserve shall be accrued at the same time.
If there are signs that an asset may be impaired, the Company usually estimates its recoverable amount on the
basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset, the recoverable
amount of the asset group is determined based on the asset group to which the asset belongs.
49
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
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.
28. Fair value measurement
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date.
The Company measures related assets or liabilities at fair value, assuming that the orderly transaction of
selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no
major market, the Company assumes that the transaction will be conducted in the most favorable market of related
assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can
enter on the measurement day. The Company adopts the assumptions used by market participants to maximize
their economic benefits when pricing the assets or liabilities.
When measuring non-financial assets at fair value, the ability of market participants to use the assets for the
best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best
purpose to generate economic benefits shall be considered.
The Company adopts the valuation technology which is applicable in the current situation and supported by
sufficient available data and other information, and gives priority to the relevant observable input values, and only
uses the unobservable input values when the observable input values are unavailable or impractical.
For assets and liabilities measured or disclosed at fair value in financial statements, it shall determine the fair
value level according to the lowest level input value which is of great significance to fair value measurement as a
whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained
on the measurement date in an active market; The second-level input value is directly or indirectly observable
input values of related assets or liabilities except the first-level input value; The third level input value is the
unobservable input value of related assets or liabilities.
On each balance sheet date, the Company reassesses the assets and liabilities recognized in the financial
statements that are continuously measured at fair value to determine whether there is a conversion between the
fair value measurement levels.
29.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable√ Not applicable
（2）Significant estimates changes
□Applicable√ Not applicable
50
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Taxable income 3%,5%,6%,9%,13%
City maintenance and construction tax The actual payment of turnover tax 5%,7%
Enterprise income tax Taxable income 25%
Education Fee Surcharge The actual payment of turnover tax 3%
Local education surcharge The actual payment of turnover tax 2%
2.Preferential tax
None
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 48,820.81 38,214.02
Bank deposit 3,996,364,772.14 2,955,850,944.81
Including：Money deposited with a
2,658,370,523.01 1,521,003,542.69
finance Company
Other 47,802,256.12 515,231.72
Total 4,044,215,849.07 2,956,404,390.55
Other note
As of June 30,2022,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.
51
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book value Book Balance Bad debt provision
Category Book value
Amount Proporti Amount Proporti Amount Proporti Amount Proport
on(%) on(%) on(%) ion(%)
Accrual of bad debt 25.62
6,259,752.00 4.88% 3,143,664.00 50.22% 3,116,088.00 12,268,880.60 7.44% 3,143,664.00 9,125,216.60
provision by single %
Including：
Other receivables for bad
debt provision according to
122,114,434.84 95.12% 122,114,434.84 152,527,300.17 92.56% 2,599,116.90 1.70% 149,928,183.27
the combination of credit
risk characteristics
Including：
Total 128,374,186.84 3,143,664.00 125,230,522.84 164,796,180.77 5,742,780.90 159,053,399.87
52
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(1)Accrual of bad debt provision by single：
In RMB
Balance in year-end
Name Bad debt Withdrawal
Book balance Reason
provision proportion
There is a dispute, in the
Guangdong Taiheng Expressway
6,259,752.00 3,143,664.00 50.22 second instance of
Development Co., Ltd.
litigation
Total 6,259,752.00 3,143,664.00 /
Accounts receivables with bad debt provision are recognised by portfolio by age
In RMB
Balance in year-end
Aging Expected credit loss rate
Account receivable Bad debt provision
(%
Within 1 year 122,114,434.84
Total 122,114,434.84
Where the current bad debts back or recover significant amounts:None
Disclosure by aging
In RMB
Aging Balance in year-end
Within 1 year 123,153,130.84
1-2 years 2,077,392.00
2-3 years 2,077,392.00
3-4 years 1,066,272.00
Subtotal 128,374,186.84
Bad debt provision 3,143,664.00
Total 125,230,522.84
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The provision for bad debts in the current period is RMB 0.60; and the amount of bad debt reserve recovered
or reversed in the current period is RMB0.
（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 Aging Proportion(%) Bad debt
provision
Guangdong Union Electronic 74,737,143.16 Within 1 year 58.22%
53
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Services Co., Ltd.
Guangdong Humen Bridge Co., Ltd. 20,346,943.38 Within 1 year 15.85%
Guangdong Lulutong Traffic Development Within 1 year
19,458,333.31 15.16%
Co., Ltd.
1,038,696.00 Within 1 year 0.81%
Guangdong Taiheng Expressway 2,077,392.00 1-2 years 1.62%
Development Co., Ltd. 2,077,392.00 2-3 years 1.62% 2,077,392.00
1,066,272.00 3-4 years 0.83% 1,066,272.00
Guangdong Jingzhu Expressway Guangzhu Within 1 year
5,484,999.99 4.27%
North Section Co., Ltd.
Total 126,287,171.84 98.38%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
3. Prepayments
（1）Aging analysis
In RMB
Balance in year-end Balance Year-beginning
Aging Amount Proportion（%） Amount Proportion（%）
Within 1 year 5,581,764.07 97.55% 5,087,647.09 97.32%
1-2 years 140,000.00 2.45% 140,000.00 2.68%
Total 5,721,764.07 5,227,647.09
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 Amount Aging Reasons for non- Proportion %
the Company settlement
Within 1 year No settlement
Guangdong Lulutong Co.,
Related party 1,775,852.40 conditions have 31.04
Ltd.
been reached
China Ping An Property Non- Related Within 1 year No settlement
Insurance Co. Ltd. party
1,695,053.75 conditions have 29.62
Guangdong Branch
been reached
Within 1 year No settlement
Guangzhou Automobile Non- Related
675,288.00 conditions have 11.80
Trading Co., Ltd. party
been reached
Within 1 year No settlement
China Insurance Non- Related
640,454.00 conditions have 11.19
Guangdong Branch party
been reached
Within 1 year No settlement
Guangzhou Peak Grid Non- Related
523,717.92 conditions have 9.15
Power Equipment Co., Ltd. party
been reached
54
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Total 5,310,366.07 92.80
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 1,205,472.90 1,205,472.90
Other receivable 12,642,060.80 12,555,651.33
Total 13,847,533.70 13,761,124.23
（1）Interest receivable：None
（2）Dividend receivable
1) Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks
1,205,472.90 1,205,472.90
investment No.1 Limited partnership enterprise
Total 1,205,472.90 1,205,472.90
2）Significant dividend receivable aged over 1 year
In RMB
Whether with
Reasons for non-
Items Balance in year-end Aging impairment and
recovery
the judgment basis
The partnership
agreement expires and
Guangdong Radio and Television No, it can be
can be recovered after
Networks investment No.1 Limited 1,205,472.90 3-4 years recovered in the
the extension
partnership enterprise future
procedures are
completed
Total 1,205,472.90
3）The bad debt provision
□ Applicable √ Not applicable
55
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
（3） Other accounts receivable
1) Other accounts receivable classified
In RMB
Balance in year-end Balance Year-beginning
Book balance Bad debt provision Book balance Bad debt provision
Category
Proporti Proporti Book value Proporti Proport Book value
Amount Amount Amount Amount
on (%) on (%) on (%) ion (%)
Other receivables for
individual bad debt 30,844,110.43 70.93 30,844,110.43 100.00 0.00 51,535,736.09 80.37 51,535,736.09 100.00 0.00
provision
Other receivables for bad
debt provision according to
12,642,060.80 29.07 12,642,060.80 12,588,109.31 19.63 32,457.98 0.26 12,555,651.33
the combination of credit
risk characteristics
Total 43,486,171.23 30,844,110.43 12,642,060.80 64,123,845.40 51,568,194.07 12,555,651.33
56
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Disclosure by aging
In RMB
Balance in year-end
Aging
Other receivable Bad debt provision Expected credit loss rate(%)
Within 1 year 4,932,468.66
1-2 years 2,761,370.09
2-3 years 3,465,247.71
3-4 years 29,980.70
4-5 years 575,651.76
Over 5 years 31,721,452.31 30,844,110.43 97.23%
Total 43,486,171.23 30,844,110.43
Accrual of bad debt provision by single：
In RMB
Closing book balance
Bad Debt Reserves Bad debt Expected credit loss
Book balance Reason
provision rate(%)
Bad debts have been
Kunlun Securities Co., Ltd（Note 1） 30,844,110.43 30,844,110.43 100.00% fully withdrawn in
bankruptcy
Total 30,844,110.43 30,844,110.43 100.00%
Disclosure by aging
In RMB
Balance in year-end Balance Year-beginning
Book balance Book balance
Aging Bad debt
Bad debt
Amount Proportion（%） Amount Proportion（%） provision
provision
Within 1 year 3,829,032.21 100.00% 2,959,338.22 98.92%
1-2 years
2-3 years
3-4 years
4-5 years
Over 5 years 32,457.98 1.08% 32,457.98
Total 3,829,032.21 2,991,796.20 32,457.98
In the portfolio, other receivables with bad debt provision by other methods:
In RMB
Balance in year-end Balance Year-beginning
Expected
Name Bad debt Expected credit Bad debt
Book balance Book balance credit loss
provision loss rate(%) provision
rate(%)
Deposit money and
quality guarantee 7,493,571.63 8,815,245.54
fund combination
Other 1,319,456.96 781,067.57
Total 8,813,028.59 9,596,313.11
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses Expected credit loss Expected credit losses
Bad Debt Reserves Total
over the next 12 over life (no credit for the entire duration
months impairment) (credit impairment
57
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
occurred)
Balance as at January 1,2022 32,457.98 51,535,736.09 51,568,194.07
Balance as at January 1,2022 in
current
Other change -32,457.98 -20,691,625.66 -20,724,083.64
Balance as at June 30,2022 30,844,110.43 30,844,110.43
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.As of
June 30,2022, The 2,839,664.36 yuan Credit was recovered, and the provision for had deb.
3） Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
The provision for bad debts in the current period is RMB 0.00; and the amount of bad debt reserve recovered or
reversed in the current period is RMB0.00.
4）The actual write-off other accounts receivable: None
5） Other receivables are classified according to the nature
In RMB
Nature Closing balance Balance Year-beginning
Securities trading settlement funds 30,844,110.43 47,528,056.18
Petty cash 5,069,923.89 4,538,885.93
Current account 4,007,679.91
Deposit 2,772,847.74 3,469,880.18
Other 4,799,289.17 4,579,343.20
Subtotal 43,486,171.23 64,123,845.40
Less：Bad debt provision 30,844,110.43 51,568,194.07
Total 12,642,060.80 12,555,651.33
6） Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable(%)
Kunlun Securities Securities trading s
30,844,110.43 Over 5 years 69.02% 30,844,110.43
Co.,Ltd ettlement funds
Guangdong Litong 22,980.00 1-2 years 3.70%
Real Estates Vehicle parking
Investment Co., deposit 1,630,467.36 2-3 years
Ltd.
China Railway
No.18 Bureau Surrogate payment 1,099,991.00 Within 1 year 2.46%
Group Co., Ltd.
China Railway
Surrogate payment 559,388.80 Within 1 year 1.25%
Tunnel Group
Guangdong Current account 463,491.88 Over 5 years 1.04%
58
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Provincial
Freeway Co.,Ltd.
