Company Code: 600350 Abbreviation of Company: SDHS
2020 Semi-annual Report of Shandong Hi-
speed Company Limited
Notes
I. The Board of Directors, Board of Supervisors, directors, supervisors and executives of theCompany guarantee the truthfulness, accuracy and completeness without any false ormisleading statements or material omissions herein, and shall bear joint and several legalliabilities.
II. All directors of the Company attended the Board meeting.
III. The semi-annual report has not been audited.
IV. Sai Zhiyi, the Company leader, Lyu Sizhong, the person in charge of accounting work, ZhouLiang, the chief accountant, and Chen Fang, the person in charge of accounting organization(accountant in charge) hereby declare that the financial statement in the semi-annual report istrue, accurate and complete.
V. The profit distribution plan or common reserves capitalizing plan during the reporting periodreviewed by the Board of DirectorsIn the first half of 2020, the Company will not make profit distribution and common reserves capitalizing.
VI. Risk declaration of forward-looking statements
√ Applicable □ Not applicable
The Company declares that the “forward-looking statements” of development strategies, future operationplans and so on herein do not constitute material commitment of the Company to investors, and we requestinvestors to pay attention to investment risks. There is no obligation on the Company to update or amendany forward-looking statement therein in public for any new information, future event for other reasons;there is no responsibility on the Company and other employee or contact of the Company for anycommitment statement of the future performance of the Company or any such statement.
VII. Whether the Company's controlling shareholder or any of its affiliates misappropriates theCompany's funds for non-operating purposes?
No
VIII. Whether the Company provides external guarantees in violation of the stipulated decision-
making procedures?No
IX. Major risk warning
The Company has detailed and analyzed the possible latent risks in the operation and development ofthe Company and proposed risk precaution measures in the section of "Operation Discussion andAnalysis" herein, and we request investors' attention.
X. Others
√ Applicable □ Not applicable
CONTENTS
Section I Definitions ...... 5
Section II Company Profile and Major Financial Indicators ...... 7
Section III Business Summary of the Company ...... 12
Section IV Operation Discussion and Analysis ...... 15
Section V Material Matters ...... 34
Section VI Changes in Ordinary Shares and Shareholders ...... 64
Section VII Related Situation of Preferred Shares ...... 68
Section VIII Directors, Supervisors, Senior Management ...... 68
Section IX Relevant Situation of Corporate Bonds ...... 71
Section X Financial Statement ...... 71
Section XI List of Documents Available for Inspection ...... 252
Section I DefinitionsIn the report, unless the context otherwise requires, the following expressions shall have the followingdefinitions:
| Definitions of Frequently-used Terms | ||
| The Company, the Group, Company, Shandong Hi-Speed | refer to | Shandong Hi-speed Company Limited |
| Shandong Hi-Speed Group, Hi-Speed Group, Group Company | refer to | Shandong Hi-Speed Group Co., Ltd. |
| China Merchants Expressway, CMET, China Merchants Huajian | refer to | China Merchants Expressway Network & Technology Holdings Co., Ltd. |
| Xuyu Company | refer to | Shandong Hi-Speed Henan Xuyu Highway Co., Ltd. |
| Weilai Company | refer to | Shandong Hi-Speed Weilai Highway Co., Ltd |
| Yunguan Company | refer to | Shandong Hi-Speed Highway Operation Management Co., Ltd. |
| Investment Company | refer to | Shandong Hi-Speed Investment Development Co., Ltd. |
| Jinan Construction Company | refer to | Shandong Hi-Speed Jinan Investment Co., Ltd. |
| Zhangqiu Company | refer to | Shandong Hi-Speed Zhangqiu Property Development Co., Ltd. |
| Industrial Corporation | refer to | Shandong Hi-Speed Industrial Development Co., Ltd. |
| Shengbang Company | refer to | Jinan Shengbang Real Estate Co., Ltd. |
| Xicheng Real Estate | refer to | Shandong Hi-Speed Xicheng Property Co., Ltd. |
| Huibo Real Estate | refer to | Jinan Huibo Real Estate Co., Ltd. |
| Jitai Mining | refer to | Shandong Hi-Speed Jitai Mining Investment Co., Ltd. |
| Environmental Technology | refer to | Shandong Hi-speed Environmental Technology Co., Ltd. |
| Henan Development Company, Henan Company | refer to | Shandong Hi-Speed Henan Development Co., Ltd. |
| Hengshao Company | refer to | Hunan Hengshao Expressway Co., Ltd. |
| Shenzhen Company | refer to | Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. |
| Hesheng Company, Yantai Hesheng | refer to | Yantai Hesheng Real Estate Development Co., Ltd. |
| Lijin Bridge Company | refer to | Shandong Lijin Huanghe Highway and Bridge Co., Ltd. |
| Transport Service Company | refer to | Shandong Hi-Speed Qilu Construction Transport Administration Service Co., Ltd. |
| Weihai Shanghang | refer to | Weihai City Commercial Bank |
| Dongxing Securities | refer to | Dongxing Securities Company, Ltd. |
| Changying Company | refer to | Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. |
| Fulongma | refer to | Fujian Longma Environmental Sanitation Equipment Co., Ltd. |
| Wujing Company | refer to | Hubei Wujing Expressway Development Co., Ltd |
| Changying Jinpeng | refer to | Qingdao Changying Jinpeng Investment Partnership (Limited Partnership) |
| Changying Jinhai | refer to | Jinan Changying Jinhai Investment Partnership |
| (Limited Partnership) | ||
| Changying Jin'an | refer to | Jinan Changying Jin'an Investment Partnership (Limited Partnership) |
| Changying Jincheng | refer to | Jinan Changying Jincheng Equity Investment Partnership (Limited Partnership) |
| Puyuan Real Estate | refer to | Jinan Puyuan Property Co., Ltd. |
| Reconstruction and Extension of Jinan-Qingdao Expressway, Reconstruction and Extension Project of Jinan-Qingdao Expressway | refer to | Jinan-Qingdao Expressway Reconstruction and Extension Project |
| Reconstruction and Extension of Dezhou-Qihe Section of Beijing-Taibei Expressway, Reconstruction and Extension of Beijing-Taibei Expressway, Reconstruction and Extension Project of Dezhou-Qihe Section of Beijing-Taibei Expressway, Reconstruction and Extension Project of Beijing-Taibei Expressway | refer to | Reconstruction and Extension Project of Dezhou(border Between Shandong and Hebei)-Qihe Section of Beijing-Taibei Expressway |
| Jijin Company | refer to | Jiyuan City Jijin Expressway Co., Ltd. |
| Logistics Group | refer to | Shandong High-Speed Logistics Group Co., Ltd. |
| Sichuan Company | refer to | Shandong Hi-speed Sichuan Industrial Development Co., Ltd. |
| ShineWing | refer to | Shinewing Certified Public Accountants (Special Partnership) |
| Rail Transit, Rail Transit Group | refer to | Shandong Hi-Speed Rail Transit Group Co., Ltd. |
| Construction Management Group | refer to | Shandong Hi-Speed Construction Management Group Co., Ltd |
| Luyu Company | refer to | Luzhou Southeast Expressway Development Co., Ltd. |
Section II Company Profile and Major Financial Indicators
I. Company Information
| Chinese Name of the Company | Shandong Hi-speed Company Limited |
| Abbreviation of Chinese Name | 山东高速 |
| English Name of the Company | Shandong Hi-speed Company Limited |
| Abbreviation of English Name of the Company | SDHS |
| Legal Representatives of the Company | Sai Zhiyi |
| Secretary of Board of Directors | Representative of Securities Affairs | |
| Name | Sui Rongchang | Cheng Huai |
| Contact Address | No. 5006 Aoti Middle Road, Jinan, Shandong, P. R. C. | No. 5006 Aoti Middle Road, Jinan, Shandong, P. R. C. |
| Tel | 0531-89260052 | 0531-89260052 |
| Fax | 0531-89260050 | 0531-89260050 |
| sdhs@sdecl. com. cn | sdhs@sdecl. com. cn |
| Registered Address of the Company | Block A, Qixing Jixiang Building, No. 29 Wenhua East Road, Jinan, Shandong, China |
| Postal Code of the Registered Address | 250014 |
| Office Address | No. 5006 Aoti Middle Road, Jinan, Shandong, P. R. C. |
| Postal Code of the Office Address | 250101 |
| Company Website | http: www. sdecl. com. cn |
| sdhs@sdecl. com. cn |
| Name of Newspapers Designated for Information Disclosure | China Securities Journal, Shanghai Securities News, Securities Times |
| Website Designated by CSRC for Publishing the Semi-annual Report | www.sse.com.cn |
| Place for Inspection of Semi-annual Report | No. 5006, Aoti Middle Road, Jinan City, Shandong Province, Shanghai Stock Exchange |
| Type of Shares | Place of Listing of the Company's Shares | Stock Abbreviation | Stock Code | Stock Abbreviation Before Change |
| A Share | Shanghai Stock Exchange | 山东高速 | 600350 | Shandong Infrastructure |
| Major Accounting Data | This Reporting Period (January - June) | The Same Period of Last Year | Year-on-year Increase or Decrease (%) | |
| After adjustment | Before adjustment | |||
| Revenue | 4,049,639,902.51 | 4,761,607,723.15 | 3,351,124,649.55 | -14.95 |
| Net profit attributable to shareholders of listed company | 256,960,515.79 | 1,615,241,947.03 | 1,579,731,089.65 | -84.09 |
| Net profit attributable to shareholders of listed company after deducting non-recurring profit or loss | 139,391,834.27 | 1,548,911,603.09 | 1,548,911,603.09 | -91.00 |
| Net cash flow from operating activities | 1,650,328,294.98 | 2,528,032,420.07 | 2,510,291,929.30 | -34.72 |
| End of the reporting period | End of last year | Increase or decrease at the end of this reporting period compared with the end of last year (%) | ||
| After adjustment | Before adjustment | |||
| Net assets attributable to shareholders of listed company | 28,977,405,689.23 | 33,287,173,292.39 | 32,121,191,628.12 | -12.95 |
| Total Assets | 89,929,777,585.28 | 87,969,945,006.57 | 80,359,625,413.30 | 2.23 |
| Major Financial Indicators | This Reporting Period (January - June) | The Same Period of Last Year | Year-on-year Increase or Decrease (%) | |
| After adjustment | Before adjustment | |||
| Basic earnings per share (yuan/share) | 0.053 | 0.336 | 0.328 | -84.23 |
| Diluted earnings per share (yuan/share) | 0.053 | 0.336 | 0.328 | -84.23 |
| Basic earnings per share after deducting non-recurring profit or loss (yuan/share) | 0.029 | 0.322 | 0.322 | -90.99 |
| Weighted average return on net assets (%) | 0.77 | 5.54 | 5.63 | Decrease by 4.77 percentage points |
| Weighted average return on net assets after deducting non-recurring profit or loss (%) | 0.44 | 5.52 | 5.52 | Decrease by 5.08 percentage points |
Major Accounting Data and Financial Indicators of the Company
√ Applicable □ Not applicable
The main reason for the decrease in net profit attributable to shareholders of listed company in the firsthalf of 2020 is the sharp decline in expressway toll revenue due to the epidemic in the first half of theyear and the toll-free policy.
VIII. Accounting Data differences under Domestic and Foreign Accounting Standards
□ Applicable □ Not applicable
(I) Differences in Net Profit and Net Assets Attributable to Shareholders of Listed Company inFinancial Statements Disclosed Simultaneously in Accordance with International AccountingStandards and Chinese Accounting Standards
□ Applicable √ Not applicable
(II) Differences in Net Profit and Net Assets Attributable to Shareholders of Listed Company in
Financial Statements Disclosed Simultaneously in Accordance with Foreign AccountingStandards and Chinese Accounting Standards
□ Applicable √ Not applicable
(III) Description of Differences Between Foreign and Domestic Accounting Standards:
□ Applicable √ Not applicable
IX. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Non-recurring Profit or Loss Item | Amount | Annotation (If applicable) |
| Profit or loss on disposal of non-current assets | 3,205,543.13 | Mainly from disposal of fixed assets |
| Tax return or reduction approved beyond authority or without formal approval documents or happening occasionally | ||
| Government subsidies included in the current profit and loss, except for those that are closely related to the Company's normal business operations, and are in line with the national policies, and are continuously enjoyed based on a certain quota or ration in accordance with the standards | 11,636,163.80 | Mainly from government support funds and other subsidies. |
| Fund occupation fee charged to non-financial enterprises included in current profit and loss. | ||
| When the investment cost of acquisition of subsidiaries, joint ventures or partnership enterprises of the Company is less than the gains from the fair value of the net identifiable assets of the invested organizations, the Company shall enjoy at the time of investment. | ||
| Profit or loss from non-monetary assets exchange | ||
| Profit or loss from entrusted assets investment or management | ||
| Multiple provisions for impairment due to force majeure, e.g.: natural disasters | ||
| Profit or loss from debt restructuring | ||
| Restructuring expenses, such as employee |
| relocating compensation and integration charges | ||
| Profit or loss from the excess over fair value in transactions where transaction prices are obviously unfair | ||
| Net current profit or loss of subsidiaries generated from business combination under common control from the beginning of a period to the combining date | 181,832,760.37 | Due to the merger of the Rail Transit Group |
| Profit or loss of contingencies not related to normal operations | ||
| In addition to the effective hedging business related to the Company's normal business operations, the gains and losses from fair value changes generated by holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment incomes obtained from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investment | ||
| Reversal of provisions for impairment for receivables subject to separate impairment test and contract assets | ||
| Profit or loss from external entrusted loans | ||
| Profit or loss generated from fair value change of investment real estate properties under subsequent measurement at fair value | ||
| Influence on current profit or loss from one-off adjustment in accordance with tax and accounting laws and regulations, etc. | ||
| Income of trustee fee from commission management | ||
| Other non-operating revenues and expenses except above | 8,361,445.02 | Mainly from highway property compensation |
| Other profit or loss items in line with definition of non-recurring profit or loss | ||
| Affected amount of minority shareholders' equity | -83,362,769.14 | |
| Affected amount of income tax | -4,104,461.66 | |
| Total | 117,568,681.52 |
X. Others
√ Applicable □ Not applicable
Toll revenue and traffic volume of each road section
Unit: Hundred million yuan or ten thousand vehicles
| Name of road section | Traffic Volume | Toll | ||||
| First half of 2020 | First half of 2019 | Year on year | First half of 2020 | First half of 2019 | Year on year | |
| Jinan-Qingdao Expressway | 2137.41 | 1157.53 | 84.65% | 8.50 | 6.09 | 39.49% |
| Relevant sections of Beijing-Taibei Expressway | 1335.66 | 1648.86 | -19.00% | 2.63 | 9.26 | -62.29% |
| Jinan-Laiwu Expressway | 627.63 | 601.55 | 4.34% | 1.05 | 2.21 | -52.43% |
| Tai'an-Qufu Section of Beijing-Fuzhou Expressway | 174.37 | 113.81 | 53.21% | 0.06 | 0.14 | -57.14% |
| Xuchang-Yuzhou Expressway | 182.52 | 201.42 | -9.38% | 0.45 | 1.04 | -56.58% |
| Weihai-Rushan Expressway | 353.43 | 281.32 | 25.64% | 0.33 | 0.63 | -46.82% |
| Jinan Yellow River Second Bridge | 0.86 | 2.53 | -65.84% | |||
| Weifang-Laiyang Expressway | 372.21 | 336.97 | 10.46% | 0.80 | 1.29 | -37.98% |
| Hengyang-Shaoyang Expressway | 97.98 | 149.07 | -34.27% | 0.59 | 1.14 | -48.64% |
| Lijin Yellow River Bridge | 197.48 | 265.40 | -25.59% | 0.09 | 0.37 | -75.05% |
| Henan Jiyuan-Jincheng Expressway | 47.13 | 156.92 | -69.96% | 0.37 | 1.55 | -76.40% |
| Hubei Wuhan-Jingmen Expressway | 282.22 | 444.61 | -36.52% | 2.20 | 4.91 | -55.20% |
| Total | 5808.04 | 5357.46 | 8.41% | 17.93 | 31.16 | -42.36% |
Section III Business Summary of the Company
I. Description of Main Business, Operation Mode and Industry Situation during the ReportingPeriod
The Company was founded in 1999 with the registered capital of 4.811 billion yuan and went publicon March, 2002 in Shanghai Stock Exchange. The Company is mainly engaged in investment operationof transportation infrastructures, and equity investment in industries relating to the expressway industryand value chains, finance, environmental protection and other fields.At present, the revenue and profit of the Company are mainly from two business modules of toll roadand bridge operation, and investment operation.
1. Toll road and bridge operation
As the core business, toll road and bridge operation is always the major revenue source of theCompany. The Company obtains operational expressway assets through investment construction andacquisition, and operation income by serving the passing vehicles and charging tolls in line with thegovernment charge standards. At the same time, by virtue of its relevant management experience, theCompany accepts the commission to manage expressway assets owned by other enterprises and providesthem with superior-quality operation management service. At present, the total mileage of road and bridgeassets operated and managed by the Company is 2,502 kilometers, including 1,241 kilometers of theCompany, and 1,261 kilometers entrusted by Shandong Hi-Speed Group.
2. Investment operation
China's expressway toll collection period is generally not longer than 30 years, and the stable cashincome within the period will become unsustainable as such a period expires; to realize its long-termsustainable development, the Company actively seeks for investment opportunities matching with themain business of expressway.
With respect to equity investment, the Company actively expands its scale in the expressway assetsby horizontal merger and acquisition of expressway projects to lay its industry status. In addition, theCompany gives full play to its own resource background advantages, through vertical industrial chaininvestment, empowers the upstream and downstream industries, and actively cultivates emergingindustries, so as to achieve its long-term sustainable development goal.
In connection with value investment, the Company actively seeks for financial investment project"with little investment but quick result" through exerting its advantage of cash flow in the expresswayindustry, so as to realize its investment goal of "supplementing long-term investment projects with short-term ones" to make up the deficiency of long investment payoff period of the expressway industry byobtaining short-term financial investment income.As of the end of the reporting period, the enterprises (including their abbreviations) invested bythe Company and their business structures are as follows:
Jinan-QingdaoExpresswayRelevant sections ofBeijing-TaibeiExpressway
Relevant sections ofBeijing-TaibeiExpressway
Jilai Expressway
Jilai ExpresswayWeiruExpressway
WeiruExpresswayJinan SecondYellow RiverBridge
Jinan SecondYellow River
BridgeLijin YellowRiver Bridge
Lijin YellowRiver BridgeTaiqu sectionof nationalhighway 104
Taiqu sectionof nationalhighway 104HengshaoExpressway .
HengshaoExpressway .
Xuyu
Expressway
Xuyu
ExpresswayJincheng-Jiyuan
Expressway
Jincheng-Jiyuan
Expressway
Wujing
Expressway
Wujing
ExpresswayReal estate
development
Real estate
developmentReal estate
development
Real estate
developmentReal estate
development
Real estate
developmentReal estate
development
Real estate
development
Financialindustry
Financialindustry
Financialindustry
Financialindustry
Financialindustry
FinancialindustryInvestment and
development
Investment and
development
Investment and
development
Investment and
development
Green
environmentalprotection
Green
environmentalprotectionGreen
environmentalprotection
Green
environmentalprotectionGreen
environmentalprotection
Green
environmentalprotection
Engineering
consultation
Engineering
consultationLogisticsindustry
LogisticsindustryProperty service
Property serviceAgency service
Agency servicePrimary service
| Primary service | Investment enterprise | |
Legend:
Transportation
| Transportation | Real estate development | Investment and operation | Miscellaneous | |||
| Primary service | Equity relationship: |
Shandong Lijin Huanghe Highwayand Bridge Co., Ltd.
Hunan Hengshao ExpresswayCo., Ltd.
Hunan Hengshao ExpresswayCo., Ltd.Shandong Hi-Speed Henan Xuyu Road Co.,
Ltd.
Shandong Hi-Speed Henan Xuyu Road Co.,
Ltd.
Jiyuan City Jijin Expressway
Co., Ltd.
Jiyuan City Jijin Expressway
Co., Ltd.Hubei Wujing Expressway
Development Co., Ltd
Hubei Wujing Expressway
Development Co., LtdYantai Hesheng Real EstateDevelopment Co., Ltd.
Yantai Hesheng Real Estate
Development Co., Ltd.Shandong Hi-Speed ZhangqiuProperty Development Co., Ltd.
Shandong Hi-Speed ZhangqiuProperty Development Co., Ltd.Jinan Puyuan Property Co., Ltd.
Jinan Puyuan Property Co., Ltd.Shandong Hi-Speed Xicheng Property Co.,
Ltd.
Shandong Hi-Speed Xicheng Property Co.,
Ltd.
Shandong Hi-Speed Changying EquityInvestment Management Co., Ltd.
Shandong Hi-Speed Changying EquityInvestment Management Co., Ltd.
Weihai Commercial BankCo., Ltd
Weihai Commercial BankCo., Ltd
Soochow Securities Co., Ltd.
Soochow Securities Co., Ltd.Shandong Hi-Speed (Shenzhen)Investment Co., Ltd.
Shandong Hi-Speed (Shenzhen)Investment Co., Ltd.Shandong Hi-Speed Hunan Development
Co., Ltd.
Shandong Hi-Speed Hunan Development
Co., Ltd.
Fujian Longma Environmental
Sanitation Equipment Co., Ltd.
Fujian Longma Environmental
Sanitation Equipment Co., Ltd.Shandong Environmental ProtectionIndustry Co., Ltd
Shandong Environmental ProtectionIndustry Co., Ltd
Shandong Hi-Speed Green Ecology
Development Co., Ltd.
Shandong Hi-Speed Green Ecology
Development Co., Ltd.
Shandong Hi-Speed Engineering
Consulting Co., Ltd.
Shandong Hi-Speed Engineering
Consulting Co., Ltd.
Shandong High-Speed Logistics Group
Co., Ltd.
Shandong High-Speed Logistics Group
Co., Ltd.Shandong Hi-Speed IndustrialDevelopment Co., Ltd.
Shandong Hi-Speed IndustrialDevelopment Co., Ltd.Shandong Hi-Speed Qilu ConstructionTransport Administration Service Co., Ltd.
Shandong Hi-Speed Qilu ConstructionTransport Administration Service Co., Ltd.Shandong Hi-Speed Henan
Development Co., Ltd.
Shandong Hi-Speed Henan
Development Co., Ltd.Shandong Hi-Speed
Investment Development
Co., Ltd.
Shandong Hi-Speed
Investment Development
Co., Ltd.
Shandong Hi-Speed JinanInvestment Co., Ltd.
Shandong Hi-Speed JinanInvestment Co., Ltd.Structure diagram of
Shandong Hi-SpeedCo., Ltd.
Structure diagram of
Shandong Hi-SpeedCo., Ltd.Weilai
Expressway
Weilai
Expressway
Shandong High-speed Rail Transit
Group Co., Ltd.
Shandong High-speed Rail Transit
Group Co., Ltd.Railway
Transportation
Toll road information (as of June 30, 2020)
| S.N. | Name of road section | Road Sections | Equity of the Company | Approved Expiry Date of Toll Collection | Toll Mileage (Kilometer) | Number of lanes | Status |
| 1 | Jinan-Qingdao Expressway | Jinan-Qingdao Expressway (Section in Shandong of Qingdao-Yinchuan Expressway) | 100% | 2044.12 | 318.5 | 8 | In operation |
| 2 | Relevant sections of Beijing-Taibei Expressway | Phase I of Dezhou-Qihe Section of Beijing-Fuzhou Expressway | 100% | 2022.11.17 | 89.034 | 4 | Reconstruction and expansion |
| 3 | Phase II of Dezhou-Qihe Section of Beijing-Fuzhou Expressway | 100% | 2025.11.30 | 2.25 | 4 | Reconstruction and expansion | |
| 4 | Jinan Yellow River Second Bridge | 100% | 2032.04.16 | 5.75 | 6 | In operation | |
| 5 | Qihe-Jinan Section of Beijing-Fuzhou Expressway | 100% | 2024.10.31 | 21.971 | 6 | In operation | |
| 6 | Jinan-Qingdao Connection Line of Beijing-Fuzhou Expressway | 100% | 2024.10.31 | 16.376 | 4 | In operation | |
| 7 | Jinan-Tai'an Section of Beijing-Fuzhou Expressway | 100% | 2024.10.31 | 59.546 | 6 | In operation | |
| 8 | Jinan-Laiwu Expressway | Jinan-Laiwu Expressway (side road) of Beijing-Shanghai Expressway | 100% | 2034.10.21 | 76.048 | 4 | In operation |
| 9 | Weifang-Laiyang Expressway | Weifang-Laiyang Expressway | 100% | 2024.07.31 | 140.637 | 4 | In operation |
| 10 | Weihai-Rushan Expressway | Weihai-Rushan Expressway | 100% | 2032.12.19 | 70.55 | 4 | In operation |
| 11 | Tai'an-Qufu Road | Tai'an-Qufu First-class Highway of State Road G104 | 100% | 2025.11.15 | 64.166 | 4 | In operation |
| 12 | Lijin Yellow River Bridge | Lijin Yellow River Bridge | 65% | 2029.09.25 | 1.35 | 4 | In operation |
| 13 | Xuchang-Yuzhou Expressway | Xuchang-Yuzhou Expressway in Henan | 60% | 2036.8.28 | 39.07 | 4 | In operation |
| 14 | Jiyuan-Jincheng Expressway | Jiyuan-Jincheng (Provincial Border) Section of Erenhot- | 54% | 2038.9.9 | 20.56 | 4 | In operation |
| Guangzhou Expressway | |||||||
| 15 | Hengyang-Shaoyang Expressway | Heyang-Shaoyang Expressway in Hunan | 70% | 2040.12.29 | 132.059 | 4 | In operation |
| 16 | Wuhan-Jingmen Expressway | Wuhan-Jingmen Expressway in Hubei | 60% | 2040.5 | 183.21 | 4 | In operation |
| Total | 1241.077 | ||||||
key construction projects resumed work on schedule. The Company realized 1.793 billion yuan of tollrevenue in the first half of the year. During the epidemic period, the Company released 56.5141 millionvehicles free of charge and reduced the toll of 2.5 billion yuan according to the principles of "no parking,no inspection, no charge, access priority" and "free service", demonstrating the social responsibility of alisted company.
(II) Steady Progress Made in Capital Operation and Assets ManagementIn the first half of 2020, the Company realized an investment income of 484 million yuan andcompleted the acquisition of 51% equity of Shandong Hi-Speed Rail Transit Group Co., Ltd. Rail TransitGroup realized a net profit of 192 million yuan attributable to the parent company, a year-on-year increaseof 175.93% in the first half of 2020.In terms of the acquisition of the main business of road and bridge, the Company made every effortto promote acquisition of expressway assets, carried out due diligence, third-party consulting institution’selection and recruitment and other related matters, and simultaneously reserved high-quality expresswayacquisition projects; in terms of financial investment, the Company established 5 billion military-civilintegration funds for replacing old growth drivers with new ones, reserved 11 high-quality projects,withdrew Changying Jin’an and other projects, and achieved better investment income; in terms of tollstation asset revitalization, among the first 9 toll stations determined for revitalization, Jiqing Lingdianand Yaoqiang toll stations were officially started for revitalization in June ahead of schedule to create"ordinary highway service area" and "driver's home".(III) Accelerated Construction of Key ProjectsThe reconstruction and expansion project of Dezhou-Qihe Section of Beijing-Taibei Expressway,focusing on milestones and annual tasks, increased inputs and rearranged the construction schedule. Inthe first half of 2020, an investment of 2.1 billion yuan was completed, accounting for 55% of the annualplan, achieving “half of the time, half of the task”. On April 15, 2020, the whole line foundation wascompleted on schedule. On May 30, 2020, the first process transfer was completed in advance, laying agood foundation for the smooth completion of the reconstruction and expansion of Dezhou-Qihe Sectionof Beijing-Taibei Expressway.
II. Major Operation Details during the Reporting Period(I) Analysis of Main Business
Analysis of Changes in Related Subjects of Financial Statements
Unit: Yuan Currency: RMB
| Subject | Current-period Amount | Amount in the Same Period of Last Year | Change proportion (%) |
| Revenue | 4,049,639,902.51 | 4,761,607,723.15 | -14.95 |
| Operating cost | 3,047,980,373.48 | 2,610,176,520.28 | 16.77 |
| Selling expenses | 40,234,228.65 | 25,667,073.18 | 56.75 |
| Management expenses | 179,947,540.97 | 200,123,236.91 | -10.08 |
| Financial expenses | 631,481,805.94 | 501,708,655.55 | 25.87 |
| Research and development (R&D) expenses | 13,734,019.00 | 4,611,801.62 | 197.80 |
| Net cash flow from operating activities | 1,650,328,294.98 | 2,528,032,420.07 | -34.72 |
| Net cash flow from investment activities | -4,875,653,250.21 | -4,104,032,433.35 | Not applicable |
| Net cash flow from financing activities | 3,648,099,135.03 | 5,124,993,802.43 | -28.82 |
Reason for change in selling expenses Mainly caused by the increase in selling expenses of the subsidiaryRail Transit Group. Reason for change in management expenses Mainly caused by the strengthening ofcost control.Reason for change in financial expenses Mainly caused by the expensing of interest expenditure relatedto the assets accounting of Jinan-Qingdao Expressway. Reason for change in R&D expenses Mainlycaused by the increase in R&D inputs and the increase in R&D projects.Reason for change in net cash flow from operating activities: Mainly caused by the reduction in tollrevenue.Reason for change in net cash flow from investment activities: Mainly caused by the combined effect ofthe merger of Rail Transit Group under the same control and the payment of equity transfer fund duringthe current period.Reason for change in net cash flow from financing activities: Mainly caused by the increase in dividenddistribution and the decrease in borrowings.
Others(1)
Detailed description of major changes in the Company's profit composition or source of profit
□ Applicable √ Not applicable
(2)
Others
□ Applicable √ Not applicable
(II) Description of Major Changes in Profit by Non-main Business
□ Applicable √ Not applicable
(III) Analysis of Assets and Liabilities
√ Applicable □ Not applicable
1.
Assets and liabilities
Unit: Yuan
| Project Name | Closing Amount of the Current Period | Proportion of Closing Amount of the Current Period to Total Assets (%) | Closing Amount of the Same Period of Last Year | Proportion of Closing Amount of the Same Period of Last Year to Total Assets (%) | Change Proportion of Closing Amount of the Current Period Over the End of the Same Period of Last Year (%) | Description |
| Monetary funds | 2,771,859,620.18 | 3.08 | 5,963,754,822.72 | 7.25 | -53.52 | Repayment of bank loans |
| Notes receivable | 217,885,618.84 | 0.24 | 447,631,161.68 | 0.54 | -51.32 | Caused by recovery at maturity |
| Accounts receivable | 608,091,519.30 | 0.68 | 464,739,673.71 | 0.57 | 30.85 | Mainly caused by the fact that the payment for goods sold by the subsidiary |
| has not yet been due | ||||||
| Advanced payment | 666,453,160.88 | 0.74 | 325,569,645.98 | 0.40 | 104.70 | Mainly caused by the increase in project advance payment |
| Other receivables | 4,740,897,188.64 | 5.27 | 2,571,285,288.78 | 3.13 | 84.38 | Mainly caused by change in intercourse funds |
| Other current assets | 225,672,903.70 | 0.25 | 4,845,296.73 | 0.01 | 4,557.57 | Mainly caused by the increase in debt investment projects due within one year after reclassification |
| Construction in process | 3,635,582,551.38 | 4.04 | 22,129,603,679.34 | 26.91 | -83.57 | Mainly caused by the assets accounting after the reconstruction and expansion project of Jinan-Qingdao Expressway being open to traffic |
| Intangible assets | 42,452,806,332.04 | 47.21 | 20,408,874,883.78 | 24.82 | 108.01 | Mainly caused by the assets accounting after the reconstruction and expansion project of Jinan-Qingdao Expressway being open to traffic |
| Short-term borrowings | 1,446,003,111.67 | 1.61 | 90,000,000.00 | 0.11 | 1,506.67 | Increase in short-term bank loans |
| Notes payable | 161,430,962.91 | 0.18 | 67,236,175.99 | 0.08 | 140.10 | Mainly caused by the increase in note settlement |
| Accounts payable | 2,939,254,508.27 | 3.27 | 1,591,751,086.25 | 1.94 | 84.66 | Mainly caused by the increase in the account payable of the reconstruction and expansion project of Beijing-Taibei Expressway |
| Taxes payable | 209,799,426.50 | 0.23 | 480,936,822.75 | 0.58 | -56.38 | Mainly caused by the reduction of the accrued income tax and value-added tax due to decrease in income |
| Other payables | 7,392,813,442.43 | 8.22 | 4,550,389,169.23 | 5.53 | 62.47 | Mainly caused by the increase in the equity transfer fund payable to the Group |
| Bonds payable | 422,834,499.98 | 0.51 | -100.00 | Mainly caused by repayment of bonds payable at maturity | ||
| Estimated liabilities | 75,092,626.46 | 0.08 | 2,209,425.29 | 0.00 | 3,298.74 | Caused by the accrual of estimated liabilities due to litigation involving subsidiary Rail Transit Group |
√ Applicable □ Not applicable
| Item | Year-end Book Value (Yuan) | Restriction reason |
| Monetary funds | 23,243,780.84 | Deposit |
| Intangible assets | 30,772,330,972.28 | Pledge borrowing |
| Name | Main business | Shareholding Ratio | Partner | Description |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | Investment and operation management of rail transit facilities; railway passenger and freight transportation; cargo loading and unloading; repair of railway transportation facilities; railway engineering construction; sales and maintenance management of railway transportation equipment and accessories; agency service of special railway and railway special line; warehousing service (excluding inflammable and explosive chemical dangerous goods); railway freight forwarding; technical development, service and product sales of rail transit; rail transit information services and business consulting; import and export of professional equipment, goods and technologies; comprehensive development and operation of ancillary resources along the railway; production and sales of building materials; sales of coal, stone, coke, sand and gravel, building materials, ordinary ores, railway transportation equipment accessories, general electrical and mechanical equipment, steel, rail, wood, office supplies, asphalt, fuel oil, | 51% | Shandong Hi-Speed Group Co., Ltd. holding 49% | The registration of industrial and commercial changes was completed on June 16, 2020. |
| grain, feed, agricultural products, iron ore and its concentrate; sales of mine tunnel equipment and related materials; sales of alloy and metallurgical materials; leasing of rail transit machinery and equipment; real estate leasing; engineering supervision and technical services. (Business requiring government approval according to law can only be carried out when such approval from relevant department is obtained) | ||||
| Luzhou Southeast Expressway Development Co., Ltd. | Investment in, construction, operation and management of Luzhou Section of Yibin-Chuanyu Boundary Expressway and its auxiliary facilities; design, production and publication of guideboards, lamp boxes, show windows, neon lamps and vehicle advertising. | 80% | Shandong Hi-speed Sichuan Industrial Development Co., Ltd. holding 20% | The equity transfer agreement came into effect, the phase I equity transfer payment was paid, the project entered the co-management period, and the Company dispatched a working team to enter the Luyu Company for co-management. |
| Item | Approval Budget Estimate | Actual Project Image Progress | Amount Input in the First Half of 2020 | Accumulated Actual Input Amount | Note |
| Reconstruction and Expansion of Beijing-Taibei Expressway | 1,190,433.35 | 49.8% | 210,982.00 | 449,094.34 | As of June 30, 2020, since the commencement, the reconstruction and expansion project of Dezhou-Qihe Section of Beijing-Taibei Expressway has completed 70.3% of subgrade works, 30.6% of pavement works, 43.9% of bridge and culvert works, 14.5% of traffic safety facility works, and 5% of building works, and the first traffic process transfer was completed on May 30. |
| Total | / | / | 210,982.00 | 449,094.34 |
Second, in terms of capital operation, the major project investment details are as follows: Unit: Ten thousand yuan Currency: RMB
| Project Name | Total Project Investment | Proposed Investment of the Company | Amount Input in 2020 | Accumulated Input Amount | Balance of Input Amount of the Company | Description |
| Assembled Funds Trust Plan for CR Trust · BOE Project to Invest in the Preferred Shares Project of Mianyang Technology City Industry Investment Fund (Limited Partnership) | 570,000.00 | 50,000.00 | 0 | 50,000.00 | 50,000.00 | The investment income was 20.6131 million yuan in the first half of the year. |
| Jinan Changying Transportation Infrastructure Investment Fund Partnership | 338,128.00 | 76,000.00 | 0 | 66,000.00 | 66,000.00 | |
| Qingdao Changying Jinpeng Equity Investment Partnership (Limited Partnership) | 130,100.00 | 130,000.00 | 0 | 129,430.00 | 129,430.00 | |
| Jinan Changying Jincheng Equity Investment Partnership (Limited Partnership) | 501,001.00 | 501,000.00 | 0 | 501,000.00 | 501,000.00 | |
| Jinan Changying Jin'an Investment Partnership (Limited Partnership) | 249,910.00 | 249,900.00 | 0 | 245,608.00 | 0 | The project has been withdrawn in June 2020. See the Announcement on Adjusting Fund Investment Plan and Outward Investment Progress (announcement No.: L 2020-037) issued by the Company on June 30, 2020. |
| Jinan Changying Jinhai Investment Partnership (Limited Partnership) | 420,250.00 | 420,240.00 | 700.00 | 70,240.00 | 700.00 | See the Announcement on Adjusting Fund Investment Plan and Outward Investment Progress (announcement No.: L 2020-037) issued by the Company on June 30, 2020. |
| Weifang Shandong Hi-Speed New Growth Driver Investment Partnership (Limited Partnership) | 230,001.00 | 150,000.00 | 0 | 150,000.00 | 150,000.00 | |
| Shandong Hi-Speed Chengtai Venture Capital Fund for New Growth Drivers of Shandong Province | 50,000.00 | 20,000.00 | 0 | 0 | 0 | In accordance with the fund partnership agreement, the Company has not received the notification of capital contribution from the |
| fund manager, or paid up the capital. | ||||||
| Jinan Jinming Investment Partnership (Limited Partnership) | 60,010.00 | 60,000.00 | 0 | 56,958.91 | 56,958.91 | |
| Shandong Hi-Speed Changying Huitong Equity Investment Fund Partnership (Limited Partnership) | 49,000.00 | 24,738.00 | 0 | 0 | 0 | In accordance with the fund partnership agreement, the Company has not received the notification of capital contribution from the fund manager, or paid up the capital. |
| Shandong Hi-Speed Zhongtong New Growth Driver Industrial Investment Fund of Shandong Province (Limited Partnership) | 500,000.00 | 34,500.00 | 0 | 0 | 0 | Shandong Hi-Speed Civil-Military Integration Industrial Investment Fund for New Growth Driver of Shandong Province completed industrial and commercial registration on April 9, 2020, and was officially approved as "Shandong Hi-Speed Zhongtong New Growth Driver Industrial Investment Fund Partnership of Shandong Province (Limited Partnership)". As of the end of the reporting period, no actual capital contribution has been paid. |
(3)
Financial assets measured at fair value
√ Applicable □ Not applicable
| Item | Ending Fair Value (Yuan) |
| Evergrande Real Estate Group Co., Ltd. | 5,000,000,000.00 |
| Yike Tower Investment Project | 563,893,198.11 |
| Specific Assets Support Plan for South Cement Company Limited | 35,709,250.00 |
| Specific Assets Support Program of BOCOM Schroders | 38,563,162.01 |
| Shandong Hi-speed Culture Media Co., Ltd. | 17,614,686.36 |
| CSCEC Shared No. 35 Fund Program | 150,000,000.00 |
| MCC CCB No.1 Privately Offered Fund Program | 185,980,000.00 |
| Shandong Railway Investment Holding Group Co., Ltd. | 300,000,000.00 |
| Shandong Hi-Speed New Material Technology Co., Ltd. | 16,000,000.00 |
| Shandong Weilai High Speed Railway Co., Ltd. | 31,626,837.00 |
(VI) Analysis of Major Controlling and Shareholding Companies
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Name of Subsidiary | Nature of Business | Registered Capital | Business Scope | Total Assets | Net Assets | Net Profits |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | Railway Management | 2,552,755,043 | Investment and operation management of rail transit facilities; railway passenger and freight transportation; cargo loading and unloading; repair of railway transportation facilities; railway engineering construction; sales and maintenance management of railway transportation equipment and accessories; agency service of special railway and railway special line; warehousing service (excluding inflammable and explosive chemical dangerous goods); railway freight forwarding; technical development, service and product sales of rail transit; rail transit information services and business consulting; import and export of professional equipment, goods and technologies; comprehensive development and operation of ancillary resources along | 7,264,676,507.65 | 3,615,081,958.38 | 267,551,926.05 |
| the railway; production and sales of building materials; sales of coal, stone, coke, sand and gravel, building materials, ordinary ores, railway transportation equipment accessories, general electrical and mechanical equipment, steel, rail, wood, office supplies, asphalt, fuel oil, grain, feed, agricultural products, iron ore and its concentrate; sales of mine tunnel equipment and related materials; sales of alloy and metallurgical materials; leasing of rail transit machinery and equipment; real estate leasing; engineering supervision and technical services. (Business requiring government approval according to law can only be carried out when such approval from relevant department is obtained) | ||||||
| Hubei Wujing Expressway Development Co., Ltd | Highway management | 808,000,000 | Road, bridge and tunnel investment construction; building material sales; landscape engineering design and construction; road scientific research, labor service, conference service, investment and equity participation, and office rental. | 6,903,466,047.05 | 1,494,575,447.47 | -47,504,426.80 |
| Shandong Hi-Speed Henan Xuyu Highway Co., Ltd. | Highway management | 200,000,000 | Investment in, operation, management and maintenance of expressway construction, and | 992,702,177.25 | 450,373,222.59 | -7,040,694.01 |
| engineering machinery sales and rental. | ||||||
| Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | Highway management | 70,000,000 | Road and bridge management and operation | 165,128,928.64 | 140,090,423.51 | -1,136,817.57 |
| Jiyuan City Jijin Expressway Co., Ltd. | Highway management | 150,000,000 | Investment in, operation, management and maintenance of expressway construction | 1,379,025,341.30 | 167,766,710.38 | -27,844,213.33 |
| Shandong Hi-Speed Industrial Development Co., Ltd. | Property management | 31,670,000 | Canteens (for government organs, enterprises and institutions, Chinese food production and sale, excluding cold dishes, decorated cakes, and raw seafood, the validity period shall be subject to the license); the following business scope is limited to branches: retail of books, audio-visual products, prepackaged food, bulk food, cigarettes, and cigars, accommodation and catering services. Project bidding agency; traffic safety facilities engineering construction; landscape engineering; management and maintenance of ancillary facilities for highways, bridges, tunnels and ports; property management; advertising, publicity | 98,565,033.66 | 56,783,356.21 | 2,989,647.54 |
| and display; stone processing and sales; sales of metal materials, building materials, daily necessities, and auto parts; warehousing (excluding dangerous chemicals); vehicle cleaning and decorating; decoration; production and sales of traffic management equipment; house leasing; conference service; sales, design, installation and maintenance of air conditioning equipment; leasing of communication pipelines; sales of agricultural and sideline products; vehicle leasing. (Business requiring government approval according to law can only be carried out when such approval from relevant department is obtained) | ||||||
| Shandong Hi-Speed Qilu Construction Transport Administration Service Co., Ltd. | Agency service | 517,000,000 | Ordinary freight, freight forwarding, information stowage (Validity shall be subject to the license). Comprehensive development of passenger and freight stations; information management, training, counseling and business service of the transportation industry, and auto (excluding sedan) and auto part sales; sales of building materials, domestic appliances, computers and consumables, office supplies and furnishings, auto repair and maintenance equipment and tools, | 530,133,555.13 | 56,783,356.21 | 2,989,647.54 |
| electromechanical equipment, teaching equipment and instruments, garments, shoes and hats, bags, daily necessities, fire-fighting equipment; building equipment rental; construction and decoration engineering construction and consulting service; house rental | ||||||
| Shandong Hi-Speed Investment Development Co., Ltd. | Investment and development | 4,000,000,000 | Investment in real estate and securities industries; property management service; house rental; economic information consulting service; construction engineering supervision; building equipment rental; advertising design, production and release (except for media advertising); sales of building materials, flowers and plants, and seedlings; landscaping construction; scenic spot development | 7,762,531,847.44 | 5,641,611,207.84 | 80,863,232.10 |
| Shandong Hi-Speed Zhangqiu Property Development Co., Ltd. | Investment and development | 100,000,000 | Real estate investment, equity investment; real estate development and operation, hotel operation and management, property operation and management, information consulting, engineering tendering and bidding agency, engineering supervision, equipment rental, advertising business, etc. | 1,155,626,354.53 | 905,388,913.37 | 26,366,637.82 |
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Investment and development | 510,000,000 | Entrusted asset management; investment management (trust, financial asset management, securities | 988,268,310.94 | 608,190,262.95 | 10,954,407.22 |
(VII) Details of Company-controlled Structured Entity
√ Applicable □ Not applicable
The Company and Agricultural Bank of China Co., Ltd., as the principals, set up "Bohai Trust · 2019Production Investment No. 01 Trust Plan of Assembled Funds" and the trustee is Bohai InternationalTrust Co., Ltd. In accordance with the trust contract, the Trust Plan does not set a fixed duration, and theexpected duration shall not be less than one year, and be subject to the resolution of the investmentcommittee. For the investment decision-making committee, the Company delegated four members andAgricultural Bank of China delegated one member, and the investment decision-making committee hasone director who will be appointed by the Company. An investment decision-making committee meetingshall be held with the more than half of attendees, and a resolution shall be approved only if more thanhalf the attendees approve it. As it has the vast majority of members in the investment committee, theCompany owns the right to control the Trust Plan.
