Guangdong Provincial Expressway Development Co

1

Guangdong Provincial Expressway Development Co., Ltd.

The Semi-Annual Report 2015

August 2015

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I. Important Notice, Table of Contents and Definitions

The Board of Directors ,the Supervisory committee as well as all directors, supervisors and senior managementstaff of the Company warrant that this report is factual, accurate and complete without any false record,misleading statement or material omission. And they shall be jointly and severall liable for that

All the directors have attended the meeting of the board meeting at which this report was examined.

The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.

Mr.Zhu Zhanliang, Compant principal , Mr. Xiao Laijiu, General Manager ,Mr.Fang Zhi, Chief of the accountingowrk, Ms.Liu Xiaomei, Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity andcompleteness of the financial report enclosed in this Semi-annual report.

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Table of Contents

2015 Semi-Annual Report

5.Important Notice, Table of contents and Definitions

II. Basic Information of the Company

III. Summary of Accounting Highlights and Business Highlights

IV. Report of the Board of Directors

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Situation of the Preferred Shares

VIII.Information about Directors, Supervisors and Senior Executives

IX. Financial Report

X. Documents available for inspection

4

Definition

Terms to be defined Refers to Definition

The Company /This Company Refers to Guangdong Provincial Expressway Development Co.,Ltd.

Guangfo Refers to The controlling subsidiary Guangfo Expressway Co., Ltd.

Fokai Refers to The controlling subsidiary Fokai Expressway Co., Ltd.

Technology Company Refers toGuangdong Expressway Technology Investment Co., a wholly-owned subsidiary

of the Company

Communication Group Refers to The controlling parent Company， Guangdong Communication Group Co., Ltd.

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II. Basic Information of the Company

1.Company Information

Stock abbreviation: Expressway A, Expressway B Stock code： 000429,200429

Stock exchange for listing： Shenzhen Stock Exchange

Name in Chinese 广东省高速公路发展股份有限公司

Abbreviation of Registered Company (if any) 粤高速

English name (If any) Guangdong Provincial Expressway Development Co.Ltd.

English abbreviation (If any) GPED

Legal Representative Zhu Zhanliang

2. Contact person and contact manner

Board secretary Securities affairs Representative

Name Zuo Jiang Feng Xinwei

Contact address46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang

New City, Tihe Disrtict , Guangzhou

45/F, Litong Plaza, No.32, Zhujiang East Road,

Zhujiang New City, Tihe Disrtict , Guangzhou

Tel 020-29004609 020-29004522

Fax 020-38787002 020-38787002

E-mail [email protected] [email protected]

3.Other

(1)Way to contact the Company

Whether registrations address, offices address and codes as well as website and email of the Company changed inreporting period or not

□ Applicable □√ Not Applicable

The registered address, office address and their postal codes, website address and email address of the Companydid not change during the reporting period. The said information can be found in the 2014 Annual Report.

（2）About information disclosure and where this report is placed

Did any change occur to information disclosure media and where this report is placed during the reporting period?

□ Applicable √ Not applicable

The newspapers designated by the Company for information disclosure, the website designated by CSRC fordisclosing this report and the location where this report is placed did not change during the reporting period. Thesaid information can be found in the 2014 Annual Report.

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（3）Registration changes of the Company

Whether registration has changed in reporting period or not


Date/place for registration of the Company, registration nmber for enterprise legal license number of taxationregistration and organization code have no change in reporting period, found more details in annual report 2014.

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III. Summary of Accounting Highlights and Business Highlights

I.Summary of accounting /Financial Data

May the Company make retroactive adjustment or restatement of the accounting data of the previous years due tochange of the accounting policy and correction of accounting errors.

□Yes √No

Reporting periodSame period of last

yearYoY+/-（%）

Operating income（RMB） 724,392,887.59 688,716,891.86 5.18%

Net profit attributable to the shareholders of thelisted company（RMB）

231,855,370.05 178,192,944.02 30.11%

Net profit after deducting of non-recurring gain/lossattributable to the shareholders of listed company（RMB）

228,030,004.15 176,476,690.94 29.21%

Cash flow generated by business operation, net（RMB）

518,081,630.75 500,941,101.24 3.42%

Basic earning per share(RMB/Share) 0.18 0.14 28.57%

Diluted gains per share(RMB/Share)(RMB/Share) 0.18 0.14 28.57%

Weighted average ROE(%) 4.49% 4.15% 0.34%

As at the end of thereporting period

As at the end of lastyear

YoY+/-（%）

Gross assets（RMB） 12,400,203,367.83 12,513,505,946.42 -0.91%

Net asseta attributable to Shareholders’ equityattributable to shareholders of the listed company（RMB）

5,235,242,444.46 5,016,176,476.09 4.37%

II. Differences between accounting data under domestic and overseas accounting standards

1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chineseaccounting standards.

□ Applicable √Not applicable

No difference .

2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards.

□ Applicable √Not applicable

No difference .

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III.Items and amount of non-current gains and losses

√Applicable □Not applicable

In RMB

Items Amount Notes

Non-current asset disposal gain/loss(including the write-off part

for which assets impairment provision is made)-362,152.09

Govemment subsidies recognized in currentgain and

loss(excluding those closely related to the Company’s business

and granted under the state’s policies)

230,000.00

Operating income and expenses other than the aforesaid items 5,220,848.96

Other non-business income and expenditures other than the above 854,210.29

Less:Amount of influence of income tax 1,210,023.58

Amount of influence of minority interests(after tax) 907,517.68

Total 3,825,365.90 --

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.

□ Applicable√ Not applicable

In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss.

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IV. Report of the Board of Directors

I. General

In the first half year of 2015, the Board of Directors actively implemented each resolution of the ShareholdersMeeting and fulfilled their duties. All the directors were dedicated, diligent and dutiful, following the strategicguidelines which strengthened and optimized the main business of the expressway to guarantee the steadydevelopment of the company and the effect of the platform with cost reduction and profit increase, and activelysought for diversified transitions for investment to accelerate the sustainable development and values promotionof the company with market orientation and exertion of advantage, leading the operator group of the company tocarry out management activities.

During the reporting period, the company’s operating revenue increased by 5.18% year on year, where operatingcosts, administrative expense and financial expense all declined and truly implemented “cost reduction andprofit increase”. Meanwhile, the company actively promoted the ongoing reorganization of significant assets withthe controlling shareholder-Guangdong Communication Group.

II. Analysis on principal Business

General

The Company is an infrastructure industry, with main business in developing and operating expressway and bigbridges. It is one of the main institutions of developing expressway and big bridge in Guangdong ExpresswaySystem. The expressway industry is the industry helped by government.

In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of theCompany are as follows:

Volume of vehicle traffic in

the first half year of

2015( vehicles)

Increase

/Decrease(%)

Toll income in the first half

year of 2015（RMB’0000）

Increase

/Decrease(%)

Guangfo Expressway 23,357,296 8.87% 17493.47 6.65%

Fokai Expressway 20,747,592 8.69% 53319.75 3.77%

Huiyan Expressway 14,758,876 -4.56% 9540.33 -12.42%

Jingzhu Expressway Guangzhu

Section

27,825,431 8.34% 51393.8 6.74%

Guangzhao Expressway 12,369,658 6.39% 24032.31 -5.65%

Guanghui Expressway 18,882,574 20.38% 77819.26 11.45%

Jiangzhong Expressway 18,765,647 7.52% 18789.58 6.34%

Kangda Expressway 1,128,009 25.20% 11579.51 1.82%

Gangkang Expressway 1,140,889 13.04% 8676.1 5.90%

Each highway traffic flow and tolls with holding or share is presenting growth; Due to the tolls free for Yantianaotunnel of Huiyan Highway, the traffic flow and tolls decreased year on year (More information on tolls free pleasesee Announcement of Tunnel Toll Termination of Yantianao Tunnel published at http://www.cninfo.com.cn. on

http://www.cninfo.com.cn.

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January 31,2015; For Guangzhao Expressway, the number of short distance vehicles grew, the traffic flowincreased and the tolls decreased.

Year-on-year change of main financial data

In RMB

This report periodSame period last

year

YOY change

（%）Cause change

Operating income 724,392,887.59 688,716,891.86 5.18%

Operating cost 360,698,877.33 369,614,599.73 -2.41%

Administrative expenses 69,132,844.52 76,476,533.85 -9.60%

Financial expenses 183,994,351.27 205,409,981.84 -10.43%The reduction of with-interest liability resulted in

the reduction of financial expense year on year

Income tax expenses 54,004,634.55 31,692,786.86 70.40%

As the compositive effect of the profit increase,

the increase of current income tax expense and the

change of the deferred income tax, the income tax

expense increased year on year.

Net cash flows from

operating activities518,081,630.75 500,941,101.24 3.42%

Net cash flows from

investing activities159,087,553.76 -172,731,374.19 -192.10%

Caused by the compositive effect of the increasing

dividend received, the decrease of project expense

and the overseas investment, the withdrawal of

reserve-purchase bonds and so on.

Net cash flows from

financing activities-658,555,197.00 -351,378,336.78 87.42%

Caused by the compositive effect of the increase

of loan repayment, the decrease of interest

payment, the increase of dividend distribution and

so on.

Net increase in cash and

cash equivalents18,113,649.36 -23,446,167.12 -177.26%

Caused by the compositive effect of the increase

inflow of investment and financial activities

compared to the last period.

Major changes in profit composition or cources during the report period


The profit composition or sources of the Company have remained largely unchanged during the report period.

Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capitalreorganization report into this report period.\


No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capitalreorganization report into this report period.\

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Implementation of business plans disclosed in previous periods in this period.

The plannned operating income and operating cost of the Company for 2015 disclosed in the annual report for2014 were RMB 1.558 billion and RMB 909 million respectively. As of June 30, 2015, its operating income andoperating cost were RMB 724 million and RMB 361 million respectively.

III. Business composition

In RMB

Turnover Operation cost

Gross

profit

rate(%)

Increase/decrease

of reverue in the

same period of

the previous

year(%)

Increase/decrease

of rincipal

business cost

over the same

period of

previous year

(%)

Increase/decrease of gross

profit rate over the same

period of the previous year

(%)

Industry

Highway transportation 706,594,515.37 355,981,412.34 49.62% 4.97% -0.70% 2.88%

Others 17,798,372.22 4,717,464.99 73.49% 217.20% 7.67% 51.58%

Product

Highway transportation 706,594,515.37 355,981,412.34 49.62% 4.97% -0.70% 2.88%

Others 17,798,372.22 4,717,464.99 73.49% 217.20% 7.67% 51.58%

Area

Guangfo Expressway 175,074,062.80 111,221,339.96 36.47% 7.30% -6.71% 9.54%

Fokai Expressway 531,520,452.57 244,760,072.38 53.95% 4.22% 2.29% 0.87%

Others 6,493,217.55 1,487,512.44 77.09% 15.72% -66.05% 55.17%

IV. Analysis On core Competitiveness

The Company is an infrastructure industry, with main business in developing and operating expressway and bigbridges. It is one of the main institutions of developing expressway and big bridge in Guangdong ExpresswaySystem.

Guangfo Expressway holding company, the Fokai Expressway and Maozhan Expressway are the parts "fivevertical and seven horizontal part of the national highway network planning. The holding highways are also theGuangdong Provincial Expressway Network Plan which provide a strong guarantee for the traffic flow. At thesame time, the regional economy is an important factor affecting highway traffic volume. With the gradual

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implementation of expressway network planning of Guangdong Province in recent years, the road networkconnection effect has been increasingly better, which contributes to accelerating the growth of vehicle trafficvolume of expressways run by the Company.

13

V. Analysis on investment Status

1. Foreign Equity investment

（1）External investment


There was no foreign investment of the Company in the reorting period.

（2）Holding of the equipty in financial enterprises


Company NameCompany

type

Intial Investment

cost (RMB)

Number of shares

held at the

beginning of the

reporting period

(shares)

Shareholding

proportion at

the the

beginning of

the reporting

period (%)

Number of

shares held at

the end of the

reporting

period(shares)

Shareholding

proportion at the

end of the

reporting

period(%)

Book balance at the

end of the reporting

period (RMB)

Gain.loss of

the reporting

period

(RMB)

Accounting itemsSource of the

shares

China

Everbright

Bank

Commerci

al Bank528,000,000.00 235,254,944 0.50% 235,254,944 0.50%

Financial assets

available for sale

Subscribe on

2009

Total 528,000,000.00 235,254,944 -- 235,254,944 -- -- --

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（3）Investment in securities


Security

category

Security

code

Short form of

securityIntial

Investment cost

(RMB)

Number of shares

held at the

beginning of the

reporting period

(shares)

Shareholding

proportion at

the the

beginning of

the reporting

period (%)

Number of shares

held at the end of

the reporting

period(shares)

Shareholding

proportion at

the end of the

reporting

period(%)

Book balance

at the end of

the reporting

period (RMB)

Gain.loss of the

reporting period

(RMB)

Accounting

items

Source of

the shares

Stock 601818China Everbright

Bank528,000,000.00 235,254,944 0.50% 235,254,944 0.50%

Financial assets

available for

sale

Subscribe

on 2009

Total 528,000,000.00 235,254,944 -- 235,254,944 -- -- --

Disclosure Date of Announcement on

Securities Investment Approved by the

Board of Directors

July 22, 2009

Disclosure Date of Announcement on

Securities Investment Approved by the

Shareholders Meeting

August 7, 2009

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(4)Notes to holding of the equity in other listed companies


The company did not hold shares of other listed companies at the reporting period.

2.Information of trust management, derivative investment and entrusted loan

（1）Trust management


There was no trust management of the Company in the reorting period.

（2）Derivative investment


There was no derivative investment of the Company in the reporting period.

（3）Entrusted loan

□Applicable √Not applicable

I3.Application of raised proceeds


The company had no application of raised proceeds in the reporting period.

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4.Analysis on principal subsidiaries and Mutual Shareholding Companies

√ Applicable □ Not applicable

Particulars about the principal subsidiaries and Mutual shareholding companiesIn RMB

Company

Name

Company

type

Sectors

engaged inLeading products and services

Registered

capital

Total

assets(RMB)

Net assets

(RMB)

Tumover

(RMB)

Operating

profit (RMB)

Net Profit

(RMB)

Guangfo

Expressway

Co., Ltd.

Subsidiary Expressway

Operating Guangfo Expressway Co., Ltd.(starts from

Hengsha, Guangzhou, ends in Xiebian, Foshan.

Total length 15.7 kilometers

RMB 200

million541,798,087.86 323,363,743.73 177,462,820.98 43,037,481.69 13,088,460.94

Guangdong

Fokai

Expresswa

y

Subsidiary Expressway

Operation and management of Fokai Expressway

Co., Ltd., supporting salvage, maintenance and

cleaning, supply of parts and components

RMB

1.108

billion

6,837,437,490.73 3,201,536,045.92 538,224,330.57 147,899,354.57 85,895,687.33

Guangdong

Expressway

Technology

Investment

Co., Ltd

Subsidiary Composite

Investing in science and technology industries.

Investment in technical industries and provision of

relevant consulting services, research and

development of lighting technology, energy saving

and storage technology, photovoltaic technology of

solar energy and production and sales of relevant

products, design, production , release and agency of

all kinds of domestic and foreign advertisements,

construction and maintenance management of

highway projects and domestic trade. （excluding

illegally， or prohibited and restricted by law

products）

RMB 100

million54,849,628.15 9,622,319.16 10,869,854.55 6,569,505.83 6,799,505.83

Shenzhen

Huiyan

Sharing

companyExpressway

The organization and management of the

construction of the main line of Shenzhen section of

RMB 36

million534,165,343.79 415,285,975.21 96,093,908.58 44,520,599.65 32,688,059.55

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Company

Name

Company

type

Sectors


Registered

capital

Total

assets(RMB)

Net assets

(RMB)

Tumover

(RMB)

Operating

profit (RMB)

Net Profit

(RMB)

Expressway

Co., Ltd.

Huiyan Expressway, its operation, management and

maintenance after its completion, collection of toll

and road service management, the construction

management of road, bridge and culvert projects and

engineering consultation

Jingzhu

Expressway

Guangzhu

Section Co.,

Ltd.

Sharing

companyExpressway

The operation and management of

Guangzhou-Zhuhai Expressway and provision of

supporting services including fueling, salvage and

supply of parts and components

RMB 580

million4,220,179,609.03 1,735,151,143.25 527,964,879.75 243,831,213.69

180,291,546.4

0

Zhaoqing

Yuezhao

Highway

Co., Ltd.

Sharing

companyExpressway

Construction, operation and management of

Guangzhao Expressway, old highways and their

supporting facilities, service facilities and integrated

projects.

RMB

818.3

million

2,184,528,636.87 1,157,250,317.86 242,821,675.27 84,231,730.41 64,636,934.25

Guangdong

Guanghui

Expressway

Co., Ltd.

Sharing

companyExpressway

Investment in and construction of Guanghui

Expressway Co., Ltd. and supporting facilities, the

toll collection and maintenance management of

Guanghui Expressway

RMB

2.352

million

5,494,916,846.83 3,815,986,333.42 787,594,239.51 443,582,700.89338,745,869.7

9

Guangdong

Jiangzhong

Expressway

Co., Ltd..

Sharing

companyExpressway

Investing in, constructing, operating and managing

Jiangzhong Expressway Co., Ltd. and phase-II

project of Jianghe Expressway and developing

supporting projects.

RMB

1.015

billion

2,289,372,937.74 1,188,277,628.32 202,641,512.94 41,977,131.06 31,063,757.09

Ganzhou

Kangda

Expressway

Co., Ltd.

Sharing

companyExpressway

Construction, operation and management of

expressway projects; highway maintenance;

Advertising; wholesale and retail of construction

machinery equipments and accessories (the

RMB 600

million1,634,662,623.79 592,519,463.55 118,859,388.33 44,525,047.35 42,564,485.24

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Company

Name

Company

type

Sectors


Registered

capital

Total

assets(RMB)

Net assets

(RMB)

Tumover

(RMB)

Operating

profit (RMB)

Net Profit

(RMB)

above-mentioned projects should be in accordance

with state special provisions)

Ganzhou

Gankang

Expressway

Co., Ltd.

Sharing

companyExpressway

Project of Ganzhou-dayu expressway

(Maodian-Sanyi) and the construction and

management of Ganjiang Highway project; earth

mining and sale; highway maintenance; advertising;

service facilities; building materials, decoration

materials, metal materials, wholesale and retail of

construction machinery and equipments and

accessories (the above-mentioned projects should be

in accordance with state special provisions).

RMB 754

million1,899,027,302.56 684,313,663.34 95,640,534.67 25,067,348.47 22,225,070.15

Guangdong YuekeTechnology PettyLoan Co.,Ltd.

Sharing

company

Financialindustry

Handle all small loans, and other businesses approve

d by the Guangdong Provincial Finance Office

RMB 1

billion1,039,025,997.18 1,029,471,818.83 23,099,169.06 12,239,568.68 9,139,346.98

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5. Significant projects of investments with non-raised funds


The company has no project invested by raised fund in the reporting period.

VI. Performance Forecast for January to September 2015

Alert of loss or significant change in net profit from the beginning of year to the end of next report period orcomparing with the same period of last year, and statement of causations.


VII. Explanation by the Board of Directors and the Supervisory Committee about the “non-standard audit report”issued by the CPAs firm for the reporting period


VIII. Explanation by the Board of Directors about the relevent situation of the “non-standard audit report” of theprevuiys year


IX. Profit distribution carried out in the report period

Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the reportperiod.

√Applicable□ Not Applicable

Which has been adopted. According to the resolution passed at the annual shareholders’ general meeting 2014,The Company's dividend distribution plan for 2013: With the existing total share capital, i.e., 1,257,117,748 shares,as the base, cash dividend of RMB 1.00 (including tax) is to be distributed for every 10 shares,Cash dividend ofRMB 125,711,774.80 is to be distributed, The undistributed profit was carried forward to the nest year. TheCompany had implemented this distribution plan on June 10, 2014.

Special explanation of the cash dividend policy

Whether conformed with the regulations of the Articles of association or the requirements of the resolutions of the

shareholders’ meeting:Yes

Whether the dividend standard and the proportion were definite and clear: Yes

Whether the relevant decision-making process and the system were complete: Yes

Whether the independent director acted dutifully and exerted the proper function: Yes

Whether the medium and small shareholders had the chances to fully express their suggestions and appeals, of which

their legal interest had gained fully protection:Yes

Whether the conditions and the process met the regulations and was transparent of the adjustment or altered of the

cash dividend policy:Yes

X. Preplan for profit distribution and turning capital reserve into share capital in the reporting period


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The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserveinto share capital.

XI. Particulars about researches, visits and interviews received in this reporting period


There is no reception research, interviews and other activities during the reporting period.

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V. Important Events

I. Administrative position

The company strictly abides by the requirements of laws and regulations of "Corporate Law", "Securities Law","Governance Rules of Listed Companies" and "Listing Rules of Stocks" to continuously perfect the corporategovernance structure and improve the norms operation level. Also, the company has set up the "Articles ofAssociation", the parliamentary procedure of three meetings operating, the work rules of the special committee ofthe Board of Directors, the work rules of General Manager and other systems, as well as the internal controlsystems basically covering the company's financial management, investment management, information disclosure,affiliated transactions, external guarantee, funds-raising and all aspects of business management, and all thesystems have been implemented better.

At present, the actual status of corporate governance complied with the requirements of relevant documents ofCSRC and regulatory authority. According to the requirements of relevant laws and regulations and regulatorydocuments, the Company will stick to the policy of continuous rectification, unceasingly strengthen theconstruction of corporate governance structure, continously enhance its level of corporate governance and makeits governance structure more steady and transparent.

II. Lawsuits affairs

Major lawsuits and Arbitration affairs


The Company has no major lawsuit or arbitration in the report period.

Other Lawsuits affairs


III. Query form media


In the reporting year, the Company had no query from media

IV. Bankruptcy or Reorganization Events


There Company was not involved in any bankruptcy or reorganization events in the reporting period.

V. Transaction in Assets

1. Purchase of assets


There is no purchase of assets in the Company during the reporting period.

2. Sale of assets

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There is no sale of assets in the Company during the reporting period

3. Business combination


VI. Implementation and Influence of Equity Incentive Plan of the Company


There is no equity incentive plan and its implementation in the Company during the reporting period.

VII. Significant related-party transactions

1. Related-party transactions concerning routine operation


The company has no transactions related to daily operations in the reporting period.

2. Related-party transactions arising from asset acquisition or sale


The Company was not involved in any related-party transactions arising from asset acquisition or sale during thereporting period.

3. Related-party transitions with joint investments


The Company was not involved in any related-party transaction with joint investments during the reportingperiod.

4. Credits and liabilities with related parties


Was there any non-operating credit or liability with any related party?

□ Yes √ No

The Company was not involved in any credits and liabilities with related parties during the reporting period.

5. Other significant related-party transactions


The 15th meeting of the seventh board of directors of the Company was held on March 23,2015. The meetingexamined and adopted the Proposal for Renewing the Lease of Litong Plaza as Office Building. The Companyapproved to continue to lease the 43rd and 44th floor (conceptual design floor) of Litong Plaza as offices fromGuangdong Litong Property Investment Co., Ltd. The renewal period starts from May 5, 2015 to May 4, 2016with the monthly rent per square meter (gross floor area) is RMB 160 , the total amount of the contract is RMB10.5897 million .

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The website to disclose the interim announcements on significant related-party transactions

Description of provisional announcementDate of disclosing provisional

announcement

Description of the website for disclosing

provisional announcements

Related transaction announcement March 25,2015 www.cninfo.com.cn

VIII. Particulars about the non-operating occupation of funds by the controlling shareholder

and other related parties of the Company


The Company was not involved in the non-operating occupation of funds by the controlling shareholder and otherrelated parties during the reporting period..

IX. Particulars about significant contracts and their fulfillment

1. Particulars about trusteeship, contract and lease

(1) Trusteeship


There was no any trusteeship of the Company in the reporting period.

(2) Contract


There was no any contract of the Company in the reporting period.

(3) Lease


There was not involved in ant lease of the Company in the reporting period.

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2.Guarantee


In RMB’0000

External Guarantee (Exclude controlled subsidiaries)

Name of the Company

Relevant disclosure

date/No. of the guaranteed

amount

Amount of

Guarantee

Date of happening

(Date of signing

agreement)

Actual mount of

guarantee

Guarantee

type

Guarante

e term

Complete

implementation

or not

Guarantee for

associated parties

(Yes or no)

Guangdong Communication Group

Co., Ltd.May 11, 2012 150,000 No Yes

Total of external guarantee approved in Period(A1) 0Total of actual external guarantee

in Period(A2)0

Total of external guarantee approved at Period-end(A3) 0Total balance of actual external

guarantee at Period-end(A4)150,000

Guarantee of the Company for the controlling subsidiaries

Name of the

Company

guaranteed

Relevant disclosure date/No. of the

guaranteed amount

Amount of

guarantee

Date of

happening (Date

osigning

agreement)

Actual mount

of guaranteeGuarantee type Guarantee term

Complete

implementation or

not

Guarantee for associated

parties (Yes or no)

Guarantee of the subsidiaries for the controlling subsidiaries

Name of the

Company

guaranteed

Relevant disclosure date/No. of the

guaranteed amount

Amount of

guarantee

Date of

happening

(Date osigning

agreement)

Actual mount

of guarantee

Guarantee

typeGuarantee term

Complete

implementation

or

not

Guarantee for associated

parties (Yes or no)

Total of Company’s guarantee（namely total of the large three aforementioned）

Total of guarantee in the Period （A1+B1+C1） 0 Total of actual guarantee in the Period（A2+B2+C2） 0

25

Total of guarantee at Period-end（A3+B3+C3） 0 Total of actual guarantee at Period-end （A4+B4+C4） 150,000

The proportion of the total amount of actually guarantee in the net assets of the Company(that

is A4+B4+C4)28.65%

Including

Amount of guarantee for shareholders, actual controller and its associated parties（D） 150,000

The debts guarantee amount provided for the Guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly（E） 0

Proportion of total amount of guarantee in net assets of the company exceed 50%（F） 0

Total guarantee Amount of the abovementioned guarantees 150,000

Description of the guarantee with complex method

（1）Guarantees provided by the company


There was not involved in any Guarantees provided by the company in the reporting period.

3. Other significant contracts


There was no other significant contract of the Company in the reporting period.

4. Other significant transactions


X. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the reporting period or such commitments carried down intothe reporting period


There was no commitments made by the company or shareholders holding over 5% of the company's shares in the reporting period or such commitments carried down into the reporting period.

26

XI. Particulars about engagement and disengagement of CPAs firm

Whether the semi-annual financial report had been audited?

□ Yes √ No

The semi-annual financial report has not been audited.

XII. Punishment and Rectification


There was no any punishment and rectification of the Company in the reporting period.