Total 34,620,429.47 77.47% 30,844,110.43
7） Accounts receivable involved with government subsidies
None
8） Other account receivable which terminate the recognition owning to the transfer of the financial assets None
9） The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
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 inventory inventory
Book balance Book value Book balance Book value
impairment impairment
Raw materials 257,831.85 257,831.85
Stock goods 382,247.81 382,247.81
Total 640,079.66 640,079.66
(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
（1）Situation
In RMB
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Quality
5,286,462.45 5,286,462.45
guarantee
Total 5,286,462.45 5,286,462.45
Amount and reason of material change of book value of contract assets in the current period::None
The impairment provision of the contract assets in the current period
None
7.Non-current asset due within 1 year
In RMB
59
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Items
Year-end balance Year-beginning balance
Pre-payment of business tax before
402,370.32 51,745.32
replacing business tax with VAT
7 days notice of deposit interest 3,010,904.18 2,731,229.21
Total 3,413,274.50 2,782,974.53
8.Other current assets
I n RMB
Items
Year-end balance Year-beginning balance
Input tax to be certified 62,672.86 21,213.96
VAT retention tax credits 326,647.68
Contract acquisition cost 20,706,348.52
Advance payment of enterprise income
943,590.79
tax
Pay other taxes in advance 7,933.63
Total 22,047,193.48 21,213.96
60
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
9. Long-term equity investment
In RMB
Increase/decrease
Investment profit With
draw Closing
Negative Adjustment of Cash bonus or balance of
Investees Opening balance Additional and loss al of Closing balance
other Changes of profits impairment
investme impai Other
comprehensiv other equity announced to provision
investment recognized under rment
e income issue
nt provi
the equity method sion
I. Joint venture
2. Affiliated Company
Zhaoqing Yuezhao
315,837,951.35 24,596,394.70 48,250,000.00 292,184,346.05
Highway Co., Ltd.
Guangdong
Jiangzhong 318,091,639.29 60,000,000.00 7,786,931.71 31,228.99 385,909,799.99
Expressway Co., Ltd.
Ganzhou Gankang
154,118,397.12 5,447,568.74 159,565,965.86
Expressway Co., Ltd.
Ganzhou Kangda
238,101,017.69 18,635,759.71 256,736,777.40
Expressway Co., Ltd.
Shenzhen Huiyan
320,966,384.17 18,574,112.50 339,540,496.67
Expressway Co., Ltd.
Guoyuan Securities
972,089,465.72 18,673,979.80 -836,824.71 18,626,864.76 971,299,756.05
Co., Ltd.
Guangdong Yuepu
Small Refinancing 216,343,601.27 4,709,292.76 57,008.18 221,109,902.21
Co., Ltd(Note)
Hunnan Lianzhi
90,617,427.28 2,547,901.15 93,165,328.43
Technology Co., .Ltd.
SPIC Yuetong
Qiyuan Chip Power 964,797.35 4,000,000.00 -221,892.64 4,742,904.71
Technology Co., Ltd.
Shenzhen Garage
Electric Pile 95,000,000.00 874,800.03 95,874,800.03
Technology Co., Ltd
61
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
159,000,000.0
Subtotal 2,627,130,681.24 101,624,848.46 -836,824.71 88,237.17 66,876,864.76 2,820,130,077.40
0
159,000,000.0
Total 2,627,130,681.24 101,624,848.46 -836,824.71 88,237.17 66,876,864.76 2,820,130,077.40
0
Other note
62
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
10.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co., Ltd. 766,790,940.56 746,129,411.97
Guangdong Radio and Television Networks
investment No.1 Limited partnership 50,000,000.00 50,000,000.00
enterprise
China Everbright Bank Co., Ltd. 708,117,381.44 781,046,414.08
Huaxia Securities Co., Ltd.（Notes1）
Huazheng Asset Management Co., Ltd.
（Notes2）
Total 1,524,908,322.00 1,577,175,826.05
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of Reasons for Reasons for
other designation as other
consolidated measured at fair consolidated
Dividend income Cumulative
Items Cumulative gain income value and changes income
recognized loss
transferred to included in other transferred
retained comprehensive to retained
earnings income earnings
Guangle Non-transactional
Expressway Co., 18,442,638.83 purpose for
Ltd. shareholding
Guangdong
Radio and
Television
Non-transactional
Networks
8,455,606.40 purpose for
investment No.1
shareholding
Limited
partnership
enterprise
Non-transactional
China Everbright
47,286,243.74 190,556,504.64 purpose for
Bank Co., Ltd.
shareholding
Huaxia Non-transactional
Securities Co., 5,400,000.00 purpose for
Ltd. shareholding
Huazheng Asset Non-transactional
Management 1,620,000.00 purpose for
Co., Ltd. shareholding
Total 47,286,243.74 217,454,749.87 7,020,000.00
Note 1: The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidation procedure in
December 2005. The Company made full provision for impairment in respect of this long-term equity investment of
RMB 5.4 million.
Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co., Ltd.
As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was 279.132 million
yuan and the appraised value was - 2299.5486 million yuan ,On October 14, 2005, Jianyin CITIC Asset Management
Co., Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset
Management Co., Ltd. was willing to pay the price of not more than 42 million yuan to acquire 100% equity of
Huazheng Asset Management Co., Ltd. and solicited the Company's opinions. The Company replied on December 5,
2005, abandoning the preemptive right under the same conditions. The Company made provision of 1.62 million yuan
for impairment in respect of this long-term equity investment of 1.62 million yuan.
63
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
11.Other non-current financial assets
In RMB
Items Closing balance Opening balance
Classified as financial assets measured at
fair value and whose changes are 91,000,000.00
included in the current profit and loss
Total 91,000,000.00
Other note：
12. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Items Houses and buildings Land use right Total
I. Original value
1.Opening balance 12,664,698.25 2,971,831.10 15,636,529.35
2.Increased amount of the period
（1）Outsourcing
(2)Inventory, Fixed assets and Construction project into
(3) )Increased of Enterprise consolidation
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 12,664,698.25 2,971,831.10 15,636,529.35
II.Accumulated depreciation accumulated amortization
1.Opening balance 10,842,190.02 1,905,075.92 12,747,265.94
2.Increased amount of the period 73,774.56 36,784.68 110,559.24
(1)Withdrawal or amortization 73,774.56 36,784.68 110,559.24
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 10,915,964.58 1,941,860.60 12,857,825.18
III. Impairment provision
1.Opening balance
64
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 1,748,733.67 1,029,970.50 2,778,704.17
2.Opening book 1,822,508.23 1,066,755.18 2,889,263.41
(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 facilities, Not
Houses and Building 1,071,423.06
accreditation
Total 1,071,423.06
Other note
13. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 10,148,415,374.03 10,639,272,192.02
liquidation of fixed assets 30,726.42
Total 10,148,446,100.45 10,639,272,192.02
65
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(1) List of fixed assets
In RMB
Jingzhu Expressway Electricity
Guangfo Fokai Guanghui House and Machinery Transportation
Items Guangzhu section equipment and Total
Expressway buildings equipment equipment
Expressway Expressway
other
I. Original price
10,892,817,927.3
1.Opening balance 1,460,270,190.66 6,477,849,977.48 5,135,987,691.45 669,836,729.92 1,782,537,704.16 62,110,614.95 133,644,602.58 26,615,055,438.50
0
2.Increased
amount of the 483,543.00 383,593.00 1,556,245.00 507,923.49 1,608,988.10 4,540,292.59
period
（1）Purchase 991,499.00 507,923.49 1,608,988.10 3,108,410.59
（2）Transfer of
project under 383,593.00 590,000.00 973,593.00
construction
(3)Increased of
Enterprise
consolidation
（4）Other 483,543.00 -25,254.00 458,289.00
3.Decreased
amount of the 147,662.97 19,524,138.58 22,418,321.27 1,685,667.76 2,704,496.12 46,480,286.70
period
（1）Disposal or
147,662.97 249,936.00 869,052.96 1,266,651.93
scrap
（2）Disposition
19,274,202.58 22,418,321.27 1,685,667.76 1,835,443.16 45,213,634.77
subsidiary
10,892,670,264.3
4.Closing balance 1,460,270,190.66 6,477,849,977.48 5,136,471,234.45 650,696,184.34 1,761,675,627.89 60,932,870.68 132,549,094.56 26,573,115,444.39
3
II. Accumulated
depreciation
1.Opening balance 1,460,270,190.66 5,486,082,815.59 3,950,515,659.85 3,164,580,817.91 461,466,902.63 1,313,881,686.26 49,780,181.86 85,083,678.62 15,971,661,933.38
2.Increased amount
172,016,724.19 154,616,928.05 75,065,187.78 14,621,404.46 56,968,816.16 1,031,062.02 5,676,372.23 479,996,494.89
of the period
（1）Withdrawal 172,016,724.19 154,616,928.05 75,065,187.78 14,621,404.46 56,968,816.16 1,031,062.02 5,676,372.23 479,996,494.89
66
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
（2）Other
3.Decreased
amount of the 98,638.86 10,020,897.41 17,513,652.87 1,601,384.37 1,845,097.50 31,079,671.01
period
(1)Disposal or scrap 98,638.86 9,220.96 825,724.31 933,584.13
（2）Disposition
10,011,676.45 17,513,652.87 1,601,384.37 1,019,373.19 30,146,086.88
subsidiary
4.Closing balance 1,460,270,190.66 5,658,000,900.92 4,105,132,587.90 3,239,646,005.69 466,067,409.68 1,353,336,849.55 49,209,859.51 88,914,953.35 16,420,578,757.26
III. Impairment
provision
1.Opening balance 2,889,394.16 1,231,918.94 4,121,313.10
2.Increased amount
of the period
（ 1 ）
Withdrawal
（2）Other
3.Decreased
amount of the
period
(1)Disposal or scrap
（2）Disposition
subsidiary
4.Closing balance 2,889,394.16 1,231,918.94 4,121,313.10
IV. Book value
1.Closing book value 5,234,669,363.41 2,372,717,389.58 1,896,825,228.76 181,739,380.50 407,106,859.40 11,723,011.17 43,634,141.21 10,148,415,374.03
2.Opening book 5,406,735,111.71 2,527,334,317.63 1,971,406,873.54 205,480,433.13 467,424,098.96 12,330,433.09 48,560,923.96 10,639,272,192.02
67
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(2)Temporarily idle fixed assets
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
House and
6,176,339.21 4,523,128.50 1,653,210.71
buildings
Machinery
2,322,167.00 1,090,248.06 1,231,918.94
equipment
(3) Fixed assets leased out from operation lease
None
（4） Details of fixed assets failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
House and buildings 174,825,065.82
facilities，Not accreditation.
Other note
Note
（5）liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Office equipment and other 30,726.42
Total 30,726.42
Other note
None
14. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 475,554,879.75 351,130,455.06
Total 475,554,879.75 351,130,455.06
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Book balance Provision Book value Book balance Provisio Book value
Items for n for
devaluati devaluati
on on
Gualvhu 160,502,763.
173,515,217.94 173,515,217.94 160,502,763.61
Interchange project 61
Huizhou North 105,046,556.
164,750,114.70 164,750,114.70 105,046,556.00
Interchange Project 00
Reconstruction and
42,058,703.1
Expansion of 70,055,555.39 70,055,555.39 42,058,703.12
Sanbao to Shuikou 2
Jiangxi-Shenzhen
high-speed railway 14,470,943.9
14,800,073.98 14,800,073.98 14,470,943.98
cross-section 8
expansion project
Tanwei Bridge Ship
Collision Prevention 1,749,246.00 1,749,246.00 1,749,246.00 1,749,246.00
Project
68
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Intelligent
Transformation
Project for
Monitoring System 1,535,540.00 1,535,540.00 1,535,540.00 1,535,540.00
of Foshan-Kaiping
Expressway (Phase
II)
Guangzhou-Shantou
Railway Crossing 10,573,552.43 10,573,552.43 700,943.43 700,943.43
project
25,065,758.9
Other 38,575,579.31 38,575,579.31 25,065,758.92
2
351,130,455.