III. Other disclosures(I) Warning and description of future possibilities of the loss of net profits from beginning of theyear to end of next reporting period, or of huge change of net profits against last same reportingperiod
□ Applicable √ Not applicable
(II) Possible risks
√ Applicable □ Not applicable
1. Macroeconomic and policy risks
In the second half of 2020, China will encounter more complicated and severe economicdevelopment environment, and more and bigger foreseeable and unforeseeable risks and challenges. Thehighway transportation economic cycle has high coupling with macroeconomic cycle, and economiccyclical changes directly influence the demands of economic activities on transportation resources.Besides, COVID-19 has uncertain influences on expressway and other transportation industries.
Countermeasures: Solutions: on one hand, the Company will strengthen connection andcommunication with relevant government departments, especially transport, finance, taxation and pricedepartments, for their policy support for expressways; pay close attention to relevant policies andinformation from governments, collect, analyze and comprehensively process external data, reinforceresearches on relevant governmental principles and policies, and make corresponding operation decisionsin a timely manner; on the other hand, the Company will accelerate transformation development, cultivatediversified profit growth points, and decrease dependence on charging service to avoid adverse influencesfrom industry policies.
2. Road network effect and divergence risks
In accordance with the Medium and Long-term Development Plan of Comprehensive TransportationNetwork of Shandong Province (2018-2035), Shandong Province will plan new expressway mileage witha 700 kilometers from 2018 to 2035, and focus on upgrading and reconstruction, make overall planningfo new projects and reconstruction and expansion ones, accelerate to optimize the layout and perfect thenetwork, solve congestion in main highways and sections across the Yellow River, and make the highwaymileage reach 8000 kilometers by 2022; accelerate to implement the highway connecting line project,energetically enhance the network connection efficiency and connectivity level, and further optimize thehighway network layout in main roads by 2025; achieve the total highway network scale up to 9000kilometers which can cover all counties (cities and districts) across the Province, increase the expresswayentries and exits to 27, form the network layout of "nine vertical expressways, five horizontal expressways,one ring expressway encircling Shandong Province, seven radiant expressways, and multiple connectinglines", and strive to realize the goal that there are over two connecting expressways within a passageway.As the expressway network gets improved year by year, there are parallel or alternative paths in somesections, objectively resulting in vehicle divergence in such sections. At the same time, the rapidpassenger transportation network which gets gradually improved and is composed of expressways,passenger transport lines and other railways within the area, inevitably, cause divergence of the sections
operated by the Company to a degree.Countermeasures: First, the Company will focus on satisfying customer demands, strengthen thecustomer relationship management, perfect the customer demand survey and analysis workingmechanism, subdivide customer markets, provide efficient, considerate and personalized service, andbuild the brand of "Harmonious Hi-Speed"; second, the Company will take the establishment of cosytravel environment as base, centering on the work of "preparation for national inspection", promote themaintenance mechanization, standardized renovation and brand improvement, create favorable highwaytechnical situations and road appearance, and build the brand of "Cosy Hi-Speed"; third, the Companywill be based on providing smart and thoughtful service, actively develop and apply big data, build a bigdata management platform and road network operation collaboration platform, develop new mediainformation release channels, perfect the public information service system, and build the brand of "SmartHi-Speed"; and the Company will continuously improve its service quality and increase the dependenceof drivers and conductors to sections operated by the Company.
3. Project expansion risks
In respect of the principal road and bridge business, the Company has acquired high-quality in-service expressways at a low cost; in respect of investment expansion, the Company has invested in relatedroad and bridge industry and value chains and energy conversion; in respect of financial investment, theCompany has selected projects which comply with national policy orientation and provincial industryplanning, and advanced projects with low risks and quick returns on a priority basis. The Company hasexpanded its businesses from traditional road and bridge operation to investment in related road andbridge industry and value chains, energy conversion, and values. Entry into new investment fields isdefinitely with certain risks, including wrong judgment risk, investment target cognition risk, investmentfinancial risk, and subsequent management and integration risk, etc.Countermeasures: The Company will highly value risk control and talent cultivation. On one hand,the Company will strengthen its internal control measures to external investment, and its Investment andDevelopment Department shall conduct all-around surveys of, scientifically screen out and sufficientlydemonstrate the industries and investment targets, and make prudent investment choices. The Companywill make the best use of expert demonstration meetings, intermediaries and other external power toprovide a basis for making investment decisions; on the other hand, the Company will establish andperfect an investment incentive and restraint mechanism, establish a talent pool, do the human resourceand organizational security work well, and provide absolute support for its transformation developmentfrom the perspective of system and mechanism.
4. Construction management risks
In the second half of 2020, the reconstruction and expansion project of Beijing-Taibei Expresswaywill enter the centralized construction period and the Company will face the peak of project construction,and the total final project investment amount might exceed the budget due to removal of some pipelinesalong the reconstruction and expansion project, building material price fluctuation, engineering changes,new policies and technical specifications issued by the government, development plan adjustment by thegovernment, and other unforeseeable factors.
Countermeasures: The Company has a professional construction management team which hasaccumulated rich experience in construction management from construction of Jinan-QingdaoExpressway, the first expressway in Shandong Province, to reconstruction and expansion of theExpressway. To reduce construction risks, the Company will adopt the following measures in thereconstruction and expansion project of Beijing-Taibei Expressway: First, optimize the design andconstruction schemes to reduce removal and construction volume as much as possible; second, makecentralized procurement of client-supplied key materials in order to reduce material costs; third,scientifically arrange the construction and reasonably shorten the construction period to reduce themanagement cost; fourth, optimize the change scheme and control change quantity to reduce changeamounts; fifth, develop a strict quality management system and standardize quality control measures todetermine the quality control cost; publicize construction standardization, carry out the First EngineeringRecognition System, and guide the organizations participating in construction to transform fromtraditional extensive management manner to modern intensive one; sixth, strengthen the site control andaccomplish environmental protection and civilized construction. Seventh, based on ensuring unimpededtraffic, to particularly take actions against severe weather, key construction sites and roadside traffic safetyguaranty, and achieve unimpeded and safe travel.
(III) Other disclosures
□ Applicable √ Not applicable
Section V Material MattersI. General Meeting of Shareholders
| Session of the Meeting | Date of the Meeting | Search Index of the Website Designated for Resolution Publishing | Resolution Disclosure Date |
| The first extraordinary general meeting of shareholders in 2020 | 2020.05.11 | http: //www. sse. com. cn/ | 2020.05.12 |
| The second extraordinary general meeting of shareholders in 2019 | 2020.06.13 | http: //www. sse. com. cn/ | 2020.06.15 |
| Annual general meeting of 2018 | 2020.06.23 | http: //www. sse. com. cn/ | 2020.06.24 |
| Distributed or converted | No |
| Description of profit distribution or capital common reserves capitalizing pre-plan | |
| None | |
III. Performance of Commitments(I) Commitments of interested parties including the Company's actual controller, shareholders, affiliates, purchasers and the Company made in thereporting period or continued to the reporting period
√ Applicable □ Not applicable
| Commitment Background | Commitment Type | Commitment Party | Commitment Content | Commitment Date and Period | Is There a Performance Deadline | Is the Commitment Performed Strictly |
| Commitments related to major assets reorganization | Resolution of horizontal competition | Shandong Hi-Speed Group Co., Ltd. | 1. Shandong Hi-Speed Group confirms Shandong Hi-Speed as the only platform to operate and integrate its high-quality road and bridge assets in the future. 2. For expressway and bridge assets which are not placed in Shandong Hi-Speed, where relevant laws and regulations permit, Shandong Hi-Speed Group undertakes that Shandong Hi-Speed enjoys the preemptive right on even ground in external transfer. 3. Considering that it has the functions of public welfare, Shandong Hi-Speed Group can invest in and operate non-profitable road and bridge projects directly instructed by competent administrative departments; where Shandong Hi-Speed believes that such engagement would damage the rights and interests of listed companies, Shandong Hi-Speed Group will | 2016.9.22 | Yes | Yes |
| legislative rights and interests of Shandong Hi-Speed or other shareholders (especially minority shareholders) in the character of controlling or principal shareholder. The foregoing undertakings shall remain valid and irrevocable, when any violation against such undertakings occurs, Shandong Hi-Speed Group will bear all losses (including direct and indirect losses) incurred by Shandong Hi-Speed, and at the same time, the profit gained by Shandong Hi-Speed Group due to violation against the foregoing undertakings shall be owned by Shandong Hi-Speed. | |||||
| Resolution of affiliate transactions | Shandong Hi-Speed Group Co., Ltd. | 1. After the major asset restructuring, Shandong Hi-Speed Group and other affiliates will try to avoid affiliate transactions with Shandong Hi-Speed; in respect of necessary and unavoidable affiliate transactions, such transactions shall be processed in the principles of fairness, justice and valuable compensation, transaction prices shall be determined at reasonable prices recognized in the market, and transaction approval procedures and information disclosure obligation shall be performed as stipulated by relevant | 2010.11.15 Long-term effective | Yes | Yes |
| laws, regulations and normative documents. 2. Shandong Hi-Speed Group guarantees to strictly abide by all relevant regulations developed by CSRC, Shanghai Stock Exchange and other normative documents, and Articles of Association and other management systems of Shandong Hi-Speed, exercise shareholder rights and perform shareholder obligations equally as other shareholders, and not to pursue illegal profit or damage legislative rights and interests of the listed company or other shareholders by taking advantage of its position as a controlling shareholder. | ||||||
| Other commitments | Profit Forecast and Compensation | Shandong Hi-Speed Group Co., Ltd. | Where the actual accumulated net profit amount of Hubei Wujing Expressway Development Co., Ltd. from 2018 to 2020 fails to reach 960,554,869.89 yuan, the accumulated net profit amount of the three fiscal years as calculated in the Evaluation Report, Shandong Hi-Speed Group would compensate the company, except for force majeure or major changes to national toll road laws and policies. The compensation amount shall be 60% of the balance between the actual accumulated net profit | 2018.07.31 | Yes | Yes |
amount of Wujing Expressway from2018 to 2020 and the accumulated netprofit amount of the three fiscal yearsas calculated in the Evaluation Report.Hi-Speed Group will make paymentwithin 30 days from the date when thefinancial statement of 2020 ofShandong Hi-Speed is reviewed andapproved by the general meeting ofshareholders.
IV. Appointment and Dismissal of Accounting FirmDescription of appointment and dismissal of accounting firm
□ Applicable √ Not applicable
Description of change of appointment of accounting firm during the audit period
□ Applicable √ Not applicable
The Company's description of "Modified Audit Report" issued by accounting firm
□ Applicable √ Not applicable
The Company’s description of the “Modified Audit Report” issued by certified public accountant for thefinancial statements in the previous year’s annual report
□ Applicable √ Not applicable
V. Matters Relating to Bankruptcy Reorganization
□ Applicable √ Not applicable
VI. Material Litigation and Arbitration
√ The Company was involved in material litigation or arbitration in the year □ The Company was notinvolved in any material litigation or arbitration in the year(I) Litigation or Arbitration Having Been Disclosed in Interim Announcements but Having NoFollow-up Progress
□ Applicable √ Not applicable
(II) Litigation or Arbitration Having Not Been Disclosed in Interim Announcements or Having Follow-up Progress
√ Applicable □ Not applicable
Unit: Ten thousand yuan Currency: RMB
| Within the reporting period: | |||||||||
| Prosecutor (Applicant) | Responding Party (Respondent) | Party Bearing Joint and Several Liabilities | Type of Litigation/Arbitration | Basic Situation of Litigation (Arbitration) | Amount of Litigation (Arbitration) | Whether Such Litigation (Arbitration) Has Formed Estimated Liabilities and Amounts | Progress of Litigation (Arbitration) | Outcome of Litigation (Arbitration) and Influence from Such Outcome | Execution of Judgment of Litigation (Arbitration) |
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Shenzhen Fengchuang Trade Co., Ltd., Shenzhen Litianjun Supply Chain Co., Ltd., and Shenzhen Zhongmanli Trade Co., Ltd. | Shenzhen Haimin Industrial Co., Ltd., Wu Ying, Shenzhen Kenxin Group Co., Ltd. | Civil litigation | Shenzhen Company took a legal action to Shandong Province Higher People's Court as it failed to recover multiple receivables when it conducted trade cooperation | 68,035.68 | No | The mediation has been reached, and a Paper of Civil Mediation has been received. | Has been settled by mediation. The parties concerned should repay all the debts by December 31, 2018. | The parties concerned failed to perform the mediation agreement as scheduled. Shenzhen Company has applied for compulsory execution to Shandong Province Higher People's Court. In November 2019, the request of |
| with Shenzhen Kenxin Group Co., Ltd. and its ownership companies including Shenzhen Fengchuang Trade Co., Ltd., Shenzhen Litianjun Supply Chain Co., Ltd., and Shenzhen Zhongmanli Trade Co., Ltd. | opposition to execution made by persons not involved in the case to Shandong Province Higher People's Court was rejected; in early January 2020, the appeal for opposition to execution made by persons not involved in the case to Shandong Province Higher People's Court was officially accepted. Among them, the Litianjun case was heard in the first instance on May 28. In mid-June, the civil judgment of the first instance |
(III) Other Description
□ Applicable √ Not applicable
VII. Punishment and Rectification of Listed Company, Its Directors, Supervisors, SeniorManagement, Controlling Shareholders, Actual Controller and Acquirers
□ Applicable √ Not applicable
VIII. Description of Integrity of the Company, its Controlling Shareholders and Actual Controllerduring the Reporting Period
√ Applicable ?□ Not applicable
After referring to National Enterprise Credit Information Publicity System, Shandong Hi-SpeedGroup Co., Ltd., the controlling shareholder of the Company, is in good faith without illegal oradministrative punishment record.
IX. Details and Influence of Equity Incentive Plan, and Employee Stock Ownership Plan, or OtherEmployee Incentive Measures(I) Incentive Matters Having Been Disclosed in Interim Announcements Without Any Progressor Change in Follow-up Implementation
√ Applicable □ Not applicable
| Overview of Matters | Search Index |
| Release of Shandong Hi-speed Stock Option Incentive Plan (Draft) | See the Shandong Hi-speed Company Limited Stock Option Incentive Plan (Draft) disclosed by the Company on the website of Shanghai Stock Exchange on March 7, 2020. |
| Revision of Shandong Hi-speed Stock Option Incentive Plan (Draft) | See the Shandong Hi-speed Company Limited Stock Option Incentive Plan (Revised Draft) disclosed by the Company on the website of Shanghai Stock Exchange on May 29, 2020. |
| The first granting date of the Company's stock option incentive plan is June 29, 2020, and 43.2 million stock options have been granted to 206 incentive objects with the exercise price of 4.34 yuan per share. | See the Announcement of Shandong Hi-speed Company Limited on the First Granting of Stock Options to Incentive Objects (announcement No.: L 2020-036) disclosed on the website of Shanghai Stock Exchange on June 30, 2020. |
X. Material Affiliate Transactions(I) Affiliate Transactions Related to Daily Operations
1. Matters disclosed in interim announcements without progress or change in follow-upimplementation
√ Applicable □ Not applicable
| Overview of Matters | Search Index |
| (1) On December 9, 2016, the 82th meeting (interim) of the Fourth Board of Directors of the Company reviewed and approved the Proposal for Signing Supplemental Agreement on Asset Entrustment Management, and the meeting decided that the Company would sign Supplemental Agreement on Asset Entrustment Management with Shandong Hi-Speed Group and agree to extend the validity of the original Agreement on Asset Entrustment Management (Yantai-Haiyang Expressway, and Linyi-Zaozhuang Expressway) and Agreement on Asset Entrustment Management (Heze-Guanzhuang Expressway and other assets) till December 31, 2017; besides extending the contract validity, the Company would continue performing related contents in the original Agreement on Asset Entrustment Management (Yantai-Haiyang Expressway, and Linyi-Zaozhuang Expressway) and Agreement on Asset Entrustment Management (Heze-Guanzhuang Expressway and other assets). (2) The 20th meeting (interim) of the Fifth Board of Directors of the Company held on June 1, 2018, and the first extraordinary general meeting of shareholders on June 29, 2018 reviewed and approved the Pre-plan for Signing Agreement on Asset Entrustment Management (Tai'an-Qufu and Qufu-Zhangshanzi Sections of Beijing-Taibei Expressway, Qihe-Xiajin Section of Qingdao-Yinchuan Expressway, Connecting Line of Weifang-Rizhao Expressway), the Pre-plan for Signing Agreement on Asset Entrustment Management (Yantai-Haiyang Expressway), the Pre-plan for Signing Agreement on Asset Entrustment Management (Heze-Guanzhuang Expressway, North Line of Qingdao-Yinchuan Expressway Circling Jinan), and the Pre-plan for Signing Agreement on Asset Entrustment Management (Zaozhuang-Linyi Expressway), and it was agreed in the meeting that the Company and Hi-Speed Group should continue implementing the Supplemental Agreement on Asset Entrustment Management signed in 2016 from January 1, 2018 to December 31, 2018. From April 1, 2018 to December 31, 2018, the Company signed the Agreement on Asset Entrustment Management (Tai'an-Qufu and Qufu-Zhangshanzi Sections of Beijing-Taibei Expressway, Qihe-Xiajin Section of Qingdao-Yinchuan Expressway, Connecting Line of Weifang-Rizhao Expressway) with Hi-Speed Group for managing the assets of Tai'an-Qufu and Qufu-Zhangshanzi Sections of Beijing-Taibei Expressway, Qihe-Xiajin Section of Qingdao-Yinchuan Expressway, Connecting Line of Weifang-Rizhao Expressway; Shandong Hi-Speed Road Operation and Management Co., Ltd., the wholly-owned subsidiary of the Company, signed the Agreement on Asset Entrustment Management (Yantai-Haiyang Expressway) with Hi-Speed Group for managing assets of Yantai-Haiyang Expressway; the Company signed the Agreement on Asset Entrustment Management (Heze-Guanzhuang Expressway, North Line of Qingdao-Yinchuan Expressway Circling Jinan) with Shandong Hi-Speed Road Development Co., Ltd., the wholly-owned subsidiary of Hi-Speed Group, for managing the assets of Heze-Guanzhuang Expressway, North Line of Qingdao-Yinchuan Expressway Circling Jinan; Shandong Hi-Speed Road Operation Management Co., Ltd., the wholly-owned subsidiary of the Company, signed the Agreement on Asset Entrustment Management (Zaozhuang-Linyi Expressway) with Shandong Hi-Speed Road Development Co., Ltd., the wholly-owned subsidiary of Hi-Speed Group, for managing the assets of Zaozhuang-Linyi Expressway. | See the Announcement on Daily Affiliate Transactions of Shandong Hi-Speed (announcement No.: L 2016-062) disclosed by the Company on the website of Shanghai Stock Exchange on December 10, 2016, and the Announcement on Daily Affiliate Transactions of Shandong Hi-Speed (announcement No.: L 2018-024) disclosed on the website of Shanghai Stock Exchange on June 2, 2018. |
(1) On October 25, 2018, the 27th meeting (interim) of the Fifth Board of Directors of the Companyreviewed and approved the Proposal for Signing Entrustment Agreement on Operation Management(Juancheng-Heze Expressway) with Shandong Juanhe Expressway Co., Ltd., the Proposal for SigningEntrustment Agreement on Operation Management (Longkou-Qingdao Expressway) with Shandong Hi-Speed Longqing Expressway Co., Ltd., and the Proposal for Signing Entrustment Agreement onOperation Management (Weifang-Rizhao Expressway) with Shandong Hi-Speed Weiri Expressway Co.,Ltd. The Company signed entrustment agreements on operation managements with Shandong JuanheExpressway Co., Ltd., Shandong Hi-Speed Longqing Expressway Co., Ltd., and Shandong Hi-SpeedWeiri Expressway Co., Ltd. (hereinafter collectively referred to as the "project companies"), which arewholly-owned or controlled subsidiaries of the Company's controlling shareholder Hi-Speed Group, forrespective entrusted management of Juancheng-Heze Expressway, Longkou-Qingdao Expressway andWeifang-Rizhao Expressway, with the entrustment cost of 203,159,100 yuan in 2020.
On December 30, 2019, the Company signed entrustment agreements on operation managementswith Shandong Hi-speed Gaoguang Highway Co., Ltd., Shandong Hi-Speed Taidong Highway Co., Ltd.,and Shandong Hi-speed Linzao-Zaomu Highway Co., Ltd. (hereinafter collectively referred to as the"project companies"), which are controlled subsidiaries of Hi-Speed Group, for respective entrustedmanagement of Gaoqing-Guangrao Expressway, Tai'an-Dongping Expressway, and Linyi-Zaozhuang-Mushi Expressway, with the entrustment cost of 96,788,100 yuan in 2020.
Whereas, the controlling shareholder of Shandong Juanhe Expressway Co., Ltd., Shandong Hi-Speed Taidong Highway Co., Ltd., Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd., and ShandongHi-Speed Longqing Expressway Co., Ltd. has been changed from Hi-Speed Group to Shandong Hi-SpeedConstruction Management Group Co., Ltd., the wholly-owned subsidiary of Hi-Speed Group; ShandongHi-Speed Weiri Expressway Co., Ltd., and Shandong Hi-Speed Gaoguang Highway Co., Ltd. have beenmanaged by the Construction Management Group under the entrustment of Hi-Speed Group. On May 27,2020, the 2nd meeting of the Sixth Board of Directors of the Company reviewed and approved theProposal for Signing the Operation Management Entrustment Agreement. It was agreed in the meetingthat the Company, together with Construction Management Group and companies held by it or under itsmanagement including Shandong Hi-speed Gaoguang Highway Co., Ltd.,Shandong Hi-Speed TaidongHighway Co., Ltd., Shandong Hi-speed Linzao-Zaomu Highway Co., Ltd., Shandong Juanhe ExpresswayCo., Ltd., Shandong Hi-Speed Longqing Expressway Co., Ltd., and Shandong Hi-Speed WeiriExpressway Co., Ltd., jointly signed the Entrustment Agreement on Operation Management. The totalentrusted management cost is 299,947,200 yuan in 2020, and the trusteeship period is one year. The costto be shared by the project companies is determined by Construction Management Group in coordinationwith the project companies, and Construction Management Group is jointly and severally liable for theexpenses required to be paid by the project companies. See the Announcement of Shandong Hi-Speed onSigning Operation Management Entrustment Agreement and Progress of Daily Affiliate Transactions(announcement No.: L2020-024) disclosed by the company on May 29, 2020. 临 2020-024）。
3. Matters not disclosed in interim announcements
√ Applicable □ Not applicable
Unit: Ten thousand yuan Currency: RMB
| Affiliate Transaction Party | Affiliation Relationship | Type of Affiliate Transaction | Content of Affiliate Transaction | Affiliate Transaction Pricing Principle | Affiliate Transaction Price | Affiliate Transaction Amount |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controlling subsidiary of the parent company | Purchase goods | Equipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-Speed | Public bidding | 2434.48 | 2,434.48 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controlling subsidiary of the parent company | Purchase goods | Equipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-Speed (Beijing-Taibei) | Public bidding | 314.75 | 314.75 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controlling subsidiary of the parent company | Purchase goods | Equipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-Speed (Beijing-Shanghai) | Public bidding | 426.12 | 426.12 |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Special inspection (delivery acceptance quality inspection) contract for the reconstruction and expansion project of Dezhou (Provincial Boundary of Shandong and Hebei)-Qihe Section of Beijing-Taibei Expressway | Public bidding | 287.12 | 287.12 |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Special inspection (third-party inspection, bridge construction monitoring) contract for the reconstruction and expansion project of Dezhou (Provincial Boundary of Shandong and Hebei)-Qihe Section of Beijing-Taibei Expressway | Public bidding | 856.63 | 856.63 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction and production safety contracts for 2020 annual routine maintenance project (Xiajin Operation Management Center) of Shandong Hi-Speed | Public bidding | 2183.76 | 2,183.76 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction and safety contracts for 2020 annual routine maintenance project (Beijing-Taibei Expressway Jinan Operation Management Center) of Shandong Hi-Speed | Public bidding | 1765.42 | 1,765.42 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction contract for 2020 annual routine maintenance project (Linyi Operation Management Center Section) of Shandong Hi-Speed | Public bidding | 1099.13 | 1,099.13 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction and safety contracts for 2020 annual routine maintenance project (Weifang Operation Management Center) of Shandong Hi-Speed | Public bidding | 1191.56 | 1,191.56 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction contract for 2020 annual routine maintenance project (Weifang-Laiwu Operation Management Center) of Shandong Hi-Speed | Public bidding | 1695.75 | 1,695.75 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Holding subsidiary of parent company | Receive Labor service | Construction and production safety contracts for 2020 annual routine maintenance project (Yantai Operation Management Center JT Yanhai Section) of Shandong Hi-Speed | Public bidding | 1186.80 | 1,186.80 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction and safety contracts for 2020 annual routine maintenance project (Zibo Operation Management Center) of Shandong Hi-Speed | Public bidding | 743.13 | 743.13 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction and safety contracts for 2020 annual routine maintenance project (Qingdao Operation Management Center) of Shandong Hi-Speed | Public bidding | 845.32 | 845.32 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction contract agreement for 2020 annual routine maintenance project (Heze Operation Management Center GSFZ Heze-Guanzhuang Section) of Shandong Hi-Speed | Public bidding | 985.79 | 985.79 |
| Shandong Road and Bridge Group Co., Ltd. | Controlling subsidiary of the parent company | Purchase goods | Purchase contract for asphalt mixture and other products | Public bidding | 1659.51 | 1,659.51 |
| Shandong Road and Bridge Group Co., Ltd. | Controlling subsidiary of the parent company | Purchase goods | Purchase contract for asphalt mixture and other products | Public bidding | 1438.13 | 1,438.13 |
| Shandong Road and Bridge Group Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | General contracting project for design and construction of 2019-2020 special maintenance and repair works of Shandong Hi-Speed - Supplementary contract | Public bidding | 2234.68 | 2234.68 |
| Shandong Road and Bridge Group Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | General contracting project for design and construction of 2019-2020 special maintenance and repair works of Shandong Hi-Speed - Supplementary agreement for 2020 JT (Z) Xuchang-Bozhou | Public bidding | 3990.87 | 3990.87 |
| Section | ||||||
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | Construction contract for 2020 annual routine maintenance project (Hengyang-Shaoyang Section in Hunan) of Shandong Hi-Speed | Public bidding | 1077.66 | 1077.66 |
| Shandong Road and Bridge Group Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | General contracting project for design and construction of 2019-2020 special maintenance and repair works of Shandong Hi-Speed - Supplementary agreement (2020) | Public bidding | 2219.00 | 2219.00 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controlling subsidiary of the parent company | Purchase goods | Whole process monitoring system construction project (phase II) | Public bidding | 1649.29 | 1649.29 |
| Shandong Road and Bridge Group Co., Ltd. | Controlling subsidiary of the parent company | Receive Labor service | General contracting project for design and construction of 2019-2020 special maintenance and repair works of Shandong Hi-Speed - Supplementary agreement for KG Hubei Wuhan-Jingmen assets | Public bidding | 5215.15 | 5,215.15 |
| (2020) | |||||
| Total | / | / | 35,500.05 | ||
| Details of large sales returns | None | ||||
| Description of affiliate transactions | The above-mentioned affiliate transactions are all carried out through public bidding, so it is not inevitable and continuous for affiliates to win the bid in the Company's public bidding. The foregoing affiliate transactions have no influence on the independency of the Company | ||||
accumulated net profit of 649,522,579.43 yuan from 2018 to 2019, reaching 62.67% of the accumulatednet profit of 960,554,869.89 yuan in the three fiscal years as promised by Shandong Hi-Speed Group.Affected by the epidemic, Wujing Company's net profit in the first half of 2020 was -47,504,426.80 yuan(unaudited).
(III) Major Affiliate Transactions Involving Joint External Investment
1. Matters disclosed in interim announcements without progress or change in follow-upimplementation
□ Applicable √ Not applicable
2. Matters disclosed in interim announcements with progress or change in follow-upimplementation
√ Applicable □ Not applicable
During the reporting period, the affiliate transactions occurred in the Company's asset acquisition orequity acquisition and sale have been disclosed in detail in "Section IV. Operation Discussion andAnalysis → II. Major Operation Details during the Reporting Period → (IV) Investment Analysis → 1.Overall Analysis of External Equity Investment → (1) Major equity investment".
3. Matters not disclosed in interim announcements
□ Applicable √ Not applicable
(IV) Creditor's Rights and Debts Between the Company and Affiliate Parties
1. Matters disclosed in interim announcements without progress or change in follow-up implementation
□ Applicable √ Not applicable
2. Matters disclosed in interim announcements with progress or change in follow-upimplementation
□ Applicable √ Not applicable
3. Matters not disclosed in interim announcements
□ Applicable √ Not applicable
(V) Other Major Affiliate Transactions
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
XI. Material Contracts and Their Performance
Trusteeship, contracting and leasing
√ Applicable □ Not applicable
(1)
Trusteeship
□ Applicable √ Not applicable
(2)
Contracting
□ Applicable √ Not applicable
(3)
Leasing
√ Applicable □ Not applicable
Description of leasing
During the reporting period, the trusteeship of the Company has been disclosed in the section of
"Affiliate Transactions Relating to Daily Operations"
Guarantee
√ Applicable □ Not applicable
Unit: Hundred Million Yuan Currency: RMB
| External guarantees of the Company (excluding guarantees to subsidiaries) | |||||||||||||
| Guarantor | Relation Between Guarantor and Listed Company | Guaranteed Party | Guarantee Amount | Date of Guarantee (Date of Agreement) | Starting Date of Guarantee | Due Date of Guarantee | Guarantee Type | Whether the Guarantee Has Been Fulfilled or Not | Whether the Guarantee is Overdue | Guarantee Amount Overdue | Is There Counter Guarantee | Whether It is Affiliate Guarantee or Not | Affiliation Relationship |
| Guarantee amount sum during the reporting period (excluding guarantee to subsidiaries) | 0 | ||||||||||||
| Guarantee amount balance at the end of the reporting period (A) (excluding guarantee to subsidiaries) | 0 | ||||||||||||
| Guarantee of the Company to its subsidiaries | |||||||||||||
| Guarantee amount sum to subsidiaries during the reporting period | 0 | ||||||||||||
| Guarantee amount balance at the end of the reporting period (B) (excluding guarantee to subsidiaries) | 7.63 | ||||||||||||
| External guarantees of the Company (excluding guarantees to subsidiaries) | |||||||||||||
| Guarantee sum (A+B) | 7.63 | ||||||||||||
| Proportion of guarantee sum in the net assets of the Company (%) | 2.45 | ||||||||||||
| Including: | |||||||||||||
| Guarantee amount for shareholders, actual controller and affiliates (C) | 0 | ||||||||||||
| Debt liabilities for guaranteed parties whose direct or indirect asset-liability ratio is over 70% (D) | 2.9 | ||||||||||||
| Total guarantee amount exceeding 50% of the net assets (E) | 0 | ||||||||||||
| Guarantee sum of the foregoing three items (C+D+E) | 2.9 | ||||||||||||
| Description of possible joint and several liability for unexpired guarantee | None | ||||||||||||
| Description of guarantee | (1) The 18th meeting of the Fifth Board of Directors of the Company held on March 30, 2018, and its general meeting of shareholders of 2017 held on April 20, 2018 reviewed and approved the Pre-plan for Making up the Difference for the Shares of the Proposed Limited Partnership, and agreed to bear the obligations to repurchase and make up the difference for the expected investment income and actual capital contribution during the investment period for No. 21 Tongda collective fund trust plan of Hwabao Trust, the limited partnership of proposed Jinan Changying Jintai No. 1 Partnership (hereinafter referred to as "No. 21 Tongda") and No. 22 | ||||||||||||
and the Announcement of Shandong Hi-Speed on Providing Guarantee for Existing Loans ofLuzhou Southeast Expressway Development Co., Ltd. (announcement No.: L 2019-057). As ofJune 30, 2020, the project has not yet completed the equity transfer, and the Company has notyet provided a guarantee for it.To sum up, as of June 30, 2020, the Company and its holding subsidiaries have approved externalguarantees with an accumulated amount of 11.225 billion yuan, where the Company and itssubsidiaries have approved guarantees with an accumulated amount of 4,475 million yuan to itssubsidiaries, respectively accounting for 34.95% and 13.93% of the latest audited net asset valueof the Company. During the reporting period, the actual amount of external guarantees of theCompany was zero yuan (excluding those to subsidiaries), and the actual amount of guarantees tosubsidiaries was zero yuan.
Other major contracts
□ Applicable √ Not applicable
XII. Poverty Alleviation Work of Listed Company
√ Applicable □ Not applicable
1. Targeted poverty alleviation plans
√ Applicable □ Not applicable
In accordance with the unified deployment of the CPC Central Committee, CPC ShandongProvincial Committee and People's Government of Shandong Province, the Company sent "majorsecretaries" to carry out poverty alleviation in Dali Village, Yidukou Town, Lingcheng District, Dezhou,and Zhangzhuang Administrative Village, Wudian Town, Mudan District, Heze respectively. They madeassistance plans based on the strategy of targeted poverty recognition, alleviation and elimination: First,they insisted on putting Party construction in the first place, and planning, deploying and boosting Partyconstruction and poverty alleviation simultaneously, and did their utmost to assist the village committeesin replenishing the basic-level Party organization force, perfecting the basic-level Party organizationsystems, and giving full play to the role as fighting bastions of the basic-level Party organizations inpoverty alleviation. Second, they upheld the infrastructure construction. On the basis of soliciting opinionsand suggestions from the villagers, and combined with the planning of the higher-level government, theystudied and formulated plans for rural construction, improved irrigation water conditions for agriculturalproduction, and created modern and beautiful villages to lay a solid foundation for poverty alleviation.Third, they insisted on doing a good job in epidemic prevention and control. According to the situation,they normalized epidemic prevention and control, and coordinated the work of epidemic prevention andcontrol and economic development, to resolutely win the battle of poverty alleviation. Fourth, theyinsisted on caring for poor families and senior Party members, carried out visits and consolation activities,and strengthened humanistic care, to constantly enhance the cohesion, work effectiveness and centralforce of community-level Party organizations.
2. Outline of targeted poverty alleviation within the report period
√ Applicable □ Not applicable
In the first half year of 2020, the Company dispatched the "First Secretary" into villages for thefollowing tasks: First, they exerted the leadership and safeguard functions of Party construction, organizeParty members in the villages to deeply learn Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era and spirit of the 19th Communist Party of China National Congress in formsof General Assembly meeting, branch committee meeting, party group meeting and Party lectures, as wellas thematic Party day, etc., and constantly improve the Party cadres' political and comprehensive quality.Second, they took targeted and differentiated measures to fight against poverty. The "First Secretary" ofDali Village implemented the poverty elimination project by renovating and upgrading farm irrigation tohelp the village improve the farm irrigation conditions. Third, they gave the great impetus to theconstruction of beautiful countrysides. Combined with the actual situation of the village, the "FirstSecretary" in Zhangzhuang Village took the initiative to apply for assistance funds to transform the villagecultural center, upgrade the village party building facilities, conduct wall painting and wall colored
drawing in the village, and promote the DTH project, which effectively improved the living environmentof the villagers and enriched the cultural life of the masses. Fourth, they seriously carried out epidemicprevention and control. During the epidemic period, epidemic prevention materials were in short supply.The company's "First Secretary" in the village actively contacted the manufacturers to purchase thedisinfection stock solution and distributed to the villagers, especially the poor villagers, scientificallyguided the disinfection of their own courtyards and houses, improved the village-level disinfection andsterilization ability to ensure a good job in epidemic prevention and control. Fifth, they insisted on visitingactivities on major holidays. On Spring Festival and July 1 Party's Day, they visited impoverishedhouseholds and brought articles of daily use to them, made the people in difficulties feel care and warmthfrom the bottom of heart.
3. Targeted poverty alleviation achievements
√ Applicable □ Not applicable
Unit: Ten thousand yuan Currency: RMB
| Indicator | Quantity and Progress |
| I. Overall Situation | |
| Including: 1. Capital | 70 |
| 2. Funds converted from materials | 0.4680 |
| 3. Assistance in establishing archives for the impoverished population for getting rid of poverty (Persons) | 23 |
| II. Sub-project Investment | |
| 1. Poverty elimination by fostering industries | |
| 2. Poverty elimination by transferring labor force | |
| 3. Poverty elimination by relocating the poor | |
| 4. Poverty elimination by strengthening education | |
| 5. Poverty alleviation by safeguarding healthcare | |
| 6. Poverty relief through ecological protection | |
| 7. Catch-all security | |
| 8. Society for poverty alleviation | |
| 9. Other projects | |
| Including: 9.1. Project quantity (projects) | 3 |
| 9.2. Investment amount | 70.4680 |
| 9.3. Assistance in establishing archives for the impoverished population for getting rid of poverty (Persons) | 23 |
| 9.4. Explanations of other projects | 1. Farm irrigation renovation and upgrading project 2. Beautiful village construction 3. Visiting |
| III. Award (Content and level) | |
which greatly improved the irrigation conditions of the village and solved the practical problems ofvillagers' difficulty in using water and irrigating land. The "First Secretary" in Zhangzhuang Villageapplied for 490,000 yuan for the beautiful village construction in Zhangzhuang Village from 2020 to 2021.By the end of July, the established village appearance improvement plan in 2020 had been completed.
5. Subsequent targeted poverty alleviation plans
√ Applicable □ Not applicable
The year 2020 is the final year of building a moderately prosperous society in all respects andimplementing the 13th Five-Year Plan, and it is a year of the completion of poverty alleviation. The Partycommittee of the Company will insist on the guidance of Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era, and coordinate epidemic prevention and control with targeted povertyalleviation in accordance with the deployment requirements of the CPC Central Committee, ProvincialCommittee of the CPC and superior Party committees, and clinch a complete victory in the fight againstpoverty. First, further promote the deep integration between Party construction and poverty alleviation.The Company will stick to the philosophy of "guidance of Party construction", continuously propel thework pattern of "Party construction + targeted poverty alleviation", and provide strong organizationguarantee for securing the victory in poverty alleviation. Second, further promote the deep integrationbetween policy guidance and poverty alleviation. The Company will organize Party members and cadreson a regular basis to go over spirit of important speeches on poverty alleviation addressed by GeneralSecretary Xi Jinping, strengthen learning targeted poverty alleviation policies at the provincial, municipaland district levels, and further improve their political quality; strengthen communication with superioranti-poverty departments, master the updated poverty alleviation policies in a timely manner. Third,further promote the deep integration between infrastructure renovation and upgrading and povertyalleviation. The Company will constantly promote the construction of beautiful countrysides, better thelivable environment in countrysides, strictly implement the requirements of "two don't worries and threeguarantees", further improve the rural and agricultural production conditions, and continuously enhancethe happiness of farmers. Fourth, further promote the deep integration of normalized epidemic preventionand control and poverty alleviation, and carry out normalized epidemic prevention and control accordingto the actual situation. Fifth, further promote the deep integration of caring and poverty alleviation for oldParty members and people in difficulty. At the same time, carry out the activities of send warm in coldwinter, and earnestly bring the warmth of the Party to the hearts of villagers.
XIII. Convertible corporate bonds
□ Applicable √ Not applicable
XIV. Environmental Information(I). Explanations of environmental protection of companies which are key pollutant dischargingunits announced by environmental protection administration and their important subsidiaries
√ Applicable □ Not applicable
1.
Pollution discharge
√ Applicable □ Not applicable
a. Wastewater discharge
| Name of company or subsidiary | Pollutant discharging item | Name of major pollutants | Discharging way | Discharge outlet distribution | Pollutant discharge standards executed | Excessive discharge |
| Shandong Hi-speed Environmental Technology | Hanting District Sewage Treatment | Chemical oxygen demand (COD) | Organized and continuous | Main water outlet | Class 1 Standard A≤50 mg/L in Table 1, Discharge | None |
| Co., Ltd. | Plant | Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | ||||
| Biochemical oxygen demand (BOD5) | Organized and continuous | Main water outlet | Class 1 Standard A≤10 mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Suspended solids (SS) | Organized and continuous | Main water outlet | Class 1 Standard A≤10 mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Ammonia nitrogen (NH3-N) (N) | Organized and continuous | Main water outlet | Class 1 Standard A≤5 mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Total nitrogen (N) | Organized and continuous | Main water outlet | Class 1 Standard A≤ 15mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
| Total phosphorus (P) | Organized and continuous | Main water outlet | Class 1 Standard A≤0.5 mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
| Animal and vegetable oil | Organized and continuous | Main water outlet | Class 1 Standard A≤1 mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
| Oils | Organized and continuous | Main water outlet | Class 1 Standard A≤1 mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
| PH Value | Organized and continuous | Main water outlet | Class 1 Standard A 6-9 in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | Normal |
| Number of fecal coliforms (number/L) | Organized and continuous | Main water outlet | Class 1 Standard A 103 in Table 1, Discharge Standard of Pollutants for Municipal | None |
WastewaterTreatmentPlant(GB18918-2002)
Shandong Hi-Speed Environmental Protection Science and Technology Co., Ltd. has a dischargeoutlet in which an automatic online monitoring device is installed and connected with environmentalprotection supervision departments at the district, municipal, provincial and national levels, andcentralized discharges processed sewage continuously.