XIII. Reveal of the delisting risks of illegal or violation


There was no any delisting risk of illegal or violation of the Company in the reporting period.

XIV. Explanation about other significant matters


Due to the controlling shareholder of Guangdong Communication Group Co., Ltd. is planning major issues relatedwith Guangdong Provincial Expressway Development Co.,Ltd. , the company's stock (Stock Abbreviation: Guangdong Expressway A, B, Stock Code: 000429, 200429) was suspension from April 8, 2015.

On June 30, 2015, The 18th (Provisional) Meeting of the Seventh Board of Directors adopted the Proposal ofGuangdong Provincial Expressway Development Co., Ltd. issued shares to raise cash to buy assets and relatedtransactions matching funds plan.The company intends through the issuance of A shares to purchase 25% stake ofFokai hold by Provincial Expressway, and Guangzhu 100% stake held by transportation construction company,purchase by cash of the Guangzhu East's debt held by the construction company. Moreover，The company intendsto non-public offering of A shares to raise matching funds to Yadong Fuxing Yalian Investment Co., Ltd., TibetYingyue Investment Management Co.,Ltd. and Guangfa Securities Co., Ltd. To pay the transaction cashconsideration, the transaction taxes and supplement working capital of listed companies, the amount of matchingfunds to be raised no more than RMB 1650 million, assets to be purchased no more than 100% of the transactionprice.

The company's stock (Stock Abbreviation: Guangdong Expressway A, B, Stock Code: 000429, 200429) willresume trading on July 22, 2015.

The major asset restructuring-related related announcement, investors can access to www.cninfo.com.cn for moredetails

Date Content

April 8, 2015 Guangdong Expressway A：Major issues suspension announcement

April 15,2015 Guangdong Expressway A：Major issues continued suspension announcement

April 22, 2015 Guangdong Expressway A：Announcement of Major asset restructuring suspension

April 29,2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress

May 6, 2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress

27

May 8, 2015 Guangdong Expressway A：Announcement of Application to Continue the Suspension Expires on

Planned Restructuring

May 13,2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress



June 3, 2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress

June 10,2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress

June 17,2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress

June 24, 2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress

July 1, 2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Extended Resumption

June 1, 2015 Guangdong Expressway A：Announcement of Resolutions of the 18th (Provisional) Meeting of the

Seventh Board of Directors

July 1, 2015 Guangdong Expressway A：Announcement of the Board of Directors of General Risk on Major Asset

Restructuring

July 1, 2015 Guangdong Expressway A：The Verification Opinionaire of the Reorganization Plan and the Independent

Financial Adviser

July 1, 2015 Guangdong Expressway A：The verified comment of the independent financial adviser on the issue of

shares and cash to buy assets and raise matching funds and related transactions of CITIC Securities Co.,

Ltd.

July 1, 2015 Guangdong Expressway A：The ex-ante approval comment of the independent director on the agreement

which submits the related proposals of the significant asset organization to the board of directors.

July 1, 2015 Guangdong Expressway A：The independent comment of the independent director on the issue of shares

and cash to buy assets and raise matching funds and related transactions

July 1, 2015 Guangdong Expressway A：The plan of issue of shares and cash to buy assets and raise matching funds

and related transactions

July 10,2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Progress

July 15, 2015 Guangdong Expressway A：Announcement of Major asset restructuring continued Restructuring and

Progress

July 22, 2015 Guangdong Expressway A：Announcement of Major Asset Restructuring Resumption

July 22, 2015 Guangdong Expressway A：The reply to the inquiry letter on The Reorganization of Guangdong

Provincial Expressway Development Co., Ltd of Shenzhen Stock Exchange.

July 22, 2015 Guangdong Expressway A：The announcement of revision and explanation for the plan on the issue of

shares and cash to buy assets and raise matching funds and related transactions

July 22, 2015 Guangdong Expressway A：The reply to the inquiry letter on the reorganization of Guangdong Provincial

Expressway Development Co., Ltd of Shenzhen Stock Exchange. by CITIC Securities Co., Ltd.

July 22, 2015 Guangdong Expressway A：Issue of shares and cash to buy assets and raise matching funds related

transactions plan (Revised Draft)

28

VI. Change of share capital and shareholding of Principal Shareholders

(I).Changes in share capital

In shares

Before the change Increase/decrease（+，-） After the Change

Amount ProportionShare allotment Bonus shares

Capitalization of

common reserve fundOther Subtotal Quantity Proportion

1.Shares with conditional subscription 440,485,326 35.04% -768,645 -768,645 439,716,681 34.98%

1.State-owned shares 409,977,151 32.61% 409,977,151 32.61%

2.State-owned legal person shares 21,712,738 1.73% 21,712,738 1.73%

3.Other domestic shares 8,795,437 0.70% -768,645 -768,645 8,026,792 0.64%

Including ：Domestic Legal person shares 8,063,849 0.64% -710,982 -710,982 7,352,867 0.58%

Domestic natural person shares 731,588 0.06% -57,663 -57,663 673,925 0.05%

II.Shares with unconditional subscription 816,632,422 64.96% 768,645 768,645 817,401,067 65.02%

1.Common shares in RMB 467,882,422 37.22% 768,645 768,645 468,651,067 37.28%

2.Foreign shares in domestic market 348,750,000 27.74% 348,750,000 27.74%

III. Total of capital shares 1,257,117,748 100.00% 1,257,117,748 100.00%

Reasons for share changed

√ Applicable □Not applicable

Notes 1：In the report period, Mr. Yun Wu Jun attained the retiring age, resigned from the post of the Chief

Accountant,5,011 unrestricted negotiable shares held by him were transferred into frozen shares for senior executives.

Notes 2：In the report period，710,982 shares held by domestic legal persons subject to sale restriction and 62,674 shares held by domestic Natural personssubject tosale restriction was unfrozen and listed for trading and transferred into unrestricted shares on January 26, 2015.

Approval of Change of Shares

29


Transfer of Change of shares


Influence from the shareholding movements upon such financial indicatiors as eamings per share, net asset per share of the lastest year and the latest accountingperiod


Other information as the Company considers necessary to be disclosed or demanded by the securities regulatory authority for disclosing.


Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company


II. Number of shares and shares held

In shares

Total common shareholders in reporting

period-end85,629

The total number of preferred shareholders voting rights restored at period-end (if

any)(See Notes 8)0

Particulars about shares held above 5% by shareholders or top ten shareholders

Shareholders Nuture of shareholder

Proportio

n of

shares

held（%）

Number of

shares held at

period -end

Changes in

reporting

period

Amount of

restricted

shares held

Amount of

un-restricted

shares held

Number os share

pledged/frozen

State of

shareAmount

Guangdong Communication Group Co.,Ltd State-owned legal person 40.84% 513,356,893 0 409,977,151 103,379,742 Frozen 103,379,742

Guangdong Expressway Co., Ltd State-owned legal person 1.56% 19,582,228 0 19,582,228

Haerbin Hali Industrial Co., Ltd. Domestic non State-owned 1.18% 14,850,682 -1095140 14,850,682

30

Legal person

Xinyue Co., Ltd. Foreign legal person 1.05% 13,201,086 0 13,201,086

Guangdong Yuecai Trust Investment CO., Ltd. State-owned legal person 0.97% 12,174,345 0 12,174,345

Bank of China－Huatai Bairui Positive Growth Mixed

Securities Investment Fund

Domestic non State-owned

Legal person0.94% 11,853,046 0 11,853,046

Li ZhuoDomestic natural person

shares0.68% 8,557,879 0 8,557,879

Liu FengDomestic natural person

shares0.27% 3,337,952 4400 3,337,952

GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED Foreign legal person 0.25% 3,162,502 -936856 3,162,502

Hu MaohuaDomestic natural person

shares0.25% 3,133,868 0 3,133,868

Strategy investors or general legal person becomes top 10 shareholders due to rights

issued (if applicable)（See Notes 3）N/A

Explanation on associated relationship among the aforesaid shareholders

Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Expressway Co.,

Ltd. and Xinyue Co., Ltd.. It is unknown whether there is relationship between other shareholders and

whether they are persons taking concerted action specified in the Regulations on Disclosure of

Information about Change in Shareholding of Shareholders of Listed Companies.

Shareholding of top 10 shareholders of unrestricted shares

Name of the shareholderQuantity of unrestricted shares held

at the end of the reporting period

Share type

Share type Quantity

Guangdong Communication Group Co.,Ltd 103,379,742 RMB Common shares 103,379,742

Haerbin Hali Industrial Co., Ltd. 14,850,682 RMB Common shares 14,850,682

Xinyue Co., Ltd. 13,201,086Foreign shares placed in domestic

exchange13,201,086

31

Guangdong Yuecai Trust Investment Co., Ltd. 12,174,345 RMB Common shares 12,174,345

Bank of China－Huatai Bairui Positive Growth Mixed Securities Investment Fund 11,853,046 RMB Common shares 11,853,046

Li Zhuo 8,557,879 RMB Common shares 8,557,879

Liu Feng 3,337,952 RMB Common shares 3,337,952

GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 3,162,502Foreign shares placed in domestic

exchange3,162,502

Hu Maohua 3,133,868Foreign shares placed in domestic

exchange3,162,502

Lu Weiqiang 2,900,992Foreign shares placed in domestic

exchange2,900,992

Explanation on associated relationship or consistent action among the top 10 shareholders of

non-restricted negotiable shares and that between the top 10 shareholders of non-restricted

negotiable shares and top 10 shareholders

Guangdong Communication Group Co., Ltd. is the parent company of Xinyue Co., Ltd.. It is

unknown whether there is relationship between other shareholders and whether they are persons

taking concerted action specified in the Regulations on Disclosure of Information about Change

in Shareholding of Shareholders of Listed Companies.

Notes to the shareholders involved in financing securities (if any)(See Notes 4)

Harbin Hali Industry Co., Ltd. holds 14,849,774 A shares of the Company through stock

account with credit transaction and guarantee and holds 908 A shares through ordinary stock

account. hold 14,850,682 shares of the Company's stock totally；Li Zhuo holds 8,557,879 A

shares of the Company through stock account with credit transaction and guarantee and holds 0

A shares through ordinary stock account, hold8,557,879 shares of the Company's stock totally；

Liu Feng holds 3,321,152 A shares of the Company through stock account with credit

transaction and guarantee and holds16,800 A shares through ordinary stock account. hold

3,337,952 shares of the Company's stock totally.

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.

□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reportingperiod.

32

III. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period

□ Applicable √ Not Applicable

There was no any change of the controlling shareholder of the Company in the reporting period.

Change of the actual controller in the reporting period


There was no any change of the actual controller of the Company in the reporting period.

IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by theshareholders and act-in-concert persons


Within the scope known to the Company, there was no any shareholding increase scheme during the reportingperiod proposed or implemented by the shareholders and act-in-concert persons.

33

VII. Situation of the Preferred Shares


The Company had no preferred shares in the reporting period.

34

VIII. Information about Directors, Supervisors and Senior Executives

I. Change in shares held by directors, supervisors and senior executives

□ Applicable √ Not Applicable

There was no change in shareholding of directors, supervisors and senior management staffs, for the specificinformation please refer to the 2014 Annual Report.

II. Changes in directors, supervisors and senior management staffs

√Applicable □ Not applicable

Name Title Type Date Reason

You XiaocongChairman of the Supervisory Committee,

SupervisorDeparture March 6,2015 Job transfer

Zou Huiming Supervisor Departure March 6, 2015 Job transfer

Ling PingChairman of the Supervisory Committee,

SupervisorBe elected March 23, 2015 Be elected

Wu Guangze Supervisor Be elected March 23, 2015 Be elected

Yun Wujun Chief Accountant Deprarture May 27, 2015 Retired

Fang Zhi Chief Accountant Appoint May 27, 2015 Appointed by the Board

35

IX. Financial Report

1. Audit report

Has this semi-annual report been audited?

□ Yes √ No

The semi-annual financial report has not been 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.

In RMB

Items At the end of term Beginning of term

Current asset：

Monetary fund 579,914,053.08 561,800,403.72

Settlement provision

Outgoing call loan

Financial assets measured at fair value

with variations accounted into current

income account

Derivative financial assets

Bill receivable

Account receivable 72,092,863.12 23,621,958.13

Prepayments 2,475,322.20 963,349.67

Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts

receivable

Interest receivable

Dividend receivable 38,667,000.00

Other account receivable 14,631,106.96 28,245,949.17

36

Repurchasing of financial assets

Inventories

Assets held for sales

Non-current asset due in 1 year

Other current asset 40,632,376.52

Total of current assets 707,780,345.36 655,264,037.21

Non-current assets：

Loans and payment on other’s behalf

disbursed

Disposable financial asset 2,059,541,601.57 1,946,619,228.45

Expired investment in possess

Long-term receivable

Long term share equity investment 2,701,141,468.70 2,706,081,363.32

Property investment 3,916,291.18 4,148,397.88

Fixed assets 6,908,556,253.64 7,176,766,024.73

Construction in progress 8,096,697.03 2,974,467.60

Engineering material 1,549,556.00 1,549,556.00

Fixed asset disposal

Production physical assets

Gas & petrol

Intangible assets 4,312,151.18 5,051,049.34

R & D petrol

Goodwill

Long-germ expenses to be amortized 4,132,570.62 5,006,154.74

Differed income tax asset 8,869,234.60

Other non-current asset 1,176,432.55 1,176,432.55

Total of non-current assets 11,692,423,022.47 11,858,241,909.21

Total of assets 12,400,203,367.83 12,513,505,946.42

Current liabilities

Short-term loans 150,000,000.00 150,000,000.00

Loan from Central Bank

Deposit received and hold for others

Call loan received

Financial liabilities measured at fair

value with variations accounted into

37

current income account

Derivative financial liabilities

Bill payable

Account payable 141,853,033.21 150,799,208.60

Advance payment 4,554,050.73 4,868,022.79

Selling of repurchased financial assets

Fees and commissions receivable

Employees’ wage payable 2,842,870.41 2,808,275.72

Tax payable 40,690,666.11 11,575,093.74

Interest payable 57,625,780.31 24,473,342.31

Dividend payable 20,397,258.54 11,148,088.30

Other account payable 206,927,408.63 369,325,097.99

Reinsurance fee payable

Insurance contract provision

Entrusted trading of securities

Entrusted selling of securities

Liabilities held for sales

Non-current liability due in 1 year 117,480,000.00 400,480,000.00

Other current liability

Total of current liability 742,371,067.94 1,125,477,129.45

Non-current liabilities：

Long-term loan 4,368,440,000.00 4,393,840,000.00

Bond payable 997,000,000.00 997,000,000.00

Including：preferred stock

Sustainable debt

Long-term payable 52,022,210.11 2,022,210.11

Long-term payable employees’s

remuneration

Special payable

Expected liabilities

Differed income

Differed income tax liability 123,902,697.91 124,150,064.67

Other non-current liabilities

Total non-current liabilities 5,541,364,908.02 5,517,012,274.78

Total of liability 6,283,735,975.96 6,642,489,404.23

38

Owners’ equity

Share capital 1,257,117,748.00 1,257,117,748.00

Other equity instruments


Sustainable debt

Capital reserves 1,534,771,223.07 1,534,771,223.07

Less：Shares in stock

Other comprehensive income 743,405,623.04 630,483,249.92

Special reserves

Surplus reserves 253,056,237.77 253,056,237.77

Common risk provision

Undistributed profit 1,446,891,612.58 1,340,748,017.33

Total of owner’s equity belong to the

parent company5,235,242,444.46 5,016,176,476.09

Minority shareholders’ equity 881,224,947.41 854,840,066.10

Total of owners’ equity 6,116,467,391.87 5,871,016,542.19

Total of liabilities and owners’ equity 12,400,203,367.83 12,513,505,946.42

Legal Representative:Zhu Zhanliang

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Liu Xiaomei

39

2.Parent Company Balance Sheet

In RMB

Items At the end of term Beginning of term

Current asset：

Monetary fund 404,534,875.86 332,632,828.69

Financial assets measured at fair value

with variations accounted into current

income account

Derivative financial assets

Bill receivable

Account receivable

Prepayments 1,000,000.00 1,250,000.00

Interest receivable 347,083.33 387,936.10

Dividend receivable 65,841,578.08

Other account receivable 2,458,730.61 2,536,246.24

Inventories

Assets held for sales

Non-current asset due in 1 year

Other current asset 130,000,000.00 170,603,625.00

Total of current assets 604,182,267.88 507,410,636.03

Non-current assets：

Disposable financial asset 2,059,541,601.57 1,946,619,228.45

Expired investment in possess

Long-term receivable

Long term share equity investment 5,104,401,901.26 5,108,422,809.68

Property investment 3,664,152.93 3,896,259.63

Fixed assets 4,575,949.04 5,463,902.97

Construction in progress

Engineering material

Fixed asset disposal

Production physical assets

Gas & petrol

Intangible assets 1,093,036.70 1,007,811.70

40

R & D petrol

Goodwill

Long-germ expenses to be amortized 4,112,396.30 4,955,719.12

Differed income tax asset

Other non-current asset 78,000,000.00 78,000,000.00

Total of non-current assets 7,255,389,037.80 7,148,365,731.55

Total of assets 7,859,571,305.68 7,655,776,367.58

Current liabilities

Short-term loans

Financial liabilities measured at fair

value with variations accounted into

current income account

Derivative financial liabilities

Bill payable

Account payable

Advance payment

Employees’ wage payable 801,073.74 955,391.47

Tax payable 3,553,117.12 1,640,343.15

Interest payable 52,579,629.01 17,902,360.98

Dividend payable 11,915,654.95 11,148,088.30

Other account payable 5,073,744.36 3,342,843.69

Liabilities held for sales

Non-current liability due in 1 year

Other current liability 231,773,893.28 249,803,653.80

Total of current liability 305,697,112.46 284,792,681.39

Non-current liabilities：

Long-term loan 1,500,000,000.00 1,500,000,000.00

Bond payable 997,000,000.00 997,000,000.00


Sustainable debt

Long-term payable 52,022,210.11 2,022,210.11

Employees’ wage payable

Special payable

Expected liabilities

Differed income

41

Differed income tax liability

Other non-current liabilities

Total of Non-current liabilities 2,549,022,210.11 2,499,022,210.11

Total of liability 2,854,719,322.57 2,783,814,891.50

Owners’ equity

Share capital 1,257,117,748.00 1,257,117,748.00

Other equity instrument


Sustainable debt

Capital reserves 1,534,919,363.82 1,534,919,363.82

Less：Shares in stock

Other comprehensive income 743,405,623.04 630,483,249.92

Special reserves

Surplus reserves 253,056,237.77 253,056,237.77

Undistributed profit 1,216,353,010.48 1,196,384,876.57

Total of owners’ equity 5,004,851,983.11 4,871,961,476.08

Total of liabilities and owners’ equity 7,859,571,305.68 7,655,776,367.58

42

3.Consolidated Profit statement

In RMB

Item Report period Same period of the previous year

I. Income from the key business 724,392,887.59 688,716,891.86

Incl：Business income 724,392,887.59 688,716,891.86

Interest income

Insurance fee earned

Fee and commission received

II. Total business cost 639,850,241.10 674,784,919.23

Incl：Business cost 360,698,877.33 369,614,599.73

Interest expense

Fee and commission paid

Insurance discharge payment

Net claim amount paid

Insurance policy dividend paid

Insurance policy dividend paid

Reinsurance expenses

Business tax and surcharge 25,952,786.32 25,283,803.81

Sales expense

Administrative expense 69,132,844.52 76,476,533.85

Financial expenses 183,994,351.27 205,409,981.84

Asset impairment loss 71,381.66 -2,000,000.00

Add：Gains from change of fir value

（“-”for loss）

Investment gain（“-”for loss） 231,671,735.25 221,691,147.54

Incl: investment gains from affiliates 187,060,105.38 179,155,666.77

Gains from currency exchange（“-”for

loss）

III. Operational profit（“-”for loss） 316,214,381.74 235,623,120.17

Add ：Non-operational income 5,697,722.91 1,404,438.99

Including：Income from disposal of

non-current assets3,578.00 1,500.00

Less：Non business expenses 609,026.04 2,395,791.21

Incl：Loss from disposal of non-current 365,730.09 574,948.41

43

assets

IV.Total profit(“-”for loss) 321,303,078.61 234,631,767.95

Less：Income tax expenses 54,004,634.55 31,692,786.86

V. Net profit 267,298,444.06 202,938,981.09

Net profit attributable to the owners of

parent company231,855,370.05 178,192,944.02

Minority shareholders’ equity 35,443,074.01 24,746,037.07

VI. Other comprehensive income 112,922,373.12 -28,230,593.28

Net of profit of other comprehensive inco

me attributable to owners of the parent co

mpany.

112,922,373.12 -28,230,593.28

（I）Other comprehensive income items

that will not be reclassified into

gains/losses in the subsequent accounting

period

1.Re-measurement of defined benefit pla

ns of changes in net debt or net assets

2.Other comprehensive income under the

equity method investee can not be reclass

ified into profit or loss.

（II）

Other comprehensive income that will be

reclassified into profit or loss.

112,922,373.12 -28,230,593.28

1.Other comprehensive income under the

equity method investee can be reclassifie

d into profit or loss.

2.Gains and losses from changes in fair v

alue available for sale financial assets112,922,373.12 -28,230,593.28

3.Held-to-maturity investments reclassifi

ed to gains and losses of available for sal

e financial assets

4.The effective portion of cash flow hedg

es and losses

5.Translation differences in currency fina

ncial statements

6.Other

7.Net of profit of other comprehensive in

come attributable to Minority

44

shareholders’ equity

VII. Total comprehensive income 380,220,817.18 174,708,387.81

Total comprehensive income attributable

to the owner of the parent company344,777,743.17 149,962,350.74

Total comprehensive income

attributable minority shareholders35,443,074.01 24,746,037.07

VIII. Earnings per share

（I）Basic earnings per share 0.18 0.14

(II)Diluted earnings per share 0.18 0.14

The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0, last period the combined party realized RMB 0.

Legal Representative:Zhu Zhanliang

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Liu Xiaomei

45

4. Profit statement of the Parent Company

In RMB

Items Report period Same period of the previous year

I. Income from the key business 9,327,468.61 22,907,325.49

Incl：Business cost 232,106.70 232,106.70

Business tax and surcharge 573,183.35 1,313,133.51

Sales expense

Administrative expense 37,108,447.40 38,695,469.38

Financial expenses 85,517,724.54 99,941,995.83

Asset impairment loss

Add：Gains from change of fir value

（“-”for loss）

Investment gain（“-”for loss） 259,765,299.53 222,490,995.39

Incl: investment gains from affiliates 187,979,091.58 179,955,514.62

II. Operational profit（“-”for loss） 145,661,306.15 105,215,615.46

Add ：Non-operational income 26,300.00 37,574.60

Including：Income from disposalof non-current assets

Less：Non business expenses 7,697.44 351,800.00

Incl：Loss from disposal ofnon-current assets

7,577.44 351,800.00

III.Total profit(“-”for loss) 145,679,908.71 104,901,390.06

Less：Income tax expenses

IV. Net profit（“-”for net loss） 145,679,908.71 104,901,390.06

V.Net of profit of other comprehensive i

ncome112,922,373.12 -28,230,593.28

（I）Other comprehensive income items

that will not be reclassified into

gains/losses in the subsequent

accounting period

1.Re-measurement of defined benefit pl

ans of changes in net debt or net assets

2.Other comprehensive income under th

e equity method investee can not be recl

assified into profit or loss.

46

（II）

Other comprehensive income that will b

e reclassified into profit or loss.

112,922,373.12 -28,230,593.28

1.Other comprehensive income under th

e equity method investee can be reclassi

fied into profit or loss.