Total 475,554,879.75 475,554,879.75 351,130,455.06
06
69
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(2) Changes of significant construction in progress
In RMB
Includin
Capit
g:
alizati Sourc
capitali
on of e
Name of Transferred to Other Proportio Project Capitalization of zation
Budget Opening balance Increase End balance intere of
project fixed assets decrease n% process interest of
st fundin
interest
rate g
this
(%)
period
Reconstruction
and Expansion
3,426,210,000.00 42,058,703.12 27,996,852.27 70,055,555.39 76.95% 83.01 72,779,504.82 Other
of Sanbao to
Shuikou
Gualuhu
Interchange 203,460,000.00 160,502,763.61 13,012,454.33 173,515,217.94 85.28% 85.28 Other
project
Guangzhou-
Shantou
Railway 18,811,100.00 700,943.43 9,872,609.00 10,573,552.43 56.21% 56.21 Other
Crossing
project
Jiangxi-
Shenzhen high-
speed railway
15,730,000.00 14,470,943.98 329,130.00 14,800,073.98 94.09% 94.09 Other
cross-section
expansion
project
Huizhou North
Interchange 239,170,000.00 105,046,556.00 59,703,558.70 164,750,114.70 68.88% 68.88 Other
Project
Tanwei Bridge
Ship Collision
50,000,000.00 1,749,246.00 1,749,246.00 3.50% 3.50 Other
Prevention
Project
Total 3,953,381,100.00 324,529,156.14 110,914,604.30 435,443,760.44 72,779,504.82
70
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(3)Provision for impairment of construction projects in the current period
None
（4）Engineering Materials：None
15.Use right assets
In RMB
House and Machinery Transportation Other
Items Total
buildings equipment equipment
I. Original price
1.Opening balance 21,487,031.29 357,112.19 1,163,391.05 1,007,747.00 24,015,281.53
2.Increased amount of the
period
3.Decreased amount of the
496,501.35 496,501.35
period
（1）Transfer or hold for
sale
（2）Disposal subsidiary 496,501.35 496,501.35
4.Closing balance 21,487,031.29 357,112.19 666,889.70 1,007,747.00 23,518,780.18
II. Accumulated
depreciation
1.Opening balance 9,208,727.65 71,422.44 527,788.99 107,017.44 9,914,956.52
2.Increased amount of the
4,604,363.82 35,711.22 217,233.69 53,508.72 4,910,817.45
period
（1）Withdrawal 4,604,363.82 35,711.22 217,233.69 53,508.72 4,910,817.45
3.Decreased amount of
244,855.42 244,855.42
the period
（1）Disposition
（2）Disposal subsidiary 244,855.42 244,855.42
4.Closing balance 13,813,091.47 107,133.66 500,167.26 160,526.16 14,580,918.55
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
（1）Withdrawal
3.Decreased amount of
the period
（1）Disposition
4.Closing balance
IV. Book value
1.Closing book value 7,673,939.82 249,978.53 166,722.44 847,220.84 8,937,861.63
2.Opening book value 12,278,303.64 285,689.75 635,602.06 900,729.56 14,100,325.01
16. Intangible assets
(1) List of intangible assets
In RMB
71
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Items Land use right Software The Turnpike franchise Total
I. Original price
1.Opening balance 1,311,658.00 42,063,790.16 318,348,741.86 361,724,190.02
2.Increased amount of the period 5,760.00 5,760.00
(1) Purchase 5,760.00 5,760.00
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the period 1,537,371.23 1,537,371.23
（1）Disposal 58,000.00 58,000.00
（2）Government subsidies cut
（3）Disposal subsidiary 1,479,371.23 1,479,371.23
4.Closing balance 1,311,658.00 40,532,178.93 318,348,741.86 360,192,578.79
II.Accumulated amortization
1.Opening balance 1,311,658.00 34,803,392.38 57,104,963.21 93,220,013.59
2.Increased amount of the period 1,346,606.80 10,041,478.18 11,388,084.98
(1) Withdrawal 1,346,606.80 10,041,478.18 11,388,084.98
3.Decreased amount of the period 730,179.75 730,179.75
（1）Disposal 58,000.00 58,000.00
（2）Disposal subsidiary 672,179.75 672,179.75
4.Closing balance 1,311,658.00 35,419,819.43 67,146,441.39 103,877,918.82
III. Impairment provision
1.Opening balance
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 5,112,359.50 251,202,300.47 256,314,659.97
2.Opening book value 7,260,397.78 261,243,778.65 268,504,176.43
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
72
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
⑵Details of Land use right failed to accomplish certification of property
None
17. Long-term amortize expenses
In RMB
Balance in year- Increase in this Amortized Balance in year-
Items begin period expenses Other loss
end
Prepaid business
tax and surcharges
before replacement
2,103,750.00 2,103,750.00
of business tax
with value-added
tax
Total 2,103,750.00 2,103,750.00
18. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
7,264,977.10 1,816,244.28 7,264,977.10 1,816,244.28
provisions
Deductible loss 506,439,537.12 126,609,884.28 671,918,486.05 167,979,621.51
Amortization of
142,847,699.24 35,711,924.81 190,813,984.60 47,703,496.15
intangible assets
Deferred income 25,954,618.49 6,488,654.62 30,978,093.11 7,744,523.33
Total 682,506,831.95 170,626,707.99 900,975,540.86 225,243,885.27
(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 190,556,504.64 47,639,126.16 263,485,537.28 65,871,384.32
instruments
Deductible temporary
differences in the
948,354,397.89 237,088,599.48 995,623,507.00 248,905,876.75
formation of asset
impairment
Difference of
amortization method of 7,527,382.78 1,881,845.70 4,580,106.28 1,145,026.57
franchise of toll road
Total 1,146,438,285.31 286,609,571.34 1,263,689,150.56 315,922,287.64
（3）Deferred income tax assets or liabilities listed as net after offset：None
（4）Details of unrecognized deferred tax assets
In RMB
Items Balance in year-end Balance Year-beginning
Deductible temporary difference 37,864,110.43 93,406,200.73
Deductible loss 16,491,381.27 15,342,382.11
73
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Total 54,355,491.70 108,748,582.84
（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance Year-beginning Remark
2022 1,133,109.04
2023 3,129,535.72 3,129,535.72
2024 3,618,779.07 3,618,779.07
2025 3,571,100.29 3,571,100.29
2026 3,889,857.99 3,889,857.99
2027 2,282,108.20
Total 16,491,381.27 15,342,382.11
Other note
19. 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
devaluatio devaluation
n
Prepaid fixed assets
8,763,006.33 8,763,006.33 24,675,415.36 24,675,415.36
engineering fees
Prepaid business tax 2,317,847.28 2,317,847.28 415,282.44 415,282.44
Fixed deposit interest 13,368,083.33 13,368,083.33
Less：Part due within
402,370.32 402,370.32 51,745.32 51,745.32
1 year
Total 24,046,566.62 24,046,566.62 25,038,952.48 25,038,952.48
20. Short-term Borrowing
（1）Short-term Borrowing
In RMB
Total Balance in year-end Balance Year-beginning
Credit Borrowing 320,000,000.00
Interest accrued on short-term borrowing 266,666.67
Total 320,266,666.67
（2）Overdue short-term borrowings
None
21.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 49,349,432.03 137,346,075.15
1-2 years（including2 years） 22,596,734.53 32,260,718.56
2-3 years（including 3 years） 2,470,428.84 30,239,953.68
Over 3 years 58,651,893.87 64,640,392.05
Total 133,068,489.27 264,487,139.44
（2）Significant payable aging more than 1 year
In RMB
74
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Items Balance in year-end Reason
Foshan Land and resources Bureau. 30,507,598.21 Unsettled
Guang Zhongjiang Expressway project
17,466,700.00 Unsettled
Management Dept
Heshan Land and resources Bureau 9,186,893.60 Unsettled
Poly Changda Engineering Co., Ltd. 5,914,675.30 Unsettled
Foshan Chancheng District, Zhang Cha
4,626,817.32 Unsettled
Sub-district Office
Total 67,702,684.43
22. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 3,744,384.23 1,937,127.54
1-2 years（Including 2 years） 2,777.78
2-3 years（Including 3 years）
Over 3 years 8,720,303.19
Total 3,744,384.23 10,660,208.51
(2) Significant advance from customers aging over one year
None
23.Contract liabilities
In RMB
Items Balance in year-end Balance Year-beginning
Advances on sales 22,000.00
Total 22,000.00
24. 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 19,213,631.91 179,052,323.99 180,498,035.02 17,767,920.88
II.Post-employment benefits -
32,990,072.18 31,061,678.37 1,928,393.81
defined contribution plans
III. Dismissal benefits 319,422.79 319,422.79
Total 19,213,631.91 212,361,818.96 211,879,136.18 19,696,314.69
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the Decrease in the
Year-end balance
balance current period current period
75
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
1.Wages, bonuses, allowances
505,563.47 131,722,644.01 131,763,143.99 465,063.49
and subsidies
2.Employee welfare 10,930,352.42 10,930,352.42
3. Social insurance premiums 13,198,412.76 13,198,412.76
Including ：Medical
8,684,902.55 8,684,902.55
insurance
Work injury insurance 391,109.89 391,109.89
Maternity insurance 858,405.91 858,405.91
Other 3,263,994.41 3,263,994.41
4.Public reserves for housing 18,335,320.08 18,335,320.08
5.Union funds and staff
16,483,121.80 4,123,622.20 5,528,833.25 15,077,910.75
education fee
6.Other 2,224,946.64 741,972.52 741,972.52 2,224,946.64
Total 19,213,631.91 179,052,323.99 180,498,035.02 17,767,920.88
（3）Defined contribution plans listed
In RMB
Balance Year- Increase in this period Payable in this period Balance in year-end
Items
beginning
1. Basic old-age
19,423,171.07 19,423,171.07
insurance premiums
2.Unemployment
545,032.26 545,032.26
insurance
3.Enterprise annuity
13,021,868.85 11,093,475.04 1,928,393.81
payment
Total 32,990,072.18 31,061,678.37 1,928,393.81
25. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 11,690,299.91 15,734,725.35
121,481,902.80 143,478,849.99
Enterprise Income tax
Individual Income tax 382,458.23 3,202,322.06
City Construction tax 758,949.20 1,044,325.22
Education subjoin 367,292.89 492,391.84
Locality Education subjoin 226,426.42 308,823.69
Vehicle and vessel tax
Land use tax 523,762.40
Property tax 724,952.77 110,493.45
Stamp tax 26,991.20 240,581.39
Total 136,183,035.82 164,612,512.99
26.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 1,312,635,476.59 22,941,943.24
Other account payable 141,554,884.49 155,028,540.52
Total 1,454,190,361.08 177,970,483.76
（1）Interest payable ：None
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 1,214,635,476.59 22,941,943.24
76
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Dividends payable- Guangdong Provincial
33,000,000.00
Freeway Co.,Ltd.
Dividends payable-Guangdong Zhujiang
60,000,000.00
Highway and Bridge Investment Co., Ltd
Dividends payable-HZCI 5,000,000.00
Total 1,312,635,476.59 22,941,943.24
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Final dividend payable 22,875,984.77
yuan for more than a year in unpaid dividends to shareholders over the year was mainly due to non-
payment of shareholder dividends did not provide information on interest-
bearing bank, did not share reform of shareholders to receive dividends or provide application to receive divide
nds the bank information is incorrect, resulting in failure to pay a dividend or refund.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Estimated project cost 42,437,693.41 42,394,262.23
Deposit, warranty and security deposit 66,199,711.17 77,685,535.90
Other 32,917,479.91 34,948,742.39
Total 141,554,884.49 155,028,540.52
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Yayao to Xiebian extension 12,499,448.48 The settlement conditions are not met
Poly Changda Highway Engineering Co.,
11,148,264.73 The settlement conditions are not met
Ltd.