In the first half of 2020, the cumulative discharge of chemical oxygen demand (COD) was 61.5 tons,and the reduction rate was 97.69%; the cumulative emission of ammonia nitrogen (NH3-N) was 2.2 tons,and the reduction rate was 98.63%; the total phosphorus was 0.233 tons, and total nitrogen was 33.5 tons,all of which met the standard requirements.
b. Wastewater discharge
| Name of company or subsidiary | Pollutant discharging item | Name of major pollutants | Discharging way | Pollutant discharge standards executed | Excessive discharge |
| Shandong Hi-speed Environmental Technology Co., Ltd. | Hanting District Sewage Treatment Plant | Ammonia | Organized | Class 1 Standard 1.0 mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
| Sulfuretted hydrogen (Hzs) | Organized | Class 1 Standard 0.03 mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Odor concentration (Dimensionless) | Organized | Class 1 Standard 10 mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Methane (The maximum volume concentration in plant area %) | Organized | Class 1 Standard 0.5 mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
Ltd. disposed sludges in a timely manner, meeting the requirements of the local environmental protectionsupervisory authorities.
2.
Construction and operation of pollution prevention and control facilities
√ Applicable □ Not applicable
a. Wastewater treatmentShandong Hi-Speed Environmental Protection Science and Technology Co., Ltd. mainly treatedmunicipal sewage in Hanting District, and the current design treatment scale is 25000 m
/d, and the actualdaily treatment scale is 23000 m
/d in the first half of 2020, covering a total area of 29.43 mu (1 mu ≈
666.67m2). Sewage treatment process: Urban sewage pipe network → inlet well → coarse screen →sewage pump plant → fine screen → vortex-type grit chamber → distribution well → AAO pool →secondary sedimentation tank → high-density sedimentation tank → cloth filter → UV disinfection tank→ Zhuo River, the effluent quality is executed Class I Standard A of Discharge Standard of Pollutantsfor Municipal Wastewater Treatment Plant (GB18918-2002)
b. Exhaust gas treatmentCentralized collection, treatment and emission techniques are adopted. Induced draft fans are usedto collect exhaust gas in a centralized manner, and the collected exhaust gas is emitted after centralizedtreatment in biological deodorization tower.
Exhaust ga treatment facilities are in good operation condition, are qualified in correspondingdetection, and meet the emission requirements of Discharge Standard of Pollutants for MunicipalWastewater Treatment Plant (GB18918-2002).
3.
Assessment of environmental influence from construction projects and other administrative
licensing for environmental protection
√ Applicable □ Not applicable
For purpose of projects under construction and those completed ones, Shandong Hi-SpeedEnvironmental Protection Science and Technology Co., Ltd. has implemented the system of “the facilitiesfor environmental protection must be designed, constructed and put to use or into operationsimultaneously with the main part of a construction project” in accordance with requirements of relevantnational laws and regulations, and all of its projects have been under environmental influence assessmentas required and approved by environmental protection agencies. Meanwhile, the Company hassuccessfully applied for franchise license and pollutant discharge license according to regulations.
Franchising No.: WZJSP [2019] Sewage No. 3001, valid from September 8, 2019 to September 7,2022. Pollutant Discharge License No.: 91370703680660976K001Y, valid from June 28, 2019 to June27, 2022.
4.
Contingency plan for environmental emergencies
√ Applicable □ Not applicable
To establish and perfect the environmental pollution event contingency mechanism, effectivelyprevent and reduce environmental emergencies, carry out emergency disposal of environmentalemergencies rapidly and scientifically, enhance the capacity for emergency management of abruptenvironmental pollution accidents which involve public crisis, and prevent pollution from suchenvironmental emergencies to public environment, Shandong Hi-Speed Environmental ProtectionScience and Technology Co., Ltd., in accordance with relevant national laws and regulations, bycombining with its actual situations, and based on the principles of "prevention first, uniform leadership,classified management and tiered response", has prepared a corresponding contingency plan forenvironmental emergencies and filed to the local environmental protection authority (Filing No.: 370703-2018-095-L).
Shandong Hi-speed Environmental Protection Technology Co., Ltd. regularly carries out the trainingon the emergency plan and evaluation of the training contents and methods. According to the requirementsof the plan, Shandong Hi-speed Environmental Protection Technology Co., Ltd. shall organize emergencydrill at least once a year to improve the ability of the enterprise to deal with sudden environmentalpollution accidents and effectively prevent and control the occurrence of environmental pollution
accidents.
5.
Environment self-monitoring scheme
√ Applicable □ Not applicable
The sewage outfall of Shandong Hi-speed Environmental Protection Technology Co., Ltd. isinstalled with online monitoring and other self-monitoring systems to monitor the wastewater dischargein real time; the qualified environmental testing institutions are entrusted to carry out monthly routinetesting of the water quality at both inlet and outlet of the plant; the qualified environmental testinginstitutions are entrusted to carry out quarterly testing of the wastewater and waste gas in the plant; theannual self-monitoring scheme is formulated and reported to the superior Environmental ProtectionBureau for record. Regularly fill in the self inspection information input system, self monitoring schemeand annual report of key state monitoring enterprises.
6.
Other environmental information that shall be disclosed
□ Applicable √ Not applicable
(II) Environmental protection situation of companies other than key pollutant discharge units.
√ Applicable □ Not applicable
Except for Shandong Hi-speed Environmental Protection Technology Co., Ltd., the Company andits other subsidiaries do not belong to key pollutant discharge units as published by the environmentalprotection department. In order to better protect the environment and cope with climate changes, thiscompany and its subsidiaries have taken the measures as follows: First, take environmental protectionmeasures such as dust prevention, noise reduction and waste recycle during the expressway maintenanceand for new construction and reconstruction projects; second, serve green travel and provide chargingpiles in the service area; third, implement and complete the requirement of the State Council to cancel theprovincial toll station of expressway, to promote and popularize the ETC payment method, and to improvethe crossing traffic efficiency and reduce the exhaust.
(III) Reasons for non-disclosure of environmental information of companies other than keypollutant discharge units.
□ Applicable √ Not applicable
(IV) Description of follow-up progress or changes of environmental information disclosed within thereporting period.
□ Applicable √ Not applicable
XV. Explanations of Other Significant Events(I) Compared with the previous accounting period, the changes in accounting policies, accountingestimates and accounting methods, the reasons and their impacts
√ Applicable □ Not applicable
During the reporting period, the Company changed its accounting policies according to therequirements of the new income standards. See "Note V, 44" of this report for details.
(II) The situation, the amount of correction, the reason and the impact of the correction of majoraccounting errors during the reporting period
□ Applicable √ Not applicable
(III) Others
□ Applicable √ Not applicable
Section VI Changes in ordinary shares and shareholders
I. Changes in share capital(I) Statement of share changes
1. Statement of share changes
Within the reporting period, there was no change in the total number of shares and the share capitalstructure of the Company.
2. Description of share changes
□ Applicable √ Not applicable
3. The impact of share changes on financial indicators such as earnings per share and net assets pershare from the reporting period to the disclosure date of the semi-annual report (if any)
□ Applicable √ Not applicable
4. Other contents deemed necessary by the Company or required to be disclosed by the securitiesregulatory authority.
□ Applicable √ Not applicable
(II) Changes in restricted shares.
□ Applicable √ Not applicable
II. Shareholders information(I) Total number of shareholders:
| Total number of ordinary shareholders by the end of the reporting period | 46,652 |
| Total number of preferred shareholders whose voting rights have been restored as of the end of the reporting period (household) | 0 |
| Information of shares held by top ten shareholders | |||||||
| Name of shareholder (full name) | Increase and decrease in the reporting period | Number of shares held at the end of the period | Proportion(%) | Number of shares held with trading limited conditions | Pledge or freezing status | Property of shareholders | |
| Status of shares | Qty. | ||||||
| Shandong Hi-Speed Group Co., Ltd. | 0 | 2,870,656,188 | 59.67 | 0 | Pledge | 977,000,000 | State-owned legal person |
| China Merchants Expressway Network & Technology Holdings Co., | 12,870,034 | 783,613,507 | 16.29 | 0 | None | Others | |
| Ltd. | |||||||
| Shandong Hi-speed Group-CICC 17 shangao EB guarantee and trust property special account | 0 | 540,970,671 | 11.24 | 0 | None | Others | |
| National Social Security Fund 108 Portfolio | 42,688,201 | 42,688,201 | 0.89 | 0 | None | Others | |
| Bosera Fund Management Co., Ltd.-Social Security Fund 16011 Portfolio | 33,500,050 | 33,500,050 | 0.7 | 0 | None | Others | |
| Hong Kong Securities Clearing Company Ltd. | -12,659,507 | 22,518,195 | 0.47 | 0 | None | Others | |
| Bank of China Limited-Guangfa Premium Enterprise Selected Flexible Configuration Hybrid Securities Investment Fund | 16,000,000 | 16,000,000 | 0.33 | 0 | None | Others | |
| China Construction Bank-Penghua Value Advantage Hybrid Securities Investment Fund (LOF) | 15,665,555 | 15,665,555 | 0.33 | 0 | None | Others | |
| China Merchants Bank Co., Ltd. -Shanghai Stock Exchange Dividend Trading Open | 5,713,700 | 15,319,300 | 0.32 | 0 | None | Others |
| Index Securities Investment Fund | |||||||||
| China Construction Bank-Bosera Theme Industrial Hybrid Securities Investment Fund (LOF) | 14,000,025 | 14,000,025 | 0.29 | 0 | None | Others | |||
| Information of shares held by top ten shareholders without trading limited conditions | |||||||||
| Shareholder Name | Number of marketable shares held without trading limited conditions | Type and number of shares | |||||||
| Variety | Qty. | ||||||||
| Shandong Hi-Speed Group Co., Ltd. | 2,870,656,188 | Common stock (CNY) | 2,870,656,188 | ||||||
| China Merchants Expressway Network & Technology Holdings Co., Ltd. | 783,613,507 | Common stock (CNY) | 783,613,507 | ||||||
| Shandong Hi-speed Group-CICC 17 shangao EB guarantee and trust property special account | 540,970,671 | Common stock (CNY) | 540,970,671 | ||||||
| National Social Security Fund 108 Portfolio | 42,688,201 | Common stock (CNY) | 42,688,201 | ||||||
| Bosera Fund Management Co., Ltd.-Social Security Fund 16011 Portfolio | 33,500,050 | Common stock (CNY) | 33,500,050 | ||||||
| Hong Kong Securities Clearing Company Ltd. | 22,518,195 | Common stock (CNY) | 22,518,195 | ||||||
| Bank of China Limited-Guangfa | 16,000,000 | Common stock (CNY) | 16,000,000 | ||||||
| Premium Enterprise Selected Flexible Configuration Hybrid Securities Investment Fund | |||
| China Construction Bank-Penghua Value Advantage Hybrid Securities Investment Fund (LOF) | 15,665,555 | Common stock (CNY) | 15,665,555 |
| China Merchants Bank Co., Ltd. -Shanghai Stock Exchange Dividend Trading Open Index Securities Investment Fund | 15,319,300 | Common stock (CNY) | 15,319,300 |
| China Construction Bank-Bosera Theme Industrial Hybrid Securities Investment Fund (LOF) | 14,000,025 | Common stock (CNY) | 14,000,025 |
| Descriptions for related relationship or acting in concert of shareholders | The company does not know whether there is related relationship or belong to the concerted action relationship stipulated in the Measures for the Administration of Acquisition of Listed Companies among the above shareholders. | ||
| Descriptions for preference shareholders whose voting rights is resumed and number of preference | None | ||
shares held
Note: In order to issue exchangeable corporate bonds, Shandong Hi-speed Group Co., Ltd., the controllingshareholder of the Company, pledged 540,970,774 shares held to the special account of Shandong Hi-speed Group-CICC-17 shangao EB guarantee and trust property, but it is not the reduction of majorshareholders. The aforesaid bonds have entered into the share exchange period on April 26, 2018, and theshare exchange period is from April 26, 2018 to April 23, 2022. As of the end of the reporting period, thenumber of shares held by Shandong Hi-speed Group-CICC-17 shangao EB guarantee and trust propertyspecial account was 540,970,671 shares.
Number of shares held by the top ten shareholders with limited sales conditions and restrictions on sales
□ Applicable √ Not applicable
(III) Strategic investors or general legal persons become the top 10 shareholders due to theissuance of new shares
□ Applicable √ Not applicable
III. Changes of controlling shareholders and actual controllers
□ Applicable √ Not applicable
Section VII Related situation of preferred shares
□ Applicable √ Not applicable
Section VIII Changes of directors, supervisors, senior managers and
employees
I. Shareholding changes(I) Shareholding changes of current and outgoing directors, supervisors and senior managementduring the reporting period
□ Applicable √ Not applicable
Other situations
□ Applicable √ Not applicable
(II) Equity incentive granted to directors, supervisor and senior managers during the reportingperiod.
√ Applicable □ Not applicable
Unit: 10,000 shares
| Name | Title | Number of stock options held at the beginning of the period | Number of newly granted stock options during the reporting period | Exercisable shares during the reporting period | Stock option exercise shares during the reporting period | Number of stock options held at the end of the period |
| Sai Zhiyi | Director | 0 | 74 | 0 | 0 | 0 |
| Lyu Sizhong | Director | 0 | 74 | 0 | 0 | 0 |
| Zhang Xiaobing | Director | 0 | 59 | 0 | 0 | 0 |
| Sui Rongchang | Director | 0 | 59 | 0 | 0 | 0 |
| Zhang Jun | Senior manager | 0 | 59 | 0 | 0 | 0 |
| Kang Jian | Senior manager | 0 | 59 | 0 | 0 | 0 |
| Chang Zhihong | Senior manager | 0 | 59 | 0 | 0 | 0 |
| Hou Fujin | Senior manager | 0 | 59 | 0 | 0 | 0 |
| Sun Jiarong | Senior manager | 0 | 59 | 0 | 0 | 0 |
| Zhou Liang | Senior manager | 0 | 59 | 0 | 0 | 0 |
| Total | / | 0 | 620 | 0 | 0 | 0 |
| Name | Title | Variation condition |
| Li Hang | Director | Resign |
| Yin Jijun | Director | Resign |
| Wei Shirong | Independent Director | Resign |
| Wang Feng | Independent Director | Resign |
| Luo Chuliang | Supervisor, Chairman of the Board of Supervisors | Resign |
| Sun Xu | Supervisor | Resign |
| Zhang Yiren | Employee Supervisor | Resign |
| Wang Xiaolei | Employee Supervisor | Resign |
| Sun Jiarong | Deputy General Manager | Resign |
| Zhang Xiaobing | Deputy General Manager | Resign |
| Liang Zhanhai | Director | Election |
| Zhang Xiaobing | Director | Election |
| Sui Rongchang | Director | Election |
| Fan Yuejin | Independent Director | Election |
| Wang Hui | Independent Director | Election |
| Chen Fang | Employee Supervisor | Election |
| Zhu Yuqiang | Employee Supervisor | Election |
| Liu Jingwei | Supervisor | Election |
| Yin Jijun | Supervisor | Election |
| Hou Fujin | Deputy General Manager | Employment |
Variation of directors, supervisors and senior management.
√ Applicable □ Not applicable
(1) On May 11, 2020, the term of the fifth Board of Directors of the Company expired. According to therelevant provisions of the Articles of Association, Mr. Li Hang and Mr. Yi Jijun ceased to serve asdirectors of the Company, and Mr. Wei Shirong and Ms. Wang Feng ceased to serve as independentdirectors.
(2) On May 11, 2020, the term of the fifth Board of Supervisors expired. According to the relevantprovisions of the Articles of Association, Mr. Luo Chuliang ceased to serve as supervisor and chairmanof the Board of Supervisors, Mr. Sun Xu ceased to serve as supervisor, and Mr. Zhang Yiren and Ms.Wang Xiaolei ceased to serve as employee supervisors.
(3) On April 1, 2020, Mr. Liu Jiarong resigned as the deputy general manager of the Company due towork needs.
(4) On April 2, 2020, Ms. Zhang Xiaobing resigned as the deputy general manager of the Company dueto work needs.
(5) On May 11, 2020, the Company convened the first Extraordinary General Meeting of Shareholders in2020, and deliberated and approved the Proposal on Election of Non-Independent Directors, Proposal onElection of Independent Directors and Proposal on Election of Supervisors by cumulative voting, andelected directors of the sixth Board of Directors and supervisors of the sixth Board of Supervisors, amongwhich Ms. Chen Fang and Mr. Zhu Yuqiang were elected as employee supervisors by the Company'sWorkers Congress.On May 11, 2020, the Company held the first meeting of the sixth Board of Directors (provisional), anddeliberated and approved the Proposal on Election of the Chairman and Vice Chairman of the Sixth Boardof Directors, the Proposal on Appointing the General Manager of the Company, and the Proposal onAppointing the Secretary of the Board of Directors of the Company.III. Other instructions
□ Applicable √ Not applicable
Section IX Relevant situation of corporate bonds
□ Applicable √ Not applicable
Section X Financial Statement
I. Audit Report
□ Applicable √ Not applicable
II. Financial Statements
Consolidated Balance Sheet
June 30, 2020Prepared by: Shandong High-speed Co., Ltd
Unit: Yuan Currency: RMB
| Item | Note(s) | June 30, 2020 | December 31, 2019 |
| Current assets: | |||
| Monetary funds | VII. 1 | 2,771,859,620.18 | 2,346,061,931.79 |
| Deposit reservation for balance | |||
| Funds lent | |||
| Trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | VII. 4 | 217,885,618.84 | 249,635,288.97 |
| Accounts receivable | VII. 5 | 608,091,519.30 | 215,489,980.54 |
| Receivables financing | |||
| Advanced payment | VII. 7 | 666,453,160.88 | 184,427,025.50 |
| Premiums receivable | |||
| Reinsurance accounts receivable | |||
| Reserves for reinsurance contract receivable | |||
| Other receivables | VII. 8 | 4,740,897,188.64 | 4,853,510,595.55 |
| Including: Interest receivable | |||
| Dividends receivable | 75,037,985.75 | 524,516,294.16 | |
| Redemptory monetary capital for sale | |||
| Stock | VII. 9 | 1,780,334,161.25 | 1,914,915,420.95 |
| Contract assets | |||
| Held-for-sale assets | |||
| Non-current assets due within one year | VII. 12 | 235,940,300.00 | 88,000,000.00 |
| Other current assets | VII. 13 | 225,672,903.70 | 1,177,850,329.49 |
| Total Current Assets | 11,247,134,472.79 | 11,029,890,572.79 | |
| Non-current assets: | |||
| Disbursement of loans and advances | |||
| Debt investment | VII. 14 | 2,033,000,000.00 | 2,288,507,600.00 |
| Other investment on bonds | |||
| Long-term receivables | |||
| Long term equity investment | VII. 17 | 11,293,902,634.73 | 10,876,650,896.87 |
| Other equity instrument | VII. 18 | 365,241,523.36 | 354,424,450.19 |
| investment | |||
| Other non-current financial assets | VII. 19 | 5,974,145,610.12 | 5,667,934,389.21 |
| Investment real estate | VII. 20 | 715,723,475.18 | 730,111,033.13 |
| Fixed assets | VII. 21 | 8,908,815,037.06 | 9,623,823,618.56 |
| Construction in process | VII. 22 | 3,635,582,551.38 | 2,321,215,695.29 |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | VII. 26 | 42,452,806,332.04 | 42,315,889,047.53 |
| Development expenditure | |||
| Goodwill | |||
| Long-term deferred expenses | VII. 29 | 7,444,416.64 | 8,123,554.12 |
| Deferred income tax assets | VII. 30 | 641,934,194.13 | 620,220,396.89 |
| Other non-current assets | VII. 31 | 2,654,047,337.85 | 2,133,153,751.99 |
| Total non-current assets | 78,682,643,112.49 | 76,940,054,433.78 | |
| Total assets | 89,929,777,585.28 | 87,969,945,006.57 | |
| Current liabilities | |||
| Short-term borrowings | VII. 32 | 1,446,003,111.67 | 572,762,465.75 |
| Borrowing from the central bank | |||
| Loans from other banks and other financial institutions | |||
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | VII. 35 | 161,430,962.91 | 33,211,430.37 |
| Accounts payable | VII. 36 | 2,939,254,508.27 | 4,993,276,757.09 |
| Advance receipt | VII. 37 | 202,159,235.46 | 263,755,294.16 |
| Contract liabilities | |||
| Financial assets sold for repurchase | |||
| Receipt of deposits and deposits from other banks | |||
| Funds received as agent of stock exchange | |||
| Acting underwriting securities | |||
| Employee pay payable | VII. 39 | 43,112,750.09 | 88,365,563.43 |
| Taxes payable | VII. 40 | 209,799,426.50 | 764,372,788.90 |
| Other payables | VII. 41 | 7,392,813,442.43 | 2,673,717,040.41 |
| Including: Interests payable | |||
| Dividends payable | 1,858,445,236.28 | 24,999,731.51 | |
| Handling charges and commissions payable | |||
| Cession insurance premiums payable | |||
| Liabilities held for sale | |||
| Other non-current liabilities due within one year | VII. 43 | 3,584,120,776.84 | 2,827,827,851.34 |
| Other current liabilities | VII. 44 | 4,019,210,972.37 | 2,514,549,315.05 |
| Total current liabilities | 19,997,905,186.54 | 14,731,838,506.50 | |
| Non-current liabilities | |||
| Reserve funds for insurance contracts | |||
| Long-term Loans | VII. 45 | 33,666,344,495.15 | 33,142,106,943.46 |
| Bonds payable | |||
| Including: PrePreferred sharesferred shares | |||
| Perpetual debt | |||
| Lease liabilities | |||
| Long-term payable | VII. 48 | 294,000,000.00 | 294,000,000.00 |
| Long-term payroll payable | VII. 49 | 258,449,029.84 | 242,396,564.49 |
| Estimated liabilities | VII. 50 | 75,092,626.46 | 75,404,513.49 |
| Deferred Income | VII. 51 | 1,495,453,611.98 | 1,178,770,166.60 |
| Deferred income tax liabilities | VII. 30 | 894,337,585.59 | 902,747,303.09 |
| Other non-current liabilities | |||
| Total non-current liabilities | 36,683,677,349.02 | 35,835,425,491.13 | |
| Total liabilities | 56,681,582,535.56 | 50,567,263,997.63 | |
| Owners’ equity (or shareholders’ equity) | |||
| Paid-in capital (or capital stock) | VII. 53 | 4,811,165,857.00 | 4,811,165,857.00 |
| Other equity instrument | VII. 54 | 2,000,000,000.00 | 2,000,000,000.00 |
| Including: PrePreferred sharesferred shares | |||
| Perpetual debt | 2,000,000,000.00 | 2,000,000,000.00 | |
| Capital reserves | VII. 55 | 2,400,322,438.81 | 4,836,763,252.70 |
| Minus: Treasury stock | |||
| Other comprehensive income | VII. 57 | 47,819,821.20 | 9,953,082.58 |
| Appropriate reserve | VII. 58 | 89,528,668.18 | 82,671,061.69 |
| Surplus reserves | VII. 59 | 3,164,742,776.43 | 3,164,742,776.43 |
| General risk reserves | |||
| Adjustment of the undistributed profits | VII. 60 | 16,463,826,127.61 | 18,381,877,261.99 |
| Total owner’s equities (or shareholders' equity) attributable to parent company | 28,977,405,689.23 | 33,287,173,292.39 | |
| Minority equity | 4,270,789,360.49 | 4,115,507,716.55 | |
| Total owner’s equities (shareholder’s equities) | 33,248,195,049.72 | 37,402,681,008.94 | |
| Total for Liabilities and Owners’ Equity (or Shareholders’ Equity) | 89,929,777,585.28 | 87,969,945,006.57 |
Balance Sheet of the Parent Company
June 30, 2020Prepared by: Shandong High-speed Co., Ltd
Unit: Yuan Currency: RMB
| Item | Note(s) | June 30, 2020 | December 31, 2019 |
| Current assets: | |||
| Monetary funds | 1,555,130,885.26 | 870,975,280.55 | |
| Trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | 30,282,995.06 | ||
| Accounts receivable | |||
| Receivables financing | |||
| Advanced payment | 19,668,894.18 | 11,562,276.40 | |
| Other receivables | XVII. 2 | 6,466,798,115.79 | 4,489,749,765.83 |
| Including: Interest receivable | |||
| Dividends receivable | 75,037,985.75 | ||
| Stock | 10,160.00 | ||
| Contract assets | |||
| Held-for-sale assets | |||
| Non-current assets due within one year | |||
| Other current assets | 41,864.44 | ||
| Total Current Assets | 8,071,891,050.29 | 5,372,329,187.22 | |
| Non-current assets: | |||
| Debt investment | 1,500,000,000.00 | 1,500,000,000.00 | |
| Other investment on bonds | |||
| Long-term receivables | |||
| Long term equity investment | XVII. 3 | 21,506,440,246.57 | 22,084,563,217.73 |
| Other equity instrument investment | 17,614,686.36 | 17,614,686.36 | |
| Other non-current financial assets | |||
| Investment real estate | 101,470,799.61 | 103,347,729.63 | |
| Fixed assets | 5,591,159,510.44 | 5,944,035,071.13 | |
| Construction in process | 2,690,782,609.79 | 1,523,216,463.56 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 25,680,173,883.49 | 26,139,356,460.31 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term deferred expenses | 1,003,702.81 | 1,499,423.29 | |
| Deferred income tax assets | 571,492,952.37 | 571,492,951.37 | |
| Other non-current assets | 3,554,047,337.85 | 2,707,210,551.70 | |
| Total non-current assets | 61,214,185,729.29 | 60,592,336,555.08 | |
| Total assets | 69,286,076,779.58 | 65,964,665,742.30 | |
| Current liabilities |
| Short-term borrowings | 4,207,900,000.00 | 3,404,762,465.75 | |
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 88,200,000.00 | ||
| Accounts payable | 2,320,630,126.82 | 4,299,771,896.22 | |
| Advance receipt | 0.00 | 34,980,345.86 | |
| Contract liabilities | |||
| Employee pay payable | 5,735,004.58 | 3,081,586.76 | |
| Taxes payable | 1,942,810.12 | 514,166,694.40 | |
| Other payables | 6,161,295,317.00 | 1,427,028,921.60 | |
| Including: Interests payable | |||
| Dividends payable | 1,828,243,025.66 | ||
| Liabilities held for sale | |||
| Other non-current liabilities due within one year | 2,454,979,082.52 | 1,971,942,633.55 | |
| Other current liabilities | 4,000,000,000.00 | 2,514,549,315.05 | |
| Total current liabilities | 19,244,285,452.71 | 14,170,283,859.19 | |
| Non-current liabilities | |||
| Long-term Loans | 24,043,955,676.95 | 23,264,718,125.26 | |
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual debt | |||
| Lease liabilities | |||
| Long-term payable | 297,258,943.01 | 294,000,000.00 | |
| Long-term payroll payable | 142,298,876.40 | 125,852,148.97 | |
| Estimated liabilities | |||
| Deferred Income | 615,616,037.50 | 301,639,375.00 | |
| Deferred income tax liabilities | 66,701,454.09 | 66,701,454.09 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 25,165,830,987.95 | 24,052,911,103.32 | |
| Total liabilities | 44,410,116,440.66 | 38,223,194,962.51 | |
| Owners’ equity (or shareholders’ equity) | |||
| Paid-in capital (or capital stock) | 4,811,165,857.00 | 4,811,165,857.00 | |
| Other equity instrument | |||
| Including: Preferred shares | |||
| Perpetual debt | |||
| Capital reserves | 1,958,800,994.18 | 3,723,794,637.56 | |
| Minus: Treasury stock | |||
| Other comprehensive income | 53,002,748.03 | 9,953,082.58 | |
| Appropriate reserve | |||
| Surplus reserves | 3,136,400,886.76 | 3,136,400,886.76 | |
| Adjustment of the undistributed profits | 14,916,589,852.95 | 16,060,156,315.89 | |
| Total owner’s equities (shareholder’s equities) | 24,875,960,338.92 | 27,741,470,779.79 |
| Total for Liabilities and Owners’ Equity (or Shareholders’ Equity) | 69,286,076,779.58 | 65,964,665,742.30 |
| Item | Note(s) | The first half year in 2020 | The first half year in 2019 |
| I. Total operating incomes | 4,049,639,902.51 | 4,761,607,723.15 | |
| Including: Revenue | VII. 61 | 4,049,639,902.51 | 4,761,607,723.15 |
| Interest income | |||
| Earned premiums | |||
| Handling charges and commissions incomes | |||
| II. Total operating costs | 3,946,005,984.93 | 3,382,364,699.55 | |
| Including: Business cost | VII. 61 | 3,047,980,373.48 | 2,610,176,520.28 |
| Interest expense | |||
| Handling charges and commissions expenses | |||
| Surrender value | |||
| Net amount of compensation payout | |||
| Net reserves for insurance liabilities | |||
| Expenditures dividend policy | |||
| Reinsurance expenses | |||
| Taxes and surcharges | VII. 62 | 32,628,016.89 | 40,077,412.01 |
| Selling expenses | VII. 63 | 40,234,228.65 | 25,667,073.18 |
| Management expenses | VII. 64 | 179,947,540.97 | 200,123,236.91 |
| Research and development (R&D) expenses | VII. 65 | 13,734,019.00 | 4,611,801.62 |
| Financial expenses | VII. 66 | 631,481,805.94 | 501,708,655.55 |
| Including: Interest expense | 836,914,128.53 | 572,838,717.00 | |
| Interest income | 205,779,848.48 | 72,530,618.66 | |
| Plus: Other income | VII. 67 | 24,211,622.07 | 6,687,313.28 |
| Investment income (“-”for loss) | VII. 68 | 484,172,266.97 | 939,522,359.78 |
| Including: Income from investments in associated enterprises and joint enterprises | 226,239,883.38 | 282,369,429.94 | |
| Derecognized gains on financial assets measured at amortized costs (“-” for losses) | |||
| Exchange gains (“-” for losses) |
| Net exposure hedge gains (“-” for losses) | |||
| Gains arising from fair value changes (“-” for losses) | |||
| Credit impairment losses (“-” for losses) | VII. 71 | -73,405,565.42 | -25,120,884.69 |
| Earnings of assets disposal (“-” for losses) | |||
| Asset disposal earnings (“-” for losses) | VII. 73 | -52,409,402.27 | |
| III. Operating Profit ("-" for losses) | 486,202,838.93 | 2,300,331,811.97 | |
| Plus: Non-business income | VII. 74 | 17,626,024.34 | 35,566,137.14 |
| Minus: Non-operating expenditure | VII. 75 | 20,343,338.54 | 3,203,486.03 |
| IV. Total Profit ("-" for total losses) | 483,485,524.73 | 2,332,694,463.08 | |
| Minus: Income tax expense | VII. 76 | 151,555,279.37 | 594,549,794.54 |
| V. Net Profit ("-" for net losses) | 331,930,245.36 | 1,738,144,668.54 | |
| (I) Classified by continuity of operation | |||
| 1. Net profit from continued operation ("-" for net losses) | 331,930,245.36 | 1,738,144,668.54 | |
| 2. Net profit from discontinued operation ("-" for net losses) | |||
| (II) Classified by attribution of ownership | |||
| 1. Net profit attributed to parent company stockholders ("-" for net losses) | 256,960,515.79 | 1,615,241,947.03 | |
| 2. Profits and losses of minority shareholders ("-" for net losses) | 74,969,729.57 | 122,902,721.51 | |
| VI. After-tax net amount of other comprehensive income | 37,866,738.62 | -11,976,005.18 | |
| (I) After-tax net amount of other comprehensive incomes attributable to owners of the parent company | 37,866,738.62 | -11,976,005.18 | |
| 1. Other comprehensive incomes that cannot be reclassified into profits and losses | -5,182,926.83 | ||
| (1) Re-measurement of changes in defined benefit plans | |||
| (2) Other comprehensive income that cannot be converted to profit and loss under equity method | |||
| (3) Fair value changes of other equity instrument investment | -5,182,926.83 | ||
| (4) Fair value changes of enterprise’s credit risk | |||
| 2. Other comprehensive income that will be reclassified into profits and losses | 43,049,665.45 | -11,976,005.18 | |
| (1) Other comprehensive income that can be converted to profit and loss under equity method | 43,049,665.45 | -11,976,005.18 | |
| (2) Fair value changes of other debt investment | |||
| (3) The amount of financial assets reclassified into other comprehensive income | |||
| (4) Reserves for credit impairment of other credit investments | |||
| (5) Cash flow hedging reserves | |||
| (6) Discount difference of foreign currency financial statements | |||
| (7) Others | |||
| (II) After-tax net amount of other comprehensive income attributable to minority shareholders | |||
| VII. Total comprehensive income | 369,796,983.98 | 1,726,168,663.36 | |
| (I) Total comprehensive income attributable to owners of the parent company | 294,827,254.41 | 1,637,384,216.58 | |
| (II) Total comprehensive income attributable to minority shareholders | 74,969,729.57 | 88,784,446.78 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share (yuan/share) | 0.053 | 0.336 | |
| (II) Diluted earnings per share (yuan/share) | 0.053 | 0.336 |
| Item | Note(s) | The first half year in 2020 | The first half year in 2019 |
| I. Operating income | XVII. 4 | 1,616,226,486.40 | 2,281,002,304.31 |
| Minus: Business cost | XVII. 4 | 1,380,067,349.12 | 1,114,278,690.22 |
| Taxes and surcharges | 10,217,088.14 | 12,312,175.20 | |
| Selling expenses | |||
| Management expenses | 44,347,811.44 | 54,264,245.23 | |
| Research and development (R&D) expenses | 3,696,362.26 | 16,203.90 | |
| Financial expenses | 485,060,354.95 | 234,437,521.75 | |
| Including: Interest expense | 693,367,681.50 | 308,574,690.83 | |
| Interest income | 208,357,567.03 | 75,664,132.16 | |
| Plus: Other income | |||
| Investment income (“-”for loss) | XVII. 5 | 979,241,042.38 | 269,328,221.70 |
| Including: Income from investments in associated enterprises and joint enterprises | 179,176,195.99 | 269,328,221.70 | |
| Derecognized gains on financial assets measured at amortized costs (“-” for losses) | |||
| Net exposure hedge gains (“-” for losses) | |||
| Gains arising from fair value changes (“-” for losses) | |||
| Credit impairment losses (“-” for losses) | 10,358,398.81 | ||
| Earnings of assets disposal (“-” for losses) | |||
| Asset disposal earnings (“-” for losses) | |||
| II. Operating Profit ("-" for losses) | 672,078,562.87 | 1,145,380,088.52 | |
| Plus: Non-business income | 14,533,641.80 | 16,905,541.10 | |
| Minus: Non-operating expenditure | 2,755,501.78 | 1,308,867.75 | |
| III. Total Profit ("-" for total losses) | 683,856,702.89 | 1,160,976,761.87 | |
| Minus: Income tax expense | -819,859.83 | 253,754,884.56 | |
| IV. Net Profit ("-" for net losses) | 684,676,562.72 | 907,221,877.31 | |
| (I) Net profit from continues operation ("-" for net losses) | 684,676,562.72 | 907,221,877.31 | |
| (II) Net profit from discontinuing operation ("-" for net losses) | |||
| V. After-tax net amount other comprehensive income | 43,049,665.45 | -11,976,005.18 | |
| (I) Other comprehensive incomes that can’t be reclassified into profit and loss | |||
| 1. Changes arising from the re-measurement of defined benefit plans | |||
| 2. Other comprehensive profits that cannot be converted into profits or losses under the equity method | |||
| 3. Fair value changes of other equity instrument investment | |||
| 4. Fair value changes of enterprise’s credit risk | |||
| (II) Other comprehensive incomes that will be reclassified into profit and loss | 43,049,665.45 | -11,976,005.18 | |
| 1. Other comprehensive incomes that can be converted into profits and losses under | 43,049,665.45 | -11,976,005.18 |
| the equity method | |||
| 2. Fair value changes of other debt investment | |||
| 3. The amount of financial assets reclassified into other comprehensive income | |||
| 4. Reserves for credit impairment of other credit investments | |||
| 5. Cash flow hedging reserves | |||
| 6. Translation difference in foreign currency statements | |||
| 7. Others | |||
| VI. Total comprehensive income | 727,726,228.17 | 895,245,872.13 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share (yuan/share) | |||
| (II) Diluted earnings per share (yuan/share) |
| Item | Note(s) | The first half year in 2020 | The first half year in 2019 |
| I. Net cash flow from operating activities: | |||
| Cash received from selling goods and providing services | 4,100,372,112.28 | 5,761,456,846.97 | |
| Net increase in customer deposits in banks and other financial institutions | |||
| Net increase in borrowings from central bank | |||
| Net increase of loans from other financial institutions | |||
| Cash received from receiving insurance premium of original insurance contract | |||
| Net cash received from reinsurance business | |||
| Net increase of policy holder deposits and investment funds | |||
| Cash received from interests, fees and commissions | |||
| Net increase of loans from other banks |
| Net increase in repurchase business capital | |||
| Net cash received from trading securities | |||
| Tax refunds received | |||
| Cash received from other operating activities | VII. 78 | 1,848,010,436.28 | 611,457,278.35 |
| Subtotal of cash inflows from business activities | 5,948,382,548.56 | 6,372,914,125.32 | |
| Cash paid for purchasing goods and receiving services | 2,429,944,766.57 | 1,445,743,222.98 | |
| Net increase in loans and advances to customers | |||
| Net increase in deposits in central bank and other financial institutions | |||
| Cash paid for indemnity of original insurance contract | |||
| Net increase in funds lent | |||
| Cash paid for interests, fees and commissions | |||
| Cash paid for policy dividends | |||
| Cash paid to and paid for staff | 566,037,353.26 | 615,331,391.13 | |
| Tax payments | 927,239,060.34 | 950,760,613.41 | |
| Other cash paid related to operating activities | VII. 78 | 374,833,073.41 | 833,046,477.73 |
| Subtotal of cash outflows from business activities | 4,298,054,253.58 | 3,844,881,705.25 | |
| Net cash flow from operating activities | 1,650,328,294.98 | 2,528,032,420.07 | |
| II. Cash flow from investment activities: | |||
| Cash received from disposal of investment | 175,215,245.76 | 1,650,000,000.00 | |
| Cash received from investment income | 894,511,816.51 | 241,975,135.67 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 9,251.15 | 28,519.44 | |
| Net cash received from disposal of subsidiaries and other business units | |||
| Other cash received related to investment activities | VII. 78 | 1,209,029,741.19 | 82,415,575.06 |
| Subtotal of cash inflows from investment activities | 2,278,766,054.61 | 1,974,419,230.17 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 3,696,184,569.07 | 4,552,482,174.71 | |
| Cash paid for investment | 758,058,344.75 | 1,456,106,080.05 | |
| Net increase in pledge loans |
| Net cash paid for the acquisition of subsidiaries and other business entities | 2,700,176,391.00 | ||
| Cash payment of other activities related to investment | VII. 78 | 69,863,408.76 | |
| Subtotal of cash outflows from investment activities | 7,154,419,304.82 | 6,078,451,663.52 | |
| Net cash flow from investment activities | -4,875,653,250.21 | -4,104,032,433.35 | |
| III. Cash flows from financing activities: | |||
| Cash received from absorbing investment | 1,541,300,000.00 | ||
| Including: Cash received from absorption of minority shareholders investment subsidiary | |||
| Cash received from debts | 8,383,474,799.87 | 11,125,400,000.00 | |
| Cash received from other activities related to financing | VII. 78 | 0.00 | 0.00 |
| Subtotal of cash inflows from financing activities | 9,924,774,799.87 | 11,125,400,000.00 | |
| Cash paid for settlement of debts | 4,872,669,375.43 | 5,381,083,035.23 | |
| Cash paid for dividend distribution, profit and interest | 1,399,583,855.71 | 617,971,182.65 | |
| Including: Dividends and profits paid to minority shareholders by subsidiaries | 574,588,046.26 | ||
| Cash payment of other activities related to financing | VII. 78 | 4,422,433.70 | 1,351,979.69 |
| Subtotal of cash outflows from financial activities | 6,276,675,664.84 | 6,000,406,197.57 | |
| Net cash flow from financing activities | 3,648,099,135.03 | 5,124,993,802.43 | |
| IV. Effect of exchange rate fluctuations on cash and cash equivalents | |||
| V. Net increase in cash and cash equivalents | 422,774,179.80 | 3,548,993,789.15 | |
| Plus: Cash and cash equivalents balance at the beginning of the period | 2,325,841,659.54 | 2,341,913,200.47 | |
| VI. Balance of cash and cash equivalents at the end of the period | 2,748,615,839.34 | 5,890,906,989.62 |
Cash Flow Statement of Parent Company
January to June, 2020
Unit: Yuan Currency: RMB
| Item | Note(s) | The first half year in 2020 | The first half year in 2019 |
| I. Net cash flow from operating activities: | |||
| Cash received from selling goods and providing services | 1,311,244,804.21 | 3,550,908,687.26 | |
| Tax refunds received | |||
| Cash received from other operating activities | 3,024,807,507.76 | 322,639,950.24 | |
| Subtotal of cash inflows from business activities | 4,336,052,311.97 | 3,873,548,637.50 | |
| Cash paid for purchasing goods and receiving services | 284,167,862.51 | 144,672,607.85 | |
| Cash paid to and paid for staff | 339,284,302.67 | 360,539,410.49 | |
| Tax payments | 577,907,908.30 | 508,003,306.82 | |
| Other cash paid related to operating activities | 1,668,868,771.51 | 1,341,453,084.19 | |
| Subtotal of cash outflows from business activities | 2,870,228,844.99 | 2,354,668,409.35 | |
| Net cash flow from operating activities | 1,465,823,466.98 | 1,518,880,228.15 | |
| II. Cash flow from investment activities: | |||
| Cash received from disposal of investment | 1,000,000,000.00 | 501,000,000.00 | |
| Cash received from investment income | 765,974,233.99 | 125,969,375.00 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | -225,777.25 | ||
| Net cash received from disposal of subsidiaries and other business units | |||
| Other cash received related to investment activities | 313,899,662.50 | 1,064,000,000.00 | |
| Subtotal of cash inflows from investment activities | 2,079,648,119.24 | 1,690,969,375.00 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 3,132,485,023.16 | 4,246,088,182.74 | |
| Cash paid for investment | 2,721,746,391.00 | 1,350,000,000.00 | |
| Net cash paid for the acquisition of subsidiaries and other business entities | |||
| Cash payment of other activities related to investment |
| Subtotal of cash outflows from investment activities | 5,854,231,414.16 | 5,596,088,182.74 | |
| Net cash flow from investment activities | -3,774,583,294.92 | -3,905,118,807.74 | |
| III. Cash flows from financing activities: | |||
| Cash received from absorbing investment | |||
| Cash received from debts | 7,882,705,104.50 | 6,227,400,000.00 | |
| Cash received from other activities related to financing | |||
| Subtotal of cash inflows from financing activities | 7,882,705,104.50 | 6,227,400,000.00 | |
| Cash paid for settlement of debts | 4,327,081,167.10 | 1,606,051,367.23 | |
| Cash paid for dividend distribution, profit and interest | 558,286,071.05 | 366,888,722.83 | |
| Cash payment of other activities related to financing | 4,422,433.70 | 1,340,587.91 | |
| Subtotal of cash outflows from financial activities | 4,889,789,671.85 | 1,974,280,677.97 | |
| Net cash flow from financing activities | 2,992,915,432.65 | 4,253,119,322.03 | |
| IV. Effect of exchange rate fluctuations on cash and cash equivalents | |||
| V. Net increase in cash and cash equivalents | 684,155,604.71 | 1,866,880,742.44 | |
| Plus: Cash and cash equivalents balance at the beginning of the period | 870,975,280.55 | 953,159,691.94 | |
| VI. Balance of cash and cash equivalents at the end of the period | 1,555,130,885.26 | 2,820,040,434.38 |
Consolidated Statement of Changes in Owner’s Equity
January to June, 2020
Unit: Yuan Currency: RMB
| Item | The first half year in 2020 | ||||||||||||||
| Equities attributable to the owners of parent company | Minority equity | Total owner's equity | |||||||||||||
| Paid-in capital (or share capital) | Other equity instrument | Capital reserves | Minus: Treasury stock | Other comprehensive income | Appropriate reserve | Surplus reserves | Provision for normal risks | Adjustment of the undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual debt | Others | |||||||||||||
| I. Ending balance of last year | 4,811,165,857.00 | 2,000,000,000.00 | 4,159,538,082.19 | 9,953,082.58 | 3,164,742,776.43 | 17,975,791,829.92 | 32,121,191,628.12 | 2,266,246,760.76 | 34,387,438,388.88 | ||||||
| Plus: Changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business combination under same control | 677,225,170.51 | 82,671,061.69 | 406,085,432.07 | 1,165,981,664.27 | 1,849,260,955.79 | 3,015,242,620.06 | |||||||||
| Others | |||||||||||||||
| II. Beginning balance of this year | 4,811,165,857.00 | 2,000,000,000.00 | 4,836,763,252.70 | 9,953,082.58 | 82,671,061.69 | 3,164,742,776.43 | 18,381,877,261.99 | 33,287,173,292.39 | 4,115,507,716.55 | 37,402,681,008.94 | |||||
| III. Increase or decrease amount in this period (“-” for decrease) | -2,436,440,813.89 | 37,866,738.62 | 6,857,606.49 | -1,918,051,134.38 | -4,309,767,603.16 | 155,281,643.94 | -4,154,485,959.22 | ||||||||
| (I) Total comprehensive income | 37,866,738.62 | 256,960,515.79 | 294,827,254.41 | 74,969,729.57 | 369,796,983.98 | ||||||||||
| (II) Capital invested and reduced by owners | - 2,436,440,813.89 | -346,768,624.51 | -2,783,209,438.40 | 647,668,649.67 | -2,135,540,788.73 | ||||||||||
| 1． Common stock invested by the owner | 5,778,000.00 | 5,778,000.00 | 659,109,571.08 | 664,887,571.08 | |||||||||||
| 2． Capitals invested by holders of other |
| equity instruments | |||||||||||||||
| 3． The amount of share-based payment included in the owner’s equity | |||||||||||||||
| 4． Others | -2,442,218,813.89 | -346,768,624.51 | -2,788,987,438.40 | -11,440,921.41 | -2,800,428,359.81 | ||||||||||
| (III) Distribution of the profits | -1,828,243,025.66 | -1,828,243,025.66 | -574,588,046.26 | -2,402,831,071.92 | |||||||||||
| 1． Withdrawal of surplus reserves | |||||||||||||||
| 2． Extraction of general risk reserve | |||||||||||||||
| 3． Distribution to the owners (or stockholders) | -1,828,243,025.66 | -1,828,243,025.66 | -574,588,046.26 | -2,402,831,071.92 | |||||||||||
| 4． Others |
| (IV) Internal carry-over of owner's equity | |||||||||||||||
| 1． Capital reserve converted into share capital (or stock) | |||||||||||||||
| 2． Surplus reserve converted into share capital (or stock) | |||||||||||||||
| 3． Surplus reserve compensated for losses | |||||||||||||||
| 4． Carry-over of changes in the defined benefit plans into retained income | |||||||||||||||
| 5． Other comprehensive income |
| carried forward to retained earnings | |||||||||||||||
| 6． Others | |||||||||||||||
| (V) Special reserves | 6,857,606.49 | 6,857,606.49 | 7,231,310.96 | 14,088,917.45 | |||||||||||
| 1． Extraction in this period | 7,195,976.03 | 7,195,976.03 | 7,597,563.30 | 14,793,539.33 | |||||||||||
| 2． Used in this period | 338,369.54 | 338,369.54 | 366,252.34 | 704,621.88 | |||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of the period | 4,811,165,857.00 | 2,000,000,000.00 | 2,400,322,438.81 | 47,819,821.20 | 89,528,668.18 | 3,164,742,776.43 | 16,463,826,127.61 | 28,977,405,689.23 | 4,270,789,360.49 | 33,248,195,049.72 |