2.Gains and losses from changes in fair

value available for sale financial assets112,922,373.12 -28,230,593.28

3.Held-to-maturity investments reclassif

ied to gains and losses of available for s

ale financial assets

4.The effective portion of cash flow hed

ges and losses

5.Translation differences in currency fin

ancial statements

6.Other

VI. Total comprehensive income 258,602,281.83 76,670,796.78

VII. Earnings per share：

（I）Basic earnings per share

(II)Diluted earnings per share

47

5. Consolidated Cash flow statement

In RMB

Items Report period Same period of the previous year

I.Cash flows from operating activities

Cash received from sales of goods or

rending of services672,259,773.36 620,179,322.98

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

Net increase of trade financial asset

disposal

Cash received as interest, processing fee

and commission

Net increase of inter-bank fund received

Net increase of repurchasing business

Tax returned

Other cash received from business

operation43,075,421.25 89,206,337.64

Sub-total of cash inflow 715,335,194.61 709,385,660.62

Cash paid for purchasing of

merchandise and services37,367,318.01 45,413,383.90

Net increase of client trade and advance

Net increase of savings n central bank

and brother company

Cash paid for original contract claim

Cash paid for interest, processing fee

and commission

Cash paid for policy dividend

48

Cash paid to staffs or paid for staffs 96,873,332.93 102,801,679.64

Taxes paid 44,849,265.73 33,837,595.01

Other cash paid for business activities 18,163,647.19 26,391,900.83

Sub-total of cash outflow from business

activities197,253,563.86 208,444,559.38

Cash flow generated by business

operation, net518,081,630.75 500,941,101.24

II.Cash flow generated by investing

Cash received from investment

retrieving40,549,909.00

Cash received as investment gains 197,998,345.87 52,650,682.13

Net cash retrieved from disposal of

fixed assets, intangible assets, and other

long-term assets

3,578.00 11,180.00

Net cash received from disposal of

subsidiaries or other operational units

Other investment-related cash received 2,000,000.00

Sub-total of cash inflow due to

investment activities238,551,832.87 54,661,862.13

Cash paid for construction of

fixed assets, intangible assets

and other long-term assets

79,464,279.11 156,356,280.32

Cash paid as investment 71,036,956.00

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


Net cash flow generated by investment 159,087,553.76 -172,731,374.19

III.Cash flow generated by financing

Cash received as investment

Incl: Cash received as investment from

minor shareholders

Cash received as loans 50,000,000.00 60,000,000.00

Cash received from bond placing

49

Other financing –related ash received

Sub-total of cash inflow from financing

activities50,000,000.00 60,000,000.00

Cash to repay debts 433,400,000.00 166,085,000.00

Cash paid as dividend, profit, or

interests272,155,197.00 242,293,336.78

Incl: Dividend and profit paid by

subsidiaries to minor shareholders24,591,472.01

Other cash paid for financing activities 3,000,000.00 3,000,000.00


financing activities708,555,197.00 411,378,336.78

Net cash flow generated by financing -658,555,197.00 -351,378,336.78

IV. Influence of exchange rate

alternation on cash and cash equivalents-500,338.15 -277,557.39

V.Net increase of cash and cash

equivalents18,113,649.36 -23,446,167.12

Add: balance of cash and cash

equivalents at the beginning of term561,800,403.72 976,468,685.82

VI ..Balance of cash and cash

equivalents at the end of term579,914,053.08 953,022,518.70

50

6. Cash Flow Statement of the Parent Company

In RMB

Items Amount in this period Amount in last period

I.Cash flows from operating activities

Cash received from sales of goods or

rending of services2,941,717.07 2,281,772.56

Tax returned

Other cash received from business

operation106,775,060.83 10,312,629.10

Sub-total of cash inflow 109,716,777.90 12,594,401.66

Cash paid for purchasing of

merchandise and services

Cash paid to staffs or paid for staffs 24,072,836.07 24,746,877.91

Taxes paid 743,853.55 1,807,778.31

Other cash paid for business activities 133,568,926.05 185,272,667.71

Sub-total of cash outflow from business

activities158,385,615.67 211,827,323.93

Cash flow generated by business

operation, net-48,668,837.77 -199,232,922.27

II.Cash flow generated by investing

Cash received from investment

retrieving40,549,909.00

Cash received as investment gains 197,998,345.87 126,425,098.17

Net cash retrieved from disposal of

fixed assets, intangible assets, and other

long-term assets

4,500.00

Net cash received from disposal of

subsidiaries or other operational units

Other investment-related cash received 6,323,061.11 515,824,040.28

Sub-total of cash inflow due to


Cash paid for construction of

fixed assets, intangible assets

and other long-term assets

294,728.41 1,387,080.63

Cash paid as investment 71,036,956.00

51

Net cash received from subsidiaries and

other operational units

Other cash paid for investment

activities375,000,000.00


investment activities294,728.41 447,424,036.63

Net cash flow generated by investment 244,576,587.57 194,829,601.82

III.Cash flow generated by financing

Cash received as investment

Cash received as loans 50,000,000.00

Cash received from bond placing

Other financing –related ash received

Sub-total of cash inflow from

financing activities50,000,000.00

Cash to repay debts

Cash paid as dividend, profit, or

interests170,505,364.48 110,604,327.83

Other cash paid for financing activities 3,000,000.00 3,000,000.00


financing activities173,505,364.48 113,604,327.83

Net cash flow generated by financing -123,505,364.48 -113,604,327.83

IV. Influence of exchange rate

alternation on cash and cash equivalents-500,338.15 -277,557.39

V.Net increase of cash and cash

equivalents71,902,047.17 -118,285,205.67

Add: balance of cash and cash

equivalents at the beginning of term332,632,828.69 782,174,175.59

VI .Balance of cash and cash

equivalents at the end of term404,534,875.86 663,888,969.92

52

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

Items


Owner’s equity Attributable to the Parent Company

Minor

shareholders’

equity

Total of owners’

equityShare Capital

Other Equity instrusment

Capital reserves

Less:

Shares

in stock

Other

Comprehensive

Income

Specializ

ed

reserve

Surplus reserves

Common

risk

provision

Attributable

profitPrefer

red

stock

Sustainable

debt

Other

I.Balance at the

end of last year1,257,117,748.00

1,534,771,223.0

7630,483,249.92 253,056,237.77 1,340,748,017.33 854,840,066.10 5,871,016,542.19

Add: Change of

accounting

policy

Correcting of

previous errors

Merger of

entities under

common control

Other

II.Balance at the

beginning of1,257,117,748.00

1,534,771,223.0

7630,483,249.92 253,056,237.77 1,340,748,017.33 854,840,066.10 5,871,016,542.19

53

current year

III.Changed in

the current year112,922,373.12 106,143,595.25 26,384,881.31 245,450,849.68

（1）Total

comprehensive

income

112,922,373.12 231,855,370.05 35,443,074.01 380,220,817.18

（II）Investment

or decreasing of

capital by

owners

1．Ordinary Shar

es invested by ha

reholders

2．Holders of oth

er equity instrum

ents invested cap

ital

3．Amount of

shares paid and

accounted as

owners’ equity

4．Other

（III）Profit

allotment-125,711,774.80 -9,058,192.70 -134,769,967.50

54

1.Providing of

surplus reserves

2.Providing of

common risk

provisions

3．Allotment to

the owners (or

shareholders)

-125,711,774.80 -9,058,192.70 -134,769,967.50

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.

55

4. Other

(V). Special

reserves

1. Provided this

year

2．Used this term

（VI）Other

IV. Balance at

the end of this

term

1,257,117,748.001,534,771,223.0

7743,405,623.04 253,056,237.77 1,446,891,612.58 881,224,947.41 6,116,467,391.87

56

Amount in last year

In RMB

Items

Amount in last year

Owner’s equity Attributable to the Parent Company

Minor

shareholders’

equity

Total of owners’

equityShare Capital

Other Equity

instrusment

Capital reserves

Less:

Shares

in stock

Other

Comprehensive

Income

Specialize

d reserveSurplus reserves

Common

risk

provision

Attributable profitPrefer

red

stock

Sustai

nable

debt

Other

I.Balance at the

end of last year1,257,117,748.00 1,534,758,715.57 108,217,274.24 233,750,778.75 1,104,154,555.90 814,745,363.37 5,052,744,435.83

Add: Change of

accounting

policy

Correcting of

previous errors

Merger of

entities under

common control

Other

II.Balance at the 1,257,117,748.00 1,534,758,715.57 108,217,274.24 233,750,778.75 1,104,154,555.90 814,745,363.37 5,052,744,435.83

57

beginning of

current year

III.Changed in

the current year12,507.50 522,265,975.68 19,305,459.02 236,593,461.43 40,094,702.73 818,272,106.36

（1）Total

comprehensive

income

522,265,975.68 318,754,807.85 40,094,702.73 881,115,486.26

（II）Investment

or decreasing of

capital by

owners

12,507.50 12,507.50

1．Ordinary Shar

es invested by h

areholders

2．Holders of ot

her equity instru

ments invested c

apital

3．Allotment to

the owners (or

shareholders)

4．Other 12,507.50 12,507.50

(IV) Internal

transferring of19,305,459.02 -82,161,346.42 -62,855,887.40

58

owners’ equity

1. Capitalizing

of capital

reserves (or to

capital shares)

19,305,459.02 -19,305,459.02

2. Capitalizing

of surplus

reserves (or to

capital shares)

3．Making up

losses by

surplus reserves.

-62,855,887.40 -62,855,887.40

4. Other

(VI )Special

reserves

1. Provided this

year

2．Used this

term

（VII）Other

IV. Balance at

the end of this

term

59

(V) Special

reserves

1. Provided this

year

2．Used this

term

（VI）Other

IV. Balance at

the end of this

term

1,257,117,748.00 1,534,771,223.07 630,483,249.92 253,056,237.77 1,340,748,017.33 854,840,066.10 5,871,016,542.19

60

8.Statement of change in owner’s Equity of the Parent Company


In RMB

Items


Share Capital


Capital reservesLess: Shares

in stock

Other

Comprehensive

Income

Surplus

reserves

Common risk

provision

Attributable

profit

Total of owners’

equityPreferred

stockSustainable

debt

Other

I.Balance at the end of

last year1,257,117,748.00 1,534,919,363.82 630,483,249.92 253,056,237.77 1,196,384,876.57 4,871,961,476.08

Add: Change of

accounting policy

Correcting of previous

errors

Other

II.Balance at the

beginning of current

year

1,257,117,748.00 1,534,919,363.82 630,483,249.92 253,056,237.77 1,196,384,876.57 4,871,961,476.08

III.Changed in the

current year112,922,373.12 19,968,133.91 132,890,507.03

61

（I）Total

comprehensive income112,922,373.12 145,679,908.71 258,602,281.83

(II) Investment or

decreasing of capital by

owners

1．Ordinary Shares inve

sted by hareholders

2．Holders of other equi

ty instruments invested

capital

3.Amount of shares

paid and accounted as

owners’ equity

4．Other

（III）Profit allotment -125,711,774.80 -125,711,774.80

1.Providing of surplus

reserves

2．Allotment to the

owners (or

shareholders)

-125,711,774.80 -125,711,774.80

3．Other

(IV)Internal

transferring of owners’

62

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. Other

(V) Special reserves

1. Provided this year

2．Used this term

（VI）Other

IV. Balance at the end

of this term1,257,117,748.00 1,534,919,363.82 743,405,623.04 253,056,237.77 1,216,353,010.48 5,004,851,983.11

63

Amount in last year

In RMB

Items

Amount in last year

Share Capital


Capital reserves

Less:

Shares in

stock

Other

Comprehensive

Income

Surplus

reserves

Common risk

provisionAttributable profit

Total of owners’

equityPreferred

stockSustainable

debt

Other

I.Balance at the end of

last year1,257,117,748.00 1,534,906,856.32 108,217,274.24 233,750,778.75 1,085,491,632.83 4,219,484,290.14

Add: Change of

accounting policy

Correcting of previous

errors

Other

II.Balance at the

beginning of current

year

1,257,117,748.00 1,534,906,856.32 108,217,274.24 233,750,778.75 1,085,491,632.83 4,219,484,290.14

III.Changed in the

current year12,507.50 522,265,975.68 19,305,459.02 110,893,243.74 652,477,185.94

（I）Total

comprehensive income522,265,975.68 193,054,590.16 715,320,565.84

(II) Investment or 12,507.50 12,507.50

64

decreasing of capital

by owners

1．Ordinary Shares inv

ested by hareholders

2．Holders of other equ

ity instruments investe

d capital

3.Amount of shares

paid and accounted as

owners’ equity

4．Other 12,507.50 12,507.50

（III）Profit allotment 19,305,459.02 -82,161,346.42 -62,855,887.40

1.Providing of surplus

reserves19,305,459.02 -19,305,459.02

2．Allotment to the

owners (or

shareholders)

-62,855,887.40 -62,855,887.40

3．Other

(IV)Internal

transferring of owners’

equity

1. Capitalizing of

capital reserves (or to

65

capital shares)

2. Capitalizing of

surplus reserves (or to

capital shares)

3．Making up losses

by surplus reserves.

4. Other

(V) Special reserves

1. Provided this year

2．Used this term

（VI）Other

IV. Balance at the end

of this term1,257,117,748.00 1,534,919,363.82 630,483,249.92 253,056,237.77 1,196,384,876.57 4,871,961,476.08

66

Notes to financial statements

January -June 2015

I.Company Prof ile

(1).History

1.The Company was established in February 1993, which was originally named as Guangdong FokaiExpressway Co., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial ExpresswayDevelopment Co., Ltd. after reorganization pursuant to the approval of the Office of Joint ExaminationGroup of Experimental Units of Share Holding System with YLSB (1993)No. 68 document. The sharecapital structure after reorganization is as follows:

Composition of state-owned shares: The appraised net value of state-owned assets of GuangdongJiujiang Bridge Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by GuangdongState-owned Asset Management Dept., i.e.,RMB 418.2136 million, was converted into 155.025 millionshares. Guangdong Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 millionshares. 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 isRMB 307.8375.

2.Pursuant to the approval of Guangdong Economic System Reform Committee and GuangdongSecurities Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders ofnon-state-owned legal person shares transferred 20 million non-state-owned legal person shares toMalaysia Yibao Engineering Co., Ltd. in June 1996.

3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24approval 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 sharebeing RMB 1 during June to July 1996.

4.Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ sRepublic of China with (1996) WJMZYHZ No. 606 document, the Company was approved to be aforeign-invested joint stock company limited.

5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in thefollowing manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capitalcommon 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 ofRMB 5.41 in term of “payable in full on application, pro-rate placing and subject to refund” with thepar 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 andpursuant 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 sharesof 764.256249 million shares at the price of RMB 11 per Right.73,822,250 ordinary shares were actuallyplaced to all

8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Provincewith YBH (2000) No. 574 document, the state-owned shares were transferred to GuangdongCommunication Group Co., Ltd. (Group Co.) for holding and management without compensation.

67

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 listedon February 5, 2001.As of June 30, 2015, the quantity of the shares subject to sale restriction held bysenior executives is 161,453.

10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Companycapitalized capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capitalas 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 documentZheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed inShenzhen Stock

12. On December 21, 2005, the Company's plan for share holding structure reform was voted through atthe shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRCissued “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 ShenzhenStock Exchange, the abbreviation ID of the Company’s A shares was restored from“G-Expressway”“Expressway A”

(2)Organization structure and the actual controller of the Company

As of June 30, 2015，Registration capital :RMB1,257,117,748，Legal representative：Zhu Zhanliang，Registration place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong Plaza, No.32,Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou， The company has set up:Investment Development Dept, Security Affairs Department, Management Department, FinancialManagement Department, Base construction Department, Audit and Supervise Department, AffairsDepartment, Personnel Department , Party Work Department, Law affairs Department and Labour unionetc.

Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legalrepresentative: Li Jing. Date of establishment: June 23, 2000. As of June 30, 2015,Registered capital:RMB 26.8 billion. It is a solely state-owned limited company. Business scope： equity management,organization of asset reorganization and optimized allocation, raising funds by means includingmortgage, transfer of property rights and joint stock system transformation, project investment,operation and management, traffic infrastructure construction, highway and railway project operationand relevant industries, technological development, application, consultation and services, highway andrailway passenger and cargo transport, ship industry, relevant overseas businesses; The value-addedtelecom business.

（3）The company’s main business and share ,Holding company

The company operated the construction of the highway construction, grading roads, bridges;Management fees and maintenance of roads, bridges, and car rescue, maintenance, cleaning, concurrently with the company's business supporting motor transport, warehousing operations.

The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway,investment in technological industries and provision of relevant consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangdong Maozhan Expressway Co.,Ltd, Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Co., Ltd.,Guangdong Jiangzhong Expressway Co., Ltd.,Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangdong Guangle ExpresswayCo.,Ltd. and the Company’s subsidiary Fokai Expressway Co.,Ltd. shares in Asia Kitchen & Bath CityCo., Ltd.

（4）Scope of consolidated financial statements

The company's 2015(Jan-June) annual consolidated subsidiaries of total 3 companies, the scope of conso

68

lidated financial statements did not change compared with the previous period,Refer to Notes VI, Notesof financial statements ,Change of consolidation scope and Notes VII, Notes of financial statements,Equity in other entities for more details.

（5）Approval of the financial statements reported

The financial statements have been authorized for issuance by the Board of Directors of the Group onAugust 3,2015.

II. Basis for the preparation of financial statements

1. Basis for the preparation of financial statements

The company prepares the financial statements on the basis of a continuous operation, the actualtransactions, “Accounting Standards for Enterprises – Basic Standards”, other accounting standards& related regulations. Furthermore, all the materials of financial statements of the company meet therelevant disclosure requirements of financial statements and notes on the “Editing and Reporting RulesRegarding Information Disclosure for Companies Publicly Issuing Securities No. 15 – GeneralRegulations for Financial Reporting (revised in 2014) by China Securities Regulatory Commission.

2.Continuation

There will be no such events or situations in the 12 months from the end of the reporting period thatwill cause material doubts as to the continuation capability of the Company.

III. Important accounting policies and estimations

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the requirements of corporateaccounting standards. They truly and completely reflect the financial situations, operating results, equitychanges and cash flow, and other relevant information of the company.

2.Fiscal Year

The Company adopts the Gregorian calendar year commencing on January 1 and ending on December31 as the fiscal year.

3.Operating cycle

An operating cycle for the Company is 12 months, which is also the classification critera for theliquidity of its assets and liabilities.

4.Standard currency for bookkeeping

The Company takes RMB as the standard currency for bookkeeping.

5.Accountings for Business Combinations under the Same Control & Business Combinations not underthe Same Control

1.Business Combinations under the Same Control

The assets and liabilities acquired by the company in the business combination shall be measured as perthe obtained book value of owner’ s equity of the combined party in the consolidated financialstatements.As for the balance between the carrying amount of the net assets obtained by the combiningparty & the carrying amount of the consideration paid by it (or the total par value of the shares issued),the additional paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to beoffset, the retained earnings shall be adjusted.

The direct costs for the business combination of the company, including the expenses for audit,assessment and legal services, shall be recorded into the profits & losses at the current period.

The handling fees, commissions & other expenses for the issuance of equity securities for the business

69

combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, theretained earnings shall be offset.

Where the accounting policies adopted by the combined parties are different from those adopted by thecompany, the company shall adjust them on the combining date according to the accounting policy itadopts, and shall, pursuant to the Accounting Standards for Enterprises, recognize them on the basis ofsuch adjustments.

2. Business Combinations not under the Same Control

The assets paid as the consideration for the business combination & the liabilities assumed on theacquisition date shall be measured in accordance with the fair value. The difference between the fairvalue & its carrying amount shall be recorded into the profits & losses at the current period.

The company will distribute the combination costs on the acquisition date.

The company shall recognize the positive balance between the combination costs & the fair value of theidentifiable net assets it obtains from the acquire as Goodwill while it shall record the negative balancebetween the combination costs & the fair value of the identifiable net assets it obtains from the acquireinto the profits & losses of the current period.

As for the assets other than intangible assets acquired from the acquire in a business combination (notlimited to the assets which have been recognized by the acquire), if the economic benefits brought bythem are likely to flow into the enterprise and their fair values can be measured reliably, they shall beseparately recognized and measured in light of their fair values. As for any intangible asset acquired in acombination, if its fair value can be measured reliably, it shall be separately recognized as an intangibleasset and shall measured in light of its fair value. As for the liabilities other than contingent liabilitiesacquired from the acquire, if the performances of the relevant obligations are likely to result in anyout-flow of economic benefits from the enterprise, and their fair values can be measured reliably, theyshall be separately recognized and measured in light of their fair values. As for the contingent liabilitiesof the acquire obtained in a combination, if their fair values can be measured reliably, they shall beseparately recognized as liabilities and shall be measured in light of their fair values.

（6）.Methods for Preparing the Consolidated Financial Statements

The scope of the consolidated financial statements will be recognized on the basis of controlling. All thesubsidiaries will be included into the consolidated financial statements.

The accounting policies & accounting periods adopted by all the subsidiaries that have been includedinto the scope of the consolidated financial statements should be consistent with those adopted by thecompany. If the accounting policies & accounting periods adopted by the subsidiaries are different fromthose adopted by the company, the company shall make necessary adjustments according to theaccounting policies & accounting periods it adopts when preparing the consolidated financialstatements.

After adjusting the long-term equity investments on its subsidiaries according to the equity method, thecompany shall prepare the consolidated financial statements based on the financial statements of thecompany & its subsidiaries, and other related documents.

The influences of the internal transactions between the company & its subsidiaries, and its subsidiariesthemselves on the consolidated balance sheet, consolidated profit statement, consolidated cash flowstatement & consolidated statement of changes in owner’s equity will be counteracted at the preparationof the consolidated financial statements.

The portion of a subsidiary’ s equity that is not attributable to the parent is treated as minorityshareholders’ interest and presented as “minority interest” in the consolidated balance sheet withinowners’equity. The portion of net profits or losses of subsidiaries for the period attributable to minorityinterest is presented in the consolidated income statement below the“net profit”line item as“minorityinterest”. In the consolidated financial statements, when the amount of loss for the period attributable to

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the minority shareholders of a subsidiary exceeds the minority shareholders’ portion of the openingbalance of owners’equity of the subsidiary, the excess amount should be still allocated against minorityinterest.

In the report period, If the subsidiary is added through the business combination under the same control,the beginning balance of the consolidated balance sheet shall be adjusted. The incomes, expenses &profits of the subsidiary incurred from the beginning of the current period to the end of the reportingperiod shall be included into the consolidated profit statement. The cash flow from the beginning of thecurrent period to the end of the reporting period shall be included into the consolidated cash flowstatement.

For purchase of minority interests held by the minority shareholders of a subsidiary, when preparing theconsolidated financial statements, the difference between the long-term equity investment newly gainedby buying minority interests and the portion of net assets consistently calculated from the acquisitiondate (or the consolidation date) pursuant to newly added shareholding percentage entitled by thesubsidiary should be adjusted to the owners’ equity (the capital reserve). If the capital reserve is notsufficient to absorb the difference, any excess is adjusted against retained earnings.

In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurredfrom the beginning of the subsidiary to the disposal date shall be included into the consolidated profitstatement. The cash flow from the beginning of the subsidiary to the disposal date shall be included intothe consolidated cash flow statement.

（7）Joint venture arrangements classification and Co-operation accounting treatment

⑴A joint arrangement refers to an arrangemnt jointly controlled by two participants or above.，the jointventure arrangements include co-operation and joint ventures.

(2)When the joint venture company for joint operations, confirm the following items and share commonbusiness interests related to:

（1）Confirm individual assets and common assets held based on shareholdings;

（2）Confirm individual liabilities and shared liabilities held based on shareholdings;

（3）Confirm the income from the sales revenue of co-operate business output

（4）Confirm the income from the sales of the co-operate business output based on shareholdings;

（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.

⑶When a company is a joint ventures, joint venture investment will be recognized as long-term equity investments and long-term equity investments are accounted for in accordance with the method of the Notes to Financial Statements.

（8）Recognition Standard of Cash & Cash Equivalents

The company recognizes its cash in vault & the deposits that are ready for payment at any time as cashwhen preparing the cash flow statement.which are featured with short term (expire within 3 monthssince purchased), high liquidity, easy to convert to know cash, low in risk of value change, could berecognized as cash equivalents. Equity investment are not recognized as cash equivalents.

（9）Foreign Currency Transaction

1.Foreign Currency Transaction

For the company with non-functional currency business, the middle rate of the market exchange ratepublished by People’ s Bank of China on the date of occurrence of business are recorded as thefunctional currency, and the balances of foreign currency shall be adjusted by the end of the monthaccording to the middle rate of the market exchange rate published by People’s Bank of China at theend of period. The differences between the recording currency amount converted by the exchange rate at

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the end of period and the carrying currency amount are as “Finance Costs – Exchange Gains andLosses” and recorded into the current profits or losses. The exchange gains and losses related toborrowings on the fixed assets shall be made treatment according to the principles of borrowing costscapitalization.

2.Conversion of Foreign Financial statement

If overseas subsidiaries, cooperative enterprises, joint ventures, branches of the company adopt thedifferent functional recording currency and record the overseas business of the company into thefinancial statements through the consolidated statements and the accounting by the equity method, theoverseas financial statements shall be translated as the recording functional currency. Before thetranslation, the company shall adjust the accounting period and policy of overseas business in order tomake the consistent adjustment, and translate the overseas financial statements according to the financialstatements of the preparation of corresponding currency after the accounting policy and period adjustedand as per the following methods:

For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date isadopted as the translation exchange rate. For the owner’ s equity, the shot exchange rate on thetransaction date is adopted as the translation exchange rate, with the exception of “ undistributedprofits”.

The incomes and expenses in the income statement shall be translated at the spot exchange rate or theapproximate exchange rate on the transaction date.

The translation gap of financial statement of foreign currency shall be listed under the owner’s equity inthe consolidated balance sheet in the preparation of the consolidated financial statements.

（10）Financial tools

1. Categories of financial Tools

The Company divides the financial assets into four categories: financial assets measured at fair valueand their variations are recognized as current gain/loss, including trade financial assets or financialliabilities and recognized directly as financial assets measured at fair value and their variations arerecognized as current gain/loss; Investment hold till expiration; loans and account receivable; saleablefinancial assets .The company divides the financial liabilities into two categories: financial liabilitiesmeasured at fair value and their variations are recognized as current gain/loss; other financial liabilities.

2. Recognition and measurement of financial tools

(1) Financial assets and liabilities measured at fair value and their variations are recognized as currentgain/loss

The fair value (after deducting of announced but not distributed cash dividend or due but not obtainedbond interests) is recognized as initial amount when obtained.

Interests or cash dividends during the period of holding are recognized as investment gains. The fairvalue will be adjusted and accounted as current gain/loss.

When disposed, the differences between fair value and initial amount are recognized as investment gains,and thus adjust the gain/loss of fair value.

(2) Investment hold till expiration

The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses isrecognized as initial amount when obtained.

Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adoptedwhen the difference between the actual rate and face rate is minor) during the period of holding, andaccounted as investment gains. Actual rate is recognized when obtained, and is not changed in thepredictable holding period or applicable shorter period.

When disposed, the difference between the obtained price and book value is accounted as investment

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gains.

If the company sells or reclassifies large-amount due investments before the expired date (large amountrefers to comparing with the amount before the selling or reclassifying the investments), the companywill reclassify the rest of the investments as financial assets for sale, and in the current accounting periodor within two complete accounting years, no financial assets will be classified as holding due assets,except for the following situations: the sale date or reclassification date is close to the expired date of theinvestment (such as three months before the expired), and the change of interest rate has no significantinfluence on the fair value of the investment; after all the initial principal is mostly recovered accordingto periodic payments or repay in advance regulated in the contract, the rest part will be sold orreclassified; the sale and reclassification is caused by the independent events which are uncontrollableand unexpected and will not happen any more.(3) Account receivable

The receivable debts of selling goods or providing services, and the credits of other company hold by thecompany not including the debt which has price in active market, including accounts receivable, notesreceivable, prepaid accounts, other receivables, long-term receivables, etc. The contract or agreementprice charging from purchaser should be taken as the initial confirmation amount; if it has the nature offinancing, it should be confirmed according its current value.

When retrieved or disposed of, the difference between the actual received amount and the book value isaccounted as current gain/loss.

(4) Saleable financial assets

The fair value (after deducting of announced but not distributed cash dividend or due but not obtainedbond interests) plus the related trade expenses is recognized as initial amount when obtained.

Interest or cash dividend occurred during the period of holding is recognized as investment gains.Change of fair value is accounted as capital reserves (other capital reserves) at the end of term.

When disposed, the difference between the obtained price and book value is accounted as investmentgains. Meanwhile, the corresponding part of accumulated change of fair value accounted as owners’equity is transferred into investment gain/loss.

(5) Other financial liabilities

Other financial liabilities are recognized initially at the sum of fair value and related trade expenses.Successive measurement will be on the basis of amortized costs.

3. Recognition and measurement basis of financial asset transposition

When financial asset transposition occurred, the recognition of this particular financial asset isterminated if almost all risks and rewards attached to the asset have been transferred to the acceptor. Ifretain all the risks and rewards of ownership of financial assets, the financial assets can be confirmed.When determine whether the transfer of financial assets meet the conditions of confirmation of theabove financial assets, the principle of substance being more important than form should be adopted.The transfer of financial assets can be divided into overall transfer and part transfer of financial assets. Ifthe transfer of financial assets meet the conditions of terminating confirmation, the following thedifference of the two amounts will be included in the current profit and loss:

(1) Book value of the financial asset to be transposed;

(2) The sum of price received due to the transposition, and the accumulation of change in fair valueoriginally accounted as owners’ equity (when the asset to be transposed is saleable financial asset).

If part transfer of financial assets meet the conditions of terminating confirmation, the book value of thetransferred financial assts, the difference between the confirmed part and the unconfirmed part (in thiscase, the service assets retained should be deemed as the part of unconfirmed financial assets), should beamortized in accordance with their relative fair value, and the difference between the following twoamount should be included current profit and loss:① Book value of the confirmed part;

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②All fair values of financial assets and financial liabilities are recognized with reference to the price inthe active market.