Guangdong Guanyue Road & Bridge
7,334,064.80 The settlement conditions are not met
Co., Ltd.
Guangdong Nengda High Grade
3,911,297.10 The settlement conditions are not met
Highway Maintenance Co., Ltd.
Guangdong Xinyue Traffic Investment
3,664,337.93 The settlement conditions are not met
Co., Ltd.
Total 38,557,413.04
27. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 437,976,600.00 465,576,600.00
Long-term payable due within 1 year 944,339.62 944,339.62
Lease liabilities due within 1 year 9,973,785.52 12,474,474.87
Payable interest due within 1 year 20,854,603.21 46,648,953.77
Total 469,749,328.35 525,644,368.26
28.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Tax to be rewritten 1,133,695.05 726,336.48
Total 1,133,695.05 726,336.48
77
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
29. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 548,360,000.00 582,195,000.00
Credit loan 4,424,001,700.00 4,456,002,800.00
Less:Long-term loans due within one
-437,976,600.00 -465,576,600.00
year
Total 4,534,385,100.00 4,572,621,200.00
Other notes，including interest rate range：The interest rate of pledge loan is 3.8% - -3.95%; the interest rate
of credit loan is 3.35% - -4.1%.
30.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1,427,903,757.98 1,427,434,086.58
Total 1,427,903,757.98 1,427,434,086.58
78
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
（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
Pay
The in
Withdraw Overflow
Name of the curre curre
Book value Issue date Period Issue amount Opening balance interest at discount Closing balance
bond nt nt
par amount
issue perio
d
19
Guangdong 2019.3.1-
680,000,000.00 2019.2.27 680,000,000.00 679,025,866.59 -223,447.86 679,249,314.45
Expressway 2024.3.1
MTN001
20
Guangdong 2020.3.17-
750,000,000.00 2020.3.13 750,000,000.00 748,408,219.99 -246,223.54 748,654,443.53
Expressway 2025.3.17
MTN001
Total —— 1,430,000,000.00 1,427,434,086.58 -469,671.40 1,427,903,757.98
79
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
31.Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
Long-term lease liabilities 10,196,090.60 15,247,934.63
Including： Financing costs are not
180,417.29 423,662.82
recognized
Less：Lease liabilities due within 1 year 9,973,785.52 12,474,474.87
Total 222,305.08 2,773,459.76
32. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 2,517,493.12 3,461,832.74
Total 2,517,493.12 3,461,832.74
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2,022,210.11 2,022,210.11
Medium term bill underwriting fee 1,439,622.63 2,383,962.25
Less：Part due within 1 year 944,339.62 944,339.62
Total 2,517,493.12 3,461,832.74
33. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
30,978,093.11 5,023,474.62 25,954,618.49
subsidy
Lease income 38,250,000.00 9,094,873.88 3,466,399.53 43,878,474.35
Total 69,228,093.11 9,094,873.88 8,489,874.15 69,833,092.84
Details of government subsidies：
In RMB
Other Amount of
New Amount
income cost Asset-
subsidy transferre End
Beginning of recorded deducted related or
Items in d to non- Other changes of
term in the in the income-
current operation term
current current related
period al income
period period
Cancellatio
n of
25,95
Expressway 5,023,474 Related to
30,978,093.11 4,618.
Provincial .62 assets
49
Toll Station
Project
34. Stock capital
In RMB
Changed（+，-）
Balance Year-
Issuance of Bonu Subtot Balance in year-end
beginning Other
new share s Capitalizatio al
80
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
shares n of public
reserve
Total of
2,090,806,126.00 2,090,806,126.00
capital shares
35. 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
-1,999,697,196.00 -1,999,697,196.00
under the same control
Other capital reserves 204,749,371.50 19,708,141.17 224,457,512.67
(1) Changes in other equity of the
investee under the equity -3,457,667.20 88,237.17 -3,369,430.03
accounting(Note1,2)
（2）Other（Note3） 208,207,038.70 19,619,904.00 227,826,942.70
Total 713,460,518.49 19,708,141.17 733,168,659.66
- The situation of change in the current capital reserve is as follows:
Note 1: Guangdong Yuepu Small Refinancing Co., Ltd - an associate company-adjusted the statement
numbers. The Company adjusted the book value of long-term equity investment before equity dilution
according to the shareholding ratio, resulting in an increase in capital reserve of RMB 57,008.18 due to changes
in equity diluted equity.
Note 2: Guangdong Jiangzhong Expressway Co., Ltd-an associate company-made provision for special
reserves, and the Company adjusted the book value of long-term equity investment according to the
shareholding ratio, resulting in an increase of capital reserve of RMB 31,228.99.
Note 3. The agreement signed by Guangzhou-Huizhou Company and Zengcheng District Government to
add Zengcheng Road Interchange on Guangzhou-Huizhou Expressway, which stipulates that Guangzhou-
Huizhou Company will build Shaning Interchange and Xincheng Road Interchange, and all the expenses
incurred in the construction of Interchange will be borne by Zengcheng District Government .
The agreement signed by Guangzhou-Huizhou Company and Huizhou Transportation Bureau to add
Changkeng Interchange (tentative name) on Guangzhou-Huizhou Expressway, which stipulates that
Guangzhou-Huizhou Company will build Changkeng Interchange (renamed Huizhou North Interchange), and
all the expenses incurred in the construction of Interchange will be borne by Guangzhou-Huizhou Company.
Huizhou Municipal Transportation Bureau will give Guanghui Company a financial subsidy for this agreed
project. The Huizhou Municipal Transportation Bureau will give Guanghui Company a financial subsidy for the
project under this agreement.
After the above project is completed, it will be managed by Guangzhou-Huizhou Company. A total of RMB
408,249,095.50 was received from Government at the beginning of the period, of which the opening balance of
capital reserve attributable to the parent company-other capital reserve was RMB 208,207,038.70, and RMB
38,470,400.00 was newly received in this period, of which capital reserve attributable to the parent company-
other capital reserve increased by RMB19,619,904.00 in this period.
81
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
36. Other comprehensive income
In RMB
Amount of current period
Less：Prior
Less：Amount period
After-
transferred into included in
tax
profit and loss in other attribut
Year-beginning the current period composite After-tax attribute
Items Amount incurred Less：Income tax e to Year-end balance
balance that recognied income to the parent
before income tax expenses minorit
into other transfer to company
y
comprehensive retained shareho
income in prior income in lder
period the current
period
1.Other comprehensive income will be
195,395,263.20 -52,267,504.05 -18,232,258.16 -34,035,245.89 161,360,017.31
reclassified into income or loss in the future
Changes in fair value of investments in other
195,395,263.20 -52,267,504.05 -18,232,258.16 -34,035,245.89 161,360,017.31
equity instruments
2.Other comprehensive income reclassifiable
-3,217,796.86 -836,824.71 -836,824.71 -4,054,621.57
to profit or loss in subsequent periods
Including：Share of other comprehensive
income of the investee that cannot be
-3,217,796.86 -836,824.71 -836,824.71 -4,054,621.57
transferred to profit or loss accounted for
using the equity method
Total of other comprehensive income 192,177,466.34 -53,104,328.76 -18,232,258.16 -34,872,070.60 157,305,395.74
82
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
37. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1,225,375,330.56 1,225,375,330.56
reserve
Total 1,225,375,330.56 1,225,375,330.56
38. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last period end 4,760,618,543.78 3,725,679,319.35
Adjust the total undistributed profits at the beginning of
546,190.04
the period
After adjustments: Retained profits at the period
4,760,618,543.78 3,726,225,509.39
beginning
Add：Net profit belonging to the owner of the parent
773,786,851.68 1,700,406,981.99
company
Less: Statutory surplus reserve 57,589,364.93
Common stock dividend payable 1,191,759,491.82 608,424,582.67
Retained profit at the end of this term 4,342,645,903.64 4,760,618,543.78
Note: The last issue refers to January-December 2021.
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 .