| Item | The first half year in 2019 | ||||||||||||||
| Equities attributable to the owners of parent company | Minority equity | Total owner's equity | |||||||||||||
| Paid-in capital (or share capital) | Other equity instrument | Capital reserves | Minus: Treasury stock | Other comprehensive income | Appropriate reserve | Surplus reserves | Provision for normal risks 备 | Adjustment of the undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual debt | Others | |||||||||||||
| I. Ending balance of | 4,811,165,8 | 3,273,636,1 | 6,823,118. | 2,892,790,7 | 16,276,718, | 27,261,133, | 2,054,284,1 | 29,315,418, | |||||||
| last year | 57.00 | 01.65 | 95 | 37.78 | 131.16 | 946.54 | 78.79 | 125.33 | |||||||
| Plus: Changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business combination under same control | 677,225,170.51 | 499,997.74 | 65,869,092.34 | 0.00 | 319,713,385.69 | 1,063,307,646.28 | 1,763,493,895.12 | 2,826,801,541.40 | |||||||
| Others | |||||||||||||||
| II. Beginning balance of this year | 4,811,165,857.00 | 3,950,861,272.16 | 7,323,116.69 | 65,869,092.34 | 2,892,790,737.78 | 16,596,431,516.85 | 28,324,441,592.82 | 3,817,778,073.91 | 32,142,219,666.73 | ||||||
| III. Increase or decrease amount in this period (“-” for decrease) | -11,976,005.18 | 7,880,834.75 | 551,974,292.63 | 547,879,122.20 | 131,330,087.87 | 679,209,210.07 | |||||||||
| (I) Total comprehensive income | -11,976,005.18 | 1,615,241,947.03 | 1,603,265,941.85 | 122,902,721.51 | 1,726,168,663.36 | ||||||||||
| (II) Capital invested and reduced by owners | |||||||||||||||
| 1． Common stock |
| invested by the owner | |||||||||||||||
| 2． Capitals invested by holders of other equity instruments | |||||||||||||||
| 3． The amount of share-based payment included in the owner’s equity | |||||||||||||||
| 4． Others | |||||||||||||||
| (III) Distribution of the profits | -1,063,267,654.40 | -1,063,267,654.40 | -1,063,267,654.40 | ||||||||||||
| 1． Withdrawal of surplus reserves | |||||||||||||||
| 2． Extraction of general risk reserve | |||||||||||||||
| 3． Distribution to the owners (or stockholders) | -1,063,267,654.40 | -1,063,267,654.40 | -1,063,267,654.40 | ||||||||||||
| 4． Others | |||||||||||||||
| (IV) |
| Internal carry-over of owner's equity | |||||||||||||||
| 1． Capital reserve converted into share capital (or stock) | |||||||||||||||
| 2． Surplus reserve converted into share capital (or stock) | |||||||||||||||
| 3． Surplus reserve compensated for losses | |||||||||||||||
| 4． Carry-over of changes in the defined benefit plans into retained income | |||||||||||||||
| 5． Other comprehensive income carried forward to retained earnings | |||||||||||||||
| 6． Others | |||||||||||||||
| (V) Special |
| reserves | 7,880,834.75 | 7,880,834.75 | 8,427,366.36 | 16,308,201.11 | |||||||||||
| 1． Extraction in this period | 8,042,776.15 | 8,042,776.15 | 8,755,437.12 | 16,798,213.27 | |||||||||||
| 2． Used in this period | 161,941.40 | 161,941.40 | 328,070.76 | 490,012.16 | |||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of the period | 4,811,165,857.00 | 3,950,861,272.16 | -4,652,888.49 | 73,749,927.0900 | 2,892,790,737.78 | 17,148,405,809.48 | 28,872,320,715.02 | 3,949,108,161.78 | 32,821,428,876.80 |
| Item | The first half year in 2020 | ||||||||||
| Paid-in capital (or share capital) | Other equity instrument | Capital reserves | Minus: Treasury stock | Other comprehensive income | Appropriate reserve | Surplus reserves | Adjustment of the undistributed profits | Total owner's equity | |||
| Preferred shares | Perpetual debt | Others | |||||||||
| I. Ending balance of last year | 4,811,165,857.00 | 3,723,794,637.56 | 9,953,082.58 | 3,136,400,886.76 | 16,060,156,315.89 | 27,741,470,779.79 | |||||
| Plus: Changes in accounting policies | |||||||||||
| Early error correction | |||||||||||
| Others | |||||||||||
| II. Beginning balance of this year | 4,811,165,857.00 | 3,723,794,637.56 | 9,953,082.58 | 3,136,400,886.76 | 16,060,156,315.89 | 27,741,470,779.79 | |||||
| III. Increase or decrease amount in this period (“-” for decrease) | -1,764,993,643.38 | 43,049,665.45 | -1,143,566,462.94 | -2,865,510,440.87 | |||||||
| (I) Total comprehensive income | 43,049,665.45 | 684,676,562.72 | 727,726,228.17 | ||||||||
| (II) Capital invested and reduced by owners | -1,764,993,643.38 | -1,764,993,643.38 | |||||||||
| 1． Common stock invested by the owner | |||||||||||
| 2． Capitals invested by holders of other equity instruments | |||||||||||
| 3． The amount of share-based payment included in the owner’s equity | |||||||||||
| 4． Others | -1,764,993,643.38 | -1,764,993,643.38 | |||||||||
| (III) Distribution of the profits | -1,828,243,025.66 | -1,828,243,025.66 |
| 1． Withdrawal of surplus reserves | |||||||||||
| 2． Distribution to the owners (or stockholders) | -1,828,243,025.66 | -1,828,243,025.66 | |||||||||
| 3． Others | |||||||||||
| (IV) Internal carry-over of owner's equity | |||||||||||
| 1． Capital reserve converted into share capital (or stock) | |||||||||||
| 2． Surplus reserve converted into share capital (or stock) | |||||||||||
| 3． Surplus reserve compensated for losses | |||||||||||
| 4． Carry-over of changes in the defined benefit plans into retained income | |||||||||||
| 5． Other comprehensive income carried forward to retained earnings | |||||||||||
| 6． Others |
| (V) Special reserves | |||||||||||
| 1． Extraction in this period | |||||||||||
| 2． Used in this period | |||||||||||
| (VI) Others | |||||||||||
| IV. Balance at the end of the period | 4,811,165,857.00 | 1,958,800,994.18 | 53,002,748.03 | 3,136,400,886.76 | 14,916,589,852.95 | 24,875,960,338.92 |
| Item | The first half year in 2019 | ||||||||||
| Paid-in capital (or share capital) | Other equity instrument | Capital reserves | Minus: Treasury stock | Other comprehensive income | Appropriate reserve | Surplus reserves | Adjustment of the undistributed profits | Total owner's equity | |||
| Preferred shares | Perpetual debt | Others | |||||||||
| I. Ending balance of last year | 4,811,165,857.00 | 3,131,791,139.92 | 6,823,118.95 | 2,864,448,848.11 | 14,641,518,915.46 | 25,455,747,879.44 | |||||
| Plus: Changes in accounting policies | |||||||||||
| Early error correction | |||||||||||
| Others | |||||||||||
| II. Beginning balance of this year | 4,811,165,857.00 | 3,131,791,139.92 | 6,823,118.95 | 2,864,448,848.11 | 14,641,518,915.46 | 25,455,747,879.44 | |||||
| III. Increase or decrease amount in this period (“-” for decrease) | 7,324,255.04 | -11,976,005.18 | -156,045,777.09 | -160,697,527.23 | |||||||
| (I) Total comprehensive income | -11,976,005. | 907,221,877.31 | 895,245,872.13 | ||||||||
| 18 | |||||||||||
| (II) Capital invested and reduced by owners | 7,324,255.04 | 7,324,255.04 | |||||||||
| 1． Common stock invested by the owner | |||||||||||
| 2． Capitals invested by holders of other equity instruments | |||||||||||
| 3． The amount of share-based payment included in the owner’s equity | |||||||||||
| 4． Others | 7,324,255.04 | 7,324,255.04 | |||||||||
| (III) Distribution of the profits | -1,063,267,654.40 | -1,063,267,654.40 | |||||||||
| 1． Withdrawal of surplus reserves | |||||||||||
| 2． Distribution to the owners (or stockholders) | |||||||||||
| 3． Others | -1,063,267,654.40 | -1,063,267,654.40 | |||||||||
| (IV) Internal carry-over of owner's |
| equity | |||||||||||
| 1． Capital reserve converted into share capital (or stock) | |||||||||||
| 2． Surplus reserve converted into share capital (or stock) | |||||||||||
| 3． Surplus reserve compensated for losses | |||||||||||
| 4． Carry-over of changes in the defined benefit plans into retained income | |||||||||||
| 5． Other comprehensive income carried forward to retained earnings | |||||||||||
| 6． Others | |||||||||||
| (V) Special reserves | |||||||||||
| 1． Extraction in this period | |||||||||||
| 2． Used in this period | |||||||||||
| (VI) Others |
| IV. Balance at the end of the period | 4,811,165,857.00 | 3,139,115,394.96 | -5,152,886.23 | 2,864,448,848.11 | 14,485,473,138.37 | 25,295,050,352.21 |
III. Company Overview
1. Company profile
√Applicable □ Not applicable
Shandong Expressway Co., Ltd. (hereinafter referred to as "this company" or "the company",collectively referred to as "the group" while including its subsidiaries), formerly known as Shandonginfrastructure Co., Ltd., was approved by the State Economic and Trade Commission of the People'sRepublic of China on November 16, 1999 with the document of State Economic and Trade EnterpriseReform [1999] No. 1073, and was founded with Shandong Expressway Co., Ltd. (now renamed asShandong Hi-speed Group Co., Ltd) (hereinafter referred to as "Shandong Expressway Group") andHuajian Traffic Economic Development Center of the Ministry of Communications (now renamed asChina Merchants Road Network Technology Holding Co., Ltd.) as initiators, among which ShandongExpressway Co., Ltd. and Huajian Traffic Economic Development Center of the Ministry ofCommunications held 2,097,050,000 shares and 761,750,000 shares respectively accounting for 73.35%and 26.65% of the total share capital respectively. The business license of enterprise legal person with theregistration number of 3700001804559 (now changed to the unified social credit Code91370000863134717k) has been obtained.In January 2002, the company issued 505 million ordinary shares to the public according to thedocument of China Securities Regulatory Commission (ZJFXZ [2002] No. 6), after which the total sharecapital of the company was changed to 336,3.8 million shares, and the share capital structure was changedto 209,705 million shares of Shandong Hi-speed Co., Ltd accounting for 62.34%; Huajian TrafficEconomic Development Center has 76,1.75 million shares accounting for 22.65%, and 505 million sharesof social public shares accounting for 15.01%.On May 23, 2006, according to the resolution of the first extraordinary general meeting ofshareholders of the company in 2006, the name of the company was changed to "Shandong ExpresswayCo., Ltd." with the industrial and commercial registration of change being completed.
On July 5, 2011, according to the Reply on Approving Shandong Expressway Co., Ltd. to IssueShares to Shandong Hi-speed Group Co., Ltd. to Purchase Assets (ZJXK [2011] No. 1007) and the Replyon Approving and Exempting the Obligation of Shandong Expressway Group Co., Ltd. to Acquire Sharesof Shandong Expressway Co., Ltd. (ZJXK [2011] No. 1008), the company issued 1,447,365,857 sharesto Shandong Hi-speed Group Co., Ltd.
On April 11, 2012, according to the resolution of the first extraordinary general meeting ofshareholders of the company in 2012, the company's name was changed to "Shandong Expressway Co.,Ltd." and the industrial and commercial change registration was completed.
As of June 30, 2020, the total share capital of the company is 4,811,165,857 shares, all of which aretradable shares with unlimited sales conditions. Registered capital of the company: 4,811,165,857 yuan.
Registered address: Block A, Qixing Jixiang Building, No. 29, Wenhua East Road, Jinan City.
Company headquarters address: No. 5006 Aoti Middle Road, Jinan, Shandong, P. R. C.
Name of legal representative: Sai Zhiyi.
The Group is mainly engaged in the investment, operation and management of toll roads, bridgesand tunnel infrastructure and related businesses. The group is also engaged in expressway service areaand supporting services, property management, real estate investment and development, tourismdevelopment and other businesses. The current business scope of the company mainly includes investment,management, maintenance, consulting services and approved charges with the high-grade highway,bridge and tunnel infrastructure, rescue and obstacle removal, and storage (excluding dangerouschemicals); decoration; sales of building materials; investment in port, highway and waterwaytransportation; highway information network management; automobile cleaning. (Business requiringgovernment approval according to law can only be carried out when such approval from relevantdepartment is obtained)
The group mainly operates and manages the following toll roads and bridges:
| Name of road section | Road Sections | Approved Expiry Date of Toll Collection | Toll Mileage (Kilometer) |
| Jinan-Qingdao Expressway | Jinan-Qingdao Expressway (Section in Shandong of Qingdao-Yinchuan Expressway) | December 16, 2044 | 318.50 |
| Relevant sections of Beijing-Taibei Expressway | Phase I of Dezhou-Qihe Section of Beijing-Fuzhou Expressway | November 17, 2022 | 89.03 |
| Phase II of Dezhou-Qihe Section of Beijing-Fuzhou Expressway | November 30, 2025 | 2.25 | |
| Jinan Yellow River Second Bridge | April 16, 2032 | 5.75 | |
| Qihe-Jinan Section of Beijing-Fuzhou Expressway | October 31, 2024 | 21.97 | |
| Jinan-Qingdao Connection Line of Beijing-Fuzhou Expressway | October 31, 2024 | 16.38 | |
| Jinan-Tai'an Section of Beijing-Fuzhou Expressway | October 31, 2024 | 59.55 | |
| Jinan-Laiwu Expressway | Jinan-Laiwu Expressway (side road) of Beijing-Shanghai Expressway | October 21, 2034 | 76.05 |
| Weifang-Laiyang Expressway | Weifang-Laiyang Expressway | July 31, 2024 | 140.64 |
| Weihai-Rushan Expressway | Weihai-Rushan Expressway | December 19, 2032 | 70.55 |
| Taiqu section of national highway G104 | Tai'an-Qufu First-class Highway of State Road G104 | November 15, 2025 | 64.17 |
| Lijin Yellow River Bridge | Lijin Yellow River Bridge | September 25, 2019 | 1.35 |
| Xuchang-Yuzhou Expressway | Xuchang-Yuzhou Expressway in Henan | November 14, 2037 | 39.07 |
| Jiyuan-Jincheng Expressway | Jiyuan-Jincheng (Provincial Border) Section of Erenhot-Guangzhou Expressway | September 9, 2038 | 20.56 |
| Hengyang-Shaoyang Expressway | Heyang-Shaoyang Expressway in Hunan | December 29, 2040 | 132.06 |
| Wuhan-Jingmen Expressway | Wuhan-Jingmen Expressway in Hubei | May 2040 | 183.21 |
It is considered that it is reasonable to prepare financial statements on the basis of continuous operation,and there is no significant event affecting the ability of continuous operation within 12 months from theend of the reporting period.
V. Significant Accounting Policies and Accounting EstimatesSpecific accounting policies and accounting estimate prompt:
√Applicable □ Not applicable
Specific accounting policies and accounting estimate prompt: The specific accounting policies andaccounting estimates formulated by the group in accordance with the relevant provisions of accountingstandards and the characteristics of actual production and operation include the recognition andmeasurement of bad debt reserves of receivables, the measurement of issued inventory, the classificationand depreciation method of fixed assets, the amortization of intangible assets, the recognition andmeasurement of revenue (including the recognition and measurement method of inventory, revenue andother items of special business such as BOT/BT/construction contract business).
1. Follow the statement on Accounting Standards for Business Enterprises
The financial statements prepared by the company meet the requirements of the accounting standardsfor business enterprises, and truly and completely reflect the company's financial situation, operatingachievements, changes in shareholders' equity, cash flow and other relevant information.
2. Accounting period
The fiscal year of the company is from January 1 to December 31.
3. Business cycle
√Applicable □ Not applicable
The business cycle of the Group is one year (12 months).
4. Recording currency
The recording currency of the company is CNY.
5. Accounting method of enterprise merger under common control and not under common
control
√Applicable □ Not applicable
The assets and liabilities obtained by the Group, as the Combining Party, in the business mergerunder the same control, are measured at book value in consolidated statement of Final Controlling Partyof the Combined Party on merger date. The capital reserve shall be adjusted for the balance between theacquired book value of net assets and the paid book value of the combined consideration, while theretained earnings shall be adjusted if the capital reserve is insufficient to be offset.
Identifiable assets, liabilities and contingent liabilities of the acquiree obtained from the businessmerger under different control shall be measured at fair value on the acquisition date. The merging costis the sum of the fair value of cash or non-cash assets paid by the Group on the acquisition date forobtaining the control right of the acquiree, liabilities issued or assumed, and equity securities issued, anddirect related expenses arising from the business merger (for business merger that is achieved step by stepthrough multiple transactions, the merging cost is the sum of cost of each individual transaction). Thedifference between the merger cost and the fair value of the identifiable net assets of the acquired partyobtained in the merger shall be recognized as goodwill; if the merger cost is less than the fair value of theidentifiable net assets of the acquired party obtained in the merger, the fair value of the identifiable assets,liabilities and contingent liabilities obtained in the merger as well as the non cash assets of the mergerconsideration or the issued equity shall be rechecked at first. After rechecking, if the merger cost is stillless than the fair value share of the identifiable net assets of the acquired party obtained in the merger, thedifference shall be included in the non-operating income of the current period of the merger.
6. Method of preparing consolidated financial statements
√Applicable □ Not applicable
The Group incorporates all controlled subsidiaries and structured entities into the consolidatedfinancial statements.
In the preparation of consolidated financial statements, if the accounting policies or accounting
periods adopted by subsidiaries and the Company are inconsistent, necessary adjustments shall be madeto the financial statements of subsidiaries in accordance with the Company's accounting policies oraccounting periods.
All significant internal transactions, current balances and unrealized profits within the scope of themerger are offset at the time of preparation of the consolidated statements. The shares among the owner'srights and interests of a subsidiary that do not belong to the parent company, and the shares of minoritystockholder's interest in current net profit and loss, other comprehensive income and total comprehensiveincome are listed in the item of "minority stockholder's interest, minority interest income, othercomprehensive incomes attributable to minority shareholders and total comprehensive incomesattributable to minority shareholders" in the consolidated financial statement.
The business performance and cash flow of the subsidiary obtained from the business merger underthe same control are included into the consolidated financial statement since the beginning of currentperiod of the merger. When compiling the comparative consolidated financial statements, the adjustmenton relevant items of the previous year's financial statements is deemed as that the report subject formedafter the merger has existed since the Final Controlling Party started to control.
The equity of the invested entity under the same control is acquired step by step through multipletransactions to form the business combination at last. While preparing the consolidated statement, it isdeemed that the final controller carries out the adjustment according to the current status when the controlbegins. While preparing the comparative statement, the related assets and liabilities of the merged partyare merged into the comparative statements of the consolidated financial statements of the group with thetime limit no earlier than the time when the group and the merged party are under the control of the finalcontroller, and the relevant items under owners' equity will be adjusted in the comparative statement forthe increased net assets due to merger. In order to avoid repeated calculation of the value of the mergedparty's net assets, about the long-term equity investment held by the group before the date of merger, therelated profit and loss, other comprehensive income and other changes in net assets shall be offset againstthe retained earnings at the beginning of the period and current profit and loss on the date when theoriginal equity is acquired and the date when the group and the merged party are under the final controlof the same party, which comes later to the date of merger.
The business performance and cash flow of the subsidiary obtained from the business merger underdifferent control are included into the consolidated financial statement from the day when the Groupgained the control right. In preparing consolidated financial statements, the financial statements of thesubsidiary are adjusted on the basis of the fair value of the identifiable assets, liabilities and contingentliabilities determined on the acquisition date.
The equity of the invested company not under the same control is acquired step by step throughmultiple transactions to form business merger. While preparing the consolidated statement, the equityheld by the acquired party before the purchase date shall be remeasured according to the fair value of theequity on the purchase date, and the difference between the fair value and its book value shall be includedin the current investment income; If the equity held by the acquired party before the relevant purchasedate involves other comprehensive income under the equity method accounting and other changes in theowner's equity except for net profit and loss, other comprehensive income and profit distribution, the sameshall be converted into investment profit and loss in the current period on the purchase date. Othercomprehensive income generated from the changes in net liabilities or net assets of the defined benefitplan measured by the invested entity shall be excluded.
The Group will partially dispose of long-term equity investments in its subsidiaries without losingcontrol. In consolidated financial statements, the capital premium or capital stock premium will beadjusted according to the balance between disposal price and net asset share of subsidiaries calculatedcontinuously since the purchase date or merger date corresponding to the long-term equity investments.If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
If the Group loses its control right to the investee due to the disposal of part of the equity investment,the remaining equity shall be re-measured according to its fair value on the date of loss of control rightwhen compiling the consolidated financial statement. The balance that the sum of the considerationobtained from the disposal of equity and the fair value of the remaining equity minus the shares of netassets calculated continuously from the purchase date or merger date of the original subsidiary accordingto the original shareholding ratio, shall be included into the investment profit and loss of the current periodof losing the control right, and at the same time the goodwill will be written down. Other comprehensiveincomes related to the equity investment of the original subsidiary are converted into current investment
gains and losses when the control right is lost.If the group disposes the equity investment of subsidiaries step by step through multiple transactionsuntil losing the control and if the transactions of disposing the equity investment of subsidiaries untillosing the control belong to the package deal, all transactions shall be treated as one transaction foraccounting purpose; however, before the loss of control, the difference between each disposal price andthe share of net assets of the subsidiary corresponding to the disposal investment shall be recognized asother comprehensive income in the consolidated financial statements, and shall be transferred into theinvestment profit and loss of the current period when the right of control is lost.
7. Classification of joint venture arrangements and accounting treatment method for joint
operation
√Applicable □ Not applicable
The joint arrangement of the group includes joint operation and joint venture. For the joint operatedproject, the group, as a joint party in the joint operation, shall recognize the assets and liabilities heldseparately, as well as the assets and liabilities confirmed by shares, and shall identify the relevant incomesand expenses separately or by shares in accordance with the relevant agreements. Where the purchase orsale of assets does not constitute business with the joint operation, only the profits and losses arising fromthe transaction belonging to the other participants in the joint operation shall be recognized.
8. Criteria for determining cash and cash equivalents
Cash equivalents refer to the short term investment with strong liquidity and which are easy to beconverted into cash of known amounts, and the investment with low risk of changes in value held bycompanies (usually refer to those which will become due within three months from the purchase date).
9. Foreign currency transaction and translation of foreign currency statement
□ Applicable √ Not applicable
10. Financial instruments
√Applicable □ Not applicable
The Group confirms a financial assets or financial liabilities when become one party of financialinstruments contract.
（1） Financial assets
1) Classification, confirmation basis and measuring method of financial assets
According to the business model of managing financial assets and the contractual cash flowcharacteristics of financial assets, the Group classifies financial assets into financial assets measured atamortized cost, financial assets measured at fair value with changes included in other comprehensiveincome and financial assets measured at fair value with changes included in current profit and loss.
The Group classifies financial assets that meet the following conditions into financial assetsmeasured at amortized cost: ① The business mode of managing the financial assets is with the objectiveto collect contract cash flow. ② The contractual terms of the financial asset stipulate that the cash flowgenerated on the specific date is only the payment of the principal and the interest based on the outstandingprincipal amount. Such financial assets are initially measured at the fair value, and relevant transactionexpenses are included in the initially recognized amount; subsequent measurement shall be made at theamortized cost. Except for the designated hedged item, the difference between the initial amount and thedue amount shall be amortized according to the actual interest method, and the amortization, impairment,exchange gains and losses, as well as the gains or losses arising from the derecognition shall be includedin the current profits and losses.
The Group classifies financial assets that meet the following conditions as financial assets measuredat fair value and whose changes are included in other comprehensive income: ① The business model ofmanaging the financial assets aims to receive contractual cash flow and sell the financial assets. ② Thecontractual terms of the financial asset stipulate that the cash flow generated on the specific date is onlythe payment of the principal and the interest based on the outstanding principal amount. Such financialassets are initially measured at the fair value, and relevant transaction expenses are included in the initiallyrecognized amount; Except for those designated as hedged items, such financial assets, except for creditimpairment loss or gain, exchange gain or loss and interest of such financial assets calculated accordingto the actual interest method, all other gains or losses generated shall be included in other comprehensive
income; when the financial assets are terminated with recognition, the accumulated gains or lossespreviously included in other comprehensive income shall be transferred from other comprehensiveincome into the current profit and loss.The Group recognizes interest income in accordance with the actual interest method. Interest incomeis calculated and determined by multiplying the book balance of financial assets by the actual interest rate,except for the following situations: ① For the financial assets purchased or generated with creditimpairment from the initial recognition, the interest income is calculated and determined according to theamortized cost of the financial assets and the actual interest rate adjusted by credit. ② For the financialassets purchased or generated from sources without credit impairment but become credit impairment inthe subsequent period, the interest income shall be calculated and determined according to the amortizedcost and actual interest rate of the financial assets in the subsequent period.The Group designates non-trading equity instrument investment as the financial asset measured atfair value with its changes included in other comprehensive income. Once the designation is made, it isnot allowed to be withdrawn. Non-trading equity instrument investment designated by the group andmeasured at fair value with its changes being included in other comprehensive income is initiallymeasured at fair value, and relevant transaction expenses are included in the initially recognized amount;other relevant gains and losses (including gains and losses due to exchange) are included in the currentprofit and loss except dividends (except for the recovered investment cost) are included in the othercomprehensive income and shall not be transferred into current profit and loss. When the recognition isterminated, the accumulated gains or losses previously included in other comprehensive income shall betransferred from other comprehensive income into retained earnings.Financial assets other than those classified as financial assets measured at amortized cost and thoseclassified as financial assets measured at fair value with changes included in other comprehensive income.The Group classifies it as the financial asset measured at fair value through profit or loss. Such financialassets are initially measured at the fair value, and relevant transaction expenses are included in the currentprofit and loss; The gains or losses of such financial assets shall be included in the current profit and loss.If the contingent consideration recognized by the group in the business combination not under thesame control constitutes the financial asset, the financial asset can be classified as the financial assetmeasured at fair value with its changes included in the current profit and loss.When the group changes the business model of managing financial assets, all affected relatedfinancial assets will be reclassified.
2) Recognition basis and measurement method for transfer of financial assets
The financial assets that meet any of the following conditions shall be terminated by this group forrecognition: ① The contract right to collect the cash flow of the financial assets is terminated; ② Thefinancial assets have been transferred, and almost all the risks and remunerations on the ownership of thefinancial assets are transferred by this group; ③ The financial assets have been transferred. The group hasneither transferred nor failed to retain almost all risks and remunerations on the ownership of financialassets, and has not retained the control over the financial assets.If the overall transfer of financial assets meets the conditions for derecognition, the differencebetween the book value of the transferred financial assets and the sum of the consideration received as aresult of the transfer and the amount corresponding to the terminated recognition part of the accumulativeamount of the changes in the fair value originally included in other comprehensive income (according tothe terms of the contract involving the transferred financial assets, the cash flow generated on the specificdate is only for the principal and interest due to the outstanding principal) shall be included in the currentprofit and loss.
If the partial transfer of financial assets meets the conditions for derecognition, the overall bookvalue of the transferred financial assets shall be apportioned according to their respective relative fairvalues between the derecognized part and the non-derecognized part, and difference between the sum ofthe consideration received as a result of the transfer and the accumulative amount of changes in fair valueoriginally included in other comprehensive income that shall be apportioned to the final recognized partand the total book value of the apportioned financial assets mentioned above (according to the contractterms involving the transferred financial assets, the cash flow generated on the specific date is only thepayment of the principal and the interest based on the outstanding principal)shall be included in the currentprofit and loss.
（2） Financial liability
1) Classification, recognition basis and measurement method of financial liabilities
Financial liabilities of the Group are classified into financial liabilities measured at fair value withchange included into current profits and losses in initial recognition period and other financial liabilities.Financial liabilities measured at fair value with change included into current profits and losses andother financial liabilities include trading financial liabilities and financial liabilities measured at fair valuewith change included into current profits and losses confirmed in initial recognition period. Subsequentmeasurement is implemented according to fair value and gains or losses formed by fair value and dividendand interest expenditure relevant to the financial liability will be included to current profit and loss.Subsequent measurement is implemented for other financial liabilities by actual rate methodaccording to amortized costs. Except for the following items, the Group classifies financial liabilities asfinancial liabilities measured at amortized cost: ① Financial liabilities measured at fair value withchanges included in current profit and loss, including transaction financial liabilities (includingderivatives belonging to financial liabilities) and financial liabilities designated to be measured at fairvalue with changes included in current profit and loss. ② Financial liabilities formed by transfer offinancial assets that do not meet the conditions for derecognition or continuous involvement in thetransferred financial assets. ③ Financial guarantee contracts that do not belong to the above ① or ②, andloan commitments that do not belong to the above ① and with rate lower than market interest rate.The financial liabilities formed by the contingent consideration recognized by the buyer in thebusiness combination not under the same control shall be disposed for accounting purpose according tothe fair value measurement and the change of which shall be included in the current profit and loss.
2) Termination recognition condition of financial liability
When current liabilities of financial liability are completely or partly discharged, part of the financialliability or obligation will be derecognized. The Group concludes agreement with the creditor to replacecurrent financial liability by new financial liability mode and where new financial liability is differentfrom contract clauses of current financial liability, current financial liability shall be de-recognized and atthe same time, new financial liability shall be recognized. If the group makes substantial modification toall or part of the contract terms of the existing financial liabilities, the recognition of the existing financialliabilities or part of them shall be terminated, and the financial liabilities after the modification of theterms shall be recognized as the new financial liability. Balance between book value of de-recognizedpart and paid consideration is included into current profit and loss.
（3） Recognition method of fair value of financial asset and financial liability
The Group measures the fair value of financial assets and financial liabilities at the price of the mainmarket. If there is no main market available, the Group measures the fair value of financial assets andfinancial liabilities at the price of the most favorable market and adopts the applicable valuationtechnology with enough data and other information support being available. The input value used in thefair value measurement is divided into three levels: the first level input value is the unadjusted offer ofthe same assets or liabilities in the active market that can be obtained on the measurement date; the secondlevel input value is the directly or indirectly observable input value of relevant assets or liabilities exceptthe first level input value; the third level input value is the unobservable input value of relevant assets orliabilities. The group gives priority to the first level of input value, and then uses the third level inputvalue. The level of fair value measurement results shall be determined by the lowest level of input valuewhich is of great significance to the whole fair value measurement.
The investment by the Group in equity instruments is measured at fair value. However, in limitedcircumstances, if the information in recent period used to determine the fair value is insufficient, or thepossible estimated amount of the fair value is widely distributed, and the cost represents the best estimateof the fair value within this range, the cost can represent the appropriate estimate of the fair value withinthe range.
（4） Offset of financial asset and financial liability
Financial assets and financial liabilities of the Group are respectively listed in balance sheet, whichdo not offset mutually. However, in case the following conditions are satisfied simultaneously, the netamount upon mutual offset shall be listed in the balance sheet: (1) The Group has legal right to offsetrecognized amount, which is executable at present; (2) The Group plans to settle at net amount or liquidatethe financial asset and pay off the financial liability at the same time.
（5） Differentiation of financial liability and equity tool and relevant treatment method
The Group shall distinguish the financial liabilities and equity instruments according to the followingprinciples: (1) A contractual obligation is defined as a financial liability if the Group cannotunconditionally avoid the delivery of cash or other financial assets. Although some financial instruments
do not explicitly contain terms and conditions for the obligation to deliver cash or other financial assets,it is possible that contractual obligations may be indirectly formed through other terms and conditions. (2)If a financial instrument shall or can be settled by equity tool of the Group, it shall be considered whetherequity tool of the Group for settlement of the tool is taken as cash or replacement of other financial assetsor is used to make holder of the tool enjoy rest equity in asset after the issuer deducts all liabilities. If it isthe former, the instrument shall be the issuer’s financial liability; if it is the latter, the instrument shall bethe issuer’s equity instrument. Under some conditions, a contract of financial instrument specifies that theGroup shall or can settle the financial instrument with its equity tool and amount of contract right orcontract obligation is equal to the quantity of equity tool that can be obtained or shall be deliveredmultiplied by fair value during settlement; therefore, the contract is classified into financial liabilitycontract no matter amount of the contract right or obligation is fixed or will change completely or partlywith variation of variable except for market price of equity tool of the Group (for example, rate, price ofcertain goods or price of certain financial instrument).When the Group classifies financial instrument in consolidated statement (or its components), allclauses and conditions reached among group members and financial instruments holders shall beconsidered. If the Group assumes the obligation to deliver cash, other financial assets or settle accountsin other ways that result in the instrument becoming a financial liability as whole due to the instrument,the instrument shall be classified as a financial liability.
Where financial instrument or its component belongs to financial liability, relevant interest, dividend(stock dividend), gains or loss, gain or loss of redemption or refinancing assets will be included intocurrent profits and losses.Where financial instrument or its component belongs to equity tool, the Group will treat it as equitychange and will not recognize fair value change of equity tool during its issuance (including refinancing),repurchase, selling or cancellation.
11. Notes receivable
The determination method and accounting disposal method of expected credit loss of notesreceivable
√Applicable □ Not applicable
For the determination method and accounting disposal method of expected credit loss of notesreceivable, refer to Note V, 12.
12. Accounts receivable
The determination method and accounting disposal method of expected credit loss of notesreceivable.
√Applicable □ Not applicable
No matter whether there is significant financing component or not, the Group always measures itsloss reserves in accordance with the amount equivalent to the expected credit loss in the whole durationfor the notes receivable and accounts receivable formed by transaction regulated by Accounting Standardsfor Business Enterprises No.14-Income Standards. When the single financial asset is unable to assess theexpected credit loss information at reasonable cost, the Group divides notes receivable into severalcombinations according to the credit risk characteristics and calculates the expected credit loss on thebasis of the combination.
The basis for determining the combination is as follows:
| Name of combination | Basis to determine the combinations |
| Related party combination | All related party customers |
| Third party combination | All third parties |
| Aging | Expected credit loss rate (%) |
| Within 1 year (including 1 year) | 5 |
| 1-2 years (including 2 years) | 10 |
| 2-3 years (including 3 years) | 30 |
| 3-4 years (including 4 years) | 50 |
| 4-5 years (including 5 years) | 80 |
| Over 5 years | 100 |
| Item | Basis to determine the combinations |
| Related party combination | All related party customers |
| Third party combination | All third parties |
| Aging | Expected credit loss rate (%) |
| Within 1 year (including 1 year) | 5 |
| 1-2 years (including 2 years) | 10 |
| 2-3 years (including 3 years) | 30 |
| 3-4 years (including 4 years) | 50 |
| 4-5 years (including 5 years) | 80 |
| Over 5 years | 100 |
15. Stock
√Applicable □ Not applicable
The inventory of the Group mainly includes real estate development costs, development productsand materials used to repair and maintain roads and bridges which shall be listed by the cost and netrealizable value (NRV) which is lower.In addition to the real estate development cost and development products, the inventory systemadopts the perpetual inventory system, and the inventory is valued according to the actual cost when it isobtained; except the real estate development cost and development products, the actual cost of otherinventory collection and delivery shall be determined by the weighted average method.Real estate development cost and development product cost include land cost, construction andinstallation cost, capitalized interest and other direct and indirect development costs related to real estatedevelopment; development cost is carried forward to development product according to actual cost aftercompletion; development product is accounted to actual cost while carrying forward the cost.
The public supporting facilities included in the construction and installation costs refer to the publicsupporting projects approved by the relevant government departments; the expenses occurred for roads,etc. is listed in the development costs and accounted in detail according to the cost accounting objects andcost items; the expenditures of the land for development are also included in the development cost.
The provision for inventory depreciation shall be calculated and withdrawn according to thedifference between the inventory cost and its net realizable value. The net realizable value will bedetermined by subtracting estimated costs to be incurred at completion, estimated selling expenses, andrelated taxes from estimated selling prices of inventories in daily activities.
Perpetual inventory system of the Group shall be applied except for real estate development costsand products development.
16. Contract assets
(1).
Methods and standards for the confirmation of contract assets
□ Applicable √ Not applicable
(2).
The determination method and accounting disposal method of expected credit loss ofcontract assets
□ Applicable √ Not applicable
17. Held-for-sale assets
□ Applicable √ Not applicable
18. Debt investment
The determination method and accounting disposal method of expected credit loss of debtinvestment.
√Applicable □ Not applicable
The Group measures the provision for loss of other receivables in accordance with the followingcircumstances: ① For financial assets with no significant increase in credit risk since initial recognition,the Group will measure the provision for loss in accordance with the amount of expected credit loss inthe next 12 months; ② For financial assets with significant increase in credit risk since initial recognition,the Group will measure the loss provision in accordance with the amount equivalent to the expected creditloss within the whole life of the financial instrument; ③ For the financial assets purchased or generatedwith credit impairment, the Group will measure the loss provision by the amount equivalent to theexpected credit loss within the whole duration.
19. Other investment on bonds
The determination method and accounting disposal method of expected credit loss of other debtinvestments.
√Applicable □ Not applicable
The Group measures the provision for loss of other debt investments according to the followingcircumstances: ① For financial assets with no significant increase in credit risk since initial recognition,the Group will measure the provision for loss in accordance with the amount of expected credit loss inthe next 12 months; ② For financial assets with significant increase in credit risk since initial recognition,the Group will measure the loss provision in accordance with the amount equivalent to the expected creditloss within the whole life of the financial instrument; ③ For the financial assets purchased or generatedwith credit impairment, the Group will measure the loss provision by the amount equivalent to theexpected credit loss within the whole duration.