If the transfer of financial assets does not meet the conditions of terminating confirmation, the financialassets should be confirmed again, the prices received will recognized as financial liabilities.4.The conditions to stopping the financial liabilities

The obligation of financial liabilities are already cancelled which should be stopped confirming thefinancial liability or the part of it. Our company could stop confirming the currently financial liabilityand begin to confirm the newly financial liability if the loaner made an agreement that they wouldassume the new way of financial liability which replace the current one, and make sure the newlyfinancial liability is totally different from the old one in contract with our company.

Stop admitting the financial liability or a part of it, and at mean time we could admit the newly financialliability which is in new insertions of contract as the newly financial liability if the current financialliability has been revised.

Stop admitting the balance of value of financial liability and consideration (Including the roll-out ofnon-cash assets or financial liabilities) which could be consider as current profits and losses.

Stop and continue admitting a part of value, and distribute the value of financial liability, if our companyrepurchased the part of financial liability. And the balance of value of which distributed to the part ofstopping admitting and paid (Including the roll-out of non-cash assets or financial liabilities) whichcould be consider as current profits and losses.

5.Recognition basis of financial assets and financial liabilities

All fair values of financial assets and financial liabilities are recognized with reference to the price in theactive market（Using valuation technique, etc）.

6. Impairment provision for financial assets①Impairment provision for financial assets for sale:If the fair value of financial assets for sale greatly drops at the end of the period, or after considering allthe relevant factors and expecting decrease trend is non-temporary, the impairment should be confirmed,and the accumulative loss formed by the decrease of fair value of owner’s equity originally includedshould be transferred out altogether and confirmed as impairment loss.②Holding the impairment provision of expired investments:

The measurement of holding the impairment provision of expired investment will be according to themethod of the measurement of impairment provision for receivables.

（11）Recognition criteria and withdrawal methods for bad debts provision of accounts receivable

(1)Accounts receivable with material specific amount and specific provisioned bad bebt preparation.

①Judgment criteria or amount standard of material specific amount or amount criterial：The accountsreceivable whose single amount is over RMB 1 million & accounts for over 10% of the accountsreceivable amount.

②Provision method with material specific amount and provision of specific bad debt preparation：Conduct the devalue test separately. Set up the bad debt reserve according to the shortfall of the presentvalue of expected future cash flows against its carrying amount and record it into the profits & losses atthe current period.

⑵Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics

①The adopting aging analysis method：The accounts receivable whose single amount is over RMB 1million & accounts for over 10% of the accounts receivable amount. the accounts receivable under 5years of age which are not significant without any business connections any more.

②In the Groups, adopting aging analysis method to withdraw bad debt provision

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AgeWithdrawal proportion for accounts

receivable

Withdrawal proportion for other

accounts receivable(%)

Within 1 year (including 1 year) 0 0

1－2 years 10 10

2－3 years 30 30

3－4 years 50 50

4－5 years 90 90

Over 5 years 100 100

When the provision for bad debts is summed and drew by age analysis, it will be counted with thebalance of the C/A between the subsidiary in the scope of consolidated statements which has beendeducted by the ending receivables.

B. Other counting methods for bad-debt provisions:

Launching impairment test separately and summing and drawing the the provision for bad debtsaccording to the gap whose expected future value of cash flow is lower than its book value to count intocurrent profit and loss

The determining basis and methods of counting for for bad-debt provisions for the no significant amountbut counted separately receivables.

①The determining basis of bad-debt provisions for the no significant amount but separately countedreceivables:The accounts receivable under 5 years of age which are not significant without any businessconnections any more.

②Recognition Standard and Counting & Drawing Method of Bad Debt Reserves for the AccountsReceivable Whose Single Amount Is not Significant：Conduct the devalue test separately. Set up the baddebt reserve according to the shortfall of the present value of expected future cash flows against itscarrying amount and record it into the profits & losses at the current period

（12）Inventory

1.Investories class: The company’ s stocks can be classified as: raw materials, inventory goods,low-value consumables & other materials, etc.

2. Valuation method of inventory issued :The company calculates the prices of its inventories accordingto the weighted averages method or the first-in first-out method.

3. Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method ofObsolete Inventory Reserves:After taking stock at the end of the period,

4. Inventory System:Adopts the Perpetual Inventory System

（13）Divided as assets held for sale

In the presence of the following conditions are satisfied when non-current assets or a part of the company is classified as held for sale:

(1) The components should be immediately sold under the current condition only according to the usualterms of the parts sold.

(2) The enterprise has made resolution for the disposal of the components, the approval of shareholders’

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meeting or relevant authority agency if the shareholder’s approval is requested by the rules.

(3) The enterprise has signed the irrevocable transfer agreement with the transferee.

(4) The transfer shall be completed within one year.

For the non-current assets held for sale (excluding the financial assets and the deferred income taxassets), the less amount after the book value and fair value respectively minus the disposal costs shall bepresented as Divided as assets held for sale assets. If the amount of the fair value minus the disposalcosts is less than that of the original book value, the assets impairment loss shall be recognized.

（14）Long-term equity investment

The Classification of Long-term Equity Investments

The long-term equity investments of the company should include the investments in the subsidiaries andthe investments in cooperative enterprises and joint ventures.

(2) The Recognition of Investment Cost

For the business combination under common control and the combining party paying in cash,transferring non-monetary assets, bearing debts or issuing the equity securities as the consideration, theinitial investment cost shall be recognized according to the shares of the book value in the consolidatedfinancial statement of the ultimate controlling party that acquired by the combined party on thecombination date. The capital reserves shall be adjusted for the difference between the initial investmentcost of long-term equity investment and the book value of the paid cash, the transferred non-monetaryassets and the borne debts. The retained earnings shall be adjusted if the capital reserves are insufficientto offset.

For the long-term equity investment after the business combination under common control realizedstep-by-step through multiple transactions, the shares of the book value of the owner’s equity of thecombined party shall be as the initial investment cost in the individual financial statements and theconsolidated financial statements as per the shareholding proportion. The capital reserves shall beadjusted for the balance between the sums of the book value of the equity investment of the combinedparty held on the combination date and the new investment cost increased on the combination dateminus the initial investment cost of long-term equity investment. The retained earnings shall be adjustedif the capital reserves are insufficient to offset.

② For the business combination under non-common control, the initial investment cost shall berecognized according to the fair value of the merger consideration paid on the purchase date. For thelong-term equity investment after the business combination under non-common control realizedstep-by-step through multiple transactions, the relevant accounting treatment should be respectivelyconducted for the individual financial statement and the consolidated financial statements: 1) In theindividual financial statements, the sum of the book value of equity investment from the purchased partyheld before the purchase date and the new investment cost at the purchase date shall be as the initialinvestment cost of the investment. Other comprehensive incomes related to the equity of the purchasedparty held before the purchase date shall be transferred into the current investment incomes in thedisposal of the investment. 2) In the consolidated financial statements, the equity of the purchased partyheld before the purchase date should be measured again according to the fair value of the equity on thepurchase date, and the gap of the fair value and the book value should be recorded into the currentinvestment incomes. Other comprehensive incomes related to the equity of the purchased party heldbefore the purchase date shall be transferred into the current investment incomes on the purchase date.

③With the exception of the business combination:

The long-term equity investment acquired by the payment in cash should be as the investment cost asper the actual purchase payment. The investment costs include fees, taxes and other necessary expensesdirectly related to the achieved long-term equity investment.

The long-term equity investment acquired by the issuance of equity securities should be as theinvestment cost as per the fair value of the issued equity securities.

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The long-term equity investment acquired by the non-monetary assets exchange (the exchange with thecommercial substance) should be as the investment cost as per the fair value of the investment and thepayable taxes.

For the long-term equity investment acquired by the debt reorganization, the creditors shall recognizethe fair value of the enjoyed shares as the investment of the debtors.

(3) Subsequent Measurement and Recognition Method of Profit and Loss

The cost method shall be adopted to account the long-term equity investment controlled by the investedparty and the equity method shall be adopted to account the long-term equity investment with jointcontrol or significant influence.

(4) Recognition Criteria for the Invested Party with Joint Control or Significant Influence

The joint control on the economic activity appointed as per the contract shall exist when the majorfinance and the operating decision related to the economic activity are agreed by the invested partysharing the control right, which shall be regarded as the joint control on the invested party implementedby other parties. The decision power to participate in the finance and operating decision on the enterprise,but without control or joint control with other parties to formulate these policies, shall be regarded as thesignificant influence on the invested party implemented by the investment enterprise.

(5) Impairment Test Method and Withdrawing Method

For the impairment test method and the withdrawing method of the long-term equity investment, pleaserefer to “Long-term Assets Impairment in Article 21 of Important Accounting Policies and AccountingEstimates in Notes 3 of Financial Statements”.

（15）Entrusted Loans

The entrusted loans shall be made bookkeeping according to the actually entrusted loan amount. Thereceivable interests shall be withdrawn according to the interest rate stated in the entrusted loans.

For the impairment test method and the impairment provision withdrawing method of the entrustedloans, please refer to“Long-term Assets Impairment in Article 21 of Important Accounting Policies andAccounting Estimates in Notes 3 of Financial Statements”.

（16）Investment Real Estates

The term “ Investment real estates” refers to the real estates held for generating rentand/orcapitalappreciation, including the right to use any land which has already been rented, the right to use any landwhich is held and prepared for transfer after appreciation & the right to use any building which hasalready been rented.

The company shall make a measurement to the investment real estate through the cost pattern.Thecompany shall adopt the same depreciation policy as its fixed assets for the investment real estatesmeasured by the cost pattern-buildings for renting & the same amortization policy as its intangible assetsfor the right to use any land for renting. For the impairment test method and the impairment provisionwithdrawing method of the .Investment Real Estates, please refer to “Long-term Assets Impairment inArticle 21 of Important Accounting Policies and Accounting Estimates in Notes 3 of FinancialStatements”.

（17）Fixed assets

（1）Confirmation conditions of fixed assets

Fixed assets refer to physical assets owned for purpose of production, service providing, leasing ormanagement, and operation with service life of more than one year. Fixed assets are recognized when allof the following conditions are satisfied： Financial benefits attached to the fixed asset is possiblyinflowing to the Company;(2) The cost of the fixed asset can be reliable measured.

（2）Depreciation method

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Provision for depreciation of highways and bridges is made with work amount method. Estimatednetresidual value rate is zero. Estimated useful life is determined according to the period of peration right inrespect of charge collection. The concrete calculation method is as follows: The amount of provision fordepreciation per standard vehicle traffic volume is to be calculated based on the estimated total standardvehicle traffic volume within expected useful life of highways and bridges and the original value orbook value of highways and Bridges. Then provision for depreciation is made according to the actualstandard vehicle traffic volume in each fiscal period.

The company regularly rechecks the estimate total standard vehicle traffc volume withintheremainingoperation period of highways and bridges. When there is big difference between actual standard vehicletraffic volume and estimated standard vehicle traffic volume, the Company will re-estimate future totalstandard vehicle traffic volume and adjust the provision for depreciation per standard vehicle trafficvolume to ensure that the book value of relevant highways and bridges will be completely amortizedwithin useful life.

The company adopts the straight line method for the depreciation of fixed assets excepthighways &bridges, and recognizes the depreciation rate according to the fixed asset group, expected useful life &the expected net salvage value rate.

Depreciation ages and ration of fixed assets：

Classification of fixed assetDepreciable life

（Year）Residual rate（%） Depreciation rate（%）

Highway and Bridge：

Including：Guangfo Expressway28 years 0%

Working flow basis

Fokai Expressway30 years 0%

Working flow basis

House Building20-30 years 3%—10% 3%-4.85%

Machine Equipment10 years 3%—10% 9%-9.7%

Transportation Equipment 5-8 years 3%—10% 11.25%-19.4%

Electric Equipment and other 5-15 years 3%—10% 6 %-19.4%

(3) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed AssetImpairment Reserves

For the impairment test method and the impairment provision withdrawing method of the Fixed assets,please refer to “Long-term Assets Impairment in Article 21 of Important Accounting Policies andAccounting Estimates in Notes 3 of Financial Statements”.

（18）Construction-in process

1. Calculation of Construction-in-process:The constructions in process are classified & accountedaccording to the established projects.

2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets

All the expenditures that bring the construction in process to the expected condition for use shall be thecredit value of the fixed asset. If the fixed asset construction in process has already reached the expectedcondition for use, but hasn’ t been made the final account; it shall be carried forward to a fixed assetaccording to its estimated value based on the budget, cost or actual cost of the construction starting fromthe date when it reaches the expected condition for use, and the fixed asset shall be depreciated

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according to the company’s depreciation policy for fixed assets. After the final account has been made,the original provisional estimated value shall be adjusted according to the actual cost, but thedepreciation which has originally been counted & drawn shall not be adjusted.

3．Test Method for Construction-in-Process Impairment and Counting & Drawing Method

For the impairment test method and the impairment provision withdrawing method of theConstruction-in process , please refer to “Long-term Assets Impairment in Article 21 of ImportantAccounting Policies and Accounting Estimates in Notes 3 of Financial Statements”.

（19）Loan expenses

1. Recognition principles for capitalizing of loan expenses

Borrowing expenses occurred to the Company that can be accounted as purchasing or production ofasset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.Other borrowing expenses are recognized as expenses according to the occurred amount, and accountedinto gain/loss of current term.

The assets meeting capital conditions refer to the fixed assets, investment real estates and inventorieswhich are constructed or produced in a long time to reach the predicted use or sale state.

When a loan expense satisfies all of the following conditions, it is capitalized:

1. Expenditures on assets have taken place, asset expenditures include the assets used to construct orproduce the assets which meet the capitalization conditions, and expend by cash or transferring non-cashassets or bearing interest debt;2. Loan costs have taken place;3. The construction or production activities to make assets to reach the intended use or sale of state havebegun.2. Duration of capitalization of Loan costsThe capitalization period refers to the period from starting capitalization of loan costs to the stop ofcapitalization, the period of the break of capitalization of Loan costs is not included.

When the construction or production meets the intended use or sale of state of capitalization conditions,the Loan costs should stop capitalization.When the construction or production meets the conditions of capitalization and can be used individually,the capitalization of the loan costs of the assets should be stopped.

Where each part of a asset under acquisition and construction or production is completed separately andis ready for use or sale during the continuing construction of other parts, but it can not be used or solduntil the asset is entirely completed, the capitalization of the borrowing costs shall be ceased when theasset is completed entirely.

3．Capitalization Suspension Period

Where the acquisition and construction or production of a qualified asset is interrupted abnormally andthe interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall besuspended. If the interruption is a necessary step for making the qualified asset under acquisition andconstruction or production ready for the intended use or sale, the capitalization of the borrowing costsshall continue. The borrowing costs incurred during such period shall be recorded into the profits &losses at the current period, till the acquisition and construction or production of the asset restarts.

4. Calculation of the amount of capitalization of Loan costsInterest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the assetwhich satisfies the capitalizing conditions reaches its useable or saleable status.

Interest amount of common Loan to be capitalized equals to accumulated asset expense less weightedaverage of specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied.Capitalizing rate is determined according to weighted average interest of common Loan.

If the Loan has discount or premium, the discount or premium amount should be determined according

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to actual interests in each accounting period. The interest amount should be adjusted in each period.

（20）Intangible assets

(1) Pricing method, useful life and impairment test

1. The valuation methods of intangible assets

(1)The initial measurement is conducted according to the actual cost when the intangible assets areacquired

The cost of the purchased intangible assets includes its buying price, relevant tax and the othe expensesthat are directly attributed to this assets meeting its predetermined objective and other expenses thatoccur. The buying price of intangible assets is over the deferred payment under normal credit conditions,which has the nature of financing materially, the cost of intangible assets is determined on the basis ofthe present value of its buying price.

We acquire the mortgaged intangible assets from debtors through debt restructuring and determine theentry value on the basis of the fair value of the intangible assets,we have the balance between the bookvalue of debt restructuring and the fair value of intangible assets used for mortgage charged to thecurrent profit and loss.

The entry value of the non-monetary assets exchanged into by the non-monetary assets are determinedon the basis of the fair value of the assets exchanged out if the exchange of non-monetary assets hascommercial nature and the assets exchanged into or out can be reliably measured, unless there isauthentic evidence indicating that the fair value of assets exchanged into are more reliable; if thenon-monetary assets that cannot meet the above prerequisite use the book value of the assets exchangedout and relevant taxes payable as the cost of the non-monetary assets, the profit and loss is notconfirmed.

The entry value of the intangible assets acquired by the absorption merger under the control of onecompany is determined by the book value of the merged party;the entry value of the intangible assetsacquired by the absorption merger that is not under the control of one company is determined by the fairvalue.

The cost of the intangible assets developed internally includes the materials consumed in developing theassets, cost of service, registration fees, other patent used in developing, amortization of concession andinterest charges meeting the capitalization conditions and othe direct costs that occur before theintangible assets meeting the predetermined objective.

（2）Subsequent measurement

The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.

The intangible assets that have limited serviceable life are amortized by the straight-line method duringthe period when the assets can bring about economic interests;The intangible assets are deemed asuncertain serviceable life and are not amortized if it is impossible to expect the period when the assetscould bring about economic interests.

At the end of period, the Group shall check the service life and amortization method of intangible assetswith finite service life, if there is any change, it shall be regarded as a change of the accountingestimates. Besides, the Group shall check the service life of intangible assets without certain service life,if there is any evidence showing that the period of intangible assets to bring the economic benefits to theenterprise can be prospected, it shall be estimated the service life and amortized in accordance with theamortization policies for intangible assets with finite service life.

（2） Provision for the depreciation of value of the intangible assets

For the impairment test method and the impairment provision withdrawing method of the Intangibleassets, please refer to“Long-term Assets Impairment in Article 21 of Important Accounting Policies andAccounting Estimates in Notes 3 of Financial Statements”.

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（21）Impairment of Long-term assets

(1) Scope

The assets Impairment main includes long-term equity investment, investment property (the investmentproperty measured by the fair value excluded), fixed assets, projects under construction, engineeringmaterial, intangible assets (the capitalized development expenditure included), asset group, combinationof asset group, business reputation, etc..

(2) Recognition of Possible Impairment Assets

The company makes judgment of the assets if there exists the possible impairment at the balance sheetdate. The intangible assets with indefinite goodwill and service life due to the combination of enterprise,shall be conducted the impairment test every year regardless of the impairment. The impairment mayoccurs for the assets if there is the following status:

① The market price of assets fall sharply in the current period, and the decline is obviously beyond thatestimated due to the passage of time or normal use.

② The significant changes in the economy, technology or legal environment operated by the companyand the assets market in the current or the near future adversely affect the company.

③ The improvement of the market interest rates or other market investment returns in the current period,influence the company to calculate assets estimating the discount rate of the present value of future cashflow and result in the sharp drop of the recoverable amount of the assets.

④ There is evidence that shows the assets have become obsolete or the entities have been damaged.

⑤ The assets have been or will be idle, terminated the use or planned to dispose in advance.

⑥ The evidence in the internal report of the company shows that the economic performance of assetshas been less than or lower than the expected, such as the net cash flow created by assets or the achievedoperating profit (or loss) is far below (or above) the estimated amount.

⑦ Other evidences indicate the impairment of assets may have occurred.

(3) Measurement of the Recoverable Amount of the Assets

The recoverable amount shall be estimated if there exists the impairment for the assets. The recoverableamount should be recognized according to the higher one between the net amount of the fair valueminus the disposal costs and the present value of the cash flow of assets expected in the future.

(4) Determination of Asset Impairment Loss

The measurement results of the recoverable amount show that the book value of assets shall be reducedto the recoverable amount and the reduced amount shall be recognized as the impairment loss of assetsand recorded into the current profits and losses, and the impairment provisions of the relevant assets arewithdrawn if the recoverable amount of the assets is less than the book value. After the recognition ofthe assets impairment loss, the depreciation or amortization costs of the impairment assets should bemade adjustment accordingly in the future period in order to make the assets to systematically amortizethe book value of the assets after adjusted within the remaining service life (the estimated residual valuededucted). The impairment loss of assets after recognized shouldn’t be reversed in the future accountingperiod.

(5) Recognition and Impairment Treatment of Assets Group

If there is the impairment for one asset, the company shall estimate the recoverable amount based on theindividual asset. If it is difficult for the company to estimate the recoverable amount of the individualasset, the recoverable amount of asset group shall be recognized on the basis of the asset group whichthe asset is belong to. The recognition of the asset group should be made on the basis of the main cashinflow generated by the assets group that if is independent to the cash inflow of other assets or assetsgroup.

81

The corresponding impairment loss shall be recognized if the recoverable amount of the assets group orthe assets group combination is less the book value (the book value of the assets group or the assetsgroup combination should include the amortization quota relevant to corporate assets and goodwill forthe assets group or the assets group combination amortized by the corporate assets and the goodwill).The book value of goodwill in the amortized assets group or assets group combination shall be firstlyoffset for the impairment losses, and the book value of other assets shall be offset in proportionaccording to the proportion of the book value of other assets in the assets group or the assets groupcombination, with the exception of the goodwill.

(6) The Goodwill Impairment

The company has conducted the impairment test at least every year for the goodwill established by thebusiness combination. The book value of the goodwill generated by the combination shall be amortizedinto the related asset group from the purchase date. If difficult to amortize into the relevant asset group,the book value shall be amortized into the relevant asset group combination. The relevant asset group orasset group combination refers to that benefitting from the synergistic effect of the business combinationand is not more than the report portion recognized by the company.

When the relevant asset group or the asset group combination including the goodwill are conducted theimpairment test, the impairment test should be firstly conducted for the asset group without the goodwillor the asset group combination, the recoverable amount shall be calculated and the correspondingimpairment loss shall be recognized by comparison with the relevant book value if there exists theimpairment for the asset group relevant to the goodwill or the asset group combination. Then theimpairment test should be conducted for the asset group with the goodwill or the asset groupcombination, the impairment loss of the goodwill shall be recognized and made the treatment accordingto the provisions of the asset group impairment stated in the notes if the recoverable amount of therelevant asset group or the asset group combination is less than the book value by comparison of thebook value of these relevant asset group or the asset group combination (including the book value of thegoodwill amortized) with the recoverable amount.

（22）Long-term amortizable expenses

Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods of allexpenses are more than one year (excluding 1 year), they should be amortized in the regulated years.

（23）Remuneration

（1）The scope of the employee remuneration

Remuneration refers to all kinds of rewards or compensation that the Company gives to get in return forthe services its employees provide or employment termination. It includes short-term compensation,post-employment benefits, demission benefits and other long-term employee benefits.Enterprises to provide employees spouse, child welfare, dependents, survivors and other beneficiaries

of deceased employees, etc., also belong to payroll.

During the company's accounting staff to provide services, the actual wages, bonuses, allowances and subsidies, welfare, medical insurance, work injury insurance and maternity insurance and other social insurance, housing fund confirmed, labor union funds, employee education funds and as a liability profit or loss or costs related assets. If the debt is expected to provide services after the end of the annual reportingperiod in which an employee can not be fully paid within twelve months, and the financial impact is material, the amount will be discounted liabilities measured after.

(2) Accounting methods for post-employment benefits

Post-employment benefits refer to the compensation and benefits that the Company gives to get in returnfor employees ’ services for their retirement or employment termination, excluding short-termcompensation and demission benefits. It falls into two categories, defined contribution plans and definedbenefit plans.

① The defined contribution plan: the company shall no longer bear the further obligation to pay

82

severance benefit plans after the company deposits the fixed costs to the independent funds. The basicpension insurance and the unemployment insurance shall be recognized as the liability according to thepayable amount accounted by the defined contribution plans and recorded onto the current profits andlosses or the relevant asset costs during the accounting period of the services provided by the staffs.

② The defined benefit plan: the severance benefit plans with the exception of the defined contributionplans.

(3) Accounting Treatment Method of Demission Welfare

The Company offers compensation to terminate employment with its employees before it expires orencourage them to accept lay-off. Such compensation is demission benefits and counted in current profitand loss. The employee compensation liabilities generated by the demission welfare shall be recognizedon the early date and recorded into the current profits and losses: (1) when the company can’t withdrawthe demission welfare provided due to the rundown suggestion or the termination of labor relations plans.(2) when the enterprise recognizes the costs or the expenses related to the reorganization of demissionwelfare payment.

The economic compensation before the official retirement date shall be belong to the demission welfarewhen the implementation of the internal retirement plan for workers. During the period from thetermination of service date to the normal retirement date, the paid internal retirement payroll and socialinsurance charges shall be once recorded into the current profits and losses. The economic compensationafter the official retirement date (such as the normal retirement pension) should be handled according tothe welfares after the demission.

（24）Estimated liabilities

The company should recognize the related obligation as a provision for liability when the obligationmeets the following conditions:

(1) That obligation is a present obligation of the enterprise;

(2) It is probable that an outflow of economic benefits from the enterprise will be required to settle theobligation;

(3) A reliable estimate can be made of the amount of the obligation.On the balance sheet date, anenterprise shall take into full consideration of the risks, uncertainty, time value of money, and otherfactors pertinent to the Contingencies to measure the estimated liabilities in accordance with the bestestimate of the necessary expenses for the performance of the current obligation.

When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterpriseis expected to be compensated by a third party, the compensation should be separately recognized as anasset only when it is virtually certain that the reimbursement will be obtained. Besides, the amountrecognized for the reimbursement should not exceed the book value of the estimated liabilities

（25）Bond payable

When the company is issuing bonds, the total price issued should be included in the “Payable bonds”subject.

The difference between bond issuance total amount and the total amount of bond face valueshould beworked as bond premium or discount and be amortized within the bond period according to actualinterest rate and vertical line method, and be treated according to borrowing costs described below.

（26）Other Comprehensive Incomes

Other comprehensive incomes refer to the profits and losses unrecognized in the current profits andlosses according to other provisions of accounting standards. There are two reports:

(1) Other comprehensive incomes that unable to be reclassified into the profits and losses in the futureaccounting period, mainly including the changes caused by the net liabilities and the net assets of thedefined benefit plan that re-measured and the shares of other comprehensive incomes that accounted and

83

unable to be reclassified into the profits and losses for the invested party in the future accounting periodaccording to the equity method.

(2) Other comprehensive incomes that reclassified into the profits and losses in the future accountingperiod when the requirements are met, the shares of other comprehensive incomes that accounted andreclassified into the profits and losses for the invested party in the future accounting period according tothe equity method when the requirements are met, the profits or losses caused by the fair value changesof the sellable financial assets, the profits or losses generated by the sellable financial assets reclassifiedfor the held-to-maturity investment, the effective hedging portion of the profits and losses issued by thecash flow hedging instruments, and the translation differences of foreign financial statements.