39.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 2,022,637,008.32 682,014,744.35 2,448,927,494.46 868,560,892.48
Other operation 34,783,801.36 14,128,978.15 39,547,175.35 20,566,849.95
Total 2,057,420,809.68 696,143,722.50 2,488,474,669.81 889,127,742.43
40. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 3,906,433.43 4,707,823.03
Education surcharge 1,870,308.46 2,248,134.09
Property tax 1,026,637.79 1,328,788.22
Land use tax 523,762.40 875,697.88
Vehicle use tax 43,285.07 43,697.47
Stamp tax 132,962.51 196,890.20
83
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Business tax 185,247.66 185,247.66
Locality Education surcharge 1,243,683.98 1,495,067.55
Total 8,932,321.30 11,081,346.10
Other note：
41. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 58,799,341.19 66,423,609.15
Depreciation and Amortization 6,814,076.61 5,724,413.26
Intangible assets amortization 953,099.24 1,081,305.76
Low consumables amortization 259,600.97 324,317.77
Rental fee 6,027,123.06 6,032,852.02
Business fee 282,100.73 372,403.60
Office expenses 4,275,751.24 4,187,689.42
Travel expenses 114,358.72 325,420.94
Consultation expenses 100,000.00 117,000.00
The fee for hiring agency 3,376,068.01 3,076,580.06
Repairs cost 189,544.16 342,887.00
Vehicle fee 1,304,983.31 1,504,032.85
Listing fee 11,320.75 11,320.75
Information cost and maintenance fee 961,765.47 507,982.88
Other 2,304,133.58 3,325,219.93
Total 85,773,267.04 93,357,035.39
Other note
42.R& D expenses
In RMB
Items Amount of this period Amount of last period
Wage 945,204.60
Material cost 412,566.35
Depreciation 5,521.90
Low consumables amortization 885.00
Office expenses 4,318.22
Repairs cost 391.15
Total 1,368,887.22
Other note
43.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 123,517,238.10 149,343,110.61
Deposit interest income（-） -36,907,508.27 -29,751,089.44
Bank commission charge 84,179.23 93,344.30
Other 608,147.56 1,183,218.60
Total 87,302,056.62 120,868,584.07
44.Other gains
In RMB
Items Amount of this Amount of last Asset-related or income-
84
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
period period related
Government Subsidy-Cancel the Special Subsidy for
5,023,474.62 6,783,738.24 Related to assets
Provincial Toll Station Project of Expressway
Government subsidy- Stable job subsidies 1,250,935.46 932,076.28 Relate to income
Government subsidy-Enterprises subsidies 1,074,875.00 1,243,500.00 Relate to income
Government subsidy-- Enterprises with industrial training
339,000.00 Relate to income
subsidies
Maternity allowance 435,454.91 149,069.16 Relate to income
Veterans' VAT reduction and exemption 156,133.38 136,670.84 Relate to income
Withholding and remitting enterprise prepaid income tax
159,544.67 322,529.07 Relate to income
fees
Veterans' VAT reduction and exemption 15,009.81 15,785.44 Relate to income
Withhold and pay the advance of enterprise income tax
62,924.53 Relate to income
handling fee refund
Total 8,178,352.38 9,922,369.03
45. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
101,624,848.46 122,646,589.32
method
Dividends earned during the holding period on
47,286,243.74 49,403,538.24
investments in other equity instrument
The investment income generated by the disposal of
13,564,262.33
the subsidiaries
Other -91,000.00
Total 162,384,354.53 172,050,127.56
46. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on other receivable -1,310,999.95
Total -1,310,999.95
47. 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
48.Assets disposal income
In RMB
Amount of current Amount of previous The amount of non-operating
Items
gains & losses
period period
Non-current assets disposal gains 463,363.89 463,363.89
Including：Income from disposal of
463,363.89 463,363.89
Fixed assets
Total 463,363.89 463,363.89
49. Non-Operation income
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Non-current assets are 237,412.50 237,412.50
85
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
damaged and scrapped for
profit
Including：Fixed assets 237,412.50 237,412.50
Insurance claim income 4,141,948.49 2,494,015.56 4,141,948.49
Road property claim income 1,419,966.31 1,436,421.01 1,419,966.31
Other 22,304.35 80,783.48 22,304.35
Total 5,821,631.65 4,011,220.05 5,821,631.65
50. Non-Operation expense
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Non-current assets are
damaged and scrapped for 252,895.85 135,447.06 252,895.85
profit
Including：Fixed assets 252,895.85 135,447.06 252,895.85
Road rehabilitation
2,624,379.66 1,567,847.87 2,624,379.66
expenditure
Fine 2,254.33 153.62 2,254.33
Other 76,129.55 107,872.58 76,129.55
Total 2,955,659.39 1,811,321.13 2,955,659.39
51. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 246,703,707.49 323,321,325.12
Deferred income tax expense 43,536,719.14 30,703,740.35
Total 290,240,426.63 354,025,065.47
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 1,351,792,598.06
Current income tax expense accounted by tax and relevant
337,948,149.52
regulations
Influence of income tax before adjustment 85,070.05
Influence of non taxable income -51,942,863.64
Impact of non-deductible costs, expenses and losses 4,741,431.37
Effect of deductible losses from using previously unrecognized deferred
-591,360.67
income tax assets
Income tax expense 290,240,426.63
52.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 20,528,520.76 23,613,918.60
Unit current account 46,907,015.63 38,551,853.57
Total 67,435,536.39 62,165,772.17
86
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 14,342,965.21 14,914,357.27
Unit current account 32,790,555.31 10,957,032.13
Total 47,133,520.52 25,871,389.40
(3).Cash receivable related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
38,470,400.00 97,731,650.00
subsidies
Total 38,470,400.00 97,731,650.00
（4）Cash paid related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Issuance fee of medium-term notes 1,001,869.75 776,869.75
Purchase of 21% equity consideration of
1,221,839,292.00
Guanghui
Cash paid for the lease liabilities 5,240,644.14 5,157,973.11
Total 6,242,513.89 1,227,774,134.86
53. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous
period
I. Adjusting net profit to cash flow from operating activities
Net profit 1,061,552,171.43 1,199,986,897.75
Add：Credit loss preparation 2,889,394.16
Depreciation of fixed assets, oil and gas assets and consumable
479,906,745.78 640,158,205.26
biological assets
Depreciation of Use right assets 4,910,817.45 4,917,916.58
Amortization of intangible assets 11,410,277.66 18,687,606.48
Amortization of Long-term deferred expenses 175,312.50
Loss on disposal of fixed assets, intangible assets and other long-term
-463,363.89
deferred assets
Fixed assets scrap loss 15,483.35 135,447.06
Loss on fair value changes
Financial cost 123,517,238.10 149,343,110.61
Loss on investment -162,384,354.53 -172,050,127.56
Decrease of deferred income tax assets 54,617,177.28 43,283,161.23
Increased of deferred income tax liabilities -11,080,458.14 -12,579,420.88
Decrease of inventories -321,592.91
Decease of operating receivables -46,196,406.71 19,900,483.49
87
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Increased of operating Payable -72,254,061.48 -80,544,176.47
Credit impairment loss 1,310,999.95
Net cash flows arising from operating activities 1,443,551,266.30 1,815,293,217.25
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 4,042,994,649.07 3,566,075,410.42
Less: Beginning balance of cash equivalents 2,955,183,190.55 2,846,176,803.89
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 1,087,811,458.52 719,898,606.53
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
4,042,994,649.07 2,955,183,190.55
Cash
48,820.81 38,214.02
Of which: Cash in stock
Bank savings could be used at any time 3,995,143,572.14 2,954,629,744.81
Other monetary capital could be used at any time 47,802,256.12 515,231.72
Balance of cash and cash equivalents at the
4,042,994,649.07 2,955,183,190.55
period end
54. 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 note：
As of June 30, 2022, the Company's subsidiary Jingzhu Expressway Guangzhu Section Co., Ltd borrowed
548,360,000.00 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 480,690,000.00 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).
88
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
VIII. Changes of merge scope
1. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
The difference
between the Amount
Determinatio
disposal price and Percenta transferred from
Book value Fair value Gain or loss n method and
Determina the share of the ge of other
of of from main
tion basis subsidiary's net remainin comprehensive
Equity Equity point of remaining remaining remeasurem assumptions
Subsidiary Equity disposal for the assets at the g equity income related
disposal disposal loss of equity on equity at ent of of fair value
name price point of consolidated at the to equity
ratio method control the date of the date of remaining of remaining
loss of financial statement date of investment in
loss of loss of equity at equity on the
control level loss of atomic company
control control fair value date of loss
corresponding to control to investment
of control
the disposal profit and loss
investment
Complete
d the
Guangdong Sale of
equity
Expressway shares
March transfer,
Technology 50,623,900.00 100.00% under 13,564,262.33 0.00% 0.00 0.00 0.00 0.00
29,2022 the
Investment common
transfer of
Co., Ltd. control
control
right
Other note：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
□ Yes √ No
89
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Shareholding Ratio
Registrat Nature of
Name of Subsidiary Places of (%) Obtaining Method
ion Place Business
Operation direct indirect
Under the same
Guangzh Guangzh Expressway control business
Guangfo Expressway Co., Ltd. 75.00%
ou ou Management
combination
Under the same
Guangzh Guangzh Expressway control business
Guanghui Expressway Co., Ltd. 51.00%
ou ou Management
combination
Under the same
Jingzhu Expressway Guangzhu Zhongsha Guangzh Expressway control business
75.00%
Section Co.,Ltd. n ou Management
combination
Yuegao Capital Guangzh Guangzh Investment
100.00% Investment
Investment(Guangzhou)Co., Ltd. ou 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
(2) Important Non-wholly-owned Subsidiary
In RMB
Shareholdin
Profit or Loss Owned Dividends Distributed Equity Balance of the
g Ratio of
by the Minority to the Minority Minority Shareholders
Name of Subsidiary Minority
Shareholders in the Shareholders in the in the End of the
Shareholder
Current Period Current Period Period
s (%)
Guangfo Expressway Co., Ltd. 25.00% 9,596,500.78 53,112,309.95 87,798,897.85
Guangdong Guanghui
49.00% 229,896,908.16 137,399,965.71 2,027,908,518.81
Expressway Co., Ltd.
Jingzhu Expressway Guangzhu
25.00% 48,271,910.81 126,239,706.53 212,707,589.86
Section Co.,Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion
None
90
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance
Name Current Non- current
Current assets Non- current assets Total assets Total liabilities
Liabilities liabilities
Guangfo Expressway Co., Ltd. 363,399,371.15 16,241,271.51 379,640,642.66 28,445,051.27 28,445,051.27
Guangdong Guanghui Expressway Co., Ltd. 1,574,142,897.11 3,105,468,482.93 4,679,611,380.04 355,809,782.98 185,212,783.16 541,022,566.14
Jingzhu Expressway Guangzhu Section Co.,Ltd. 100,405,966.86 2,092,651,162.69 2,193,057,129.55 746,917,820.51 595,308,949.65 1,342,226,770.16
Year-beginning balance
Name Current Non- current
Current assets Non- current assets Total assets Total liabilities
Liabilities liabilities
Guangfo Expressway Co., Ltd. 539,508,987.55 17,935,998.96 557,444,986.51 32,186,158.45 32,186,158.45
Guangdong Guanghui Expressway Co., Ltd. 1,106,203,367.94 3,200,915,171.31 4,307,118,539.25 199,770,257.66 195,999,137.99 395,769,395.65
Jingzhu Expressway Guangzhu Section Co.,Ltd. 78,321,084.79 2,167,316,422.40 2,245,637,507.19 455,558,150.91 627,377,814.00 1,082,935,964.91
In RMB
Amount of current period Amount of previous period
Total Total Cash flows from
Name Cash flows from
Business income Net profit Comprehensive Business income Net profit Comprehensive operating
operating activities
income income activities
Guangfo Expressway Co., Ltd. 66,566,527.45 38,386,003.12 38,386,003.12 200,857,877.57 223,491,338.35 125,126,708.37 125,126,708.37 156,814,439.07
Guangdong Guanghui
893,298,497.64 469,177,363.59 469,177,363.59 591,588,578.50 1,004,523,049.04 516,820,409.74 516,820,409.74 680,781,673.26
Expressway Co., Ltd.
Jingzhu Expressway Guangzhu
452,938,785.68 193,087,643.23 193,087,643.23 271,398,716.46 560,521,671.83 266,411,477.01 266,411,477.01 409,250,398.13
Section Co.,Ltd.
Other note：
91
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Significant joint venture arrangement or associated enterprise
None
（2）Affect of the transaction on the minority equity and owner's equity attributable to the parent company
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting
treatment of the
Main
Registratio investment of
Name operating Business nature Indirectl
n place Directly joint venture or
place y associated
enterprise
Zhaoqing,
Zhaoqing Yuezhao Highway Zhaoqing, Expressway
Guangdon 25.00% Equity method
Co., Ltd. Management
Guangdong
g
Shenzhen Huiyan Expressway Expressway
Shenzhen Shenzhen 33.33% Equity method
Co., Ltd. Management
Guangdong Jiangzhong Zhongsha Expressway
Zhongshan , 15.00% Equity method
Expressway Co., Ltd. n, Management
Ganzhou kangda Expressway Expressway
Gangzhou Ganzhou 30.00% Equity method
Co., Ltd. Management
Ganzhou Gankang Expressway Expressway
Gangzhou Ganzhou 30.00% Equity method
Co., Ltd. Management
Guangdong Yuepu Small Guangzho Hand all kinds of
Guangzhou 15.48% Equity method
Refinancing Co., Ltd u small loans
Guangyuan Securities Co., Ltd. Hefei Hefei Security business 2.37% Equity method
Research and
Hunan Lianzhi Technology
Changsha Changsha experimental 10.10% Equity method
Co., Ltd.
development
SPIC Yuetong Qiyuan Chip Guangzho
Guangzhou New Energy service 5.00% Equity method
Power Technology Co., Ltd u
Software and
Shenzhen Garage Electric Pile
Shenzhen Shenzhen Information 17.40% Equity method
Technology Co., Ltd
technology
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
None
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Guangdong, Jiangzhong Expressway Co., Ltd., Guangyuan Securities Co., Ltd.，Yuepu Small Refinancing Co.,
Ltd.and Hunan Lianzhi Technology Co., Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.and
Shenzhen Garage Electric Pile Technology Co.,
Ltd. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and o
perating decisions, and therefore deemed to be able to exert significant influence over the investee.