The Group adjusts other comprehensive income while recording impairment loss or gain into currentprofit and loss.
20. Long-term receivables
Determination method and accounting disposal method of expected credit loss of long-termreceivables.
□ Applicable √ Not applicable
21. Long term equity investment
√Applicable □ Not applicable
The long-term equity investment of the Group mainly refers to the investment in subsidiaries andassociated enterprises.
When the Group directly or indirectly owns more than 20% (including) but less than 50% of thevoting rights of the invested entity through subsidiaries, it is generally considered to have a significantimpact on the invested entity. In case of holding less than 20% of the voting rights of the invested entity,it is also necessary to comprehensively consider the facts and situations such as sending representativesto the board of directors or similar authorities of the invested entity, or participating in the financial andoperational policy-making process of the invested entity, or carrying out important transactions with theinvested entity, or sending management personnel to the invested entity, or providing key technicalinformation to the invested entity have a significant impact on the invested entity.
The subsidiaries of the Group has the right of control on the invested entity. For long-term equityinvestment acquired by business combination under the same control, the share of book value of the netassets of the combined party in the ultimate consolidated financial statements of the controller on the dateof merger shall be taken as the initial investment cost of the long-term equity investment. If the bookvalue of the net assets of combined party on the date of merger is negative, the cost of long-term equityinvestment shall be determined as zero.
If the company obtains the equity of the invested entity under the same control step by step throughmultiple transactions, and finally forms the business combination, it shall supplement and disclose thedisposal method of long-term equity investment in the financial statement of the parent company duringthe reporting period when the right of control is obtained. E.g.: If the equity of the invested entity underthe same control is acquired step by step through multiple transactions, and the business combination isfinally formed, which belongs to the package deal, the Group will take all transactions as one transactionobtaining the control right for accounting purpose. If it is not a package deal, the share of the book valueof the merged party's net assets in the consolidated financial statements of final controlling party after themerger shall be taken as the initial investment cost of the long-term equity investment on the merger date.The difference between the initial investment cost and the sum of the book value of the long-term equityinvestment before the merger plus the book value of the newly paid consideration on the merger date shallbe adjusted for capital reserve. If the capital reserve is insufficient for offset, the retained earnings shallbe offset.
For the long-term equity investment obtained through business combination not under the samecontrol, the combination cost shall be taken as the initial investment cost.
If the company obtains the equity of the invested entity not under the same control step by stepthrough multiple transactions, and finally forms the business combination, it shall supplement anddisclose the disposal method of long-term equity investment in the financial statement of the parentcompany during the reporting period when the right of control is obtained. E.g.: If the equity of theinvested entity not under the same control is acquired step by step through multiple transactions, and thebusiness combination is finally formed, which belongs to the package deal, the Group will take all
transactions as one transaction obtaining the control right for accounting purpose. If it does not belong tothe package transaction, the sum of the book value of the original equity investment plus the newlyincreased investment cost shall be taken as the initial investment cost calculated according to the costmethod. If the equity held before the date of purchase is accounted by the equity method, the other relevantcomprehensive income accounted by the original equity method will not be adjusted temporarily. Whendisposing such investment, the accounting disposal shall be conducted on the same basis as the directdisposal of relevant assets or liabilities by the invested entity. If the equity held before the date of purchaseis accounted at fair value in accordance with the Accounting Standards for Business Enterprises No. 22-Recognition and Measurement of Financial Instruments, the accumulated changes in fair value originallyincluded in other comprehensive income shall be transferred into retained earnings on the date of merger.
In addition to the above-mentioned long-term equity investment obtained through businesscombination, the long-term equity investment obtained by cash shall be regarded as the investment costaccording to the actually paid purchase price; the long-term equity investment obtained by issuing equitysecurities shall be regarded as the investment cost according to the fair value of issued equity securities;the value stipulated in the investment contract or agreed value in the agreement shall be taken as theinvestment cost for long-term equity investment by the investor.
The investment of the Group in subsidiaries is accounted by the cost method, and the investment inassociated enterprises is accounted by the equity method.
For the long-term equity investment calculated by the cost method in subsequent measurement, thebook value of the cost of long-term equity investment shall be increased according to the fair value of thecost paid for the additional investment and the relevant transaction expenses incurred while increasingthe investment. The cash dividends or profits declared to be distributed by the invested entity shall berecognized as the current investment income according to the entitled amount.
For the long-term equity investment accounted by equity method in subsequent measurement, thebook value of the long-term equity investment will be increased or decreased accordingly with the changeof the owner's equity of the invested entity. While confirming the share of the net profit and loss of theinvested entity, the net profit of the invested entity shall be adjusted on the basis of the fair value of allidentifiable assets at the time of acquiring the investment. According to the accounting policies andaccounting period of the Group, offset the part of the profit and loss arising out of internal transactionwith associated enterprise and that belongs to the investing enterprise and is calculated according to theshareholding ratio. Recognition shall be made after adjusting the net profit fo the invested entity.
When disposing of long-term equity investment, include the difference between its book value andthe actual price obtained into the current return on investment. If the long-term equity investmentaccounted by the equity method is included in the owner's equity due to other changes in the owner'sequity of the invested entity except for the net profit and loss, the part originally included in the owner'sequity shall be transferred into the current investment profit and loss according to the correspondingproportion while accounting this investment.
If the significant impact on the invested entity is lost due to the disposal of part of the equityinvestment, the remaining equity after disposal shall be accounted according to the Accounting Standardsfor Business Enterprises No. 22-Recognition and Measurement of Financial Instruments, and thedifference between the fair value and book value of the remaining equity on the date of losing thesignificant impact shall be included in the current profit and loss. Other comprehensive income of theformer equity investment recognized by the equity method shall be treated on the same basis as relatedassets or liabilities directly disposed by the investee when the equity method is terminated.
If the control over the invested entity is lost due to the disposal of part of the long-term equityinvestment and the remaining equity after disposal can exercise joint control or exert significant influenceon the invested entity, it shall be accounted according to the equity method instead. The differencebetween the book value of the disposal equity and the disposal consideration shall be included in theinvestment income, and the remaining equity shall be deemed to be accounted and adjusted by the equitymethod since it is obtained; if the remaining equity after disposal cannot exercise joint control or exertsignificant influence on the invested entity, it shall be accounted in accordance with the AccountingStandards for Business Enterprises No. 22-Recognition and Measurement of Financial Instruments.Thedifference between the book value of the disposal equity and the disposal consideration shall be includedin the investment income.The difference between the fair value and the book value of the remaining equityon the date of losing control shall be included in the current investment profit and loss.
If the transactions with equity disposed by the Group step by step to the loss of control do not belong
to a package deal, each transaction shall be accounted separately. If it belongs to "package deal", alltransactions shall be accounted as one transaction for accounting purpose. However, before losing control,the difference between the disposal price of each transaction and the book value of the long-term equityinvestment corresponding to the disposed equity shall be recognized as other comprehensive income andshall be transferred into the current profit and loss at the time of losing control.
22. Investment real estate
(1).
Depreciation or amortization method with cost measurement modeThe investment properties of the company include buildings that have been leased. The cost modelis adopted for measurement.The investment real estate of the Group is depreciated or amortized by straight line method. Theestimated service life, net residual value and annual depreciation(amortization) rate of various investmentproperties are as follows:
| Category | Period of depreciation | Expected salvage value rate | Annual depreciation rate |
| Buildings | 20-40 | 3-5 | 2.40-4.85 |
| Category | Depreciation | Depreciation period | Ratio of remaining | Annual depreciation |
| method | (year) | value | rate | |
| Houses and Buildings | Average age methods | 3-40 | 3-5 | 0.95-32.3 |
| Mechanical equipment | Average age methods | 3-25 | 3-5 | 3.8-32.3 |
| Transport equipment | Average age methods | 3-15 | 3-5 | 6.3-32.3 |
| Electronic, electrical and communication equipment | Average age methods | 3-30 | 3-5 | 3.2-32.3 |
| Instruments and standard measuring apparatus | Average age methods | 3-10 | 3-5 | 9.5-32.3 |
| Other Equipment | Average age methods | 3-15 | 3-5 | 6.3-32.3 |
capitalization rate of the general occupied borrowings. The capitalization rate shall be determined perregular borrowings weighted average rate.
26. Biological assets
□ Applicable √ Not applicable
27. Oil and gas assets
□ Applicable √ Not applicable
28. Right-of-use assets
□ Applicable √ Not applicable
29. Intangible assets
(1).
Valuation method, service life and impairment test.
√Applicable □ Not applicable
The intangible assets of the Group include the franchise rights ("toll road operation rights") obtainedby BOT to participate in toll road construction business, land use rights, mining rights, exploration rights,purchased office software and parking space use rights not under toll road franchise and shall be measuredaccording to the actual cost at the time of acquisition. Where the purchased intangible assets shall takethe actual cost and other relevant expenses as the actual cost; as for the intangible assets invested byinvestors, the actual cost shall be determined according to the value agreed in the investment contract oragreement, but if the value agreed in the contract or agreement is not fair, the actual cost shall bedetermined according to the fair value; as for the intangible assets invested by the state-ownedshareholders during the reconstruction of the company, the evaluation value confirmed by the state-ownedasset management department shall be applied as the entry value.
Toll road franchise refers to the franchise rights granted by the government to the Group toparticipate in toll road construction by means of BOT and the Group shall be responsible for providingsubsequent operation services and charging the public for a certain period after the completion ofconstruction. At the expiration of the franchise rights, the initial construction cost of the roads andstructures to be returned to the government and the related land use rights by the Japanese group shall beaccounted as the acquisition cost of the toll road franchise rights; at the expiration of the franchise rights,the safety facilities, communication equipment and charging facilities that need not be returned to thegovernment shall be accounted as fixed assets.
Before July 1, 2015, the amortization of toll road franchise is amortized by straight-line method.Since July 1, 2015, the toll road franchise is amortized by traffic flow method instead of the originalstraight-line method, that is, the annual amortization amount is calculated according to the proportion ofthe actual traffic flow in a specific year and the estimated total traffic flow in the remaining toll period.
In addition to toll road franchise rights, the classification, estimated service life and amortizationmethod of other intangible assets of the group are as follows:
| S.N. | Category of assets | Expected service life (year) | Amortization method | Note |
| 1 | Land use rights | 18-40 | Straight-line method | |
| 2 | Office software | 5 | Straight-line method | |
| 3 | Right to use parking space | 10-30 | Straight-line method |
30. Long-term asset impairment
√Applicable □ Not applicable
On each balance sheet date, the Group checks long-term equity investment, investment real estatemeasured by cost mode, fixed assets, construction in progress and intangible assets with limited servicelife. When there is any sign of impairment, the Group will conduct impairment test.
For intangible assets with uncertain goodwill and service life, impairment tests shall be conducted atthe end of each year, regardless of whether there are signs of impairment. If the result of impairment testindicates that the recoverable amount of assets is less than its book value, the impairment reserves areaccrued at the difference and included in the impairment losses.
The recoverable amount is the higher one between the net amount after the fair value of the assetminus the disposal expense and the current value of expected future cash flow of the asset. Assetimpairment reserves shall be calculated and determined on the basis of single asset. If the recoverablevalue of single asset is difficult to estimate, the recoverable amount shall be determined by the asset groupof the asset. Asset group is the minimum asset group able to create the cash flow separately.
For the business goodwill individually listed in the financial statements, whether there is theimpairment sign, the impairment test shall be conducted at least every year. In the impairment test, thebook value of the business goodwill is allocated to the asset group or asset group portfolio that is expectedto benefit from the synergistic effect of the business combination. Where the test results show that therecoverable amount containing the asset group or the combination of asset groups of amortized goodwillis lower than its book value, the corresponding impairment losses shall be recognized. The amount ofimpairment losses is obtained by deducting the book value of goodwill amortized to its asset group orcombination of asset groups first, and then deducting the book values of other assets according to theirproportion in the asset group or combination of asset groups other than the goodwill.
Once the above-mentioned asset impairment losses are recognized, they shall not be returned in thefuture accounting period.
31. Long-term deferred expenses
√Applicable □ Not applicable
The long-term unamortized expenses of the Group refer to the expenses that have been paid but havea benefit period of more than one year (excluding one year), which are priced at the actual cost andamortized averagely by the straight-line method within the benefit period. If the long-term unamortizedexpense item cannot benefit the future accounting period, the amortized value of the item that has notbeen amortized shall be transferred to the current profit and loss.
32. Contract liabilities
Recognition method of contractual liabilities
□ Applicable √ Not applicable
33. Employee compensation
(1)
Accounting treatment methods for short-term compensation
√Applicable □ Not applicable
The employee remuneration of the Group includes short-term remuneration, post employmentwelfare, dismissal welfare and other long-term welfare.
Short term salary mainly includes employee salary, bonus, allowance and subsidy, employee welfare,medical insurance, work-related injury insurance, maternity insurance, housing accumulation fund, laborunion funds, employee education funds, short-term paid absence, etc. during the accounting period whenemployees provide services, the actual short-term salary is recognized as the liability and is included inthe current profit and loss or equivalent according to the benefit object.
(2)
Accounting treatment methods for post-employment benefits
√Applicable □ Not applicable
Employment benefits after resignation mainly include basic endowment insurance premiums, etc.and can be classified into defined contribution plans and defined benefit plans according to the risks andobligations undertaken by the company. As for the defined contribution plan, the contribution paid to the
separate entity in exchange for the services provided by employees during the accounting period on thebalance sheet date is recognized as the liability and shall be included in the current profit and loss orrelated asset costs according to the benefit object.
(3)
Accounting treatment methods for termination benefits
√Applicable □ Not applicable
The dismissal welfare provided to the employees shall be recognized as the employee compensationliability arising from the dismissal welfare at the earlier date of the following and shall be included in thecurrent profit and loss: (1) When the company cannot unilaterally withdraw the dismissal welfareprovided due to the termination of labor relationship plan or reduction proposal; (2) When the companyconfirms the costs or expenses related to the reorganization involving the payment of the dismissal welfare.
(4)
Accounting method of other long-term employee welfare
√Applicable □ Not applicable
For other long-term benefits provided to employees that meet the conditions of defined contributionplan, accounting disposal shall be carried out in accordance with the relevant provisions of definedcontribution plan; for other long-term benefits, accounting disposal shall be carried out in accordancewith the relevant provisions of defined benefit plan. At the end of the reporting period, the company shallrecognize the employee compensation cost generated by other long-term employee benefits as follows:
（1） Service costs;
（2） Net interest of net liabilities or net assets of other long-term employee benefits;
（3） Re-measure the changes in net liabilities or net assets of other long-term employee
benefits.
In order to simplify the relevant accounting disposal, the total net amount of the above items shallbe included in the current profits and losses or relevant asset costs.
34. Lease liabilities
□ Applicable √ Not applicable
35. Estimated liabilities
√Applicable □ Not applicable
When the business related to contingencies such as external guarantees, commercial acceptance billdiscounts, pending litigation or arbitration meets all of the following conditions, the Group recognizesthem as liabilities: This obligation is the current obligation assumed by the Group; the performance ofthis obligation is likely to cause economic loss to the Group; the amount related to this obligation can bereliably measured.
36. Share-based payment
□ Applicable √ Not applicable
37. Preferred shares, perpetual bonds and other financial instruments
√Applicable □ Not applicable
Preferred shares and perpetual bonds classified as debt instruments shall be initially measured attheir fair value after deducting transaction costs, and subsequently measured at amortized cost by theactual interest method. Their interest expense or dividend distribution shall be treated as borrowing costs,and the gains or losses arising from their repurchase or redemption shall be included in the current profitsand losses.
For the preferred shares and perpetual bonds classified as equity instruments, the owner's equity willbe increased after the consideration received at the time of issuance deducting the transaction cost, theinterest expense or dividend distribution will be treated as profit distribution, and the repurchase orcancellation will be treated as equity change.
38. Income
(1).
Accounting policy for income recognition and measurement
√Applicable □ Not applicable
The operating revenue of the Group mainly includes vehicle toll revenue, sales revenue ofdevelopment products, sales revenue of other goods except development products, and revenue fromproviding services. The revenue recognition policies are as follows:
（1） Recognition principle of vehicle toll revenue
Toll revenue of roads and bridges shall be recognized according to the amount collected andreceivable when vehicles are passing.
（2） Revenue recognition principle of sales and development products
The real estate sales shall be recognized as sales revenue when the developed products have beencompleted and accepted, the sales contract has been signed, the buyer's payment certificate has beenobtained and the products have been delivered for use.
（3） Sales of products other than developed products
Sales revenue is recognized when the main risks and rewards of commodity ownership have beentransferred to the buyer and the commodity are no longer under continuous management and control, theeconomic benefits related to the transaction can flow into the Group, and the relevant revenue and costcan be reliably measured.
（4） Revenue from rendering of service
For the labor services provided such as consulting management, the revenue and expenses of theservice contract shall be recognized on the balance sheet date according to the percentage of completionmethod. The completion schedule is determined by the proportion of the completed contract workload tothe total estimated contract workload. If the result of one single labor contract cannot be estimated reliably,it shall be handled according to the following circumstances:
If the contract cost can be recovered, the contract sales revenue shall be recognized according to theactual contract cost that can be recovered, and the contract cost shall be recognized as expenses in theyear when it occurs;
If it is impossible to recover the contract cost, it shall be recognized as the expense of the currentyear immediately when it occurs, and the contract sales revenue shall not be recognized.
(2).
Differences in revenue recognition accounting policies caused by different operationmodels of similar businesses
□ Applicable √ Not applicable
39. Contract cost
□ Applicable √ Not applicable
40. Government subsidy
√Applicable □ Not applicable
The government subsidies of the Group are monetary assets or non monetary assets obtained fromthe government at free cost including tax refund, financial subsidies, etc. Among them, governmentsubsidies related to assets refer to the government subsidies obtained by the Group for the purchase andconstruction or the formation of long-term assets in other ways; government subsidies related to incomerefer to government subsidies other than those related to assets. In case no subsidy object is clearlyspecified in the government document, the Group will make a judgment as per the above-mentionedprinciple of distinction. If the types of subsidies are hard to be distinguished, all subsidies shall beclassified as subsidies related to income.
If the government subsidies are monetary assets, they shall be measured according to the amountactually received; if the government subsidies are allocated according to a fixed quota standard, or if thereis conclusive evidence at the end of the year that the relevant conditions stipulated in the financial supportpolicy are complied and it is expected to receive financial support funds, they shall be measured accordingto the amount of receivables; where government subsidies are non-monetary assets, they shall bemeasured at fair value; if the fair value cannot be obtained reliably, it shall be measured according to thenominal amount (1 yuan).
The government subsidies related to assets are recognized as deferred income, and the governmentsubsidies related to assets are recognized as deferred income. Within the service life of relevant assets,they are included in the current profits and losses in phases according to the reasonable and systematicmethod.
Where the relevant assets are sold, transferred, scrapped or damaged before the end of their usefullives, the balance of undistributed relevant deferred incomes shall be transferred to the current profits or
losses of the asset disposal.
Government subsidies related to income, which are used to compensate for related costs or losses insubsequent periods, shall be recognized as deferred income and included in current profits and lossesduring the period when relevant cost or loss are recognized. Government subsidies related to dailyactivities shall be included in other incomes according to the essence of economic business. Governmentsubsidies irrelevant to daily activities shall be incorporated into non-operating income and expense.
In terms of interest subsidies for policy-related preferential loan the Group obtains, there are twosituations where the fiscal department appropriates interest subsidies to the lending bank or directly to theGroup, and accounting treatment shall be conducted as per the following principles:
(1) If the finance department allocates the discount fund to the lending bank, and the lending bankprovides the loan to the Group at the preferential policy interest rate, the Group shall take the actualreceived amount as the entry value of the loan and calculate the relevant borrowing cost according to theloan principal and the preferential policy interest rate.
(2) In case the fiscal department appropriates interest subsidies directly to the Group, the Group willoffset related borrowing costs with corresponding interest subsidies.
In case the Group is required to return the government subsidies that have been recognized, theGroup shall conduct accounting treatment based on actual situation within the current period in which thereturn is required as per the following provisions:
1) Where there is relevant deferred revenue, the book balance of the relevant deferred revenue shallbe offset, and the excess shall be included in the current profits and losses.
2) In other cases, it shall be directly recorded into the current profits and losses.
41. Deferred income tax assets/deferred income tax liabilities
√Applicable □ Not applicable
The Group calculates and recognizes its deferred income tax assets and deferred income tax liabilitiesbased on the difference (temporary differences) between the tax base of assets and liabilities and theirbook value. For the deductible losses that can be deducted from taxable income in the following yearsaccording to the taxation regulations, the corresponding deferred income tax assets shall be recognized.Temporary differences arising from initial recognition of the business goodwill are not recognized as thecorresponding deferred income tax liabilities. The corresponding deferred income tax assets and deferredincome tax liabilities shall not be recognized for the temporary differences caused by the initialrecognition of assets or liabilities generated in the non-business combination transactions that neitheraffect the accounting profit nor the taxable income (or deductible loss). On the balance sheet date, deferredincome tax assets and deferred income tax liabilities shall be accounted for at the anticipated tax rateapplicable to the recovery of the assets or the settlement of the liabilities.
The Group recognizes the deferred income tax assets to the extent that it is likely to obtain the futuretaxable income used to offset the deductible temporary differences, deductible losses and tax credits.
42. Lease
(1).
Accounting disposal method for lease operation
√Applicable □ Not applicable
The Group, as the lessee of the operating leasing, shall record the rent into related asset costs orcurrent profits and losses based on straight-line method during various phases within the lease term, andthe lesser shall recognize the rent as revenue based on straight-line method during various phases withinthe lease term.
(2).
Accounting treatment of financial lease
√Applicable □ Not applicable
When the group is the lessor of financial leasing, on the start date of the lease term, the sum of theminimum lease receipts and the initial direct cost on the lease start date shall be taken as the entry valueof the financial leasing receivables, and the unguaranteed residual value shall be recorded at the sametime; the difference from the sum of the minimum lease receipts, the initial direct costs and theunguaranteed residual value against the sum of their current values shall be recognized as unrealizedfinancing income; for the unrealized financing during the lease term, the asset income shall be calculatedand recognized according to the actual interest method; the contingent rent shall be included in the currentprofits and losses when it actually occurs.
When the group is the lessee of financial leasing, the lower of the fair value of the leased assets andthe current value of the minimum lease payment on the lease start date shall be taken as the entry valueof the fixed assets under financial leasing, the minimum lease payment shall be taken as the entry valueof the long-term payables, and the difference between the two shall be recorded as unrecognized financingexpenses.
(3).
Determination method and accounting disposal method of lease under the new leasestandard
□ Applicable √ Not applicable
43. Other important accounting policies and accounting estimates
□ Applicable √ Not applicable
44. Changes in important accounting policies and accounting estimates
(1). Changes in important accounting policies
√Applicable □ Not applicable
| Contents and reasons for the changes of accounting policies | Approval procedure | Remarks (name and amount of statement items that are significantly affected) |
| On July 5, 2017, Ministry of Finance issued Accounting Standards for Business Enterprises No. 17-Revenue | CK [2017] No. 22 | None |
| Tax categories | Tax basis | Tax rate |
| VAT | Toll revenue | 3% |
| VAT | Rental revenue, advertising revenue, etc. | 3%, 5%, 6%, 9%, 10%, 13%, 16% |
| Urban maintenance and construction tax | Turnover tax payable | 7%, 5% |
| Education surcharge | Turnover tax payable | 5%, 3% |
| Enterprise income tax | Taxable income | 15%, 20%, 25% |
| Name of taxpayer | Income tax rate (%) |
| Shandong Hi-speed Environmental Technology Co., Ltd. | 20 |
| Shandong High Speed Railway Construction Equipment Co., Ltd. | 15 |
| Item | Ending balance | Beginning balance |
| Cash in stock | 55,855.54 | 146,872.71 |
| Cash in bank | 2,748,559,983.80 | 2,325,694,786.83 |
| Other monetary funds | 23,243,780.84 | 20,220,272.25 |
| Total | 2,771,859,620.18 | 2,346,061,931.79 |
| Including: Total amount of deposited abroad |
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 183,877,623.78 | 230,882,312.59 |
| Commercial acceptance bill | 34,007,995.06 | 18,752,976.38 |
| Total | 217,885,618.84 | 249,635,288.97 |
| Item | Ending derecognition amount | Ending non-derecognition amount |
| Bank acceptance bill | 169,260,998.55 | |
| Commercial acceptance bill | 500,000.00 | |
| Total | 169,260,998.55 | 500,000.00 |
| Aging | Ending book balance |
| Sub-total within 1 year | 593,259,629.79 |
| 1-2 years | 17,952,352.35 |
| 2-3 years | 39,854,113.41 |
| 3-4 years | 879,749.00 |
| 4-5 years | |
| Over 5 years | 1,053,662.67 |
| Total | 652,999,507.22 |
(2).
Classified disclosure by bad debt accrual method
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Bad debt reserves | Book value | Book balance | Bad debt reserves | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion of accrual (%) | Amount | Proportion(%) | Amount | Proportion of accrual (%) | |||
| Accrual of bad debt reserves by single item | 808,724.17 | 0.12 | 808,724.17 | 100 | 808,724.17 | 0.35 | 808,724.17 | 100 | ||
| Including: | ||||||||||
| Accrual of bad debt reserves by single item with insignificant amount | 808,724.17 | 0.12 | 808,724.17 | 100 | 808,724.17 | 0.35 | 808,724.17 | 100 | ||
| Accrual of bad debt reserves by combination | 652,190,783.05 | 99.88 | 44,099,263.75 | 6.76 | 608,091,519.30 | 238,800,009.51 | 99.65 | 23,310,028.97 | 9.76 | 215,489,980.54 |
| Including: | ||||||||||
| Accounts receivable with bad debt reserves accrued according to the credit risk characteristics | 652,190,783.05 | 99.88 | 44,099,263.75 | 6.76 | 608,091,519.30 | 238,800,009.51 | 99.65 | 23,310,028.97 | 9.76 | 215,489,980.54 |
| combination | ||||||||||
| Total | 652,999,507.22 | / | 44,907,987.92 | / | 608,091,519.30 | 239,608,733.68 | / | 24,118,753.14 | / | 215,489,980.54 |
Accrual of bad debt reserves by single item:
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Name | Ending balance | |||
| Book balance | Bad debt reserves | Proportion of accrual (%) | Reasons for accrual | |
| Qinglin Railway Construction Headquarters | 808,724.17 | 808,724.17 | 100 | Estimate to be uncollectible |
| Total | 808,724.17 | 808,724.17 | 100 | / |
| Name | Ending balance | ||
| Accounts receivable | Bad debt reserves | Proportion of accrual (%) | |
| Within 1 year | 593,259,629.79 | 29,662,981.49 | 5 |
| 1-2 years | 17,952,352.35 | 1,795,235.24 | 10 |
| 2-3 years | 39,854,113.41 | 11,956,234.02 | 30 |
| 3-4 years | 879,749.00 | 439,874.50 | 50 |
| 4-5 years | |||
| Over 5 years | 244,938.50 | 244,938.50 | 100 |
| Total | 652,190,783.05 | 44,099,263.75 | |
If the bad debt reserve is accrued according to the general model of expected credit loss, please refer to the disclosure of other receivables:
□ Applicable √ Not applicable
(3).
Reserves for bad debts
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Category | Beginning balance | Current change amount | Ending balance | |||
| Accrual | Recovery or reversal | Resale or writing off | Other changes | |||
| Bad debt reserve of accounts receivable | 24,118,753.14 | 20,789,234.78 | 44,907,987.92 | |||
| Total | 24,118,753.14 | 20,789,234.78 | 44,907,987.92 | |||
□ Applicable √ Not applicable
6. Receivables financing
□ Applicable √ Not applicable
7. Prepayments
(1).
Prepayments presented by account receivable age
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within 1 year | 660,720,249.08 | 99.14 | 177,788,323.70 | 96.40 |
| 1-2 years | 4,745,082.66 | 0.71 | 5,650,872.70 | 3.06 |
| 2-3 years | 806,864.39 | 0.12 | 806,864.40 | 0.44 |
| Over 3 years | 180,964.75 | 0.03 | 180,964.70 | 0.10 |
| Total | 666,453,160.88 | 100.00 | 184,427,025.50 | 100.00 |
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividends receivable | 75,037,985.75 | 524,516,294.16 |
| Other receivables | 4,665,859,202.89 | 4,328,994,301.39 |
| Total | 4,740,897,188.64 | 4,853,510,595.55 |
| Project (or invested entity) | Ending balance | Beginning balance |
| Evergrande Real Estate Group Co., Ltd. | 524,516,294.16 | |
| Jinan Changying Transportation Infrastructure Investment Fund Partnership | 75,037,985.75 |
| Total | 75,037,985.75 | 524,516,294.16 |
| Aging | Ending book balance |
| Sub-total within 1 year | 3,462,756,387.59 |
| 1-2 years | 968,049,774.54 |
| 2-3 years | 5,667,573.50 |
| Over 3 years | 17,351,066.22 |
| 3-4 years | 5,780,650.28 |
| 4-5 years | 520,280,508.83 |
| Over 5 years | 4,979,885,960.96 |
| Total | 9,959,771,921.92 |
| Nature of receivables | Ending book balance | Beginning book balance |
| Intercourse funds | 4,168,009,033.19 | 4,071,566,769.61 |
| Toll split | 110,006,086.68 | 150,838,296.07 |
| Payment of Kenxin Project (Note 1) | 305,533,879.36 | 305,533,879.36 |
| Payment of Shanghai Zhida Technology (Group) Co., Ltd. (note 2) | 53,047,511.82 | 56,581,703.19 |
| Rural workers' wages, bid bonds, etc. | 24,030,971.02 | 184,080.59 |
| Trustee fee | 313,558,478.89 | |
| Land bidding and maturing deposit | 5,700,000.00 | 5,700,000.00 |
| Total | 4,979,885,960.96 | 4,590,404,728.82 |
| Bad debt reserves | Phase I | Phase II | Phase III | Total |
| Expected credit loss in the next 12 months | Expected credit loss over the life (no credit impairment) | Expected credit loss over the life (with credit impairment occurred) | ||
| January 1, 2020 Balance | 53,784,148.23 | 297,437.34 | 207,328,841.86 | 261,410,427.43 |
| January 1, 2020 Balance in the current period | ||||
| - into Phase II | ||||
| - into Phase III | ||||
| - back to Phase II | ||||
| - back to Phase I | ||||
| Accrual in current period | 52,616,330.64 | 52,616,330.64 | ||
| Amount reversed in current period | ||||
| Amount resold in current period | ||||
| Amount written off in current period | ||||
| Other changes | ||||
| June 30, 2020 Balance | 106,400,478.87 | 297,437.34 | 207,328,841.86 | 314,026,758.07 |
| Category | Beginning balance | Current change amount | Ending balance | |||
| Accrual | Recovery or reversal | Resale Writing off | Other changes | |||
| Bad debt reserves of other receivables | 261,410,427.43 | 52,616,330.64 | 314,026,758.07 | |||
| Total | 261,410,427.43 | 52,616,330.64 | 314,026,758.07 |
| Company name: | Nature of receivables | Ending balance | Aging | Proportion in total ending balance of other receivables (%) | Ending balance of bad debt reserves |
| Shandong Hi-Speed Xicheng Property Co., Ltd. | Intercourse funds | 2,726,756,822.17 | Within 1 year | 54.76 | |
| Jinan Puyuan Property Co., Ltd. | Intercourse funds | 563,750,126.73 | 1-2 years | 11.32 | |
| Shenzhen Litianjun Supply Chain Co., Ltd. | Receivables of Kenxin Project | 305,533,879.36 | Over 5 years | 6.14 | 201,295,159.36 |
| Shandong Hi-Speed Group Co., Ltd. | Railway trustee fee | 118,929,148.37 | Within 1 year | 2.39 | |
| Hubei Expressway Network Toll Center | Toll split | 73,181,493.76 | Within 1 year | 1.47 | |
| Total | / | 3,788,151,470.39 | / | 76.08 | 201,295,159.36 |
(10). Receivables related to government subsidies
□ Applicable √ Not applicable
(11). Other receivables derecognized due to transfer of financial assets
□ Applicable √ Not applicable
(12). Amount of assets and liabilities formed by transferring other receivables and continuing involvement
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
9. Inventory
(1) Inventory classification
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Falling price reserve of inventory/impairment reserves of contract performance cost | Book value | Book balance | Falling price reserve of inventory/impairment reserves of contract performance cost | Book value | |
| Raw materials | 57,198,209.86 | 301,882.10 | 56,896,327.76 | 44,836,017.05 | 301,882.10 | 44,534,134.95 |
| Finished goods | 81,608,724.67 | 403,403.60 | 81,205,321.07 | 114,810,969.01 | 403,403.60 | 114,407,565.41 |
| Engineering construction | 83,672,971.07 | 83,672,971.07 | 164,016,085.12 | 164,016,085.12 | ||
| Goods in process | 3,411,393.46 | 3,411,393.46 | ||||
| Goods in transit | 352,181.57 | 352,181.57 | 36,944,579.48 | 36,944,579.48 | ||
| Entrusted processing materials | 243,062.89 | 243,062.89 | ||||
| Development costs | 1,514,590,052.00 | 1,514,590,052.00 | 1,514,388,124.02 | 1,514,388,124.02 | ||
| Products development | 37,637,757.78 | 37,637,757.78 | 38,540,303.78 | 38,540,303.78 | ||
| Others | 2,568,156.54 | 2,568,156.54 | 1,841,565.30 | 1,841,565.30 | ||
| Total | 1,781,039,446.95 | 705,285.70 | 1,780,334,161.25 | 1,915,620,706.65 | 705,285.70 | 1,914,915,420.95 |
(2) Falling price reserve of inventory and impairment reserves of contract performance cost
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Beginning balance | Amount increased in the current period | Amount decreased in the current period | Ending balance | ||
| Accrual | Others | Reversal or resale | Others | |||
| Raw materials | 301,882.10 | 301,882.10 | ||||
| Finished goods | 403,403.60 | 403,403.60 | ||||
| Total | 705,285.70 | 705,285.70 | ||||
| Item | Ending balance | Beginning balance |
| Zhongteng global investment project (Note 1) | 88,000,000.00 | 88,000,000.00 |
| Project of Shanghai Weishi Investment Management Co., Ltd. (Note 2) | 115,940,300.00 |
| Loan project of Haiyi Liwei Investment Co., Ltd. (Note 3) | 32,000,000.00 | |
| Total | 235,940,300.00 | 88,000,000.00 |
| Item | Ending balance | Beginning balance |
| Prepaid income tax of the enterprise | 2,922,951.46 | 30,006,319.05 |
| Input tax to be deducted | 148,249,952.24 | 72,464,306.67 |
| Guangkai financial leasing debt investment project | 74,500,000.00 | 74,500,000.00 |
| Project of Qingdao Wudaokou New Energy Vehicle Industry Fund | 1,000,000,000.00 | |
| Others | 879,703.77 | |
| Total | 225,672,903.70 | 1,177,850,329.49 |
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Capital contribution by BOE Trust | 500,000,000.00 | 500,000,000.00 | 500,000,000.00 | 500,000,000.00 | ||
| Weifang Shangao new and old kinetic energy conversion fund project | 1,500,000,000.00 | 1,500,000,000.00 | 1,500,000,000.00 | 1,500,000,000.00 | ||
| Project of Shanghai | 223,507,600.00 | 223,507,600.00 | ||||
| Weishi Investment Management Co., Ltd. | ||||||
| Loan project of Haiyi Liwei Investment Co., Ltd. | 32,000,000.00 | 32,000,000.00 | ||||
| Jinan Changying Jinyu investment partnership (limited partnership) loan project | 33,000,000.00 | 33,000,000.00 | 33,000,000.00 | 33,000,000.00 | ||
| Total | 2,033,000,000.00 | 2,033,000,000.00 | 2,288,507,600.00 | 2,288,507,600.00 |
| Item | Ending balance | Beginning balance | ||||||
| Face value | Nominal interest rate | Actual interest rate | Expiry date | Face value | Nominal interest rate | Actual interest rate | Expiry date | |
| Capital contribution by BOE Trust | 500,000,000.00 | 8.50% | 8.50% | 2022-12-31 | 500,000,000.00 | 8.50% | 8.50% | 2022-12-31 |
| Weifang Shangao new and old kinetic energy conversion fund project | 1,500,000,000.00 | 15.00% | 15.00% | 2023-12-01 | 1,500,000,000.00 | 15.00% | 15.00% | 2023-12-01 |
| Project of Shanghai Weishi Investment Management Co., Ltd. | 223,507,600.00 | 10.00% | 10.00% | 2021-04-04 | ||||
| Loan project of Haiyi Liwei Investment Co., Ltd. | 32,000,000.00 | 10.00% | 10.00% | 2021-06-28 | ||||
| Jinan | 33,000,000.00 | 10.00 | 10.00 | 2022 | 33,000,000.00 | 10.00 | 10.00 | 2022 |
| Changying Jinyu investment partnership (limited partnership) loan project | % | % | -12-30 | % | % | -12-30 | ||
| Total | 2,033,000,000.00 | / | / | / | 2,288,507,600.00 | / | / | / |
17. Long-term equity investment
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Investee | Beginning balance | Increase or decrease in current period | Ending balance | Ending balance of impairment reserves | |||||||
| Additional investment | Decreased investment | Profits and losses on investment recognized by equity method | Adjustment of other comprehensive income | Other equity changes | Declaration and distribution of cash dividends or profits distribution | Accrual of impairment reserves | Others | ||||
| I. Joint venture | |||||||||||
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | 56,522,735.67 | 62,822.55 | 56,585,558.22 | ||||||||
| Subtotal | 56,522,735.67 | 62,822.55 | 56,585,558.22 | ||||||||
| II. Associated enterprises | |||||||||||
| Shandong Hi-Speed Yingli New Energy Co., Ltd. | 23,993,777.36 | -1,277,743.05 | 22,716,034.31 | ||||||||
| Shandong Hi-Speed Engineering Consulting Co., Ltd. | 61,883,479.57 | 6,465,396.96 | 68,348,876.53 | ||||||||
| Shandong High-Speed Logistics Group Co., Ltd. | 692,500,766.48 | 17,422,492.56 | 709,923,259.04 | ||||||||
| Shandong Environmental Protection Industry Co., Ltd. | 8,616,004.04 | -450,709.06 | 8,165,294.98 | ||||||||
| Dongxing Securities Company, Ltd. | 2,372,539,748.49 | 41,091,685.00 | 2,413,631,433.49 | ||||||||
| Weihai City Commercial Bank | 2,659,454,352.14 | 102,882,519.55 | 43,049,665.45 | 69,395,798.70 | 2,735,990,738.44 | ||||||
| Fujian Longma Environmental Sanitation Equipment Co., Ltd. | 414,739,204.41 | 5,000,000.00 | 4,134,026.52 | 415,605,177.89 | |||||||
| Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | 3,226,403.74 | -109,926.88 | 3,116,476.86 | ||||||||
| Jinan Puyuan Property Co., Ltd. | 1,273,014,455.42 | -1,919,643.52 | 1,271,094,811.90 | ||||||||
| Shenzhen zhongran Fund Management Co., Ltd. | 9,059,283.85 | 37,867.08 | 9,097,150.93 | ||||||||
| Shandong Hi-Speed Green Ecology Development Co., Ltd. | 18,773,771.68 | -559,569.50 | 18,214,202.18 | ||||||||
| Jinan Changying transportation infrastructure investment fund partnership (limited partnership) | 2,134,508,339.14 | 74,642,883.02 | 75,037,985.75 | 2,134,113,236.41 | |||||||
| Shandong Hi-Speed Jinan Investment Co., Ltd. | 641,471,800.00 | -12,021,236.74 | 629,450,563.26 | ||||||||
| Shandong Hi-Speed Zhongke Incubation Management Co., | 500,000.00 | -66,410.78 | 433,589.22 |
| Ltd. | ||||||||||||
| Jinan Changying Jintai Equity Investment Fund Partnership (limited partnership) | 56,700,000.00 | -14,170.64 | 56,685,829.36 | |||||||||
| Guiyang zhongyun copyright industry fund partnership (limited partnership) | 47,226,363.41 | 320,791.57 | 47,547,154.98 | |||||||||
| Shandong Saiwei Anxun Information Technology Co., Ltd. | 34,570,411.47 | -1,849,443.69 | 32,720,967.78 | |||||||||
| Jinan Changying Jinyu Investment Partnership (limited partnership) | 7,000,000.00 | 7,000,000.00 | ||||||||||
| Shanghai Jinghai Enterprise Management Center (limited partnership) | 240,350,000.00 | -3,417,721.05 | 236,932,278.95 | |||||||||
| Shandong Lingang Shugang Rail Transit Co., Ltd. | 120,000,000.00 | 280,000,000.00 | 400,000,000.00 | |||||||||
| Shandong High-Speed (Henan) Maintenance Technology Co., Ltd. | 16,530,000.00 | 16,530,000.00 | ||||||||||
| Subtotal | 10,820,128,161.20 | 296,530,000.00 | 226,177,060.83 | 43,049,665.45 | 148,567,810.97 | 11,237,317,076.51 | ||||||
| Total | 10,876,650,896.87 | 296,530,000.00 | 226,239,883.38 | 43,049,665.45 | 148,567,810.97 | 11,293,902,634.73 |
18. Other equity instrument investment
(1). Other equity instrument investment
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Shandong Hi-speed Culture Media Co., Ltd. | 17,614,686.36 | 17,614,686.36 |
| Shandong Hi-Speed Greentown Laiwu Xueye Lake Development Co., Ltd. | 5,182,926.83 | |
| Shandong Hi-Speed New Material Technology Co., Ltd. | 16,000,000.00 | |
| Shandong Railway Construction Investment Co., Ltd. | 300,000,000.00 | 300,000,000.00 |
| Shandong Weilai High Speed Railway Co., Ltd. | 31,626,837.00 | 31,626,837.00 |
| Total | 365,241,523.36 | 354,424,450.19 |
| Item | Ending balance | Beginning balance |
| Equity investment by Evergrande Real Estate Group Co., Ltd. | 5,000,000,000.00 | 5,000,000,000.00 |
| Yike Tower Investment Project | 563,893,198.11 | 563,893,198.11 |
| Specific Assets Support Plan for South Cement Company Limited | 35,709,250.00 | 35,709,250.00 |
| Specific Assets Support Program of BOCOM Schroders | 38,563,162.01 | 68,331,941.10 |
| CSCEC Shared No. 35 Fund Program | 150,000,000.00 | |
| MCC CCB No.1 Privately Offered Fund Program | 185,980,000.00 | |
| Total | 5,974,145,610.12 | 5,667,934,389.21 |
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | 843,934,668.41 | 843,934,668.41 |
| 2. Amount increased in the current period | 1,319,118.35 | 1,319,118.35 |
| (1) Outsourcing | ||
| (2) Inventory\fixed assets\construction in progress | 1,319,118.35 | 1,319,118.35 |
| (3) Business combination increased | ||
| 3. Amount decreased in the current period | ||
| (1) Disposal | ||
| (2) Other transfers | ||
| 4. Ending balance | 845,253,786.76 | 845,253,786.76 |
| II. Total accumulated depreciation and accumulated amortization | ||
| 1. Beginning balance | 113,823,635.28 | 113,823,635.28 |
| 2. Amount increased in the current period | 15,706,676.30 | 15,706,676.30 |
| (1) Accrual or amortization | 15,706,676.30 | 15,706,676.30 |
| 3. Amount decreased in the current period | ||
| (1) Disposal | ||
| (2) Other transfers | ||
| 4. Ending balance | 129,530,311.58 | 129,530,311.58 |
| III. Impairment reserves | ||
| 1. Beginning balance | ||
| 2. Amount increased in the current period | ||
| (1) Accrual | ||
| 3. Amount decreased in the current period | ||
| (1) Disposal | ||
| (2) Other transfers | ||
| 4. Ending balance | ||
| IV. Book value | ||
| 1. Ending book value | 715,723,475.18 | 715,723,475.18 |
| 2. Beginning book value | 730,111,033.13 | 730,111,033.13 |
| Item | Book value | Reason for not being granted property right certificates |
| Buildings | 25,600,896.86 | In progress |
| Item | Ending balance | Beginning balance |
| Fixed assets | 8,908,815,037.06 | 9,623,823,618.56 |
| Disposal of fixed assets | ||
| Total | 8,908,815,037.06 | 9,623,823,618.56 |
Fixed assets
(1). Fixed assets
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Road property | Houses and Buildings | Mechanical equipment | Transport equipment | Electronic, electrical and communication equipment | Instruments and standard measuring apparatus | Other Equipment | Total |
| I. Original book value: | ||||||||
| 1. Beginning balance | 12,358,764,810.81 | 3,538,486,016.77 | 327,998,603.62 | 522,856,199.85 | 1,491,738,689.75 | 24,212,814.99 | 79,184,563.35 | 18,343,241,699.14 |
| 2. Amount increased in the current period | 1,046,742.61 | 1,618,396.12 | 4,140,455.63 | 1,981,002.76 | 60,956.11 | 2,200,819.26 | 11,048,372.49 | |
| 1) Purchase | 1,046,742.61 | 1,618,396.12 | 4,140,455.63 | 1,981,002.76 | 60,956.11 | 2,200,819.26 | 11,048,372.49 | |
| 2) Construction in progress transferred | ||||||||
| 3) Business combination increased | ||||||||
| 3. Amount decreased in the current period | 219,871,044.88 | 64,422,168.37 | 78,688,544.70 | 2,353,662.94 | 2,591,929.92 | 550,104.61 | 1,234,264.23 | 369,711,719.65 |
| 1) Disposal or scrap | 211,343,167.72 | 4,760.00 | 1,238,674.00 | 1,593,457.35 | 672,912.29 | 214,852,971.36 | ||
| 2) Other decreases |
| 8,527,877.16 | 64,422,168.37 | 78,683,784.70 | 1,114,988.94 | 998,472.57 | 550,104.61 | 561,351.94 | 154,858,748.29 | |
| 4. Ending balance | 12,138,893,765.93 | 3,475,110,591.01 | 250,928,455.04 | 524,642,992.54 | 1,491,127,762.59 | 23,723,666.49 | 80,151,118.38 | 17,984,578,351.98 |
| II. Accumulated depreciation | ||||||||
| 1. Beginning balance | 6,831,031,130.42 | 730,683,147.73 | 151,068,768.79 | 388,829,145.15 | 537,936,773.25 | 11,563,635.07 | 68,305,480.17 | 8,719,418,080.58 |
| 2. Amount increased in the current period | 294,821,971.59 | 47,850,984.12 | 8,598,555.00 | 14,965,023.38 | 105,162,222.24 | 3,438,459.01 | 1,463,680.38 | 476,300,895.72 |
| 1) Accrual | 294,821,971.59 | 47,850,984.12 | 8,598,555.00 | 14,965,023.38 | 105,162,222.24 | 3,438,459.01 | 1,463,680.38 | 476,300,895.72 |
| 2) Business combination increased | ||||||||
| 3. Amount decreased in the current period | 102,591,822.37 | 3,540,976.91 | 10,336,198.62 | 1,418,228.57 | 1,160,157.71 | 174,590.84 | 733,686.36 | 119,955,661.38 |
| 1) Disposal or scrap | 102,591,822.37 | 607,062.24 | 4,522.00 | 1,180,492.30 | 974,585.44 | 0.00 | 644,460.88 | 106,002,945.23 |
| 2) Other decreases | 2,933,914.67 | 10,331,676.62 | 237,736.27 | 185,572.27 | 174,590.84 | 89,225.48 | 13,952,716.15 | |
| 4. Ending balance | 7,023,261,279.64 | 774,993,154.94 | 149,331,125.17 | 402,375,939.96 | 641,938,837.78 | 14,827,503.24 | 69,035,474.19 | 9,075,763,314.92 |
| III. Impairment reserves | ||||||||
| 1. Beginning balance | ||||||||
| 2. Amount increased in the current |
| period | ||||||||
| 1) Accrual | ||||||||
| 3. Amount decreased in the current period | ||||||||
| 1) Disposal or scrap | ||||||||
| 2) Other decreases | ||||||||
| 4. Ending balance | ||||||||
| IV. Book value | ||||||||
| 1. Ending book value | 5,115,632,486.29 | 2,700,117,436.07 | 101,597,329.87 | 122,267,052.58 | 849,188,924.81 | 8,896,163.25 | 11,115,644.19 | 8,908,815,037.06 |
| 2. Beginning book value | 5,527,733,680.39 | 2,807,802,869.04 | 176,929,834.83 | 134,027,054.70 | 953,801,916.50 | 12,649,179.92 | 10,879,083.18 | 9,623,823,618.56 |
(2). Temporarily idle fixed assets
□ Applicable √ Not applicable
(3). Fixed assets rented through financial leasing
□ Applicable √ Not applicable
(4). Fixed assets leased through operating lease
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending book value |
| Buildings | 10,523,112.84 |
| Machinery equipment | 445,375.08 |
| Item | Book value | Reason for not being granted property right certificates |
| Road property | 33,889,357.72 | In progress |
| Houses and Buildings | 80,243,824.39 | In progress |
| Item | Ending balance | Beginning balance |
| Construction in process | 3,635,582,551.38 | 2,321,215,695.29 |
| Engineering material | ||
| Total | 3,635,582,551.38 | 2,321,215,695.29 |
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Shouping railway | 127,147,000.00 | 127,147,000.00 | ||||
| Mine of Linqu mining branch | 46,627,055.35 | 46,627,055.35 | 29,935,404.27 | 29,935,404.27 | ||
| Zhonglan railway | 16,543,948.01 | 16,543,948.01 | 16,489,338.18 | 16,489,338.18 | ||
| Single apartment building for locomotive depot | 5,572,936.82 | 5,572,936.82 | 2,256,134.43 | 2,256,134.43 | ||
| Expansion and reconstruction of Dalailong railway | 798,365,579.42 | 798,365,579.42 | 556,718,096.94 | 556,718,096.94 | ||
| Steel structure pre-repair shed | 314,078.74 | 314,078.74 | ||||
| Plane vehicle light display equipment | 1,162,010.01 | 1,162,010.01 | 1,162,010.01 | 1,162,010.01 | ||
| Green industrial park | 3,488,250.97 | 3,488,250.97 | 3,375,300.76 | 3,375,300.76 | ||
| Production line | 11,660,319.85 | 11,660,319.85 | ||||
| Reconstruction and expansion of Jingtai Expressway | 2,451,519,963.27 | 2,451,519,963.27 | 1,390,342,323.00 | 1,390,342,323.00 | ||
| Reconstruction and expansion project of Jinan-Qingdao Expressway | 66,142,522.97 | 66,142,522.97 | ||||
| Reconstruction and upgrading project of Jilai expressway service area | 61,427,410.30 | 61,427,410.30 | ||||
| Reconstruction project of Jinghu expressway tunnel section | 72,637,476.85 | 72,637,476.85 | 72,637,476.85 | 72,637,476.85 |
| Weilai expressway assets transformation project | 41,840,386.80 | 41,840,386.80 | 41,840,386.80 | 41,840,386.80 | ||
| Provincial toll station reconstruction project | 28,340,667.12 | 28,340,667.12 | 27,181,361.90 | 27,181,361.90 | ||
| Widening and reconstruction of Ganggou toll station | 17,513,282.91 | 17,513,282.91 | 16,629,812.91 | 16,629,812.91 | ||
| Tunnel upgrading project | 9,652,987.40 | 9,652,987.40 | 9,652,987.40 | 9,652,987.40 | ||
| Zhongxiang management office complex building project, etc. | 4,984,712.30 | 4,984,712.30 | 4,984,712.30 | 4,984,712.30 | ||
| Others | 9,763,360.88 | 9,763,360.88 | 8,888,950.95 | 8,888,950.95 | ||
| Total | 3,635,582,551.38 | 3,635,582,551.38 | 2,321,215,695.29 | 2,321,215,695.29 |
(2).