（27）Revenues

The company’s incomes mainly include the toll service revenues and the services provision.

(1) The recognition principle of the toll service revenues is that the toll revenues refer to the charges ofoperating the toll roads and shall be recognized in the actual charge.

(2) The recognition principle of the services provision is as follows:

The labor services started and completed within the same fiscal year shall be recognized as the revenueswhen the labor services finished. If the labor services started and completed in the different fiscal yearand under the reliable estimation of the provided services transaction results, the company shallrecognize the relevant service incomes according to the completion percentage method at the balancesheet date. The results of the transaction can be estimated reliably when the following requirements areall met: (1) total revenues and total labor costs can be measured reliably. (2) the economic benefitsrelevant to the transaction will flow into the enterprise. (3) the competition degree of the labor servicescan be reliably determined.

（28）Governmental subsidy

Government subsidies mean that the Company free of charge acquires the monetary assets and thenon-monetary assets. Government subsidies can be classified into capital-related government subsidiesand earnings-related one.

The purchasing of the fixed assets, intangible assets and other long-term assets related to governmentsubsidies are confirmed as deferred revenue, the revenue is in installments charged to the non-operatingearnings in accordance with the serviceable life of assets built or purchased.

The earning-related government subsidies that are used to compensate the relevant expenses or loss areconfirmed as deferred earnings when the subsidies are acquired, the deferred earnings are charged to thecurrent non-operating earnings; When the subsidies are used to compensate the relevant expenses or lossthat occurred, the subsidies are directly charged to the current non-operating earnings.

（29）Deferred income tax assets and deferred income tax liabilities

The company is likely to determine the deferred income tax assets produced from deductible temporarydifferences with the limit of offsetting the taxable income of temporary difference.

The Company confirms the temporary differences of the taxable that is not paid in the current and priorperiods as the deferred income tax liabilities. However, the goodwill, the transactions formed fromnon-business merger and those will affect either accounting profit or the temporary differences of thetaxable income when the transactions occur are not included in the deferred income tax liabilities.

（30）Accounting Methods of Income tax

The company’s income tax is accounted in Balance sheet liability approach.

The company recognizes the sum of current income tax and deferred tax as the income tax expenses(orincome) in the income statement on the basis of calculating and determining the income tax of thecurrent period(namely the current taxes payable) and the deferred tax (the deferred tax expenses or

84

income ), but excluding the effects of the business combination and the income taxes related to thetransactions or events directly recorded in the owner’s rights and interests.

（31）Change of main accounting policies and estimations

⑴Change of accounting policies

N/A

⑵Change of accounting estimations

N/A

IV. Taxation

1. Major category of taxes and tax retes

Tax category Tax basis Tax rate

Business taxToll income, Rent income and Labour

income 3%、5%

City maintenance and construction tax The actual payment of turnover tax 7%、5%

.Education surcharges The actual payment of turnover tax 3%

Local Education surchargesThe actual payment of turnover tax 2%

Enterprise income tax Taxable income 25%

2.Preferential tax and approving documents

N/A

V. Notes to the major items of consolidated financial statement

With respect to the notes item disclose below, unless otherwise spcified, “Year-beginning” refers toDecember 31, 2014,“ Year-end“ refers to June 30, 2015,“Previous period”refers to Jan-June 2014,“This period” refers to Jan-June 2015.

1.Monetary Capital

In RMB

Items Amount in year-end Amount in year-begin

Cash 104,347.35 77,312.85

Bank deposit 578,944,990.77 561,106,598.75

Other 864,714.96 616,492.12

Total 579,914,053.08 561,800,403.72

Thereinto ： The total amount of deposited

abroad

85

2. Account receivable

1.Classification account receivables.

In RMB

Type

Amount in year-end

Book Balance Bad debt provision

Book valueAmount Proportio

n(%)

Amount Proportion

(%)

Account receivable with single

major amount and withdrawal bad

debt provision for single item

64,776,536.37 89.64 64,776,536.37

Account receivable withdrawalbad

debt provision by group of credit

risk characterstics

7,490,160.08 10.36 173,833.33 2.32 7,316,326.75

Account receivable with minor

individual amount but bad debt

provision is provided

Total 72,266,696.45 100.00 173,833.33 0.24 72,092,863.12

Continued table

Type

Amount in year- begin



n(%)

Amount Proportio

n(%)

Account receivable with single


debt provision for single item 19,134,624.86 80.65 19,134,624.86

Account receivable withdrawalbad

debt provision by group of credit

risk characterstics 4,589,784.94 19.35 102,451.67 2.23 4,487,333.27

Account receivable with minor



Total 23,724,409.80 100.00 102,451.67 0.43 23,621,958.13

- Receivable accounts with large amount individually and bad debt provisions were provided

86

Receivable accounts（Unit）

Amount in year-end

Receivable

accounts

Bad debt

provisionProportion Reason

Guangdong Union Electronic Services

Co., Ltd. 64,776,536.37

Been recovered after

the period

Total 64,776,536.37

- Account reveivable on which bad debt proisions are provided on age basis in the group

AgingBalance in year-end

Receivable accounts Bad debt provision Withdrawal proportion

Within 1 year 7,054,160.08

1-2 years 15,833.33 1,583.33 10.00

2-3 years 189,166.67 56,750.00 30.00

3-4 years 231,000.00 115,500.00 50.00

4-5 years

Over 5 years

Total 7,490,160.08 173,833.33 2.32

Notes of the basis of recognizing the group:

Refer to "Notes 3 the financial statements of the important accounting policies and accounting estimates No. 11 Recogniti

on and withdrawal method of bad debts.

- In the groups, accounts receivable adopting other method to withdraw bad debt provision：N/A

（2）Accrual period, recovery or reversal of bad debts situation

The current amount of provision for bad debts is RMB71,381.66 ; recovery or payback for bad debts Amount is

RMB0.00.

Where the current bad debts back or recover significant amounts:N/A

（3）The current accounts receivable write-offs situation:N/A

（4）The ending balance of other receivables owed by the imputation of the top five parties

Name Amount Aging Proportion(%) Bad debt

provision

Guangdong Union Electronic Services Co., 64,776,536.37 Within 1 89.64

87

Name Amount Aging Proportion(%) Bad debt

provision

Ltd. year

Guangdong Expressway Co., Ltd. 2,196,650.00Within 1

year3.04

Guangzhou Xiehou Advertising media Co.,

Ltd.1,600,000.00

Within 1

year2.21

Guangzhou Zhongqiu Adverting Co., Ltd. 652,434.43Within 1

year0.90

Huizhou Yuedong International Furniture

Expo Co., Ltd.436,000.00 1-4 years 0.60 173,833.33

Total 69,661,620.80 96.39 173,833.33

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets

N/A

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of

accounts receivable

3. Prepayments

（1）Age analysis

In RMB

Age

Balance in year-end Balance in year-begin

AmountProportion

（%）Amount

Proportion

（%）

Within 1 year 2,222,504.20 89.79 710,531.67 73.76

1-2 years

2-3 years

Over 3 years 252,818.00 10.21 252,818.00 26.24

Total 2,475,322.20 100.00 963,349.67 100.00

- Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:

N/A

88

(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target

Name Amount Time Proportion(%)

Dongguan Yongyao Optoelectricity Technology

Co., Ltd.813,750.00 Within 1 year 32.87

CPIC 528,875.00 Within 1 year 21.37

Guangdong Nengda High Grade Maintenance

Co., Ltd.411,252.20 Within 1 year 16.61

Guangzhou Equipment installation Co.,Ltd. 278,552.00 Within 1 year 11.25

Guangzhou Maritime Court 170,738.00 Over 5 years 6.90

Total 2,203,167.20 89.00

4.Dividend receivable

（1）Dividend receivable

In RMB

Items Balance in year-end Balance in year-begin

Ganzhou Gankang Expressway Co.,

ltd.9,000,000.00

Shenzhen Huiyan Expressway Co.,

Ltd.29,667,000.00

Total 38,667,000.00

（2）Significant dividend receivable aged over 1 year:N/A

5.Other accounts receivable

(1) Other accounts receivable disclosed by category

In RMB

Type

Balance in year-end



n(%)

Amount Proportio

n(%)

89

Type

Balance in year-end



n(%)

Amount Proportio

n(%)

Other Account receivable with single



53,351,565.01 76.61 53,351,565.01 100.00

Other Account receivable

withdrawalbad debt provision by

group of credit risk characterstics

16,289,678.76 23.39 1,658,571.80 10.18 14,631,106.96

Other Account receivable with minor



Total 69,641,243.77 100.00 55,010,136.81 78.99 14,631,106.96

Continued table

Type

Balance in year-begin



n(%)

Amount Proportio

n(%)

Other Account receivable with

single major amount and withdrawal

bad debt provision for single item 53,351,565.01 64.08 53,351,565.01 100.00



group of credit risk characterstics 29,904,520.97 35.92 1,658,571.80 5.55 28,245,949.17

Other Account receivable with

minor individual amount but bad

debt provision is provided

Total 83,256,085.98 100.00 55,010,136.81 66.07 28,245,949.17

- Other receivable accounts with large amount and were provided had debt provisions individually at end of period.

Other receivable（Unit）

Balance in year-end

Other receivableBad debt


90

Other receivable（Unit）

Balance in year-end

Other receivableBad debt


Kunlun Sercurities Co.,Ltd. 49,343,885.10 49,343,885.10 100.00 Notes 1

Beijing Gelin Enze Organic Fertilizer

Co., Ltd. 4,007,679.91 4,007,679.91 100.00 Notes 2

Total 53,351,565.01 53,351,565.01

Notes 1： The parent company once paid RMB 33,683,774.79 into Kunlun Securities Co., Ltd, Guangdong

Expressway technology investment Co., Ltd once paid RMB 18,000,000.00 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 Novemeber 11, 2006. On March 2007, The Company and Guangdong Expressway

Technology Investment Co., Ltd had switched the money that paid into Kunlun Secutities Co., Ltd to other account

receivable, and follow the careful principle to doubtful debts provision. The RMB 710,349.92 Credit was Recovered in

2008, and the provision for bad debt is deducted, The RMB977,527.77 credit was recovered in 2011, and the provision for

had debt is deducted.The RMB 652,012.00 Cridit was recovered in 2014, and the provision for had debt is deducted.

Notes 2： Guangdong Expresswaytechnology investment Co., Ltd .should charge Beijing Gelin Enze Organic

Fertilizer Co., Ltd.for RMB12,220,079.91. Eight millions of it was entrust loan, three million was temporary borrowing

RMB 12,400.00 is the commission loan interest, the rest of it was advance money for another, Beijing Gelin Enze Organic

Fertilizer Co., Ltd’s operating status was had and had already ceased producing, Accordingly, the controlling subsidiary of

the company Guangdong Expressway Investment Co., Ltd. accounted full provision for Bad debt RMB 12,220,079.91

rpovision.

The company in 2014 recovered arrears of RMB 8,000,000.00, rushed back to the provision for bad debts and write off un

collected interest entrusted loans according to the settlement agreement of RMB 212,400.00.

- Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：

AgeAmount in year-end

Other receivable Bad debt provision Withdrawal proportion

Within 1 year 10,347,843.31

1-2 years

2-3 years

3-4 years

4-5 years

91

AgeAmount in year-end

Other receivable Bad debt provision Withdrawal proportion

Over 5 years 1,658,571.80 1,658,571.80 100.00

Total 12,006,415.11 1,658,571.80 13.81

Notes of the basis of recognizing the group:

Refer to "Notes 3 the financial statements of the important accounting policies and accounting estimates No. 11 Recogniti

on and withdrawal method of bad debts.

In the groups, other accounts receivable adopting other methods to accrue bad debt provision:

Name

Amount in year-end

Other account

receivable

Bad debt

provisio

n

Withdrawal

proportion

（%）

Reason

Guangdong Litong Property Investment Co., Ltd. 1,435,856.00 Rease deposit

Guangdong Guanghui Expressway Co., Ltd. 698,034.00 Guarantees fund, deposit

Guangdong Guanyue Luqiao Co., Ltd. 667,310.07 Quality guarantees fund

Zhaoqing Yuezhao Highway Co., Ltd. 447,849.00 Guarantees fund, deposit

Beijing Shibang Weilishi Property Management

Services Co., Ltd.393,331.00 Deposit

Zhaoqing Guanghe Expressway Co., Ltd. 163,620.63 Quality guarantees fund

Guangdong Humen Bridge Co., Ltd. 100,000.00 Quality guarantees fund

Chengdu Shuguang Fibre-optical Metwork Co., ltd. 59,758.09 Quality guarantees fund

Guangdong Guangzhu West Line Expressway Co.,

Ltd.47,638.20 Quality guarantees fund

Guangdong Maozhan Expressway Co., Ltd. 40,100.00 Quality guarantees fund

Guangdong Expressway Co., Ltd. 39,654.00 Quality guarantees fund

Guangdong Feida Communication Engineering Co.,


Guangdong Kaiyang Expressway Co., Ltd. 33,300.00 Quality guarantees fund

Guangdong Weishi Highway Engineering Co., ltd. 30,389.13 Quality guarantees fund

Guangdong Shenshan West Expressway Co., Ltd. 20,000.00 Quality guarantees fund

92

Name

Amount in year-end

Other account

receivable

Bad debt

provisio

n

Withdrawal

proportion

（%）

Reason

Guangdong Road & Highway Construction Co.,


Guangzhou Dingrong Information Technology Co.,


Foshan Chezhigang Auto Leasing Co., Ltd. 10,000.00 Deposit

Guangdong Road & Highway Construction

Development Co., Ltd.9,327.70 Quality guarantees fund

Guangdong Zhonglin Electrical Installation

Engineering Co., Ltd.8,820.00 Quality guarantees fund

Shanxi Sihe Communication Engineering Co., ltd. 6,070.00 Quality guarantees fund

Guangdong Hongzhiri Advertising Co., Ltd. 5,656.98 Quality guarantees fund

Deposit 5,700.00 Deposit

Guangdong Xinyue Communication Investment Co.,


Total 4,283,263.65

（2）Accrual period, recovery or reversal of bad debts situation

The current amount of provision for bad debts is RMB 0.00; recovery or payback for bad debts Amount is RMB 0.00.

Where the current bad debts back or recover significant amounts:N/A

(3) The actual write-off other accounts receivable:N/A

(4) Other accounts receivable classified by the nature of accounts

Nature Closing book balance Opening book balance

Securities trading settlement funds balance 49,343,885.10 49,343,885.10

Guarantee deposit 4,283,263.65 13,641,347.40

Current account of gelin enze 4,007,679.91 4,007,679.91

93

Nature Closing book balance Opening book balance

Pretty cash 1,725,100.00 3,675,100.00

Advertising and service fee 2,883,543.83 5,850,744.67

Other 7,397,771.28 6,737,328.90

Total 69,641,243.77 83,256,085.98

(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party

Name NatureClosing

balanceAging

Proportion of the

total year end

balance of the

accounts

receivable(%)

Closing balance

of bad debt

provision

Kunlun Securities Co.,LtdSecurities trading settl

ement funds 49,343,885.10Over 5 yea

rs70.85 49,343,885.10

Beijing Gelin EnzeCurrent account of rel

ated party 4,007,679.91Over 5 yea

rs5.75 4,007,679.91

Heshan Finance Bureau Current account 1,470,000.00Over 5 yea

rs2.11 1,470,000.00

Guangdong Litong Property

Investment Co., Ltd.Deposit 1,435,856.00 2-3 years 2.06

Guangdong Xinlu Advertising

Co.,ltd.

Advertising and servi

ce fee 1,293,717.42Within 1 y

ear1.86

Total 57,551,138.43 82.63 54,821,565.01

(6) Accounts receivable involved with government subsidies:N/A

(7) Other account receivable which terminate the recognition owning to the transfer of the financialassets:N/A

(8) The amount of the assets and liabilities formed by the transfer and the continues involvement ofother accounts receivable:N/A

6.Other asset

94

Items Amount in year-end Amount in year- begin

National debt reverse repurchase balance 40,603,625.00

To offset the input tax 28,751.52

Total 40,632,376.52

7. Available-for-sale financial assets

(1) List of available-for-sale financial assets

ItemsAmount in year-end

Book balance Bad debt provision Book value

Available-for-sale Debt instruments

Available-for-sale equity instruments 2,096,334,801.57 36,793,200.00 2,059,541,601.57

Measured by fair value 1,260,966,499.84 1,260,966,499.84

Measured by cost 835,368,301.73 36,793,200.00 798,575,101.73

Other

Total 2,096,334,801.57 36,793,200.00 2,059,541,601.57

Continued table

ItemsAmount in year- begin

Book balance Bad debt provision Book value

Available-for-sale Debt instruments

Available-for-sale equity instruments 1,983,412,428.45 36,793,200.00 1,946,619,228.45

Measured by fair value 1,148,044,126.72 1,148,044,126.72

Measured by cost 835,368,301.73 36,793,200.00 798,575,101.73

Other

Total 1,983,412,428.45 36,793,200.00 1,946,619,228.45

(2) Available-for-sale financial assets measured by fair value at the period-end

Type

Available-for-sale Debt

instruments

Available-for-sale equity

instruments Total

Cost of the equity 517,560,876.80 517,560,876.80

95

Type

Available-for-sale Debt

instruments

Available-for-sale equity

instruments Total

instruments/amortized

cost of the liabilities

instruments

Fair value 1,260,966,499.84 1,260,966,499.84

Changed amount of the

fair value accumulatively

included in other

comprehensive income

743,405,623.04 743,405,623.04

Withdrawn impairment

amount

As June 30, 2015, the company held 235,254,944 shares of stock of the China Everbright Bank, according to the

closing price 5.36 yuan on 30, June 2015, the fair value at the end of the period is RMB 1,260,966,499.84.

(3) Available-for-sale financial assets measured by cost at the period-end

InvesteeBook balance

Period-begin Decrease Decrease Period -end

Guangdong Rodio and Television

Networks investment No.1 Limited

partnership enterprise 50,000,000.00 50,000,000.00

Kunlun Securities Co., Ltd.(Notes 1) 30,000,000.00 30,000,000.00

Huaxia Securities Co., Ltd.(Notes 2) 5,400,000.00 5,400,000.00

Huazheng Assets Management

Co. Ltd.

(Notes 3) 1,620,000.00 1,620,000.00

Guangdong Guangle Expressway Co.,

Ltd. 748,348,301.73 748,348,301.73

Total 835,368,301.73 835,368,301.73

Continued table

Investee

Impairment provision Shareholdi

ng

proportion

among the

Cash bonus of

the reporting

periodPeriod-begin Period -end

96

Investee

Impairment provision Shareholdi

ng

proportion

among the

investees

Cash bonus of

the reporting

periodPeriod-begin Period -end

Guangdong Rodio and Television

Networks investment No.1 Limited

partnership enterprise 2.97

Kunlun Securities Co., Ltd.(Notes 1) 30,000,000.00 30,000,000.00 5.74

Huaxia Securities Co., Ltd.(Notes 2) 5,400,000.00 5,400,000.00 0.27

Huazheng Assets Management

Co. Ltd.

(Notes 3) 1,393,200.00 1,393,200.00 0.54

Guangdong Guangle Expressway Co.,

Ltd. 9.00

Total 36,793,200.00 36,793,200.00

Notes 1: The owner's equity of Kunlun Securities Co., Ltd. was negative and it entered liquidation procedure in October

2005. A wholly owned subsidiary of Guangdong Expressway Technology Investment Co., Ltd. Will invest

Kunlun Securities Co., Ltd.'s full provision for impairment of RMB 30 million.

Notes 2: The owner's equity of Huaxia Securities Co., Ltd. was negative and it entered liquidationprocedure in December 2005. The Company made full provision for impairment in respect of thislong-term equity investment of RMB 5.4 million.

Notes 3: 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 RMB 279.132 million

and the appraised value was RMB - 2299.5486 million ,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 RMB 42 million 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 RMB 1.3932 million for impairment in

respect of this long-term equity investm ent of RMB 1.62 million.

(4) Changes of the impairment of the available-for-sale financial assets during the reporting period

TypeAvailable-for-sale

Equity instruments

Available-for-sale

Debt instrumentsTotal

Balance of the withdrawn impairment at 36,793,200.00 36,793,200.00

97

TypeAvailable-for-sale

Equity instruments

Available-for-sale

Debt instrumentsTotal

the period-begin

Withdrawal amount

Of which ： Transferred from other

comprehensive imcome

Decreased amount

Of which recovered and reversed after

the persed after the period of the fair

value

Balance of the withdrawn impairment at

the period-end 36,793,200.00 36,793,200.00

⑸Notes ：N/A

98

8. Long-term equity investment

Investees Opening balance

Increase/decrease

Closing balance

Closing

balance of

impairment

provision

Add

investment

Decreased

investment

Gains and

losses

recognized

under equity

method

Adjustment

of other

comprehensiv

e income

Chinges of

other

eqiuty

Cash bonus or

profits

announced to

issue

Withdra

wal of

impairm

ent

provisio

n

Other

I. Joint venture

Guangdong Guanghui

Expressway1,193,172,139.09 101,623,760.94 150,000,000.00 1,144,795,900.03

Zhaoqing Yuezhao

Highway

Co., Ltd.

273,153,345.90 16,159,233.57 289,312,579.47

Beijing Gelin Enze

Subtotal 1,466,325,484.99 117,782,994.51 150,000,000.00 1,434,108,479.50

2. Affiliated Company

Shenzhen Huiyan 160,888,058.33 10,540,600.07 33,000,000.00 138,428,658.40

99


Increase/decrease

Closing balance

Closing

balance of

impairment

provision

Add

investment

Decreased

investment

Gains and

losses

recognized

under equity

method

Adjustment

of other

comprehensiv

e income

Chinges of

other

eqiuty

Cash bonus or

profits

announced to

issue

Withdra

wal of

impairm

ent

provisio

n

Other

Expressway

Jingzhu Exprwssway

Guanzhu 312,905,040.79 34,125,187.86 347,030,228.65

Guangdong Jiangzhong

Expressway 173,582,080.68 4,659,563.57 178,241,644.25

Ganzhou Kangda

Expressway 164,592,503.05 12,375,355.12 176,967,858.17

Ganzhou Gankang

Expressway 207,626,577.95 6,667,521.05 9,000,000.00 205,294,099.00

Guangdong Guangle

Expressway Co., Ltd. 204,066,494.37 1,827,869.40 205,894,363.77

Guangdong Yueke

Technology Petty Loan

Co., Ltd.16,095,123.16 -918,986.20 15,176,136.96

Asian Kitchen & Bath

City Co., Ltd. 1,239,755,878.33 69,277,110.87 42,000,000.00 1,267,032,989.20

100


Increase/decrease

Closing balance

Closing

balance of

impairment

provision

Add

investment

Decreased

investment

Gains and

losses

recognized

under equity

method

Adjustment

of other

comprehensiv

e income

Chinges of

other

eqiuty

Cash bonus or

profits

announced to

issue

Withdra

wal of

impairm

ent

provisio

n

Other

Total 2,706,081,363.32 187,060,105.38 192,000,000.00 2,701,141,468.70

101

9. Investment property

(1) Investment property adopted the cost measurement mode

ItemsHouses and

buildingsLand use right

Construction in

progressTotal

I.Original value

1.Opening balance 12,664,698.25 12,664,698.25

2.Increased amount of the period

（1）Outsourcing

（2）Inventory, Fixed assetsand

Construction project into

（3）Enterprise consolidation

3.Decreased amount ofthe

period

（1）Disposal

（2）Other Out

4.Closing balance 12,664,698.25 12,664,698.25

II.Accumulated depreciation

accumulated amortization

1.Opening balance 8,516,300.37 8,516,300.37

2.Increased amount of the period 232,106.70 232,106.70

（1）Withdrawalor amortization 232,106.70 232,106.70


period

（1）Disposal

（2）Other Out

4.Closing balance 8,748,407.07 8,748,407.07

III. Impairment provision

1.Opening balance

102

ItemsHouses and

buildingsLand use right

Construction in

progressTotal

2.Increased amount of the period

（1）Withdrawalor


period

（1）Disposal

（2）Other Out

4.Closing balance

IV. Book value

1.Closing book value 3,916,291.18 3,916,291.18

2.Opening book 4,148,397.88 4,148,397.88

(2) Details of fixed assets failed to accomplish certification of property

Items Book value Reason

Transportation and other ancillary

facilities2,104,266.90 Transportation and other ancillary

facilities, Not accreditation

103

10.Fixed assets

（1）Fixed assets

ItemsGuangfo

ExpresswayFokai Expressway

House and

building

Machine

equipment

Transporation

Equipment

Electricity

equipment and

other

Total

I. Original price

1.Opening balance 1,460,270,190.66 8,547,420,760.60 268,889,649.54 148,550,154.14 53,899,687.28 362,133,820.56 10,841,164,262.78

2.Increased amount ofthe

period 17,772,589.45 2,638,125.56 20,410,715.01

（1）Purchase 323,987.00 323,987.00

（2）Transfer of project under

construction 17,772,589.45 2,314,138.56 20,086,728.01

（ 3 ） Increased of Enterprise

consolidation

3.Decreased amountof the

period918,350.00 3,960,286.33 4,878,636.33

（1）Disposal or scrap 918,350.00 3,960,286.33 4,878,636.33

4.Closing balance 1,460,270,190.66 8,565,193,350.05 268,889,649.54 148,550,154.14 52,981,337.28 360,811,659.79 10,856,696,341.46

II. Accumulated depreciation

1.Opening balance 1,120,872,662.99 2,146,782,932.11 122,921,217.02 36,618,185.46 36,824,762.98 200,378,477.49 3,664,398,238.05

104

ItemsGuangfo

ExpresswayFokai Expressway

House and

building

Machine

equipment

Transporation

Equipment

Electricity

equipment and

other

Total

2.Increased amount ofthe

period 73,467,531.06 185,016,031.21 7,646,347.64 6,719,015.51 1,968,167.71 13,405,998.88 288,223,092.01

（1）Withdrawal 73,467,531.06 185,016,031.21 7,646,347.64 6,719,015.51 1,968,167.71 13,405,998.88 288,223,092.01


period 826,515.00 3,654,727.24 4,481,242.24

（1）Disposal or scrap 826,515.00 3,654,727.24 4,481,242.24

4.Closing balance 1,194,340,194.05 2,331,798,963.32 130,567,564.66 43,337,200.97 37,966,415.69 210,129,749.13 3,948,140,087.82


1.Opening balance

2.Increased amount ofthe period

（1）Withdrawal


period

（1）Disposal or scrap

4.Closing balance

IV. Book value

1.Closing book value 265,929,996.61 6,233,394,386.73 138,322,084.88 105,212,953.17 15,014,921.59 150,681,910.66 6,908,556,253.64

2.Opening book value 339,397,527.67 6,400,637,828.49 145,968,432.52 111,931,968.68 17,074,924.30 161,755,343.07 7,176,766,024.73

105

(2) List of temporarily idle fixed assets:N/A

(3) Fixed assets leased in from financing lease:N/A

(4) Fixed assets leased out from operation lease:N/A

(5) Details of fixed assets failed to accomplish certification of property

Items Book value Reason

Transportation and other ancillary facilities 111,123,326.20 Transportation and other ancillary facilities, Not accreditation

11. Project under construction

（1）Project under construction

Items

Year-end balance Year-beginning balance

Book balance Provision for

devaluation

Book Net value Book balance Provision for

devaluation

Book Net value

The period between Xiebian to Sanbao

extension

project

Other project 8,096,697.03 - 8,096,697.03 2,974,467.60 - 2,974,467.60

Total 8,096,697.03 - 8,096,697.03 2,974,467.60 - 2,974,467.60

106

(2) Changes of significant construction in progress

Name BudgetAmount at year

beginningIncrease at this period

Transferred to fixed

assets Other decrease Balance in year-end

The period between Xiebian

to Sanbao extension

project

400,240.91 17,772,589.45 17,772,589.45

Other project 2,974,467.60 7,436,367.99 2,314,138.56 8,096,697.03

Total 2,974,467.60 25,208,957.44 20,086,728.01 8,096,697.03

Continued table

NameProportion(%)

Progress of

work

Capitalisation of

interest accumulated

balance

Including：Current amount of

capitalization of interest

Capitalisation of

interest ratio（%)Source of funds

The period between

Xiebian to Sanbao

extension

project

121.42 100.00

413,852,444.90 Self and loan

Other project Self

Total 413,852,444.90

(3) List of the withdrawal of the impairment provision of the construction in progress:N/A

107

12. Engineering material


Signpost 1,549,556.00 1,549,556.00

Total 1,549,556.00 1,549,556.00

13. Intangible assets

(1) List of intangible assets

Items Land use right Patent rightNon-patent

right

Software Total

I. Original price

1.Opening balance 1,311,658.00 8,918,094.77 10,229,752.77

2.Increased amount

ofthe period 212,700.00 212,700.00

(1) Purchase 212,700.00 212,700.00

(2)Internal Development

(3)Increased of Enterprise

Combination

3.Decreased amount of the

period

（1）Disposal

4.Closing balance 1,311,658.00 9,130,794.77 10,442,452.77

II.Accumulated amortization

1.Opening balance 920,683.30 4,258,020.13 5,178,703.43

2.Increased amount

ofthe period 75,672.60 875,925.56 951,598.16

(1) Withdrawal 75,672.60 875,925.56 951,598.16

3.Decreased amount of

the period

（1）Disposal

108

Items Land use right Patent rightNon-patent

right

Software Total

4.Closing balance 996,355.90 5,133,945.69 6,130,301.59


1.Opening balance

2.Increased amount

ofthe period

(1) Withdrawal

3.Decreased amount of

the period

（1）Disposal

4.Closing balance

IV. Book value

1.Closing book value 315,302.10 3,996,849.08 4,312,151.18

2.Opening book value 390,974.70 4,660,074.64 5,051,049.34

The proportion the intangible assets formed from the internal R&D through the Company amount the balance of the

intangible assets at the period-end..