92
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(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
Non-current assets
Total assets 131,830,386,370.82 114,683,858,604.22
Current liabilities
Non-current Liabilities
Total liabilities
Minority Shareholders’ Equity
Shareholders’ equity attributable to
32,225,877,958.60 32,259,179,385.22
shareholders of the parent
Pro rata share of the net assets calculated 764,204,123.51 764,993,833.19
Adjustment items
--Goodwill 207,095,632.54 207,095,632.54
-- Internal transactions did not achieve
profits
--Other
The book value of equity investments in j
971,299,756.05 972,089,465.73
oint ventures
Fair value of equity investment of
associated enterprises with open 643,661,660.04 796,815,881.40
quotation
Buinsess incme 2,474,031,036.38 2,275,384,578.36
Net profit 749,499,017.55 846,756,168.54
Net profit from terminated operations
Other comprehensive income -35,288,230.26 84,942,800.98
Total comprehensive income 714,210,787.29 931,698,969.52
Dividends received from associates durin
18,626,864.76 10,348,258.20
g the year
(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 1,848,830,321.35 1,655,041,215.52
Total amount of the pro rata calculation
of the following--Net profit ms
-Nit profit 82,950,868.66 102,343,851.05
--Total comprehensive income 82,950,868.66 102,343,851.05
Other note
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
93
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
None
X. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk, market risk and liquidity risk. The company’s management
shall manage and monitor these risks and ensure above risks to be controlled within certain scope.
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. 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, 2022, the largest credit risk exposure that may cause financial losses of the Company mainly
94
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
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
loan agreement.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fir value Fir value Fir value
Items
measurement items measurement measurement items at Total
at level 1 items at level 2 level 3
I. Consistent fair value
-- -- -- --
measurement
(I) Trading financial assets 91,000,000.00 91,000,000.00
（2）Equity instrument investment 91,000,000.00 91,000,000.00
（II）Other equity instrument
708,117,381.44 766,790,940.56 1,474,908,322.00
investment
Total assets continuously measured
708,117,381.44 857,790,940.56 1,565,908,322.00
at fair value
II. Non –persistent measure -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of June 30, 2022 of 3.01 yuan, the final calculation of fair value was
708,117,381.44 yuan.
3. Fair value of financial assets and liabilities not measured at fair value, The valuation techniques adopted and
the qualitative and quantitative information of important parameters for continuous and non-continuous level 2
fair value measurement items
Items Fair value as of June 30, 2022 Valuation technology Unobservable input
value
Unlisted equity 857,790,940.56 Hire a third party for evaluation or enjoy the
95
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
investment share of the net book assets of the investee
based on the shareholding ratio
4. Fair value of financial assets and liabilities not measured at fair value
The Company's financial assets and liabilities measured in amortized cost mainly include: accounts
receivable, other receivables, contract assets, short-term loans, accounts payable, other payables, non-current
liabilities due within one year, long-term loans, bonds payable and long-term payables.
There is no significant difference between the book value of financial assets and liabilities not measured at
fair value and the fair value.
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
company of the company of the
Redistricted
Name Registered address Nature
capital Company's Company’s vote
shareholding ratio ratio
Equity
management,
Guangdong traffic
communication Guangzhou infrastructure 26.8 billion yuan 24.56% 50.12%
Group Co., Ltd construction and
railway project
operation
Notes ：
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative:
Deng Xiaohua. Date of establishment: June 23, 2000. As of June 30, 2022,Registered capital: 26.8 billion yuan.
It is a solely state-owned limited company. Business scope ： equity management, organization of asset
reorganization and optimized allocation, raising funds by means including mortgage, transfer of property rights
and joint stock system transformation, project investment, operation and management, traffic infrastructure
construction, highway and railway project operation and relevant industries, technological development,
application, consultation and services, highway and railway passenger and cargo transport, ship industry,
relevant overseas businesses; The value-added communication business.
The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.
Other note：
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see IX(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the IX-3, Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relation with the Company
96
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Shenzhen Huiyan Expressway Co., Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co., Ltd. Associated enterprises of the Company
Ganzhou Kangda Expressway Co., Ltd. Associated enterprises of the Company
Ganzhou Gankang Expressway Co., Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co., Ltd. Associated enterprises of the Company
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 Litong Property Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media 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 Litong Technology Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Development 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 Lulutong Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Provincial Freeway Co.,Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Group Finance Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Read & Bridge Construction Development Co.,
Fully owned subsidiary of the parent company
Ltd.
Guangdong Tongyi Expressway Service Area Co., Ltd Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue 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
Xinyue Co., Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Planning & Design Institute Co.,
Shares of parent company
Ltd.
Guangzhongjiang Expressway Project Management Dept Managed by the parent company
Guangzhou Aitesi Communication equipment Co., Ltd. Associated enterprises controlled by the same parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co.,
Associated enterprises controlled by the same parent company
Ltd.
Guangdong Feida Traffic Engineering Co., Ltd. Associated enterprises controlled by the same parent company
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
Fully owned subsidiary of the parent company
Technology Co. Ltd
Guangdong Xiangfei Highway Engineering Supervision Co.,
Subsidiary of the parent company
Ltd
Guangdong Expressway Technology Co., Ltd. Fully owned subsidiary of the parent company
Hunan Lianzhi Technology Co., Ltd. A wholly owned subsidiary of the Company
97
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Guangdong Zhujiang Road bridge Investment Co., Ltd. It has a significant impact on important subsidiaries
Guangdong Xinyue Traffic Qingyun Expressway Management
Managed by the parent company
Office
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Content of related Amount of current Amount of previous
Related parties
transaction
period period
1.Business cost
Guangdong Union electronic services co., Ltd. Service 12,021,733.95 14,427,549.75
Boly Changda Engineering Co., Ltd. Service 11,772,757.00 4,459,339.00
Mechanical and electrical
Guangdong Feida Traffic Engineering Co., Ltd. daily maintenance 2,003,201.04 2,066,264.07
payment
Guangdong Yueyun Traffic Rescue Co., Ltd. Rescue service fee 494,700.00
Guangdong Humen Bridge Co., Ltd. Service 310,411.02
Guangdong Communication Planning & Design
Project labour service 178,243.00
Institute Co., Ltd.
Maintenance, Project
Guangdong Lulutong Co., Ltd. 52,598.00
funds
Guangdong Tongyi Expressway Service Area Co.,
Service 40,808.70
Ltd
Guangdong Jingzhu Expressway Guangzhu North
Service 8,551.20
Section Co., Ltd.
Guangzhou Aitesi Communication Equipment Co., Maintenance of charging
2,400.00
Ltd. facilities
Guangdong East Thinking Management Technology
Service 30,000.00
Development Co., Ltd.
Subtotal 26,885,403.91 20,983,152.82
2.Financial cost
Guangdong Communication Group Finance Co.,
Deposit interest income -24,475,843.25 -15,349,444.97
Ltd.
Guangdong Communication Group Finance Co., Borrowing Interest
5,112,347.24 3,167,500.00
Ltd. expresses
Guangdong Communication Group Finance Co.,
Commission charge 920.00
Ltd.
Guangdong Jiangzhong Expressway Co., Ltd. Interest 27,405.00
Subtotal -19,362,576.01 -12,154,539.97
3.Administrative expenses
Information cost and
Guangdong Union electronic services co., Ltd. 288,500.00
maintenance fee
Guangdong East Thinking Management Technology
OA Maintenance，Service 10,000.00 60,000.00
Development Co., Ltd.
Subtotal 298,500.00 60,000.00
4.Non-Operating expensess
Damfor damaged repair of
Boly Changda Engineering Co., Ltd. 1,009,397.00
civil facilities
Subtotal 1,009,397.00
5. Construction in process
Guangdong Communication Planning & Design
Purchase assets 5,973,981.00 7,455,615.00
Institute Co., Ltd.
Poly Changda Engineering Co., Ltd. Purchase assets 26,630,344.47 141,402,869.60
Guangdong Xinyue Traffic Investment Co., Ltd. Purchase assets 6,127,813.56 584,557.32
98
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Guangdong Highway Construction Co., Ltd. Purchase assets 9,089,990.48
Guangdong Hualu Traffic Technology Co., Ltd. Purchase assets 907,894.50
Guangdong Xiangfei Highway Engineering
Purchase assets 208,829.00
Supervision Co., Ltd
Subtotal 48,730,024.01 149,651,870.92
6.Fixed assets
Guangdong Expressway Technology Investment
Purchase assets 82,895.00
Co., Ltd.
Guangdong Communication Planning & Design
Purchase assets 483,543.00
Institute Co., Ltd.
Subtotal 566,438.00
7.Other current assets
Guangdong Feida Traffic Engineering Co., Ltd. Contract acquisition cost 182,274.01
Subtotal 182,274.01
Related transactions on sale goods and receiving services
In RMB
Amount of current Amount of previous
Related party Content
period period
1.Business income
Jingzhu Expressway Guangzhu North Commission management
10,603,632.04 9,622,924.52
section Co., Ltd. fee
Guangdong Provincial Freeway Co.,Ltd. Project fund 886,950.00 1,773,900.00
Ganzhou Gankang Expressway Co., Ltd. Salaries of expatriate staff 525,660.83 450,262.64
Zhaoqing Yuezhao Highway Co., Ltd. Salaries of expatriate staff 512,977.97 514,314.09
Guangdong Tongyi Expressway Service
water and electricity 486,716.96 577,014.73
Area Co., Ltd
Guangdong Traffic Development Co., Ltd. electricity 336,290.97
Shenzhen Huiyan Expressway Co., Ltd. Salaries of expatriate staff 260,849.89 254,219.25
Ganzhou Kangda Expressway Co., Ltd. Salaries of expatriate staff 138,547.02 162,691.45
Guangdong Jiangzhong Expressway Co.,
Salaries of expatriate staff 176,119.41 81,447.20
Ltd.
Guangdong Luoyang Expressway Co., Ltd. Test 58,490.57
Bidding documents income,
Poly Changda Engineering Co., Ltd. 1,000.00 103,082.55
water and electricity bills
Guangdong Feida Traffic Engineering Co.,
CPC card sales revenue 56,991.15
Ltd
Guangdong Xinyue Traffic Investment Co.,
Project 52,187.72
Ltd.
Guangdong Expressway Media Co., Ltd. Water and electricity 49,750.19
Guangdong Yueyun Traffic Rescue Co.,
Water and electricity 18,905.54
Ltd.
Subtotal 13,987,235.66 13,717,691.03
(2) Information of related lease
The Company was lessor：
In RMB
The lease income The lease income
Name of lessee Category of lease assets
confirmed in this year confirmed in last year
Guangdong Expressway Media Co., Advertising lease
1,379,412.57 842,169.89
Ltd.
Poly Changda Engineering Co., Ltd. Rental income 555,557.14
Guangdong Litong Technology
Communication Piping 522,034.27 819,439.23
Investment Co., Ltd.
Guangdong Traffic Development Rental income of charging
149,850.34
Co., Ltd. pile
Guangdong Road Nework Digital
Advertising 2,777.78
Media Information Technology Co.,
99
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Ltd.
Total 2,609,632.10 1,661,609.12
100
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
- The company was lessee：
In RMB
Variable lease
Rental charges for Interest expenses on
payments not included Increased use right
short-term and low- Rent paid lease liabilities
in lease liabilities assets
value assets (if any) assumed
measurement (if any)
Category of Amount of Amount Amount of Amount Amount of Amount of Amount Amount Amount Amount
Lessor
leased assets
current of current of current period previous period of of of current of
period previous period previous current previous period previous
period period period period period
Guangdong Litong
Office space
Decelopment Investment Co., 4,604,363.82 4,604,363.83
Ltd
Jingzhu Expressway
Activity
Guangzhu North section Co., 53,508.72 53,508.72
place
Ltd.