Change of important projects in progress in current period
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Project Name | Budget amount | Beginning balance | Amount increased in the current period | Amount included in fixed assets in current period | Other decreased amount in current period | Ending balance | Proportion of cumulative project investment in budget (%) | Project progress | Accumulated amount of capitalized interest | Including: Amount of interest capitalized in current period | Capitalization rate of current interest (%) | Capital source |
| Widening and reconstruction of Ganggou toll station | 23,092,283.03 | 16,629,812.91 | 883,470.00 | 17,513,282.91 | 75.84 | 75.84 | Self-finance | |||||
| Reconstruction project of Jinghu expressway tunnel section | 74,893,482.25 | 72,637,476.85 | 72,637,476.85 | 96.99 | 96.99 | Self-finance | ||||||
| Reconstruction and expansion of Jingtai Expressway | 11,904,333,557.00 | 1,390,342,323.00 | 1,061,177,640.27 | 2,451,519,963.27 | 20.59 | 20.59 | 47,409,935.16 | 39,392,961.33 | 4.41 | Loans and own funds |
| Reconstruction and upgrading project of Jilai expressway service area | 205,240,000.00 | 61,427,410.30 | 61,427,410.30 | 29.93 | 29.93 | Self-finance | ||||||
| Weilai expressway assets transformation project | 46,965,074.63 | 41,840,386.80 | 41,840,386.80 | 98.79 | 98.79 | Self-finance | ||||||
| Expansion and reconstruction of Dalailong railway | 4,520,000,000.00 | 556,718,096.94 | 241,647,482.48 | 798,365,579.42 | 17.66 | 17.66 | 18,512,875.50 | 11,105,277.78 | 4.68 | Loans and own funds | ||
| Total | 16,774,524,396.91 | 2,078,168,096.50 | 1,365,136,003.05 | 3,443,304,099.55 | / | / | 65,922,810.66 | 50,498,239.11 | / | / |
(3).
Provision for impairment of construction in progress in the current period
□ Applicable √ Not applicable
Other description
□ Applicable √ Not applicable
Engineering material
□ Applicable √ Not applicable
23. Productive biological assets
(1).
Productive biological assets with cost measurement model
□ Applicable √ Not applicable
(2).
Productive biological assets measured by fair value
□ Applicable √ Not applicable
Other description
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right-of-use assets
□ Applicable √ Not applicable
26. Intangible assets
(1).
Intangible assets
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Land use rights | Toll road franchise | Office software | Others | Total |
| I. Original book value | |||||
| 1. Beginning balance | 1,757,940,335.51 | 47,778,171,656.16 | 71,185,304.06 | 457,018,601.94 | 50,064,315,897.67 |
| 2. Amount increased in the current period | 809,185,846.21 | 664,849.12 | 64,319.32 | 809,915,014.65 | |
| (1) Purchase | 664,849.12 | 64,319.32 | 729,168.44 | ||
| (2) Internal R&D | |||||
| (3) Business combination increased | |||||
| (4) Others | 809,185,846.21 | 809,185,846.21 | |||
| 3. Amount decreased in the current period | |||||
| (1) Disposal | |||||
| (2) Others | |||||
| 4. Ending balance | 2,567,126,181.72 | 47,778,171,656.16 | 71,850,153.18 | 457,082,921.26 | 50,874,230,912.32 |
| II. Accumulated amortization | |||||
| 1. Beginning balance | 683,192,149.57 | 6,986,891,297.60 | 37,518,719.29 | 40,824,683.68 | 7,748,426,850.14 |
| 2. Amount increased in the current period | 29,451,820.90 | 630,722,160.28 | 4,731,947.54 | 8,091,801.42 | 672,997,730.14 |
| (1) Accrual | 29,451,820.90 | 630,722,160.28 | 4,731,947.54 | 8,091,801.42 | 672,997,730.14 |
| (2) Business combination increased | |||||
| 3. Amount decreased in the current period | |||||
| (1) Disposal | |||||
| (2) Others | |||||
| 4. Ending balance | 712,643,970.47 | 7,617,613,457.88 | 42,250,666.83 | 48,916,485.10 | 8,421,424,580.28 |
| III. Impairment reserves | |||||
| 1. Beginning balance | |||||
| 2. Amount increased in the current period | |||||
| (1) Accrual | |||||
| 3. Amount decreased in the current period | |||||
| (1) Disposal | |||||
| 4. Ending balance | |||||
| IV. Book value | |||||
| 1. Ending book value | 1,854,482,211.25 | 40,160,558,198.28 | 29,599,486.35 | 408,166,436.16 | 42,452,806,332.04 |
| 2. Beginning book value | 1,074,748,185.94 | 40,791,280,358.56 | 33,666,584.77 | 416,193,918.26 | 42,315,889,047.53 |
(2).
Rights to use the Land with property right certificate not available
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
27. Development expenditure
□ Applicable √ Not applicable
28. Goodwill
(1). Original book value of goodwill
□ Applicable √ Not applicable
(2). Impairment reserves of goodwill
□ Applicable √ Not applicable
(3). Information about the asset group or combination of asset groups in which the goodwill islocated
□ Applicable √ Not applicable
(4). Explain the goodwill impairment test process, key parameters (such as the growth rate inthe forecast period, the growth rate in the stable period, the profit rate, the discount rate, theforecast period, etc., if applicable) and the recognition method of goodwill impairment loss
□ Applicable √ Not applicable
(5). Impact of goodwill impairment test
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
29. Long-term deferred expenses
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Beginning balance | Amount increased in the current period | Amortization amount in the current period | Other decreased amount | Ending balance |
| Land compensation fee | 216,496.83 | 2,919.00 | 213,577.83 | ||
| Land leasing fee | 157,500.00 | 10,500.00 | 147,000.00 | ||
| Renovation costs | 1,499,423.29 | 495,720.48 | 1,003,702.81 | ||
| Others | 6,250,134.00 | 169,998.00 | 6,080,136.00 | ||
| Total | 8,123,554.12 | 679,137.48 | 7,444,416.64 |
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Deductible loss | 275,495,968.28 | 68,873,992.07 | 275,495,968.28 | 68,873,992.07 |
| Demolition loss | 1,245,810,060.69 | 311,452,515.18 | 1,245,810,060.69 | 311,452,515.18 |
| Deferred Income | 300,000,000.00 | 75,000,000.00 | 300,000,000.00 | 75,000,000.00 |
| Asset impairment reserves | 352,816,957.10 | 85,220,747.94 | 279,411,391.68 | 67,774,825.76 |
| Dismissal benefits | 278,191,951.50 | 69,547,987.87 | 262,096,407.63 | 65,524,101.91 |
| Internally unrealized profits | 57,263,322.38 | 13,065,794.45 | 57,263,322.38 | 13,065,794.45 |
| Estimated liabilities | 75,092,626.46 | 18,773,156.62 | 74,116,670.08 | 18,529,167.52 |
| Total | 2,584,670,886.41 | 641,934,194.13 | 2,494,193,820.74 | 620,220,396.89 |
| Item | Ending balance | Beginning balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Valuation and appreciation of consolidated assets of enterprises not under the same control | 2,567,006,598.40 | 641,751,649.60 | 2,581,406,598.40 | 645,351,649.60 |
| Depreciation and amortization of long-term assets | 1,010,343,743.94 | 252,585,935.99 | 1,029,582,613.96 | 257,395,653.49 |
| Total | 3,577,350,342.34 | 894,337,585.59 | 3,610,989,212.36 | 902,747,303.09 |
| Item | Ending balance | Beginning balance |
| Deductible temporary differences | 7,962,374.90 | 7,962,374.90 |
| Deductible loss | 1,595,257,260.19 | 1,595,257,260.19 |
| Total | 1,603,219,635.09 | 1,603,219,635.09 |
Unit: Yuan Currency: RMB
| Year | Ending amount | Beginning amount | Note |
| 2020 | 317,803,240.98 | 317,803,240.98 | |
| 2021 | 261,797,589.14 | 261,797,589.14 | |
| 2022 | 274,747,002.70 | 274,747,002.70 | |
| 2023 | 359,917,954.06 | 359,917,954.06 | |
| 2024 | 380,991,473.31 | 380,991,473.31 | |
| Total | 1,595,257,260.19 | 1,595,257,260.19 | / |
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Advance payment for project | 2,652,247,337.85 | 2,652,247,337.85 | 2,131,353,751.99 | 2,131,353,751.99 | ||
| Advance payment for land | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | ||
| Total | 2,654,047,337.85 | 2,654,047,337.85 | 2,133,153,751.99 | 2,133,153,751.99 | ||
| Item | Ending balance | Beginning balance |
| Pledge borrowing | ||
| Mortgage loan | ||
| Guaranteed loan | ||
| Credit loan | 1,446,003,111.67 | 572,762,465.75 |
| Total | 1,446,003,111.67 | 572,762,465.75 |
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
33. Trading financial liabilities
□ Applicable √ Not applicable
34. Derivative financial liabilities
□ Applicable √ Not applicable
35. Notes payable
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Variety | Ending balance | Beginning balance |
| Commercial acceptance bill | 39,438,206.66 | |
| Bank acceptance bill | 121,992,756.25 | 33,211,430.37 |
| Total | 161,430,962.91 | 33,211,430.37 |
| Item | Ending balance | Beginning balance |
| Accounts payable | 2,939,254,508.27 | 4,993,276,757.09 |
| Total | 2,939,254,508.27 | 4,993,276,757.09 |
| Item | Ending balance | Reasons for non-payment or carry forward |
| Yantai Railway Construction Administration | 97,562,800.00 | Unsettled |
| Weifang Local Railway Administration | 32,214,148.00 | Unsettled |
| Total | 129,776,948.00 | / |
| Item | Ending balance | Beginning balance |
| Advance receipt | 202,159,235.46 | 263,755,294.16 |
| Total | 202,159,235.46 | 263,755,294.16 |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| I. Short-term payroll | 87,860,737.28 | 529,214,463.17 | 575,557,774.44 | 41,517,426.01 |
| II. Post-employment benefits - defined contribution plan | 504,826.15 | 54,457,742.80 | 53,367,244.87 | 1,595,324.08 |
| III. Dismissal benefits | ||||
| IV. Other benefits due within one year | ||||
| Total | 88,365,563.43 | 583,672,205.97 | 628,925,019.31 | 43,112,750.09 |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| I. Wage, bonus, allowance and subsidy | 42,941,480.36 | 405,610,858.87 | 448,552,339.23 | |
| II. Welfare benefits payable | 50,202.72 | 31,123,008.71 | 31,070,423.13 | 102,788.30 |
| III. Social insurance premium | 13,032,444.81 | 34,467,342.86 | 37,096,822.00 | 10,402,965.67 |
| Including: Medical insurance premium | 32,676.75 | 24,174,252.82 | 24,206,929.57 |
| Work-related injury insurance premium | 2,278.77 | 1,810,072.87 | 1,812,351.64 | |
| Maternity insurance premium | 3,630.75 | 936,951.14 | 940,581.89 | |
| Supplementary medical insurance | 12,993,858.54 | 7,546,066.03 | 10,136,958.90 | 10,402,965.67 |
| IV. Housing provident fund | 43,569.00 | 48,442,636.25 | 48,486,205.25 | |
| V. Labor union funds and employee education funds | 31,636,997.37 | 9,570,616.48 | 10,351,984.83 | 30,855,629.02 |
| VI Short-term paid absences | ||||
| VII. Short-term profit sharing plan | ||||
| VIII. Other short-term payroll | 156,043.02 | 156,043.02 | ||
| Total | 87,860,737.28 | 529,214,463.17 | 575,557,774.44 | 41,517,426.01 |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Basic endowment insurance | 67,063.20 | 29,774,246.44 | 29,841,309.64 | |
| 2. Unemployment insurance premium | 2,541.40 | 1,226,904.16 | 1,229,445.56 | |
| 3. Payment of enterprise annuity | 435,221.55 | 23,456,592.20 | 22,296,489.67 | 1,595,324.08 |
| Total | 504,826.15 | 54,457,742.80 | 53,367,244.87 | 1,595,324.08 |
| Item | Ending balance | Beginning balance |
| Enterprise income tax | 78,957,493.45 | 619,540,851.59 |
| VAT | 97,872,661.73 | 78,898,285.13 |
| Individual income tax | 4,484,708.75 | 6,468,550.11 |
| Real estate tax | 4,544,587.07 | 5,532,340.89 |
| Urban construction tax | 6,044,995.33 | 6,435,938.30 |
| Education surcharge | 5,141,349.25 | 4,343,524.57 |
| Land use tax | 779,046.76 | 1,784,155.98 |
| Stamp duty | 587,085.78 | 5,090,635.80 |
| Value-added tax on land | 10,632,887.68 | 35,512,966.90 |
| Others | 754,610.70 | 765,539.63 |
| Total | 209,799,426.50 | 764,372,788.90 |
None.
41. Presentation of other payables
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Dividends payable | 1,858,445,236.28 | 24,999,731.51 |
| Other payables | 5,534,368,206.15 | 2,648,717,308.90 |
| Total | 7,392,813,442.43 | 2,673,717,040.41 |
| Item | Ending balance | Beginning balance |
| Common stock dividends | 1,858,445,236.28 | 24,999,731.51 |
| Total | 1,858,445,236.28 | 24,999,731.51 |
| Item | Ending balance | Beginning balance |
| Project funds | 266,949,644.69 | 193,032,596.67 |
| Current accounts and advances on behalf of others | 2,132,816,420.77 | 2,003,759,984.34 |
| Current accounts of related parties outside the scope of consolidation | 1,557,907,882.51 | 146,362,441.56 |
| Collection for others | 83,716,499.94 | 41,858,249.97 |
| Project security | 99,274,431.22 | 46,208,183.67 |
| Equity transfer payable | 1,363,282,709.16 | 191,803,642.24 |
| Others | 30,420,617.86 | 25,692,210.45 |
| Total | 5,534,368,206.15 | 2,648,717,308.90 |
| Item | Ending balance | Reasons for non-payment or carry forward |
| Shandong Railway Investment | 416,348,633.94 | Unsettled |
| Holding Group Co., Ltd. | ||
| Shandong Hi-Speed Group Co., Ltd. | 297,234,461.78 | Unsettled |
| Henan JuKang Investment Co., Ltd. | 122,204,464.16 | Unsatisfied settlement conditions |
| Shanghai Zhida Technology (Group) Co., Ltd. | 31,500,000.00 | Unsatisfied settlement conditions |
| Total | 867,287,559.88 | / |
| Item | Ending balance | Beginning balance |
| Long-term loan due within one year | 3,197,429,828.24 | 2,602,845,589.70 |
| Long-term payroll payable | 48,699,234.17 | 49,264,116.76 |
| 337,991,714.43 | 175,718,144.88 | |
| Total | 3,584,120,776.84 | 2,827,827,851.34 |
| Item | Ending balance | Beginning balance |
| Ultra-short-term financing bond | 4,019,210,972.37 | 2,514,549,315.05 |
| Total | 4,019,210,972.37 | 2,514,549,315.05 |
Increase and decrease of short-term bonds payable:
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Bond name | Face value | Issuing date | Bond duration | Amount issued | Beginning balance | Current issuance | Interests accrued by face value | Amortization of the premiums and discounts | Current payment | Ending balance |
| Phase I of ultra-short-term financing in 2020 | 100.00 | 2020/3/13 | 180 days | 1,000,000,000.00 | 1,000,000,000.00 | 7,505,766.89 | 1,007,505,766.89 | |||
| Phase II of ultra-short-term financing in 2020 | 100.00 | 2020/3/19 | 180 days | 1,000,000,000.00 | 1,000,000,000.00 | 6,724,383.56 | 1,006,724,383.56 | |||
| Phase III of ultra-short-term financing in 2020 | 100.00 | 2020/4/13 | 180 days | 1,000,000,000.00 | 1,000,000,000.00 | 3,846,575.34 | 1,003,846,575.34 | |||
| Phase IV of ultra-short-term financing in 2020 | 100.00 | 2020/6/8 | 270 days | 1,000,000,000.00 | 1,000,000,000.00 | 1,134,246.58 | 1,001,134,246.58 | |||
| Phase VII of ultra-short-term financing | 100.00 | 2019/9/19 | 180 days | 1,500,000,000.00 | 1,512,992,876.69 | 9,433,352.82 | 1,522,426,229.51 |
| in 2019 | ||||||||||
| Phase X of ultra-short-term financing in 2019 | 100.00 | 2019/12/13 | 180 days | 1,000,000,000.00 | 1,001,556,438.36 | 13,148,479.67 | 1,014,704,918.03 | |||
| Total | / | / | / | 6,500,000,000.00 | 2,514,549,315.05 | 4,000,000,000.00 | 41,792,804.86 | 2,537,131,147.54 | 4,019,210,972.37 |
Other instructions:
□ Applicable √ Not applicable
45. Long-term Loans
(1).
Classification of long-term loans
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Pledge borrowing | 24,008,028,527.04 | 24,119,080,000.00 |
| Guaranteed loan | 1,564,727,000.00 | 1,634,727,000.00 |
| Credit loan | 8,093,588,968.11 | 7,388,299,943.46 |
| Total | 33,666,344,495.15 | 33,142,106,943.46 |
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Long-term payable | ||
| Special payable | 294,000,000.00 | 294,000,000.00 |
| Total | 294,000,000.00 | 294,000,000.00 |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | Causes |
| Special payable (Note 1) | 294,000,000.00 | 294,000,000.00 | |||
| Total | 294,000,000.00 | 294,000,000.00 | / |
| Item | Ending balance | Beginning balance |
| Estimated expenditure for retired employee | 258,449,029.84 | 242,396,564.49 |
| Total | 258,449,029.84 | 242,396,564.49 |
Description of the content of defined benefit plan and its related risks, impact on the company's futurecash flow, time and uncertainty:
□ Applicable √ Not applicable
Explanation of significant actuarial assumptions and sensitivity analysis results of defined benefit plan
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
50. Estimated liabilities
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Beginning balance | Ending balance | Causes |
| Pending litigation | 75,404,513.49 | 75,092,626.46 | |
| Total | 75,404,513.49 | 75,092,626.46 | / |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | Causes |
| Government subsidy | 930,284,109.40 | 333,497,476.80 | 16,814,031.42 | 1,246,967,554.78 | |
| Rental fees collected in advance | 246,913,730.16 | 246,913,730.16 | |||
| Service charge collected in advance | 1,572,327.04 | 1,572,327.04 | |||
| Total | 1,178,770,166.60 | 333,497,476.80 | 16,814,031.42 | 1,495,453,611.98 | / |
| Liability items | Beginning balance | Amount of newly increased subsidies in current period | Amount included in non-operating income in current period | Amount included in other income in the current period | Other changes | Ending balance | Asset-related/income-related |
| Special fund for energy saving and emission reduction | 1,639,375.00 | 1,639,375.00 | Asset related | ||||
| Enterprise agglomeration support fund | 5,000,000.00 | 5,000,000.00 | Income related | ||||
| Compensation for construction of interchange to zero point Interchange Section of Xiaoxujia hub of communication | 300,000,000.00 | 313,976,662.50 | 613,976,662.50 | Asset related | |||
| Special project fund for reconstruction of toll station of Lijin Yellow River Highway Bridge | 10,680,000.00 | 13,672,814.30 | 24,352,814.30 | Asset related | |||
| Removal of subsidies for provincial toll station | 5,796,500.00 | 5,796,500.00 | Income related | ||||
| Subsidies for stabilizing posts | 51,500.00 | 51,500.00 | Income related | ||||
| Shouguang government's special fund subsidy for Yidu-Yangkou Railway reconstruction project | 559,092,633.38 | 9,576,923.00 | 549,515,710.38 | Asset related |
| Office building demolition compensation | 7,049,147.30 | 45,186.84 | 7,003,960.46 | Asset related | |||
| Dalailong railway project construction | 30,000,000.00 | 2,004,608.30 | 27,995,391.70 | Asset related | |||
| Land rebate | 16,822,953.72 | 187,313.28 | 16,635,640.44 | Asset related |
| Beginning balance | Increase and decrease of this change (+, -) | Ending balance | |||||
| New shares issue | Stock offering | Conversion of provident fund into shares | Others | Subtotal | |||
| Total number of shares | 4,811,165,857.00 | 4,811,165,857.00 | |||||
| Outstanding financial instruments | Beginning | Increase in the Current Period | Decrease in the Current Period | Ending | ||||
| Qty. | Book value | Qty. | Book value | Qty. | Book value | Qty. | Book value | |
| Bohai trust plan | 2,000,000,000.00 | 2,000,000,000.00 | ||||||
| Total | 2,000,000,000.00 | 2,000,000,000.00 | ||||||
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Capital premium (share premium) | 4,836,763,252.70 | 2,436,440,813.89 | 2,400,322,438.81 | |
| Other capital reserves | ||||
| Total | 4,836,763,252.70 | 2,436,440,813.89 | 2,400,322,438.81 |
57. Other comprehensive income
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Beginning balance | Amount incurred in current period | Ending balance | |||||
| Accrual before the income tax in the current period | Minus: Amount included into other comprehensive income in previous period and transferred into loss and profit in current period | Minus: Amount included in other comprehensive income in the previous period and transferred to retained earnings in the current period | Minus: Income tax expense | Belong to the parent company after tax | Attribute to minority shareholders after tax | |||
| I. Other comprehensive income cannot be reclassified into profit and loss | -5,182,926.83 | -5,182,926.83 | -5,182,926.83 | |||||
| Including: Changes arising from the re-measurement of defined benefit plans | ||||||||
| Other comprehensive profits that cannot be converted into profits or losses under the equity | ||||||||
| method | ||||||||
| Fair value changes of other equity instrument investment | -5,182,926.83 | -5,182,926.83 | -5,182,926.83 | |||||
| Fair value changes of enterprise’s credit risk | ||||||||
| II. Other comprehensive income that will be reclassified into profits and losses | 9,953,082.58 | 43,049,665.45 | 43,049,665.45 | 53,002,748.03 | ||||
| Including: Other comprehensive incomes that can be converted into profits and losses under the equity method | 9,953,082.58 | 43,049,665.45 | 43,049,665.45 | 53,002,748.03 | ||||
| Fair value changes of other debt investment |
| Amount of financial assets reclassified into other comprehensive income | ||||||||
| Reserves for credit impairment of other credit investments | ||||||||
| Cash flow hedging reserves | ||||||||
| Translation difference in foreign currency statements | ||||||||
| Total of other comprehensive income | 9,953,082.58 | 37,866,738.62 | 37,866,738.62 | 47,819,821.20 |
58. Appropriate reserve
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Safe production costs | 82,671,061.69 | 6,857,606.49 | 89,528,668.18 | |
| Total | 82,671,061.69 | 6,857,606.49 | 89,528,668.18 |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Statutory surplus reserves | 3,164,742,776.43 | 3,164,742,776.43 | ||
| Total | 3,164,742,776.43 | 3,164,742,776.43 |
| Item | Current period | Last year |
| Undistributed profits at the end of last period before adjustment | 17,975,791,829.92 | 16,276,718,131.16 |
| Total undistributed profit at the beginning of the adjustment period (increase +, decrease -) | 406,085,432.07 | 319,713,385.69 |
| Undistributed profits at the beginning of the period after adjustment | 18,381,877,261.99 | 16,596,431,516.85 |
| Plus: Net profit attributable to owner of parent company | 256,960,515.79 | 3,135,482,313.07 |
| Minus: Withdrawn statutory surplus reserves | 271,952,038.65 | |
| Withdrawn free surplus reserves | ||
| Withdrawn general risk reserve | ||
| Common stock dividends payable | 1,828,243,025.66 | 1,078,084,529.28 |
| Ordinary stock dividend transferred to equity | ||
| Others | 346,768,624.51 | |
| Undistributed profits at the end of the period | 16,463,826,127.61 | 18,381,877,261.99 |
1. Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant newregulations, the undistributed profit at the beginning of the period is affected by 0 yuan.
2. Due to the change of accounting policy, the undistributed profit at the beginning of the period is affectedby 0 yuan.
3. Due to the correction of major accounting errors, the undistributed profit at the beginning of the periodis affected by 0 yuan.
4. Due to change in the scope of consolidation caused by the same control, the undistributed profit at thebeginning of the period is affected by 406,085,432.07 yuan.
5. The total amount of other adjustments affects the undistributed profit at the beginning of the period is0 yuan.
61. Operating revenue and operating cost
(1). Operating revenue and operating cost
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Amount incurred in current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 4,007,066,424.71 | 3,033,642,714.94 | 4,722,694,859.15 | 2,594,330,259.36 |
| Other businesses | 42,573,477.80 | 14,337,658.54 | 38,912,864.00 | 15,846,260.92 |
| Total | 4,049,639,902.51 | 3,047,980,373.48 | 4,761,607,723.15 | 2,610,176,520.28 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Urban maintenance and construction tax | 11,812,754.42 | 15,435,943.16 |
| Education surcharge | 8,745,696.93 | 11,317,573.24 |
| Resource tax | 8,033.51 | 34,368.00 |
| Real estate tax | 6,720,791.02 | 6,887,278.99 |
| Land use tax | 2,587,982.01 | 2,827,605.05 |
| Vehicle and vessel use tax | 173,747.40 | 170,558.73 |
| Stamp duty | 1,361,653.91 | 1,204,964.16 |
| Environmental protection tax | 8,383.94 | 9,930.90 |
| Others | 1,208,973.75 | 2,189,189.78 |
| Total | 32,628,016.89 | 40,077,412.01 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Packing expense | 1,688,157.60 | 1,100,573.61 |
| Transport expense | 37,412,482.19 | 20,746,726.71 |
| Exhibition expense | 197,283.96 | |
| Employee compensation | 338,819.47 | 2,117,843.06 |
| Business fund | 722,974.68 | 896,726.98 |
| Advertising expense | 59,550.00 | 235,849.05 |
| Others | 12,244.71 | 372,069.81 |
| Total | 40,234,228.65 | 25,667,073.18 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Employee compensation | 111,490,051.00 | 124,747,880.71 |
| Depreciation and amortization expenses | 19,671,344.66 | 33,321,576.28 |
| Vehicle usage fee | 1,812,623.34 | 1,013,645.28 |
| Agent fee | 9,066,997.79 | |
| Labor protection fee | 5,946,232.16 | |
| Others | 31,960,292.02 | 41,040,134.64 |
| Total | 179,947,540.97 | 200,123,236.91 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Research and development (R&D) expenses | 13,734,019.00 | 4,611,801.62 |
| Total | 13,734,019.00 | 4,611,801.62 |
66. Finance expense
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Amount incurred in current period | Amount incurred in previous period |
| Interest expense | 836,914,128.53 | 572,838,717.00 |
| Interest income | -205,779,848.48 | -72,530,618.66 |
| Others | 347,525.89 | 1,400,557.21 |
| Total | 631,481,805.94 | 501,708,655.55 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Development fund for enterprises supported by the government | 6,500,000.00 | |
| Government subsidies for engineering project | 11,581,531.30 | |
| Land compensation and other subsidies | 12,630,090.77 | 187,313.28 |
| Total | 24,211,622.07 | 6,687,313.28 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Long-term equity investment income calculated by the equity method | 226,239,883.38 | 282,369,429.94 |
| Investment income from disposal of long-term equity | ||
| Investment income of trading financial assets during the holding period | 27,597,231.55 | 524,516,294.16 |
| Dividend income of other equity instrument investment during holding period | ||
| Interest income of debt investment during holding period | 230,335,152.04 | 78,209,135.68 |
| Interest income of other debt investment during holding period | ||
| Investment income from disposal of trading financial assets | 6,615,000.00 | |
| Investment income from disposal of other equity instrument investment | ||
| Investment income from disposal of debt investment | 47,812,500.00 | |
| Investment income from disposal of |
| other debt investment | ||
| Total | 484,172,266.97 | 939,522,359.78 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Bad debt loss of other receivables | -52,616,330.64 | -23,803,174.00 |
| Impairment loss of credit investment | ||
| Impairment loss of other credit investment | ||
| Bad debt loss of long-term receivables | ||
| Impairment loss on contract assets | ||
| Bad debt loss of accounts receivable | -20,789,234.78 | -1,323,710.69 |
| Reversal of prepaid impairment | 6,000.00 | |
| Total | -73,405,565.42 | -25,120,884.69 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Rail engineering asset disposal | -52,409,402.27 | |
| Total | -52,409,402.27 |
Unit: Yuan Currency: RMB
| Item | Amount incurred in current period | Amount incurred in previous period | Amount recorded in non-recurring profits and losses of the current period |
| Total of non-current asset disposal gains | 4,980,396.00 | 72,413.20 | 4,980,396.00 |
| Including: Gains from disposal of fixed assets | 4,980,396.00 | 72,413.20 | 4,980,396.00 |
| Gains from disposal of intangible assets | |||
| Gains from debt restructuring | |||
| Gains from exchange of non-monetary assets | |||
| Acceptance of donations | |||
| Government subsidy | 191,369.67 | 13,238,871.42 | 191,369.67 |
| Income from highway assets and highway property compensations | 7,808,623.42 | 9,137,996.57 | 7,808,623.42 |
| Others | 4,645,635.25 | 13,116,855.95 | 4,645,635.25 |
| Total | 17,626,024.34 | 35,566,137.14 | 17,626,024.34 |
| Subsidy project | Amount incurred in current period | Amount incurred in prior period | Asset-related/income-related |
| Incentive funds, post allowance | 191,369.67 | 2,645,600.00 | Income related |
| Deferred income amortization of land compensation | 10,593,271.42 | Asset related |
| Item | Amount incurred in current period | Amount incurred in previous period | Amount recorded in non-recurring profits and losses of the current period |
| Total of loss on disposal of non-current assets | 2,261,332.97 | 1,561,033.11 | 2,261,332.97 |
| Including: Loss from disposal of fixed assets | 2,261,332.97 | 1,561,033.11 | 2,261,332.97 |
| Loss from disposal of intangible assets | |||
| Loss from debt restructuring | |||
| Loss from exchange of non-monetary assets | |||
| Donation | |||
| Other losses | 18,082,005.57 | 1,642,452.92 | 18,082,005.57 |
| Total | 20,343,338.54 | 3,203,486.03 | 20,343,338.54 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Current income tax expense | 181,678,794.11 | 615,843,913.88 |
| Deferred income tax expense | -30,123,514.74 | -21,294,119.34 |
| Total | 151,555,279.37 | 594,549,794.54 |
| Item | Amount incurred in current period |
| Total profit | 483,485,524.73 |
| Income tax expense calculated according to legal/applicable tax rate | 122,835,427.94 |
| Impact of subsidiaries using different tax rates | -6,985,082.87 |
| Effect of income tax before adjustment | 9,525,658.17 |
| Effect of non-taxable income | -58,524,017.61 |
| Effect of non-deductible costs, expenses and losses | 11,875,943.04 |
| Effect of deductible loss of unrecognized deferred income tax assets in early use period | -30,123,514.74 |
| Effect of unrecognized deductible temporary difference or deductible loss of deferred income tax assets of current period | 102,950,865.44 |
| Income tax expense | 151,555,279.37 |
Other instructions:
□ Applicable √ Not applicable
77. Other comprehensive income
√Applicable □ Not applicable
For details, please refer to the note "VII. 57 Other comprehensive income"
78. Cash flow statement
(1).
Other cash received related to operating activities
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Amount incurred in current period | Amount incurred in previous period |
| Government subsidy received | 27,128,166.90 | 13,426,184.65 |
| Current account and deposit | 1,553,131,963.21 | 588,893,097.10 |
| Income received from highway assets and highway property compensations | 30,702,094.11 | 9,137,996.60 |
| Interest income | 83,176,342.98 | |
| Others | 153,871,869.08 | |
| Total | 1,848,010,436.28 | 611,457,278.35 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Current account and deposit | 188,914,917.32 | 721,897,294.87 |
| Payment of advertising expense | 16,529.90 | 1,273,833.75 |
| Period expense | 179,408,722.36 | 109,875,349.11 |
| Others | 6,492,903.83 | |
| Total | 374,833,073.41 | 833,046,477.73 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Funds received from Shanghai Zhida | 3,534,191.37 | 24,162,117.01 |
| Interest received on loans of Jinan Puyuan | 45,153,729.06 | |
| Compensation for construction of interchange to zero point Interchange | 313,976,662.50 |
| Section of Xiaoxujia hub of communication | ||
| Current accounts received in advance | 13,099,728.99 | |
| Special investment funds received for project | 891,518,887.32 | |
| Total | 1,209,029,741.19 | 82,415,575.06 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Pending investment for project construction | 13,568,233.22 | |
| Intercourse funds | 56,295,175.54 | |
| Total | 69,863,408.76 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Pay the rent and handling fee of the leaseback assets of after-sale financing | 1,340,587.91 | |
| Others | 4,422,433.70 | 11,391.78 |
| Total | 4,422,433.70 | 1,351,979.69 |
| Supplementary data | Amount in current period | Amount in previous period |
| 1． Adjust net profit to cash flows from operating activities: | ||
| Net Profits | 331,930,245.36 | 1,738,144,668.54 |
| Plus: Asset impairment reserves | 25,120,884.69 | |
| Credit impairment loss | -73,105,565.42 |
| Depreciation of fixed assets, loss of oil and gas assets and depreciation of productive biological assets | 404,599,088.55 | 385,332,465.29 |
| Amortization of right-of-use assets | ||
| Amortization of intangible assets | 660,436,540.26 | 329,923,492.31 |
| Amortization of long-term prepaid expenses | 665,718.48 | 665,786.57 |
| Loss from disposal of fixed asset, intangible asset and other long-term asset (marked with "-" for earnings) | -55,614,945.40 | 1,488,619.91 |
| Loss from retirement of fixed assets (earnings are listed with "-") | 486,480.10 | |
| Loss from fair value change (earnings are listed with "-") | ||
| Financial expenses (earnings are listed with "-") | 635,378,286.59 | 572,838,717.00 |
| Investment losses (earnings are listed with "-") | -484,172,266.97 | -939,522,359.78 |
| Decrease in deferred income tax assets (increase is listed with "-") | -21,713,797.24 | 3,623,613.14 |
| Increase in deferred income tax liabilities (decrease is listed with "-") | -8,409,717.50 | -19,031,404.64 |
| Decrease in inventories (increase is listed with "-") | 134,607,232.92 | -125,788,417.32 |
| Decrease in operational receivables (increase is listed with "-") | -905,405,557.65 | 896,348,263.43 |
| Increase in operational payables (decrease in listed with "-") | 1,030,646,552.90 | -341,111,909.07 |
| Others | ||
| Net cash flow from operating activities | 1,650,328,294.98 | 2,528,032,420.07 |
| 2． Significant investment and financing activities not involved with cash income and expenditure: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due with one year | ||
| Fixed assets under financing lease | ||
| 3． Net change in cash and cash equivalent: | ||
| Ending balance of cash | 2,748,615,839.34 | 5,890,906,989.62 |
| Minus: Beginning balance of cash | 2,325,841,659.54 | 2,341,913,200.47 |
| Plus: Ending balance of cash equivalents | ||
| Minus: Beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 422,774,179.80 | 3,548,993,789.15 |
(2)
Net cash paid to acquire subsidiaries in the current period
□ Applicable √ Not applicable
(3)
Net cash received to acquire subsidiaries in the current period
□ Applicable √ Not applicable
(4)
Composition of cash and cash equivalents
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 2,748,615,839.34 | 2,325,841,659.54 |
| Including: Cash in stock | 55,855.54 | 146,872.71 |
| Bank deposits that can be used for payment at any time | 2,748,559,983.80 | 2,325,694,786.83 |
| Other monetary fund that can be used for payment at any time | ||
| Amounts deposited at the central bank that can be used for payment | ||
| Deposits in other banks | ||
| Payments about call Loan to Banks | ||
| II. Cash equivalents | ||
| Including: Bond investment due within three months | ||
| Balance of ending cash and cash equivalents | 2,748,615,839.34 | 2,325,841,659.54 |
| Including: Cash and cash equivalents of parent company or group, which use right is restricted for subsidiaries |
| Item | Ending book value | Restriction reason |
| Monetary funds | 23,243,780.84 | Deposit |
| Intangible assets | 30,772,330,972.28 | Pledge borrowing |
| Total | 30,795,574,753.12 | / |
82. Foreign currency monetary items
(1). Foreign currency monetary items
□ Applicable √ Not applicable
(2). Description of overseas operating entities including major overseas operating entities.Their main business locations at abroad, recording currency and selection basis shall be disclosedand reasons for changes in recording currency shall be disclosed too if the recording currencychanges.