(2) Details of fixed assets failed to accomplish certification of land use right:N/A

14. Long-term amortize expenses

ItemsBalance inyear-begin

Increase in thisperiod

Amortized

expensesOther loss

Balance in

year-endReason

Renovation fee 4,955,719.12 7,088.22 850,411.04 4,112,396.30

Property

Insurance 50,435.62 30,261.30 20,174.32

Total 5,006,154.74 7,088.22 880,672.34 4,132,570.62

15. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets had not been off-set


109

Deductible temporary

difference

Deferred income tax

assets


difference

Deferred income tax

assets

Deductible loss 35,476,938.38 8,869,234.60

Total 35,476,938.38 8,869,234.60

(2) Deferred income tax liabilities had not been off-set

Items

Balance in year-end Balance in year-begin


difference

Deferred income tax

liabilities


difference

Deferred income tax

liabilities

Timing difference between

accumulated depreciation 495,610,791.62 123,902,697.91 496,600,258.67 124,150,064.67

Total 495,610,791.62 123,902,697.91 496,600,258.67 124,150,064.67

（3）Deferred income tax assets and liabilities are presented as net amount after neutralization


The temporary difference in the formation of asset

impairment 91,977,170.14 91,905,788.48

Deductible loss 950,301,369.47 835,614,811.02

Total 1,042,278,539.61 927,520,599.50

Notes ： Due to the uncertainty of the parent company and the wholly-owned subsidiary-Guangdong Expressway

Technology Investment Co,. Ltd whether to obtain taxable income in the future, hence this can offset the temporary

differences and won’t be confirmed as deferred income tax asset

（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years

Year Balance in year-end Balance in year-begin Remark

2015 87,468,340.85 87,468,340.85

2016 139,203,475.18 141,073,439.77

2017 222,284,848.14 222,416,075.93

2018 160,626,365.98 160,626,365.98

2019 227,487,158.79 224,030,588.49

2020 113,231,180.53

110

Year Balance in year-end Balance in year-begin Remark

Total 950,301,369.47 835,614,811.02

16. Other Non-current assets


Prepaid land occupation tax 1,176,432.55 1,176,432.55

Total 1,176,432.55 1,176,432.55

17.Short-term loans

（1）Category of shart-term loans


Pledge loan

Mortgage loan

Guaranteed loan

Credit loan 150,000,000.00 150,000,000.00

Total 150,000,000.00 150,000,000.00

(2) List of the short-term loans overdue but not return:N/A

18. Account payable

（1）List of Account payable


Within 1 year（Including 1 year） 97,352,126.83 122,813,113.61

1-2 years（Including 2 years） 25,470,935.39 4,519,689.44

2-3 years（Including 3 years） 3,700,594.01 6,786,964.00

Over 3 years 15,329,376.98 16,679,441.55

Total 141,853,033.21 150,799,208.60

(2) Notes of the accounts payable aging over one year

Items Balance in year-end Unpaid reason

111

Items Balance in year-end Unpaid reason

Guangdong Expressway Co., Ltd. 8,746,491.18 Unsettled

Guangdong Guanghui Expressway Co., Ltd. 5,526,792.01 Unsettled

Guangdong Changda Highway Engineering Co., Ltd. 5,048,704.00 Unsettled

Dongguan Leyu Optoelectronic Technology Co.,

Ltd.4,340,240.00 Unsettled

Guangdong Jingtong Highway Engineering

Construction Co., Ltd.2,149,189.00 Unsettled

Guangdong Guanyue Luqiao Co., Ltd. 2,050,148.00 Unsettled

Total 27,861,564.19

19. Advance from customers

(1) List of advance from customers


Within 1 year（Including 1 year） 720,715.95 868,021.39

1-2 years（Including 2 years）

2-3 years（Including 3 years）

Over 3 years 3,833,334.78 4,000,001.40

Total 4,554,050.73 4,868,022.79

(2) Significant advance from customers aging over one year

Items Closing balance Unpaid/Uncarry over reason

Guangdong Province Telecomunications

Engineering Management Center 3,833,334.78 Communication channels rent

Total 3,833,334.78 --

(3) Particulars of settled but unfinished projects formed by construction contract at period-end.:N/A

20. Payable Employee wage

（1）Payable Employee wage

112

Items Year-beginning

balance

Increase in the

current period

Decrease in the

current period

Year-end

balance

I. Short-term compensation 2,807,989.72 87,851,268.33 87,816,387.64 2,842,870.41

II.Post-employment benefits - defined cont

ribution plans286.00 7,773,395.64 7,773,681.64

III. Dismiss welfare 109,982.48 109,982.48

IV. Other benefits within 1 year

Total 2,808,275.72 95,734,646.45 95,700,051.76 2,842,870.41

（2）Short-term compensation

Items Year-beginning

balance

Increase in the

current period

Decrease in the

current period

Year-end

balance

1.Wages, bonuses, allowances and

subsidies 465,063.49 59,241,340.49 59,241,340.49 465,063.49

2.Employee welfare 299,000.00 8,761,059.70 9,060,059.70

3. Social insurance premiums 27,118.50 4,041,753.62 4,041,753.62 27,118.50

Inlduding ：Medical insurance 3,373,863.15 3,373,863.15

Work injury insurance 174,598.08 174,598.08

Maternity insurance 27,118.50 389,738.19 389,738.19 27,118.50

Supplementary

medicalinsurance103,554.20 103,554.20

4.Public reserves for housing 39.74 12,000,366.00 12,000,366.00 39.74

5.Union funds and staff education fee 2,016,767.99 2,219,174.21 1,885,293.52 2,350,648.68

6. Short-term paid absences

7. Short-term profit-sharing plan

8.Other 1,587,574.31 1,587,574.31

Total 2,807,989.72 87,851,268.33 87,816,387.64 2,842,870.41

113

（3）List of drawing scheme

ItemsBalance in

year-begin

Increase in this

period

Payable in this

period

Balance in

year-end

1. Basic old-age insurance premiums 6,025,271.09 6,025,271.09

2.Unemployment insurance 286.00 352,013.43 352,299.43

3.Enterprise annuity payment 1,396,111.12 1,396,111.12

Total 286.00 7,773,395.64 7,773,681.64

21. Tax PayableItems Balance in year-end Balance in year-begin

VAT 30,846.29 3,353.32

Business Tax 5,302,895.08 5,923,003.03

Enterprise Income tax 29,712,315.33 1,955,971.88

Individual Income tax 3,366,384.39 2,630,647.57

City Construction tax 427,189.49 358,216.82

Land use tax 906,788.95 57,923.88

Property tax 502,835.74 248,088.61

Education subjoin 193,495.73 164,600.65

Locality Education subjoin 118,963.45 98,472.27

Stamp tax 5,582.71

Defend expense 128,951.66 130,711.35

Cultural construction costs -1,478.35

Total 40,690,666.11 11,575,093.74

22.Interest payable


Pay the interest for long-term loans by

installments.

8,500,502.68 9,298,064.66

Interest of company bonds 48,850,277.63 14,900,277.65

Payable interest for short-term borrowings 275,000.00 275,000.00

114


The preferred shares are classified as financial lia

bilities \ perpetual debt interest

Total 57,625,780.31 24,473,342.31

Particulars of significant overdue unpaid interest:N/A

23. Dividends payable

Items Year-end balance Year-Beginning balance

Common stock dividends 11,915,654.95 11,148,088.30

Zhujiang Infrastructure investment Co., Ltd. 5,189,301.99

Guangdong Expressway Co., Ltd. 3,292,301.60

The preferred shares are classified as financial lia

bilities \ perpetual debt dividends

Total 20,397,258.54 11,148,088.30

Note:

Final dividend payable RMB11,129,545.65 for more than a year in unpaid dividends to shareholders over the year was m

ainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank, did not share ref

orm of shareholders to receive dividends or provide application to receive dividends the bank information is incorrect, res

ulting in failure to pay a dividend or refund.

24.Other accounts payable

(1) Other accounts payable listed by nature of the account

Items Year-end balance Year-Beginning balance

Project fund/Quality guarantee fund 152,333,184.81 207,939,390.58

Shareholder loans 125,000,000.00

Deposit 2,120,164.15 1,887,499.15

Other 52,474,059.67 34,498,208.26

Total 206,927,408.63 369,325,097.99

(2) Other significant accounts payable with aging over one year

Items Closing balance Unpaid/un-carry over reason

115

Items Closing balance Unpaid/un-carry over reason

Guangdong Changda Engineering Co., Ltd 51,014,472.90Project Quality guarantees/ Bid Gruarantees/

Performance Gruarantee

Guangdong Guanyue luqiao Co., Ltd. 21,098,751.79Project Quality guarantees/ Bid Gruarantees/


China Railway 12 Bureau Group Co., ltd. 13,487,411.00 Project Quality guarantees

Guangdong Jingtong Highway Engineering

Construction Group Co., ltd.10,406,631.20

Project Quality guarantees/ Bid Gruarantees/


Jilin Great wall Highway Bridge Construction

Co., Ltd.5,785,005.50 Project Quality guarantees

China Railway 23 Bureau Group Co., ltd. 4,807,861.00 Project Quality guarantees

Guangdong Nengda Grade Highway

Maintenance Co., Ltd.3,503,016.52

Project Quality guarantees/ Bid Gruarantees/


Ziguang Jietong Technology Co., Ltd. 2,919,474.50 Project Quality guarantees, Bid Gruarantees

Guangdong Xinguang International Group Co.,

Ltd.1,905,911.00 Project Quality guarantees

Hubei Road & Bridge Group Co., Ltd. 1,574,241.50 Project Quality guarantees

Haolan Environment Co., Ltd. 1,281,945.49 Project Quality guarantees

Shengshi International Road & Bridge

Construction Co., Ltd.1,268,674.00 Project Quality guarantees

Total 119,053,396.40

25. Non-current liabilities due within 1 year

Items Balance year-end Year-beginning balance

Long-term loans due within 1 year 117,480,000.00 400,480,000.00

Bonds payable due within 1 year

Long-term payable due within 1 year

Total 117,480,000.00 400,480,000.00

Notes:Long-term borrowing rate is due within one year falled by 10% compared with the benchmark lending rate over the

same period.

116

26. Long-term loan


Pledge loan

Mortgage loan

Guaranteed loan 1,500,000,000.00 1,500,000,000.00

Credit loan 2,868,440,000.00 2,893,840,000.00

Total 4,368,440,000.00 4,393,840,000.00

Notes:Borrowing rate for the same period in the benchmark lending rate or benchmark lending rate over the same period f

all 10%.

27. Bonds payable

（1）Bonds payable


11 Guangdong Expressway MINI 997,000,000.00 997,000,000.00

Total 997,000,000.00 997,000,000.00

(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and

perpetual capital securities of financial liabilities)

Bond Face value Date of issue Bond term Issuing amount

Interest payable

at beginning of

period

11 Guangdong

Expressway MINI 100.00 2011-10-13 5 years 1,000,000,000.00 997,000,000.00

Total 1,000,000,000.00 997,000,000.00

Continued table

BondThe current

issue

Withdraw interest at

par

Overflow

discount

amortiation

Pay in current

period End of blance

11 Guangdong

Expressway MINI 48,850,277.63 997,000,000.00

Total 48,850,277.63 997,000,000.00

117

(3) Note to conditions and time of share transfer of convertible bonds

N/A

(4) Note to other financial instrument classified as financial liabilities

Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at

period-begin

N/A

28.Long-term payable

（1）List of long term payable


Non-operating asset payable 2,022,210.11 2,022,210.11

Ganzhou Gankang Expressway Co., Ltd.Entrusted loans 50,000,000.00

Total 52,022,210.11 2,022,210.11

118

29. Stock capital

Items Balance Year-beginning

Increase/decrease this time (+ , - )

Balance year-endIssuing of new

shareBonus shares

Transferred from

reservesOther Subtotal

I. Restricted tradable shares

1.State-owned shares 409,977,151 409,977,151

2.State-owned legal person shares 21,712,738 21,712,738

3.Other demestic shares 8,638,995 -773,656 -773,656 7,865,339

Including：Domestic legal person 8,063,849 -710,982 -710,982 7,352,867

Domestic natural person 575,146 -62,674 -62,674 512,472

4.Foreign shares

Including：Foreign Legal person

Foreign Natural person

5.Executive shares 156,442 5,011 5,011 161,453

6.Orientation, inquiry issued shares

Indluding：Domestic Natural person

Total restricted tradable shares 440,485,326 -768,645 -768,645 439,716,681

II. Tradable shares

119

Items Balance Year-beginning

Increase/decrease this time (+ , - )

Balance year-endIssuing of new

shareBonus shares

Transferred from

reservesOther Subtotal

1. Ordinary shares denominated in

RMB467,882,422 768,645 768,645 468,651,067

2.Foreign capital shares listed

dodmestically348,750,000 348,750,000

3.Foreign capital share listed overseas

4.Other

Total tradable shares 816,632,422 768,645 768,645 817,401,067

III. Total shares 1,257,117,748 1,257,117,748

Notes 1：In the report period，Mr. Yun Wu Jun attained the retiring age, resigned from the post of the Chief Accountant, 5,011 unrestricted negotiable shares held by him were transferred

into frozen shares for senior executives.

Notes 2 ：： In the report period ， 710,982 shares held by domestic legal persons subject to sale restriction and 62,674 shares held by domestic Nautural personssubject

to sale restriction was unfrozen and listed for trading and transferred into unrestricted shares on January 26, 2015.

30. Capital reserves

Items Year-beginning balance Increase in the current period Decrease in the current period Year-end balance

Share premium 1,534,771,223.07 1,534,771,223.07

Other capital reserves

120

Items Year-beginning balance Increase in the current period Decrease in the current period Year-end balance

Total 1,534,771,223.07 1,534,771,223.07

31. Other comprehensive income

ItemsYear-beginning

balance

Amount of current period

Year-end balanceAmount for the p

eriod before inco

me tax

Less ：

Previously recog

nized in profit or

loss in other com

prehensive inco

me

Less：Income tax

After - tax attrib

utable to the pare

nt company

After - tax attrib

utable to minorit

y shareholders

1.Other comprehensive income that will not be reclassified

subsequently to profit or loss

Indluding：Change as a result of remeasurement of the net

defined benefit plan liability or asset

Share of other comprehensive income of the investee

underthe equity method that will not be reclassified to profit

or loss

II. Other Comprehensive income that will be reclassified

subsequently to profit or loss 630,483,249.92 112,922,373.12 112,922,373.12 743,405,623.04

Indluding： Share of other comprehensive income of the

investee under the equity method that w8ill be

121

ItemsYear-beginning

balance


Year-end balanceAmount for the p

eriod before inco

me tax

Less ：

Previously recog

nized in profit or

loss in other com

prehensive inco

me

Less：Income tax

After - tax attrib

utable to the pare

nt company

After - tax attrib

utable to minorit

y shareholders

reclassified to profit or loss

Gains or losses on changes in fair value of

available-for-sale financial assets 630,483,249.92 112,922,373.12 112,922,373.12 743,405,623.04

Gains or losses on reclassification of

held-to-maturityinvestments to available-for –sale

financial assets

Effective portion of gains or losses on cash flow hedges

Translation differences of financial statements

denominated in foreign currencies

Total 630,483,249.92 112,922,373.12 112,922,373.12 743,405,623.04

Notes 1. The initial balance and the ending balance refer to other comprehensive incomes in the balance sheet. The initial balance + other comprehensive incomes belong to the parent

company after taxes = the ending balance. The occurrence amount in the period refers to other comprehensive incomes in the profit statement, and the occurrence amount before income tax in

the period – Other comprehensive income recorded in the earlier stage and transferred into the profits and losses in the current period – income taxes = other comprehensive incomes belong to

the parent company after taxes + other comprehensive incomes belong to the minority shareholders after taxes.

Notes 2. The company’s headquarters is the investment enterprise, the investment income after the non-taxable investment deducted can generate the tax losses and left to make up for the

future years. Based on the prudence concept, the company will not recognize the deferred income tax assets relevant to the undistributed deficit. For the profits and losses gained from the

disposal of the sellable financial assets in the future are estimated that can’t offset the losses in the taxes, the company shall not pay the income taxes and considerate the influence on the

122

income taxes caused by the sellable financial assets.

123

32. Surplus reserve

Items Year-beginning balance Increase in the current

period

Decrease in the current

period

Year-end balance

Statutory surplus reserve 253,056,237.77 253,056,237.77

Arbitrarily surplus

reserve

Reserve funds

Enterprise development

funds

Other

Total 253,056,237.77 253,056,237.77

33. Retained profits

Items Amount of this period Amount of last period

Before adjustment: Retained profits at the end of priodyear 1,340,748,017.33 1,104,154,555.90

Adjustment: Total retained profits at the beginning of year

After adjustment: Retained profits at the beginning of year 1,340,748,017.33 1,104,154,555.90

Add：Net profit attributable to shareholders of the parent Company

for the period 231,855,370.05318,754,807.85

Less：Appropriation to statutory surplus reserve 19,305,459.02

Appropriation to discretionary surplus reserve

Appropriation to general risk reserve

Ordinary shares’ dividends payable 125,711,774.80 62,855,887.40

Ordinary shares’ dividends converted into share capital

Retained profits at the end of the period 1,446,891,612.58 1,340,748,017.33

124

34.Operation income and operation cost

ItemsAmount of this period Amount of last period

Income Cost Income Cost

Main operation 713,087,732.92 357,468,924.78 678,748,660.01 362,875,566.27

Other operation 11,305,154.67 3,229,952.55 9,968,231.85 6,739,033.46

Total 724,392,887.59 360,698,877.33 688,716,891.86 369,614,599.73

35. Business tax and subjoin


Business tax22,644,312.35 22,006,698.77

Urban construction tax1,590,974.92 1,546,091.45

Education surcharge 681,985.19 662,610.69

Defend expense 553,709.41 574,497.70

Locality Education surcharge 454,656.60 441,745.23

Culture Construction fee 27,147.85 52,159.97

Total 25,952,786.32 25,283,803.81

36. Management expenses


Wage 50,126,426.23 51,637,449.06

Depreciation and Amortization 3,311,147.01 5,819,470.03

Low consumables amortization 79,304.70 267,036.17

Travel expenses 239,618.39 476,612.21

Office expenses 1,531,016.12 1,484,687.84

Leased experses 5,400,654.72 5,930,752.23

The fee for hiring agenc 1,745,795.74 1,732,623.49

Consultation expenses 74,280.00

Directorate expenses 391,976.00 219,302.00

Expenses of taxation 1,781,319.75 2,043,217.67

125


Listing fee 150,810.80 10,740.00

Information cost and maintenance fee 179,550.00 106,206.02

Other 4,195,225.06 6,674,157.13

Total 69,132,844.52 76,476,533.85

37.Financial expenses


Interest expenses 185,794,426.27 213,965,517.01

Deposit interest income（-） -2,622,113.98 -9,029,261.50

Exchange Income and loss（Gain-） 499,486.96 277,477.78

Bank commission charge 322,552.02 196,248.55

Total 183,994,351.27 205,409,981.84

38. Asset impairment loss


I .Losses for bad debts 71,381.66 -2,000,000.00

II. Losses for falling price of inventory

III. Losses of available for sale financial assets

impairment

IV.Impairment on held-to-mathurity investments

V.Impairment on long-term equity investment

VI.Impairment on investment properties

VII.Impairment on fixed assets

VIII. Impairment on construction materials

IX. Impairment on construction in progress

X. Impairment on bearer biological assets

XI. Impairment on oil and gas assets

126


XII. Impairment on intangible assets

XIII. Impairment on goodwill

XIV.Other

Total 71,381.66 -2,000,000.00

39. Investment income


Long-term equity investment income by equity

method 187,060,105.38179,155,666.77

Investment income from the disposal of

long-term equity investment

Investment income from holding the financialasset of

which fair value recognized in profit or loss

Investment income from disposal of financialassets

measured by fair value with changes in fair value

recognised in profit or loss

Hold the investment income during from

available-for-sale financial assets

Investment income gain from available for sale

financial assets 43,757,419.5842,119,862.10

Investment income from the disposal of


Investment income from disposal of financialassets

available for sale

Reverse repurchase treasury investment income 854,210.29 415,618.67

Total 231,671,735.25 221,691,147.54

127

40. Non-Operation income


Recorded in the amount of

the non-recurring gains and

losses

Total gains from disposal of

non-current assets3,578.00 1,500.00 3,578.00

Including：Gains from disposal of

fixed assets3,578.00 1,500.00 3,578.00

Gains from disposal of

intangible assets

Gains from disposal of

construction in process

Other

Gains from debt restructuting

Non-monetary assets

exchangegains

Accepting donations

Government Subsidy 230,000.00 230,000.00

Surplus profit

Road property claim income 4,709,102.01 666,411.69 4,709,102.01

Other income 755,042.90 736,527.30 755,042.90

Total 5,697,722.91 1,404,438.99 5,697,722.91

- Government subsidy reckoned into current gains/losses

ItemsAmount of this

periodAmount of last period

Assets-related/income

-related

Energy-saving special projects 230,000.00 Related to the income

Total 230,000.00

41. Non-Operation expense

Items Amount of current period Amount of previous periodThe amount of

non-operating gains &

lossed

128

Items Amount of current period Amount of previous periodThe amount of

non-operating gains &

lossed

Total of non-current asset

Disposition loss365,730.09 574,948.41 365,730.09

Incl：loss of fixed assets disposition 365,730.09 574,948.41 365,730.09

Loss of intangible assets

disposition

Loss of Construction in

process disposition

Loss of Debt restructuring

disposition

Non-monetary assets exchange los

s

Foreign donation

Loss

Assets scrapped, damage loss

Exprese of fine 48,735.64 48,735.64

Other 194,560.31 1,820,842.80 194,560.31

Total 609,026.04 2,395,791.21 609,026.04

42. Income tax expense

(1) Lists of income tax expense

ItemsAmount of current period Amount of previous period

Current income tax expense 45,382,766.71 7,855,114.86

Deferred income tax expense 8,621,867.84 23,837,672.00

Total 54,004,634.55 31,692,786.86

(2) Adjustment process of accounting profit and income tax expense

Items Amount of current period

129

Items Amount of current period

Total profits 321,303,078.61

Current income tax expense accounted by tax and relevant

regulations80,325,769.65

Effect of different tax rates of subsidiaries

Influence of income tax before adjustment 4,454,839.42

Influence of non taxable income -64,957,518.86

Impact of non-deductible costs, expenses and losses 835,309.04

Affect the use of deferred tax assets early unconfirmed deductible

losses-1,699,876.46

The current period does not affect the deferred tax assets recognized

deductible temporary differences or deductible loss28,307,795.13

Income tax expense 54,004,634.55

43. Notes Cash flow statement

(1) Other cash received from business operation


Newwork received toll income 18,511,470.94 62,764,326.00

Interest income 2,622,115.98 9,029,261.50

Unit current account 21,941,834.33 17,412,750.14

Total 43,075,421.25 89,206,337.64

（2）Other cash paid for business activities


Management expense 12,673,437.89 18,835,067.18

Unit current account 5,490,209.30 7,556,833.65

Total 18,163,647.19 26,391,900.83

130

(3)Cash received related to other investment activities


Kunlun Securities Co., Ltd. liquidation allotments 2,000,000.00

Total 2,000,000.00

(4)Cash paid related to other investment activities

N/A

(5) Cash received related to financing activities

N/A

(6) Cash paid related to financing activities


The medirm –term notes underwriting fees 3,000,000.00 3,000,000.00

Total 3,000,000.00 3,000,000.00

44. Supplement Information for cash flow statement

（1）Supplement Information for cash flow statement

Supplement Information Amount of current

period

Amount of previous

period

I. Adjusting net profit to cash flow from operating activities

Net profit 267,298,444.06 202,938,981.09

Add: Impairment loss provision of assets 71,381.66 -2,000,000.00

Depreciation of fixed assets, oil and gas assets and consumable

biological assets288,455,198.71 276,046,685.37

Amortization of intangible assets 951,598.16 812,944.97

Amortization of Long-term deferred expenses 880,672.34 3,392,950.88

Loss on disposal of fixed assets, intangible assets and other 362,152.09 573,448.41

131

Supplement Information Amount of current

period

Amount of previous

period

long-term deferred assets

Loss on scrap of fixed assets

Losson fair value changes

Financial cost 186,293,913.23 214,242,994.79

Loss on investment -231,671,735.25 -221,691,147.54

Decrease of deferred income tax assets 8,869,234.60 22,270,454.73

Increased of deferred income tax liabilities -247,366.76 1,567,217.27

Decrease of inventories

Decease of operating receivables -35,241,416.50 -59,098,396.23

Increased of operating Payable 32,059,554.41 61,884,967.50

Other

Net cash flows arising from operating activities 518,081,630.75 500,941,101.24

II. Significant investment and financing activities that without cash

flows:

Debt-to-capital conversion

Convertible loan due within 1 year

Fixed assets acquired under fianancial lease

3．Movement of cash and cash equivalents：

Ending balance of cash 579,914,053.08 953,022,518.70

Less: Beginning balance of cash equivalents 561,800,403.72 976,468,685.82

Add：Ending balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase of cash and cash equivalents 18,113,649.36 -23,446,167.12

132

(2) Net Cash paid of obtaining the subsidiary

N/A

(3) Net Cash receive of disposal of the subsidiary

N/A

（4）Composition of cash and cash equivalents

Items Amount of current period Amount of previous period

I. Cash 579,914,053.08 561,800,403.72

Of which: Cash in stock 104,347.35 77,312.85

Demand bank deposit578,944,990.77 561,106,598.75

Demand other monetary funds864,714.96 616,492.12

Demanddeposit in the Central Bank

Depositin peerfirms

Loan to peerfirms

II. Cash equivalents

Including：Debt instrument maturedwithin three months

III. Balance of cash and cash equivalents at the period end 579,914,053.08 561,800,403.72

Including： The parent company and the group holding

owned subsidiary use the confined cash and cash equivalents.