Guangdong Litong Property Office space 50,321.3
27,586.00 27,586.00 50,321.37
Development Co., Ltd. 7
50,321.3
Total 27,586.00 4,685,458.54 4,708,193.92
7
101
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
(3 ）Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
2,834,900.00 2,935,600.00
personnel
（4） Other significant related-party transactions
√ Applicable □Not applicable
（1）Deposit business
Related party Relationship Maximum Deposit Beginning The amount of this period
daily deposit interest rate balance
Ending
limit （ Ten range （ Ten Total amount Total amount
balance
thousand thousand for this period is withdrawn
（ Ten
yuan） yuan） （ Ten for this period thousand
thousand （ Ten
yuan）
yuan） thousand
yuan）
Guangdong
Communications Controlled by the
Group Finance Co., same parent company 300,000.00 0.35%-2.85% 152,100.35 113,736.70 265,837.05
Ltd
（2）Loan business
Related party Relationship Beginning The amount of this period
balance
（ Ten Total loan Total Ending
Loan limit thousand amount of the repayment balance
（ Ten
Loant interest yuan） current （ Ten amount of the （ Ten
thousand
rate range thousand current period thousand
yuan）
yuan） （ Ten yuan）
thousand
yuan）
Guangdong
Communications Controlled by the
Group Finance Co., same parent company 400,000.00 3.00%-3.75% 20,000.00 32,000.00 100.00 51,900.00
Ltd
(3)Credit extension or other financial services
Related party Relationship Business type Total amount（10， Actual amount
000） incurred（10，000)
Guangdong Communications Controlled by the same Credit extension
Group Finance Co., Ltd parent company 220,000.00 51,900.00
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.
102
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
（5）Asset transfer and debt restructuring of related parties
Amount of current Amount of previous
Related party Content period period
Guangdong Litong Technology Sell equity investments 50,623,900.00
I\investment Co., Ltd.
Upon deliberation and approval at the 27th meeting of the ninth board of directors of the company, the compan
y transferred 100% equity of its wholly-owned subsidiary, Guandong Expressway Technology Investment Co.,
Ltd., to Guandong Litong Technology Investment 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.
On March 25, 2021, the Sixteenth Meeting of the Ninth Board of Directors of the Company held and
reviewed the Proposal on the Company's Estimated Daily Related Party Transactions in 2021. It is estimated that
the daily related party transactions include the Agreement on the Entrusted Management of the Preliminary Work
of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway signed
by Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section Co., Ltd. and Guangdong Highway Construction Co.,
Ltd., in which the latter is responsible for the main management responsibilities and all the preliminary work
before the approval of the reconstruction and expansion project.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Bad debt Bad debt
Balance of Book Balance of Book
Provision Provision
Guangdong Xinyue Traffic
Contract assets 113,642.50
Investment Co., Ltd.
Guangdong Feida Traffic
Contract assets 48,230.00
Engineering Co.,Ltd.
Guangdong Jiangzhong
Contract assets 8,412.00
Expressway Co., Ltd.
Guangdong Nanyue Traffic
Contract assets Qingyun Expressway 6,900.00
Management Center
Total 177,184.50
Account Guangdong Union electron
74,737,143.16 78,368,502.10
receivable Service Co., Ltd.
Account
Guangdong Humen Bridge Co., 20,346,943.38 2,083,918.33
receivable
103
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Ltd.
Account Jingzhu Expressway Guangzhu
5,484,999.99 7,783,650.00
receivable North Section Co., Ltd.
Account Guangdong Litong Technology
533,136.00 338,298.13
receivable Investment Co., Ltd.
Account Poly Changda Engineering Co.,
503,879.00 265,054.16
receivable Ltd.
Account Guangdong Feida Traffic
5,531,000.00
receivable Engineering Co., Ltd.
Account Guangdong Expressway Media
1,854,769.00
receivable Co., Ltd.
Account Guangdong Provincial Freeway
203,632.00
receivable Co.,Ltd.
Account Guangdong Xinyue Traffic
94,301.60
receivable Investment Co., Ltd.
Account Guangdong Road Construction
54,256.00
receivable Development Co., Ltd.
Account Shenzhen Huiyan Expressway
51,000.00
receivable Co., Ltd.
Guangdong Road Bridge
Account
Construction Development Co., 29,025.15
receivable
Ltd.
Account Guangzhenzhu Expressway Co.,
18,192.00
receivable ltd.
Account Guangdong Boda Expressway
4,530.99
receivable Co., Ltd.
Total 101,606,101.53 96,680,129.46
Advanced Zhaoqing Yuezhao Highway Co.,
216,750.00
payment Ltd.
Advanced
Guangdong Lulutong Co., Ltd. 1,775,852.40
payment
Total 1,775,852.40 216,750.00
Other Account Guangdong Litong Development
1,653,447.36 1,653,447.36
receivable Investment Co., Ltd.
Other Account Guangdong Provincial Freeway
463,491.88 463,491.88
receivable Co.,Ltd.
Other Account Guangdong Traffic Development
380,008.80
receivable Co., Ltd.
Other Account Guangdong Expressway
366,334.32
receivable Technology Investment Co., Ltd.
Other Account Guangdong Expressway Media
295,499.08 649,386.62
receivable Co., Ltd.
Other Account Guangdong Union electron
50,000.00 50,000.00
receivable Service Co., Ltd.
Other Account Guangdong Litong Property
16,268.00 30,004.00
receivable Develpment Co., Ltd.
Other Account Zhaoqing Yuezhao Highway Co.,
350,000.00
receivable Ltd.
Total 3,225,049.44 3,196,329.86
Non-current assets
Guangdong Communication
due within one 3,010,904.18 2,731,229.21
Group Finance Co., ltd.
year
Total 3,010,904.18 2,731,229.21
Other Non-Current Guangdong Communication
13,368,083.33
Assets Group Finance Co., ltd.
Guangdong Communication
Other Non-Current
Planning & Design Institute Co., 2,929,687.00
Assets
Ltd.
Other Non-Current Guangdong Traffic Development 333,398.00 333,398.00
104
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Assets Co., Ltd.
Other Non-Current Guangdong Road Construction
7,089,990.48
Assets Co., Ltd.
Total 16,631,168.33 7,423,388.48
（2）Payables
In RMB
Amount at year beginning
Amount at year end
Name Related party
Guangdong Communication Group
Short-term loan 320,266,666.67
Finance Co., ltd.
Total 320,266,666.67
Guangzhongjiang Expressway Project
Account payable 17,466,700.00 28,000,000.00
Management Dept
Account payable Poly Changda Engineering Co., Ltd. 10,842,016.30 29,736,553.34
Guangdong Expressway Technology
Account payable 6,567,531.19
Investment Co., Ltd.
Guangdong Feida Traffic Engineering
Account payable 2,919,499.00 5,035,975.88
Co., Ltd.
Guangdong Hualu Traffic
Account payable 2,556,180.04 4,960,992.02
Technology Co., Ltd.
Guangdong Union Electron Service
Account payable 2,500,322.97 50,286.78
Co.,Ltd.
Guangdong Xinyue Traffic
Account payable 1,630,179.71 10,405,248.06
Investment Co., Ltd
Guangdong Provincial Freeway
Account payable 1,245,443.50 1,245,443.50
Co.,Ltd.
Account payable Hunan Lianzhi Technology Co., Ltd. 850,700.00 850,700.00
Guangdong Communication Planning
Account payable 585,379.10 1,759,707.90
& Design Institute Co., Ltd.
Guangdong Yueyun Traffic Rescue
Account payable 360,741.00
Co., Ltd.
Guangdong Litong Technology
Account payable 336,789.95 1,291,067.95
Investment Co., Ltd.
Guangdong Changda Road
Account payable 309,101.00 309,101.00
Maintenance Co. Ltd.
Guangdong East Thinking
Account payable Management Technology 90,630.00 2,331,700.01
Development Co., Ltd.
Account payable Guangzhou Xinyue Asphalt Co., Ltd. 46,779.00 2,773,825.00
Guangzhou Aitesi Communication
Account payable 25,194.00 2,547,594.00
Equipment Co., Ltd.
Account payable Guangdong Lulutong Co., Ltd. 13,971.40 2,525,256.06
Account payable Guangdong Humen Bridge Co., Ltd. 2,596,817.45
Account payable Guangdong Yueyun Traffic Co., Ltd. 168,277.20
Total 48,347,158.16 96,588,546.15
Guangdong Union electronic services
Advance received 1,845,607.86
co., Ltd.
Total 1,845,607.86
Guangdong Communication Group
Dividend payable 292,686,723.60
Co., ltd
Guangdong Highway Construction
Dividend payable 265,805,261.40
Co., Ltd.
Guangdong Provincial Freeway
Dividend payable 63,174,369.87
Co.,Ltd.
Guangdong Zhujiang Road Highway
Dividend payable 60,000,000.00
Investment Co., Ltd.
Dividend payable Xinyue Co., Ltd. 7,488,112.93
105
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Guangdong Traffic Development Co.,
Dividend payable 1,214,390.70
Ltd.
Total 690,368,858.50
Other Payable account Poly Changda Engineering Co., Ltd. 20,742,924.48 17,126,203.40
Guangdong Xinyue Traffic
Other Payable account 4,198,077.88 4,272,693.60
Investment Co., Ltd.
Guangdong Expressway Technology
Other Payable account 2,541,116.00
Investment Co., Ltd.
Guangdong Highway Construction
Other Payable account 2,013,409.60 40,459.66
Co., Ltd.
Guangdong Hualu Traffic
Other Payable account 1,959,227.53 2,084,177.53
Technology Co., Ltd.
Guangdong Feida Traffic Engineering
Other Payable account 1,515,652.65 1,628,931.87
Co., Ltd.
Guangdong Changda Road
Other Payable account 1,630,765.00 1,630,765.00
Maintenance Co. Ltd.
Guangdong Xinyue Traffic
Other Payable account 1,380,379.20 1,380,379.20
Investment Co., Ltd.
Guangdong Union Electron Service
Other Payable account 1,134,574.32
Co.,Ltd.
Other Payable account Guangdong Lulutong Co., Ltd. 1,127,575.62 1,127,575.62
Other Payable account Guangzhou Xinyue Asphalt Co., Ltd. 1,054,919.00 1,054,919.00
Guangzhongjiang Expressway Project
Other Payable account 200,000.00 200,000.00
Management Dept
Guangdong Communication Planning
Other Payable account 120,422.00 120,422.00
& Design Institute Co., Ltd.
Guangdong East Thinking
Other Payable account Management Technology 171,899.29 191,674.29
Development Co., Ltd.
Guangdong Tongyi Expressway
Other Payable account 120,000.00 120,000.00
Service Area Co., Ltd.
Guangdong Litong Technology
Other Payable account 99,217.00 135,772.00
Investment Co., Ltd.
Guangdong Expressway Media Co.,
Other Payable account 50,000.00 50,000.00
Ltd.
Guangdong Yueyun Traffic Rescue
Other Payable account 2,900.00 2,900.00
Co. Ltd.
Total 40,063,059.57 31,166,873.17
Guangdong Feida Traffic Engineering
Contract liabilities 22,000.00
Co., Ltd.
Total 22,000.00
Non-current liabilities due 1 Guangdong Litong Real estate
9,733,189.08 11,862,198.24
year Investment Co., Ltd.
Non-current liabilities due 1 Guangdong Communication Group
2,196,236.13 2,229,166.68
year Finance Co., ltd.
Non-current liabilities due 1
Zhaoqing Yuezhao Highway Co., Ltd. 111,862.55
year
Total 11,929,425.21 14,203,227.47
Guangdong Litong Development
Lease Liabilities 2,445,724.58
Investment Co., Ltd.