□ Applicable √ Not applicable
83. Hedging
□ Applicable √ Not applicable
84. Government subsidy
1. Government subsidy
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Variety | Amount | Presented items | Amount included in the profit and loss of the current period |
| Special fund for energy saving and emission reduction | 1,639,375.00 | Deferred Income | |
| Enterprise agglomeration support fund | 5,000,000.00 | Other income | 5,000,000.00 |
| Compensation for construction of interchange to zero point Interchange Section of Xiaoxujia hub of communication | 613,976,662.50 | Deferred Income | |
| Special project fund for reconstruction of toll station of Lijin Yellow River Highway Bridge | 24,352,814.30 | Deferred Income | |
| Removal of subsidies for provincial toll station | 5,796,500.00 | Deferred Income | |
| Subsidies for stabilizing posts | 790,313.65 | Deferred Income | 738,813.65 |
| Shouguang government's special fund subsidy for Yidu-Yangkou Railway reconstruction project | 549,515,710.38 | Deferred Income | 9,576,923.00 |
| Office building demolition | 7,003,960.46 | Deferred Income | 45,186.84 |
| compensation | |||
| Dalailong railway project construction | 27,995,391.70 | Deferred Income | 2,004,608.30 |
| Land rebate | 16,635,640.44 | Deferred Income | 187,313.28 |
| Support funds for headquarter enterprises | 6,310,000.00 | Other income | 6,310,000.00 |
| Financial subsidy for Linqu centralized payment center | 300,000.00 | Other income | 300,000.00 |
| Others | 236,090.28 | Other income | 48,777.00 |
| Others | 191,369.67 | Non-operating income | 191,369.67 |
| Name of the combined party | Proportion of equity obtained in business combination | Basis for the constituting of business combination under the same control | Date of combination | Determining basis for the combination date | Income of combined party from the beginning of the year to the combination day | Net profits of combined party from the beginning of the year to the combination day | Income of combined party during the period of comparison | Net profits of combined party during the period of comparison |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | 51% | Under the same control of parent company together with the Company | June 30, 2020 | Transfer of control right | 2,115,627,471.93 | 181,832,760.37 | 1,552,817,659.15 | 78,700,611.50 |
| Cost of business combination | Shandong Hi-Speed Rail Transit Group Co., Ltd. |
| - Cash | 3,487,254,636.00 |
| - Book value of non-cash assets | |
| - Book value of debt issued or assumed | |
| - Face value of equity securities issued | |
| - Contingent consideration |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | ||
| Date of combination | Ending of the previous period | |
| Assets: | 9,637,371,566.82 | 7,610,319,593.27 |
| Monetary funds | 478,680,736.10 | 663,789,898.52 |
| Notes receivable | 179,877,623.78 | 195,070,480.97 |
| Accounts receivable | 458,859,068.64 | 208,957,188.66 |
| Advanced payment | 609,660,408.52 | 137,186,400.95 |
| Other receivables | 1,285,554,347.07 | 87,331,809.78 |
| Stock | 225,538,194.93 | 360,145,427.85 |
| Other current assets | 677,953.17 | 72,571,354.99 |
| Other equity instrument investment | 347,626,837.00 | 331,626,837.00 |
| Long term equity investment | 400,000,000.00 | 120,000,000.00 |
| Investment real estate | 706,236.71 | |
| Fixed assets | 2,878,782,179.29 | 3,233,573,488.40 |
| Construction in process | 873,144,034.59 | 749,856,627.79 |
| Intangible assets | 1,832,428,933.24 | 1,058,117,848.42 |
| Long-term deferred expenses | 360,577.83 | 373,996.83 |
| Deferred income tax assets | 65,474,435.95 | 67,575,032.82 |
| Other non-current assets | 324,143,200.29 | |
| Liabilities: | 5,606,814,985.73 | 4,595,076,973.21 |
| Short-term borrowings | 134,500,000.00 | 68,000,000.00 |
| Notes payable | 68,982,756.25 | 33,211,430.37 |
| Accounts payable | 438,783,491.62 | 545,618,253.03 |
| Advance receipt | 150,507,281.37 | 171,530,762.18 |
| Employee pay payable | 150,472,249.86 | 197,682,435.28 |
| Taxes payable | -6,507,693.47 | 116,541,585.46 |
| Interest payable | 175,052,667.26 | 175,718,144.88 |
| Dividends payable | 30,202,210.62 | 24,999,731.51 |
| Other payables | 2,660,499,874.58 | 1,558,326,564.41 |
| Long-term Loans | 1,114,908,818.20 | 1,001,908,818.20 |
| Special payable | 13,170,000.00 | 13,170,000.00 |
| Estimated liabilities | 75,092,626.46 | 75,404,513.49 |
| Deferred Income | 601,150,702.98 | 612,964,734.40 |
| Net Assets | 4,030,556,581.09 | 3,015,242,620.06 |
| Minus: Minority equity | 2,308,295,588.47 | 1,849,260,955.80 |
| Net assets acquired | 1,722,260,992.62 | 1,165,981,664.26 |
3. Reverse purchase
□ Applicable √ Not applicable
4. Disposal of subsidiary
Whether there is single time disposal of the investment in the subsidiary, i.e. loss of control
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
Whether there is the situation that the investment in subsidiaries is disposed step by step through multiple transactions and the control right is lost in the currentperiod.
□ Applicable √ Not applicable
5. Change of consolidation scope for other reasons
Explanation for changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries, and liquidation of subsidiaries) andrelevant information:
√Applicable □ Not applicable
Shandong Hi-Speed Rail Transit Group Co., Ltd., as the company's subsidiary transferred 35% of shares of Shandong High Speed New Material Technology Co.,Ltd. free of charge in March 2020, upon lost of control, it was not included in the scope of consolidation.The Company completed the capital reduction of Jinan Changying Jin'an Investment Partnership (Limited Partnership) in June 2020, upon lost of control, it was notincluded in the scope of consolidation.
6. Miscellaneous
□ Applicable √ Not applicable
IX. Equity in other subjects
1. Equity in subsidiary
(1). Composition of enterprise
√Applicable □ Not applicable
| Name of Subsidiary | Principal Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Acquisition Method | |
| Direct | Indirect | |||||
| Shandong Hi-Speed Investment Development Co., Ltd. | Shandong | Shandong | Investment and development | 100 | Investment and establishment | |
| Shandong Hi-speed Environmental Technology Co., Ltd. | Shandong | Shandong | Environmental protection industry | 60.01 | Investment and establishment | |
| Shandong Hi-Speed Zhangqiu Property Development Co., Ltd. | Shandong | Shandong | Investment and development | 60 | Investment and establishment | |
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Guangdong | Guangdong | Investment platform | 100 | Investment and establishment | |
| Yantai Hesheng Real Estate Development Co., Ltd. | Shandong | Shandong | Investment and development | 100 | Business combination not under common control | |
| Shandong Hi-Speed Industrial Development Co., Ltd. | Shandong | Shandong | Property management | 60 | Investment and establishment | |
| Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | Shandong | Shandong | Highway management | 65 | Business combination under same control | |
| Shandong Hi-Speed Henan Development Co., Ltd. | Henan | Henan | Investment and development | 60 | Investment and establishment | |
| Shandong Hi-Speed Henan Xuyu Highway Co., Ltd. | Henan | Henan | Highway management | 60 | Investment and establishment | |
| Jiyuan City Jijin Expressway Co., Ltd. | Henan | Henan | Highway management | 54 | Business combination not under common control | |
| Hunan Hengshao Expressway Co., Ltd. | Hunan | Hunan | Highway management | 70 | Business combination not under common control | |
| Shandong Hi-Speed Hunan Development Co., Ltd. | Hunan | Hunan | Investment and development | 100 | Investment and establishment | |
| Shandong Hi-Speed Qilu Construction Transport Administration Service Co., Ltd. | Shandong | Shandong | Agency service | 100 | Business combination under same control | |
| Hubei Wujing Expressway Development Co., Ltd | Hubei | Hubei | Highway management | 60 | Business combination under same control | |
| Jinan Changying Jincheng Equity Investment Partnership (limited partnership) | Shandong | Shandong | Equity investment | 99.99 | Investment and establishment | |
| Jinan Changying Jinhai Investment Partnership (Limited Partnership) | Shandong | Shandong | Equity investment | 100 | Investment and establishment | |
| Jinan Jinming Investment Partnership (Limited Partnership) | Shandong | Shandong | Equity investment | 100 | Investment and establishment | |
| Shenzhen Lupeng Investment Partnership (limited partnership) | Guangdong | Guangdong | Investment business | 100 | Investment and establishment |
| Qingdao Changying Jinpeng Equity Investment Partnership (Limited Partnership) | Shandong | Shandong | Investment business | 30.75 | 69.18 | Investment and establishment |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | Shandong | Shandong | Railway transport | 51 | Business combination under same control | |
| Shandong High Speed Railway Construction Equipment Co., Ltd. | Weifang | Weifang | Cement products manufacturing | 17.85 | Business combination under same control | |
| Shandong Dalailong Railway Co., Ltd. | Jinan | Jinan | Railway freight transport | 41.01 | Business combination under same control | |
| Shandong Ruitong Logistics Co., Ltd. | Jinan | Jinan | Loading and unloading | 51.00 | Business combination under same control | |
| Shandong Ruiyuan Logistics Co., Ltd. | Rizhao | Rizhao | Loading and unloading | 33.15 | Business combination under same control | |
| Shandong Shouping Railway Co., Ltd. | Shouguang | Shouguang | Railway freight transport | 30.49 | Business combination under same control | |
| Shandong Zhonglan Railway Operation Co., Ltd. | Rizhao | Rizhao | Railway transport | 26.01 | Business combination under same control | |
| Bohai trust ? No.01 collective fund trust plan of CGI 2019 | Trust plan | 31.03 | Investment and establishment |
Equipment Co., Ltd., so it is included in the scope of consolidation based on actual control.
For the important structured entities included in the consolidation scope, the control basis is as follows:
The Company and Agricultural Bank of China Co., Ltd., as the principals, set up "Bohai Trust ?No.01 collective fund trust plan of CGI 2019" and the trustee is Bohai International Trust Co., Ltd. Thereare 4 members of the investment decision-making committee of the trust plan, 3 of whom are appointedby the company to control the trust plan.
Basis for determining whether the company is an agent or the principal:
None.
Other instructions:
None.
(2). Key non-wholly-owned subsidiaries
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Name of Subsidiary | Shareholding Ratio of Minority Shareholders (%) | Profits and Losses Attributed to Minority Shareholders in the Current Period | Dividends Distributed to Minority Shareholders in the Current Period | Balance of Minority Shareholders' Interests at the End of the Period |
| Shandong Hi-Speed Henan Development Co., Ltd. | 40 | 14,239,780.16 | 17,300,000.00 | 265,618,194.11 |
| Shandong Hi-Speed Zhangqiu Property Development Co., Ltd. | 40 | 10,546,655.13 | 362,155,565.35 | |
| Hunan Hengshao Expressway Co., Ltd. | 30 | -29,029,933.35 | -166,259,474.20 | |
| Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | 35 | -397,886.15 | 49,031,648.23 | |
| Jiyuan City Jijin Expressway Co., Ltd. | 10 | -2,784,421.33 | 16,776,671.04 | |
| Hubei Wujing Expressway Development Co., Ltd | 40 | -19,001,770.72 | 597,830,178.99 |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | 49 | 256,042,929.99 | 484,000,000.00 | 1,753,020,357.27 |
(3). Main financial information of key non-wholly-owned subsidiaries
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Name of Subsidiary | Ending balance | Beginning balance | ||||||||||
| Current Assets | Non-current Assets | Total Assets | Current Liabilities | Non-current Liabilities | Total liabilities | Current Assets | Non-current Assets | Total Assets | Current Liabilities | Non-current Liabilities | Total liabilities | |
| Shandong Hi-Speed Henan Development Co., Ltd. | 833,918,808.80 | 963,473,821.94 | 1,797,392,630.74 | 740,347,145.47 | 393,000,000.00 | 1,133,347,145.47 | 898,212,310.29 | 946,956,056.22 | 1,845,168,366.51 | 776,422,331.65 | 423,000,000.00 | 1,199,422,331.65 |
| Shandong Hi-Speed Zhangqiu Property Development Co., Ltd. | 987,138,661.93 | 168,487,692.60 | 1,155,626,354.53 | 248,665,114.12 | 1,572,327.04 | 250,237,441.16 | 990,595,751.99 | 169,018,517.60 | 1,159,614,269.59 | 279,019,667.00 | 1,572,327.04 | 280,591,994.04 |
| Hunan Hengshao Expressway Co., Ltd. | 29,830,687.55 | 4,796,549,108.14 | 4,826,379,795.69 | 2,416,642,852.05 | 2,963,935,190.96 | 5,380,578,043.01 | 36,110,671.27 | 4,833,407,111.59 | 4,869,517,782.86 | 2,360,817,263.67 | 2,966,132,322.00 | 5,326,949,585.67 |
| Shandong Lijin | 65,976,895.13 | 99,152,033.51 | 165,128,928.64 | -1,007,304. | 26,045,809.30 | 25,038,505.13 | 75,618,213.06 | 80,474,189.51 | 156,092,402.57 | 3,059,352.19 | 11,805,809.30 | 14,865,161.49 |
| Huanghe Highway and Bridge Co., Ltd. | 17 | |||||||||||
| Jiyuan City Jijin Expressway Co., Ltd. | 618,237,985.30 | 760,787,356.00 | 1,379,025,341.30 | 862,526,864.14 | 348,731,766.78 | 1,211,258,630.92 | 608,883,602.88 | 768,880,243.68 | 1,377,763,846.56 | 806,726,170.37 | 375,426,752.48 | 1,182,152,922.85 |
| Hubei Wujing Expressway Development Co., Ltd | 121,660,223.98 | 6,781,805,823.07 | 6,903,466,047.05 | 80,703,806.61 | 5,328,186,792.97 | 5,408,890,599.58 | 69,082,213.21 | 6,872,326,628.43 | 6,941,408,841.64 | 512,392,174.40 | 4,886,936,792.97 | 5,399,328,967.37 |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | 3,282,539,004.31 | 2,927,972,764.47 | 6,210,511,768.78 | 2,479,017,197.89 | 153,902,005.04 | 2,632,919,202.93 | 2,156,082,312.85 | 1,846,249,545.30 | 4,002,331,858.15 | 1,426,601,563.32 | 152,971,235.50 | 1,579,572,798.82 |
| Name of Subsidiary | Amount incurred in current period | Amount incurred in previous period | ||||||
| Revenue | Net Profits | Total Comprehensive Income | Cash Flow from Operating Activities | Revenue | Net Profits | Total Comprehensive Income | Cash Flow from Operating Activities | |
| Shandong | 35,599,450.41 | 35,599,450.41 | -11,704,376.40 | 17,573,745.70 | 17,573,745.70 | 24,026,802.07 | ||
| Hi-Speed Henan Development Co., Ltd. | ||||||||
| Shandong Hi-Speed Zhangqiu Property Development Co., Ltd. | 2,568,626.45 | 26,366,637.82 | 26,366,637.82 | 395,114,531.59 | 1,675,733.36 | 29,020,563.90 | 29,050,563.90 | -55,159,277.04 |
| Hunan Hengshao Expressway Co., Ltd. | 55,518,580.76 | -96,766,444.51 | -96,766,444.51 | 28,632,758.39 | 110,860,778.61 | -54,661,883.76 | -54,661,883.76 | -1,304,551,542.80 |
| Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | 8,302,461.91 | -1,136,817.57 | -1,136,817.57 | -40,454,331.90 | 36,302,614.29 | 20,535,201.26 | 20,535,201.26 | 1,282,337.33 |
| Jiyuan City Jijin Expressway Co., Ltd. | 36,620,803.08 | -27,844,213.33 | -27,844,213.33 | 21,658,438.00 | 148,900,803.49 | 72,486,988.66 | 72,486,988.66 | 65,821,310.96 |
| Hubei Wujing Expressway Development Co., Ltd | 203,813,158.70 | -47,504,426.80 | -47,504,426.80 | 114,261,091.35 | 496,160,022.83 | 187,693,554.04 | 187,693,554.04 | 454,472,631.25 |
| Shandong Hi- | 1,149,433,297.59 | 522,536,591.81 | 522,536,591.81 | 474,378,685.61 | 848,334,993.05 | 337,884,433.19 | 337,884,433.19 | 437,560,656.89 |
Speed RailTransitGroup Co.,Ltd.
Other instructions:
None.
(4). Major restrictions on the use of enterprise group assets and the settlement of enterprisegroup debts:
□ Applicable √ Not applicable
(5). Financial or other support provided to structured entities included in the consolidatedfinancial statements:
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
2. Transaction causing changes in the shareholder’s equity in the subsidiary, which did not causeloss of control over the subsidiary
√Applicable □ Not applicable
(1).
Explanation for changes in the shareholders' equity in the subsidiary
√Applicable □ Not applicable
Shandong Hi-Speed Industrial Development Co., Ltd., as the Company's subsidiary introduced a newshareholder, Yinfeng Property Management Co., Ltd. in the current reform, and the Company'sshareholding ratio was reduced from 100% to 60%.
(2).
Impact of transactions on minority shareholders' equity and owners' equity attributable tothe parent company
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Shandong Hi-Speed Industrial Development Co., Ltd. | |
| Purchase cost/disposal consideration | 22,300,000.00 |
| - Cash | 22,300,000.00 |
| - Fair value of non-cash assets | |
| Total purchase cost/disposal consideration | 22,300,000.00 |
| Minus: Share of net assets of subsidiaries calculated according to the proportion of equity acquired/disposed | 12,670,000.00 |
| Difference | 9,630,000.00 |
| Including: Adjustment of capital reserves | 9,630,000.00 |
| Adjustment of surplus reserve | |
| Adjustment of undistributed profits |
| Name of joint ventures or associated enterprises | Principal Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Accounting disposal method for investment in joint ventures or associated enterprises | |
| Direct | Indirect | |||||
| Weihai City Commercial Bank | Shandong | Shandong | Commercial bank | 13.96 | Equity method | |
| Shandong Hi-speed Logistics Group Co., Ltd. (hereinafter referred to as "Logistics Group") | Shandong | Shandong | Logistics management | 25 | Equity method | |
| Dongxing Securities Company, Ltd. | Beijing | Beijing | Securities company | 4.35 | Equity method | |
| Fujian Longma Environmental Sanitation Equipment Co., Ltd. | Fujian | Fujian | Environmental sanitation equipment | 4.97 | Equity method |
(3).
Major financial information of important associated enterprises
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Ending Balance/Amount Incurred in the Current Period | Opening balance/Amount Incurred in the Previous Period | |||
| Weihai Shanghang | Logistics Group | Weihai Shanghang | Logistics Group | |
| Current Assets | 40,209,105,727.71 | 3,239,154,683.97 | 35,252,587,849.94 | 2,546,773,171.63 |
| Including: Cash and cash equivalents | 21,017,220,993.81 | 1,409,815,861.47 | 21,203,835,612.72 | 440,278,098.82 |
| Non-current Assets | 209,071,848,930.37 | 2,898,019,577.15 | 189,224,538,017.42 | 2,352,417,423.74 |
| Total Assets | 249,280,954,658.08 | 6,137,174,261.12 | 224,477,125,867.36 | 4,899,190,595.37 |
| Current Liabilities | 200,785,921,987.17 | 2,653,259,024.78 | 175,130,195,960.05 | 1,230,877,721.79 |
| Non-current Liabilities | 29,632,797,436.56 | 463,603,582.97 | 31,116,402,774.55 | 825,376,333.13 |
| Total liabilities | 230,418,719,423.73 | 3,116,862,607.75 | 206,246,598,734.60 | 2,056,254,054.92 |
| Minority equity | 610,525,660.68 | 190,431,628.92 | 524,552,880.08 | 72,933,474.52 |
| Equity attributable to shareholders of parent company | 18,251,709,573.67 | 2,829,880,024.45 | 17,705,974,252.68 | 2,770,003,065.93 |
| Net assets shares counted based on shareholding ratio | 2,547,938,656.48 | 707,470,006.11 | 2,471,754,005.67 | 692,500,766.48 |
| Adjustment items | 188,052,081.96 | 2,453,252.93 | 187,700,346.47 | |
| - Goodwill | 84,054,761.12 | 84,054,761.12 | ||
| - Internally unrealized profits | ||||
| - Others | 103,997,320.84 | 2,453,252.93 | 103,645,585.35 | |
| Book value for equity investment of associated enterprises | 2,735,990,738.44 | 709,923,259.04 | 2,659,454,352.14 | 692,500,766.48 |
| Fair value of equity investment in associated enterprises with open bids | ||||
| Revenue | 5,170,699,990.61 | 1,716,829,242.32 | 5,236,962,519.06 | 1,164,231,353.39 |
| Net Profits | 768,237,311.58 | 45,006,829.25 | 745,083,087.64 | 14,956,588.94 |
| Discontinued operating net profit | ||||
| Other comprehensive income | 308,378,692.34 | |||
| Total Comprehensive Income | 1,076,616,003.92 | 45,006,829.25 | 738,002,249.05 | 14,956,588.94 |
| Dividends received from the associated enterprises during the current year | 69,395,798.70 |
| Ending Balance/Amount Incurred in the Current Period | Opening balance/Amount Incurred in the Previous Period | |
| Joint ventures: | ||
| Total book value of investments | 56,522,735.67 | 5,103,478.39 |
| Total amount of the following items calculated according to shareholding ratio | ||
| - Net profit | ||
| - Other comprehensive income | ||
| - Total comprehensive income | ||
| Associated enterprises: | ||
| Total book value of investments | 7,799,322,088.62 | 4,293,233,199.55 |
| Total amount of the following items calculated according to shareholding ratio | ||
| - Net profit | 113,791,058.31 | 7,173,434.55 |
| - Other comprehensive income | ||
| - Total comprehensive income | 113,791,058.31 | 7,173,434.55 |
None.
(5).
Explanation for significant restrictions on the ability of joint ventures or associatedenterprises to transfer funds to the Company.
□ Applicable √ Not applicable
(6).
Excess loss of joint ventures or associated enterprise
□ Applicable √ Not applicable
(7).
Unconfirmed commitments related to investment in joint venture
□ Applicable √ Not applicable
(8).
Contingent liabilities related to investment in joint ventures or associated enterprises
□ Applicable √ Not applicable
4. Important joint operation
□ Applicable √ Not applicable
5. Equity in structured entities not included in consolidated financial statementsExplanation for structured entities not included in the scope of consolidated financial statements:
□ Applicable √ Not applicable
6. Miscellaneous
□ Applicable √ Not applicable
X. Risks related to financial instruments
√Applicable □ Not applicable
The main financial instruments of the group include loans, receivables, payables, trading financialassets, trading financial liabilities, etc. see note VII for details of various financial instruments. The risksrelated to these financial instruments and the risk management policies adopted by the group to reducethese risks are as follows. The management level of the Group manages and monitors these exposures toensure that the above risks are within specified limits.
1. Various risk management objectives and policies
The objective of the Group in risk management is to achieve an appropriate balance between risksand returns, reduce the negative impact of risk on the Group's business performance to the lowest level,and maximize the interests of shareholders and other equity investors. Based on this risk managementobjective, the basic strategy of the Group's risk management is to determine and analyze all kinds of risksfaced by the Group, establish appropriate risk tolerance bottom line and carry out risk management, andsupervise all kinds of risks in a timely and reliable manner to control the risks within the limits.
（1） Market risk
1) Risk of exchange rate
The operating income and capital expenditure of the Group are settled in RMB, and the fluctuationof exchange rate has no significant impact on the Group's performance.
2) Risk of interest rate
The interest rate risk of the Group arises from interest bearing debts such as bank loans and bondspayables. Due to the financial liabilities with floating interest rates, the Company faces cash flow interestrate risks, while due to financial liabilities with fixed interest rates, the Company faces fair value interestrate risks. The Group determined the relative proportion between fixed interest rate and floating interestrate contracts according to the prevailing market environment. As of June 30, 2020, the total interest-bearing debt of the Group was 38,832,264,313.96 yuan.
The risk of changes of the Group in fair value of financial instruments due to changes in interestrates is mainly related to bank borrowings with fixed rate. The Group determines the proportion of fixedrate and floating rate financial instruments according to the market environment and maintains an
appropriate combination of financial instruments through regular review and monitoring.
The risk of changes of the Group in cash flow of financial instruments due to changes in interestrates is mainly related to bank borrowings with floating rate. The policy of the Group is to maintain thefloating interest rate of these borrowings to eliminate the fair value risk of interest rate changes.
（2） Credit risk
On June 30, 2020, the largest credit risk exposure that may cause financial loss of the Group is mainlyfrom the loss of the financial assets of the Group due to the non-performance of the other party of thecontract, including:
The book value of the recognized financial assets in the consolidated balance sheet; for financialinstruments measured at fair value, the book value reflects their risk exposure, but not the maximum riskexposure, which will change with the future fair value.
The working capital of the Group is deposited in banks with high credit rating, so the credit risk ofworking capital is relatively low.
In addition, for receivables, other receivables and notes receivable, the group has set relevant policiesto control credit risk exposure. The Group evaluates customers' credit qualification and sets thecorresponding credit period based on the customers' financial status, the possibility of obtaining theguarantee from a third party, credit records and other factors such as current market conditions. The Groupwill regularly check customers' credit records. For customers with poor credit records, the Group willsend the written form of letter for debt reminding, shorten or even cancel the credit period to ensure thatthe overall credit risks of the Group are under control.
（3） Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on thematurity date. The approach of the Group of liquidity risk management is to ensure that there is sufficientliquidity to meet the maturity liability without causing unacceptable loss or damage to the goodwill of theenterprise. The Group regularly analyzes the liability structure and term to ensure sufficient funds. Themanagement level of the Group monitors the use of bank borrowings and ensures compliance with theloan agreement. At the same time, the Group will negotiate with financial institution to maintain a certaincredit line and reduce liquidity risk.
XI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending fair value | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Recurring fair value measurement | ||||
| (I) Trading financial assets | 5,974,145,610.12 | 5,974,145,610.12 | ||
| 1. Financial assets measured at fair value with changes included in the current profits and losses | 5,974,145,610.12 | 5,974,145,610.12 | ||
| (1) Debt instrument investment | 974,145,610.12 | 974,145,610.12 | ||
| (2) Equity instrument investment | 5,000,000,000.00 | 5,000,000,000.00 | ||
| (3) Derivative financial assets | ||||
| 2. Financial assets measured at fair value with changes included in the current profits and losses | ||||
| (1) Debt instrument investment | ||||
| (2) Equity instrument investment | ||||
| (II) Other debt investment | ||||
| (III) Other equity instrument investment | 365,241,523.36 | 365,241,523.36 | ||
| (IV) Investment real estates | ||||
| 1. Land use rights for rent | ||||
| 2. Buildings for rent | ||||
| 3. Land-use rights held and intended to be transferred after appreciation | ||||
| (V) Biological assets | ||||
| 1. Consumptive biological assets | ||||
| 2. Productive biological assets | ||||
| Total assets continuously measured at fair value | 6,339,387,133.48 | 6,339,387,133.48 | ||
| (VI) Trading financial liabilities | ||||
| 1. Financial liabilities measured at fair value with changes included in the current profits and losses | ||||
| Including: Trading bonds issued | ||||
| Derivative financial liabilities | ||||
| Others | ||||
| 2. Financial liabilities measured at fair value with changes included in the current profits and losses | ||||
| Total liabilities continuously measured at fair value | ||||
| II. Non-recurring fair value measurement | ||||
| (I) Assets held for sale | ||||
| Total assets not continuously measured at fair value | ||||
| Total liabilities not continuously measured at fair value |
7. Valuation technology changes and reasons in the current period
□ Applicable √ Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable √ Not applicable
9. Others
□ Applicable √ Not applicable
XII. Affiliates and affiliate transaction
1. Situation of the parent company of this enterprise
√Applicable □ Not applicable
Unit: Ten thousand yuan Currency: RMB
| Name of the Parent Company | Registered Place | Nature of Business | Registered Capital | Shareholding Ratio of Parent Company to the Enterprise (%) | Voting Right Ratio of Parent Company to the Enterprise (%) |
| Shandong Hi-Speed Group Co., Ltd. | Jinan | Toll road construction and management | 2,333,833.56 | 70.91 | 70.91 |
| Name of joint ventures and associated enterprises | Relationship with the enterprise |
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | Joint ventures |
| Shandong Hi-Speed Engineering Consulting Co., Ltd. | Associated enterprises |
| Shandong High-Speed Logistics Group Co., Ltd. | Associated enterprises |
| Weihai City Commercial Bank | Associated enterprises |
| Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | Associated enterprises |
| Jinan Puyuan Property Co., Ltd. | Associated enterprises |
| Shandong Hi-Speed Jinan Investment Co., Ltd. | Associated enterprises |
| Shandong Lingang Shugang Rail Transit Co., Ltd. | Associated enterprises |
| Shandong High-Speed (Henan) Maintenance Technology Co., Ltd. | Associated enterprises |
| Name of other affiliates | Relations of other affiliates with the enterprise |
| Shandong Road and Bridge Group Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Hubei Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-speed Architectural Design Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-speed Longqing Expressway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Sanyi Engineering Construction Supervision Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Road Development Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Luqiao Construction Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Service Area Management Co., Ltd. | Under the same control of parent company together with the Company |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed International Tourism Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Technology Development Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Standard Container Logistics Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Road & Bridge Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Highway & Bridge Construction Co., Ltd. | Controlling subsidiary of the parent company |
| Jiqing Hi-Speed Railway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Xinwei Information Technology Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Real Estate Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Property Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Construction Materials Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Bioengineering Co., Ltd. | Wholly owned subsidiary of the parent company |
| Yunnan Suomeng Expressway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Rural Economic Development Investment Company | Wholly owned subsidiary of the parent company |
| Shandong Hi-speed Culture Media Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Niluo Investment Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Weiri Highway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Xinlian Payment Co., Ltd. | Wholly owned subsidiary of the parent company |
| Qilu Construction Group Industrial Development Company | Under the same control of parent company together with the Company |
| Shandong Hi-Speed Property Management Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Expressway Service Area Promotion Construction Engineering Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Jiaoan Science and Technology Development Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Yunnan Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Honglin Engineering Technology Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Investment Holding Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Xinlian Technology Co., Ltd. | Controlling subsidiary of the parent company |
| Jining Hongxiang Highway Survey and Design Institute Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Gaoguang Highway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Taidong Highway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Juanhe Expressway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Materials Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Construction Management Group Co., Ltd | Wholly owned subsidiary of the parent company |
| Shandong Hi-speed Xinbo Information Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Resource Development Management Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shanghai Zhida Technology (Group) Co., Ltd. | Parent company of minority shareholders of the subsidiary |
| Jinan Shengbang Real Estate Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Binzhou Property Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Light Industry Investment Fund Management Co., Ltd. | Controlling subsidiary of the parent company |
| Laizhou City Beilai Highway Investment Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong High-Speed Logistics Group Co., Ltd. | Controlling subsidiary of the parent company |
| Weihai City Commercial Bank | Controlling subsidiary of the parent company |
| Hubei Fanwei Expressway Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Hubei Wuma Expressway Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Juanhe Expressway Co., Ltd. | Wholly owned subsidiary of the parent company |
| Wuhan Jincheng Xingfa Real Estate Co., Ltd. | Controlling subsidiary of the parent company |
| Jinan Huibo Real Estate Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Railway Investment Holding Group Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong High-Speed Aowei Junshan Automobile Supply Chain Management Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed Group Sichuan Leyi Highway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong High-Speed Manyi Logistics Technology Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong High-Speed (Henan) Maintenance Technology Co., Ltd. | Controlling subsidiary of the parent company |
| Lunan High-speed Railway Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Railway Development Fund Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Controlling subsidiary of the parent company |
| Shandong Railway Development Fund Co., Ltd. | Controlling subsidiary of the parent company |
| Jiqing Hi-Speed Railway Co., Ltd. | Controlling subsidiary of the parent company |
| Affiliates | Content of Affiliate Transaction | Amount incurred in current period | Amount incurred in previous period |
| Shandong Hi-Speed Road & Bridge Maintenance Co., | Reconstruction and general maintenance of | 30,682,259.20 | 14,024,828.09 |
| Ltd. | road products and auxiliary facilities | ||
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Rendering of service | 50,000.00 | 218,088.50 |
| Shandong Highway & Bridge Construction Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 157,729,666.42 | 248,080,906.05 |
| Shandong Hi-Speed Road & Bridge Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 16,960,172.90 | |
| Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | Purchase of goods | 480,800.00 | |
| Shandong Hi-Speed Group Co., Ltd. | Collection of ETC advance deposit | 856,003.05 | 15,978.50 |
| Shandong Hi-Speed Road Development Co., Ltd. | Advertising expense | 865,056.56 | |
| Shandong Hi-Speed Service Area Management Co., Ltd. | Comprehensive service fee, house rental fee | 1,400,208.58 | |
| Shandong Expressway Service Area Promotion Construction Engineering Co., Ltd. | Advance project payment | 43,713,537.18 | |
| Shandong Hi-Speed Engineering Consulting Co., Ltd. | Supervision fee | 3,213,747.76 | |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Project funds | 92,725,968.86 | |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Information engineering services | 239,520.20 | 127,800.00 |
| Shandong Road and Bridge Group Co., Ltd. | Engineering costs and material costs, etc. | 136,791,498.20 | 582,944,532.29 |
| Shandong Hi-Speed Property Management Co., Ltd. | Property management | 738,257.03 | 480,306.74 |
| Shandong Hi-Speed Qingdao Property Management Co., Ltd. | Shuttle bus cost | 66,582.00 | |
| Shandong Hi-Speed International Tourism Co., Ltd. | Receive Labor service | 87,768.00 | |
| Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | Multi-purpose passenger vehicle | 284,100.00 | |
| Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | Vehicle purchase | 1,030,315.60 |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Materials purchase | 745,270.00 |
| Affiliates | Content of Affiliate Transaction | Amount incurred in current period | Amount incurred in previous period |
| Jiqing Hi-Speed Railway Co., Ltd. | Rental and property fees | 108,973.26 | |
| Shandong Hi-Speed Real Estate Group Co., Ltd. | Comprehensive service fee | 13,904.72 | |
| Shandong Hi-Speed Service Area Management Co., Ltd. | Service area rental | 238,095.24 | |
| Shandong Expressway Service Area Promotion Construction Engineering Co., Ltd. | Property management fee | 50,287.18 | |
| Shandong Hi-speed Architectural Design Co., Ltd. | Rental and property fees | 1,168,459.73 | |
| Shandong Hi-Speed Jiaoan Science and Technology Development Co., Ltd. | Rental and property fee | 63,186.17 | |
| Shandong Hi-Speed Technology Development Group Co., Ltd. | Rental and property fees | 136,736.84 | |
| Shandong Hi-Speed Niluo Investment Development Co., Ltd. | Sale of goods, rental and property fee, etc. | 664,143.91 | 501,836.92 |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | House rental, sale of goods | 4,814,736.73 | 344,971.21 |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Sale of goods, rental and property fee, etc. | 796,990.98 | 4,898,450.63 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Information engineering services | 4,669,247.79 | 638,603.16 |
| Shandong Road and Bridge Group Co., Ltd. | Steel trade, etc. | 14,294,033.71 | 3,871,354.48 |
| Shandong Highway & Bridge Construction Co., Ltd. | Sale of goods | 2,108,133.44 | |
| Shandong Hi-Speed Materials Group Co., Ltd. | Sale of goods | 5,236,181.50 | |
| Shandong Hi-Speed Luqiao Construction Co., Ltd. | Sale of goods | 386,850.16 | |
| Jining Hongxiang Highway Survey and Design Institute Co., Ltd. | Sales of goods and comprehensive services | 894,637.14 |
| Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | Sales of goods and comprehensive services | 146,815.20 | |
| Jinan Puyuan Property Co., Ltd. | Interest income | 50,136,986.29 | |
| Shandong Hi-Speed Xicheng Property Co., Ltd. | Interest income | 36,633,187.48 | |
| Lunan High-speed Railway Co., Ltd. | Sale of goods | 202,019,362.87 | |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Sale of goods | 10,693.27 | |
| Shandong Hi-Speed Luqiao Group Co., Ltd. | Sale of goods | 115,557.52 | |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Sale of goods | 8,463.35 | |
| Shandong Road and Bridge Group Co., Ltd. | Sale of goods | 172.70 |
| Name of principal/subcontractor | Name of entrusted party/contractor | Type of entrusted/contracted assets | Start date of entrustment/contract | Termination date of entrustment/contract | Pricing basis of custody income/contract income | Trust income/contract income recognized in the current period |
| Shandong Hi-Speed Group Co., Ltd. | Shandong Hi-speed Company Limited | Custody of other assets | January 1, 2018 | December 31, 2020 | Agreement | 115,882,750.00 |
| Shandong Hi-Speed Road Development Co., Ltd. | Shandong Hi-speed Company Limited | Custody of other assets | January 1, 2018 | December 31, 2020 | Agreement | 55,447,000.00 |
| Shandong Hi-Speed Weiri Highway Co., Ltd. | Shandong Hi-speed Company Limited | Custody of other assets | January 1, 2018 | December 31, 2020 | Agreement | 41,741,750.00 |
| Shandong Hi-speed Longqing Expressway Co., Ltd. | Shandong Hi-speed Company Limited | Custody of other assets | January 1, 2018 | December 31, 2020 | Agreement | 18,340,200.00 |
| Shandong Hi-Speed Gaoguang Highway Co., Ltd. | Shandong Hi-speed Company Limited | Custody of other assets | November 30, 2019 | December 31, 2020 | Agreement | 28,612,450.00 |
| Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd. | Shandong Hi-speed Company Limited | Custody of other assets | November 30, 2019 | December 31, 2020 | Agreement | 7,777,450.00 |
| Shandong Hi-Speed Taidong Highway Co., Ltd. | Shandong Hi-speed Company Limited | Custody of other assets | July 1, 2019 | December 31, 2020 | Agreement | 41,230,800.00 |
| Shandong Juanhe Expressway Co., Ltd. (operation) | Shandong Hi-speed Company Limited | Custody of other assets | January 1, 2019 | December 31, 2020 | Agreement | 12,270,950.00 |
(3).
Description of related leaseWith the Company as lessor:
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Name of lessee | Types of leased assets | Rental income recognized in the current period | Rental income recognized in the previous period |
| Shandong Hi-Speed Service Area Management Co., Ltd. | Management and leasing of Guodian parking area in Xuyu road | 238,095.24 | 238,095.24 |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Leasing of gas stations along Jinan-Laiwu Expressway | 7,151,743.41 | 3,809,525.82 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Leasing of communication pipes along the north line of Jinan-Qingdao Expressway | 638,603.16 | |
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | Office building in Olympic Middle Road | 585,522.48 | 186,231.42 |
| Shandong Hi-speed Architectural Design Co., Ltd. | Office building in Olympic Middle Road | 782,030.82 | 782,030.82 |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Office building in Olympic Middle Road | 796,990.98 | 796,990.98 |
| Shandong Hi-Speed Niluo Investment Development Co., Ltd. | Office building in Olympic Middle Road | 664,143.91 | 355,722.30 |
| Jiqing Hi-Speed Railway Co., Ltd. | Office building in Olympic Middle Road | 96,788.83 | |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Yanshan real estate | 709,186.47 | |
| Jinan Branch of Jining Hongxiang Highway Survey and Design Institute Co., Ltd. | Office building in Olympic Middle Road | 894,637.14 |
| Name of lessor | Types of leased assets | Rental income recognized in the current period | Rental fee recognized in the previous period |
| Wuhan Jincheng Xingfa Real Estate Co., Ltd. | Boshihui office building | 1,501,405.20 | 3,706,842.09 |
| Shandong Hi-Speed Service Area Management Co., Ltd. | Office building along Jinan-Qingdao Expressway | 291,699.92 | |
| Shandong Hi-Speed Service Area Management Co., Ltd. | Public facilities | 1,108,512.22 |
| Guaranteed Party | Guarantee Amount | Starting Date of Guarantee | Due Date of Guarantee | Whether the Guarantee Has Been Fulfilled or Not |
| Shandong Hi-Speed New Material Technology Co., Ltd. | 142,500,000.00 | July 31, 2018 | June 30, 2023 | Yes |
| Guarantor | Guarantee Amount | Starting Date of Guarantee | Due Date of Guarantee | Guarantee fulfilled or not |
| Shandong Hi-Speed Group Co., Ltd. | 521,000,000.00 | January 23, 2007 | January 22, 2026 | No |
| Shandong Hi-Speed Group Co., Ltd. | 10,000,000.00 | July 8, 2010 | January 22, 2026 | No |
| Shandong Hi-Speed Group Co., Ltd. | 8,000,000.00 | July 21, 2010 | January 22, 2026 | No |
| Shandong Hi-Speed Group Co., Ltd. | 500,000,000.00 | November 29, 2019 | November 28, 2039 | No |
(7).
Remuneration of key management personnel
□ Applicable √ Not applicable
(8).