45. Note of statement of changes in the owner's equity

N/A

46. The assets with the ownership or use right restricted

N/A

47. Foreign currency monetary items

(1) Foreign currency monetary items

N/A

133

(2) Note to oversea entities

N/A

VI. Changes of merge scope

1. Business merger not under same control

N/A

2. Business combination under the same control

N/A

3. Counter purchase

N/A

4. The disposal of subsidiary

N/A

5. Other reasons for the changes in combination scope

N/A

6.Other

N/A

VII. Equity in other entities

1. Equity in subsidiary

(1) The structure of the enterprise group

Name of the subsidiary

Main

operating

place

Registrat

ion

place

Nature of business

Proportion of

shareholding Way of gaining

Directly Indirectly

Guangdong Fokai Expressway

Co., Ltd.Foshan

Guangzh

ou

Expressway

Management 75.00

Under the same

control business

combination

Guangfo Expressway Co., Ltd.Guangzho

u

Guangzh

ou

Expressway

Management 75.00

Under the same

control business

combination

Guangdong Expressway

Technology Investment Co.,

Ltd.

Guangzho

u

Guangzh

ou

Investment in

technical

industries and

provision of

relevant

100.00 Investment

Notes: holding proportion in subsidiary different from voting proportion:

N/A

134

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:

N/A

Significant structure entities and controlling basis in the scope of combination:

N/A

(2) Important Non-wholly-owned Subsidiary

Name of Subsidiary

Shareholding

Ratio of Minority

Shareholders (%)

Profit or Loss Owned

by the Minority

Shareholders in the

Current Period

Dividends

Distributed to the

Minority

Shareholders in the

Current Period

Equity Balance of

the Minority

Shareholders in

the End of the

Period

Guangfo Expressway Co.,

Ltd. 25.00 8,706,534.68 5,765,891.10 80,840,935.93

Holding proportion of minority shareholder in subsidiary different from voting proportion:

N/A

(3) The main financial information of significant not wholly owned subsidiary

Name

Year-end balance

Current assetsNon current

assetsTotal assets

Current

Liabilities

Non current

liabilitiesTotal liabilities

Fokai

Expressway Co.,

Ltd. 236,069,469.52 6,601,368,021.21 6,837,437,490.73 646,987,235.54 2,988,914,209.27 3,635,901,444.81

Guangfo

Expressway Co.,

Ltd. 234,242,576.76 307,555,511.10 541,798,087.86 215,005,855.49 3,428,488.64 218,434,344.13

Continued table

Name

Year-beginning balance

Current assetsNon current

assetsTotal assets

Current

Liabilities

Non current

liabilitiesTotal liabilities

Fokai

Expressway Co.,

Ltd. 388,547,874.68 6,793,866,995.82 7,182,414,870.50 1,063,021,312.75 3,011,634,462.76 4,074,655,775.51

Guangfo

Expressway Co.,

Ltd. 113,551,239.59 386,094,164.72 499,645,404.31 181,688,632.98 6,355,601.91 188,044,234.89

135

Continued table

Name


Business income Net profit

Total

Comprehensive

income

Cash flows from

operating activities

Fokai Expressway Co., Ltd. 538,224,330.57 106,946,157.32 106,946,157.32 441,026,160.52

Guangfo Expressway Co., Ltd. 177,462,820.98 34,826,138.70 34,826,138.70 114,226,183.66

Continued table

Name

Amount of previous period

Business income Net profit

Total

Comprehensive

income

Cash flows from

operating activities

Fokai Expressway Co., Ltd. 514,076,889.14 85,895,687.33 85,895,687.33 402,063,803.16

Guangfo Expressway Co., Ltd. 166,940,111.80 13,088,460.94 13,088,460.94 130,287,237.28

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt

N/A

(5) Provide financial support or other support for structure entities incorporate into the scope of

consolidated financial statements

N/A

2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary

N/A

136

3. Equity in joint venture arrangement or associated enterprise

(1) Significant joint venture arrangement or associated enterprise

NameMain operating

placeRegistration place Business nature

Proportion Accounting treatment of the

investment of joint venture or

associated enterpriseDirectly Indirectly

Guangdong Guanghui Expressway Co., Ltd.Guangzhou,

Guangdong

Guangzhou,

Guangdong

Expressway

Management 30.00 Equity method

Zhaoqing Yuezhao Highway Co., Ltd.Zhaoqing,

Guangdong

Zhaoqing,

Guangdong

Expressway

Management25.00

Equity method

Beijing Gelin Enze Beijing BeijingOrganic fertilizer

production and sell 35.00 Equity method

Shenzhen Huiyan Expressway Co., Ltd.Shenzhen

Guangdong

Shenzhen

Guangdong

Expressway


Jingzhu Expressway GuanzhuGuangdong

Zhongshan

Guangzhou

Guangdong

Expressway


Guangdong Jiangzhong Expressway Co., Ltd.Guangdong

Zhongshan

Guangzhou

Guangdong

Expressway


Ganzhou kangda Expressway Co., Ltd.Guangdong

Zhongshan

Guangzhou

Guangdong

Expressway


Ganzhou Gankang Expressway Co., Ltd.Guangdong

Zhongshan

Guangzhou

Guangdong

Expressway


Guangdong Yueke Technology Petty Loan Co., Guangzhou, Guangzhou, Hande all kinds of small 20.00 Equity method

137

NameMain operating

placeRegistration place Business nature

Proportion Accounting treatment of the

investment of joint venture or

associated enterpriseDirectly Indirectly

Ltd. Guangdong Guangdong loans

Asian Kitchen & Bath City Co., Ltd.Heshan,

GuangdonHeshan, Guangdon

Real estate

Development and sales 15.00 Equity method

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

N/A

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not have a significant impact:

Guangdong, Jiangzhong Expressway Co., Ltd and Asian Kitchen & Bath City Co.,

Ltd.. holds 20% of the voting rights, but has the power to participate in making decisions on their financial and operating decisions, and therefore deemed to be able to exert significant influ

ence over the investee.

(2) Main financial information of significant joint venture

①The current period.

Name Current assets Including：

Cash and cash

equivalent

Non-current assets Total assets Current

liabilities

Non-current

liabilities

Total liabilities Minori

ty

interes

t

Shareholders’

equity

attributable to

shareholders of

the parent

company

Pro rata share of

the net assets cal

culated

Guangdong

Guanghui

Expressway

Co., Ltd. 809,973,383.49 477,245,350.51 4,684,943,463.34 5,494,916,846.83 783,616,066.40 895,314,447.01 1,678,930,513.41 3,815,986,333.42 1,144,795,900.03

138


Cash and cash

equivalent

Non-current assets Total assets Current

liabilities

Non-current

liabilities

Total liabilities Minori

ty

interes

t

Shareholders’

equity

attributable to

shareholders of

the parent

company

Pro rata share of

the net assets cal

culated

Zhaoqing

Yuezhao

Highway Co.,

Ltd. 234,922,631.52 147,312,683.97 1,949,606,005.35 2,184,528,636.87 133,444,541.53 893,833,777.48 1,027,278,319.01 1,157,250,317.86 289,312,579.47

Continued table

Name

Adjustment item The book value o

f equity investme

nts in joint ventu

res

The fair val

ue of the e

xistence of

a public off

er of equity

investment

s in joint v

entures

Business income Financial

expenses

Income Tax

expesnses

Net profit Net profi

t from di

scontinue

d operati

ons

Other

Com

prehe

nsive

inco

me

Total

Comprehensive

income

Dividends recei

ved from associ

ates during the

year

Good

will

internal tr

ading unr

ealized pr

ofits

Other

Guanghui

Expressway Co.,

Ltd. 1,144,795,900.03 787,594,239.51 32,134,388.46112,915,289.96 338,745,869.79 338,745,869.79 150,000,000.00

Zhaoqing

Yuezhao 289,312,579.47 242,821,675.27 24,434,908.85 20,906,815.95 64,636,934.25 64,636,934.25

139

Name


f equity investme

nts in joint ventu

res

The fair val

ue of the e

xistence of

a public off

er of equity

investment

s in joint v

entures


expenses

Income Tax

expesnses

Net profit Net profi

t from di

scontinue

d operati

ons

Other

Com

prehe

nsive

inco

me

Total

Comprehensive

income

Dividends recei

ved from associ

ates during the

year

Good

will

internal tr

ading unr

ealized pr

ofits

Other

Highway Co.,

Ltd.

②The last period


Cash and cash

equivalent

Non-current assets Total assets Current liabilities Non-current

liabilities

Total liabilities Minorit

y

interest

Shareholders’

equity

attributable to

shareholders of

the parent

company

Pro rata share of t

he net assets calc

ulated

Guangdong

Guanghui

Expressway

Co., Ltd. 853,819,598.11 560,176,135.18 4,818,629,336.12 5,672,448,934.23 883,377,158.97 811,831,311.63 1,695,208,470.60 3,977,240,463.63 1,193,172,139.09

Zhaoqing

Yuezhao

Highway Co.,

Ltd. 161,028,516.96 143,525,298.03 1,972,706,369.16 2,133,734,886.12 259,091,187.54 782,030,314.97 1,041,121,502.51 1,092,613,383.61 273,153,345.90

140

Continued table

Name


f equity investme

nts in joint ventu

res

The fair va

lue of the e

xistence of

a public off

er of equity

investment

s in joint v

entures


exprenses

Income tax Nep profit Net p

rofit

from

disco

ntinu

ed op

erati

ons

Other

Com

prehe

nsive

inco

me

Total

Comprehensive

income

Dividends rece

ived from asso

ciates during t

he year

Good

will

internal t

rading un

realized

profits

Other

Guangdong

Guanghui

Expressway Co.,

Ltd. 1,193,172,139.09 701,582,423.18 49,006,290.42 96,901,420.47289,770,004.45 289,770,004.45

Zhaoqing

Yuezhao

Highway Co.,

Ltd. 273,153,345.90 255,506,103.42 32,675,465.62 31,086,011.69 97,570,794.75 97,570,794.75

(3) Main financial information of significant associated enterprise

①The current period.

Name Current assets Non-current assets Total assets Current liabilities Non-current

Liabilities

Total liabilities Minority interest Shareholders’

equity attributable

to shareholders of

the parent

company

Pro rata share of th

e net assets calcula

ted

141


Liabilities


equity attributable

to shareholders of

the parent

company



ted

Shenzhen Huiyan

Expressway Co.,

Ltd.

338,517,687.66 168,280,333.88 534,165,343.79 118,613,661.46 265,707.12 118,879,368.58 415,285,975.21 138,428,658.40

Jingzhu

Expressway

Guanzhu

386,383,290.55 3,257,081,763.83 4,220,179,609.03 266,804,297.85 2,218,224,167.93 2,485,028,465.78 1,735,151,143.25 347,030,228.65

Guangdong

Jiangzhong

Expressway Co.,

Ltd.

97,934,685.62 2,191,438,252.12 2,289,372,937.74 316,595,309.42 784,500,000.00 1,101,095,309.42 1,188,277,628.32 178,241,644.25

Ganzhou KangdaExpressway 14,858,682.31 1,486,722,723.25 1,634,662,623.79 26,151,282.20 1,015,991,878.04 1,042,143,160.24 592,519,463.55 177,755,839.07

GanzhouGankangExpressway Co.,Ltd.

331,300,972.22 1,567,726,330.34 1,899,027,302.56 173,572,833.52 1,041,140,805.70 1,214,713,639.22 684,313,663.34 205,294,098.99

Guangdong

Yueke

Technology Petty

Loan Co., Ltd.

913,434,703.73 125,591,293.45 1,039,025,997.18 8,531,370.13 1,022,808.22 9,554,178.35 1,029,471,818.83 205,894,363.77

Asian Kitchen &

Bath City Co.,

Ltd.

326,150,529.08 7,373,573.62 333,524,102.70 195,837,593.42 24,800,000.00 220,637,593.42 112,886,509.28 16,932,976.39

142

Continued table

Name


f equity investme

nts in joint ventu

res

The fair value of

the existence of a

public offer of e

quity investment

s in joint venture

s

Buinsess incme Net profit Net profi

t from di

scontinu

ed operat

ions

Other

comprehe

nsive

income

Total

comprehensive

income

Dividends receiv

ed from associat

es during the yea

r

Goodwill internal trading

unrealized pro

fits

Other

Shenzhen Huiyan

Expressway Co., Ltd.138,428,658.40 96,093,908.58 32,688,059.55 32,688,059.55 3,333,000.00

Jingzhu Expressway

Guanzhu347,030,228.65 527,964,879.75 180,291,546.40 180,291,546.40

Guangdong

Jiangzhong

Expressway Co., Ltd.

178,241,644.25 202,641,512.94 31,063,757.09 31,063,757.09

Ganzhou KangdaExpressway 176,967,858.17 118,859,388.33 42,564,485.24 42,564,485.24

Ganzhou GankangExpressway Co., Ltd. 205,294,099.00 95,640,534.67 22,225,070.15 22,225,070.15

Guangdong Yueke


Co., Ltd.

205,894,363.77 23,099,169.06 9,139,346.98 9,139,346.98


City Co., Ltd.241,995.07 -1,998,834.50 15,176,136.96 -11,428,619.20 -11,428,619.20

②The last period.

143


Liabilities


equity attributable

to shareholders of

the parent

company



ted

Shenzhen Huiyan

Expressway Co.,

Ltd. 250,781,000.18 229,468,527.79 509,749,368.90 26,677,726.27 407,467.63 27,085,193.90 482,664,175.00 160,888,058.33

Jingzhu

Expressway

Guanzhu 198,920,064.37 3,367,963,818.61 4,162,929,651.88 179,662,563.77 2,418,741,884.16 2,598,404,447.93 1,564,525,203.95 312,905,040.79

Guangdong

Jiangzhong

Expressway Co.,

Ltd. 110,167,303.95 2,261,632,507.08 2,371,799,811.03 294,335,939.80 920,250,000.00 1,214,585,939.80 1,157,213,871.23 173,582,080.68

Ganzhou KangdaExpressway 19,407,920.01 1,510,947,126.50 1,663,436,264.78 31,252,072.00 1,083,542,515.93 1,114,794,587.93 548,641,676.85 164,592,503.05

GanzhouGankangExpressway Co.,Ltd. 306,852,845.90 1,616,491,879.42 1,923,344,725.32 192,345,332.26 1,038,910,799.87 1,231,256,132.13 692,088,593.19 207,626,577.95

Guangdong

Yueke

Technology Petty

Loan Co., Ltd. 932,110,436.51 95,637,640.96 1,027,748,077.47 7,415,605.62 7,415,605.62 1,020,332,471.85 204,066,494.37

Asian Kitchen &

Bath City Co.,

Ltd. 231,110,392.43 5,344,656.82 236,455,049.25 117,441,965.30 117,441,965.30 119,013,083.95 17,851,962.59

144

Continued table

Name


f equity investme

nts in joint ventu

res

The fair valu

e of the exist

ence of a pub

lic offer of e

quity invest

ments in join

t ventures

Business income Net profit Net profit f

rom discon

tinued oper

ations

Other

compreh

ensive

income

Total

Comprehensive

income

Dividends receiv

ed from associat

es during the yea

rGoodwill internal trading

unrealized pro

fits

Other

Shenzhen Huiyan

Expressway Co., Ltd. 160,888,058.33 109,916,174.08 42,470,267.41 42,470,267.41 35,000,000.00

Jingzhu Expressway

Guanzhu 312,905,040.79 495,422,620.07 160,036,386.77 160,036,386.77 16,648,284.74


Expressway Co., Ltd. 173,582,080.68 184,427,524.48 19,729,091.69 19,729,091.69

Ganzhou KangdaExpressway 164,592,503.05 113,740,917.00 30,310,353.16 30,310,353.16

Ganzhou GankangExpressway Co., Ltd. 207,626,577.95 82,994,061.67 11,897,440.02 11,897,440.02

Guangdong Yueke


Co., Ltd. 204,066,494.37 13,208,617.55 5,591,002.16 5,591,002.16


City Co., Ltd. 241,995.07 -1,998,834.50 16,095,123.16 -2,274,296.85 -2,274,296.85

145

(4) Summary financial information of insignificant joint venture or associated enterprise

Beijing Genlin Enze Organic Fertilizer Co.,Led. investment cost was RMB 6,614,483.90, for the 35% stake. The company under the equity method of accounting, the book value of long-ter

m equity investment has been reduced to zero.

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the Company.

N/A

（6）The excess loss of joint venture or associated enterprise

In RMB

Beijing Genlin Enze Organic Fertilizer Co.,Led. investment cost was RMB 6,614,483.90, for the 35% stake. The company under the equity method of accounting, the book value of long-ter

m equity investment has been reduced to zero.

(7) The unrecognized commitment related to joint venture investment

N/A

(8) Contingent liabilities related to joint venture or associated enterprise investment

N/A

146

4. Significant common operation

N/A

5. Equity of structure entity not including in the scope of consolidated financial statements

N/A

6.Other6.Other

N/A

VIII. Risks Related to Financial Instruments

The major financial instruments of the company include monetary capital, accounts receivable and accounts payable.

These financial instruments are primarily related to operating and financing. For the details of the financial instruments,

please refer to the related projects in Notes 5. The risk relevant to these financial instruments and the risk management

policy adopted by the company for reducing these risks are described as below:

1. Credit Risk

The credit risk means that the party of the financial instrument fails to perform the obligations, and the risk of the financial

loss is caused for the other party. The company is mainly facing the customer credit risk due to the credit sale. In order to

reduce the credit risk, the company only makes transactions with the recognized and reputable customers, and carries out

the continuous monitoring of accounts receivable through monitoring the credit of the existing customers and the aging

analysis, in order to ensure the company not facing the risk of bad debts and control the overall credit risk within the

controllable range.

2. Interest Rate Risk

The interest rate risk refers to the fluctuation risk appearing for the fair value of financial instruments or future cash flows

due to the changes in market interest rate. The interest rate risk faced by the company is mainly from the bank borrowings.

Through the establishment of good relations between banks and enterprises, the company makes the reasonable design of

credit range, credit variety and credit limit to guarantee the sufficient credit range of the banks and meet the financing

demands. Shortening the duration of single borrowings and especially stating the prepayment terms is to reasonably reduce

the risk of the interest rate fluctuations.

3. Foreign Exchange Risk

The foreign exchange risk refers to the fluctuation risk appearing for the fair value of financial instruments or future cash

flows due to the changes in foreign exchange rate. The company matches the income and expenditure of foreign currency

as far as possible in order to reduce the foreign exchange risk. During the reporting period, the company has little effect on

the foreign exchange risk due to the short credit term of revenue and expenditure related to the foreign currency.

4. Liquidity Risk

The liquidity risk means that the risk of the shortage of funds occurs when the settlement obligations by the delivery of the

cash or other financial assets are fulfilled by the company. The policy of the company is to ensure the sufficient cash for

repaying the matured debts. The liquidity risk is under the centralized control of Finance department of the company, and

Finance department shall guarantee the company having the sufficient funds to repay the debts under any reasonable

forecast through monitoring the cash balance, the marketable securities available to be cash and the rolling forecast for the

cash flow of the next six months.

5. Other Price Risk

147

The company holds the equity investment of other listed companies, and the management believes that these investments

facing the market price risk is acceptable. For the equity investment of other listed companies held by the company, please

refer to “Available-for-Sale Financial Assets in Article 8 of Consolidated Financial Statement in Notes 5 of Financial

Statements”.

IX. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

Items

Closing fair value

Fir value

measurement items at

level 1

Fir value

measurement

items at level 2

Fir value

measurement

items at level 3

TotaL

I. Consistent fair value

measurement

（1）

Financial assets measured by fair value with

changes in fair value recognised in profit or

loss

1. Trading financial assets

（1）Debt instrument investment

（2）Equity instrument investment

（3）Derivative financial assets

2.

Financial assets designated at fair value through profit or loss


（2）Equity instrument investment

2.Available for sale financial assets 1,260,966,499.84 1,260,966,499.84


（2）Equity instrument investment 1,260,966,499.84 1,260,966,499.84

（3）Other

3.Real Estate Investment

Lease of land use rights

148

Items

Closing fair value

Fir value

measurement items at

level 1

Fir value

measurement

items at level 2

Fir value

measurement

items at level 3

TotaL

Leased buildings

3.Held and prepared for transfer after apprec

iation of land use rights

4.Biological assets

1.Consumable biological assets

2.Productive biological assets

Total of Consistent fair value measurement 1,260,966,499.84 1,260,966,499.84

5. Trading financial Libilitity

Thereinto：Trading bonds issued

Derivative financial Libilitity

Other

6.

Financial Liabilities designated a

t fair value through profit or loss

Liabilitity Total of Consistent fair value

measurement

II.Non-continuous measurement fair value

（1）Available for sale financial assets

.Assets total of Non-continuous

measurement fair value

.Liability total of Non-continuous

measurement fair value

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, 2015 of RMB 5.36, the final calculation of fair value was RMB

1,260,966,499.84.

149

3. Valuation technique adopted and nature and amount determination of important parameters for

consistent and inconsistent fair value measurement items at level 2.

N/A

4. Valuation technique adopted and nature and amount determination of important parameters for

consistent and inconsistent fair value measurement items at level 3.

N/A

5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and

closing book value of consistent fair value measurement items at level 3.

N/A

6. Explain the reason for conversion and the policy governing when the conversion happens if conversion

happens among consistent fair value measurement items at different levels

N/A

7. Changes in the valuation technique in the current period and the reason for change

N/A

8. Fair value of financial assets and liabilities not measured at fair value

N/A

9.Other9.Other

N/A

X.Related parties and related-party transactions

1. Parent company information of the enterprise

NameRegistered

addressNature

Registrated

capital

The parent

company of

the

Company's

shareholding

ratio

The parent

company of the

Company’s

vote ratio

Guangdong

communication

Group Co., Ltd

No. 27,

Baiyyun

Road,Yuexiu

Equity management,

traffic infrastructure

construction and2,680,000.00 40.84 43.61

150

NameRegistered

addressNature

Registrated

capital

The parent

company of

the

Company's

shareholding

ratio

The parent

company of the

Company’s

vote ratio

District ,

Guangzhou.

railway project

operation

-Notes ：

Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal representative: Li Jing. Date

of establishment: June 23, 2000. As of June 30, 2015,Registered capital: RMB 26.8 billion. It is a solely state-owned

limited company. Business scope： equity management, organization of asset reorganization and optimized allocation,

raising funds by means including mortgage, transfer of property rights and joint stock system transformation, project

investment, operation and management, traffic infrastructure construction, highway and railway project operation and

relevant industries, technological development, application, consultation and services, highway and railway passenger and

cargo transport, ship industry, relevant overseas businesses; The value-added telecom business.

The finial control of the Company was Guangdong communication Group Co., Ltd.

2.Subsidiaries of the Company

Subsidiaries of this enterprise, see Note VII the rights of other entity

3. Information on the joint ventures and associated enterprises of the Company

The details Notes VII of significant joint venture and associated enterprise of the Company

Information on other joint venture and associated enterprise of occurring related party transactions with the Company in

reporting period, or form balance due to related party transactions in previous period: N/A

4. Other Related parties

Name Relation with the Company

Guangdong Changda highway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Hualu communication Technology

Co., Ltd.Fully owned subsidiary of the parent company

Guangzhou Xinruan Computer Technology

Co., LtdFully owned subsidiary of the parent company

Guangdong Xinyue Communication Investment


Guangdong Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company


Co., LtdFully owned subsidiary of the parent company

Guangdong East Thinking Management Fully owned subsidiary of the parent company

151

Name Relation with the Company

Technology Development Co., Ltd.