Total 2,445,724.58
Guangdong Communication Group
Long-term loans 197,000,000.00 198,000,000.00
Finance Co., ltd.
Total 197,000,000.00 198,000,000.00
106
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
7. Related party commitment
None
XIII. 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
5.Other
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
None
2. Contingency
(1) Significant contingency at balance sheet date
As of June 30,2022, the Company did not need to disclose important commitments.
3. Contingency
(1) Significant contingency at balance sheet date
As of June 30,2022, the Company did not need to disclose important commitments.
XV. Events after balance sheet date
1. Notes of other significant events
None
XVI.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.
107
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
In RMB
Subsidy item Category Opening balance New subsidy The carry-over in Other changes Closing balance Presentation Asset-
amount in current period is items carried related/revenue-
current period included in profit and over into profit related
loss amount or loss in the
current period
Cancel the special subsidy Financial Other income Assets related
for the expressway appropriation
provincial toll station 30,978,093.11 5,023,474.62 25,954,618.49
project
(2) Government subsidies included in current profits and losses using the total amount method
In RMB
Subsidy item Category Amount included in profit or Presentation items included in profit Asset-related/revenue-related
loss in the current period or loss in the current period
Subsidy for post stabilization Other income Income related
Financial appropriation 1,250,935.46
Work with training instead of training Other income Income related
subsidies Financial appropriation 1,074,875.00
108
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
3.Other important transactions and events have an impact on investors decision-making
（ 1 ） 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. 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 net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and losses) in 2020 was
RMB 769,232,600, RMB 116,755,100 more than the promised amount; the net profit of Guangzhou-Huizhou
Company (excluding non-recurring gains and losses) in 2021 was RMB 1,105,444,400, RMB 7,142,900 less than
the promised amount; by the end of 2021, the accumulated net profit (excluding non-recurring gains and losses)
was RMB 1,874,677,000, RMB 109,612,200 more than the promised amount.
The Company intends to transfer 100% equity of Guangdong Expressway Technology Investment Co., Ltd.
to Guangdong Leatop Technology Investment Co., Ltd., and the transaction-related work is being carried out in an
orderly manner.
109
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
XVII..Notes of main items in financial reports of parent company
1. Account receivable
(1).Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Bad debt
Book Balance Book Balance Bad debt provision
Category provision
Book value Book value
Amount Proportion( Amo Proport Amount Proportio Amount Proport
%) unt ion(%) n(%) ion(%)
Accrual of bad debt provision by
23,382,037.78 100.00% 23,382,037.78 24,208,692.49 100.00% 24,208,692.49
portfolio
Total 23,382,037.78 100.00% 23,382,037.78 24,208,692.49 100.00% 24,208,692.49
110
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Accrual of bad debt provision by single item: None
Accounts receivables with bad debt provision are recognised by portfolio by age
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate(%)
Within 1 year 23,382,037.78
Total 23,382,037.78
Where the current bad debts back or recover significant amounts:None
(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 Co.,
23,382,037.78 100.00%
Ltd.
Total 23,382,037.78 100.00%
2.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 103,205,472.90 1,205,472.90
Other receivable 6,722,102.13 5,680,509.70
Total 109,927,575.03 6,885,982.60
（1）Interest receivable：None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks
1,205,472.90 1,205,472.90
investment No.1 Limited partnership enterprise
Guangdong Guanghui Expressway Co., Ltd. 102,000,000.00
Total 103,205,472.90 1,205,472.90
2）Significant dividend receivable aged over 1 year
I n RMB
Whether or not the
Reasons for non- impairment and the
Items Balance in year-end Aging
recovery basis for its
determination
The partnership
Guangdong Radio and agreement expires and
Television Networks can be recovered after No, it can be recovered
1,205,472.90 3-4 years
investment No.1 Limited the extension in the future
partnership enterprise procedures are
completed
Total 1,205,472.90
111
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Balance in year-end Balance Year-beginning
Book balance Bad debt provision Book balance Bad debt provision
Category
Proport Proportion Book value Proportio Proportion Book value
Amount Amount Amount Amount
ion (%) (%) n (%) (%)
Other receivables for
individual bad debt 30,844,110.43 82.11% 30,844,110.43 100.00% 30,844,110.43 84.45% 30,844,110.43 100.00%
provision
Other receivables for bad
debt provision according to
6,722,102.13 17.89% 6,722,102.13 5,680,509.70 15.55% 5,680,509.70
the combination of credit
risk characteristics
Total 37,566,212.56 30,844,110.43 6,722,102.13 36,524,620.13 30,844,110.43 / 5,680,509.70
112
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Accrual of bad debt provision by single：
Closing book balance
Expected credit loss
Bad Debt Reserves Book balance Bad debt provision Reason
rate(%)
Bad debts were
Kunlun Securities Co., Ltd 30,844,110.43 30,844,110.43 100.00% withdrawn in full in
bankruptcy
Total 30,844,110.43 30,844,110.43
In the portfolio, Disclosure by aging
In RMB
Balance in year-end
Aging Expected credit loss
Other receivable Bad debt provision
rate(%)
Within 1 year 1,938,165.80
Total 1,938,165.80
In the portfolio, other receivables with bad debt provision by other methods:
Name Balance in year-end Balance Year-beginning
Deposit money and quality guarantee fund
2,217,540.36 2,102,176.36
combination
Other 2,566,395.97 2,615,033.34
Subtotal 4,783,936.33 4,717,209.70
Less：Bad debt provision
Total 4,783,936.33 4,717,209.70
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit losses Expected credit loss
Bad Debt Reserves for the entire duration Total
over the next 12 over life (no credit
(credit impairment
months impairment)
occurred)
Balance as at June
30,844,110.43 30,844,110.43
30,2022
Balance as at June
30,2022 in current
Balance as at June
30,844,110.43 30,844,110.43
30,2022
3） Accounts receivable withdraw, reversed or collected during the reporting period
None
4)The actual write-off other accounts receivable: None
5) Other receivables are classified by the nature
In RMB
Nature Closing book balance Opening book balance
Securities trading settlement funds 30,844,110.43 30,844,110.43
Deposit 2,217,540.36 2,102,176.36
Petty cash 1,671,130.23 1,519,593.22
Other 2,833,431.54 2,058,740.12
113
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Less：Bad debt provision -30,844,110.43 -30,844,110.43
Total 6,722,102.13 5,680,509.70
6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable(%)
Kunlun Securities Securities trading s
30,844,110.43 Over 5 years 82.11% 30,844,110.43
Co.,Ltd ettlement funds
Guangdong Litong 22,980.00 1-2 years
Real Estates
Deposit 4.40%
Investment Co., 1,630,467.36 2-3 years
Ltd.
China Railway
No.18 Bureau Surrogate payment 1,099,991.00 Within 1 year 2.93%
Group Co., Ltd.
China Railway
Tunnel Group Co., Surrogate payment 559,388.80 Within 1 year 1.49%
Ltd
Guangdong
Provincial Current account 463,491.88 Over 5 years 1.23%
Freeway Co.,Ltd.
Total 34,620,429.47 92.16% 30,844,110.43
(7) Accounts receivable involved with government subsidies
None
(8) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
3. Long-term equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment Book
Book Balance Book value Book Balance
provision provision value
Investment in 3,347,330,463.4 3,257,062,
3,347,330,463.43 3,257,062,345.85
subsidiaries 3 345.85
Investment in joint 2,626,347,044.2 2,535,548,
2,626,347,044.23 2,535,548,456.61
ventures and associates 3 456.61
5,973,677,507.6 5,792,610,
Total 5,973,677,507.66 5,792,610,802.46
6 802.46
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period Closin
g
Withdra balanc
wn e of
Name Opening balance Add Decreased impairm Closing balance
Other impair
investment investment ent ment
provisio provis
n ion
Jingzhu Expressway
Guangzhu Section 871,171,883.08 871,171,883.08
Co., Ltd.
Guangfo Expressway 154,982,475.25 154,982,475.25
114
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
Co., ltd.
Guangdong
Expressway
95,731,882.42 95,731,882.42
Technology
Investment Co., Ltd.
Yuegao Capital
186,000,000.0
Investment 109,500,000.00 295,500,000.00
(Guangzhou) Co., Ltd. 0
Guanghui Expressway
2,025,676,105.10 2,025,676,105.10
Co., Ltd.
186,000,000.0
Total 3,257,062,345.85 95,731,882.42 3,347,330,463.43
0
115
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
balance
Decrea Announced for Provisi of
Name Opening balance Investment Other Other Closing balance impairm
Increase in se in distributing cash on for Oth
income under comprehensive changes in ent
investment invest dividend or impair er
equity method income equity provisio
ment profit ment
n
I. Joint ventures
II. Associated enterprises
Guangdong
Jiangzhong
318,091,639.29 60,000,000.00 7,786,931.71 31,228.99 385,909,799.99
Expressway Co.,
Ltd.
Ganzhou Gankang
Expressway Co., 154,118,397.12 5,447,568.74 159,565,965.86
Ltd.
Ganzhou Kangda
Expressway Co., 238,101,017.69 18,635,759.71 256,736,777.40
Ltd.
ShenzhenHuiyan
Expressway Co., 320,966,384.17 18,574,112.50 339,540,496.67
Ltd.
Zhaoqing Yuezhao
315,837,951.35 24,596,394.70 48,250,000.00 292,184,346.05
Highway Co., Ltd.
Guoyuan
972,089,465.72 18,673,979.80 -836,824.71 18,626,864.76 971,299,756.05
Securities Co.,Ltd.
Guangdong Yuepu
Small Refinancing 216,343,601.27 4,709,292.76 57,008.18 221,109,902.21
Co., Ltd
Subtotal 2,535,548,456.61 60,000,000.00 98,424,039.92 -836,824.71 88,237.17 66,876,864.76 2,626,347,044.23
Total 2,535,548,456.61 60,000,000.00 98,424,039.92 -836,824.71 88,237.17 66,876,864.76 2,626,347,044.23
116
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 636,965,610.55 249,145,875.83 687,165,042.12 365,511,604.40
Other 5,689,892.19 1,926,210.70 5,469,656.01 1,728,556.53
Total 642,655,502.74 251,072,086.53 692,634,698.13 367,240,160.93
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income
681,064,177.01 655,349,778.63
accounted by cost method
Long-term equity investment income
98,424,039.92 119,611,129.91
accounted by equity method
Investment income from disposal of
-45,107,982.42
Long-term equity investment
Dividend income from other equity
instrument investments during the 47,286,243.74 49,403,538.24
holding period
Interest income from debt investment
10,079,133.93 19,667,579.79
during holding period.
Total 791,745,612.18 844,032,026.57
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-
447,880.54
current assets
Government grants recognized in the
current period, except for those acquired
in the ordinary course of business or
7,349,285.08
granted at certain quotas or amounts
according to the country’s unified
standards
Net amount of non-operating income and
2,881,455.61
expense except the aforesaid items
Other non-recurring Gains/loss items 14,393,329.63
Less :Influenced amount of income tax -8,354,389.12
Influenced amount of minor
2,729,583.49
shareholders’ equity (after tax)
Total 30,696,756.49 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
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
117
Guangdong Provincial Expressway Development Co.., Ltd. The Semi-Annual Financial Report 2022
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 8.45% 0.37 0.37
shareholders of the Company
Net profit attributable to
common
shareholders of the Company
after 8.11% 0.36 0.36
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 sta
ndards. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of t
he overseas institution should be indicated
None
118