Other related transactions
□ Applicable √ Not applicable
6. Receivables and payables of affiliates
(1). Accounts receivable
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Project Name | Affiliates | Ending balance | Beginning balance | ||
| Book balance | Bad debt reserves | Book balance | Bad debt reserves | ||
| Accounts receivable | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 20,047.50 | 20,047.50 | ||
| Accounts receivable | Shandong Hi-Speed Xinwei Information Technology Co., Ltd. | 178,500.00 | 178,500.00 | ||
| Accounts receivable | Shandong Road and Bridge Group Co., Ltd. | 32,076,972.57 | 4,515,261.32 | ||
| Accounts receivable | Shandong Hi-speed Xinbo Information Co., Ltd. | 614,285.72 | 614,285.72 | ||
| Accounts receivable | Shandong Hi-Speed Information Engineering Co., Ltd. | 3,165,750.00 | |||
| Accounts receivable | Shandong Highway & Bridge Construction Co., Ltd. | 2,108,133.44 | |||
| Accounts receivable | Shandong Hi-Speed Materials Group Co., Ltd. | 27,328,800.00 | |||
| Accounts receivable | Shandong Hi-Speed Qilu Construction Group Co., | 5,440,652.50 | |||
| Ltd. | |||||
| Accounts receivable | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 4,644.25 | |||
| Accounts receivable | Shandong Hi-Speed Jiaoan Science and Technology Development Co., Ltd. | 170.66 | |||
| Accounts receivable | Shandong Hi-speed Architectural Design Co., Ltd. | 842,323.39 | |||
| Accounts receivable | Shandong High-Speed Manyi Logistics Technology Co., Ltd. | 52,360.52 | |||
| Accounts receivable | Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | 372,188.44 | |||
| Accounts receivable | Shandong Hi-Speed Petrochemical Co., Ltd. | 1,010,221.59 | |||
| Accounts receivable | Jiqing Hi-Speed Railway Co., Ltd. | 1,841,007.05 | |||
| Accounts receivable | Shandong Hi-Speed New Material Technology Co., Ltd. | 98,070,881.46 | |||
| Accounts receivable | Lunan High-speed Railway Co., Ltd. | 111,774,786.60 | |||
| Other receivables | Shandong Hi-Speed Gaoguang Highway Co., Ltd. | 28,612,450.00 |
| Other receivables | Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd. | 7,777,450.00 | |||
| Other receivables | Shandong Hi-speed Longqing Expressway Co., Ltd. | 18,340,200.00 | |||
| Other receivables | Shandong Hi-Speed Taidong Highway Co., Ltd. | 41,230,800.00 | |||
| Other receivables | Shandong Hi-Speed Weiri Highway Co., Ltd. | 41,741,750.00 | |||
| Other receivables | Shanghai Zhida Technology (Group) Co., Ltd. | 56,581,703.19 | |||
| Other receivables | Shandong Hi-Speed Xicheng Property Co., Ltd. | 2,726,756,822.17 | 2,690,123,634.69 | ||
| Other receivables | Jinan Puyuan Property Co., Ltd. | 563,750,126.73 | 1,107,671,674.63 | ||
| Other receivables | Shandong Hi-Speed Group Co., Ltd. | 118,929,148.37 | 1,776,835.24 | ||
| Other receivables | Shandong Hi-Speed Information Engineering Co., Ltd. | 527,625.00 | |||
| Other receivables | Shandong Hi-Speed Road & Bridge Co., Ltd. | 380,000.00 | |||
| Other receivables | Shandong Hi-Speed Service Area Management Co., Ltd. | 558,256.13 | 339,850.33 | ||
| Other receivables | Shandong Hi-Speed Road & Bridge | 35,354,447.98 | 3,866,463.41 |
| Maintenance Co., Ltd. | |||||
| Other receivables | Shandong Hi-Speed Petrochemical Co., Ltd. | 15,414.00 | 60,758.10 | ||
| Other receivables | Shandong Hi-Speed Property Management Co., Ltd. | 3,450.00 | 4,950.00 | ||
| Other receivables | Shandong Hi-Speed Standard Container Logistics Co., Ltd. | 14,101.00 | |||
| Other receivables | Yunnan Suomeng Expressway Co., Ltd. | 100,721.00 | |||
| Other receivables | Shandong Road and Bridge Group Co., Ltd. | 5,376,759.94 | 1,481,382.72 | ||
| Other receivables | Shandong Hi-Speed Road Development Co., Ltd. | 56,926,680.52 | |||
| Other receivables | Shandong Hi-Speed Hubei Development Co., Ltd. | 51,472.53 | 144,347.36 | ||
| Other receivables | Shandong Juanhe Expressway Co., Ltd. | 10,034,275.00 | |||
| Other receivables | Shandong Luqiao Construction Co., Ltd. | 4,971,797.68 | 200,000.00 | ||
| Other receivables | Shandong Hi-Speed Light Industry Investment Fund Management Co., Ltd. | 303,244.48 | 237,284.48 | ||
| Other receivables | Shandong Hi-speed Architectural | 69,112.22 |
| Design Co., Ltd. | |||||
| Other receivables | Laizhou City Beilai Highway Investment Co., Ltd. | 1,201.83 | |||
| Other receivables | Shandong High-Speed Logistics Group Co., Ltd. | 38,280.00 | 3,107.00 | ||
| Other receivables | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 37,944,711.65 | 6,676.02 | ||
| Other receivables | Shandong High-Speed (Henan) Maintenance Technology Co., Ltd. | 111,100.89 | |||
| Other receivables | Shandong Highway & Bridge Construction Co., Ltd. | 6,849,690.00 | |||
| Other receivables | Shandong Hi-Speed Property Development Co., Ltd. | 48,254.00 | |||
| Other receivables | Shandong Hi-Speed Xinlian Technology Co., Ltd. | 60,000.00 | |||
| Other receivables | Hubei Fanwei Expressway Development Co., Ltd. | 59,313.91 | |||
| Other receivables | Shandong Hi-Speed Yunnan Development Co., Ltd. | 58,940.58 | |||
| Other receivables | Shandong Railway Investment Holding Group Co., Ltd. | 43,653,400.00 | |||
| Other receivables | Shandong Hi-Speed New Material | 131,568.68 |
| Technology Co., Ltd. | |||||
| Other receivables | Jiqing Hi-Speed Railway Co., Ltd. | 35,281.78 | |||
| Other receivables | Lunan High-speed Railway Co., Ltd. | 6,848,456.40 | |||
| Prepayment | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 2,930,078.06 | |||
| Prepayment | Shandong Hi-Speed Information Engineering Co., Ltd. | 9,670,588.73 | 7,914,863.26 | ||
| Prepayment | Shandong Road and Bridge Group Co., Ltd. | 589,674,013.98 | 591,207,604.85 | ||
| Prepayment | Shandong Expressway Service Area Promotion Construction Engineering Co., Ltd. | 27,991,971.55 | 27,991,971.55 | ||
| Prepayment | Shandong Highway & Bridge Construction Co., Ltd. | 342,108,604.40 | |||
| Prepayment | Shandong Hi-Speed Engineering Consulting Co., Ltd. | 47,874.00 | |||
| Prepayment | Shandong Hi-Speed Qilu Construction Group Co., Ltd. | 10,633,941.78 | |||
| Advanced payment | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 3,853.00 | 7,330.00 | ||
| Advanced | Shandong Hi-Speed Property | 32,220.00 |
| payment | Management Co., Ltd. | ||||
| Notes receivable | Shandong Road and Bridge Group Co., Ltd. | 31,034,788.40 | 54,564,808.00 | ||
| Notes receivable | Shandong Hi-Speed Construction Materials Co., Ltd. | 4,000,000.00 | |||
| Notes receivable | Shandong Hi-Speed Group Sichuan Leyi Highway Co., Ltd. | 3,725,000.00 | |||
| Current account deposit | Weihai City Commercial Bank | 351,240,744.17 | 826,837,494.86 |
| Project Name | Affiliates | Ending book balance | Beginning book balance |
| Accounts payable | Jining Hongxiang Highway Survey and Design Institute Co., Ltd. | 177,600.00 | |
| Accounts payable | Shandong Hi-Speed Group Co., Ltd. | 120,045.87 | |
| Accounts payable | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 64,557,477.68 | 107,411,421.36 |
| Accounts payable | Shandong Road and Bridge Group Co., Ltd. | 185,107,725.08 | 502,323,903.37 |
| Accounts payable | Shandong Highway & Bridge Construction Co., Ltd. | 7,441,171.12 | 66,899,711.07 |
| Accounts payable | Shandong Hi-Speed Information Engineering Co., Ltd. | 52,639,543.71 | 58,442,426.98 |
| Accounts payable | Shandong Luqiao Construction Co., Ltd. | 353,871.42 | 353,871.42 |
| Accounts payable | Shandong Hi-Speed Engineering Consulting Co., Ltd. | 10,989,445.87 | 24,138,502.27 |
| Accounts payable | Shandong Hi-Speed Service Area Management Co., Ltd. | 21,575.53 | 97,581.93 |
| Accounts payable | Shandong Hi-Speed Petrochemical Co., | 65,969.01 |
| Ltd. | |||
| Accounts payable | Shandong Hi-Speed Engineering Detection Co., Ltd. | 2,313,808.90 | 2,580,381.04 |
| Accounts payable | Shandong Hi-Speed Road & Bridge Co., Ltd. | 5,036,281.08 | 3,233,880.92 |
| Accounts payable | Shandong Hi-Speed Road Development Co., Ltd. | 88,073.39 | |
| Accounts payable | Shandong Hi-Speed Green Technology Development Co., Ltd. | 7,052.58 | |
| Accounts payable | Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | 106,435.00 | 106,435.00 |
| Accounts payable | Shandong Hi-Speed New Material Technology Co., Ltd. | 50,000.00 | |
| Accounts payable | Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | 8,523.00 | |
| Other payables | Shandong Hi-Speed Group Co., Ltd. | 1,638,198,303.95 | 338,300,697.77 |
| Other payables | Shandong Hi-Speed Service Area Management Co., Ltd. | 2,800,424.28 | 2,863,768.98 |
| Other payables | Shandong Hi-Speed Information Engineering Co., Ltd. | 20,814,995.11 | 21,035,678.09 |
| Other payables | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 10,964,828.83 | 69,149,425.90 |
| Other payables | Shandong Road and Bridge Group Co., Ltd. | 48,964,596.27 | 42,416,822.08 |
| Other payables | Shandong Hi-Speed Engineering Detection Co., Ltd. | 689,388.24 | 692,479.62 |
| Other payables | Shandong Hi-speed Culture Media Co., Ltd. | 100,000.00 | 100,000.00 |
| Other payables | Shandong Hi-speed Longqing Expressway Co., Ltd. | 2,308,043.57 | 626,682.81 |
| Other payables | Shandong Hi-Speed Engineering Consulting Co., Ltd. | 1,467,230.04 | 1,486,122.03 |
| Other payables | Shandong Luqiao Construction Co., Ltd. | 210,000.00 | 210,000.00 |
| Other payables | Shandong Hi-Speed Qilu Construction Group Co., Ltd. | 986,110.63 | 2,776,110.63 |
| Other payables | Shandong Hi-Speed International Tourism Co., Ltd. | 33,350.00 | |
| Other payables | Shandong Hi-Speed Standard Container Logistics Co., Ltd. | 6,000.00 | |
| Other payables | Shandong Sanyi Engineering Construction Supervision Co., Ltd. | 128,000.00 | 188,000.00 |
| Other payables | Electronic charge center of Shandong Hi-Speed Group Co., Ltd. | 76,710.00 | |
| Other payables | Shandong Highway & Bridge Construction Co., Ltd. | 801,006.77 | 1,812,815.21 |
| Other payables | Shanghai Zhida Technology (Group) Co., Ltd. | 31,500,000.00 | |
| Other payables | Shandong Hi-Speed Weiri Highway Co., Ltd. | 32,909,388.90 | 6,296,802.10 |
| Other payables | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 1,371,342.32 | 14,632,626.24 |
| Other payables | Shandong Environmental Protection Industry Co., Ltd. | 22,000.00 | |
| Other payables | Shandong Hi-Speed Property Management Co., Ltd. | 1,816.32 | |
| Other payables | Hubei Fanwei Expressway Development Co., Ltd. | 94,133.14 | |
| Other payables | Hubei Wuma Expressway Development Co., Ltd. | 29,250.00 | |
| Other payables | Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | 16,051,492.91 | |
| Other payables | Shandong Hi-Speed Gaoguang Highway Co., Ltd. | 3,633,778.50 | 737,932.00 |
| Other payables | Shandong Hi-Speed Road Development Co., Ltd. | 97,523,057.23 | 17,516,432.87 |
| Other payables | Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | 5,074.53 | 5,074.53 |
| Other payables | Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd. | 514,456.00 | 215,466.00 |
| Other payables | Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | 16,692.00 | 8,346.00 |
| Other payables | Shandong Hi-Speed Taidong Highway Co., Ltd. | 26,919,792.66 | 3,451,178.17 |
| Other payables | Shandong Honglin Engineering Technology Co., Ltd. | 200,000.00 | 5,000.00 |
| Other payables | Shandong Juanhe Expressway Co., Ltd. | 14,636,423.49 | 2,036,193.00 |
| Other payables | Shandong Hi-Speed Construction Materials Co., Ltd. | 4,000,000.00 | |
| Other payables | Shandong Lingang Shugang Rail Transit Co., Ltd. | 472,474,560.25 | |
| Other payables | Shandong Railway Investment Holding Group Co., Ltd. | 416,348,633.94 | 960,000,000.00 |
| Deposit received | Shandong Hi-Speed Information Engineering Co., Ltd. | 9,095,231.81 | 9,222,952.43 |
| Deposit received | Shandong Hi-Speed Service Area Management Co., Ltd. | 396,825.39 | 634,920.63 |
| Deposit received | Shandong Hi-Speed Technology Development Group Co., Ltd. | 943.40 | 943.40 |
| Deposit received | Shandong Hi-speed Architectural Design Co., Ltd. | 183,356.91 | 142,899.49 |
| Deposit received | Shandong Hi-Speed Petrochemical Co., Ltd. | 1,136,176.85 | 147,304.89 |
| Deposit received | Shandong Hi-Speed Niluo Investment Development Co., Ltd. | 521,827.33 | 37,013.85 |
| Deposit received | Jining Hongxiang Highway Survey and Design Institute Co., Ltd. | 304,712.77 | 146,337.84 |
| Deposit received | Shandong Hi-Speed Engineering Consulting Co., Ltd. | 849.06 | 849.06 |
| Deposit received | Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | 263,057.83 | 80,424.02 |
| Deposit received | Shandong Hi-Speed Jiaoan Science and Technology | 473.68 |
| Development Co., Ltd. | |||
| Deposit received | Shandong Hi-Speed Materials Group Co., Ltd. | 9,082,800.00 | |
| Deposit received | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 4,644.25 | |
| Deposit received | Shandong High-Speed Manyi Logistics Technology Co., Ltd. | 69,164.11 | |
| Deposit received | Shandong Road and Bridge Group Co., Ltd. | 18,704.77 | |
| Deposit received | Shandong Hi-Speed New Material Technology Co., Ltd. | 963,158.89 | |
| Notes payable | Shandong Highway & Bridge Construction Co., Ltd. | 66,200,000.00 | |
| Notes payable | Shandong Road and Bridge Group Co., Ltd. | 5,000,000.00 | |
| Dividends payable | Shandong Hi-Speed Group Co., Ltd. | 1,296,418,206.42 | |
| Interest payable | Weihai City Commercial Bank | 76,806,131.11 | |
| Long-term Loans | Weihai City Commercial Bank | 2,813,340,000.00 | 3,516,670,000.00 |
3. Cash-settled share-based payment
□ Applicable √ Not applicable
4. Modification and termination of share-based payment.
□ Applicable √ Not applicable
5. Others
□ Applicable √ Not applicable
XIV. Commitments and contingencies
1. Important commitments
□ Applicable √ Not applicable
2. Contingencies
(1).
Significant contingencies at the balance sheet date
□ Applicable √ Not applicable
(2).
If the company has no important contingencies to be disclosed, please explain:
□ Applicable √ Not applicable
3. Miscellaneous
□ Applicable √ Not applicable
XV. Events after balance sheet date
1. Important non-adjustment events
□ Applicable √ Not applicable
2. Distribution of profits
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Profit or dividend to be distributed | |
| Profits or dividends declared to be distributed after deliberation and approval | 1,828,243,025.66 |
□ Applicable √ Not applicable
3. Asset replacement
(1).
Non-monetary assets exchange
□ Applicable √ Not applicable
(2).
Exchange of other assets
□ Applicable √ Not applicable
4. Annuity plan
□ Applicable √ Not applicable
5. Termination of business
□ Applicable √ Not applicable
6. Information on segments
(1). Determination basis and accounting policy of report segment
√Applicable □ Not applicable
The reporting segment of the Group is a business unit that provides different products or services oroperates in different regions. As different businesses or regions need different technology and marketstrategies, the Group independently manages the production and operation activities of each reportingsegment and evaluates its operation results to decide to allocate resources and evaluate its performance.For the purpose of management, the Group divides five reporting segments according to service andproduct categories and the development of each business segment.The transfer price among segments is determined by referring to the price used for sales to the thirdparty.Assets are distributed according to the operation of the segment and the location of the asset.Liabilities are distributed according to the operation of the segment. Expenses indirectly attributable toeach segment are distributed among segments according to the proportion of income.
(2). Financial information of reporting segments
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Toll road and bridge business in Shandong | Toll road and bridge business in Henan | Toll road and bridge business in Hunan | Toll road and bridge business in Hubei | Railway transportation and logistics | Equipment manufacturing | Real estate development | Investment business | Others | Inter segment offset | Total |
| Revenue | 1,711,973,228.32 | 80,751,028.01 | 72,840,336.25 | 203,813,158.70 | 1,700,915,080.25 | 371,249,307.27 | 2,568,626.45 | 31,162,563.45 | 137,007,296.85 | 262,640,723.04 | 4,049,639,902.51 |
| Including: Income from external transactions | 1,711,973,228.32 | 80,751,028.01 | 72,840,336.25 | 203,813,158.70 | 1,479,882,537.63 | 371,249,307.27 | 2,568,626.45 | 31,162,563.45 | 95,399,116.43 | 4,049,639,902.51 | |
| Income from transaction between segments | 221,032,542.62 | 41,608,180.42 | 262,640,723.04 | ||||||||
| Operating cost | 1,380,067,349.12 | 69,695,687.79 | 50,365,765.87 | 129,444,873.89 | 1,302,615,828.33 | 221,847,576.25 | 347,763.20 | 20,882,792.44 | 124,007,590.30 | 251,294,853.71 | 3,047,980,373.48 |
| Interest income | 208,357,567.03 | 598,905.21 | 213,877.64 | 305,044.71 | 45,733,655.14 | 505,538.86 | 35,614,463.27 | 100,402,929.08 | 71,753,922.11 | 257,706,054.57 | 205,779,848.48 |
| Interest expense | 693,367,681.50 | 36,781,493.35 | 111,381,652.56 | 110,117,808.56 | 31,010,973.98 | 6,281,930.06 | 33,647,050.80 | 185,674,462.28 | 836,914,128.53 | ||
| Total profit | 652,924,358.90 | -34,372,066.59 | -96,763,434.67 | -47,504,426.80 | 526,990,471.12 | 69,850,828.69 | 35,155,517.10 | 399,420,178.39 | 21,340,181.77 | 1,035,699,896.14 | 491,341,711.77 |
| Total assets | 69,255,144,435.59 | 2,840,924,221.08 | 5,312,801,191.67 | 6,903,466,047.05 | 9,835,325,133.52 | 940,220,563.28 | 2,965,159,638.37 | 15,224,911,852.56 | 4,310,931,437.22 | 27,651,250,748.02 | 89,937,633,772.32 |
| Total liabilities | 44,410,116,440.66 | 1,825,068,207.97 | 5,654,977,075.41 | 5,408,890,599.58 | 5,186,829,139.06 | 402,679,402.69 | 2,349,876,412.90 | 3,958,047,580.50 | 754,321,247.24 | 13,269,223,570.45 | 56,681,582,535.56 |
| Supplementary information | |||||||||||
| Depreciation and amortization | 816,266,140.04 | 25,899,989.74 | 37,514,831.84 | 88,887,653.36 | 63,921,522.76 | 2,779,169.48 | 183,061.80 | 190,754.17 | 32,032,725.65 | 1,974,501.55 | 1,065,701,347.29 |
| Non cash expenses other than depreciation and amortization |
(3).
If the company has no report segments, or cannot disclose the total assets and totalliabilities of each report segment, the reasons shall be explained.
□ Applicable √ Not applicable
(4).
Other description
□ Applicable √ Not applicable
7. Other important transactions and matters affecting the decision-making of investors
√Applicable □ Not applicable
(1) According to the Maximum Amount Pledge Contract (2010 Shanda Road Zhizi No. 0011) andMaximum Amount Pledge Contract (0160200031-2015 Shanda (Zhi) Zi No.0037) signed by the Comapnywith Jinan Longao Branch of Industrial and Commercial Bank of China Limited (formerly known as JinanShanda Road Branch of Industrial and Commercial Bank of China Limited) on July 27, 2010 and October18, 2016, respectively, the Company takes the toll right of Jinan-Laiwu Section of Beijing-ShanghaiExpressway (auxiliary line) as the pledge, and the main creditor's right period of the pledge is from July27, 2010 to December 31, 2031 (including the starting date and expiration date of the period). During thepledge period, Jinan Longao Branch of Industrial and Commercial Bank of China Limited provided thecompany with a loan with a maximum balance of 2,766,624,000.00 yuan. The loan balance as of June 30,2020 was 1,604,159,492.49 yuan (including 212,102,734.46 yuan due within one year and1,392,056,758.03 yuan due over one year).
(2) According to the Maximum Amount Pledge Contract (0160200031-2018 Shanda Road Zhizi No.0017) signed between the Company and Jinan Longao Branch of Industrial and Commercial Bank ofChina Limited (formerly known as Jinan Shanda Road Branch of Industrial and Commercial Bank ofChina Limited) on November 16, 2018, the Company takes K166+351 to K106+351 sections of Qingdao-Yinchuan Expressway as the pledge, and the period of the main creditor's right period of the pledge isfrom November 13, 2018 to December 31, 2038 (including the starting date and expiration date of theperiod). During the pledge period, Jinan Longao Branch of Industrial and Commercial Bank of ChinaLimited provided the company with a loan with a maximum balance of 5,000,000,000.00 yuan, and theloan balance as of June 30, 2020 was 2,260,000,000.00 yuan.
(3) As of June 30, 2020, the Company pledged the road toll right of Jinan-Qingdao Expressway andall the proceeds after the completion of the reconstruction and expansion project of Jinan-QingdaoExpressway, and the mortgage loan balance of Shandong Branch of China Development Bank and JinanHeping Branch of Agricultural Bank of China Limited was 9,028,300,000.00 yuan, respectively:
The CNY Loan Contract No. 3710201701100000620 was signed with Shandong Branch of ChinaDevelopment Bank on December 15, 2017 with the toll collection right of K246 + 351 to K166 + 351sections of Jinan-Qingdao Expressway as the pledge and with the loan balance of 4,528,300,000.00 yuanas of June 30, 2020;
The Fixed Assets Loan Contract of Agricultural Bank of China Co., Ltd. numbered37010420170000175 was signed with Jinan Heping Branch of Agricultural Bank of China Co., Ltd onFebruary 16, 2017 with the toll collection right of K323 + 351to K322 + 237 sections of Jinan-Qingdao
Expressway as the pledge and the loan balance as of June 30, 2020 was 66,000,000.00 yuan; the FixedAssets Loan Contract of Agricultural Bank of China Limited numbered 37010420170000752 was signedwith Jinan Heping Branch of Agricultural Bank of China Limited on November 2, 2017 with the toll rightof K322 + 236 to K318 + 015 sections of Jinan-Qingdao Expressway as the pledge, and the loan balanceas of June 30, 2020 was 250,000,000.00 yuan; the Fixed Assets Loan Contract of Agricultural Bank ofChina Co., Ltd numbered 37010420170000773 was signed with Jinan Heping Branch of AgriculturalBank of China Co., Ltd on November 21, 2017 with the toll right of K318 + 014 to K315 + 650 sectionsof Jinan-Qingdao Expressway as the pledge and the loan balance as of June 30, 2020 was 140,000,000.00yuan.The Fixed Assets Loan Contract of Agricultural Bank of China Co., Ltd. numbered37010420180000047, 37010420180000050, 37010420180000113, 37100201500082936-7,37100201500082936-8, 37100201500082936-9, 37100201500082936-10. 37100201500082936-11,37100201500082936-12 was signed between the Company and Jinan Heping Branch of Agricultural Bankof China Co., Ltd on January 26, 2018, January 30, 2018, February 12, 2018, May 16, 2018, June 26, 2018,July 23, 2018, and September 5, 2018, September 17, 2018, and September 21, 2018, respectively, withthe toll collection right of K323 + 351 to K247+351 sections of Qingdao-Yinchuan Expressway as thepledge and the loan balance as of June 30, 2020 was 4,044,000,000.00 yuan.
(4) According to the Fixed Assets Loan Contract with No. of PSBC43-YYT2019053001 signed byHunan Hengshao and Changsha Branch of China Post Savings Bank Co., Ltd. on May 30, 2019, the loanamount is 2.989 billion yuan and the loan period is from May 30, 2019 to May 29, 2037. The loan interestrate shall be the benchmark interest rate of loan of the people's Bank of China for CNY with a term ofmore than five years applicable on the date of withdrawal. It is stated in the terms of the contract thatHunan Hengshao Company will provide pledge guarantee to the lender in the Maximum Right PledgeContract numbered PSBC43-ZY2019053001 with the charging right of Hengshao Expressway as thepledge. As of June 30, 2020, the long-term loan under the pledge contract has been paid off in 2019.According to the Fixed Assets Loan Contract with No. of PSBC43-YYT2019062201 signed byHunan Hengshao and Changsha Branch of China Post Savings Bank Co., Ltd. on June 22, 2019, the loanamount is 1.809 billion yuan and the loan period is from June 22, 2019 to June 21, 2037. The loan interestrate will be the fluctuating benchmark interest for CNY loan of the People's Bank of China with a term ofmore than five years applicable to the withdrawal date. On June 22, 2019, the Maximum Pledge Contractwith No. of PSBC43-ZY2019062201 signed with Changsha Branch of China Post Savings Bank Co., Ltd.with the charging right of Hengshao Expressway as the pledge. As of June 30, 2020, the long-term loanbalance of the loan contract is 1.783 billion yuan, of which the amount due within one year is 30 millionyuan, which has been reclassified into the non current liabilities due within one year.According to the Loan Contract with No. (430114001) NYJZ (2006) No. 005 signed by HunanHengshao and Hunan Branch of Agricultural Bank of China on September 25, 2006, the loan amount is
2.9 billion yuan, the actual loan is 1.87 billion yuan, the loan period is from September 30, 2006 to June30, 2037 and the loan interest rate is the benchmark interest rate subjecting to fluctuation published by the
People's Bank of China for the same period. On December 13, 2012, the Contract of Pledge of MaximumAmount of Rights numbered (430114001) with NYGZZ (2012) No. 8 was signed. As of June 30, 2020, thelong-term loan balance under the pledge contract was 1.179 billion yuan, of which the amount due withinone year is 14 million yuan, which has been reclassified to non current liabilities due within one year.
(5) According to the corporate mortgage contract with No. of ZH1900000035734 signed by HunanDevelopment and Changsha Branch of China Minsheng Bank Co., Ltd on March 25, 2019, the contractamount is 246 million yuan, the loan period is from March 26, 2019 to March 26, 2029, and the loaninterest rate is the benchmark loan interest rate published by the People's Bank of China and applicable tothe same period on the contract signing date. The mortgage list of the Company dated September 4, 2019is attached, with the real estate of No.1 building, Huachuang International Plaza: Rm 3601-6601, No. 109,Section 1, Furong Middle Road, Kaifu District, Changsha City as the mortgage . As of June 30, 2020, thelong-term loan balance under the pledge contract was 226 million yuan, of which the amount due withinone year is 20 million yuan, which has been reclassified to non current liabilities due within one year.
(6) Jiyuan Jijin Expressway Co., Ltd respectively signed the loan contract and pledge contract withJiyuan Branch of Industrial and Commercial Bank of China (hereinafter referred to as "Jiyuan Branch ofICBC"), Jiyuan Tiantan Road Branch of China Construction Bank (hereinafter referred to as "JiyuanTiantan Road Branch of China Construction bank") and Wulongkou Branch of Henan Jiyuan RuralCommercial Bank Co., Ltd. (hereinafter referred to as "Wulongkou Branch of Henan AgriculturalCommercial Bank") with the toll right of Jiyuan-Jincheng Expressway as the pledge. As of June 30, 2020,the long-term loan balance under the pledge contract was 385,000,000.00 yuan (including 57,000,000.00yuan due within one year and 328,000,000.00 yuan due over one year) as follows:
On April 30, 2009, CNY Capital Loan Contract numbered JJGG (2009) No. 001 and Right PledgeContract numbered JJGG (2009) No. 001-z01 was signed with Jiyuan Tiantan Road Branch of ChinaConstruction Bank; the loan balance was 41,000,000.00 yuan (including: 20,000,000.00 yuan due withinone year and 21,000,000.00 yuan due over one year);
On June 30, 2015, CNY Fixed Asset-supported Financing Loan Contract numbered JYZ (2015) No.0057 and Pledge Contract numbered ZZ (2015) No. 0057-1 was signed with Jiyuan Branch of Industrialand Commercial Bank of China; the loan balance was 290,000,000.00 yuan (including: 30,000,000.00yuan due within one year and 260,000,000.00 yuan due over one year);
On November 25, 2015, Loan Contract of Jiyuan Rural Commercial Bank Co., Ltd. numbered JNSJZ(2015) No. 0901002090 and Pledge Guarantee Contract of Jiyuan Rural Commercial Bank Co., Ltd.numbered JNSZZ (2015) No. 0901002092 was signed with Wulongkou Branch of Henan AgriculturalCommercial Bank, and the loan balance was 54,000,000.00 yuan (including: 7,000,000.00 yuan due withinone year and 47,000,000.00 yuan due over one year);
(7) According to the Fixed Asset-supported Financing Loan Contract (016020016-2016 (Shizhong)No. 00002) signed between Wujing Expressway and Jinan Shizhong Branch of Industrial and CommercialBank of China on January 4, 2016 and Jinan Shizhong Branch of Industrial and Commercial Bank ofChina provides fixed asset financing loan to Wujing Expressway and agrees to use the charge right and
all its income of the financing asset (Wuhan to Jingmen Section of Shanghai-Chengdu Expressway) as thepledge. As of June 30, 2020, the long-term loan balance under the pledge contract was 4,927,730,000.00yuan (including: 441,250,000.00 yuan due within one year and 4,486,480,000.00 yuan due over one year).
8. Others
□ Applicable √ Not applicable
XVII. Notes to the main items in the financial statements of the parent company
1. Accounts receivable
(1).
Disclosure by account receivable age
□ Applicable √ Not applicable
(2).
Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
(3).
Reserves for bad debts
□ Applicable √ Not applicable
In which, the amount of bad debt reserves recovered or reversed in the current period is important:
□ Applicable √ Not applicable
(4).
Notes receivable actually written off in the current period
□ Applicable √ Not applicable
(5).
Top five receivables of ending balance collected by debtors
□ Applicable √ Not applicable
(6).
Receivables derecognized due to transfer of financial assets
□ Applicable √ Not applicable
(7).
Amount of assets and liabilities formed by transfer of accounts receivable and continuousinvolvement
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
2. Other receivables
List of items
□ Applicable √ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividends receivable | 75,037,985.75 | |
| Other receivables | 6,391,760,130.04 | 4,489,749,765.83 |
| Total | 6,466,798,115.79 | 4,489,749,765.83 |
Interest receivable
(1). Classification of interest receivable
□ Applicable √ Not applicable
(2). Important overdue interest
□ Applicable √ Not applicable
(3). Provision for bad debts
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
Dividends receivable
(4). Dividends receivable
√ Applicable □ N/A
| Project (or invested entity) | Ending balance | Beginning balance |
| Jinan Changying Transportation Infrastructure Investment Fund Partnership | 75,037,985.75 | |
| Total | 75,037,985.75 |
| Aging | Ending book balance |
| Sub-total within 1 year | 4,270,789,414.17 |
| 1-2 years | 592,806,101.67 |
| 2-3 years | 599,480,651.27 |
| 3-4 years | 238,615,362.50 |
| 4-5 years | 215,190,749.20 |
| Over 5 years | 477,574,160.66 |
| Total | 6,394,456,439.47 |
| Nature of receivables | Ending book balance | Beginning book balance |
| Advances and other transactions of subsidiary | 6,394,456,439.47 | 4,425,695,749.97 |
| Toll split | 66,750,325.29 | |
| Total | 6,394,456,439.47 | 4,492,446,075.26 |
| Bad debt reserves | Phase I | Phase II | Phase III | Total |
| Expected credit loss in the next 12 months | Expected credit loss over the life (no credit impairment) | Expected credit loss over the life (with credit impairment occurred) | ||
| January 1, 2020 Balance | 2,662,626.93 | 33,682.50 | 2,696,309.43 | |
| January 1, 2020 Balance in the current period | ||||
| - into Phase II | ||||
| - into Phase III | ||||
| - back to Phase II | ||||
| - back to Phase I | ||||
| Accrual in current period | ||||
| Amount reversed in current period | ||||
| Amount resold in current period | ||||
| Amount written off in current period | ||||
| Other changes | ||||
| June 30, 2020 Balance | 2,662,626.93 | 33,682.50 | 2,696,309.43 |
| Category | Current change amount |
| Beginning balance | Accrual | Recovery or reversal | Resale or writing off | Other changes | Ending balance | |
| Bad debts of other receivables | 2,696,309.43 | 2,696,309.43 | ||||
| Total | 2,696,309.43 | 2,696,309.43 |
| Company name: | Nature of receivables | Ending balance | Aging | Proportion in total ending balance of other receivables (%) | Ending balance of bad debt reserves |
| Hunan Hengshao Expressway Co., Ltd. | Principal and interest | 1,745,437,191.45 | 1-7 years | 27.3 | |
| Jinan Changying Jinhai Investment Partnership (Limited Partnership) | Intercourse funds | 1,456,080,000.00 | Within 1 year | 22.77 | |
| Shandong Hi-Speed Investment Development Co., Ltd. | Principal and interest | 1,169,990,941.93 | 5-6 years | 18.3 | |
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Principal and interest | 360,263,905.35 | Within 1 year | 5.63 | |
| Yantai Hesheng Real Estate Development Co., Ltd. | Principal and interest | 254,530,000.00 | Within 1 year | 3.98 | |
| Total | / | 4,986,302,038.73 | / | 77.98 |
(14). Other receivables derecognized due to transfer of financial assets
□ Applicable √ Not applicable
(15). Amount of assets and liabilities formed by transfer of other receivables and continuousinvolvement
□ Applicable √ Not applicable
Other instructions:
□ Applicable √ Not applicable
3. Long-term equity investment
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Investment in subsidiaries | 13,955,721,936.00 | 13,955,721,936.00 | 14,682,540,943.38 | 14,682,540,943.38 | ||
| Investment in joint ventures and associated enterprises | 7,550,718,310.57 | 7,550,718,310.57 | 7,402,022,274.35 | 7,402,022,274.35 | ||
| Total | 21,506,440,246.57 | 21,506,440,246.57 | 22,084,563,217.73 | 22,084,563,217.73 | ||
(1)
Investment in subsidiaries
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Investee | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | Impairment provision for the current period | Ending balance of impairment reserves |
| Shandong Hi-Speed Rail Transit Group Co., Ltd. | 1,722,260,992.62 | 1,722,260,992.62 | ||||
| Shandong Hi-Speed Investment Development Co., Ltd. | 4,000,000,000.00 | 4,000,000,000.00 | ||||
| Shandong Hi-Speed Industrial Development Co., Ltd. | 19,000,000.00 | 19,000,000.00 | ||||
| Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | 77,597,944.28 | 77,597,944.28 | ||||
| Shandong Hi-Speed Henan Development Co., Ltd. | 483,038,056.20 | 483,038,056.20 | ||||
| Hunan Hengshao Expressway Co., Ltd. | 455,000,000.00 | 455,000,000.00 | ||||
| Shandong Hi-Speed Hunan Development Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||
| Shandong Hi-Speed Qilu Construction Transport Administration Service Co., Ltd. | 500,000,000.00 | 500,000,000.00 | ||||
| Jinan Changying Jin'an Investment Partnership (Limited Partnership) | 2,456,080,000.00 | 2,456,080,000.00 | ||||
| Jinan Changying Jinhai Investment Partnership (Limited Partnership) | 7,000,000.00 | 7,000,000.00 |
| Hubei Wujing Expressway Development Co., Ltd | 1,481,824,942.90 | 1,481,824,942.90 | ||||
| Jinan Changying Jincheng Equity Investment Partnership (Limited Partnership) | 5,010,000,000.00 | 5,010,000,000.00 | ||||
| Total | 14,682,540,943.38 | 1,729,260,992.62 | 2,456,080,000.00 | 13,955,721,936.00 |
(2)
Investment in joint ventures and associated enterprises
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Investee | Beginning balance | Increase or decrease in current period | Ending balance | Ending balance of impairment reserves | |||||||
| Additional investment | Decreased investment | Profits and losses on investment recognized by equity method | Adjustment of other comprehensive income | Other equity changes | Declaration and distribution of cash dividends or profits distribution | Accrual of impairment reserves | Others | ||||
| I. Joint venture | |||||||||||
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | 50,870,462.10 | 62,822.55 | 50,933,284.65 | ||||||||
| Subtotal | 50,870,462.10 | 62,822.55 | 50,933,284.65 | ||||||||
| II. Associated enterprises | |||||||||||
| Weihai City Commercial Bank Co., Ltd. (Headquarter) | 2,659,454,352.14 | 102,882,519.55 | 43,049,665.45 | 69,395,798.70 | 2,735,990,738.44 | ||||||
| Shandong High-Speed Logistics Group Co., Ltd. | 692,500,766.48 | 17,422,492.56 | 709,923,259.04 | ||||||||
| Shandong Hi-Speed Engineering Consulting Co., Ltd. | 61,883,479.57 | 6,465,396.96 | 68,348,876.53 | ||||||||
| Shandong Hi-Speed Yingli New Energy Co., Ltd. | 23,993,777.36 | -1,277,743.05 | 22,716,034.31 | ||||||||
| Shandong Hi-Speed Green Ecology Development Co., Ltd. | 18,773,771.68 | -559,569.50 | 18,214,202.18 | ||||||||
| Dongxing Securities Company, Ltd. | 2,372,539,748.49 | 41,091,685.00 | 2,413,631,433.49 | ||||||||
| Fujian Longma Environmental Sanitation Equipment Co., Ltd. | 414,739,204.41 | 5,000,000.00 | 4,134,026.52 | 415,605,177.89 | |||||||
| Shandong Environmental Protection Industry Co., Ltd. | 8,616,004.03 | -450,709.06 | 8,165,294.97 | ||||||||
| Jinan Changying transportation infrastructure investment fund partnership | 678,033,236.41 | 75,037,985.75 | 75,037,985.75 | 678,033,236.41 |
| (limited partnership) | |||||||||||
| Qingdao Changying Jinpeng Equity Investment Partnership | 420,617,471.68 | 8,539,300.98 | 429,156,772.66 | ||||||||
| Subtotal | 7,351,151,812.25 | 254,151,359.19 | 43,049,665.45 | 148,567,810.97 | 7,499,785,025.92 | ||||||
| Total | 7,402,022,274.35 | 254,214,181.74 | 43,049,665.45 | 148,567,810.97 | 7,550,718,310.57 |
4. Operating revenue and operating cost
(1).
Operating revenue and operating cost
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
| Item | Amount incurred in current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,615,755,595.71 | 1,377,853,719.10 | 2,271,214,291.96 | 1,112,363,760.20 |
| Other businesses | 470,890.69 | 2,213,630.02 | 9,788,012.35 | 1,914,930.02 |
| Total | 1,616,226,486.40 | 1,380,067,349.12 | 2,281,002,304.31 | 1,114,278,690.22 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Income from long-term equity investment based on cost method | 725,026,860.64 | |
| Long-term equity investment income calculated by the equity method | 254,214,181.74 | 269,328,221.70 |
| Investment income from disposal of long-term equity | ||
| Investment income of trading financial assets during the holding period | ||
| Dividend income of other equity instrument investment during holding period | ||
| Interest income of debt investment during holding period | ||
| Interest income of other debt investment during holding period | ||
| Investment income from disposal of trading financial assets |
| Investment income from disposal of other equity instrument investment | ||
| Investment income from disposal of debt investment | ||
| Investment income from disposal of other debt investment | ||
| Total | 979,241,042.38 | 269,328,221.70 |
| Item | Amount | Description |
| Profit or loss on disposal of non-current assets | 3,205,543.13 | Mainly from disposal of fixed assets |
| Tax return or reduction approved beyond authority or without formal approval documents | ||
| Government subsidies included in the current profits and losses (closely related to the business of the enterprise, except the government subsidies entitled according to the unified national standard quota or quantitative) | 11,636,163.80 | Mainly from government support funds and other subsidies. |
| Fund occupation fee charged to non-financial enterprises included in current profit and loss. | ||
| When the investment cost of acquisition of subsidiaries, joint ventures or partnership enterprises of the Company is less than the gains from the fair value of the net identifiable assets of the invested organizations, the Company shall enjoy at the time of investment. | ||
| Profit or loss from non-monetary assets exchange | ||
| Profit or loss from entrusted assets investment or management | ||
| Multiple provisions for impairment due to force majeure, e.g.: natural disasters | ||
| Profit or loss from debt restructuring | ||
| Restructuring expenses, such as employee relocating compensation and integration charges | ||
| Profit or loss from the excess over fair value in transactions where transaction |
| prices are obviously unfair | ||
| Net current profit or loss of subsidiaries generated from business combination under common control from the beginning of a period to the combining date | 181,832,760.37 | Due to the merger of the Rail Transit Group |
| Profit or loss of contingencies not related to normal operations | ||
| In addition to the effective hedging business related to the Company's normal business operations, the gains and losses from fair value changes generated by holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment incomes obtained from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investment | ||
| Reversal of provisions for impairment for receivables subject to separate impairment test and contract assets | ||
| Profit or loss from external entrusted loans | ||
| Profit or loss generated from fair value change of investment real estate properties under subsequent measurement at fair value | ||
| Influence on current profit or loss from one-off adjustment in accordance with tax and accounting laws and regulations, etc. | ||
| Income of trustee fee from commission management | ||
| Other non-operating revenues and expenses except above | 8,361,445.02 | Mainly from highway property compensation |
| Other profit or loss items in line with definition of non-recurring profit or loss | ||
| Affected amount of income tax | -4,104,461.66 | |
| Affected amount of minority shareholders' equity | -83,362,769.14 | |
| Total | 117,568,681.52 |
| Profit in the reporting period | Weighted average return on net assets (%) | Earnings per share: | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to shareholders of the parent company | 0.77 | 0.053 | 0.053 |
| Net profit attributable to common shareholders after deducting non-recurring profit and loss | 0.44 | 0.029 | 0.029 |
Section XI List of Documents Available for Inspection
| Contents of reference file | Financial statements of Shandong Hi-speed Co., Ltd. in 2020 |
| Originals of all company documents and announcements publicly disclosed on the media and websites designated by CSRC during the reporting period. |