Guangdong Kaiyang Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Highway Construction Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Shenshan West Expressway Co.,

Ltd.Fully owned subsidiary of the parent company

Guangdong Yangmao Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Luqiao Consrtuction Development


Guangdong Yunwu Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Taishan Coastal Expressway Co.,

LtdFully owned subsidiary of the parent company

Yunfo Guangyun Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Yuzhan Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Zhaoyang Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Xinlu Adverting Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Lulutong Co., Ltd. Fully owned subsidiary of the parent company

Guangdong Gaoda Property Development Co.,

Ltd.Fully owned subsidiary of the parent company

Guangdong Shanfen Expressway Co., Ltd. Fully owned subsidiary of the parent company

Guangzhou Xinyue Asphalt Co., Ltd. Fully owned subsidiary of the parent company

5. List of related-party transactions

1)Information on acquisition of goods and reception of labor service

Related partiesContent of related

transaction

Amount in current

periodAmount in last period

1.Business cost

Guangdong Changda highway Co., Ltd. Project fund 2,509,653.00

Guangdong Hualu communication

Technology Co., Ltd.Project fund

127,500.00


Co., Ltd.Project fund

153,920.00

Subtotal 127,500.00 2,663,573.00

152

Related partiesContent of related

transaction

Amount in current

periodAmount in last period

3.Financial expenses

Guangdong Expressway Co., Ltd. Interest 3,604,166.64

Ganzhou Gankang Expressway Co.,Ltd. Interest 171,012.91

Subtotal 3,775,179.55

4. Construction in progress

Guangdong Xinyue Communication

Investment Co., Ltd.Project fund 5,474,321.50


Technology Co., Ltd.Project fund 356,051.03


Co., Ltd.Project fund 5,771,846.00

Subtotal 11,602,218.53

5.Fixed assets

Guangdong Xinyue Communication

Investment Co., LtdPurchasing assets

2,114,545.72

Subtotal 2,114,545.72

Related transactions on sale goods and receiving services

Related party Content Amount of current

period


1.Business income

Guangdong Expressway Co., Ltd. Project fund 2,079,150.00 2,292,150.00

Guangdong Kaiyang Expressway Co., Ltd. Project fund 146,035.68 146,035.68

Guangdong Guangle Expressway Co., Ltd. Project fund 93,000.00

Guangdong Guanghui Expressway Co.,Ltd. Project fund 90,000.00

Guangdong Shenshan West Expressway Co.,

Ltd.Project fund 108,000.00

153

Related party Content Amount of current

period


Guangdong Yangmao Expressway Co.,Ltd. Project fund 60,000.00 60,000.00

Guangdong Maozhan Expressway Co.,Ltd. Project fund 48,000.00

Guangdong Yunwu Expressway Co., Ltd. Project fund 69,000.00

Guangdong Taishan Coastal Expressway Co.,

LtdProject fund 30,000.00 30,000.00

Yunfo Guangyun Expressway Co., Ltd. Project fund 16,500.00

Guangdong Yuzhan Expressway Co., Ltd. Project fund 51,000.00

Zhanqing Guanghe Expressway Co., Ltd. Project fund 40,500.00

Subtotal 2,831,185.68 2,528,185.68

（2）Related trusteeship/contract

N/A

（3）Information of related lease

The Company was lessor：

Name of lesseeCategory of lease

assets

The lease income

confirmed in this year

The lease income confirmed

in last year

Guangdong Xinlu Advertising Co.,

Ltd.

Advertising lease921,864.26

Asian Kitchen & Bath City Co.,

Ltd.

Advertising lease3,492,000.00 275,000.00

Subtotal 3,492,000.00 1,196,864.26

The company was lessee：

LessorCategory of leased

assets

The lease income

confirmed in this yearCategory of leased assets


Investment Co., Ltd

Office space

4,270,536.004,200,528.00

Guangdong Guanghui Expressway

Co., Ltd.

Advertising column le

ase

215,880.001,650,000.00

154

LessorCategory of leased

assets

The lease income

confirmed in this yearCategory of leased assets

Guangdong Gaoda Property

Development Co., Ltd.

Office space584,864.65

Zhaoqing Yuezhao Highway Co.,

Ltd.

Advertising column le

ase 118,125.00 112,500.00

Subtotal a 4,604,541.00 6,547,892.65

（4）Related-party guarantee

The Company was Guarantor

N/A

The Company was secured party

Guarantor Guarantee amount Start date End dateExecution accomplished

or not

Guangdong Communication Group

Co., Ltd.

1,500,000,000.00

2012-09-25 2021-07-25 No

Notes:

Controlling shareholder Guangdong Communication Group Co., Ltd. accepted Pacific Asset Management Co., Ltd.

insurance debt investment plan to provide joint liability guarantee of principal and interest in full and unconditional

irrevocable. The company held Fokai Expressway Co., Ltd. 75% stake in Guangdong Communication Group Co., Ltd. to

provide a counter-guarantee.

(5) Inter-bank lending of capital of related parties

Related partyAmount borrowed

and loanedInitial date Due date Notes

Borrowed

Guangdong Expressway Co., Ltd. 125,000,000.00 2014-12-11 2017-12-10Early repayment in June 2015

(6) Related party asset transfer and debt restructuring

N/A

155

(7) Rewards for the key management personnel


Rewards for the key management

personnel 2.27million 2.42million

(8) Other related-party transactions

N/A

6. Receivables and payables of related parties

（1）Receivables

Name Related party

Amount at year end Amount at year beginning

Balance of BookBad debt

Provision

Balance of

Book

Bad debt

Provision

Account

receivabl

Guangdong Expressway Co.,

Ltd.2,196,650.00 117,500.00

Guangdong Kaiyang

Expressway Co., Ltd.324,578.47 364,142.79

Zhaoqing Yuezhao Highway

Co., Ltd. 201,236.00 815,580.00

Guangdong Shenshan West

Expressway Co., Ltd.108,000.00

Guangdong Guanghui


Guangdong Yunwu Expressway

Co., Ltd.69,000.00 69,000.00

Guangdong Yangmao


Guangdong Yuzhan Expressway 51,000.00

156

Name Related party



Provision

Balance of

Book

Bad debt

Provision

Co., Ltd.

Subtotal 3,100,464.47 1,366,222.79

Prepayable

account

Zhanqing Yuezhao Highway

Co., Ltd.13,125.00 131,250.00

Subtotal 13,125.00 131,250.00

Dividend

receivable

Ganzhou Gankang Expressway

Co., Ltd.9,000,000.00

Shenzhen Huiyan Expressway

Co., Ltd.29,667,000.00

Subtotal 38,667,000.00

Other

Account

receivable

Beijing Gelin Enze 4,007,679.91 4,007,679.91 4,007,679.91 4,007,679.91


Investment Co., Ltd.1,435,856.00 1,485,856.00

Guangdong Xinlu Advertising

Co., Ltd.1,293,717.42 1,105,350.72

Guangdong Guanghui


Zhaoqing Yuezhao Highway

Co., Ltd. 447,849.00 509,027.00

Guangdong Maozhan


157

Name Related party



Provision

Balance of

Book

Bad debt

Provision

Guangdong Yunwu Expressway

Co., Ltd.103,608.96

Guangdong Expressway Co.,

Ltd.39,654.00 39,654.00

Guangdong Kaiyang


Guangdong Highway

Construction Co., Ltd.12,891.00 12,891.00

Guangdong Luqiao

Construction Development Co.,

Ltd.

9,327.70 9,327.70

Asian Kitchen & Bath City Co.,

Ltd.3,320,958.00

Guangdong Xinyue

Communication Investment Co.,

Ltd.

2,158.60

Subtotal 8,230,111.10 4,007,679.91 11,411,200.27 4,007,679.91

Notes：Those related transactions which are stipulated to be settled account by net amount should charge the related

party and state with the amount after offset.

（2）Payables

Name Related party Amount at year endAmount at year

beginning

Account payable

Guangdong Changda highway Co., Ltd 9,098,244.00 8,993,525.00

Guangdong Expressway Co., Ltd. 8,746,491.18 13,728,261.18

Guangdong Guanghui 5,526,792.01 9,665,632.01

158


beginning

Expressway Co., Ltd.


Co., Ltd.188,480.44 981,094.28


Technology Co., Ltd.

730,767.25 598,676.96

Guangzhou Xinruan Computer Technology Co.,

Ltd691,088.60 577,238.60

Guangdong East Thinking Management

Technology Development Co., Ltd.

78,234.00 78,234.00

Subtotal 25,060,097.48 34,622,662.03

Interest payable

Guangdong Expressway Co., Ltd. 229,166.67

Subtotal 229,166.67

Dividend payable

Zhujiang Construction investment Co., ltd. 5,189,301.99

Guangdong Expressway Co., Ltd. 3,292,301.60

Subtotal 8,481,603.59

Other payable

Guangdong Changda highway Co., Ltd 51,534,456.90 80,168,435.24

Guangdong Expressway Co., Ltd. 4,716,108.15 127,265,564.22

Guangdong Lulutong Co., Ltd 2,170,272.00

Guangzhou Xinruan Computer Technology Co.,

Ltd478,147.30 478,147.30


Co., Ltd.335,723.51 339,485.26

Guangdong Hualu communication 141,526.39 141,526.39

159


beginning

Technology Co., Ltd.

Guangdong Lulutong Co., Ltd 66,604.23 66,604.23

Guangdong Xinlu Adverting Co., Ltd. 20,000.00 20,000.00

Subtotal 59,462,838.48 208,479,762.64

Long-term payable

Ganzhou Gankang Expressway Co., Ltd. 50,000,000.00

Subtotal 50,000,000.00

XI. Stock payment

N/A

XII.Commitments

1.Significant commitments

This matter. did not occur in this accounting period. During the reporting period.

2.Contingency


XIII. Events after balance sheet date

1.Significant events had not adjusted

N/A

2.Profit distribution

N/A

3.Sales return

N/A

160

4.Notes of other significant event after balance sheet date

N/A

XIV.Other significant events

1.The accounting errors correction in previous period


2.Debt restructuring


3.Replacement of assets


4.Pension plan

The company does not disclose the pension plan undisclosed matter should exist.

5.Discontinuing operation

This matter. did not occur in this accounting period. During the reporting period,.

6.Segment information

The company's business for the Guangfo Expressway and the Fokai Expressway toll collection and maintenance work, the

technology industry and provide investment advice, no other nature of the business, no reportable segment.

7.Other important transactions and events have an impact on investors decision-making

The toll collection period of Jiujiang Bridge of No. 325 National Highway owned by Jiujiang Bridge Branch of

Guangdong Fokai Expressway Co., Ltd., a controlled subsidiary of the Company, which was approved by Ministry of

Communications, is 30 years. Up to the present, the accumulative toll collection period is 25 years. According to the

Notice of Relevant Matters Concerning Quickening Special Clearing of Toll Highways in Guangdong Province (Yue Jiao

Ming Dian (2013) No. 56 Document), the rectification measure proposed for Jiujiang Bridge is "toll collection period shall

be no more than 20 years". The result of rectification is "toll collection shall be cancelled due to the expiration of toll

collection period." As required by this document, Jiujiang Bridge will stop toll collection from 24:00 of June 30, 2013.

Jiujiang Bridge is a construction project in which an enterprise under provincial administration invested. As for relevant

problems occurred after rectification, the Provincial State-owned Assets Commission shall coordinate in handling such

problems according to the requirements of the document.

In view of the cancellation of tolls, the relevant assets on Jiujiang Bridge are neither owned or controlled by the

161

company, nor brings any economic benefits to enterprise in future. According to the provision of Accounting Standards, the

company has made disposal of the assets at the end of 2013, and the relevant losses have been recorded into the annual

expenses outside of operation in 2013.

In May 2014, the company received Guangdong Provincial People's Government Office documents on the opinions

of the compensation for cancellation fee of Jiujiang Bridge as follow. The loss to the company resulted from the early

cancellation of Jiujiang Bridge toll fee will be compensated by Guangdong Communication Group. The provincial SASAC

conjunction with relevant units will examine the compensation amount base on Provincial Legal Office; work with

Provincial Department of Finance to make the compensation arrangements for provincial government to approve.

As of the date of this report, the Company has not reached agreement with governmental departments through

consultation in respect of the scheme for project benefit compensation or asset disposal after the enforcement of the

above-mentioned notice. As the influence of this matter on the Company is quite uncertain, it is impossible to appraise the

influence on the operating status and financial position of the Company.

⑵On June 30, 2015, The 18th (Provisional) Meeting of the Seventh Board of Directors adopted theProposal of Guangdong Provincial Expressway Development Co., Ltd. issued shares to raise cash to buyassets and related transactions matching funds plan.The company intends through the issuance of Ashares to purchase 25% stake of Fokai hold by Provincial Expressway, and Guangzhu 100% stake heldby transportation construction company, purchase by cash of the Guangzhu East's debt held by theconstruction company. Moreover，The company intends to non-public offering of A shares to raisematching funds to Yadong Fuxing Yalian Investment Co., Ltd., Tibet Yingyue Investment ManagementCo.,Ltd. and Guangfa Securities Co., Ltd. To pay the transaction cash consideration, the transactiontaxes and supplement working capital of listed companies, the amount of matching funds to be raised nomore than RMB 1650 million, assets to be purchased no more than 100% of the transaction price.

As of the reporting date, the above-mentioned major reorganization has not been completed

8.Other

(1)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii035ǁ collision owned by the controlling subsidiary of the company Guangdong Fokai ExpresswayCompany leads the collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10,2009, Jiujiang Bridge opened to traffic has been restored.

On June 19,2007， The Ministry of Communications, the State Production Safety Supervision and Administration

Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15 "Jiujiang Bridge Collision

Accident", initially determined the causes of the accident are: the incident ship suddenly met heavy fog on the way from

Foshan Gaoming to Sunde, the captain neglected looking out, did not take proper measures and deviated from the main

channel, touched the 325 National Road Jiujiang Bridge the non-navigation bridge pier and caused the collapsion of part of

the Jiujiang bridge. The accident was an uN/Aateral responsibility of the ship.

On July 19,2007， Fokai Company applied preservation of property to Guangzhou Maritime Court.On August

22,2007， Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping

Company Limited and Yang Xiong to undertake the conpensation 25,587,684 yuan for the loss caused by collapsion of

Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa

No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case was suspended.

After the court accepted the case, the incident investigation team of Guangdong Provincial Government had not made

162

the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the proceeding. In

September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed the proceedings. On

December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case. Currently, Guangzhou Haizhu

prosecutorial office was intend to prosecute the accident captain Shi Guide, therefore, on January 5, 2009, Guangzhou

Maritime Court ruled the suspension of the case. On September 17, 2013, the Guangzhou Maritime Court issued a notice

of civil and eliminate the cause of suspension of proceedings, the court decided to resume the trial. On December 19, 2013,

the Guangzhou Maritime Court opened a court session, has not yet made the first-instance judgment. On March 7, 2014 the

Court made the first instance verdict: the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong

compensated the plaintiff Fokai Expressway Co., Ltd. toll revenue losses of RMB 19,357,500.96; the court dismissed the

plaintiff other aspirations. The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong

Provincial Higher People's Court ruled on June 5, 2014, the case discontinued proceedings.

(2)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial Expressway Development Co.,

Ltd. was held of May 10, 2012. The meeting examined and adopted the proposal Concerning the Company’s Accepting

the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. The Company was approved to accept the

insurance bond investment plan made by Pacific Asset Management Co., Ltd. The amount of proceeds to be raised is not

more than RMB 1.5 billion . Floating interest rate plus guaranteed base interest rate applies as the interest rate. The

Floaing interest rate shall not exceed the basic interest rate of RMB loan with a term of over five years on the day when

the investment fund of the insureance company is transferred into the Company’s account and the corresponding days of

the future years, which shall be adjusted once each year. The guaranteed base interest rate is 5.6%. The concrete amount

of raised proceeds shall be within maximum limit of investment fund filed with CIRC. The actual amount wholly

transferred to the Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan

between Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the

Company to implement the above-mentioned matters.

The Company was approved to provide counter guarantee to Guangdong Communication Group Co.,Ltd.with 75%

equity of Guangdong Fokai Expressway Co., Ltd. Held by it . as of December 31, 2014, the company has borrowed RMB

1.5 billion.

XV..Notes s of main items in financial reports of parent company

1.Other account receivable

（1）Other account receivable classified by category

Classification

Year-end balance

Book balance Provision for bad debts

Book valueAmount

Proportio

n(%)Amount

Proportio

n(%)




32,084,893.35 88.63 32,084,893.35 100.00

Other Account receivable 4,117,302.41 11.37 1,658,571.80 40.28 2,458,730.61

163

Classification

Year-end balance


Book valueAmount

Proportio

n(%)Amount

Proportio

n(%)


group of credit risk characterstics




Total 36,202,195.76 100.00 33,743,465.15 93.21 2,458,730.61

Continued table

Classification

Year-beginning


Book valueAmount

Proportio

n(%)Amount

Proportio

n(%)



debt provision for single item 32,084,893.35 88.44 32,084,893.35 100.00



group of credit risk characterstics 4,194,818.04 11.56 1,658,571.80 39.54 2,536,246.24




Total 36,279,711.39 100.00 33,743,465.15 93.01 2,536,246.24

- Other Receivable accounts with large amount individually and bad debt provisions were provided

Name

Balance at year-end

Other receivableProvision for

bad debtsProportion% Reason

Kunlun Securities Co., Ltd. 32,084,893.35 32,084,893.35 100.00 Notes 1

Total 32,084,893.35 32,084,893.35

Notes1：

164

For the balance amount of our company’s secutity trading settlement funds RMB 33,683,774.79 deposited in Kunlun

Securities Co., Ltd., The Xin’Ning Municipal intermediate People’s Court of Qinghai Province had made the judgment in

accordance with the law and declared on November 11, 2006. that Kunlun Securities Co., ltd. was bankrupted for debt

payment . In March of 2007, the liquidating group of Kunlun Securities preliminary judged the relationship between our

company and Kunlun Securities Co., Ltd.is debtor creditor relationship . as Kunlun Securities Co., Ltd.was bankrupted for

debt payment and it is in serious insolvency. Our company had moved the security trading settlement funds deposited in

Kunlun Securities Co., Ltd, to other receivables account for reflection, we also have made full amount provision for had

debts based on conservatism principle. The recovered debt amount in 2008 is RMB485,392.67 which had been offset

from the provision for bad debts. The recovered debt amount in 2011 is RMB 667,959.27 which had been offset from the

provision for bad, The recovered debt amount in 2014 is RMB 445,529.50 which had been offset from the provision for

bad debts.debts.

- In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:

AgingBalance at year-end

Other receivable Provision for bad debts Proportion%

Within 1 year 629,543.61

1-2 years

2-3 years

3-4 years

4-5 years

Over 5 years 1,658,571.80 1,658,571.80 100.00

Total 2,288,115.41 1,658,571.80 72.49

- In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:

Name Balance at year-end

Other receivable Bad debt

provision

Proportion（%） Reason

Guangdong Litong Real estate Investment Co.,

Ltd. 1,435,856.00Lease

deposit

Beijing Shibang Weilishi Property Managerment

Servises Co., Ltd.393,331.00 Deposit

Total 1,829,187.00

165

（2）Bad debt provision withdrawal, reversed or recovered in the report period

The amount of bad debt provision was RMB 0.00, the amount of reversed or recovered bad debt provision in the report

period RMB 0.00.

Significant amount of reversed or recovered bad debt provision:

N/A

（3）Partuculars of the actual verification of other accounts receivable during the reporting period

N/A

（4）Other receivables nature of fund classification information

Nature Book balance at year endBook balance at year

beginning

Guarantee deposit 1,829,187.00 1,829,187.00

Securities trading settlement funds balance 32,084,893.35 32,084,893.35

Other 2,288,115.41 2,365,631.04

Total 36,202,195.76 36,279,711.39

（5）The top five other account receivable classified by debtor at period end

Name NatureClosing

balanceAging Proportion%

Closing

balance of bad

debt provision

Kunlun Securities Co., Ltd.Securities trading se

ttlement funds 32,084,893.35Over 5

years88.63 32,084,893.35

Guangdong Litong Property Investment

Co., Ltd.Deposit 1,485,856.00

Within 3

years4.10

Heshan Communication Real estate

Development Co., Ltd.Current accounts 1,470,000.00

Over 5

years4.06 1,470,000.00

Beijing Shibang Weilishi Property

Managerment Servises Co., Ltd.Deposit 393,331.00

Within 3

years1.09

Huizhou Huxu Industry CompanyCurrent accounts

109,745.80Over 5

years0.30 109,745.80

166

Name NatureClosing

balanceAging Proportion%

Closing

balance of bad

debt provision

Total 35,543,826.15 98.18 33,664,639.15

（6）Account receivable involving government subsidies

N/A

（7）Other account receivable derecognied due to the transfer of financial assets

N/A

（8）Amount of transfer other account receivable and assets and liabilities formed by its continuousinvovement.

N/A

167

2. Long- term s equity investment

ItemsYear-end balance Year-beginning balance

Book balance Bad debt provision Book value Book balance Bad debt provision Book value

Investment to the

subsidiary 2,418,436,569.52 2,418,436,569.52 2,418,436,569.52 2,418,436,569.52

Investment to joint ventures and

associated enterprises 2,685,965,331.74 2,685,965,331.74 2,689,986,240.16 2,689,986,240.16

Total 5,104,401,901.26 5,104,401,901.26 5,108,422,809.68 5,108,422,809.68

（1）Investment to the subsidiary

Name Opening balance Increase Decrease Closing balance

Withdrawn

impairment provision

in the reporting

period

Closing balance of

impairment provision

Guangdong Guangfo Expressway

Co., Ltd.154,982,475.25 154,982,475.25

Guangdong Expressway Technology

Investment Co., Ltd. 95,731,882.42 95,731,882.42

Guangdong Fokai Expressway Co., Ltd. 2,167,722,211.85 2,167,722,211.85

Total 2,418,436,569.52 2,418,436,569.52

168

（2）Investment to joint ventures and associated enterprises

Name Opening balance

Increase /decrease in reporting period

Closing balance

Closing

balance of

impairment

provision

Add

investment

Negative

investment

Investment

profit and loss

recognized

under the

equity method

Adjustment

of other

comprehensiv

e income

Other

equity

changes

Declaration of

cash dividends

or profit

Withdra

wn

impairm

ent

provisio

n

Other

I. Joint ventures

Guangdong Guanghui

Expressway Co., Ltd. 1,193,172,139.09 101,623,760.94 150,000,000.00 1,144,795,900.03

ZhaoqingYuezhao

Highway Co., Ltd. 273,153,345.90 16,159,233.57 289,312,579.47

Subtotal 1,466,325,484.99 117,782,994.51 150,000,000.00 1,434,108,479.50

II. Associated

enterprises

ShenzhenHuiyan

Expressway Co., Ltd.160,888,058.33 10,540,600.07 33,000,000.00 138,428,658.40

Jingzhu Expressway

Guangzhu 312,905,040.79 34,125,187.86 347,030,228.65


Expressway Co., Ltd. 173,582,080.68 4,659,563.57 178,241,644.25

169

Name Opening balance

Increase /decrease in reporting period

Closing balance

Closing

balance of

impairment

provision

Add

investment

Negative

investment

Investment

profit and loss

recognized

under the

equity method

Adjustment

of other

comprehensiv

e income

Other

equity

changes

Declaration of

cash dividends

or profit

Withdra

wn

impairm

ent

provisio

n

Other

Ganzhou Kangda

Expressway Co., Ltd.164,592,503.05 12,375,355.12 176,967,858.17

Ganzhou Gankang

Expressway Co., Ltd.207,626,577.95 6,667,521.05 9,000,000.00 205,294,099.00

Guangdong Yueke


Co., Ltd.

204,066,494.37 1,827,869.40 205,894,363.77

Subtotal 1,223,660,755.17 70,196,097.07 42,000,000.00 1,251,856,852.24

Total 2,689,986,240.16 187,979,091.58 192,000,000.00 2,685,965,331.74

170

3. Business income and Business cost

Items Amount of current period Amount of previous period

Revenue Cost Revenue Cost

Main business

Other business 9,327,468.61 232,106.70 22,907,325.49 232,106.70

Total 9,327,468.61 232,106.70 22,907,325.49 232,106.70

4.Investment income


Long-term equity investment income accounted by

cost method 27,174,578.08

Long-term equity investment income accounted by

equity method 187,979,091.58 179,955,514.62

Investment income arising from disposal of long-term

eqiuty investments

Investment income from holding the financial asset

of which fair value recognized in profit or loss

Investment income from disposal of financial assets

measured by fair value with changes in fair value

recognised in profit or loss

Investment income from holding the financialasset available for sale

Investment income received from holding

ofavailable-for –sale financial assets 43,757,419.58 42,119,862.10

The investment income procure from the


Investment income from disposal of financialassets available for sale

Reverse repurchase treasury investment income 854,210.29 415,618.67

Total 259,765,299.53 222,490,995.39

171

XVI. Supplement information

1. Particulars about current non-recurring gains and loss

Items Amount Notes

Gains/losses from the disposal of non-current asset -362,152.09

Tax refund or mitigate due to examination-and –approvalbeyond

power or without official approval document-

Governmental subsidy calculated into current gains and loess（while

closely related with the normal business of the Company, excluding

the fixed-amount or fixed-proportion governmental subsidy

according to the unified national standard）

230,000.00

Capital occupancy expense, collected from non-financialenterprises

and recorded in current gains and losses.

Income from the exceeding part between investment costofthe

Company paid for obtaining subsidiaries , associates and

joint-ventures and recognizable net assets fair value attributable to

the Company when acquiring the investment

Gains and losses from exchange of non-monetary assets

Gains and losses from assets under trusted investment or

management

Various provision for impairment of assets withdrew duetoact of

God, such as nutural disaster

Gains and losses from debt restructuring

Enterprise reorganization expense(eg.expenditure of

staffreplacement and integration change)

Gains and losses of the part arising from transaction in which price is

not fair and exceeding fair value

Current net gains and losses occurred from period-begin

tocombination day by subsidiaries resulting from business

combination under common control

Gains and losses arising from contingent proceedings irrelevant to

172

Items Amount Notes

normal operation of the Company

Gains and losses from change of fair values of held-for-transaction

financial assets and financial liabilities except for the effective hedge

business related to normal business of the Company, and investment

income from disposal of transactional financial assets and liabilities

and financial assets available for sale

Switch-back of provision of impairment of account receivable which

are treated with separate depreciation test

Gains and losses obtained from external trusted loans

Gains and losses arising from change of fair value of investment real

estate whose follow-up measurement are conducted according to fair

value pattern.

Affect on current gains and losses after an one-time adjustment

according to requirements of laws and regulations regarding to

taxation and accounting

Trust fee obtained from trust operation

Other non-operating income and expenditure except for the

aforementioned items5,220,848.96

Other non-business income and expenditures other than the above 854,210.29

Influenced amount of income tax 1,210,023.58

Amount of influence of minority interests 907,517.68

Total 3,825,365.90

Notes：Non-operating gains and losses before taxes listed

2. Return on equity (ROE) and earnings per share (EPS)

Profit as of reporting periodWeighted average ROE

(%)

EPS（Yuan/share）

EPS-basic EPS-diluted

Net profit attributable to common

shareholders of the Company4.49% 0.18 0.18

Net profit attributable to common 4.41% 0.18 0.18

173

Profit as of reporting periodWeighted average ROE

(%)

EPS（Yuan/share）

EPS-basic EPS-diluted

shareholders of the Company after

deduction of non-recurring profit

and loss

3. Differences between accounting data under domestic and overseas accounting standards

N/A

4. Supplementary materials of changes in accounting policies

N/A

5.Other

N/A

174

X. Documents Available for Inspection

1. Accounting statements carried with personal signatures and seals of legal representative, ChiefFinancial officer and Financial Principal.

2. The texts of all the Company's documents publicly disclosed on the newspapers and periodicalsdesignated by China Securities Regulatory Commission in the report period.

Guangdong Provincial Expressway Development Co

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